What business travellers want : eHotelier Newsletter

MSNBC - The bad news in the travel industry is spawning a new round of hotel price cuts for leisure travelers.

In recent weeks, the major chains — desperate to fill empty beds — have rolled out incentives including free Sundays for weekend guests, bonus airline miles, and free food for kids. Marriott International is offering weekend rooms starting at $44 a night. Its main rival, Starwood Hotels & Resorts Worldwide Inc., owner of the Westin, Sheraton and other chains, is selling rooms for $49 a night, and has upped the ante by letting guests check out as late as 4 p.m. and providing free food to children under 12 at every meal where Mom and Dad are eating.

The latest price cuts follow months of already-generous deals, and are also notable for kicking in during the holiday season, which is usually a strong time of year for hotels. Wyndham International, for instance, is holding a “72-hour sale” the week of Nov. 11, when members of the chain’s guest-loyalty program can reserve half-price rooms as far out as March.

While top resort destinations like Hawaii and the Caribbean are avoiding price cuts, other high-traffic destinations aren’t. The discounting reflects the industry’s eagerness to get people back into rooms left empty by the sharp decline in corporate travel, which traditionally accounts for two-thirds Wyndham’s price cuts are specifically designed to give guests an incentive to book further in advance. Now, people are booking so late that the hotel can’t get a read on how the holidays are looking, says Fred Kleisner, Wyndham’s chief executive.

Hotels had been hoping to raise prices soon — or at least see a slight rebound in their figures from the disastrous year before. But even that has proved elusive. “The room rate and occupancy growth have really been pretty tepid,” says Steve Kent, an analyst at Goldman Sachs.

After the terrorist attacks, revenue per available room, a key indicator of industry strength, tumbled nearly 24%. That figure is down nearly 5% again this year, according to Smith Travel Research, its second-sharpest drop since Smith began tracking the number in 1987. (The biggest decline, of course, was the previous year.)

Adding to hotels’ woes is the fact that more travelers are sniffing out low-priced rooms on the Internet. On the travel Web site Expedia, the average daily price for a hotel during the third quarter fell 4% from a year ago.

The bargains are sweet revenge for travelers. Decent prices were almost unheard of during the boom of 1999 and 2000, when business travelers with fat expense accounts were zipping from hotel to hotel.

Hilton Hotels is seeking leisure travelers by giving out coupon books with airfare deals (such as a $299 round-trip to 99 U.S. cities on major airlines) or up to $100 in free food; to get the book, ask for the Easy Escapes package when booking. It’s throwing in free Sunday-night stays during the holidays for guests who book Friday-Saturday stays, with a few exceptions such as the Christmas week in Hawaii and New Year’s Eve in New York.

The chains are also getting liberal with frequent-guest points. Westin is promoting its new hotel in New York’s Times Square by offering 2½ times the normal points per stay. Six Continents, the owner of the Holiday Inn, Crowne Plaza and of its business. Corporate travelers have cut their average hotel stay to 1.5 days from 2.2 over the past year, according to Hilton Hotels.

The situation isn’t likely to improve soon. Most companies plan to spend the same or less on travel next year, says Jason Ader of Bear Stearns. Arne Sorenson, chief financial officer at Marriott, says the current slump qualifies as a 50-year low for hotels.

The price cuts are a big risk to the industry. If lower prices don’t boost occupancy, then hotels have merely created a price war that will put more pressure on revenue.

Adding to hotels’ headaches: Travelers are increasingly waiting until the last possible minute to book. That trend, in fact, has triggered some of the discounting

InterContinental brands, is also offering a points bonus. For every second stay, guests get 2,000 bonus points toward the 10,000- to 30,000-point requirement for a free night.

Even Ritz-Carlton is discounting: Its Arlington, Va., property is offering weekend rates of $229 that include parking and breakfast that usually add about $40 to the bill.

The price cutting isn’t limited to higher-end hotels. Choice Hotels International, which owns brands including Comfort Inn and Quality, has doubled its airline-mile giveaways for all of its hotels. And Cendant, the owner of Howard Johnson, Travelodge and other brands, is offering discounts of up to 30% at some Howard Johnson hotels through February.

Choice says it’s seeing proposals from corporations that wouldn’t ordinarily book at its low-rent properties. New clients include FedEx and Home Depot. “We’re seeing a lot of companies trading down,” says Wayne Wielgus of Choice. A Home Depot spokesman says the company has boosted its usage of Choice brands because “it’s good business.”

TTG Asia - The PATA UK Chapter will hold a get-together at the Bali Village Stand (AS4370) in the World Travel Market on November 11 at 16.00-18.00.

The meeting will be attended by Indonesia Minister for Culture and Tourism, Mr I Gede Ardika, and the Indonesia Culture and Tourism Board chairman, Mr Setyanto Santosa.

The event is sponsored by many PATA UK Chapter members and supporters such as Advantage Travel Centres, Bawtry Travel, Deeping Travel, Earth Television Network (Munich), Garuda Indonesia, Kuoni Travel, Marco Polo Hotels, RP Marketing, Reed Exhibitions, Regent Holidays, Silverbird Travel, Tourism Authority of Thailand, Trailfinders, Travelbag, Travelpack, Travel Weekly, Travel 2, and Worldchoice UK. For further information e-mail: david@pata.org.uk

East Africa Plots for Marketing Tourism

Marketing East Africa as a single tourist destination! This is what stakeholders in the sector did Tuesday morning at Hotel Africana when they converge to discuss strategies on how to market Uganda, Kenya and Tanzania's invisible export as a block.

According to Moses Okua, the assistant commissioner for tourism, Tuesday's meeting will attract over 45 tourism stakeholders and experts from the East African countries.

"The meeting will discuss strategies to market east Africa as a single tourist destination. There is a consultancy report which will be presented and discussed " Okupa said.

Uganda Tourist Board (UTB) general manager James Babihinguza said there were many advantages accruing from marketing the region as a block. "There is the advantage of complimentary use of resources, for example, Kenya has the ocean and the beaches, Uganda has guerrillas and diverse birds species and Tanzania is renown for its wildlife resources like animals" he said.

2002 Colorado Tourism Conference Draws Record Crowd

The Governor's 2002 Colorado Tourism Conference, held Oct. 23-25, in Grand Junction, saw a record-breaking turnout with more than 400 people in attendance. The conference theme, "Stopping for Directions: Designing a Roadmap for Colorado's Future," was woven into each presentation and breakout session. Gov. Bill Owens spoke at the Thursday luncheon and praised the state's tourism industry.

The keynote speaker, tourism trend expert Peter Yesawich of Yesawich, Pepperdine and Brown, previewed the emerging lifestyle and travel trends in America. Jon Nordmark, president of eBags, touched on the future of technology and the travel industry. The CTO unveiled its 2003 advertising campaign, which launches this winter, and the comprehensive marketing plan for 2003. Rob Perlman, president and CEO of Colorado Ski Country USA, wrapped up the conference with a look ahead to the upcoming ski season.

In addition to these speakers, the CTO board held an open forum that encouraged the tourism industry to ask questions of and share ideas with board members. The conference also included sessions on topics such as: "The Opportunities and Challenges of the Outdoor Hospitality Industry" , "Off the Beaten Path -- Cultural Marketing Techniques" , "Marketing Secrets of the Lodging Industry" , "By Air, By Rail, By Road-Navigating Our Customers to Colorado" , "The How-To's for Merging into the International Market" , "The Politics of Tourism: Charting a Political Course" ,and "Small Businesses -- A Roller Coaster Ride to Success"

Other conference activities included an opening reception, "A Taste of Western Colorado: Art, History and Culture," a Ute Tribal blessing and a "dine around" in downtown Grand Junction. Three outstanding tourism industry leaders were honored at a tourism awards reception. Tourism is one of Colorado's leading industries, employing more than 200,000 Colorado workers in 2000. In 2001, Colorado was one of the few states to experience an increase in marketable travel. Overnight visitors spent $7 billion or $19 million per day.

Chicago-based Lodging Unlimited Inc. is launching the first International Hotel Conference, to be held Sept. 17-19, 2003, at the Le Meridien Beach Plaza Hotel in Monte Carlo, Monaco.

The conference will feature more than 70 international hoteliers as speakers, 21 interactive Think Tank sessions, 10 expert-moderated round table discussions on current industry topics, a trade show and more. Attendance is being limited to keep the ratio of attendees to speakers at about three to one. The conference is expected to attract owners, operators, brands, lending institutions, architects/designers, brokers and attorneys.

Contact: Morris Lasky, e-mail: mlasky@aol.com

Link: http://www.internationalhotelconference.com

Some investors are raising questions about Marriott International and are focusing on the financial state of an off-balance-sheet entity that contributes a significant part of its profits to the hotel-management company.

The entity, CBM Joint Venture L.L.C., has caught the attention of investors because its largest unit, Courtyard by Marriott II L.P., said in a recent regulatory filing that it would not make cash payments for various fees to the owners of CBM — which include Marriott — for at least the fourth quarter. In addition, Courtyard by Marriott II said it might defer interest payments to Marriott on a $200 million loan made to CBM.

The moves are intended to help Courtyard by Marriott II save money in order to pay its nearly $436 million in debts.

Marriott and Host Marriott, a separate, publicly traded hotel company, are partners in CBM, which includes 120 hotels catering to budget business travelers under the Courtyard name. Host owns the 120 hotels, and Marriott, based in Bethesda, Md., manages the properties. Courtyard by Marriott II is made up of 70 of the hotels.

Host and Marriott share in any profits after Marriott's fees and the debt payments are paid. The joint venture's other unit, Courtyard by Marriott I L.P., does not have any public filings, and its financial condition is unclear.

About 25 percent of Marriott's interest income of $94 million in 2001 came from CBM. Marriott had net income of $236 million for 2001. Courtyard by Marriott II earned $1.4 million in the recent quarter, down from $4.5 million a year ago.

Some analysts and investors are concerned that financial problems at CBM and Courtyard by Marriott II could hurt Marriott.

In a research note dated Oct. 21, Steven Kent, an analyst at Goldman, Sachs, wrote that with CBM, Marriott may be setting itself up "to take a charge down the road."

But Marriott's chief financial officer, Arne M. Sorenson, said yesterday that such concerns were exaggerated. When asked if Marriott might take a charge against CBM, he said, "No, the chances are nearly nil." Still, he said, the operating environment for hotels amid the weak economy and slumping travel sector was difficult.

According to the regulatory filing, payments to Marriott that Courtyard by Marriott II expects to halt include a part of the base management fee and all incentive and ground rent fees — its core fees to Marriott. Last quarter, the fees totaled about $8.7 million, according to the regulatory filing. Courtyard by Marriott II is already $58.8 million behind in various fees to Marriott.

Courtyard by Marriott II said in the filing that it would defer payment of the interest until it had more cash on hand. It had $2.6 million in operating cash on Sept. 6, when its third quarter ended.

Mr. Kent wrote in his Oct. 21 note that Marriott had declined to disclose how many hotels in its portfolio were not paying cash interest on Marriott loans.

Mr. Sorenson said Courtyard by Marriott II would pay all but $1 million or $2 million of the interest due this quarter on the Marriott loan. To date, he said, CBM had made all of its loan interest payments to Marriott.

The Courtyard by Marriott II filing also said CBM would have enough cash to meet its mortgage and senior debt payments, which are senior to the Marriott loan.

Short sellers, who benefit from any bad news that hurts the prices of stocks they bet on, have pummeled Marriott shares in recent weeks, partly on concerns about CBM.

Kynikos Associates, a New York firm the specializes in short selling, has said that CBM accounted for 13 percent of Marriott's pretax income last year, excluding special charges, of $542 million, or $69 million. Marriott has contended that when other payments are figured in, the figure is 6 percent.

Either way, Courtyard by Marriott II accounted for about 58 percent, or around $40 million, of the joint venture's total payments to Marriott last year, according to Marriott's 2001 annual filing.

PKF UK: London hotel market failed to see full effect of expected bounce back a year after 9/11

The London hotel market failed to see the full effect of the expected bounce back a year on the from the 11 September terrorist attacks, according to PKF's preliminary figures released today.

London occupancy rose 9.3% to 80.2%, but with last September's occupancy 17% down at 72.4% on 2000, the market failed to claw back the anticipated level of recovery, due in large part to a general reluctance to travel around the anniversary of the 11 September. Average room rate dipped 5.7% to £100.84 leaving rooms yield up only 3.1% at £80.87.

There was better news for regional hotels, which suffered less in September 2001 and managed to recover any lost ground in September 2002. Occupancy increased 2.2% to 76.1%, which is both a bigger margin than the previous month and the biggest single monthly uplift this year, more than correcting the 1.7% drop last September (although not strictly on a like-for-like basis). Despite average room rate falling 1.3% to £63.84, rooms yield rose 0.8%, but not quite recovering enough to compensate for the full extent of UK inflation.

There were encouraging increases in the number of European, US and Japanese visitors, although as a comparison with September 2001, this was not unexpected.

Melvin Gold, managing director of hotel consultancy services at PKF, said: "The figures support our view that occupancy is on the rise and we continue to believe that in London there is an underlying trend that is slightly stronger than the figures show, not fully visible in September due to the weak period around 11 September. There is evidence that trading for the rest of September was stronger than during this period.

"We expect October's pattern to show further growth and gain back further ground against 2001 levels. There are definitely positive signs for the hotel sector - September's London occupancy back up to 80.2% is a move in the right direction, but we have to be cautious, because September is traditionally a month that sees occupancy levels well in excess of 80%. Therefore hoteliers will want to make up much more ground before adopting a more aggressive rate strategy."

PKF is the eighth largest firm of accountants and business advisors in the UK with more than 1,600 partners and staff operating in over 25 offices around the country. Principal services include assurance and advisory; consultancy; corporate finance; corporate recovery and insolvency; forensic; and taxation. The firm has particular expertise in sectors such as charities; technology and e-commerce; hotel consultancy services; medical; professional partnerships; and public sector.

PKF also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF is a member of PKF International, which has more than 8,000 people operating in over 100 countries around the world.

World Class Hoteliers join board of directors of Corinthia Hotels International

French national Raymond Capdevila, 53, a former CEO Asia for the hotel giant Accor, and Swiss national Pierre Boppe, 55, a former CEO of the Hong Kong-based Peninsula Hotel Group, have joined the Board of Directors of Corinthia Hotels International, the Corinthia Group’s hotel management company.

Both appointments are expected to add a wealth of hotel expertise and multinational experience to the continued evolution and growth of Corinthia Hotels International, the Company that manages hotels owned by the Corinthia Group, as well as hotels owned by other Investors.

“Besides investing in and owning hotels, which the Corinthia Group does through other companies, we are also heavily involved in the operational management of hotels through Corinthia Hotels International. We are therefore honoured to have acquired the services of Raymond Capdevila and Pierre Boppe, both of whom have many years experience at the most senior levels in the international hotel management industry”, Corinthia Group Chairman Alfred Pisani said.

Raymond Capdevila is an hotelier of long-standing international repute, having led Accor’s successful drive to develop its various hotel brands in Asia during his tenure. Likewise, Pierre Boppe is a former CEO of the upmarket Peninsula Group, which owns luxury hotels in Asia and the United States. Pierre Boppe remains a Member of the Board of the Peninsula Group, as well as a Member of the Board of Directors of Kuoni, the Swiss tour operator.

Corinthia Hotels International operates some 21 four and five star hotels in 10 countries in Europe, the Mediterranean and Africa. In promoting the hotels under its management, Corinthia Hotels International also has regional sales offices in Madrid, London, Frankfurt, Milan, Moscow, Paris, Amsterdam, Copenhagen, Istanbul, and Malta. The recent appointments to the Board are aimed at ensuring that Corinthia Hotels International is managed by a world-class Board of Directors who can adopt and implement strategies that will develop the Corinthia Brand and position the Company among the leading independent hotel management organisations worldwide.

“We are extremely proud to have joined the Board of this highly active and forward-looking Company and we hope to be able to contribute positively to the continued growth and development of the Corinthia Brand worldwide,” Mr Capdevila and Mr Boppe told fellow Directors at their first Board Meeting in Malta this week. Other members of the Board of Directors of Corinthia Hotels International include the Hon. Karmenu Vella, who is the Acting Chairman, David Woodward, Joseph Fenech, and Gerald Borg.

(AP) -- As many as 26,000 people who recently stayed at Holiday Inns and their sister hotels were charged 100 times what they owed because of a credit processing error.

The glitch eliminated the decimal points in bills for about half the guests who stayed at a Holiday Inn, Holiday Inn Express or Crowne Plaza hotel in the United States from October 24 to October 27, said Carolyn Hergert, spokeswoman for Atlanta-based Six Continents Hotels, which owns the hotel chains.

Hergert said the mistake was made by First Horizon Merchant Services of Englewood, Colorado, which processes credit cards used by hotel guests.

Six Continents said First Horizon had contacted the credit card issuers, which were reversing the billing errors.

Overcharged guests will get two free nights at any hotel operated by the three chains, Hergert said.

Millennium UN Plaza, Singapore Tourism Board to promote Singapore flavour in New York

Local Singapore menu will be featured in November during Singapore Food Festival

The Millennium UN Plaza Hotel New York and the Singapore Tourism Board (STB), together with Violet Oon, will host a food festival, from November 6 through November 29 in New York City.

“This is a great opportunity to for us, as a Singapore hotel group, to do our bit to promote Singapore to other parts of the world,” said Mr Vincent Yeo, Chief Operating Officer, Millennium & Copthorne International Limited (MCIL). MCIL is part of Millennium & Copthorne Hotels plc (M&C), the London-listed hotel arm of Hong Leong Group Singapore. It is the Republic’s largest international hotel group. Millennium UN Plaza is part of its 91-hotel group. (Refer to Annex A for details on M&C, and Annex B for details on Hong Leong Group)

The festival, which will celebrate the diverse cuisine of Singapore, is taking place at the hotel’s critically acclaimed restaurant, the Ambassador Grill. The menu will be prepared by the Ambassador Grill’s own sous chef, Alex Hing, and presented by Violet Oon, one of Singapore’s most famous food personalities. American guests will be able to taste signature Singaporean favourites such as Laksa Lemak and Beef Rendang.

“We are excited about partnering with Millennium UN Plaza Hotel to showcase the diverse flavours of Singaporean cuisine. This Singapore Food Festival offers New Yorkers the chance to savour a cuisine not normally available, and to taste why Singapore is a must-visit destination,” Randall Tan, vice president, Eastern USA, for the STB, said.

Apart from the Ambassador Grill, New Yorkers can also get a taste at the James Beard House on November 13, where Violet and Alex will headline a special Singapore Food Festival dinner. Besides this, Violet will also be leading a cooking demonstration at the Williams-Sonoma New York flagship store on November 10. . (Refer to Annex C for details on James Beard House and Annex F for special menu)

Hailed as one of the foremost exponents of Nonya food, Violet has more than thirty years of culinary mastery. Trained in Nonya cooking since the age of 15 by relatives, her first job was food critic for the now defunct New Nation. Violet has since penned numerous cookbooks, launched food publications and was selected as Singapore’s Food Ambassador to the USA in 1998. (Refer to Annex D for details on Violet Oon)

Alex Hing, born in San Francisco, boasts just as impressive a resume. Having worked at some of the top American hotels, including the Fairmont, Mark Hopkins and the Waldorf-Astoria, he soon found his way to the Millennium UN Plaza Hotel, where he has stayed for 19 years. A master in tai chi, Alex translates the philosophy of balancing yin and yang when creating his extraordinary dishes. He strives to achieve the equilibrium between flavours and textures. (Refer to Annex E for more information on Alex Hing)

Millennium UN Plaza New York is located at 1 United Nations Plaza, New York, close to the UN and is popular with the international group of travellers, many of whom go to the city for UN related events and conferences.

“Violet Oon is a leading light of Singaporean cuisine. We are thrilled to welcome her into the Ambassador Grill. We are also proud to have Alex Hing, our resident sous chef, partner with Violet to prepare the selections on this truly unique menu,” Ashish Verma, Director food and beverages, Millennium UN Plaza Hotel. (Refer to Annex G for special menu at Ambassador Grill)

For more information, please call the STB at (212) 302-4861 or log onto www.visitsingapore.com

Millennium & Copthorne Hotels plc (M&C), which is listed on the London Stock Exchange, has a stable of 91 hotels in 17 countries. It is the 35^th largest hotel group in the world and is ranked 59^th in the list of “ Britain’s Most Admired Companies”. The majority of its hotels operate under the ‘Millennium’ and ‘Copthorne’ brands. The Group also owns several chain-managed hotels including the Seoul Hilton in South Korea, Grand Hyatt Taipei, The Regent in Kuala Lumpur, Nikko Hotel and JW Marriott in Hong Kong, Orchard Hotel Singapore, The Heritage Hotel in Manila, Millenium Hilton in New York and the trademark Plaza.

(Reuters) - No. 2 U.S. hotel owner FelCor Lodging Trust Inc.(FCH) on Wednesday posted quarterly results at the bottom end of its lowered expectations, blaming slow travel, the weak economy and a looming war with Iraq, and slashed its fourth-quarter outlook.

"We keep pushing back the so-called recovery," President and Chief Executive Tom Corcoran said in an interview after the results were released.

FelCor, based in Irving, Texas and the second-biggest U.S. hotel owner after Host Marriott Corp (HMT), reported a third-quarter net loss of $13.8 million, or 26 cents per share, compared with a loss of $31.9 million, or 60 cents per share, in the year-ago quarter.

Recurring funds from operations, a key measure of real estate investment trust performance, were $29.2 million, or 44 cents per share, compared with $33.1 million or 50 cents per share, a year ago.

FelCor had warned on Sept. 25 that a slower-than-expected travel rebound had left third-quarter results below forecast and said that funds from operations would be between 44 cents and 48 cents per share in the third quarter

At the time, analysts had expected 53 cents per share funds from operations in the quarter.

The company, the largest owner of Embassy Suites hotels and an owner of Hiltons and major market Holiday Inns that are managed by hotel operators, forecast on Wednesday that fourth quarter funds from operations would be 22 cents to 27 cents per share, down from its prior estimate of 34 cents to 40 cents per share and below the Thomson First Call consensus estimate of 36 cents per share.

Revenue was $331.6 million in the third quarter, down from $337.8 million a year earlier, and revenue per available room fell 2.5 percent. Occupancy rose 2.2 percent, but room rates dropped 4.6 percent.

"We clearly have got the occupancy back today, but what we are lacking is the average daily rate," Corcoran said, adding that fear of a war with Iraq was slowing business travel.

Corcoran said the company had not yet set a fourth quarter dividend. The company has paid a 15-cent dividend each quarter this year.

Third quarter earnings before interest, tax, depreciation and amortization fell to $77.1 million from $80.1 million, FelCor said, forecasting $62 million to $66 million in the fourth quarter.

Shares of FelCor gained 43 cents, or 4 percent, to $11.09 on the New York Stock Exchange before the announcement.

TravelWeeklyEAst.com - Already up on last year’s post-911 performance, the World Travel Market trade show will be about 12 percent larger this year.

TravelWeekly US reports a total of 147 new destinations or companies will join 5,000 other exhibitors Nov. 11 to 14 at the new ExCeL exhibition center in the British capital's Docklands district.

Fiona Jeffery, group exhibition director for World Travel Market said promotion by, and solidarity among, travel providers is more important than ever given the current international climate.

The one possible cloud on the show's otherwise rosy horizon, possible U.S. or international military action in Iraq, has organizers unruffled.

"Having gone through 9-11 at World Travel Market last year, we've learned these situations just have to be dealt with," said Jeffery.

"This is a strong-enough event, and the industry is resilient and mature enough to know the impact world events have on their businesses.

"The message we go out with, under any circumstance, is that the industry needs to pull together, and World Travel Market is an event that enables them to do that."

Hilton Brands Post Strong Third Quarter Development Activity

( Business Wire ) - Hilton(R) Brands Account for Nearly 21 Percent of New U.S. Hotel Development Pipeline

Hilton Hotels Corporation (NYSE: HLT) today announced that its brands opened 38 hotels in the 2002 third quarter, almost exclusively through franchise agreements and management contracts, accounting for 21 percent of the 176 U.S. hotels(a) opened during the period. As of September 30, 2002, Hilton's brands led all other hotel companies in number of hotels in the active pipeline within the U.S., accounting for 20.8 percent of all new projects and 19.4 percent of all rooms in the pipeline, according to Lodging Econometrics, the industry authority for hotel real estate.

Highlights of Hilton's development activity during the quarter include the opening of the 150th Hilton Garden Inn(R), only six years after the brand was launched; the opening of 11 properties west of the Mississippi, where the Hilton Family of Hotels is placing more development focus; and 10 properties converted to the Hilton Family of Hotels.

In addition to the 38 hotels opened during the quarter, the company added one timeshare property representing 70 rooms.

"We remain on target to add 145 hotels and 18,000 rooms to our system in 2002," said Tom Keltner, president--brand performance and franchise development group, Hilton Hotels Corporation. "And just as our brands continued to gain market share from an operations viewpoint in the 2002 third quarter, we also gained market share on the development side of our business."

Keltner attributed the solid development results in the face of a challenging economy to the strength of the Hilton Family of Hotels. "Regardless of the phase of the economic or real estate cycle, strong hotel brands win," he said. "Developers and their lenders tend to migrate to strong brands in more difficult economic conditions because, historically, they have performed better, and this trend certainly holds true today. The high consumer acceptance of our brands, our powerful HHonors(R) guest reward program, the integrity of our brands, and our ability to cross-sell between our brands are seen as compelling advantages by developers and lenders alike.

"While financing is more difficult to obtain and the number of development projects is predicted by industry consultants to be at or near the bottom of the hotel real estate cycle, we see continued interest in developing the Hilton brands, as well as increased interest in hotel owners wanting to convert to our brands," he said.

Southeast Asia fights back to revive battered tourism industry

(AFP) Southeast Asia's tourism industry, a pillar of regional economies, is undergoing its worst crisis in years following the bloody terrorist attack on its most famous beach paradise Bali.

The October 12 blast on Indonesia's "Island of the Gods," which killed more than 190 people, dealt a blow to the multi-billion-dollar tourism sector just as it was rebounding from the aftermath of the September 11 attacks in the US.

Leaders of the Association of Southeast Asian Nations (ASEAN), who will hold their annual summit in Phnom Penh next week, will seek to restore confidence by forging stiffer anti-terrorism measures and sealing a tourism pact to woo travellers back to the region.

According to a draft obtained by AFP, the ASEAN Tourism Agreement spells out plans to harmonise visa issuance to foreigners and to gradually reduce all travel barriers to facilitate travel into the region.

The 10-member grouping aims to promote ASEAN as a single tourism destination in the international market, launch joint marketing programs and introduce "thematic" tour packages to specific areas of interest.

But the core theme of the pact is to boost intra-regional movement by phasing out travel taxes and extending visa exemptions to ASEAN's 500 million citizens.

It aims to establish an integrated network of tourism and travel services, and beef up security by increasing cooperation among law enforcement agencies.

The agreement pledges to progressively liberalise air services, encourage commercial arrangements among ASEAN airlines and promote cruising, travel by ferries and leisure boats.

Malaysian Tourism Minister Abdul Kadir Sheikh Fadzir said the decision to deepen tourism cooperation was made two years ago but the Bali tragedy had given it more urgency.

The region's tourism industry last faced multiple problems in 1997 and 1998, when smoke from Indonesian forest fires turned skies in the region gray and ASEAN economies were rocked by currency turmoil.

"Bali is just one thing but there will be other things -- the haze, economic recession which is even worse especially in countries which are our leading tourism targets. We must be quick to make changes," he said.

The region has been hit by mass cancellations after the Bali attack, with many countries including Australia and Britain warning their citizens of heightened risk alerts in most ASEAN countries.

Even predominantly Buddhist Thailand, which has a reputation as a safe haven, was not spared as its resort island of Phuket has been identified by Britain, Australia, Japan and others as a possible terrorist target.

The Bangkok-based Pacific Asia Travel Association (PATA) says it is premature to conclude that tourists are writing off the region entirely.

"People are adopting a let's wait-and-see attitude. Everything is hanging on the thread," John Koldowski, PATA Strategic Intelligence Centre's managing director, told AFP.

"Nobody knows when and where the next big thing is going to happen, be it another terrorist attack or an economic slowdown or a natural catastrophe.

"But I think people are becoming more aware that no matter where you are, the fingers of terrorism can reach you."

Koldowski said it was the right move for ASEAN to turn inward to revive the industry but it must not compromise national security in its rush to faciliate movement within the region.

According to PATA statistics, 41 million tourists visited ASEAN last year, representing half the total visitors to Asia, with intra-regional travellers accounting for 38 percent of the traffic.

Malaysia, Thailand, Singapore and Indonesia were among the top 10 destinations in Asia-Pacific but the Bali blast and a looming US-Iraq war are bound to hurt their medium-term prospects, officials say.

Indonesia, which has armed itself with sweeping powers including the death penalty to fight terrorism, is pressing ahead with plans to launch EcoTourism Year 2002.

Malaysia launched two tourism funds totalling 600 million ringgit (158 million dollars) to develop the industry and plans to set up a theme park with Hollywood giant Universal Studios.

Vietnam plans to turn an area around Cam Ranh Bay, a former US military base, into a series of eco-friendly beach resorts.

(VOA) - Thailand's tourism industry has reacted swiftly to allay fears that the country's resorts are not safe following the October 12 terrorist attack in Bali, Indonesia. The move comes after several, mostly Western, countries issued travel warnings covering Southeast Asia and named Thai tourist spots, including the popular tourist destination of Phuket.

Thailand's tourism industry has stepped up efforts to reassure visitors of adequate security after several nations announced upgraded travel alerts, warning of possible terrorism attacks.

The travel warnings were issued after the deadly October 12th bombing on the Indonesian resort island of Bali, that killed nearly 200 people, mostly foreign tourists. Local operatives of the al-Qaida terrorist network have come under suspicion.

Thai Foreign Minister Surakiart Sathirathai has criticized the alerts by Britain, Denmark, Australia, Portugal and Japan. He says the advisories are vague in describing the increased risk of terrorist threats and have been causing panic.

Foreign Ministry spokesman, Isorn Pocmontri, says "rather frustrated with these warnings which we have found to be based upon intelligence rather than reality. Thailand has stepped up its security measures to ensure maximum public security and hopefully this will convince the travelers that we are safe and sound."

The travel warnings come as Thailand's tourism industry is gearing up for the peak Christmas-New Year period.

The tourism industry contributes some five billion dollars to the national economy, from the more than 10 million visitors expected to arrive by year's end. The country normally expects more than one million tourists in December alone.

The Tourism Authority of Thailand, or TAT, has stepped up its efforts to convince overseas travel agents that sufficient security is in place. TAT's Mana Chovthum says "we are quite sure for Thailand as a whole the security problem is under control now and should be no problem for any tourists to come to Thailand."

Tourist police patrols have been beefed up with Thailand adding more local police as well as Thai Army soldiers in major tourist venues. Security forces have been deployed at 85 oil depots and six refineries nationwide after U.S. intelligence warnings such sites could be targeted by terrorists. Increased security measures have also been implemented at airports.

For the major resort hotels, the warnings have triggered a wave of concerned calls, raising fears of widespread cancellations. But so far cancellations have been limited mainly to long haul travelers from Europe.

Director of Marketing and Sales for Le Meridien Hotels and Resorts in Thailand, Stephane Laguette, says he is angered that governments are not giving travelers and the tourism industry better information about possible threats, leaving everyone feeling uncertain. "Personally, I think you mention everything or you mention nothing," he says. "If there is the information and there is a risk, let's say exactly what and where."

Mr. Laguette says since the September 11, 2001 terrorist attacks in the United States, fewer travelers have booked vacations in advance. And since last Month's post-Bali warnings, bookings to the Le Meridien resorts here have almost stopped.

Newsletter - November 4, 2002

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