COMPASS TO SELL TRAVELODGE, LITTLE CHEF; USUAL SUSPECTS LINE UP 

(Dow Jones/AP) - Britain's Compass Group PLC said Friday it will auction off its Travelodge inns and Little Chef roadside eateries to focus on catering.

Analysts say the two businesses, to be sold separately by Schroder Salomon Smith Barney, should raise about dlrs 1.5 billion.

Compass is the world's largest contract caterer with 10 billion pounds, or roughly dlrs 15.3 billion, in annual sales.

Travelodge is Britain's second-largest budget hotel, with around 12,000 rooms. Little Chef is the country's biggest roadside-eatery business, with 397 outlets.

Analysts had expected Travelodge to be sold off and said the markets were pleasantly surprised that another capital-intensive business, Little Chef, is also on the auction block.

Lehman Brothers analyst Fraser Ramzan said the move shows the company is bowing to shareholder pressure. Compass has made a number of acquisitions in the past few years and investors have been keen to see it refocus on ramping up cash flow and working-capital levels.

Ramzan said there will be plenty of interest in Travelodge, though perhaps less in Little Chef because the restaurant has struggled to increase sales over the past five years. Little Chef would probably fetch about dlrs 530 million to dlrs 610 million, he said.

Compass said memorandums will go out to interested parties in July, and that the auction process should take about four months. Although the two businesses are being sold separately, Compass said it won't dissuade a suitor from making a combined bid for both operations.

Britain's Whitbread PLC, which owns rival Travel Inns, French hotelier Accor SA and British brewer and hotel operator Six Continents PLC top the list of possible buyers for one or both businesses.

Usual suspects line up for Travelodge

e-Tid.com  -  No clear favourite has emerged as the broadsheet’s favourite to pick up Travelodge and Little Chef after the two were put up for auction by owner Compass late Friday.

The Business headlines its coverage with ‘Whitbread in the frame…’ and suggests that it is looking to make a £700m offer for both businesses – Travelodge would fit with its Travel Inn chain while Little Chef would fit with Beefeaters and Brewer’s Fayre.

The Telegraph on Saturday quotes an ABN Amro analyst who says: ‘We think Accor is the modst likely candidate.’

Another name appearing in most reports is 6C. The Business mentions Cendant, which owns the Travelodge franchise in the US, while The Independent suggests Thistle

TRENDS IN CHINA, HONG KONG, KOREA, PHILIPPINES

eTurbo.com  The Internet is rapidly expanding, although Chinese consumers will still book through an agent - and in fact are required to book through a licensed agent for Approved Destination Status leisure travel. - Consumers are price conscious and competitive pricing is a feature of the market. Package differentiation is generally on price rather than package inclusions. - Difficulties in system compatibility in China (PRC) have hindered the expansion of the online environment. - Frontline agency staff have little access to the Internet and require all online information to be in Simplified Chinese language. - www.australia.com delivered 104,104 pages to Chinese users in 2001, up 28% over 2000. The ATC has some Simplified Chinese language gateway pages for Chinese consumers, as they are generally unlikely to research destination information in English.

Hong Kong SAR - Hong Kong SAR is an extremely competitive market for travel agents. The airlines have a huge influence on travel agencies pricing strategies and on itinerary planning, which in turn largely determine the airlines marketing strategies. - Shorter duration, mono-destination travel is expected to further increase, at the expense of total outbound travel to long-haul destinations. Popular short-haul destinations include Thailand, Singapore, Chinese Taipei, Korea (ROK), Japan, Malaysia and the Philippines. - Competition focuses predominantly on price, with some product or package variations. 

Airlines generally schedule supplementary flights over absolute peak travel periods in order to cater to increased demand, particularly during the Chinese New Year period in late January or early February. - Most key operators have developed Web sites providing product information, special deals, travel clubs, newsletters and online enquiry response mechanisms. - Airlines are encouraging consumers to book direct via the Internet, by offering incentives via air fare discounts and frequent flyer points.

Korea (ROK) - Korean (ROK) consumers are largely driven by price. Products in the market are differentiated on price rather than product inclusions. - Consumers will only refer to Korean language information and brochures when planning their holidays. - Airlines are driving consumers to book air-only or air- and-land-only packages via online deals and promotions. - In Korea (ROK), the Internet is now well established as a significant marketing tool. Most national tourist offices have a dedicated Korean language Web site, and there are already over 20 online travel agencies operating in Korea (ROK). - The ATC launched its Korean language Web site in early 2001. - Online agencies have experienced aggressive resistance by the traditional travel agencies, with extensive advertising campaigns in traditional print media by package travel agencies.

Philippines - Short-haul, and short-break travel is increasingly popular with Filipino travellers, with Hong Kong SAR, Malaysia, Singapore, Thailand and Chinese Taipei topping the list of most popular destinations. - Airlines remain the driver of product and destination development in the Philippines, with established networks of travel agencies distributing their products. - Travel agents have little opportunity for access to the Internet. - The Internet is used largely for information gathering by top-end consumers only

COARSE BEHAVIOUR STUDIED BY STARWOOD

A new study by Starwood Hotels & Resorts to support its new Starwood Golf Vacations programme finds that virtually all executives believe that golf is an essential business tool and most say that behaviour on the golf course is typically indicative of behaviour in business - "which might be a bit scary considering that the vast majority of execs also admit to cheating on the links".

Ninety-seven percent of executives surveyed in "From The Boardroom to the Back Nine: The Importance of Golf in Business" say that golfing with a business associate is a good way to establish a close relationship; 92 percent say that it's a good way to make new business contacts; and 43 percent say some of their biggest deals have been done on the golf course.

But wheeling and dealing on the fairway isn't always virtuous -20 percent of executives say they would let a client beat them if they thought it would get them more business; 87 percent gamble while golfing and a walloping 82 percent of executives admit to cheating on the golf course.

"From the Boardroom to the Back Nine" surveyed 401 business executives and CEOs with an average household income of US$187,000.

Launching today, Starwood Golf Vacations provides golfers with a one-stop-shop golf vacation hotline to more than 80 of Starwood's premier golf resorts around the world as well as access to USA PGA TOUR Tournament Player Club championship courses.

Starwood's Golf Vacations' Concierge will take care of hotel accommodations, airfare, car rental, guaranteed advance tee times and more, offering a passport to 4,536 holes of golf worldwide. 

SPA INDUSTRY TREND: THE INFLUX OF MEN

ISPA  -  As the voice of the spa industry since 1991, the International SPA Association (ISPA) continually tracks trends among spas and consumers.  By compiling research from its 1,900 members, ISPA is tracking the industry trend of men as spa goers. 

ISPA spa members report that 28 percent of their clients are men.  “It is important for men to feel comfortable in a spa environment,” said ISPA Executive Director Lynne McNees, explaining what spas are doing to attract men.  “Because of this, spas offer separate changing and waiting areas for male and female clients, the men’s waiting areas often feature men’s magazines and TVs and treatments for men typically use scents that are more ‘manly’ instead of feminine.” 

At the end of March, ISPA conducted an informal poll of its spa members on the popularity of spa visits among men.  The main information learned from the poll is as follows:

• Overwhelmingly, the No. 1 treatment for both men and women is the massage.  The popular types of massage for men vary from sports recovery to therapeutic.  ISPA members also say pedicures and facials are requested frequently by male clients.  
• Many ISPA members report they are using products designed specifically for men.
• Spas are finding creative ways to market to potential male clients:

Þ     Advertisements in men’s magazines
Þ     Golf/spa and tennis/spa packages
Þ     Bachelor parties at the spa
Þ     Rewarding double “referral points” to customers who refer new male clients
Þ     Special promotions encouraging women to bring in their spouses/boyfriends
Þ     Men-only nights at the spa
Þ     Highlighting men’s treatments on the menu of services

• ISPA spa members are changing a few things in their facilities to attract men:

Þ     Signature services for men
Þ     Warm, “earthy” colors in the spa
Þ     Offering more “athletic” type fitness classes
Þ     Different colored robes for the sexes
Þ     Hiring a mix of male/female employees and therapists
Þ     Special instruction such as golf clinics and exercise consultations

The ISPA 2002 Spa Industry Study will offer updated statistics on the number of men going to spas.  The study, prepared by PricewaterhouseCoopers, will be available in September.

For 11 years, ISPA has been recognized worldwide as the professional organization and voice of the spa industry.  ISPA’s membership is comprised of 1,900 health and wellness facilities and providers from 55 countries.  Since 1991, ISPA has been committed to forming and maintaining alliances that will educate, set standards, provide resources, influence policy and build coalitions for the industry. ISPA’s vision is to revitalize humanity, and its mission is to educate the public about the value of the spa experience and engage its participation.  

Source: ISPA

CAMBODIA TAKES THE FAST TRACK

Cambodia has opportunities ahead and no time to waste. Its infrastructure still needs some work, but it can’t afford to wait until every road is paved and every hotel room fitted with a bathroom before it gets its name out.

This was the message Veng Sereyvuth, Cambodia’s minister of tourism, brought to Hong Kong at last month’s International Travel Expo. Helen Castell reports.

For the time being, Veng Sereyvuth, Cambodia’s minister of tourism, is quite happy to put the cart before the horse. “You must dramatise the industry. So that by the time you’re ready, the market is already developed,” he said.

With arrival figures steadily rising, Cambodia hopes to welcome its target of one million per year by 2003. It is speeding access by upgrading railway lines, opening more borders and further liberalising its visa policies, according to Sereyvuth.

A 120-seat cruise boat is also set to be inaugurated while Mekong Airlines gears up to launch its Hong Kong service later this month.

Within Cambodia, the eastern coastal area of the country is being reinvented as a haven for eco-tourism with new roads linking the region with the tourism hubs of Siem Reap and Phnom Penh, at a cost of around US$22 million, Sereyvuth says.

Cambodia is pursuing every opportunity to place itself in the spotlight. In December Jose Carreras will perform at Angkor Wat, an event that Sereyvuth promises will be the star-studded “show of the century”. Accompanied by a 300-strong orchestra from Singapore and more than 100 Khmer artists, it should, he says, “position Angkor Wat as a world class tourism destination.”

Sereyvuth has a vision for Angkor that reaches way beyond its current scope. It should be more than something to look at but a whole experience that brings to life Cambodia’s culture and history, he argues.

“I want to create a 1,000-year-old history in real life ... so you can see the temple and you can see how people lived.”

Elephants pulling huge rocks, recreating how the temple was constructed, and costumed Khmers acting out traditional customs and daily rituals is something that to some could run perilously close to theme park land, but Sereyvuth is confident that Cambodia can and will get the balance right.

While it surges ahead, sustainability will be crucial for Cambodia, Sereyvuth says. After 30 years of war, it cannot afford more casualties, either among its cultural and historical treasures or its people.

“Sex tourism, child trafficking and unsustainable tourism is not on our agenda,” he says, noting that it is important that Cambodia from the start distances itself from such perceptions.

Protecting Cambodia’s monuments will also prove a “challenge” according to Sereyvuth, who notes that its main treasure, Angkor, is fortunate to be under the care of the Apsara Authority.

The Apsara Authority is the government agency in charge of overseeing the management of the Angkor Archaeological Park.

While the country already has 3,081 temples more are continually being discovered. Angkor attracts some 650,000 visitors per year with this number predicted to rise to a million in two or three years.

Asia remains Cambodia’s strongest feeder market, with some 55 percent of arrivals coming from the region.

Although arrivals from Asia were virtually unscathed by September 11, Cambodia’s work is far from over. It has upped its destination promotion in Japan through its new consulate in Osaka which has published promotional magazines and information, and hopes to pursue similar activities in China, Sereyvuth says.

For such an old culture Cambodia is still a new destination, and to some extent this is its drawcard.

It’s easy to find new things to sell about Cambodia when so much of it is, as yet, unexplored by tourists. Although people will continue to come for Angkor Wat there is so much more in the country that they can be persuaded to stay for, Sereyvuth argues.

“This market is new, this country has just opened, but the market that has been shown to you is just the tip of the iceberg.” 

VISITORS ARRIVALS INTO HONG KONG MAINTAIN THEIR UPWARD MOMENTUM

Mainland arrivals hit further new heights as momentum is maintained in May 2002

AsiaTravelTips.com  -  After reaching a record 1.4 million the previous month, visitor arrivals into Hong Kong maintained their momentum in May 2002 with 1,332,248 visitors welcomed, the Hong Kong Tourism Board (HKTB) said today (27 June). This represents a 14.3% increase compared with May 2001.

In addition, arrivals from Mainland China reached further heights by setting a new record of 544,163, the second consecutive month that this fast-growing market has produced more than half-a-million visitors. Almost one-third of the total - 173,406 visitors - arrived in the first seven days of the month, as Mainland residents seized the opportunity of a "golden week" break for the May Day holiday.

There was good news, too, from most of Hong Kong's other major markets in May, with all three of the long-haul regions showing positive growth for the second month in a row. Arrivals from Europe, Africa & the Middle East recorded a 1.6% increase to 93,567, while those from The Americas grew 0.5% to 109,737. More notable still was a 9.5% increase in arrivals from Australia, New Zealand & the South Pacific, which totalled 34,719.

The short-haul markets provided more mixed results. Arrivals from South & Southeast Asia showed an 8.4% increase to 172,212, with Indonesia (+31.1%), the Philippines (+20.7%) and India (+16.7%) doing especially well. On the other hand, arrivals from North Asia were 4.3% down on the same month in 2001, at 146,167. While May has traditionally been a strong month for leisure travel from Japan - which like the Mainland, enjoys a "Golden Week" holiday early in the month - the figures were dampened this year by economic concerns. Hong Kong received 1.5% fewer Japanese visitors in May this year, although other regional destinations are understood to have seen even greater falls. In addition, many travellers from South Korea and Japan are believed to have put their plans on hold because of the World Cup.

There was also a 4.2% fall in arrivals from Taiwan, where the ongoing effects of difficult economic conditions were compounded by a reluctance to travel in the latter stages of the month, following the crash of a Hong Kong-bound China Airlines flight on 25 May.

HKTB Executive Director Clara Chong said that the HSBC Mega Hong Kong Sale shopping extravaganza, launched by the HKTB on 15 June and running until the end of August, was especially targeted at expanding the number of visitors from short-haul markets in the traditionally lower-volume travel season.

"This major event builds on Hong Kong's reputation as a trendy, fashionable and exciting shopping destination, and will appeal in particular to younger demographic groups who live within easy reach of a long weekend trip to Hong Kong," she explained. "In total, we expect to attract some 3.25 million visitors to Hong Kong over the 11-week HSBC Mega Hong Kong Sale period.

"An equally important objective of this event is to reinforce Hong Kong's reputation as a Shoppers' Paradise, which will help us build longer-term growth in all markets," Ms Chong added.

For the first five months of the year to date, total arrivals now stand at 6,328,901, a 14.2% increase on the same period in 2001. Almost 39% of the total are arrivals from the Mainland, which is showing 46.7% year-on-year growth. All three of the long-haul markets are now showing positive growth for the year, led by Europe, Africa & the Middle East (+2.6%).

Same-Day Visitors

During May, 34.7% of all visitors left for other destinations on the same day, a slight improvement on the 35.2% recorded in May 2001. Visitors most likely to stay for one night or longer were those from The Americas (82.0%), Australia, New Zealand & South Pacific (81.6%) and South & Southeast Asia (78.6%). In contrast, only 20.5% of those from Taiwan stayed overnight, as a significant proportion of Taiwan visitors are business people who continue by land to or from destinations in Southern China.

For the first five months of the year to date, 64.5% of all visitors have stayed for one night or longer, compared with 64.9% in the same period in 2001.

Hotel Occupancy

Average hotel occupancy across all categories was 83% in May, compared with 79% in the same month in 2001. Hotels in all different tariff groups matched or bettered their May 2001 occupancy, as did hotels in all different districts. The average achieved room rate fell 10.7%, however, reflecting strongly competitive rates from neighbouring destinations and the growing trend towards last-minute bargain hunting.

For the first five months of the year to date, average occupancy likewise stands at 83% (2001: 79%).

MILLENNIUM & COPTHORNE UNIT WINS 90.3% REPUBLIC HOTELS SHARES

AFX News   -  Millennium & Copthorne Hotels PLC said 90.3% of the capital of Republic Hotels and Resorts Limited have been tendered to the takeover bid by its wholly owned subsidiary, M&C Hotels Holdings Ltd.

As M&CHH has now received valid acceptances in respect of more than 90% of the offer shares it will now compulsorily acquire the offer shares for which acceptances have not been received, it said.

The offer will remain open for acceptance until 3.30 pm Singapore time on August 2 2002, it said.

FAMED MOSCOW HOTEL TO BE TORN DOWN AND REBUILT

 (AP) -- City authorities decided Friday to raze the Stalin-era Hotel Moskva, known to drinkers worldwide for its picture on the label of Stolichnaya vodka, and replace it with a structure based more closely on the architect's original plans.

The massive hotel, near the Bolshoi Theater and State Duma, the lower house of parliament, has been a Moscow landmark since 1935 -- and a curiosity.

Visitors gazing at the building from Manezh Square often sense that something isn't quite right, then realize that the two wings flanking the central columned section are of similar width but different architectural styles. One side has large windows framed by prominent cornices; the other has smaller less-adorned windows.

Architect Alexei Shchusev reportedly presented a blueprint showing the alternative window styles to Soviet dictator Josef Stalin. Instead of choosing between window types, Stalin simply signed off on the plan, and builders, unwilling to question Stalin, went ahead with the unbalanced plan.

Russian news reports said the new version of the hotel, approved by the construction council of the mayor's office, would be built according to Shchusev's plans, but didn't specify which plan.

HOTELIERS IN KENYA SEEK WAYS TO REVIVE AILING TOURISM INDUSTRY

Africa News  -  Hoteliers are to hold a major meeting in August to chart the way forward for the revival of the ailing tourism industry.

They have invited bankers, investors, suppliers and government officials to the August 8 meeting in a South Coast tourist resort.

Organisers told the Nation that the three-day talks at the Leisure Lodge Beach and Golf Resort would centre on efforts to forge a working partnership between the diverse interest groups.

The Coast branch chairman of the Kenya Association of Hotelkeepers and Caterers (KAHC), Mr Mark Gathuri, of Mombasa Serena Beach Hotel, said the forum would discuss problems common to hotels countrywide and to strategise on the way forward for the sector.

"Various recommendations to the government shall be endorsed on how to stimulate and sustain recovery for the hotels," Mr Gathuri told a press conference at Leisure Lodge.

He said that during the forum, discussions between hoteliers and the bankers would also centre on their "thorny relationship during these difficult times." He said however that key papers on the subject will be presented ahead of the forum to allow free and open discussions.

This will be the first time that the hotel managing directors, chief executive officers and representatives of shareholders will be meeting together for the purpose of trying to pull their industry out of its current poor performance.

"In the presently difficult socio-economic times, the Kenya Association of Hotelkeepers and Caterers would like to build professional partnerships between its members, non-members and key corporate suppliers including banks," Mr Gathuri said.

The government's role in destination marketing through the Kenya Tourist Board as well as the role played by other operatives in key source markets will also be discussed.

The meeting comes at a time when the government has accepted to let hoteliers import duty free furniture and equipment they need for refurbishing their hotels. The government has also hinted that it was assist the hoteliers to access soft loans.