Newsletter - November 8, 2002
Accor’s expansion plans in Asia unaffected by Bali
bombing
(AP) - French hotel and leisure company Accor
said Wednesday it still plans to double the number of its properties in
the Asia-Pacific region over the next five years despite last month's
terrorist attack on the Indonesian island of Bali.
Accor,
one of the world's largest hotel chain operators, currently manages 197
hotels and resorts in 15 countries in the Asia-Pacific region, including
eight that it owns.
David
Baffsky, chairman of Accor's Asia-Pacific operations, said the impact of
the Bali bombings on room bookings has so far been limited to a few
properties in the region and was not expected to last long.
"We have already seen substantial shifting of
activity to other destinations in the region. It is so far a localized
issue," Baffsky said.
Accor's
Mercure Kuta Bali hotel - located close to the nightclubs where almost 200
people were killed - has seen little short-term impact as it was used by
media and security personnel afterward, but it is suffering a drop in
forward bookings, he said.
The
group's other property in Bali, a Novotel on the other side of the island,
now has a 30 percent occupancy rate, down from levels of over 70 percent
that are normal at this time of the year, Baffsky said. He added that
Accor's 22 other Indonesian hotels were little affected.
Baffsky
spoke at the official opening of the group's 17th property in Thailand -
the Sofitel Silom, a 38-story, 454-room hotel owned by Thai property
developer Sansiri.
In
Thailand, the group's forward reservations are generally up 3 percent to 4
percent over the same period last year as tourists change their plans
after the Bali blasts.
But
on the Thai resort island of Phuket - the focus of several foreign
government travel warnings - Accor has suffered a drop in bookings.
Thailand's government has strongly criticized the warnings and said
tourists are not at risk in the country.
Baffsky
said a main area of growth for Accor will be China, where it hopes to
bring its presence "to a total of 60 to 100 properties under
management, from 18 now."
The
group also is eyeing more properties in Japan, where it now has four
hotels, and in Korea, where its first property is to open soon. Accor also
aims to re-enter the Indian market after a recent exit, he said.
Management
Changes Take Place at MeriStar Hospitality
and Interstate Hotels & Resorts
MeriStar Hospitality Corporation and Interstate
Hotels & Resorts today provided details to previously
announced plans to split the management responsibilities of the two
companies.
"Following
the merger between Interstate Hotels Corporation and MeriStar Hotels &
Resorts, we determined that the increased size of the management company
to more than 400 hotels required the full-time attention of a dedicated
management team," said Paul Whetsell, chairman and chief executive of
MeriStar Hospitality and Interstate Hotels & Resorts.
"Furthermore, during these challenging economic times, it's
particularly helpful to have MeriStar's executive staff focus solely on
the REIT's operations. The paperclip arrangement between the REIT and the
management company remains unchanged, and we will continue to take
advantages of all the benefits it offers."
- John
Emery now will focus solely on Interstate as its president
and chief operating officer and a member of its board of directors.
- Jim
Calder will continue to serve as chief financial officer of
Interstate.
- Bruce
Wiles has been promoted to chief operating officer of
MeriStar Hospitality. He will be responsible for asset management,
acquisitions and dispositions, and project management.
- Donald
Olinger has joined MeriStar Hospitality from Host Marriott as
chief financial officer.
- Paul
Whetsell will remain as chairman and chief executive officer of
both MeriStar Hospitality and Interstate Hotels & Resorts.
John Emery joined MeriStar's predecessor company, CapStar, in
1995 as director of finance, rising to the position of CFO in 1997, COO of
the REIT in 2000 and president and chief operating officer of MeriStar
Hospitality and MeriStar Hotels & Resorts in 2001. Prior to 1995, he
worked for the accounting firm Deloitte & Touche L.L.P. He holds a
B.S. in accounting from Virginia Polytechnic Institute and State
University. Emery is a certified public accountant.
James
A. Calder was formerly chief financial officer and chief accounting
officer of MeriStar Hotels & Resorts and chief accounting officer of
MeriStar Hospitality. He previously served as senior vice president of
finance for CapStar Hotel Company. Prior to joining CapStar, he was senior
vice president and corporate controller of ICF Kaiser International.
Calder is a certified public accountant. He received a bachelor's degree
with highest distinction in accounting from Pennsylvania State University.
Bruce
Wiles joined MeriStar in 1998 when the MeriStar companies were created as
a result of the merger between CapStar Hotel Company and Dallas-based
hotel REIT, American General Hospitality, where he served as executive
vice president. He was most recently the chief investment officer of both
the REIT and the management company. His background includes extensive
expertise in real estate, hospitality and institutional investment. Wiles
graduated summa cum laude from Georgetown University and is licensed as a
certified public accountant.
Donald
Olinger recently joined MeriStar from Host Marriott Corporation where he
was senior vice president and corporate controller. He held increasingly
important positions with Host Marriott during his nine-year tenure there.
Previously, he was with the accounting firm, Deloitte & Touche. He
holds a B.S. degree in accounting from the University of Virginia and is a
certified public accountant.
Washington,
D.C.-based MeriStar Hospitality Corporation owns 109 principally upscale,
full-service hotels in major markets and resort locations with 28,099
rooms in 27 states, the District of Columbia and Canada.
Interstate
Hotels & Resorts operates more than 400 hospitality properties with
approximately 86,000 rooms in 45 states, the District of Columbia, Canada
and Russia, including 55 properties managed by Flagstone Hospitality
Management, a subsidiary of Interstate Hotels & Resorts. BridgeStreet
Corporate Housing Worldwide offers fully furnished corporate housing
throughout the United States, Canada, the United Kingdom, France and 39
additional countries through its network partners.
This
press release contains forward-looking statements about MeriStar
Hospitality Corporation, including those statements regarding future
operating results and the timing and composition of revenues, among
others.
www.meristar.com
Thailand hotel cancellations:
Tourismindustry in crisis
The
October 12 terrorist attacks in Bali and warnings against travel in
Southeast Asia by the governments of many countries are damaging tourism
in Thailand, an industry report confirmed yesterday.
The Thai
Hotels Association (THA) reported that cancellations of 32,000 hotel
room-nights were expected to cost the industry at least Bt120 million.
The figure
shows the negative impact of the bombing in Bali and the warnings issued
by many countries against travel in the region.
THA
secretary Prakit Chinamornpong said 30 hotels had reported large-scale
cancellations, while many others had reported no impact at all since the
attacks in the Indonesian island.
He said
the association had gathered the figures from 90 member hotels nationwide.
Sofitel
Silom Hotel reported that the bombings in Bali had actually created an
increase in guest numbers at the hotel because tourists switched
destinations from Indonesia to Thailand.
Previously
the Tourism Authority of Thailand (TAT) predicted that tourist arrivals
would reach 10.5 million this year, a 6-per-cent increase over 2001.
Last year,
tourist arrivals grew by nearly 6 per cent to 10.03 million despite the
slowdown in the aviation industry after the September 11 terrorist attacks
in the United States.
During the
first seven months of this year, the number of tourist arrivals also
continued to grow by nearly 6 per cent over the same period last year to
6.24 million, according to TAT statistics.
Roberto
Jotikasathira - managing director of tour operator Turismo Thai and vice
president of the Association of Thai Travel Agents - said cancellations by
incentive-tourist groups had prevailed despite the Thai government
recently issuing a statement confirming the country's commitment to
protecting visitors.
Roberto
said he expected individual travellers to follow incentive-tourist groups
in cancelling their trips to the Kingdom.
The
Association of Thai Travel Agents recently sent letters to many leading
European travel agents to clarify the situation in Thailand, he added.
He urged
the government to do more than just issue press releases, saying it should
also move to allay the concerns that citizens of foreign countries have
about travelling in Thailand.
Juthaporn
Rerngronasa, director of TAT's marketing promotion department, said the
agency had allocated Bt50 million for public relations activities overseas
in a bid to improve the country's image.
Foreign media representatives will be invited to
come and experience the real situation in the country, she said.
Bangalore hotels
bloom riding on BPO boom..
Business travellers
are driving up occupancies in Bangalore’s five-star hotels, with
occupancy rates climbing up to cent per cent in some properties,
outstripping traditional ‘bookings leaders’ such as New Delhi and
Mumbai.
“A lot of technology
business is coming to Bangalore which translates into more business
travellers to the city,” an official of the city’s newest hotel, the
tony Leela Palace, said.
While the average
occupancy rate for hotels in the Garden City during the first six months
of the current fiscal is above 70 per cent, bookings have risen to 90 per
cent and in some cases, even 100 per cent in October.
The chairman of a
sub-committee on tourism and hotels of the Greater Mysore Chamber of
Industry (GMCI), C K Baljee, said even though there was a slowdown in the
information technology (IT) industry, the BPO (business process
outsourcing or ‘back-office’) business has come as a handy
replacement.
“Business travel is
again growing with more companies setting up shop in Bangalore,” he
said.
According to Baljee,
another reason for the growth was higher discounts on room tariffs and
airline tickets.
“Hotels give as much
as 40 per cent discount on room tariff, while air travel has certainly
become cheaper by nearly 50 per cent,” he said.
An Oberoi Group of
Hotels official said: “Bangalore has no off-season because business
travellers keep visiting the city all through the year.”
Bangalore has seven
five-star hotels with total room availability of around 1,100 and an
average room rate of around Rs 5,000.
Nearly 250 rooms were
added this year with the opening up of the Leela Palace of the Mumbai-based
Leela Group and Park.Com of the Kolkata-based Apeejay Group.
The Oberoi, the Taj
Residency and the Le Meridien witnessed 100 per cent occupancy rates
during September 2002.
Exactly an year ago,
occupancies in all the city’s five-star hotels had sunk to around 50 per
cent in the aftermath of the 9/11 incident.
At Le Meridien, the
occupancy rate during the busy season is around 90 per cent dipping to
around 65 per cent on normal days — the same as a year ago.
At the Oberoi, the
occupancy rate is around 75 per cent during the first six months of 2002,
dipping by 5 per cent during the same period a year ago.
The Leela Palace which
opened recently has an occupancy rate of 75 per cent, while the Grand
Ashok, which is now being operated by the Bharat Hotels, has an occupancy
rate of 75 per cent but is running at less than half its capacity because
of renovation.
The Park.Com operates
at 75 per cent occupancy, 10 per cent more than the case last year, and at
the same rate as the Taj Residency.
Tourism to Indonesia will be cut by 20% following Bali bombing: World
Bank
(AFP) -
The precedent of a tourist massacre in Egypt in
1997 suggests Indonesia will suffer a 20 percent drop in foreign visitors
following last month's deadly bombing on the resort island of Bali, the
World Bank said in a report published Wednesday.
The
number of visitors to Egypt plummeted 17 percent and revenue from tourism
fell 19 percent immediately after the attack in Luxor which killed 60
foreign holiday makers, the bank recalled.
"In
the circumstances one could expect at least a 20 percent drop in
Indonesia's tourism after the Bali attack, which would represent a little
under a one percent loss of income," it said in its East Asia Update.
The impact on consumer and business confidence could
reduce economic growth in 2003 by one percent, the report said, adding
that Indonesia's gross domestic product (GDP) next year is currently
estimated to expand 3.2 percent.
The
Bali bombing "is the reason why we do not have an acceleration of
growth for Indonesia next year", says Homi Kharas, chief economist
for East Asia and the Pacific at the World Bank.
In
2001, tourism in Indonesia generated 5.4 billion dollars, comprising 3.7
percent of its GDP. For the whole of Asia, which has also been indirectly
affected by the Bali drama, the tourism industry brought it between 25 and
26 billion dollars last year, accounting for four to five percent of the
region's economic output.
The
prejudice against East Asia as a holiday destination had already
intensified following the September 11 attacks on New York and Washington.
Tourism to East Asia from September to December 2001 was down eight
percent from a year earlier.
At
that time, foreign visitors had only just started to return to Indonesia
after dropping sharply in the wake of Asia's financial crisis in 1998,
when the number of visitors dropped by 17 percent and revenue from tourism
plunged 36 percent, noted the World Bank.
"The
horrific October 12 attack on tourists in Bali underlines the urgency of
fighting terrorism and political violence and, more generally, of
strengthening law and order in the South East Asian Countries," the
report said.
"The
experience of countries like Egypt also shows that tourism can recover
substantially from terrorist attacks if the government takes sufficiently
firm action against the perpetrators."
Nearly 3,000 Travel Industry
Leaders Attend 72nd World ASTA Travel Congress
Nearly
3,000 travel agents and other travel industry professionals have already
registered, with more expected to register on-site during the 5-day event.
The 2002 ASTA World Travel Congress is being held at the Honolulu
Convention Center on Nov. 3-8. In year's past, cities hosting an ASTA
World Travel Congress have seen considerable and immediate economic
benefits. Just as importantly, however, is the fact that Honolulu as well
as the entire state of Hawai`i's tourism industry can count on an increase
in the number of visitors it will see in the coming months and years.
"Any community
which has previously hosted an ASTA World Travel Congress event knows that
the result for them is an influx of travelers who were sent there at the
recommendation of their travel agents," said Tanzman. "It's not
unusual for host cities to realize an increase in tourism in the years
immediately following ASTA's World Travel Congress." Since the focus
of this year's Congress is clearly education, ASTA travel agent members
will be taking advantage of a host of Congress seminars ranging from
hands-on technology sessions to destination specialist courses. ASTA has
provided delegates with a program that addresses their current needs,
including seminars on everything from tips on proven low-cost marketing
strategies and maintaining company morale to strategic ideas for remaining
profitable in today's marketplace.
Sho Dozono, president
and CEO of Azumano Travel in Portland, Oregon received the ASTA 2002
Travel Agent of The Year Award at yesterdays general session of ASTA's
72nd World Travel Congresss in Hawaii.Dozono began his career in the
travel industry in 1976 when he joined Azumano Travel. He has served as
the agency's president and CEO since 1987. Dozona is a stong advocate of
diversity and is committed to championing Oregon as a travel and tourism
destination, as well as a fertile ground for business and investment
opportunities. Promoting Oregon to Pacific rim nations has been Dozono's
primary focus for the last 16 years, and his efforts have yielded the
production of a television series titled: "From Oregon with
Love," produced in conjunction with the Fuji Television of Japan. The
series has intoduced the state to a large Japanese audience and jas
generated considerable Japamese interest in travel and tourism to Oregon
Former astronaut Jim
Lovell with highlight Day Two of the general session for the 2002 ASTA
World Travel Congress with his presentation about the "successful
failure" of Apollo 13. The ill-fated Apollo 13 lunar mission occurred
April 11-17,1070, and captured the world's attention after the spacecraft
was critically damaged during its ascent to the moon. The crew, commanded
by Captain Lovell, was forced to abort the mission, abandon the
spacecraft, and make a harrowing return to Earth, including circling the
moon in the small lunar module, which was not designed for such a
trip.After safely landing in the South Pacific, captain Lovell and his
crew were picked up by the U.S. Navy and recounted in the award-winning
1995 film, Apollo 13 which starred Tom Hanks.
Pattaya
peachy after winning SKAL congress bid
The
Thai resort of Pattaya has been picked to host the much-coveted
2006 SKAL World Congress, after a landslide victory against second
favourite venue London.
Many
of the major 2006 sessions will be staged in the Pattaya Exhibition and
Convention Hall (PEACH), located next to the Royal Cliff Beach Resort.
Delegates at the 2002 congress being held in Cairns, Australia, this week
voted by nearly two to one to give the event to Thailand s seaside resort
in preference to the UK capital which had fought hard to win the event.
The
Skal World Congress is held annually and draws up to 2,000 tourism and
airline professionals for a week-long action-packed meeting, said to be
worth about US$11.9 million.
Thailand sent a large
delegation to Cairns to make a bid to bring the prestigious event to
Pattaya. The last time Thailand hosted the congress was in 1996, when
Pattaya was again chosen as the venue.
Starwood launches annual expo in
Singapore as part of business and leisure tourism drive
Largest sales mission this year consists of 26 hotels from
9 countries in
Asia-Pacific
Following the success of the Annual Sales Expo in Australia,
New Zealand, Japan and Hong Kong, Starwood Hotels & Resorts will
launch it's Singapore Expo from November 6th to 8th, 2002. More than 26
hotels and resorts from 9 countries in Asia Pacific will
participate in this year's sales mission that will be held in Sheraton
Towers Singapore.
Starwood Expo is the main sales mission organized on an
annual basis
by Starwood Hotels & Resorts to update the travel and corporate
industry on
its hotel developments around the world. The Expo also allows
Starwood the
opportunity to thank its business partners in key
destinations such as
Singapore, Hong Kong, Japan, Australia and New Zealand
for their support
over the past years for its hotel brands - Sheraton
Hotels & Resorts,
Westin Hotels & Resorts, St Regis, The Luxury Collection,
Four Points by
Sheraton and W Hotels.
"Singapore represents a major market for many of our
hotel brands around the
world.
Its strategic location has positioned Singapore as a very important
business and economy hub, which allows Singapore to have
greater airline
access and growth marketing alliances. This is an
important element to
support increase in the business and leisure travel
market." stated John
Mims, Vice President Sales & Marketing, Starwood Hotels
& Resorts Asia
Pacific. "This annual event is an
opportunity for us to come together to
'celebrate' the success with the travel industry in Singapore
which have
been such great supporters of Starwood's group of hotels.
We recognise this
important well-established relationship and would like to
bring it to the
next level." added Mims.
Starwood Expo was first introduced four years ago as the
forum for hoteliers
from Starwood properties around Asia Pacific to meet, update
and extend its
appreciation to both trade and corporate clients in key
cities. This year's
Expo sees a record participation of 26 hotels from 9
countries, including
Australia, Korea, Japan, Taiwan, Brunei, Philippines,
Malaysia, China and
Thailand.
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is
one of the leading
hotel and leisure companies in the world with more than 750
properties in 80
countries and 110,000 employees at its owned and managed
properties. With
internationally renowned brands, Starwood is a fully
integrated owner,
operator and franchiser of hotels and resorts including: St.
Regis, The
Luxury Collection, Sheraton, Westin, Four Points by Sheraton,
W brands, as
well as Starwood Vacation Ownership, Inc., one of the premier
developers and
operators of high quality vacation interval ownership
resorts. For more
information, please visit us at www.starwoodhotels.com
Pertlink
& Infotel join hands to deliver winning IT solutions to the hospitality
industry of Vietnam
Pertlink
Limited headquartered in Hong Kong, has today signed an Memorandum of
Understanding “MOU” with Phuc
An Company Limited (INFOTEL)
headquartered in Ho Chi Minh City, Vietnam, to deliver innovative Information
Technology (“IT”) solutions to the hospitality of Vietnam.
The
partnership has evolved as a direct result of Pertlink’s visibility in
creating Vietnam’s first free wireless high speed internet project at the
Hanoi Horison Hotel www.swiss-belhotel.com/hanoi.html.
The success of this project has yielded measurable results not only by
dramatically increasing guest satisfaction levels, but also higher revenues
from its customers.
“The
need to explore and capitalize on this evolving market is of paramount
importance,” says Terence Ronson – Managing Director of Pertlink. “The
results of our efforts conclusively prove that we have the vision and
wherewithal to deliver winning solutions in different markets; ones that not
only act as differentiators, but also as business drivers.” Ronson adds.
“Our flagship project in Hong Kong – Best Western Rosedale on the Park www.rosedale.com.hk
remains Hong Kong’s first and only cyber boutique hotel, which after almost
two years of operation is the definite market leader and has been bestowed
many accolades from the trade and consumers. Our projects in China with UNOTEL
www.unotel.net.cn
have changed the hospitality landscape by creating a new brand of
technologically advanced hotels specifically catering to the growing sector of
business travelers in the 3-star category. Now we see that the hospitality
industry in Vietnam urgently needs to move up to the next level in regards its
IT awareness and implementation, and so our very special partnership with
INFOTEL will allow us to do just that.”
Phan
Phuc Hung – Director - INFOTEL said upon the signing of the agreement;
“With offices in Hanoi and Ho Chi Minh City, INFOTEL has been catering to
the needs of the hospitality industry of Vietnam for many years, especially in
our capacity as the authorized service provider of MICROS-Fidelio products –
a leading provider of enterprise
applications for the hospitality industry. A large
portion of our success is due to our concentration on customer services such
as the capability to offer training as well as help-desk and remote access
support. We understand the nuances of this unique industry, and have the
capability and required mindset to offer a very high level of service which in
turn, is required from our clients to theirs. That is the nature of the
hospitality industry - delivering service. We too have identified a need to
expand our services such as in the provision of high-speed internet access, so
partnering with Pertlink augment what we have to offer, at the same time
allowing our company to deliver new and innovative solutions to our existing
and prospective client base. We are honored to be their local service
providers.”
Ronson adds,
“Individually both of our companies possess a wealth of domain knowledge and
expertise. The joining together creates tremendous synergy which will amongst
many other things help deliver HSIA (high speed internet access) to the
Vietnam hospitality industry encompassing but not limited to Hotels and
Service Apartments. What separates us from others? Quite simply we understand
the market differently - our perspective on the business allows us to have a
unique insight and vision thereby positioning technology not just for the sake
of it, but more importantly to enhance service, enhance brand loyalty,
culminating in enhanced revenues. No one does it quite like we do!”
Website:
www.pertlink.net
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