Sternlicht:  Industry has to ride out “perfect storm”

Chairman and CEO of Starwood Hotels & Resorts Worldwide, Barry Sternlicht, told a packed lunch crowd at the JW Marriott Hong Kong that the industry's biggest challenge was to ride out the "perfect storm" that had hit it.

"Terrorism, the economy and war - and now we hold our breath for Iraq and a resolution to the Al-Qaeda problem.,” he said at the lunch held in conjunction with the HICAP 2002 conference.

He said already short lead times in bookings were getting shorter. "Our call centres are going up and down with each warning. People are holding their reservations for the last minute."

Within Asia, Sternlicht said he feared the "tragic, terrible event in Bali" would impact on business to the island.

What was most difficult about Bali was traffic was purely leisure and that meant it was purely discretionary.

While he said other destinations such as Fiji and Phuket would benefit directly from the Bali events, "all markets have not been spared".

Even China, which remained resilient after September 11, had seen a drop in international traffic. "People are staying in their own spheres - US, Europe and Asia. People are staying local and regional."

He said hospitality had always been an important business but was more important now than ever. "It is the biggest economy in most countries and it's critical for jobs. Travel also involves forging understanding between people. Sympathy and compassion are more important than ever. Isolation breeds extremism. It is more important than ever to promote travel and tourism."

Sternlicht expressed confidence that "this too will pass".

Special Report :  By Yeoh Siew Hoon TravelWeeklyEast.com

Hilton/QMH in German franchise talks

e-Tid.com  -  The Business reports Hilton is interested in setting up a franchise deal with Queens Moat Houses that would see it enter the German market.

‘City sources’ say Hilton CE, David Michels, wants to boost the group’s Scandic chain and that Germany has been identified as a key growth area.
Queens Moat Houses has 89 properties in the UK, the Netherlands and Germany. The majority of its German hotels operate under the Holiday Inn brand, but that franchise agreement is due to expire shortly. Andrew Cooper, QMH chief executive, has said that a decision on the company’s portfolio will be made in December.|

According to the Business, Hilton would be up against French group Accor and Westmont Hospitality of the US, which operates under the Holiday Inn brand and holds a 10% stake in QMH, for the latter’s 24 German hotels.

UFTAA congress:  Call for action on “sweeping” advisories

Industry associations meeting at the UFTAA congress in Kuala Lumpur have come out with strong messages of support for Bali’s travel trade as well as issued calls for firm action to counter what could be a potentially devastating impact on tourism to the region.

ASEANTA (ASEAN Tourism Association) and UAPA (Universal Federation of Travel Agents Association Asia Pacific Alliance) issued statements yesterday expressing sympathy for the victims and families of both the Bali and Zamboanga incidents. Both said they deplored “such acts of violence against humanity and the effect that these have on the communities in the affected countries and surrounding areas”.

In its statement, ASEANTA took a stance on “the issuance of sweeping travel advisories against travel to ASEAN countries”.

“The association feels that these advisories run contrary to the existing current situation in ASEAN countries that are generally safe and stable. Such advisories also reflect the livelihoods of a wide spectrum of peoples who rely on the tourism industry.”

According to media reports, Australia, US and some parts of Europe have placed travel advisories on the ASEAN region, covering Singapore, Thailand, the Philippines, Brunei, Malaysia and Indonesia.

President of MATTA (Malaysian Association of Tours and Travel Agents) Tunku Iskandar told TravelWeekly, “The recent incidents in Bali and Philippines could have far-reaching impact on inbound tourism to ASEAN. We have to manage this and one way is by good communication to foreign governments which are issuing advisories which are unfortunately not specific to the real security issues.”

John Dart, UAPA’s chief executive officer, said incidents such as Bali only reinforced the need for associations like ours and national industry and related associations to work together and regrettably, sometimes terrible situations can produce some good.

“There is a binding desire by all of us to work together to help Bali out. There is a firm resolution and commitment to do what we can because we simply cannot allow a minority to destroy attitudes that have taken years to build up.

“It’s not only Bali that suffers but world tourism which means the economic destiny of the world.”

Asked if it might be deemed too early to take such action when the wounds are still raw and deep in Australia, which held a day of mourning yesterday for its citizens which were killed in Bali, Dart said, “I believe Bali will come back and we will encourage people to come back.

“However for legal reasons mainly to do with insurance, government travel advisories may make it difficult. We must do what we can to influence governments to reduce advisories on travel to Bali.

“We cannot allow the terrorism factor to be a deterrent to tourism - the economic effects of that would be catastrophic.”

Special Report :  By Yeoh Siew Hoon TravelWeeklyEast.com

Shanghai chosen to host inaugural Asia Business Travel Market (ABTM)

Shanghai has been chosen to host the inaugural Asia Business Travel Market (ABTM) on 3-5 September 2003. Presented by Reed Travel Exhibitions (RTE), leading worldwide business to business event specialists, ABTM will be held at Grand Hyatt Shanghai.

"We looked at several cities to host our first show. The choice was obvious - without doubt, the thriving metropolis of Shanghai was the clear winner," said ABTM Event Director, Andrew Lee. "The marketplace for business travel in Greater China is surging and Shanghai is right there providing the perfect platform. The growth of business travel in China will inevitably be clustered around the fastest growing cities, led by Shanghai," said Mr Lee.

Greater China's annual business travel expenditure is in excess of US$4.2 billion and growing at an average rate of 20 percent annually. The thriving business hub of Shanghai is already home to half of Fortune 500 companies. Overseas investment continues to pour into this city, with US$8 billion already secured for 2002 - an upward revision from its earlier target of US$6 billion (Source: Xinhua Information Centre).

"We are delighted that Reed Travel Exhibitions has chosen to hold the inaugural Asia Business Travel Market in Shanghai," said Mr Yao Mingbao, Chairman, Shanghai Municipal Tourism Administrative Commission. "The Mart comes at an opportune time as Shanghai, as well as China, rides the crest of the wave of the business travel boom. The staging of ABTM in China's economic powerhouse is testimony to the potential the city presents to the business travel industry not only in China, but the wider region as well," said Mr Yao.

Exhibitors are also eagerly anticipating the launch of the show, judging from the strong support received when RTE sought expressions of initial interest to ABTM.

"We are delighted with the overwhelming interest shown by exhibitors. It shows we are doing the right thing, at the right time and at the right place," said Mr Lee. Introducing: "The Lounge"

Also making its debut at ABTM is The Lounge - a revolutionary, style-setting exhibition scheme. The Lounge is a fuss-free stand building package that does away with additional administrative hassle and booth setup. Its appeal is in the all-inclusive standard costing and fringe benefits.

Priced at US$5,000, it comes with a six square metre display and meeting area fully furnished with chairs and table; plus display poster boards, plants and other amenities. The package also includes two exhibitor badges with entry into all conference, plenary, workshop sessions; tea breaks, networking luncheons and social functions.

"This will free exhibitors to concentrate on their key priorities - securing contacts and conducting business," said Mr Lee. 

Survey shows likes of business travelers from different countries

(Xinhua) --A recent survey found that the world's business travelers are not alike, they have highly different service priorities and needs while doing business.

Sponsored by the American Express, the survey revealed the likes and dislikes of 1,400 business travelers hailing from 14 different countries and regions, including what they prefer in hotel rooms and on planes.

The poll also showed what irritates international business travelers: French people hate delays, Germans get angst over unfinished office work, and Brazilians suffer from jet lag.

In hotels, Swedes want breakfast and Americans must have webs, while Asians look for business center facilities.

Respondents practice a variety of methods to relieve the stress of a busy day doing business on the road. Most Germans prefer to see the local sights, so do the Chinese, while most British respondents said they kick back by socializing, along with Canadians and Swedes.

"As corporations expand their businesses and go global increasingly, they are sending business travelers out across the world to meet new customers and close deals," Mark Webb, senior vice-president of American Express Global Business Partnership.

The result of the survey spotlighted business travelers' on-the-road strategies for balancing the demands of their work and personal lives, Webb added.

American Express operates one of the world's largest travel agencies, recording 17.2 billion US dollars in worldwide travel sales in 2001.

South Africa Tops Competitors for Tourism Growth

Business Day   -  SA HAS emerged unscathed from the post-September 11 tourism slowdown, with foreign tourist arrivals increasing 7,2% in the first seven months compared with last year.

Environmental Affairs and Tourism Minister Valli Moosa says SA remained "one of the only tourism growth markets in the world" and this year would be a "bumper year" for tourism. The industry had predicted a 0,3% growth for the period.

Tourist arrivals climbed 236314 to 3,5-million for the year up to July.

Travellers from Europe increased 16,2%, while the UK remained the biggest growth market with tourist arrivals rising 19,4% compared with last year.

Moeketsi Mosola, the chief operating officer for SA Tourism, said its "aggressive marketing" over the past three years and the devaluation of the rand last year were some of the factors that had paid off in attracting foreign visitors to the country.

He said the tourism industry, including provincial government departments, were now "singing one song" when it came to the branding of SA.

SA's nonpartisan view in the "terrorism debate" following the attack on the US had also played a balancing role, with SA seen as a safe destination, said Mosola.

The country was now leading its competitors Australia, Thailand, Brazil, Kenya and Morocco as the top tourist destination in terms of growth.

Mosola said there were fears that the recovery in global tourism might face another setback after this week's bomb blasts in Bali that killed an estimated 200 people.

SA Tourism was assessing the affect of the blast on tourism numbers in the country and would only release its findings next month.

Mosola said SA Tourism was also "taking a cautious stance" on launching its marketing campaign in the US. With an impending war in Iraq, the marketing drive may be postponed.

The number of US tourists increased 2,7% from January to July compared with last year. Tourists from other parts of Africa also flocked to SA, with tourist arrivals increasing 5,8%.

Domestic tourism remained the biggest share of the tourism market, contributing 63%.

"Things are most definitely looking set for a bumper year. These statistics vindicate our hard-nosed approach to international marketing," said Mosola.

Bali blast will not impact investment prospects in Asia

Bali bomb blast will not darken the investment landscape in Asia/Pacific, a leading private equity fund investor told the HICAP 2002 conference today.

Marten Foxton, managing director-Europe, responsible for hotel and resort investments for Maritz, Wolff & Co, told TravelWeekly, "First of all, I am based in London which has experienced terrorism for 30 years. The market recovers. Life goes on - as it does in Paris which has also experienced terrorism for 30 years."

Foxton said what was more important for investors was that other market fundamentals were correct - "the economic climate, the desire to go there, the hotel product is good. Terrorism alone will not destroy a market. Look at how New York has come back 10 months later."

Referring to yesterday's discussion in which Robert Broadfoot of the Political and Economic Risk Consultancy said it was critical to determine the whos and whys behind the blast, Foxton said, "Whatever answer it is - external or internal - will not affect our view of investments in the region.

"If it is external, then it means it could happen again and again, somewhere else and somewhere else. But are we going to stop investing everywhere? No. We will continue investing like we have in US and Europe, so why should we stop investing in Asia.

"Logic dictates and as long as there are positive investment opportunities, we will invest."

Foxton said if was internal forces responsible, then perhaps it could affect Bali specifically but not the Asia/Pacific region. "But longterm I am not worried about Bali, it is a good place."

Asked which investment hot spots his fund, which has interests in 17 hotels with the value of US$2 billion, was eyeing in the region, Foxton picked Australia, Thailand and Japan.

China was on the radar screen but "it's more a longterm play, we are on the learning curve."

Foxton said Maritz, Wollff & Co, which owns Rosewood Hotels & Resorts, had seen a marginal impact on its hotel investments the past year "but we have been very encouraged by the quick recovery after September 11." Its hotel investments are mainly in the US, Caribbean and Australia.

Source: TravelWeeklyEast.com

Prestigious award for Corinthia Hotels International

Corinthia Hotels International has been voted 'Best Hotel Group in the Mediterranean', by UK and Irish travel agents taking part in the 2002 Selling Short Breaks Travel Industry Awards, announced this month by popular UK Travel Trade publication Selling Short Breaks.

Corinthia Hotels International is fast emerging as a leading brand of four- and five-star city and resort hotels, with upscale properties in Belgium, the Czech Republic, Hungary, Libya, Malta, Portugal, Russia, The Gambia, Togo, Tunisia and Turkey.

The Group has recently acquired the Corinthia Nevski Palace Hotel in St Petersburg, Russia, and the former Diamant Antwerpen Hotel in Belgium, now renamed Corinthia Antwerp Hotel.

In December the Group will be celebrating the rebirth of the legendary Corinthia Grand Hotel Royal in the heart of Budapest, and the opening of the brand new Corinthia Towers Hotel, Tripoli, which will dominate the skyline in the Libyan capital. Both superior five-star properties will offer extensive conference and leisure facilities.

Selling Short Breaks is published in the UK every two months by BMI Publications, who have been producing publications, primarily in the travel and tourism sectors, for almost 25 years.

Thailand Announces Tighter Security Measures for Tourism

VOA  -  Thailand has announced tighter security measures at its tourist destinations after this month's bombings in the Philippines and Indonesia. It is one of many Southeast Asian nations concerned that the terrorist acts in the region will devastate the crucial tourism industry.

Thai Prime Minister Thaksin Shinawatra ordered tighter security at key tourist locations as Thailand is approaching its peak season, the Christmas and New Year holidays.

Thai police patrols have been stepped up on the popular tourist islands of Phuket and Koh Samui. Major entertainment complexes are coming under special watch and 200 army commandos are to be mobilized to oversee a popular monthly beach party that attracts up to 3,000 mostly foreign visitors on the southern island of Koh Pha Nga.

The moves come as Pacific and Western governments issued strong travel warnings to their citizens to leave or cancel holiday plans in Southeast Asia.

The British Foreign Office says the threat of a terrorist attack has increased significantly and urged people to exercise extreme caution in Indonesia, the Philippines, Malaysia, Thailand and East Timor.

Australia and New Zealand say they have disturbing new information that Westerners are facing security risks in the region after the deadly October 12 bombing on the Indonesian island of Bali. At least 180 foreign tourists, mostly Australians, were killed.

Governments here in Southeast Asia are contending with dual concerns: how to protect against more loss of life from terrorism and how to protect their people from economic devastation through the loss of vital tourist money.

Each year some 40 million tourists flock to such places as Bali, Bangkok, Phuket and Singapore, employing millions and providing much needed foreign exchange earnings.

In Thailand alone, tourism accounts for five percent of economic output and generates some $5 billion in foreign exchange. The country has been hoping for 11 million visitors this year, a 10 percent increase over 2001.

John Koldowski, of the Pacific Asia Travel Association, says bookings are going to go down. "There is some evidence some markets are already switching and they are picking other destinations such as Thailand or maybe Singapore," he says. "Others are saying 'Heck it's not worth it; let's stay home, let's see what going to happen next.'"

A man from the Australian city of Brisbane, who gave only his first name, Cam, says that while he feels generally safe in Thailand, the threat of violence is now a constant for everyone traveling in the region. "I would think twice before I go anywhere. Because all these things happening in big crowded tourist locations basically have been targeted by God knows who for what purposes, for doing that just makes me think twice, to be honest."

While tourism experts say some people have switched their holiday plans from Indonesia to Thailand this week, Western consular officials in Bangkok told VOA they are facing a constant barrage of telephone queries from nationals, asking whether Thailand is a safe destination.

Thailand may fare better than some of its Southeast Asian neighbors, but it is not clear for how long. Khampi Suwannarat, executive vice president of the Dusit Hotel and Resort Group in Bangkok, says Westerners are not so familiar with the region that they accurately differentiate between countries. "I'm still worried about the long term because people from long haul traveling may cancel their trip altogether because they don't really know where Bali is in [relation to] Thailand. So it's still confusing. And we may be affected. People may be too scared to travel," he says.

Mr. Khampi says there are now fears in the tourism industry that Southeast Asia may be viewed as a generally unsafe destination for travelers. "If I were a traveler coming from a long haul like from Europe or America, I probably would postpone my trip to Southeast Asia for a while," he says.

The tourism industry is bracing for further problems if war erupts in the Middle East, or if further attacks were to take place in Southeast Asia.

Le Meridien rolls out “profit protection and crisis plan” for Bali

Le Meridien has put in place a profit protection and crisis plan for its property in Bali, managing director Asia/Pacific Michael Sagild said.

"The plan establishes scenarios based on revenue reductions of 30, 40 and 50 percent respectively where different activities kick in at different levels," he said.

As of today, revenue reductions have gone past 50 percent and the hotel will run a 15 percent occupancy tonight, he added.

As such, he said, the hotel was making deployment offers to staff to take on short-term contracts in the Middle East and Singapore. "This is to protect their livelihoods and not break their rice bowls. They can come back and rejoin the hotel when business recovers."

The hotel has 590 local staff and it hopes that at least 200 will take up the scheme. Asked what would happen if staff refused the offer, Sagild said, "It doesn't cost us a lot to keep them on but in Bali, what is important to local staff is the service charge and that's not going to be there."

Sagild said expatriate staff would be deployed elsewhere "as they are a high individual cost on the P&L".

He said the hotel would also trim operating costs to meet the levels of business but would protect standards.

He was optimistic that revenue reductions would not get any lower than 50 percent. "We are in Tanah Lot, we are not in a typically built up or dense area. We want to capitalise on that location."

Asked if was callous to be so opportunistic amid these times, Sagild said, "It depends when you do it. That's why I don't agree with the Indonesian tourism bureau, which wants to send a delegation to Australia to solicit business. Let's let the dust settle and then we can start working on recovery.

"Regional business will return - people who understand the situation in Bali better - will return."