BIL plans to oust Thistle directors

Caterer.com  - BIL International, the majority shareholder in Thistle Hotels, has asked for meeting with shareholders to oust members from Thistle’s board of directors.

In its official offer document, BIL said it was writing to shareholders to request an extraordinary general meeting in which it would propose substantial changes to the size and composition of the Thistle board.

The plans to oust several directors, believed to include chief executive Ian Burke, follow BIL’s £555m hostile bid to buy the remaining shares of Thistle. It already has a 46% stake in the company.

Thistle said BIL’s intention to remove members of its board was an “unacceptable attempt by BIL to coerce the board and shareholders into accepting its wholly inadequate offer.”

The offer document was posted as Thistle confirmed that it had been in talks with a number of potential “white knight” bidders for the company and some of its London hotels.

The company said discussions regarding the offers were at various stages but there was “no certainty” that any sale would take place.

A number of parties have been mooted as bidders, including French hotel group Accor and US-based property investment companies Starwood Capital and Strategic Hotel Capital.

BIL said if a competing offer for Thistle was made it would not sell its stake in the hotel group for at least 12 months.

Asia works to isolate SARS

By TravelWeeklyEast.com  reporters

Asia reacts to SARS threat: Regional roundup ASIA – The region’s destinations have stepped up their efforts to combat the spread of Severe Acute Respiratory Syndrome (SARS). Here’s a roundup of regional measures.

BANGKOK - Travellers returning from Hong Kong, China, Vietnam, Singapore and Taiwan will be forced to stay at home or face legal action, said Public Health Minister Sudarat Keyuraphan.

However, the cabinet turned down the ministry’s proposal yesterday that people be banned from traveling between Thailand and any of the countries listed as high-risk destinations.

Over the next two weeks, the new measure is likely to seriously impede travel between Thailand and countries with a high incidence of SARS.

Violators are liable to a prison term of up to six months and a fine of not exceeding 10,000 baht (US$240). The new measures yesterday will affect hotels with large numbers of tourists from SARS-affected countries, which have been ordered to post public notices on the risk of the disease and preventative measures, said Sudarat. Managing director of IndoChina Service Annelie Moog said the measures were a “disaster” for inbound. “Staff are very concerned, and we are doing our best to control the situation,” she said. – Paul Davies

SINGAPORE - Singapore has this week stepped up health screening procedures for passengers arriving at Changi Airport from affected countries. This is in view of new index cases that are traced to people who have travelled overseas.

For all incoming flights from affected areas as identified by WHO, nurses will be present to check on passengers who appear unwell. Those who have fever, will be sent to Tan Tock Seng Hospital for assessment.

Additionally, the Civil Aviation Authority of Singapore (CAAS) issued a directive to all airlines operating at Changi Airport requiring them to ask passengers the three questions recommended by the World Health Organisation (WHO) before allowing them to board the flight to Singapore :

·         Do you have high fever of more than 38 degrees Celsius?

·         Do you have one or more respiratory symptoms including cough, shortness of breath, difficulty breathing?

·         Have you had close contact with a person who has been diagnosed with SARS or had recent history of travel to areas reporting cases of SARS.

Any visibly unwell passenger will be asked to obtain a doctor’s certification before they are allowed to board the flight to Singapore. The above measures are on top of the health advisory cards distributed to all passengers coming from the affected areas.

KUALA LUMPUR - The Severe Acute Respiratory Syndrome (SARS) is the main reason cited for a three percent drop in the daily arrival of visitors at the KL International Airport in Sepang during a two-week period.

Transport Minister Datuk Seri Ling Liong Sik said Malaysia Airlines has seen reduction in passenger loads to a number of affected countries. Ling said the government is taking all the necessary preventive measures, including informing visitors at all points of entry, about the danger of the virus and advising them to seek immediate medical treatment if they are showing any SARS symptoms.

The Health Ministry has confirmed that eight people in Malaysia have been warded in various hospitals in the country after they showed symptoms of SARS. Seven were warded in hospitals in the Klang Valley and one in the Sultanah Aminah Hospital in Johor Baru.

Malaysia is still free of SARS, with no confirmed cases so far. Malaysia has advised against 'non-essential travel' to SARS-hit countries. Malaysian workers in Singapore have been advised to take their annual leave. - Corinne Wan

CANBERRA - The Australian Department of Foreign Affairs and Trade (DFAT) has recommended Australians defer non-essential travel to the worst of the SARS-affected countries - Singapore, Canada, Vietnam, Hong Kong and nearby areas of mainland China.

The advice says that transit through the international airports of these countries is "very low risk". Singapore Airlines in Australia has said will waive all airline-related charges for customers who choose to cancel or defer their travel to Singapore, Hong Kong, Canada, Vietnam and People's Republic of China.

The DFAT advice, coming on the back of recent security warnings against several countries in South-east Asia, will further impact the drop in outbound bookings to Asia from Australia.

Andrew Clark, the Hong Kong Tourism Board's regional director for Australia, New Zealand and South Pacific, told TravelWeekly, "Forward bookings to Hong Kong started to drop in February because of the imminent outbreak of war in Iraq.

"So, to some extent, it has been difficult to gauge the impact of SARS because bookings were already at a low level." - Ian Jarrett

Hilton defies Higgs with 2yr contract for Michels

e-Tid.com  -  Hilton Group is to retain a two-year rolling contract for its chief executive, David Michels, contrary to corporate governance best practice.

The Higgs report, published this January, recommended executives’ contracts should be no longer than one year. According to the Independent, Hilton has moved to one-year deals for new executives but said ‘given that the group chief executive, Mr Michels, is in his 57^th year, no change is proposed’ for his contract.

The company explained this was due to legal precedents, which meant that contract changes so close to retirement might be unenforceable. Asked whether he had considered giving up this two-year contract voluntarily, Michels said: ‘I considered it and then rejected it.’

Corporate governance advisory firm PIRC criticised Hilton’s decision.  Research director Stuart Bell told the Independent: ‘Generally speaking there is no excuse for the retention of two-year rolling contracts.  Eighty-five percent of directors of FTSE-350 companies are on one year or less.’

Meanwhile Brian Wallace, Hilton Group’s deputy chief executive and finance director, has agreed to cut his two-year contract down to one. However, he will be entitled to a ‘liquidated damages payment’ of £1.45m in the event of a takeover

Wallace is on a basic salary of £457,000, although last year he received a total of £726,000 including bonuses, benefits and pension supplements. In 2002, Michels’ total pay rose from £772,000 to £826,000.

War impacting NYC restaurants, hotels

(AP) -- Wary of the war in Iraq, some tourists to New York City seem to be "taking a wait-and-see attitude" before making reservations and tourism officials are concerned that prolonged combat will cause longer-term damage to the $25 billion industry.

"We haven't seen any major cancellations, but advance bookings are down for the spring and summer," said Cristyne L. Nicholas, president of NYC & Company, the city's tourism agency. "If the conflict is relatively brief, we're optimistic about the summer. If not, we may be looking at a more negative impact."

In 2002, 5.8 million international visitors came to the city, compared to 5.7 million in 2001 and 6.8 million in 2000, according to NYC & Company. Domestic visitors from 1999 to 2001 were relatively unchanged, at about 29.5 million.

Short-term reservations dropped at Marriott International's five full-service Manhattan hotels, but business travel reservations, a large segment of Marriott's clientele, and reservations for other large groups remained unchanged, said company spokeswoman Kathleen Duffy.

The chain's largest cancellation was from a group of teenage athletes urged by their parents to reconsider. Duffy also said weekend business from people staying one or two nights while taking in a show also has dipped.

"People may be sticking closer to home," she said.

Inconsistent business

Like many hotels, restaurants just recovering from a slump following the September 11 terrorist attacks, are also worried about the effect of a long war on their business.

"War is not a positive thing for restaurants," said E. Chuck Hunt, vice president of the New York City chapter of the 2,500-member state Restaurant Association.

Reservations at Manhattan's "21" Club have been down for several weeks, particularly since the war began, said general manager Bryan McGuire. He declined to discuss figures but said Friday and Saturday nights and the lunchtime period "seem to be sagging."

"There's no pattern. Days you expect to be busy are not," he said.

Julian Niccolini, co-owner of the Four Seasons agreed that, "Things have been very inconsistent since the war started."

Changes are minimal at famed restaurant Tavern on the Green in Central Park, except for a decline in corporate events, said general manager Allan Kurtz.

But in Greenwich Village's Acme Bar & Grill, patrons are still coming to spend and also take their mind off the war, said manager Jon Langston.

When customers gaze up at the bar's four televisions, they "definitely don't want to watch CNN," he said.

Jowell names marketing chief to spearhead UK tourism drive

Culture secretary Tessa Jowell has appointed Hilton UK's marketing chief, Hugh Taylor, as the head of the England Marketing Advisory Board (EMAB).

EMAB supports the work of VisitBritain, the newly created national tourist body, which is launching today. Created following the merger of the British Tourist Authority and the English tourism Council, Visit Britain hopes to offer a more focused approach to marketing the UK as a holiday destination.

Taylor, in his new role of non-executive chairman of the EMAB, will help guide and develop the marketing of England, within the wider framework of VisitBritain. The EMAB will also aim to forge relationships with the public and private sectors.

Commenting on the appointment, tourism minister Kim Howells said: "The formation of a new England marketing function provides an exciting opportunity to showcase the many and varied attractions this country has to offer."

Hong Kong Hotels report a slump as fears grow for tourism

SCMP  - Inbound tourism has practically ground to a halt while hotel occupancy has fallen by up to 20 per cent amid the atypical pneumonia outbreak.

Travel industry players fear that the week-long Labour Day holiday on the mainland from May 1, which brought 200,000 visitors from the mainland last year, will be heavily hit.

This has led to cuts in estimates for Hong Kong's economic growth this year.

Citibank predicts the loss in tourism revenue would lower the city's gross domestic product (GDP) by $ 2.6 billion, or by 0.2 per cent, assuming the outbreak lasts for two months.

"In a more ugly scenario of the epidemic lasting for the rest of the year, the loss in tourism revenue could cut Hong Kong's GDP by $ 11.5 billion, or 0.9 per cent."

Wong Wai-wing, chairman of the Hong Kong Association of Registered Tour Co -ordinators, said most of the inbound package tours had been either cancelled or postponed. Package tours from Thailand and the Philippines had been cancelled in the past week, he said.

"What we worry most about is the impact on the upcoming golden week of Labour Day holiday from May 1," said Mr Wong, whose group represents about 800 tour guides in Hong Kong.

He said there were about 200,000 visitors from the mainland during last year's Labour Day holiday. He warned that some small travel agencies could be forced to close down if the outbreak extended to the peak July season.

Dan Lee, vice-president of the Hong Kong Hotels Association, said occupancy rates fell to between 15 and 20 per cent in March. The cancellation of trade fairs and meetings also have had serious impact on the hotel industry, he said. 

War hits German tourism to US

DPA  -  German tourists to the United States are tending to avoid the bigger cities because of fears of terrorist attacks, tourism officials say.

The was one of the findings which emerged in an analysis made shortly before the start of the war in Iraq.

But some aspects of the analysis were contradictory. Interpreting precisely what people's attitudes towards travelling to the United States was difficult.

The results of the survey were issued at the International tourist Exchange in Berlin in March.

According to an analysis by the FUR travel research organisation, interest in flying to the US has declined lately by about 30 percent.

But this finding is contradicted by German tour operators and U.S. tourism officials, who talk of a resumption of interest in the US by Germans - not least because the increasing strength of the euro gives them more dollars.

But where these travellers actually pack their bags and go will only become clear when the Iraq war is over.

Klaus Laepple, president of the DRV travel agency and tour operator association, said, "We are finding that the USA is again in great demand."

German airline Lufthansa has a good level of bookings for the US in the summer, spokeswoman Katrin Haase said.

Rita Hille, a US travel specialist based in Germany, said the year had begun well but since mid-February people had been holding back on bookings because of the deepening Iraq crisis.

Hille, who represents the "Visit USA Committee Germany", says the committee believes that the number of German arrivals in the US will rise this year to 1.45 million from last year's 1.3 million. She believes that this is because many people who had been deferring their trip because of the high dollar rate will finally decide to travel this year.

At the end of the 1990s, about two million Germans a year were visiting the US.

Hille does not necessarily see a contradiction in the expectations of the tourist industry and the outcome of the RUF survey. The survey asked about anticipated travel arrangements for the next three years.

The lack of interest could be put down to people who had planned in a general sense to visit to US but who had since lost interest. However, other people with specific ideas about what they wanted to see were likely to go ahead, especially with the euro- dollar course as it is, she said.

What Germans expect to see in the US is changing. Laepple, of the DRV association, said more people are heading to the west. Hille also reports a shifting of destinations to the Pacific coast. Lufthansa is from the end of March opening a new route from Frankfurt to Portland, Oregon.

Germans are continuing to avoid the larger cities because of terrorism fears.

Hille said demand was increasing for holidays in natural surroundings and for "soft adventures" such as guided tramping, kayak and bicycle tours in rural areas.

Jones Lang La Salle postpones investment meet

TravelWeklyEast.com   -  Yet another industry event has fallen prey to the SARS outbreak – the 6th Asia Pacific Hotel Investment Conference, due to be held April 9 in Singapore, has been postponed.

The annual event, scheduled for the Ritz-Carlton Hotel, is organised by Jones Lang LaSalle Hotels and is its key investment event for the region. Organisers told TravelWeekly the event will be rescheduled to June and details are being finalised.

It is understood concerns had arisen over lower attendance of delegates from SARS-affected countries such as Hong Kong and China, two key markets for the conference, as well as concerns by speakers over travelling to Singapore, a SARS-affected destination.

At the same time, a cocktail party to be organised by Six Continents to thank its former managing director-Asia/Pacific, Richard Hartman, has also been called off.

Hartman, who has moved from Singapore to take on the Europe/Middle East/Africa portfolio, was to have visited Singapore to attend the Jones Lang LaSalle event.

An awards dinner organised by Superbrands to honour top brands in the region was also to have taken place tonight at the Ritz-Carlton Hotel Singapore.

But it was also called off on advice from the Ministry of Health in Singapore.

“This is a major concern,” said one hotelier in Singapore. “If more high profile events such as these cancel, then we can expect more cancellations.”

And the latest blow: Santana has also called off his concerts in Asia, which included Singapore and Hong Kong.

Suntec City, the city’s main convention centre, has estimated that 12 percent of events in April have been cancelled due to the SARS outbreak.

Free night promotion at Le Méridien hotels Middle East /India

AME Info -  Moving swiftly to counter the downturn in travel around the world, the luxury hotel group Le Méridien has introduced a Free Nights promotion for its seven properties in the UAE, as well as selected hotels across the Middle East and India.

Central to the Free Nights offer is the 3 for 2 offer, whereby anyone booking two nights at one of the group's participating hotels in the Middle East or India gets a third night for free.

“Le Méridien has long been focused on this region: we have 20 properties in the Middle East, which represents more than 18 per cent of the group's inventory worldwide,” said Russel Sharpe, regional vice president of sales for the group.
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“Intra-regional tourism is crucial at the moment, which we identified 18 months ago, and again acted on when our seven UAE properties undertook a GCC roadshow during February and early March.

“To encourage both corporate and leisure travel just now, we have taken this opportunity to give something extra to those that choose to stay with us.”

The offer will run until September 15, and also incorporates the group's favourable Passport rates. It covers both resort hotels such as Le Royal Méridien Beach Resort & Spa and the recently opened Le Méridien Al Aqah Beach Resort, as well as city properties such as Abu Dhabi Grand – soon to be rebranded as Le Royal Méridien Abu Dhabi – and Al Sondos Suites by Le Méridien in the heart of Dubai.

Sharpe added: “We are particularly aiming this promotion at both new and existing regional customers, and a key message for all our local markets is that, in fact, there has never been a better time to travel to the UAE.”

For details of the hotels participating in the Free Nights Promotion, go online at www.leMéridien.com 

Australian Tourism operators hope for more than eggs

The Age -  Victorian regional tourism operators hope the Easter break will arrest losses and declining visitor numbers caused by drought, bushfire and the issue of public liability insurance.

The chief executive of the Country Victoria Tourism Council, Nicholas Hunt, said the areas worst hit by drought and bushfires faced a difficult environment as they struggled overcome negative public perceptions.

"Around the Easter time and school holidays there are a range of small and medium-sized festivals and events across regional Victoria... and in many of the regions it will be the cash flow boost that holds them up over the winter period," he said at the Victorian Regional Tourism Conference in Melbourne yesterday.

"For those in the north and the west of the state the drought has been a long process. It's not as dramatic as a bushfire, but the images of dry landscapes has created some issues in terms of encouraging people to return." Mr Hunt said the part of the solution was to highlight alternative regional attractions.