Newsletter - April 2, 2003
Iraqis detained for plotting to bomb Grand Hyatt Amman Hotel
Four Iraqi nationals have been detained in Jordan for allegedly conspiring to blow up the Grand Hyatt Amman Hotel in the kingdom’s capital. Since the outbreak of war in neighboring Iraq, the luxury hotel was turned into a beehive of foreign journalists.
In addition, many Americans are currently residing in two adjacent tower blocks, reported AFP. Jordanian authorities have recently also expelled five Iraqi diplomats for supposedly plotting to poison water supplies to the military bases near the Iraqi border.
Grand Hyatt Amman is located in the heart of the capital's business and diplomatic district. It includes 316 rooms and linked to the Hyatt Tower and Zara Expo, the city’s conference and exhibition center. — (menareport.com)
SARS -
Living in the midst of a killer virus
CNN
Report -
HONG KONG, -- In
pharmacies across Hong Kong surgical masks and thermometers are
disappearing off the shelves as a killer virus without a cure terrorizes
the territory.
While the war plays out
in Iraq, here a battle is being waged against a deadly illness which has
led to eleven deaths and infected almost 370 people in this congested city
of 6.9 million, in just a matter of weeks.
As the territory is
gripped by pneumonia paranoia Hong Kong's Chief Executive, Tung Chee-hwa,
has said the city is "facing its most serious contagious disease
threat in 50 years."
While south China has a
history of strange viruses, partly because humans and animals live in such
close contact, the mood in Hong Kong has become decidedly somber, as the
numbers of infected people rise every day and a cure eludes doctors.
On Thursday alone, 51
people were admitted to hospitals for symptoms of the illness, known as
severe acute respiratory syndrome (SARS).
That group included 22
people who lived on different floors of one apartment building, who
probably caught it by inhaling droplets left behind when a carrier coughed
in the elevator or lobby.
The virus is said to
survive for three hours outside of the body, meaning it can be transmitted
through a handshake or even pressing an elevator button previously touched
by a disease victim.
At the start of the
outbreak, the mystery illness had a mortality rate of 4 percent and 20
percent of those who caught it needed intensive care treatment.
As stories circulated
of hospitals running out of space, health workers being stricken, air
passengers catching the virus while flying, and of many patients being
kept alive on respiratory defibrillators, Hong Kongers have become very
anxious.
On street corners in
the city's Central district, on buses and trams jockeying along Queens
Road and on the congested underground MTR system, masked Hong Kongers
watch strange scenes unfold.
People scatter at the
merest cough or sneeze as authorities say the mystery virus can be spread
through droplets.
Pharmacies are running
out of masks almost as soon as stocks arrive, and the recommended N95 and
other surgical masks are hard to find, so that customers are making do
with the flimsiest alternatives.
Street scenes
Tartan masks, paper and
cotton fragments of masks and handerkchiefs are all being used as
alternatives, some with huge gaping holes. Others just clutch
handkerchiefs to their noses as they walk the streets.
Pharmacies lucky enough
to still have masks are limiting sales to five per customer.
Amid evidence the virus
is spread through casual contact, schools have been closed until April 6
and the government has imposed a quarantine on people who have had close
contact with infected patients.
The mystery killer
comes at a bad time for the city, which seemed to be recovering from a
downturn that has seen property prices fall 65 percent since 1996 and
confidence sag.
As tourist and export
figures began to rise this year, Hong Kong had become more upbeat and was
ready for a party weekend.
The British rock group
the Rolling Stones had two concerts scheduled, and thousands were gearing
up for the Rugby Sevens, a sporting party which draws punters from around
the world.
Rumours spread
Over the last few days,
mobile phones have been buzzing with tales the annual tournament was going
to be televised and spectator-less.
But while the Rolling
Stones have postponed their shows, organizers for the Sevens said the
event was very much on after health officials said the risk of catching
the disease in an open-air environment was minimal.(Stones
cancel)
Authorities are working
hard to reassure residents, saying infected patients are being treated
with a cocktail of anti-viral and anti-bacterial drugs, and many are
responding well to the medication.
And despite the
dampened mood in this city, doctors and researchers are more upbeat than
when the virus first broke out.
They have come up with
a speedy diagnostic kit to identify victims and say they are optimistic
the virus can be treated with a high success rate if infected people seek
medical advice early enough.
Already the number of
sufferers who need intensive care treatment has dropped from 20 percent to
around 12 percent.
Country breakdown:
Suspected cases of SARS
The number of
suspected cases of a new form of deadly pneumonia is on the rise.
The mystery illness
called severe acute respiratory syndrome, or SARS, was first detected in
Southeast Asia and is now spreading across the world.
These are the most
up-to-date details as of March 30:
Total number of
reported cases:
1,613
Confirmed death
toll: 57
Canada:
37 cases reported. Three dead.
China:
806 cases reported. 34 dead.
France:
One case reported.
Germany:
Four cases reported.
Hong Kong (Special
Administrative Region): 530 cases reported. 13 dead, including a patient who was medically
transferred from Vietnam.
Italy:
Two cases reported.
Ireland:
Two cases reported.
Romania:
Three cases reported.
Singapore:
89 cases reported, two dead.
Switzerland:
Three cases reported.
Taiwan:
Ten cases reported.
Thailand:
Three cases reported, one dead.
United Kingdom:
Three cases reported.
United States:
62 cases reported.
Vietnam:
58 cases reported. Four dead.
(Sources: World
Health Organization; Hong Kong Department of Health; U.S. Centers for
Disease Control and Prevention
WHO Internet link with latest update:
http://www.who.int/csr/don/2003_03_31/en/
News@PATA
'ENCOURAGING' TURNOUT FOR EIGHTH MEKONG TOURISM FORUM
PATA President and CEO, Mr. Peter de Jong, said he was
"very encouraged" by the 265 delegate turnout for the two-day
Eighth Mekong Tourism Forum which concluded in Hanoi on Sunday. "This
sends a strong signal despite our industry currently having to surmount
formidable hurdles," he said. In his welcome address on March 29, Mr.
de Jong also cited strong 2002 arrivals growth into the Mekong-region
countries: Cambodia (+28 percent); Yunnan, China (+15.2 percent); Laos PDR
(+34.6 percent); Myanmar (+6 percent); Thailand (+7.3 percent); and
Vietnam (+12 percent). PATA is compiling speeches from the Forum. They
will shortly be made available to PATA members in the members-only area of
www.pata.org. For further information
contact PATA Manager-Support Services, Mr. Aaron Tan. Tel: (66-2) 658-2000
ext. 125. Fax: (66-2) 658-2010. E-mail: aaron@pata.th.com.
JOIN THE 'SEE YOU' BREAKFAST IN BALI
PATA Annual Conference delegates are invited to join the
"See You in Pacific Asia" 2003 breakfast hosted by MasterCard,
National Geographic Traveler magazine and PATA. There will be a special
presentation by Mr. David Harvey, a photographer for National Geographic
Traveler. The breakfast takes place 0730 on Tuesday April 15, 2003 in the
Frangipani Room of the Bali International Convention Center. The "See
You in Pacific Asia" programme has become the single most powerful
campaign selling Pacific Asia as a region to U.S. travel consumers. To
RSVP for the breakfast or for further information on the programme,
contact Mr. Paul Cohen, e-mail paul@pata.org.
SINGAPORE CHAPTER RAISES SG$10,000 FOR FOUNDATION
The PATA Singapore Chapter and Skal Singapore have raised
more than SG$10,000 to benefit Bali and the PATA Foundation. The money
will be used to purchase arts and crafts from Balinese artists and
artisans. The goods will be auctioned at the PATA Foundation Silent
Auction to be held at the 52nd PATA Annual Conference, Bali, April 13-17,
2003. The PATA Foundation issues grants which boost small-scale and
sustainable development efforts in developing countries. For information
about the PATA Foundation, visit http://www.pata.org/pfpage.cfm?pageid=55.
For information about the 52nd PATA Annual Conference, e-mail: conference@pata.th.com.
For information about the PATA Singapore Chapter, contact Chapter
Chairman, Mr. Wong Soon-Hwa. E-mail: shwong@hertz.com.
BALI GUIDE BOOKS FOR NEW MEMBERS
Delegates who sign up for PATA membership on site at PATA
Annual Conference in Bali, April 13-17, 2003, will receive advance copies
of Lonely Planet's Bali travel guide, while stocks last. Non-member
delegates interested in applying for PATA membership, should contact Ms.
Patcharin Hongprapat at the Members' Area in the Exhibition Hall, ground
floor of the Bali International Convention Center.
AUSTRALIA BOOKS SPACE AT PATA TRAVEL MART 2003
PATA welcomes Australia’s renewed participation at PATA
Travel Mart 2003. The Australian Tourist Commission has booked 36 sqm of
space and may expand the area further. PATA is currently negotiating with
Tourism New Zealand and the Tourism Industry Association of New Zealand.
PATA Managing Director-Events, Ms. Sheila Leong, said: "We hope
ATC’s participation acts as a catalyst for other Pacific destinations to
join PATA Travel Mart 2003." More than 1,600 sqm have been booked to
date. Anyone interested in booking space at PATA Travel Mart 2003 should
contact PATA Manager-Events, Ms. Puangthip Chotipantawanon ("Mam").
E-mail: mam@pata.th.com. Buyers should contact PATA Assistant
Director-Events, Ms. Phenthip Chomprang ("Tik"). E-mail: tik@pata.th.com.
Web site: http://www.pata.org/frame.cfm?pageid=2&ebid=37.
PATA ISSUES CRISIS MANAGEMENT BOOKLET
PATA has produced a 16-page crisis management pamphlet
entitled, "Crisis: It Won't Happen to Us!" The booklet is an
introductory primer to crisis management and addresses issues such as the
essence of crisis management, crisis reduction, readiness, response and
recovery, and the role of leadership in a crisis, among other subjects.
The booklet was distributed at the Eighth Mekong Tourism Forum in Hanoi
and will be distributed to all delegates at the PATA Annual Conference in
Bali. The booklet will be hosted in the members-only area of www.pata.org
and will be sent to all PATA members in June. PATA chapters and
non-members can buy a copy for US$10 plus post and packaging. For further
information e-mail: publications@pata.th.com.
PATA PRODUCES YOUNG TOURISM PROFESSIONAL BROCHURE
PATA has produced a Young Tourism Professionals (YTP)
brochure which outlines the benefit of YTP membership of PATA. YTP
membership only costs US$25 per year. YTP benefits include special
registration rates for all PATA events and eligibility for PATA’s
"Face of the Future" award. For a brochure, contact PATA
Manager-Support Services, Mr. Aaron Tan. Tel: (66-2) 658-2000 ext. 125.
Fax: (66-2) 658-2010. E-mail: aaron@pata.th.com.
DE JONG JOINS TOP-LEVEL INTERNET MEETING
PATA President and CEO, Mr. Peter de Jong, joined the first
board meeting of the Travel Partnership Corporation (TPC) on March 10
during ITB in Berlin. TPC was formed to advise on policy for the proposed
".travel" domain, although ".travel" has yet to be
approved by the Internet Corporation for Assigned Names and Numbers (ICANN).
The TPC board is urging ICANN to move forward "expeditiously"
with the process. For further information contact Tralliance Corporation,
Senior Consultant, Industry Relations, Ms. Alex Delimata. Tel: (1-212)
481-2820 ext 17. E-mail: alex.delimata@tralliance.info.
PATA MEMBER DISCOUNTS FOR CRUISETOUR WORLD IN FLORIDA
PATA members are eligible for a 10 percent discount on
exhibit space for CruiseTour World 2003 in Fort Lauderdale, Florida, April
24-27, 2003. Travel agents can register for the weekend at a special PATA
rate of US$35. The show is endorsed by PATA and many PATA members are
participating. For general information visit www.CruiseTourWorld.com.
To book space contact Show Manager, Ms. Jennifer Fernandez. Tel: (1-718)
621-7499. E-mail: jennifer@travelindustryshows.com.
NEW MEMBER-TO-MEMBER DEALS
PATA will soon launch a special section on www.pata.org
where PATA members may extend exclusive deals on their products and
services to other PATA members. The list of specially-priced products and
services will be hosted in the members-only area of www.pata.org.
PATA members should send information on their special-price offers to
communications@pata.th.com.
PATA STRATEGIC INTELLIGENCE CENTRE WORLDWATCH
** On March 29, the World Health Organization reported that a
cumulative total of 1,550 cases of SARS and 54 deaths have been reported
from 13 countries.
** The Hong Kong Tourism Board has suspended all new
marketing initiatives and will launch a "comeback campaign" when
the time is right. Singapore has sent nurses and doctors to Changi airport
to screen incoming passengers in an effort to contain SARS. Public schools
in the city-state have been closed.
** A WHO communicable disease expert reported that 90 percent
of patients with SARS symptoms get better after six or seven days. The
remaining 10 percent who go down with a more severe form of the disease,
tend to be older and suffer from pre-existing illnesses such as coronary
heart disease, WHO said.
** China (PRC) has granted fifth freedom rights to Singapore
Airlines Cargo, the first foreign airline to receive them. Beginning April
1, a SIA Cargo Boeing 747-400F will arrive at Xiamen every Tuesday,
Thursday and Saturday. It will proceed to Nanjing and Chicago.
** Australia’s Department of Industry, Tourism and
Resources is coordinating the Tourism Industry Intelligence Bulletin as
part of the National Tourism Crisis Response Plan, activated since the
start of conflict in the Gulf. PATA members may have access to the
newsletter. Contact communications@pata.th.com
Le Méridien
Hotels & Resorts Announces Senior Team Changes
- Response to current market conditions -
(London): Le Méridien Hotels & Resorts has announced a
number of changes to its senior management team designed to advance its
worldwide business strategy in an increasingly difficult global travel
market.
Spearheading the new team will be current Deputy Chairman, Stephen
Alexander, who now becomes Chief Executive Officer. As part of the new
line-up Juergen Bartels (JB) is elevated to Joint Chairman of Le Méridien,
alongside Guy Hands of Terra Firma Capital Partners. Richard Mahoney,
who joined Le Méridien in August 2001 as President & Chief Operating
Officer has recently made the personal choice to rejoin his family in the
USA. His role will not be replaced.
New CEO Alexander will focus on further improving the performance of Le Méridien’s
142 properties around the world, which even in the current market, are
performing well compared to other groups. He brings to Le Méridien
well-established skills in transforming the financial performance of a
number of international brands.
Finlay McFadyen, currently a Managing Director at Terra Firma, is appointed
as Senior Vice President Corporate Development, a new position with
responsibility for overseeing asset strategy including Le Méridien’s sale
and leaseback program. Currently HR Director at Terra Firma, Sue
Wright joins as Senior Vice President Human Resources to focus on developing
a robust people strategy and raising the bar in customer service.
Commenting on the changes, JB said: "The combination of a softened
economy, the events of 9/11 and the present conflict in Iraq has severely
affected everyone in our industry including Le Méridien. With
Stephen's skills and unique experience in managing businesses in difficult
market conditions, I'm confident that the plans we announced almost two
years ago can be prudently continued in a very difficult market."
Stephen Alexander added; "With the continued downturn in the world’s
travel industry and its dramatic impact on the hotel sector, we decided that
it was an appropriate time to further strengthen Le Méridien’s senior
management team. Our new line-up, focused specifically on driving
performance, will complement JB’s deep industry knowledge, compelling
passion for the business and his vision for the future."
Stephen Alexander joined Terra Firma in September 2002 and was subsequently
named Deputy Chairman of Le Méridien. He was most recently with
private equity group Hicks Muse Tate and Furst where he was Chief Executive
of Hillsdown Holdings Ltd., a £1.75 billion conglomerate whose business
portfolio was restructured and refocused under his leadership.
Alexander previously spent 17 years with Allied Domecq PLC, one of the top
50 public companies in the UK. In addition to serving as a director of
the company, he was chief executive of its Retailing Division, which had
sales of £2 billion, 15,000 owned and franchised outlets and 48,000
employees worldwide. The company’s portfolio included such high
profile international restaurant brands as Dunkin’ Donuts and Baskin
Robbins as well as pubs and liquor stores throughout the UK. Earlier,
Alexander served as Chief Executive of J. Lyons, Allied’s Food Division,
which included UK household name brands such as Tetley Tea, Lyons Coffees
and Cakes, as well as a leading food ingredients business in the United
States.
Having been at Terra Firma for the last six years, Finlay McFadyen has 12
years in investment banking at Morgan Stanley and Paribas. He has been
on the board of Le Méridien since 2001.
Sue Wright comes from Terra Firma with a 17-year track record of
implementing company turnaround and business performance improvement
programmes. She has held a number of international Marketing
& Sales, Customer Service and HR executive roles in British Airways, RAC
and Barclays Bank.
About Le Meridien
Le Méridien is a global hotel group with a portfolio of over 140 luxury
and upscale hotels (38,000 rooms) in 55 countries worldwide. The
majority of its properties are located in the world’s top cities and
resorts throughout Europe, the Ameicas, Asia Pacific, Africa and the Middle
East. The company also enjoys a strategic alliance with JAL-owned
Nikko Hotels, providing loyal guests access to an additional 43 properties
around the world. Le Meridien Hotels & Resorts Group is
headquarted to an additional 43 properties around the world. Le
Meridien Hotels & Resorts Group is headquartered in London. Its
majority equity investor is Terra Firma Capital Partners LLP a fund advised
by Terra Firma Capital Partners Limited. www.lemeridien.com
Dubai Convention
Bureau opens for business
AsiaTravelTips.com
-
The Dubai Department of Tourism and Commerce Marketing (DTCM)
officially announced the opening of Dubai Convention Bureau (DCB) earlier
today, which will complement the department's on-going efforts to boost
the emirate's MICE sector (Meetings, Incentives, Conventions and
Exhibitions) and to promote the facilities and provisions of the Dubai
Convention Centre.
Addressing the reporters at a press conference held at the
department's Head Office, DTCM Director General, Khalid A. bin Sulayem
called DCB, a vision of His Highness General Sheikh Mohammed bin Rashid Al
Maktoum, Crown Prince of Dubai, UAE Defense Minister and Chairman of the
DTCM, which will now be a landmark in Dubai's MICE sector. "The
DCB was formed not only to meet the growing demand of Dubai's MICE
industry but also to establish the emirate as an international business
tourism destination. It supports all the convention hotels and venues of
Dubai by marketing their facilities regionally as well as internationally
and bids on behalf of Dubai at the international events," said Mr.
bin Sulayem.
He stated, since the idea of having the DCB was
conceputlised, the DTCM has been marketing the facility locally and
overseas. "We have announced the facilities of DCB in all the
roadshows, workshops major travel trade exhibitions and through the
network of our overseas offices, with regular updates on developments of
the property. This has not only helped us to keep the facilities and
amenities of DCB in news but has also showed Dubai's commitment and
seriousness to become one of the best rated venue for MICE
travelers," said Mr. bin Sulayem.
Mr. bin Sulayem noted that Dubai has everything that can be
expected from a top class business destination: "Ideal geographical
location as Dubai lies at the cross roads of three continents
-Europe, Asia and Africa and becomes a natural meeting point. Dubai
International Airport is being served by about 102 airlines connecting to
more than 130 cities world-wide. Annually the city hosts more than 60
major exhibitions as well as conferences and seminars".
He noted that DCB would be a key player in attracting major
conferences in the emirate. Successful conduct of such meetings and
conferences is bound to attract many more such events to the emirate
"The decision of international bodies to hold more and more global
conferences and meetings in Dubai is in appreciation of the emirate's
strategic importance, road infrastructure, choice of hotels,
international airport, modern telecommunications and excellent
services," added Mr. bin Sulayem.
NH Hoteles, Accor & Orient
Express win Deal of the Year Awards at the International Hotel Investment
Forum
NH Hoteles, Accor & Orient Express were winners of the
Deal of the Year Awards, held March 13, 2003 at the International Hotel
Investment Forum (IHIF) in Berlin, Germany.
The Portfolio Deal of the Year Award went to NH Hoteles for
their €130 million purchase of Germany's third largest domestic
operator, Astron Hotels with 53 properties in Germany, Austria &
Switzerland, as well as a pipeline of 22 new developments. The deal was
judged to be a strong strategic fit with considerable cost economies and
good cross-selling opportunities. The other finalists in this category
were Rotch Group, Farnsworth Group and Bank of Scotland's limited
partnership €527.5 million sale and leaseback of 10 Hilton Group hotels
and Orb Estates' €979 million purchase of 37 Thistle Hotels.
The Single Hotel Asset Deal of the Year Award went to Orient
Express Hotels for their first hotel in Spain with their €41 million
purchase of Mallorca's award winning La Residencia from the Virgin Hotel
Group. The judges praised the structure, the yield and the speed of the
deal and saw good scope for expansion and profit improvement. The other
finalists in this category were JJW Hotels for their €87.8 million
purchase of the prestigious five-star ANA Grand Hotel in Vienna and London
and Regional Properties €246.3 million acquisition of the flagship 500
room Hilton Park Lane.
The New Hotel Development Deal of the Year was won by Accor
for the Sofitel, St James's, London, developed in conjunction with MWB.
This deal was judged to have achieved considerable added value from the
re-negotiation of a new, longer term lease with the Crown Estate and the
fact that Accor was able to sell the investment to a third party on
completion of the development. The other finalists in this category were
the Marriott on Park Lane, London and the Park Hyatt Vendome, Paris.
Bob Lewis, Director International Hotel Property
Services for PKF, who co-presented the Awards commented: "The judges
were again impressed with the high standard of the deals nominated in all
categories, indicating that investors, hoteliers and funders
continue to find innovative ways to create added value".
Michael Hirst, Consultant for Insignia Hotels and
co-presenter agreed: "Once again the winning deals have proved that,
despite the current unsettled outlook, European hotel investors and
operators are creating growth opportunities which deserve the recognition
accorded by these awards."
War,
politics seen crippling Canadian tourism
(Reuters)
- The war in Iraq, high government taxes on the airline industry and anti-U.S.
comments by politicians could cripple the Canadian travel and tourism
industry, senior executives said on Monday.
They demanded the
government scrap or freeze a number of federal fees and taxes on the shaky
air transport sector which together raise C$800 million ($545 million) a
year.
"Ottawa must stop
treating the air travel industry as a cash cow. Federal fees and taxes on
the air travel industry and our customers have created a crisis in our
industry," said Cliff Mackay, president of the Air Transport
Association of Canada.
"Now, the war on
Iraq is threatening to turn this crisis into a disaster," he told a
news conference, saying Canadian carriers' passenger loads across the
North Atlantic had dropped by 10 percent since the war started.
Airline travel -- a
crucial pillar of the tourism sector -- had already fallen in the wake of
the Sept. 11 attacks and Ottawa's decision to impose an airport security
tax.
Flagship carrier Air
Canada (Toronto:AC.TO
- News) is struggling to
deal with enormous debts and the industry executives said its room to
maneuver was sharply reduced by the security charge as well as airport
rents and surcharges on fuel.
"We don't have a
system that is sustainable in any downturn because the government is
bleeding it dry," said Randy Williams, president of the Tourism
Industry Association of Canada.
In all, the travel and
tourism industry employs around 580,000 people and has annual revenues of
C$54 billion.
The executives also
said they were starting to pay the price for anti-U.S. comments made by
members of the ruling Liberal Party.
Earlier in March
Natural Resources Minister Herb Dhaliwal said U.S. President George W.
Bush had let down Americans and the world by not acting as a statesman.
Prime Minister Jean Chretien's top spokeswoman resigned in November after
calling Bush a moron. Legislator Carolyn Parrish said last month she hated
"damned Americans" and called them "bastards."
Tony Pollard, president
of the Hotel Association of Canada, said he knew of two major Toronto
conventions which had been canceled by U.S. executives unhappy about the
remarks.
A major convention can
be worth up to C$15 million to the host city, he said, pointing out that
some 25 percent of the hotel industry's business consisted of conventions.
"What we're
worried about is, as we get closer to the summer when we have more leisure
travel coming to Canada, that there would be a major falloff at that
time," he said.
Last year some 16.5
million Americans overnighted in Canada, spending C$8.5 billion.
"I've had calls
from agencies that have told me they feel these comments may have affected
up to one third of their incoming business," said Marc-Andre
Charlebois, president of the Association of Canadian Travel Agencies.
"Americans (are)
phoning and canceling their trips simply because they say they don't want
to be in Canada."
Another potential
problem is that some passengers are reluctant to travel for fear of
catching the deadly Severe Acute Respiratory Syndrome strain of pneumonia.
The executives said it was too early to tell what effect that was having
on business.
($1=C$1.47 Canadian)
Caribbean
braces itself for tourism decline
e-Tid.com
- The Caribbean tourism industry is preparing itself for a downturn
in demand
due to the ongoing war in Iraq, reports the FT.
Tourism is one of the mainstays of the region's economy,
bringing in around
£13bn each year and accounting for 30% of GDP. Visitor
numbers fell 16% in
the three months immediately following the 11 September
terrorist attacks,
and 4% last year.
Now there are fears that the sector's prospects could be
further damaged if
the war in Iraq slows economic recovery in Europe. 'Caribbean
tourism this
year could reach the levels of 2000, and then resume real
growth in 2004,'
Jean Holder, secretary-general of the Caribbean Tourism
Organisation told
the FT.
Barbados, meanwhile, is concerned about the effects of the
war on travellers
from its main markets, the US and the UK. The island's
tourism minister,
Noel Lynch, said: 'These are the two countries leading the
war, and these
tre the two on which Barbados' tourism is dependent.'
Tourism officials in the Caribbean are concerned that a
protracted war and
damage to the Iraqi oil industry could result in an increase
in oil prices,
with a knock-on effect on airline fares and resultant
fall-off in demand
from long-haul markets such as Europe and Asia.
'If
it is a quick and decisive war, we might not be too adversely affected,'
Josef Forstmayr, president of the Jamaica Hotel and Tourism
Association told
the FT. 'However, if it is protracted, it will be bad for
us.'
Hilton pay rises
spark fresh row
The
Independent -
Hilton Group, the hotels operator, is set to ignite a fresh row on
executive pay with substantial increases in boardroom pay and bonuses as
the group battles against a market overshadowed by the Iraqi war and fear
of terrorism.
The
company is proposing to increase the maximum bonus payable to its
executive directors to 120 per cent of basic salary. This change will be
subject to shareholder approval at the group's annual meeting on 16 May.
Hilton
is also courting controversy by choosing to retain a two-year rolling
contract for David Michels, its chief executive. Such contracts are
contrary to corporate governance best practice. Hilton has moved to
one-year deals for new executives but said its remuneration committee had
"considered the position of the executive directors who have held
two-year rolling contracts for a significant period of time". It
added: "Given that the group chief executive, Mr Michels, is in his
57th year, no change is proposed."
Hilton
explained that this was due to legal precedents which meant that changes
in contracts so close to retirement might be unenforcable. Asked whether
he had considered giving up his two-year contract voluntarily, Mr Michels
said: "I considered it and then rejected it."
Brian
Wallace, 48, group finance director, has seen his two-year contract
replaced by a one-year deal. However, he will enjoy a two-year payout,
worth £1.45m, in the event of a takeover.
Pirc,
the corporate governance specialist, objected to the plans. Stuart Bell,
research director, said: "Generally speaking there is no excuse for
the retention of two-year rolling contracts. Eighty five per cent of
directors of FTSE 350 companies are on one year or less."
Mr
Michels and Mr Wallace have been awarded two pay rises in the past year in
order to bring them up to industry norms. Mr Michels saw his basic salary
rise from £541,000 to £600,000 on 1 July. On 1 January this year it went
up by another 2.5 per cent to £615,000. In total Mr Michels received £826,000
last year, including bonuses, up from £772,000 the previous year.
Mr
Wallace received two similar rises to take his basic pay to £456,000.
Staff at Hilton's main operations, such as its hotels and the Ladbrokes
betting shops, received a pay rise pegged to the rate of inflation of 2.5
per cent.
Hilton
recorded a 3 per cent increase in underlying profits to £271m last year
New
Marketing Campaign Set to Boost UK Tourism
VisitBritain,
which was formed through the merger of the British Tourist Authority and
the English Tourism Council, will be behind a massive marketing effort
from the beginning of April to promote UK destinations to domestic
travelers.
Small
firms relying on tourism have had a turbulent time since the terrorist
attacks on the USA in 2001. The damaging effects of the foot and mouth
outbreak in the same year caused many firms close down. Currently,
uncertainties over the war in Iraq and the economic slump have added to
the gloomy picture, which has seen hotels slash their prices and several
small businesses, such as gift shops, become insolvent.
At
the launch of VisitBritain in Birmingham Wednesday, tourism minister Kim
Howells said that the organization's top priorities were to attract
visitors from within the UK and then to lure tourists from lucrative
destination such as Japan and the US. He also outlined government plans to
spend £35 million this year on promoting the UK abroad and a further £14
million on marketing for domestic travelers. "The government is
convinced that we have in place a credible and effective organization that
can quickly develop campaigns for use at home and abroad.
"VisitBritain
will carry forward the excellent work undertaken by the British Tourist
Authority to market Britain overseas, while creating a strong marketing
force for England at home and abroad," he said. Howells added that
the contribution of the tourism industry to regional economic growth was
growing. It is estimated that tourism is responsible for about ten percent
of regional gross domestic product growth.
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