6 Months After Bombings, Bali Optimistic About Recovery

Like other foreigners living on Indonesia's serene and idyllic Bali island, Marc Francois was horrified on Oct. 12 when he heard news of the massive terrorist bombs that devastated two nightclubs in the main tourist district, killing more than 200 people. He never expected such violence on an island seen by many as an enchanted paradise. But Francois immediately had another worry - how would the attacks that devastated Bali's tourist industry hit his multimillion-dollar investment, a large supermarket, bakery and restaurant named Bali Deli, then being built.

I shouldn't have worried. Business is surpassing expectations," Francois said after his grand opening Monday, nearly six months after the blasts. "We've far more customers daily than we planned a year ago when this project got under way." Although Bali's tourism-driven economy is still reeling from the dramatic fall in visitors since October, many businessmen view the downturn as temporary and anticipate a reasonably quick recovery in one of the most dynamic sectors of Indonesia's economy. Since the 1930s, Bali has been a premier destination for travelers seeking an exotic retreat, a place of mystery and beauty. It gained international fame as a dream island full of lush tropical jungles, elaborately carved temples and dramatic volcanic scenery.

"Quite frankly, we've never wavered in our commitment to Bali," said John Hardy, who runs the U.S.-based John Hardy Collection, a jewelry and housewares business that markets its products through upscale retailers such as Neiman Marcus and Saks Fifth Avenue. "This is the most remarkable place in the world, and the bombing certainly does not reflect any animosity felt by the Balinese toward foreigners," said Hardy, who divides his time between Bali and New York. A massive investigation into the Oct. 12 strikes - the deadliest terrorist atrocity since Sept. 11, 2001 - so far has netted 29 suspects from around the Indonesian archipelago, none of whom was from Bali. Still, everyone agrees the attacks, attributed to Jemaah Islamiyah - an al-Qaida-related group operating across Southeast Asia - have severely damaged Bali's economy and caused immense hardship to many local people.

Bali's 2 million people are overwhelmingly Hindu, in contrast to the rest of Indonesia, which is the world's most populous Muslim nation. Several suspects have admitted targeting Bali to strike at its Western visitors. Tourism - which accounts for three-quarters of economic activity on the island - dropped 80% in the first two months after the blasts. To this day, resort restaurants remain eerily empty and many hotels have so few guests that owners are using the lull for maintenance and renovation. Taxi driver Agung Nyoman is worried about how he and his family can hold out until tourism picks up. "I'm lucky if I have one fare in several days. Before I could find as much work as I wanted. Like this, I can barely feed my wife and children," he said.

 According to official statistics, nearly a third of employees on the island have lost their jobs since October. Visitor spending in Bali, which accounts for about half of the US$4.5 billion that Indonesia earns annually from tourism, dropped to almost nothing before starting slow growth again in early 2003. Fortunately, growth has continued unabated, despite the war in Iraq, the outbreak of severe acute respiratory syndrome in Southeast Asia, and the January-May rainy season, which always draws the fewest tourists. Australians, who had accounted for at least two-thirds of Bali's guests, have mainly stayed away. But Singaporeans, Taiwanese, Japanese, South Koreans, Germans, Russians, and other Europeans have been taking up some of the slack, attracted by special package promotions. 

The success of the police investigation into the bombing and pervasive security measures have helped reassure visitors. Island police are now being assisted by citizen groups that patrol their villages and perform spot identity checks. Another sector of Bali's economy - that of small, export- oriented manufacturing - appears not to have been affected by the terrorist attacks. Businessmen who run such companies say the drop in tourist revenues has barely had an impact on their bottom lines. "Obviously, we've seen a drop in sales on Bali, but the overall export market is unchanged," said Roy Schofield, manager of PT Pacific Blue, a major fish wholesaler. The company, which ships US$100,000 worth of fish to Europe each week, had sales of just US$1,000 weekly in Bali. Failure of the bombings to upset exports may even have persuaded foreign businessmen that Bali is the safest location in Indonesia for long-term investment, said Hardy, whose company has about 600 local workers. "Business is stable, we're not in a downward spiral, and I've never felt any apprehension about the future," he said.

Hilton enlists Expedia's help to cut Internet-lodging discounting

(Dow Jones/AP) -- Hilton Hotels Corp., striking back at discount hotel Internet sites, said Monday it agreed to give online travel-service Expedia Inc. access to its central reservation system.

The two-year partnership is part of a strategy aimed at eliminating deeply discounted Hilton hotel rooms on the World Wide Web.

In return, Expedia has pledged not to undercut Hilton's own prices and agreed to significantly cut its commissions to the hotel operator.

Expedia, based in Bellevue, Wash., had been charging a 28 percent commission for each sale of a hotel room -- a rate it is cutting to 18 percent in the deal with Hilton, The Wall Street Journal reported.

In 2002, net and gross reservations booked through its company-owned Web sites rose 95 percent, Hilton said. Online bookings account for about 10 percent of its total bookings.

As for its six company-run Web sites, Hilton will streamline online ordering by simplifying the ordering process, the hotelier said.

Hilton, Beverly Hills, Calif., said it plans to stop awarding points in its loyalty program to guests who don't book directly with Hilton, or its chains, such as Doubletree, Embassy Suites and Hampton Inn.

A small but increasing share of hotel rooms are being booked through online travel agents and discounters, including Hotels.com, Expedia, Priceline.com, and a plethora of regional tourism sites such as LosAngeles.com.

About 10 percent of the 80 million room-nights Hilton sold last year were via the Internet, the company said. Of those, about three-quarters were sold directly by Hilton, double the rate in 2001.

Shares of Hilton closed Monday at $12.83, up 39 cents, or 3.1 percent, on the New York Stock Exchange. Expedia shares finished the day at $52.23, up 23 cents, or less than half a percent, on the Nasdaq Stock Market

Putting on the Ritz

The New York Times  -  SPAIN´S richest woman, Alicia Koplowitz, is believed to be in advanced negotiations to add part of the old Forte hotel empire to her burgeoning interests in the world of finance and property.

A renowned collector of old masters and modern art, Koplowitz is said to have joined forces with her sister, Esther, to buy the historic Ritz in Madrid from Le Méridien Hotels for an estimated £82 million. The duo have apparently lined up Orient-Express Hotels to manage the hotel for them once the deal goes through.

Ranked 329th in the latest Forbes list of the world´s richest people with a fortune of £1.3 billion, Alicia inherited her wealth through the family construction firm, FCC, which she later sold on to Esther.

Both sisters are apparently regulars in the Spanish society pages, although a couple of years ago Esther made the headlines under less happy circumstances when thieves made off with £35 million of paintings from her Madrid home. 

Taiwan:  Local hotels offer big discounts due to SARS

The China Post  -  More and more high-end hotels are offering room discounts and special promotions amid sharp business decline triggered by the spread of a deadly flu-like pneumonia across Asia.

The wave of price cuts has been called the worst cut-throat price war in the history of the local hospitality industry, as some five-star hotels have slashed their prices by nearly 70 percent and more hotels are expected to follow.

The biggest price cut is at the Westin Taipei, which touts a room for two at merely NT$2,900, down from NT$9,400. The package also includes a complimentary breakfast and dinner for two that is worth NT$3,000 alone.

The new price tag at the Grand Hyatt Taipei and Grand Formosa Regent Taipei is now NT$3,300 per room and NT$1,888 per person, respectively. Grand Formosa Regent Taipei also provides patrons with an herbal tea believed to have anti-SARS effects.

Gloria Prince Hotel, meanwhile, has launched a "buy-one- get-one-free" sale from Apr. 15-30. Patrons will receive a coupon for one free stay at a reduced price (down from NT$6,800 to NT$3,999) during the promotional period.

Traditionally, April is the high season for the hospitality business as a number of international trade shows and exhibitions are scheduled in spring. However, this year the outbreak of severe acute respiratory syndrome (SARS) in Hong Kong, mainland China and Vietnam has promoted numerous travel cancellations to Asian countries.

Taiwan, although not listed by the World Health Organization as an affected area, is facing a slowdown in tourism-related business as suspected SARS cases are reportedly on the rise.

According to media reports, the occupancy rate at local five-star hotels droped to less than 30 percent from the normal 70 percent in less than a month.

The National Palace Museum, a major tourist attraction in Taiwan, has reported a sharp decline in daily visits from over 7,000 in March to about 3,750 a day as of April 10.

In addition, fewer and fewer Japanese, the island's major tourist source, have come to Taiwan following the Japanese government's travel alert on Taiwan due to SARS.

Several hotels catering to Japanese tourists, which have lost as much as half of their Japanese bookings, also have resorted to a price deduction in a bid to lure in more domestic business.

The Ambassador Hotel Taipei now charges NT$3,300 for a room, over 50 percent off from the previous NT$6,800.

Other hotels have tackled the slow season by closing vacant floors or ordering employees to go on vacations. It's reported that at least four high-end hotels are forcing management staff to take un-paid leave or annual days-off earlier.

Currently, several hotels have already reported increased reservations following the promotions. Far Eastern Plaza Hotel, which offers a 40 to 50 percent-off discount, said an additional 200 rooms were filled in the past few days. Grand Hyatt reported 800 additional bookings, but added that most patrons didn't opt for the cheapest NT$3,300 rooms.

The hospitality industry expects this wave of price cuts to last untill about May, when the SARS scare is hoped to wear off.

Six Continents splits

(Bluebull)- Six Continents Plc's split this week into two companies, one owning hotels including InterContinental and Holiday Inn and the other with 2,000 pubs.

Companies ranging from Strategic Hotel Capital, owner of hotels such as New York's Essex House, to BC Partners Ltd., a UK private-equity firm, may be making offers. Six Continents last month rejected as too low a GBP 2.8bn (USD 4.4bn) bid from BC Partners for the pubs division.

InterContinental Hotels Group Plc, the hotel company is to be created by the split, may have a market value of about GBP 2.79bn, according to stock prices displayed by Tullett Plc. Shares of InterContinental Hotels, whose brands include Crowne Plaza, and Mitchells & Butlers will start trading tomorrow.

The other Six Continents unit, Mitchells & Butlers Plc, owner of the O'Neill's chain of Irish pubs and Harvester restaurants, may be valued at about GBP 1.65bn.

Entrepreneur Hugh Osmond, who founded Punch Taverns, was last month rebuffed by Six Continents shareholders when he bid for the entire company. Osmond, who aimed to break up Six Continents himself, hasn't ruled out bidding for Mitchells & Butlers. Laurel Pub Co., a closely held operator of about 600 pubs, has said it is monitoring interest in the bars business.

InterContinental Hotels, which has 1.2bn in debt and will include the Britvic soft-drinks business, is more difficult to value. That's because its lodging activities are spread across 100 countries and the hotel industry has been hurt by a downturn in demand for travel linked to the U.S.-led war in Iraq and the spread of a deadly SARS disease.

Hilton Group Plc, owner of the Hilton brand outside the U.S., has hired bankers to advise on a possible offer. Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton chain, is interested as well.

Six Continents investors are to receive 50 shares of both InterContinental Hotels and Mitchells & Butlers for every 59 of their shares. The company also will distribute a total of GBP 700m in cash.

Moody's Investors Service on Friday cut its credit rating for Six Continents by two levels, to Baa2 from A3, saying the split will make cash flow more volatile.

World Tourism Organization optimistic of China's future tourism

Xinhua  -  The World Tourism Organization ( WTO) supports China's efforts in building up tourists' confidence when traveling there and holds an optimistic attitude towards China's future tourism, said Francesco Frangialli, secretary- general of WTO.

Frangialli made these remarks in response to a letter from He Guangwei, the director of the China National Tourism Administration (CNTA).

Director He reiterated that it is safe to travel in China and related tourism activities are being held normally as usual. He also invited WTO officials to go see for themselves.

Frangialli highly praised the CNTA's positive measures in dealing with severe acute respiratory syndrome (SARS) and posted the CNTA's announcement on SARS on the WTO's website for all those concerned to know the real situation.

India targets China's booming outbound tourism market

Manorama Online  -  India is targeting China's booming outbound tourism market for the first time with its unique cultural and tourism resources at a time when Chinese tourists are increasingly looking for exotic foreign locations to spend their vacations.

"I am very confident of the emerging outbound tourism market of China and we plan to focus our attention to woo Chinese tourists with exclusive tour packages," honorary secretary of the Indian Association of Tour Operators Vijay Thakur said here. Thakur said that some of the leading Indian tour operators have already started receiving small number of Chinese tourists.

The recent signing of a bilateral memorandum of understanding between China and India on tourism would open up Indian tourism market for the first time to Chinese tour groups, which till now made visits mainly to southeast Asian destinations, he said. As per the MoU, China will authorise designated travel agencies in the mainland to organise the outbound travel of its citizens to India.

Similarly, India will recommend to the Chinese side an appropriate number of travel agencies as local operators for Chinese tour groups visiting India. "With the signing of the agreement, which provides for India as an approved destination for Chinese tourists, it is felt that the number of visitors to India will increase substantially, as will the number of Indian visitors to China," Indian embassy sources here said.

Rosewood Hotels & Resorts announces the resignation of James F. Brown and the election of John M. Scott III as its new President & CEO. 

Lewis N. Wolff, Vice Chairman of Rosewood, praised Mr. Brown for his "strong operational contributions over the past five years which have enabled the company to set the benchmark for the 5-star luxury hotel category experience." Schuyler B. Marshall, a Director of Rosewood, added "Jim's decision to resign after five years with Rosewood was accepted with the understanding that he desired to pursue other opportunities in the hotel management business, and with appreciation for his energetic effort and positive contributions on behalf of Rosewood."

John Scott, who has served as a member of Rosewood's Board of Directors for six years, joins Rosewood's management from Maritz, Wolff & Co. where he was Managing Director of Acquisitions and Asset Management, leading acquisition and asset management efforts for luxury hotels and resorts. Maritz, Wolff owns 50% of Rosewood Hotels & Resorts, in partnership with the Rosewood Corporation. It also owns a portfolio of 17 premier luxury hotels and resorts in the US, Canada, Australia and the Caribbean with a combined asset value in excess of $1.5 billion. Mr. Scott's experience as both an owner and operator of world-class luxury hotels will play a pivotal role in helping Rosewood take advantage of growth opportunities at a very challenging time for the industry.  Additionally, his familiarity with Rosewood's properties, senior management and staff, and its unique corporate culture, will ensure a smooth transition.

Prior to joining Maritz, Wolff in 1996, Mr. Scott worked with the Walt Disney Company, as Manager of Business Planning and Development, where he led business development efforts for a $100 million retail, dining and entertainment attraction.

Mr. Scott began his career at the Interpacific Group, where he held senior hotel management positions including General Manager, Resident Manager, and Assistant Food & Beverage Director for the Asia Pacific hotel development and management company.

According to Caroline Rose Hunt, Rosewood's honorary chairman of the board and the visionary behind the development of award-winning Rosewood properties such as The Mansion on Turtle Creek, "We are quite pleased to have John Scott serve as our new President and CEO. With his outstanding hotel management expertise as well as his impressive record for growth, he is ideally suited to accelerate the company's growth worldwide while preserving and fostering Rosewood's unique philosophy. I am certain that his leadership will help the company achieve a new level of excellence."

Mr. Scott, who holds an MBA from Harvard Business School, and a BA from Dartmouth College, is married with two children. He has served on the board as well as been an active member of many St. Louis civic, arts and non-profit organizations.

Rosewood Hotels & Resorts, headquartered in Dallas, Texas, manages properties on three continents worldwide, including The Carlyle in New York City, The Mansion on Turtle Creek in Dallas, Little Dix Bay in the British Virgin Islands, and Las Ventanas al Paraiso in Los Cabos, Mexico. Each Rosewood property is pre-eminent in its region, and artfully designed with local inspiration to create A Sense of Place(R). Throughout its 24-year history, Rosewood has delighted guests and elevated hospitality to a new level by providing discrete, personalized service and demonstrating remarkable attention to detail

http://www.rosewoodhotels.com

PATA Conference opened in Bali

The 52nd Annual Pacific Asia Travelers Association (PATA) Conference commenced on Monday amid current tourism challenges and concerns. The atmosphere is somber but the overall attitude is optimistic. There were four speakers, which included Mr. Setyanto Sentosa, chairman of PATA 2003 Indonesian Organizing Committee and Chairman of Indonesia Culture and Promotion Board. The conference themed "Culture and Tourism: From Heritage to Legacy" is perched to address cultural and environmental sustainability.

The expected number of participants was predicted at 500, however, the actual number as of opening ceremony was 921, which many consider as a tremendous feat given the current state of the world. "I am humbled by your attendance," said Sentosa, who claimed that the numbers were greater than expected. (He mentioned in an earlier briefing that they had expected cancellations and that the actual numbers of participants were expected to be no more than 600.) A highlight in Sentosa's speech was when he pointed out the significance of tourism in cross-cultural communication and education. He also commanded a moment of silence for the victims of the October 12, 2002 Bali bombing.

"We are introducing what we call a 'Pariwisata Inti Rakyat' meaning tourism from the people, by the people, and for the people," said Indonesia's minister of culture and tourism, Mr. I Gede Ardika. He explained that this program will be community-based in terms of approach and with ecotourism development in order to increase the benefits from tourism resources for Indonesians while maintaining the cultural and environmental integrity. Also in attendance was none other than Indonesia's president herself, Mrs. Megawati Soekarnoputri, who delivered the inaugural address and officially opened the conference by hitting the world- renowned "Gong of Peace." Another highlight of the opening ceremony was the 25-minute song and dance compilation presented by Prof. I Made Bandem and Swasthi Widjaja Bandem. The performance, which comprised of a total of 230 performers, showcased Indonesia's prosperous and diverse culture.

PATA's president and chief executive officer, Mr. Peter de Jong, also delivered a speech wherein he claimed that travel and tourism are the necessary instruments "to make this world a better place." De Jong also noted that PATA will address four focal points in the conference and in their agenda in the coming months such as regional security, crises management, medical emergency, and public relations. He also pointed out that experts from these various areas have been invited to address these concerns at the conference. PATA chairman, Mr. Bo Wong, also spoke at the opening ceremony.

Thistle Hotels still in talks with third parties

Thistle Hotels PLC said it is still in talks with a number of third parties which may lead to a competing offer for the group as it posted its official defence documents against the outstanding bid from BIL International Ltd.

While reiterating that the BIL offer "is opportunistic and at a wholly inadequate price," the group said it is continuing to review options to maximise value for the benefit of all its shareholders, and this includes considering possible competing offers.

Thistle's board said it is also reviewing the potential for a return of around 50 pence per share to all its shareholders from the 76 pence per share of cash on the group's balance sheet.

Of BIL's bid, Thistle said loss-making BIL is seeking to use Thistle's 367 mln stg of cash to help pay for its 300.5 mln stg offer.

Thistle chairman David Newbigging said: "BIL's offer is opportunistic and at a wholly inadequate price. Thistle shareholders own a company which has high quality assets and a strong business. It is worth considerably more than 115 pence per share."

He reiterated the board's advice for shareholders to reject BIL's offer.

Boutique Hotels & Resorts adds Spain

Boutique Hotels & Resorts International announces its first member hotel in Mallorca, Spain’s most popular resort island. This is the alliance’s second hotel in Europe.

“Unlike many of the existing hotel associations, Boutique Hotels & Resorts International offers small boutique hotels such as Scott's an affordable and effective way of increasing exposure and becoming part of an international brand. We're delighted to be part of it.” says Proprietor and author, George Scott. 

Scott’s, a meticulously restored 18^th century seigniorial townhouse, features 17 luxuriously decorated rooms and suites. Scott’s also boasts an award winning restaurant, a spa pool with Jacuzzi and meeting facilities for small groups.

“Scott’s is an authentic boutique hotel gem. We are very proud to welcome this one-of-a-kind property into our family of selected, unique boutique hotels” says Allan Kronberg, the alliance’s COO. “This marks our second foray into the European market after our rapid growth in the USA and the Caribbean”.

Boutique Hotels & Resorts International has added over 20 member hotels since it has started accepting applications a few months ago.

Boutique Hotels & Resorts International awards a distinct and elegant identity to authentic boutique properties from around the world. A full service alliance featuring inventive marketing and the very latest in reservation and global distribution technology, Boutique Hotels & Resorts International was created exclusively to empower independent boutique hotels compete against the major hotel chains. Unique, individual boutique hotels and resorts with up to 199 rooms are showcased in three distinctive Collections: The Diamond Collection (luxury), The Emerald Collection (first class/four star) and The Sapphire Collection (superior mid-scale).

Non-Business Conferences popular with Americans

Traditional business and convention travel may be suffering but a Travel Poll by the Travel Industry Association of America (TIA) shows that leisure travelers aren’t shying away from attending non-business conferences.

The TIA Travel Poll found that more than one-third (36%) of Americans have traveled to attend a non-business conference for personal, social, or civic reasons in the past three years. This translates to nearly 75 million U.S. adults who have taken a trip of 50 miles or more one-way, away from home in the U.S. in order to attend such events. A non-business conference is defined as a conference, meeting or special event unrelated to job or occupation.

The popularity of non-business conference travel is rising, up from 29 percent in 1999. Examples of such travel include attending organized religious conferences, self-improvement or educational conferences, hobby-related conferences. Other types of non-business conferences include alumni, fraternity or sorority reunions, political rallies or conventions and military reunions.

TIA’s representative telephone survey of 1,300 U.S. adults found that Americans who take multiple trips per year are more likely to attend a non-business conference. About four in ten Americans (37%) who attended such an event in the past three years are frequent pleasure travelers, having taken five or more pleasure trips in just the past year. Baby boomers (age 35 to 54) comprise the highest volume of non-business conference travelers (43%). Generation X and Y travelers make up the next highest volume, with more than one-third (35%) attending such events. A majority (58%) are married and three in ten (31%) have a college degree or more. Four in ten (44%) have annual household incomes of $50,000 or more.


TIA is the national, non-profit organization representing all components of the $537 billion travel industry. TIA's mission is to represent the whole of the U.S. travel industry to promote and facilitate increased travel to and within the United States.