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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.