Newsletter - July 3 , 2002

ARMANI HAS DESIGNS ON RESORT HOTELS

 Italian designer Giorgio Armani is in talks with leading international chains about opening an Armani-branded resort, according to an interview in this weekend’s Sunday Times. The interview in the Business section looks at the Italian’s business empire, which in 2001 made reported profits of £71m on sales of £824m. There are 243 Armani shops in 34 countries.

The mention of resort hotels comes in the third paragraph from the end. Armani says: ‘It will be a big international group and we have been speaking to companies about a partnership’ but no other details are given.

Starwood, Park Hyatt and Andre Balazs Group are tipped by industry insiders as the most likely candidates.

HOUSTON, WE (DON’T) HAVE A PROBLEM

Article from the June issue of Lodging Magazine  By Steve Bergsman

Strong performance makes city a major-market anomaly

Some call it the Enron effect. Others are not sure. Regardless, the city of Houston has become a statistical quirk.

In its April 2002 Lodging Intelligence Report, Bear Stearns & Co. noted that, on a last-twelve-month basis, the top 15 domestic markets experienced negative RevPAR growth ranging from -7.2 percent to -27.5—with the exception of Houston, were it actually grew 2.9 percent. Houston was also the only top-15 city in which occupancy grew (from 62.3 percent to 64.7 percent) from April 2001 to April 2002.

"This has a lot to do with Enron," says Trip McCoy, a Bear Stearns' lodging analyst. "Government officials, auditors, and the press all converging down there in Houston helped support these results."

Even before its fall and notoriety, Enron was a significant consumer of hotel rooms and meeting space, according to Joan Johnson, president of the Hotel & Motel Association of Greater Houston. While it is still too early to see how Enron's decline will eventually affect the hotel market, for the moment "there's so much activity around with attorneys and others coming in," Johnson says. "Some places may have lost business, but the downtown hotels have gained from the visiting investigators and lawyers, so it has been a balance."

Donald Henderson, vice president and managing director of the Hyatt Regency Houston, says the salubrious lodging market has more to do with macro-economics, in particular the city's healthy business climate. "Houston's economy over the past few years has been going very strong," he says. "Everybody took a hiccup last September and October, but we bounced back faster and stronger."

Although the Houston economy has diversified over the years, a large part of it remains tied to energy, a sector that has been steadily chugging along.

There have been other contributing factors to the city's strong hotel performance, not the least of which is modest hotel development. "Houston kept its supply down pretty well," says Duane Vinson, a client service analyst with Smith Travel Research. In 2001, Houston's inventory of rooms increased 3.7 percent, at the lower end of the 3.5-to- 6.5 percent range.

The Houstonian Hotel, Club & Spa is situated in the Galleria section of Houston, approximately seven miles west of downtown. The 288-room hotel doesn't benefit from downtown businesses and saw little effect from Enron, in good days and bad. Last year, occupancy was on par with the year before, reports Mark Yanke, vice president and managing director. "Overall, flat was a good thing heading out of 2001 and into 2002."

What has kept the local lodging market purring, Yanke maintains, is the oil business that remains "strong" in the region; the port, one of the country's largest; and international business, especially from Mexico and South America. Unlike many of his large-market peers, "We are ahead of budget and close to where we were last year at this time," Yanke says.

Steve Bergsman is a business and travel writer based in Mesa, Arizona. 

NEWS@PATA

SUSTAINABLE TOURISM DISCOUNT AVAILABLE UNTIL JULY 15

Delegates who sign up for the 1st PATA Sustainable Tourism Conference & Mart are eligible for a 10 percent discount if they pay by MasterCard before July 15, 2002. The price advantage applies to buyers, sellers and Conference-only delegates. Mart fees include attendance at all Conference sessions. The one-and-a-half days of Mart activity have been created to sell eco, adventure and sustainable tourism products from across the Pacific Asia region. For further information e-mail pstcm@pata.th.com, or visit the PATA Web site at http://www.pata.org/frame.cfm?pageid=2&ebid=33 to download an application form.

LUXURY TRAVEL MARKET FOR ELITE TRAVEL SUPPLIERS

The PATA Europe Division is pleased to announce the organisation of a PATA stand at a new event focusing on luxury travel, the International Luxury Travel Market (ILTM) to be held in Cannes, France, December 10-12, 2002. ILTM will offer exhibitors the opportunity to pre-schedule appointments with fully hosted VIP buyers who cater to high-end clients including individuals and groups, corporations, royalty, governments and celebrities. The event is organised by ILTM in partnership with Reed Travel Exhibitions. For more information on participating in the PATA stand or to register, please contact PATA Europe at europe@pata.mc.

ADVERTISING OPPORTUNITIES WITH PATA

Target thousands of travel industry insiders through PATA's in-house advertising vehicles. For example, you can reach almost 2,000 fellow PATA members by advertising in the 2002/2003 PATA Member Directory. The directory's booklet advertisements start at US$500, while banners on its interactive CD-ROM begin at US$150. Reservations and materials must be received by August 15, 2002. You can also advertise in this weekly News@PATA e-newsletter, starting at US$150 for 100 words, with discounts for multiple insertions. Banner advertisements on PATAnet (20,000 users per month) start at US$500 for three months. To request an advertising rate sheet, contact Ms. Paveena Olansuksakul. E-mail: paveena@pata.th.com.

PATA STRATEGIC INFORMATION CENTRE WORLDWATCH

* On June 18, 2002, the Council of European Transport Ministers formally adopted a regulation creating a European Aviation Safety Agency whose role will a) help the Community legislature draw up common standards to ensure the highest possible levels of safety and environmental protection b) ensure that they are applied uniformly in Europe and that any necessary safeguard measures are taken, and (significantly) c) promote their worldwide adoption.

* The number of women-owned companies in the United States has grown at around 15 percent over the past five years, twice as fast as all companies generally. The U.S. Census Bureau estimates that 100,000 female-owned companies make US$1 million or more in annual revenues. An interesting niche market?

* The U.S. government has demanded that all foreign airlines serving the U.S. install new flight deck doors on their aircraft by April 9, 2003. The decision will affect 1,921 foreign aircraft and more than 6,000 American aircraft, according to estimates by the U.S. Federal Aviation Administration (FAA). 

CHOICE HOTELS INTL. ACQUIRES 55% CONTROLLING INTEREST IN FLAG CHOICE HOTELS, ITS FRANCHISING PARTNER IN AUSTRALIA

"By acquiring the controlling interest in Flag Choice Hotels, we will be able to implement a comprehensive business plan designed to improve franchise services, enhance marketing programs, and build a strong base for the Choice brands in the Pacific," said Charles A. Ledsinger, Jr., president and chief executive officer. 

Under the terms of the agreement with Flag International Ltd., Choice has acquired a 55% controlling interest in Flag Choice Hotels (FCH) and was granted an option to purchase the remaining 45% over a five year period from closing. Assuming the option is exercised, the total consideration for the transaction will be US$3.5 million. 

FCH currently franchises approximately 400 properties in Australia and New Zealand under the Flag, Comfort, Quality, and Clarion brands and is the largest hospitality franchisor in those countries. Concurrently with completion of the transaction, more than half of the Flag branded properties in Australia will convert to the Choice brands. As a result of the transaction, Choice will integrate FCH's Melbourne call center to its worldwide reservations network. 

Choice Hotels International franchises more than 5,000 hotels open or under development worldwide under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands. 

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities law. 

TRENDS IN TAIWAN, INDIA, INDONESIA, JAPAN

Short haul, cheaper intra-Asian travel is expected to continue to increase in popularity. - Competition between long-haul destinations is fierce, with price-led promotions dominating the market place. This is particularly focused on low-season trough periods throughout the year. - Mono-destination travel is expected to grow as short- breaks become more popular. 

Although the majority of travellers arrive on group- inclusive travel (GIT) itineraries, partially-packaged tours and individual travel are slowly increasing. - In Chinese Taipei, competition often focuses on price rather than product or package variations. - There are an estimated 3,000 travel Web sites in Chinese Taipei. Many of these are content oriented and tend to be run by travel magazines or newspapers. - Online bookings are generally limited to airline tickets and hotel bookings. - www.australia.com delivered 123,048 pages of information to users in Chinese Taipei in 2001, up 79% on the previous 12 months. A Traditional Chinese language translation of the main pages is available for consumers as they prefer to research travel information in Chinese.

India - Indian consumers have a short lead-time for booking their holidays. - Most consumers will book through a retail travel agent, rather than direct. - There has been a dramatic increase in the usage of the Internet to research and gather information for vacationing Ð a trend that is expected to continue. - www.australia.com delivered over 789,530 pages of information to users in India in 2001, up 118% over 2000.

Indonesia - Indonesians have a very short booking lead period, which can be problematic in the area of visa issuance, particularly for group travel. - Consumers prefer to book through travel agents. - Partially packaged and flexible option packages are preferred. - The cost and difficulties buying Internet-connection packages have slowed the uptake of the Internet by both trade and consumers in Indonesia. - In 2001 page deliveries on www.australia.com were up 47%, to 63,893. - Agents prefer to utilise fax and printable e-mail for land reservations, rather than Web-based services.

Japan - The outbound market from Japan declined sharply in the wake of September 11, 2001, although some sectors of the market are now returning. - The increasing popularity of media sales (sales driven by newspaper advertising or data-base marketing campaigns), is quickly changing the way consumers book travel. Lead times are shortening and consumers are more willing to shop around. 

The evolution of the Japanese travel industry into a more specialised, consumer-oriented sector is expected to continue. Destinations need to maintain a close involvement with the industry in order to maintain knowledge of the industry and take advantage of the rapid pace of change. - Media sales specialists are leading the way in the development of new distribution channels, such as the Internet, as advertising rates in traditional media become more expensive and companies search for new and cheaper distribution mechanisms. 

Internet-only companies with a retail licence are emerging, and although the Internet currently plays a minor role in the distribution system, any significant change to an online distribution mechanism is expected to be long-term. - The Internet is popular for information gathering; however it is still in the early stages of adoption as a booking channel, particularly for international travel. - Although use of the Internet to book travel remains very low, the travel trade has recognised its increasing importance as a tool for disseminating information. 

This is evidenced by the increasing popularity of sites such as Traveltown, a Web site run by wholesalers JTB, KNT, NTA and TKK, which provides travel information as well as links to travel agency and NTO sites. - The ATCÕs new consumer Web site www.australia.jp was launched in April 2001 and delivered 1.67 million pages in 2001. - Japan Airlines also has an established and influential Web site, and in 2001 developed information-only pages to support the launch of the second stage of the New Style Australia campaign with great success. This featured product and lifestyle information to support the campaign in addition to leading to a booking mechanism.

WHAT’S HOT, WHAT’S NOT IN SPAS

A Spa Guest Survey from ISPA, the International Spa Association

About ISPA:

ISPA is recognized worldwide as the professional organization and voice of the spa industry, representing more than 1,200 health and wellness facilities and providers. Members encompass the entire arena of the spa experience, from resort/hotel, destination, mineral springs, medical, cruise ship, club and day spas to service providers such as physicians, wellness instructors, nutritionists, massage therapists and product suppliers. 

ISPA is 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 their participation.  

ISPA promotes and defines the spa experience as “your time to relax, reflect, revitalize and rejoice.” For more information on ISPA, call 606.226.4259, write ISPA, 2365 Harrodsburg Rd., Suite A325, Lexington, Ky. 40504; e-mail livesayk@mgtserv.com.  Website:  www.experienceispa.com   

NEW CAMPAIGN TO BUILD BUSINESS TOURISM TO AUSTRALIA

AsiaTraavelTips.com   -  Australia's business tourism sector is set to benefit from a new global advertising campaign launched today, Australian Tourist Commission (ATC) Managing Director Ken Boundy said. 

"The new $1 million campaign will promote Australia around the world as an ideal destination for business tourism events - from conventions to meetings to incentive trips," Mr Boundy said. 

"We want companies and organisations around the world to consider Australia, not just as a dream holiday destination, but as the location for their next business event. 

"This is the first global 'brand' campaign undertaken by the ATC for the business tourism sector and is based on a new strategy to build Australia's share of global tourism business.

The new campaign, officially launched by Minister for Small Business and Tourism, the Hon Joe Hockey in Sydney today, was funded by additional resources allocated by the Federal Government.

Mr Boundy said the campaign targets key decision makers in business and government organisations and features endorsements from companies who have previously held a business event in Australia. 

"Importantly a range of locations around Australia are feature in the newspaper campaign from the Sydney Opera House to the City of Melbourne to Uluru and all states featured in the television campaign," he said. 

"The campaign directs people to the ATC website www.meetings.australia.com which provides tailored information to companies interested in Australia." 

Mr Boundy said the business tourism sector was a high yield market, with international business visitors injecting around $2.2 billion to the Australian economy each year. 

"Australia is well placed to increase its share of the global tourism market," he said. "In fact, the country's share of international meetings expected to increase from 3.8 per cent in 1999 to 6.4 per cent in 2002.

"Research also indicates that international visitors are likely to return to Australia as leisure tourists - further creating economic benefits for the country. 

"Australia's hosting of the Sydney Olympic Games helped to boost the profile of our country as a business tourism destination. We need to continue to actively promote our credentials as a world class business tourism destination." 

Key facts on the campaign include: 

· $1 million campaign to include television and newspaper ads

· TV advertisement to include vox pops from Asian business leaders to be screened on CNBC

· Newspaper ads to feature in Financial Times, Business Week and The Economist

· Campaign to focus on Asia, UK, Europe and the US

· Companies to feature in newspaper ads include: Zurich, Honda, Schenker and Nan Shan Life Insurance.

AGENDA SET FOR THIRD MARKETING FORUM CONFERENCE – EXPERTS TO CONVENE IN DUBAI TO DISCUSS BEST MARKETING PRACTICES IN ACTION

AsiaTravelTips.com  -  The Marketing Forum conference, to be held on October 21 to 23 at the Emirates Towers hotel in Dubai, will this year focus the attention of its delegates and speakers on "Best Marketing Practice in Action". 

According to the conference organisers Gray Business Communications, The Marketing Forum, now into its third season, is firmly established as the anchor for a series of region-wide one-day seminars, with the October conference theme considered "an inevitable choice" for this year.

Judith Gray, conference director, said: "We have seen The Marketing Forum establish a solid reputation in just three years. This year's theme was influenced by in part by Dubai's own drive in establishing itself as a world-class centre for excellence and the region's commercial capital. 

"We believe it is vital that the marketing, advertising and public relations sectors are seen to be operating to international standards and, more importantly, how these standards can be applied locally and how they can result in bottom-line benefit." 

Following extensive research into the preferences of attendees at each of the six previous Marketing Forum events, the structure of the conference has altered this year. Project manager Brian Berry said: "We have re-structured the event to combine two keynote speeches each day. The afternoons will be spent examining the best application of these strategies in a number of breakout seminars. These will be delivered by business academics and practitioners from Canada, Europe and the region."

Berry stressed that the need to equate strategy to bottom-line results has influenced the tailoring of conference content to meet the needs of marketing decision-makers in the Middle East. He explained: "The breakout seminars in particular are geared to deliver proven methods to turn marketing plans into dollar benefits."

Capitalising on the success of the previous two international marketing conferences, the organisers have already signed up first-class, globally recognised speakers, as well as key sponsors including: Saudi Arabian Airlines; LandRover; Canon; Microsoft; BBC World; MBC; Zamil Air Conditioners; MEMRB; The Economist; and Gulf Marketing Review.

Keynote speakers include Jim Harris, a leading authority on strategic planning and leadership development, on Planning for growth and decay in a dynamic marketplace, while YO! Sushi founder Simon Woodroffe will address Daring to create the new. Both speakers will be appearing in the Gulf for the first time. Alyque Padamsee, the charismatic chairman of AP Associates in India, will be discussing The expectation of the new consumer; and Khamis Al Muqla, Chairman Saatchi & Saatchi Middle East, Bahrain will address the current hot topic of Making the case for best practice in advertising.

In addition, breakout seminars will be hosted by eight recognised business leaders, including: Professor Colin Gilligan, professor of marketing, Sheffield Business School, UK; Ron de Pear, chairman of CIA International, UK; and Mark Van der Ven, managing director of ACCPAC in Dubai.

eTurbo.com  -  SIMPSOM MILLER- membership will comprise ministries and agencies that impact directly on tourism TOURISM Minister Portia Simpson Miller yesterday announced plans to establish a "high level council" to advise the government on repositioning Jamaica as a travel destination amid a steep decline in visitors arrivals this year.

"The membership will comprise ministries and agencies that impact directly on tourism as well as industry leaders and stakeholders (and it) will advise the government on all tourism related issues," Simpson Miller told Parliament during a three-hour contribution to the sectoral debate. The minister, however, did not identify specific personalities to serve on the council, but the initiative comes in the face of recent harsh criticism by several hoteliers over the performance of the Jamaica Tourist Board. They have, among other complaints, accused the JTB of spending too much of its US$32-million budget on bureaucracy and not enough on the things that will actually bring visitors to the island.

However, Simpson Miller, in the address, sought to deflect criticism from the JTB, arguing that a 13 per cent decline in Jamaica's visitors arrivals between January and April (including a 22 per cent drop in April) was not as bad as many Caribbean destinations. She also appeared to dismiss suggestions for a radical overhaul of the JTB. "...It is not as simple as closing offices and freeing up money for advertising," she said. 

The agency, Simpson Miller said, had in the past closed down offices and several of its representatives abroad were working from home. She also argued that tourism marketing depended on personal marketing rather than by way of technology. Last night, however, tourism interests argued that Jamaica's tourism promoters had failed to properly leverage the assets which it has, such as an airline, Air Jamaica, which are not available to many other destinations.

But while Simpson Miller maintained her defence of the JTB, she appeared to be offering an olive branch to the critics, who include some of Jamaica's most influential tourism industry players. "...We acknowledge the need to maintain an even closer relationship with our industry partners," she said. "I have taken the step to initiate a structured dialogue with industry leaders through monthly meetings."