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Newsletter - November 6, 2002

   

"The Tourism Industry Failing to Give Visitors the Caring Service They Want;" Horst Schulze,   Former President of Ritz-Carlton Hotel Co

The Sun News  -  The tourism industry is failing to give visitors the caring service they want, which is the most crucial part of the business, a worldwide hotel leader said. 

Giving tourists a visit with no mistakes and timely service with a smile will lead to satisfied customers who not only return, but recommend the hotel to their friends, said Horst Schulze, former president of Ritz-Carlton Hotel Co. But too many companies don't ask customers what they want or fix the problems that turn them off, he said. 

"Caring is your key product," Schulze told about 90 attendees at a tourism conference Friday at Kingston Plantation. "What you have should be what they want. That's marketing." Schulze, who grew Ritz-Carlton from a one-hotel operation to a company with 40 properties, challenged the participants to break their way of thinking and start tailoring their operations to meet customers' desires. 

Average customer satisfaction rates are between 62 percent and 65 percent, a level some properties boast of but one Schulze calls "pathetic." The Grand Strand has struggled to improve its customer service amid a tight labor market. During the peak summer season, unemployment hovers at about 3 percent and international students help supplement the local work force. 

Blaming a tight labor market isn't an excuse Schulze accepts for subpar service. Excellent customer service will come if managers empower their employees and make them want to work at the property, he said. 

"Come on, dummy. You hired them," Schulze said. "One of your processes is off. That's why they [the employees] are off." Employee turnover in the hospitality industry is 120 percent a year, Schulze said. At Ritz-Carlton, annual turnover among the company's 20,000 employees was 24 percent under Schulze's leadership, he said. 

Instead of improving service and fixing the cause of customer complaints, many hotels stick with the "horrible tradition" of cutting costs to increase profits, Schulze said. 

"The first thing you do is take the flowers away," he said. 

But that's not the worst mistake some in the industry make. "Don't promise what you can't do," Schulze said. 

Michael Poynter, vice president at the Radisson Plaza Hotel and one of the few local conference participants, plans to keep Schulze's advice on customer service in mind as he starts next month hiring more than 100 workers for the hotel, which is set to open in January. 

"He's talking about a lot of real truths, basics that some people in the industry don't understand," Poynter said. "He understands what service is about." 

MORE INFO: Horst Schulze, named the "corporate hotelier of the world" by HOTELS magazine in 1991, was the keynote speaker Friday at the "Managing and Marketing Tourism in the Inter national Environment" conference at Kingston Plantation. 

The conference, which concludes today, is sponsored by Coastal Carolina University and the Myrtle Beach Area Hospitality Association with a grant from the U.S. Department of Education  

Thistle takes Orb to court over £14m shortfall, Orb tipped for £50m counter claim

e-Tid.com Thistle Hotels and Orb Estates are squaring up in court, despite Orb’s confirmation that it is considering a move for the 21 Thistle properties not included in its £600m sale-and-leaseback deal struck this March.

Reports in the FT and Times say that Thistle has only received £586m of the £600m, with orb allegedly pursuing a counter claim on the back of suggestions that it paid £50m more than the net asset value of the portfolio.

The takeover rumour hit the pages of the weekend broadsheets, forcing Thistle to issue a denial Monday that BIL, which owns 46% of Thistle, was looking to sell its stake. Thistle’s statement however did say that it was aware that one major BIL shareholder was looking to sell up. The FT today claims that Orb is looking to pick up a 22% stake in BIL currently owned by Quek Leng Chan’s Camerlin. If Orb’s bid succeeds, it will take Quek Leng Chan’s place on the Thistle board.

In the share columns, Tempus in the Times suggests that ‘Orb’s move may flush out interest from a bidder with more chances of concluding a deal on friendly terms.’ It advises shareholders to ‘hold.’

News@PATA

IN MEMORIAM: BILL NEWPORT

PATA regrets to announce that travel industry stalwart Mr. Bill Newport, 91, passed away today in Hong Kong SAR after a long illness. Mr. Newport began his travel career in 1938 when he joined Pan American World Airways as a flight engineer. During the Pacific War, he ferried military aircraft from the U.S. to Asia, and spent much time in Kunming and Chongqing, China (PRC). From 1944 to 1947 he worked with the China National Aviation Corp., then a joint venture between Pan American and the Chinese government. In 1954, Pan Am transferred Mr. Newport and his family to Hong Kong SAR. Though he retired from the airline in 1969, he remained active in the industry as a travel agent. Mr. Newport served as Vice President for PATA in 1977 and 1978. He received the PATA Award of Merit in 1978, and in 1981 was awarded Life Membership, PATA’s highest honour. In 2001, Mr. Newport attended the PATA Annual Conference in Kuala Lumpur, where he was named in the Association’s 50th Anniversary Roll of

Honour. "Mr. Newport devoted decades of time and energy to Pacific Asia tourism and to our Association," said Mr. Peter de Jong, PATA President and CEO. "He will be remembered as a great personality who left an indelible impression on PATA."

INVITATION TO MICE PROFESSIONALS

The inaugural PATA-CEI Asia Pacific business event ("MICE") survey is currently online at http://www.oneworldi.net/ceipata/micesurvey.asp. The aim of the survey is to assess the health of the corporate business event sector in the Pacific Asia region. PATA encourages all industry operators associated with the business event (MICE) industry to fill out the online survey. For further information e-mail johnk@pata.th.com.

FIND OUT ABOUT CONFERENCE AND MART AT WTM

PATA Managing Director-Events, Ms. Sheila Leong, will attend WTM in London, November 11-14, to respond to queries about the 2003 PATA Annual Conference and the 2003 PATA Travel Mart. Conference will bring together 46 distinguished speakers from 15 countries in Bali, April 13-17. The Mart (October 1-3, 2003 in Singapore) will cater to a full range of buyers and sellers of mainstream tourism products as well as niche suppliers and buyers from segments such as scuba diving, adventure travel, student travel, golf tours, spiritual travel, honeymoon, health and spa, to name just a few. Pre-book a WTM appointment with Ms. Leong at sheila@pata.th.com. Or visit the PATA booth (AS4044) in the Asia Pacific zone.

REDUCING CONFLICT THROUGH TRAVEL

PATA Annual Conference keynote speaker Professor Tommy Koh believes that tourism should play a heightened role in enhancing understanding and reducing misunderstanding and conflict. In his keynote address for the Conference, Professor Koh aims to promote inter-cultural understanding and show how all religions and civilisations share common values. For Conference programme details visit www.pata.org.

PATA CONFERENCE JUST 1,500 WORDS AWAY

Young Tourism Professionals who are employees or students of PATA member organisations are invited in 1,500 words or less, to describe their vision for Pacific Asia tourism in 2025. The winner will receive a round-trip economy class ticket to Bali on Singapore Airlines, four nights accommodation at the Sheraton Nusa Indah and full PATA Conference registration. The Conference takes place April 13-17, 2003. The deadline for submissions to PATA headquarters in Bangkok is December 13, 2002. Please contact Mr. Aaron Tan at aaron@pata.th.com for essay guidelines and a registration form.

PATA RELEASES TASK FORCE REPORT

PATA this week releases the PATA Task Force Report on Banten and Lampung Provinces of the Republic of Indonesia. The 84-page study focuses on issues such as planning for sustainable tourism in Indonesia at a time of decentralisation. The report will be formally presented to Mr. I Gede Ardika, Indonesia’s Minister for Culture and Tourism at WTM in London. For further information e-mail: kcsim@pata.th.com.

PATA MEMBERS ELIGIBLE FOR DISCOUNT

PATA members are entitled to 15 percent off the GlobalHotelNetwork.com e-newsletter. Members will receive 15 Pacific Asia editions of the newsletter which offers in-depth profiles of hospitality markets in the PATA region. For subscriptions received before November 15, 2002 members will receive Pacific Asia editions for November and December at no extra charge. Visit www.GlobalHotelNetwork.com. Or e-mail: harp@globalhotelnetwork.com.

PATA STRATEGIC INTELLIGENCE CENTRE WORLDWATCH

Following the October 12 tragedy in Bali, the PATA Strategic Intelligence Centre reports the following market and security trends:

** A large downturn in demand for Bali and Indonesia has led to hotel occupancies tumbling. Some Bali hotels report single-digit room occupancy rates. Forward bookings to December are reasonably firm. However, some markets -- notably Australia -- are adopting a wait-and-see position.

** There has been a partial upturn of business to non-Indonesian resort destinations such as Thailand, Malaysia and the Philippines -- destinations which are about to embark on their high-seasons. The upturn is partially due to the switching of business from Indonesia.

** Leaders from the nations which make up  the Association of Southeast Asian Nations (ASEAN) are meeting in Phnom Penh, Cambodia, November 3-5. While many issues will be discussed, security matters have come to the forefront.

** Philippine Secretary of Tourism, Mr. Richard Gordon -- with the full support of President Gloria Macapagal-Arroyo and the Philippine government -- has invited senior officials from Pacific Asia destinations to attend a special security meeting in Manila, November 8-9.

** Travel advisory warnings placed on countries in Southeast Asia are deflecting non-essential travel business away. Advisories have angered some inbound operators who say warnings are too general with issuing governments too slow to modify, let alone lift them. (Travel advisories make it difficult -- and sometimes impossible -- for travel operators to receive insurance cover for their clients.)

PATA EXECUTIVES TO VISIT CHINESE TAIPEI

PATA executives will address the PATA-ITF Travel Industry Forum in Chinese Taipei on November 25 and 26. PATA President and CEO, Mr. Peter de Jong will deliver a presentation entitled, "The State of Play of Travel & Tourism in Pacific Asia." PATA Director-Communications, Mr. Ken Scott, will talk on "Effective PR & Communications for the Travel Industry," and "Crisis Communications." PATA Consultant, Mr. Kim Kwang Nam will deliver presentations on sustainable tourism development in Korea (ROK) and "Carrying Capacity and National Parks and Heritage Sites." For further information or to attend, e-mail the event moderator, PATA Director-Northeast Asia, Mr. Stephen Yong. E-mail: stephen@pata.th.com.

Shanghai:  Alarm rings over hotel surplus

China Daily -  SHANGHAI: Chinese and overseas businesses have been rushing into Shanghai's hotel industry, attracted by the city's rosy economic prospects, but local tourism officials and industry insiders warned of a "surplus."

"The city's accommodation supply has already slightly exceeded demand, especially for star-rated hotels," said Dao Shuming, deputy-director of the Shanghai Municipal Tourism Administration Commission.

According to Dao, too many businesses have filed applications to build hotels in Shanghai in recent years, especially since hearing the news that Shanghai had applied to host the World Expo 2010.

"What the government can do now is tell them calm down a little bit," said Dao.

Shanghai has now 304 star-rated hotels, with 15 five-star, 27 four-star and 110 three-star hotels, according to commission statistics.

Competition fierce

The hotel industry is one of the country's most open sectors, with the first luxury hotel run by an overseas business set up in Beijing in 1982.

Beijing and Shanghai have the country's most developed luxury hotel industries.

But the competition in Shanghai, with its "incomparable" commercial atmosphere, may be the most popular on the mainland, said Xiao Xing, an official with the Shanghai Tourism Association, a non-governmental organization that co-ordinates the local hotel business.

Earlier this month, Four Seasons Hotels and Resorts, one of the world's leading operators of luxury hotels, formally opened its first mainland hotel last week in Shanghai.

The Canadian company holds 21.21 per cent of the stock in the new hotel, representing an investment of around 160 million yuan (US$19.35 million).

Four Seasons chief executive Isadore Sharp, who flew to Shanghai to attend the opening ceremony, said the company is seeking more opportunities in China.

"We are seeking such opportunities in Beijing and perhaps in Pudong (in Shanghai)," said Sharp.

The company is the 16th international hotel operator to enter Shanghai.

Shanghai now has hotels run by leading operators such as the United States-based Starwood and Hyatt, Britain-based Six Continents, France-based Accor as well as the Canada-based Four Seasons, according to Dao Shuming of the city's tourism authority.

"This may be a record among big cities worldwide," said Dao. Another eight or nine international hotel operators are applying to enter Shanghai, added Dao.

Starwood Hotels and Resorts, which set up its first Sheraton Hotel in the city in 1986, established its third luxury hotel brand - Westin in Shanghai - earlier this month as a further step into the Chinese luxury hotel market.

Local officials and industry insiders were in no doubt about the city's market potential for luxury hotels as the municipal government made clear earlier this year that Shanghai aims to become an "international economic, finance, trade and shipping centre" by 2015.

If the city wins its bid to host the World Expo 2010, the market potential will be "enormous," said Dao.

But Dao also predicted that market forces would not change the tendency towards a "slight surplus" of luxury hotels over the next few years.

"The competition will no doubt be fierce," said Dao.

Currently, overseas hotel operators dominate Shanghai's luxury hotel industry, according to Dao.

In terms of annual turnover, all of the city's top five hotels are managed by overseas businesses, Dao said.

Local hotel operators - including the country's largest hotel operator, the Jinjiang Group - are now seeking co-operation with their overseas counterparts under the increasing market pressure.

The Jinjiang Group, based in Shanghai, manages more than 50 hotels around China.

Though international hotel giants are still emphasizing luxury hospitality in Shanghai, local ordinary star-rated hotels are struggling even harder to survive.

The Shanghai Tourism Association said two-and three-star hotels in Shanghai, which accounted for around 80 per cent of the city's star-rated hotels, witnessed an even lower occupancy rate compared to four and five-star hotels.

Shanghai's luxury hotels increased their prices by more than 10 per cent on average during the first half of this year and achieved an average occupancy rate of over 60 per cent, with even around 80 per cent in some joint-venture five-star hotels in Shanghai's Pudong New District.

In contrast, two and three-star hotels in Shanghai have cut their prices continuously in recent years but they still witnessed an overall drop in profitability in the first half of this year, with their average occupancy rate 6 per cent lower than that of luxury hotels.

Another piece of bad news for ordinary star-rated hotels is that overseas hotel businesses are also preparing to join the competition.

Accor and Six Continents have already outlined plans to establish chains of three-star hotels in Shanghai within two years.

Potential exists

Despite the cruel competition among Shanghai's star-rated hotels, non-star guest houses, especially those provided by local hotel chains, still have reasons to smile.

Compared to an occupancy rate no more than around 60 per cent in star-rated hotels, local guest-house chains achieved an occupancy rate of more than 90 per cent this year, said Xiao Xing of the local tourism association.

According to Xiao, the municipal government is also encouraging the development of guest-house chains to provide "economical but quality-assured" services for independent travellers or ordinary business people.

Jinjiang Inn, a local non-star hotel group, has opened nine franchised hotels that charge less than 150 yuan (US$18) a night for a standard room.

Xu Zurong, general manager of the group, said that the company planned to establish another 40 such franchised hotels in Shanghai, as well as in neighbouring provinces such as Jiangsu and Zhejiang, by 2005.

Fang Fujiang, a director with the company, said that it will stick to its "low-price" strategy while ensuring quality service.

Dao Shuming urged the further development of such guest-house chains to contribute to the city's "diversified" accommodation network.

Asian nations outraged by travel advisories

(AP) -- A tropical beach with nobody on it may be the stuff of travelers' dreams, but it's a nightmare for many Asian nations after the Bali bombings stirred fears of more terrorist attacks in paradise.

Tourists fled the idyllic Indonesian resort after the blasts killed nearly 200 people last month, and many are avoiding other regional destinations that have seen troubles, including Philippine islands where foreigners were kidnapped and parts of South Asia hit by bloodshed and political tensions.

Asian countries, which consider tourism a major source of cash and jobs, say wealthy Western nations are making the situation worse by issuing advisories that scare people away from safe destinations.

Over the weekend, for example, U.S. State Department cautioned its citizens about what it called the risk of terrorist actions in Southeast Asia, urging them to "remain vigilant with their personal security and to exercise caution."

"They issue advisories based on the first information they receive, not on exclusive intelligence, which is causing panic," said Thai Foreign Minister Surakiart Sathirathai.

The leaders of the 10 Association of Southeast Asian Nations -- meeting in the Cambodian capital Phnom Penh, along with China, Japan, South Korea, India and South Africa -- issued a statement Monday asking for a halt in future advisories unless there is concrete evidence of a terrorist threat.

"We call on the international community to avoid indiscriminately advising their citizens to refrain from visiting or otherwise dealing with our countries, in the absence of established evidence to substantiate rumors of possible terrorist attacks," the statement said.

The ASEAN nations also plan to sign a new deal promoting tourism -- for example by easing visa requirements and boosting air services -- on Monday.

For now, many are just worried about how much business they will lose and how long it will take to bounce back.

"We have huge losses every day," grumbled Roberto S. Jotikasthira, first vice president of the Association of Thai Travel Agents.

Dozens of European tour groups have been canceling visits, including some big ones like planned tours by 400 people from Italy and 1,200 from Portugal, he said.

"It's a big snowball effect," said John Koldowski, managing director of strategic intelligence at the Pacific Asia Travel Association. He called it "unfair to brand a whole country or a whole region" with travel advisories that can needlessly frighten tourists.

"Pick any country in the world and I'm sure I can find you a dark alley that will get you into trouble," Koldowski said.

Although the association is holding its annual meeting next year in Bali, which it hopes will lend the resort island some support, it had to cancel a sustainable tourism conference in Western Java, Indonesia, just days after the Bali bombings.

Unfair

"We were all set to proceed with that, but a lot of our speakers, from the U.S., the U.K. and Australia were advised not to go," Koldowski said.

The U.S. travel advisory, similar to warnings issued by nations in Europe as well as Japan and Australia, noted "the potential for terrorist actions against U.S. citizens abroad, specifically in the Southeast Asia region."

Many in the industry are furiously noting that no such sweeping blanket warnings get put out when terrorists have struck elsewhere -- for example when the IRA bombed targets in Britain and Ireland.

"It's a bloody joke," said Luzi A. Matzig, whose Asian Trails travel agency in Bangkok promotes visits to remote areas of Southeast Asia.

"You have no travel advisories for Spain, where Basque terrorists stage attacks, but you have them for Laos, Burma and Thailand, which are among the safest places in the world for tourists."

Asia-Pacific tourism facing tough times after Bali bombing: survey

(ABC) - A survey shows travellers are increasingly nervous about visiting the Asia-Pacific region following the Bali bombings and industry experts warn rebuilding confidence will be a slow and expensive process.

The tourism industry is one of the region's largest sectors, generating receipts of almost $180 billion a year and employing hundreds of thousands of people, the Pacific Asia Travel Association (PATA) says.

But analysts, while reluctant to put a figure on how much the scare could cost, fear the Asia-Pacific will be seen as a terrorism hotspot and tourists will choose to go elsewhere after the October 12 bombing in Bali which killed almost 200 people, many of them holidaymakers.

A survey by the International Air Transport Association in October showed 42 per cent of business travellers in Europe, North America and the Asia-Pacific were cautious but would still travel around the region if necessary.

The figure was almost double the 22 per cent recorded in June, highlighting the fears prompted by the attack on the Indonesian resort island.

John Koldowsli, managing director of Bangkok-based PATA's strategic intelligence centre, says the immediate casualties among tourist resorts were obvious.

He says tourism in Bali and the rest of Indonesia had been devastated, along with other countries in the region seen as under threat from Muslim extremists, such as the Philippines and Malaysia.

But Mr Koldowski says other destinations like Thailand, Cambodia and Laos appeared to be experiencing an upsurge in tourist numbers.

He says it was too early to say if tourism in the whole region had been affected by Bali.

"Perception is the key," Mr Koldowski said.

"The real telling time will be in the next month or two when everyone's waiting for what's next - will there be a spate of attacks in the region or will there be a war in Iraq or will there be something else happen?

"Everyone's bracing themselves for the next big thing, whenever it may come," he said.

Federal Tourism Minister Joe Hockey had no doubt the world now saw the Asia-Pacific as a more dangerous place to travel, although he was keen to distance his country from the troubles.

"Unfortunately, the rest of the world sees the event as the death of 200 tourists in our region and we hope the rest of the world would understand Australia is an open and friendly and welcoming place to do business and to come and visit," Mr Hockey said.

Australian Tourism Taskforce chairman Chris Brown says the Bali bombing showed no region was immune to terrorism.

"The fear is that the Japanese, Americans and whoever will decide to stay away from the whole region," Mr Brown said.

"But they're running out of places they can stay away from.

"I'd hate to say we're becoming more resilient to this, but we are."

He says he had seen no evidence that tourists believed the region was susceptible to terrorism and the industry's task was to get this message across.

"Unfortunately tourism marketing is an expensive business but that's what we've got to do," he said.

Mr Koldowski says it had taken two years for tourist numbers to recover after tourist scares following the massacre of holidaymakers in Luxor, Egypt, and an attempted coup in the Pacific nation of Fiji.

"I don't think it'll take that long here," he said.

However, he says tourist numbers would not begin to recover until Western nations lifted the travel advisories they imposed on many nations in the region following Bali.

"These advisories can be a bit of a knee-jerk reaction, they're quick to go on but slow to update and even slower to come off," he said.

Dubai expects 25 percent increase in tourists to 4.5 million by end-2002

(AFP) - The Gulf leisure hub of Dubai expects to register a 25 percent increase in the number of tourists to 4.5 million by the end of 2002, the emirate's top tourism official said in comments published Monday.

"We have achieved a 26.5 percent growth during the first six months of the current year," to 1.91 million tourists, Khalid bin Sulayem, Dubai's tourism board chief said, quoted by Gulf News.

"By the end of this year we expect to reach 4.5 million hotel establishment guests and we are gearing up to host in excess of five million by next year," compared to 3.6 million in 2001, a rise of 25 percent, Sulayem said.

With oil resources running out, Dubai, part of the federation of the United Arab Emirates, has launched a multi-billion dollar drive to corner the market as the Gulf's premier tourist destination.

It has focused on resorts and shopping, and currently boasts more than 280 hotels for a population of just 900,000.

Dubai's Crown Prince Sheikh Mohammad bin Rashid al-Maktoum has projected a sixfold growth in tourism to the Emirates within the next decade and unveiled a series of mega-projects to cope with increased demand.

To accommodate the predicted tourist influx, Dubai airport is undergoing a 2.5-billion dollar expansion, to hike annual capacity to 30 million passengers by 2010 and 62 million passengers by 2020.

If growth continues into the second decade, the Gulf city-state plans to build a totally new airport near the free zone of Jebel Ali, 50 kilometres (30 miles) out of town.

Hotel expert predicts a buoyant future for Abu Dhabi’s hospitality sector

Returning to Abu Dhabi for his third stint in the hotel industry here, Francesco Borrello is optimistic that the UAE capital is well positioned to play a major role in further developing commerce and tourism sectors as the city’s infrastructure continues a rapid pace of development.

Newly appointed as general manager of the Abu Dhabi Grand hotel, recently taken under management contract by Le Meridien, he is overseeing a major expansion and refurbishment project there – following which the property will be relaunched as Le Royal Meridien Abu Dhabi next year.

And, having first worked in the emirate in 1983, he is confident that 21st century Abu Dhabi is set to establish a name on the world stage as a global city of renown.

“The city progresses all the time and there has been unbelievable development since I left the last time in 1999,” Borrello said. “In terms of architecture, it has become a mini-Manhattan on the Gulf with stunning glass and steel towers contrasting vividly with the blue sea and silver sands of the breakwater.”

Even more noteworthy, he said, is the green environment that would be an amazing sight anywhere, but particularly in Arabia: “From the airport to the corniche, there are thousands of palm trees and flora, and projects such as the new gardens being developed on the Corniche make Abu Dhabi a model city and an oasis in this region.”

Complementing the environment, Borrello noted the expansion of the hotel industry in the emirate, which has been accompanied and propelled by new properties coming in to the market.

“The service offering here has totally changed in the past few years, increasing in variety and substance, and both business and leisure travellers can now be certain that their requirements will be met here in terms of hotel and restaurant facilities.”

Naturally, Borrello is keen that his hotel should take top ranking in this sector, but is equally enthusiastic about competition from his neighbours in the city: “It creates healthy marketplace if you have a number of different hotels offering quality services and facilities to attract guests,” he said.

“All hotels will promote Abu Dhabi as a destination in one way or another, and this is as important as competition between individual hotels for business in the city.”

Faced with the ebullient growth of the neighbouring Dubai emirate, Abu Dhabi has been less flamboyant in its promotion but Borrello recognises the paced but sure approach as one that is entirely suited to the needs of the capital.

“It’s no secret that other destinations in the region have gone out and promoted themselves on the international stage before they were really ready to compete on an international scale – here the growth is studied in terms of airport development, road construction and landscaping, and now hotels, conference centres, malls and parks.”

On the business front, Borrello has already witnessed the new mood of confidence in the UAE capital, with his hotel running 100 per cent occupancy during the recent ADIPEC exhibition.

“As a government and diplomatic centre, there has always been pockets of good business here, but now we are seeing more commercial opportunities being created and a lengthening of the season from September to May,” he said. “Another thing is the increase in GCC traffic as our neighbours take note of the commercial scope of Abu Dhabi, as well the growth of leisure attractions here.”

While emphasising that mass tourism is not an option for Abu Dhabi, Borrello is equally sure about the quality of the product for overseas and regional holidaymakers.

“We have an elite city here – one that is top in terms of quality service and facilities and that will appeal to select audiences who appreciate its unique environment.”

Among potential sectors, he highlights the ‘silver’ generation in Europe, retirees who have time to travel and the money to go farther afield in search of the new.

“The mild winter climate, long clean beaches and green corniches, range of restaurant and entertainment options, the safe environment, plus the cultural offerings of Abu Dhabi are major selling points here, and ones we should all be emphasising in our sales drive overseas,” stressed Borrello.

However, while leisure could be an important business segment in future, he acknowledges that executive travel is bread and butter for most hotels in the city, and here his task is to become the best of the best.

“The requirements of the business traveller are growing all the time, for bigger rooms with office space, the latest IT, 24 hour service, pool and leisure facilities – and as a result the five-star market in Abu Dhabi is evolving in to a quality product that can meet all expectations.

“For me, the new opportunity to transform the Abu Dhabi Grand in to a luxury product with state-of-the-art facilities and immaculate service comes just at the right time – Le Royal Meridien branding will establish us as a landmark hospitality provider in the city, and as the business travellers’ choice.”

Already, the hotel has more than doubled average room rate and Borrello has set targets to consistently boost annual occupancy and revenues, justified by the evolution of the hotel’s intrinsic product.

"Our location is superb, in the heart of the city but with sea-views on the Corniche facing the breakwater, and combined with large rooms, a varied menu of restaurants and bars, plus the additions to come, which will include new rooms, restaurants, pool, ballroom and lobby – this is the hotel to watch for the future,” he said.

With a history of delivering what he promises, Borrello most recently revived the fortunes of Le Royal Meridien Bahrain, where he was responsible for a major overhaul of the hotel’s systems, operations and procedures that resulted in a significant increase in market share.

Italian-born Borrello, who is fluent in English, Italian and French, graduated from university in England before gaining an MBA from Washington International University, and has since worked in the hotel industry in the Far East, Europe and the Middle East

Dubai chapter of SKAL launched to support burgeoning tourism sector

The Dubai chapter of Skal, the international organisation of tourism leaders, was today launched in the emirate with the support of Dubai Tourism & Commerce Marketing (DTCM).

Mohammed Khamis Hareb Al Muhairy, DTCM’s Director of Operations and Marketing, named Ghassan Aridi, general manager of Alpha Tours, as president of Skal’s newest branch. Aridi is joined by Mohammed Al Geziry as vice president and 18 founding members representing all spheres of Dubai’s tourism sector.

“Skal has long-since been recognised as the global association for the tourism industry and Dubai is delighted to join more than 500 Skal clubs worldwide in the advancement of the global tourism sector,” said Al Muhairy.

Registered as Dubai Chapter 672 through the Skal headquarters in Torremolinos, Spain, the founding members join more than 25,000 tourism professionals in more than 525 clubs in 80 countries in their pursuit for the sound development of tourism worldwide.

Aridi explained : “Skal is a global association of tourism professionals who encourages and creates a network around the world. It promotes seminars and conferences to strengthen the industry’s professionalism and the Dubai chapter is geared to follow suit.”

He confirmed that club membership is now open to Dubai-based tourism professionals with more than three years industry experience.

Vice president, Al Geziry said Skal Dubai has a busy calendar of activities in store, in addition to a monthly member’s luncheon.

“Through participation in local activities and events at all levels, Dubai Skal club members will be able to meet industry colleagues both locally and from around the world to share and develop ideas, opportunities and industry matters on a personal and business level,” he said.

The inaugural luncheon, held aboard MV Danat Dubai on Dubai Creek, was attended by the vice president of Bahrain Skal, Gulf tourism veteran, Mohammed Buzizi. Buzizi is also managing director and board member of Bahrain National Hotels Company. He was joined as a guest speaker by Mark Miller, regional area manager Middle East and Indian Sub-Continent, British Tourism Authority. Membership to the Dubai chapter of Skal Club is now open. 

The Peninsula Chicago named Top Hotel in The United States

In the 2003 Top U.S. Hotels, Resorts & Spas Survey, covering 870 leading properties across the nation just released by Zagat Survey, The Peninsula Chicago was named the Top Hotel in the United States.

According to the Survey, The Peninsula Chicago, which opened just over a year ago, is a “spectacular” “gem” with “astonishing” rooms, is the country’s Top Hotel. It was also rated the Top Newcomer.

"It took just a year for this 'spectacular' new 'contemporary' 'gem' to grab the No. 1 Hotel spot in this Survey, luring luxury lovers with rooms so 'astonishing' - 'plush beds, flat-screen TVs' and other 'high-tech gadgets' - that 'you never want to leave ', unless it's for 'trips to the spa', a 14,000 square foot masterpiece that sports 'a gym with magnificent views'; gourmands gravitate to one of five 'grand' restaurants (chef Gerhard Doll's New French-Med Avenues is a winner) or head to the 'snazzy bar', but it's this flagship's 'personal service' that makes it 'one of the finest in the world'."

“It is an honor to receive such an accolade from world-renowned Zagat and to know that so many seasoned travelers are pleased with the elegant atmosphere of the hotel as well as the service that we provide.” said The Peninsula Chicago General Manager Maria Zec.

Survival of Tourism in the Age of Terrorism

  By Ted Silverman and Rodney Sanders

There is a basic and complete understanding that tourism and terrorism are diametrically opposed both in the conceptual as well as the practical sense. They simply can't exist side by side. It is therefore no small wonder that terrorism seeks to destroy one of the major benefits of the free and economically successful developed world. Tourism is our soft underbelly and goes to the heart of what we all love to do. We have and want to exercise the right to travel, tour, see new places and confront different cultures as well as to experience the sight, smells and sounds of far away lands. And it is equally true that until the tragic events of September 11, for the vast majority of the citizens of the developed world, the chances of becoming a victim of a terrorist act was thought to be extremely remote. In fact, most of the citizens of the developed world were oblivious to the threat despite the fact that modern terrorism has been around for several decades. So why are we now fearful and feeling helpless when challenged by the terrorist scourge described by many as the ruthless enemy of the Third World War. Even more importantly, what can we do to stop the terror and if not stop it entirely, to mitigate its effect and to live with it.

 Firstly, it has taken two mega acts of terrorism to drive home to us that we are all potential victims and that if in the past such acts were small in dimension and local or limited to remote countries, this no longer applies. The Trade Towers and the Bali tragedies were the means used by the terrorists to drive home the message. Maim tourism and you hurt the economies, both those of the host country as well as the developed world's economy, in the micro and macro sense.

This is a war by definition that is largely one of intelligence at the macro level and that has to be left to the governments, led by the U.S. in the role of leader both by it's being a major target as well as the country with the most resources. The leadership role of the U.S. is no different in this round than the one it played in the two World Wars of the outgoing century. The promulgation of appropriate domestic laws is also required at the local Government level by the respective countries.

At the micro level the operators of the world of tourism, be they Airlines, Hoteliers, Amusement Park and Shopping Malls, Restaurants, Transport companies, must take every precaution to protect their customers. The inconvenience caused in protecting the client is a cheap price to pay if the life of the customer and the business is at stake. Failure to take some security measures, as inadequate as they may seem in the face of the determined terrorists, will mean facing the media after the fact with an equally inadequate explanation. The public's confidence must be won over at all levels. And it is incumbent on all who are part of the Tourist industry to take advantage of the expertise available and it should be said that not all security companies are experienced or adapted to providing the level of specific expertise needed in the new situation.

The perpetrators come from varied sources and are fuelled not only by the ideologies but by the media coverage readily available. The bigger the show the better the results, hence the latest in the "ultimate" Mega Terrorism act as demonstrated by the events in Moscow. Local Security literally begins at our doorstep. The gate or doorstep is our perimeter defense and it must be manned by properly trained and equipped personnel. Imagine what the events in Moscow may have looked like with a minimal effort of perimeter monitoring. Surveillance is yet another deterrent that is an essential part of the local "war on terror" as President Bush so rightly labeled the situation we face. There are various and varied measures that need to be taken immediately by all enterprises that form part of the great industry we call Tourism. We can not afford to "penny pinch" at our micro level just as we expect our Governments to expend all available resources on the "war on terror".

 The expertise currently available with experience in deterring terror is best found in those companies who have been specializing in this arena in the past and for obvious reasons they may not be located within your own respective country. That does not mean they need be excluded for matters of pride, communications or some other reason to bypass this avenue. Nor must their proposed means be rejected outright because "we don't do this in this country". The public has also changed along with the circumstances. A hotel with the finest lobby and the best in furnishings may become less preferable to the hotel with visible security where the client feels reassured. We have already seen this happen to some extent in the Airline industry. To put our head in the sand and play the role that "this won't happen to me" is to ignore the writing on the wall. The business of Tourism  is simply too attractive for Terrorism to bypass  because the business is a people business where large numbers congregate and it is therefore too a target to be missed.

 The war on terror is to be fought at all levels while we go about our daily business.  We can not allow the terrorists to bring us and our economies to a standstill. An alert and conditioned public, determined Government involvement and active participation at the micro level by individual business and in particular, that of the Tourism industry is what is required. There is no foolproof recipe but the fight has to begin somewhere and where better than on your very doorstep. If you wait for the Government, you may find yourself severely disappointed. Just look at the tragic results in Bali and Moscow.

The writers are former members of the Tourism Industry in Hotels and Airlines with over thirty years experience and are currently a directors at Silversand, a Risk Security Management Company located at sanders@attglobal.net