2003 offers "great opportunity" for tourism, says BTA

Caterer.com  -  The signs for continued growth and recovery are good for 2003, but there is still a lot of work to be done, says the British Tourist Authority (BTA).

In its Prospects and Trends 2003 report, the BTA said that 2003 would represent a “great opportunity” for tourism around the world.

“The potential demand for travel remains strong and it is up to the industry at all levels, alongside the national and regional tourist boards and Government, to find innovative and exciting ways of marketing our destinations in the face of immense global competition,” said the BTA.

The BTA added that although it had not seen the revival in demand for international travel it had expected in the final six months of the year, it predicted that overseas visitor numbers for 2002 would be up by at least 3% on 2001. 

Hilton forms partnership with CNL, buys two hotels

(Reuters) - Hilton Hotels Corp. and CNL Hospitality Corp. said Monday they formed a new partnership and acquired a DoubleTree Hotel in Dallas and a Sheraton in Tucson, Arizona, for $121 million.

The partnership, with capitalization of about $400 million and majority owned by CNL, also said it has signed a non-binding letter of intent to acquire five more hotels. All acquisitions will be converted to the Hilton brand.

Hilton, based in Beverly Hills, California, said in the joint statement with Orlando-based CNL that it expected the acquisition of the first two hotels to generate net proceeds of $25 million and to add to its earnings in 2003. The two companies teamed up in an earlier venture that bought four properties.

The DoubleTree at Lincoln Centre in Dallas has 500 rooms, while the Sheraton El Conquistador Resort and Country Club in Tucson has 428 rooms. Both are owned by Metropolitan Life Insurance Co. The acquisitions were completed Dec. 24, Hilton and CNL said.

Hilton shares fell 12 cents, or about 1 percent, to $12.67 in midday trading on the New York Stock Exchange.

Source:  Caterer.com

Tourism Queensland to target resilient UK market  

TOURISM Queensland has launched a $1 million United Kingdom advertising campaign pitched at capitalising on rare long haul international market growth.

The UK has been one of the few overseas markets to defy a downturn in international travel to Australia over the past two years, growing by 11.5 per cent across the country and by 5.3 per cent in Queensland.

This year Queensland's tourism industry has benefited from 274,000 UK visitors, an increase from 259,620 two years ago. The key UK markets to be targeted in the campaign include "young independent travellers, young affluent people and empty-nesters".

The campaign will run for the first three months of 2003 with an emphasis on Queensland as a "great value for money" destination. The United Kingdom is Queensland's third largest overseas market and attracts tourists for an average stay of 18 nights a year, which is five nights more than any other international market.

The most popular destinations frequented by UK travellers were Cape Tribulation, Fraser Island, Noosa and the Whitsundays, while a trip to the Great Barrier Reef was the leading attraction.

The fledgling Chinese market, Korea and Germany were other international markets to record growth in Queensland since 2000. China, which has been targeted by Tourism Queensland as a potentially massive market, grew to 69,000 from 32,000 two years ago while Korean visitors doubled to about 70,000 over the same period.

Tourism Queensland hopes to negotiate direct flights between China and Queensland during 2003, while Qantas Airways' Cairns-based leisure subsidiary, Australian Airlines, has China on its "hit-list" of potential destinations.

Over the past two years, there was a 12.5 per cent downturn in Japanese tourist numbers to Queensland.

However, the impact of Australian Airlines' 17 weekly flights to Japan, which started in October, is expected to help regrow the market which is flourishing in North Queensland.

US travellers are still staying away in their droves from Queensland.

ITIC:  Further improvement in tourism on cards

Irish Examiner  -  Barring another international terrorist attack, 2003 should see a further recovery in tourism, the Irish Tourist Industry Confederation (ITIC) declared yesterday. While  there were 6.2 million less visitors in 2002 than in 2000, the confederation is confident about the future of the industry, which will also depend on the health of air travel. Indeed, the air industry was given a boost on Friday when a Korean air jet carrying Korean tourists touched down in Taiwan. It was the first flight of its kind since diplomatic relations and air links were cut a decade ago. ITIC chief executive Brendan Leah said Ireland was still a destination in demand, with strong market appeal.

But preliminary figures for 2002 show that recovery by the industry to the levels achieved in 2000, the industry’s most successful year to date, continues to be slow and difficult.

Figures still to be confirmed suggest that, overall, the number of overseas visitors to Ireland increased by approximately 2% in 2002, which would still leave the total short of the 6.2 million achieved in 2000.

Visitor numbers from Britain grew by an estimated 6%, to 3.6 million, but those from the United States showed a further decline of 10%. Performances of European countries varied, but it is expected that total visitors from mainland Europe will show a small increase.

The further decline reported for American business in 2002, together with the growth from Britain, indicates that a change in the “mix” of visitors is taking place, which directly affects overall tourism revenue and yield.

With a decline in high-spending visitors from America, in particular, revenue, on the basis of early returns, is expected to only match inflation in 2002 when in previous years earnings grew considerably ahead of inflation. This trend affects occupancy and

margins in key sectors of the industry, states the ITIC. “A perceived increase in shorter-stay visitors is also creating potential problems for regional tourism. A growing proportion of visitors are taking short-stay based holidays and are less mobile than general visitors. Therefore, the benefits of growth in this sector are not spreading to the regions,” the ITIC states.

In its end of year statement the confederation expressed serious concerns about competitiveness.

“A major concern for the tourist industry is the rate at which its cost-base is rising due to a combination of high input costs and rising inflation at a time when the country’s competitiveness is declining. Many of the input costs incurred by tourism enterprises, including food, labour, energy, waste disposal and insurance, have all risen substantially, and in many cases above the average rate of increase, with unavoidable knock-on effects,” the ITIC states.

The independent study, “The impact of the tourist industry on the Irish economy,” published by ITIC in October, clearly showed that Ireland has suffered deteriorating price competitiveness since 2000, with tourism one of the worst affected sectors. Domestic inflation has accelerated sharply and inflation in tourism-related segments has been rising faster than the national average.

By May 2002, average consumer prices in Ireland were 21.7% higher than in 1996, compared to increases of 11.3% in the EU generally and 9% in Germany and 8.4% in France.

As a result of these trends, Ireland is now an expensive destination for eurozone tourists in particular.

“Unfortunately, the recent Budget has worsened the industry’s competitive situation. The VAT rate on tourist services, which was already the second highest in the eurozone, was increased from 12½% to 13½%, which will further raise prices and add to the deterioration of the industry’s cost-base. The coach tourism sector, which is already having a difficult time because of the decline in business from north America, is facing increases in its VAT rate and diesel prices. The changes in capital allowances will directly hit the ability to re-invest in new product or equipment, notably in the accommodation and coach sectors.

“The timing of this VAT increase has also created difficulties for many tourism enterprises which have already contracted out their prices to overseas tour operators for the 2003 season,” the ITIC says.

“To enable the industry fully achieve its current potential, measures will be necessary to stabilise Ireland’s competitive position, and we shall also require more access services, particularly from high-yield markets, most notably the US.”

Japanese Tourism to Australia up by 29 % over new year

Asia Pulse  -  The Japanese tourism market may be recovering from its long slump with numbers arriving in Australia over the New Year holiday period set to jump by 29 per cent.

In the wake of the terrorism threat, the number of Japanese travelling overseas dramatically plunged in the last quarter of 2001, impacting on the lucrative New Year holiday period.

But tourism analyst Roger March said today the Japan Travel Bureau has forecast overall outbound Japanese holidaymakers in this New Year period to rise by 33 per cent compared to 12 months ago.

And Australia is set gain a significant share of the rise because of increased airline capacity and a convenient run of public holidays giving most Japanese an extended nine-day vacation period.

"Australian travel is forecast to rise 29 per cent (over the New Year period)," Mr March said in Inbound Tourism Online.

"New Zealand, which appears to be enjoying a world-wide boom due to exposure through Lord of the Rings, is expected to welcome an extra 33 per cent."

Japanese arrivals to Australia reached a peak of 814,000 in 1997 but in 2001 numbers dropped to 675,000.

In the first 11 months of 2002 arrivals rose by 5.4 per cent.

Reflecting the turnaround in the aftermath September 11 last year, arrivals jumped by 55.1 per cent in October and 56.7 per cent in November this year.

Australia's Tourism Forecasting Council has predicted 702,000 Japanese will arrive in Australia in 2002

Indian Hotel Industry says goodbye to tough 2002

Asia Pulse  -  The unceremonious removal of India Tourism Development Corporation (ITDC) Chief Ashwini Lohani, and the political row over the resale of the privatised Centaur Hotel in Mumbai, made headlines in the recession hit hotel industry, with properties staring at more than half empty rooms during most of 2002.

The effects of the terrorist strike in the US last year, a reduced flow of international tourists and the lacklusture business cycle contributed to the gloom in the hotel industry during the year.

The year saw the government withdrawing from the hotel business in a big way with the sale of ITDC and Hotel Corporation of India's properties but there were hardly any fresh investments in the sector.

Needless to say the tremors of the sell off process were felt both within and outside parliament, where parliamentarians took cudgel against the government over the new owner making a hefty Rs 300 million (US$ 6.26 million) profit by selling Centuar Hotel in Mumbai within months of its acquisition.

So much so that ruling National Demographic Allaince's ally Shiv Sena took a public position against Disinvestment Minister Arun Shourie, after he rebutted criticism saying that some of the Sena leaders had been seeking favours for another hotel, Centuar Juhu, also in Mumbai.

Also the echoes of the removal of Lohani, who vocally opposed some of Shourie's proposals, from the position of chief executive of India Tourism Development could be heard in the parliament. 

Marriott ups Saudi Arabian presence 

TTG Asia  - Marriott International has opened the Madinah Marriott Hotel, its third property in Saudi Arabia and its first in Medina, one of the holiest sites for Muslims around the world.

The 150-room property celebrates its opening with special rates – US$62 for a single room and US$75 for a double room. This offer is valid until January 29.

Madinah Marriott is located across the New Imarah and a few hundred metres from the Holy Mosque, which means quite a number of rooms at the hotel have a direct view of the mosque. It stands on the corner of First Circle Road and Omar Bin Al Khattab Street.

NH Hoteles sells 2 hotels in Spain for 10-11 Million Euro

AFX  -  NH Hoteles SA has sold two hotels in Spain for a total of 10-11 mln eur, Expansion reported, citing unnamed sources close to the operation.

According to the newspaper, the NH Breton hotel in central Madrid was sold for 8-9 mln eur, while the sale of NH Express Delta, in Tudela, Navarre, has raised about 2 mln.

The hotel disposals are included in the group's existing asset sale programme, aimed at raising cash to reduce its high debt levels, Expansion noted.

Tourism numbers in Cook Islands hit 70-thousand in 2002

The Cook Islands says the number of tourists who visited the islands in 2002 is expected to hit the 72-thousand mark, a drop of about 2-thousand on the previous year.

Tourism is the main source of revenue for the country with 40 per cent of visitors coming from New Zealand, 26 per cent from Europe.

But consultant economist Colin Mellor estimated 50 per cent of that revenue is spent on imports to service the tourism industry.

He suggets the Cook Islands needs to better promote loally produced goods and services and encourage more Cook Islanders in the industry.

Mr Mellor has also called for the development of closer air links within the region to promot multi-destination tourist travel.  

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