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Newsletter - January 29, 2003

 

WTO Deputy Names Three Tourism Challenges

eTurbo.com  -  Dawid de Villiers, World Tourism Organization's deputy secretary-general, speaking in front of this year's ASEAN Tourism Forum (ATF) at Chaktomuk Conference Hall addressed the major challenges facing tourism on Saturday. De Villiers mentioned the three major challenges to tourism citing the Millennium Declaration by the United Nations-to maintain world peace, to protect the cultural and eco- system environments, and to combat poverty. "The great opportunity for tourism lies in the fact that tourism is directly linked to all three challenges," stated De Villiers.

In addressing the first challenge, De Villiers claimed that peace is part of tourism reiterating the ASEAN ministers' sentiments that were disclosed in earlier speeches. De Villiers also noted in light of peace that by visiting different countries and nations, the walls and the barriers that divide people and that hides people from one another begin to crumble. To experience different cultures and different lifestyle means understanding, which paves the road to peace. Further, he stated that "tourism opens the eyes of the mind so we can see each other as equals." On the subject of peace, De Villiers also addressed travel warnings and stated that "to advice people not to travel is to award victory to those who wish to destroy the peace and stability in this world." He mentioned that the WTO is working hard to restore confidence among travelers. However, no specific measures were discussed in details.

In addressing the second major challenge in tourism, the WTO officer mentioned that the viability of the tourism industry depends heavily on the cultural and natural environments. De Villiers pointed to eco- tourism as being ideally suited to balance development with conservation and has the potential in the field of sustainable development. De Villiers noted tourism's indebt able contributions to the conservation and preservation of the natural and cultural environments. "Without tourism most of today's heritage sites would have remained in total ruins or been lost forever," said De Villiers. He further noted that tourism generated the financial means to protect and rehabilitate the natural and cultural assets. De Villiers commended Cambodia's tourism for taking action on the negative tourism against women and children. Cambodia has taken up more stringer measures in closing brothels in their efforts to cease the sex tourism in the country.

And finally, WTO deputy secretary claimed that tourism has become the world's creator of jobs, particularly new jobs. De Villiers pointed that it used to be that tourism has largely benefited the developed countries. The same cannot be claimed today, according to De Villiers, who said that tourism is now beneficial also to developing countries, particularly the least developed countries. "Tourism has become a major non-oil export product of least developed countries and the most important earner of foreign exchange," said De Villiers is addressing tourism as a means to alleviate poverty. -by Nelson Alcantara from Phnom Penh-

News@PATA

AVIATION FOCUS AT THE MEKONG TOURISM FORUM

The role of aviation will be in focus at the 8th Mekong Tourism Forum in Hanoi, Vietnam, March 28-30. IATA Regional Director Asia Pacific, Mr. Andrew Drysdale, will deliver a presentation entitled: "Aviation - The State of Play." Mr. Drysdale will show that the tourism industry needs to understand the role of civil aviation in bringing capacity to destinations such as the Mekong sub-region. The event will be held in the Hanoi Daewoo Hotel and is supported by the Asian Development Bank, the UN Economic and Social Commission for Asia and the Pacific, and the Agency for Coordinating Mekong Tourism Activities. Delegates who register before February 28 will save US$20 on registration. To register, visit http://www.pata.org and click on the Forum link. Or e-mail PATA Manager-Development, Mr. Aaron Tan at aaron@pata.th.com.

PATA LINKS TO HAWAII TOURISM SCHOOL

On January 24/25, PATA held a videoconference with the University of Hawaii School of Tourism Industry Management as part of the opening of the new Chuck Yim Gee Technology Learning Center. Students at the centre raised questions on the PATA Bali Recovery Task Force, regional security, and intra-regional travel. PATA Vice President, Mr. Peter Semone, and Managing Director-Communications, Mr. Ken Scott replied to the questions.

KOREA CHAPTER AGM FOR LATE FEBRUARY

The PATA Korea Chapter will host the 2003 PATA Korea Chapter Annual General Meeting at Gwangju, February 27-March 1, 2003. The meeting’s objectives are to strengthen tourism partnerships in Korea (ROK), Japan and China (PRC), enhance networking opportunities among Chapter members and promote Gwangju, "the city of gourmet food and culture". The keynote speech, entitled, "Cultural Heritage: Korea’s Tourism Resources," will be delivered by Prof. Hong-Jun Yu of Myongji University. Other subjects include tourism development through culture tours, certifying sustainable tourism, changes in the Japanese and Chinese markets, and media relations. Pre- and post-meeting tours are also available. To register visit http://www.patakorea.org. Or e-mail pata@www.knto.or.kr.

FINAL BOOTH SPACE AVAILABLE AT ITB PATA STAND

There is limited space available at the PATA ITB stand which is traditionally the focal point for buyers interested in Pacific Asia destinations. ITB, the largest travel show in the world, takes place in Berlin, March 7-11, 2003. PATA Managing Director-Events, Ms. Sheila Leong, will be at the stand to promote the benefits of the new-look PATA Travel Mart 2003. For more information  about the PATA stand at ITB, contact PATA Europe at europe@pata.mc.

SPECIAL OFFER FOR PATA MEMBERS

GlobalHotelNetwork.com e-newsletter is offering PATA members four editions of the Pacific Asia edition of its e-newsletter for US$45. Each edition includes expert market commentary on a specific hospitality market, Web site links for a selected destination, country tourism statistics, a development profile of a major hotel company, a report on a recent hotel sale or merger, and links to industry reports and news briefs. PATA members are eligible for a 15 percent discount on the annual subscription of US$175. The introductory offer expires February 14. E-mail: ghr@globalhotelnetwork.com.

ENCOURAGING YOUNG TOURISM PROFESSIONALS

PATA has launched a membership category for young tourism professionals (YTPs). With a membership fee of US$25, PATA YTPs (who must be under 35 years old) can benefit from numerous PATA member benefits, not least a US$99 delegate registration fee for the 52nd PATA Annual Conference in Bali, Indonesia, April 13-17, 2003. For more details on PATA YTP membership, contact PATA  Manager Development, Mr. Aaron Tan. E-mail: aaron@pata.th.com

PATA STRATEGIC INTELLIGENCE CENTRE WORLDWATCH

** On January 26 a China Airlines (CAL) Boeing 747 from Chinese Taipei landed in Shanghai, China (PRC). It was the first time in 54 years that a Chinese Taipei passenger plane on a scheduled or chartered flight has serviced mainland China. The special series of charter flights between Shanghai and Taipei have been arranged for Chinese New Year. Each flight must fly via Hong Kong SAR or Macau SAR.

** Visitor arrivals to the Philippines increased +7.6 percent in 2002 with the total almost reaching 2 million. The growth was driven by traffic from Northeast Asia (+16 percent) and Southeast Asia (+16.3 percent).

** Hong Kong SAR registered a gain of +20.7 percent in arrivals in 2002, with China (PRC) dominating (+53.4 percent). The Americas (+7.0 percent), Europe (+6.3 percent) and Southeast Asia (+6.7 percent) also helped the growth.

** Castaway Travel in Houston, Texas, is offering the world's first-ever flights for nudists. A round-trip flight to Cancun, Mexico, on a chartered, 170-seat Boeing 727 for US$499 is being marketed as "Naked Air". Passengers must remain clothed through security checks, boarding and take-off, but may disrobe when the plane reaches cruising altitude. Each nudist will receive a towel on board. The operators requests that you always have a towel between you and the seat. Flight and cabin crew will remain fully clothed.

Haunted castle turned into hotel

The Scotsman  -  A haunted castle used by Mary Queen of Scots as a hunting lodge and also entertained Queen Victoria and George IV is to reopen its historic doors today as a hotel, after a £3.5 million renovation.

Melville Castle, built in 1786 and designed by James Playfair, the leading Scottish architect of the day, had been lying semi-derelict for many years but was bought in 1993 by owners determined to give it a new lease of life.

The castle, near Dalkeith, was used by Mary Queen of Scots, whose retinue lived nearby in the area known as Little France.

She used the building as a hunting lodge and to visit the apartments of her Italian secretary David Rizzio, who was later murdered by a jealous Lord Darnley, Mary’s husband.

William Hay, the senior trustee of a family consortium that restored the castle in four years without financial aid from heritage groups, said the bulding was haunted.

He said: "From time to time an apparition may be seen, apparently of Elizabeth Rannie, who in 1770 had inherited a vast fortune and was persuaded to marry the shrewd and calculating Henry Dundas, the first Viscount Melville.

"This association led to her financial ruin and moral collapse, and her distraught spirit may be seen occasionally passing through the doorway of the library bar.

"When the ghost was first seen gliding through a solid wall we found a doorway in the spot she passed through when we stripped it back, which really was quite something."

Mr Hay added that restoring the castle was a labour of love. "I came across the castle when it was semi-derelict and it was always an ambition to restore it to its former glories," he said.

"It has been the ultimate labour of love but we now have 33 rooms and it is proving a popular venue for weddings and business conferences, and we also have plans to expand."

Queen Victoria also resided in the castle, as did George IV, who inspected the Lothian and Border Yeomanry on the south lawn.

Legacy Hotels Real Estate Investment Trust Reports  2002 Revenues Increased 6.7%, Including  11.6% Growth in the Fourth Quarter

Legacy Hotels Real Estate Investment Trust ("Legacy") (TSX: LGY.UN) today announced its unaudited financial results for the three months and the year ended December 31, 2002. All amounts are in Canadian dollars unless otherwise indicated. Legacy expects to release its 2002 annual report in mid-March and will hold its annual general meeting at 10:00 a.m. on April 24, 2003 at The Fairmont Royal York in Toronto.

"Legacy continued its solid operating performance in the fourth quarter, completing a year of impressive top-line results with revenue per available room ("RevPAR") rising 5.7% over the fourth quarter of 2001. For the year, Legacy posted a 3.4% RevPAR improvement and increased hotel EBITDA by 4.1%," said Neil J. Labatte, Legacy's President and Chief Operating Officer. "Legacy has benefited from its well-diversified Canadian portfolio and its operating performance has exceeded that of the overall Canadian lodging industry."

Added Mr. Labatte, "Although top-line operating growth was encouraging, our fourth quarter net income per unit and distributable income per unit were lower due to higher fixed costs, particularly insurance costs and property taxes, and the timing of The Fairmont Washington, D.C. acquisition.

Specifically, fourth quarter results were negatively impacted by the delay in the use of funds from the unit issuance in early November, which were used to acquire the Washington hotel in December, and the inclusion of one of the hotel's weakest months in the results for this quarter."

Three Months Ended December 31, 2002

Fourth quarter revenues increased 11.6% to $160.3 million on the strength of portfolio-wide RevPAR improvements and the additions of the Sheraton Suites Calgary Eau Claire on July 12, 2002 and The Fairmont Washington, D.C on December 4, 2002. These two acquisitions contributed $8.4 million in revenues during the quarter. Hotel EBITDA(1) for the three months ended December 31, 2002 was unchanged from last year at $27.5 million. Hotel EBITDA margin, defined as hotel EBITDA as a percentage of operating revenues, was 17.2% compared with 19.1% in the fourth quarter of 2001. This decline in margin relates primarily to a significant increase in insurance costs and the inclusion of the Washington hotel's December results. Legacy's fourth quarter margins are historically low due to the seasonality of travel demand and the fixed operating costs.

Net income of $7.6 million was down from $8.3 million in the fourth quarter of 2001. Fourth quarter distributable income(2) per unit was $0.02 compared with $0.16 in 2001. The convertible debenture distributions and the November unit offering negatively affected the distributable income per unit.  In addition, distributable income in the prior period included the one-time receipt of $6.4 million, or $0.08 per unit, relating to the purchase of The Fairmont Empress and Fairmont Le Château Frontenac.  RevPAR increased 5.7% for the quarter, driven by a 1.3 point improvement in occupancy and a 3.6% increase in average daily rate ("ADR"). RevPAR at the Fairmont managed properties was up 5.5% due to increases in both occupancy and ADR of 1.8 points and 2.5%, respectively. At the Delta managed properties, RevPAR improved 6.4% primarily from a 5.9% increase in ADR.  At December 31, 2002, Legacy had cash balances of $46.2 million. Legacy continues to be conservatively financed with a debt to total assets of 39.0%.

2002 Year-End Results

For the year ended December 31, 2002, Legacy reported operating revenues of $647.6 million, an increase of 6.7% over $606.8 million reported in 2001. Hotel EBITDA improved 4.1% to $146.0 million. The year-to-date growth in revenues is primarily attributable to portfolio-wide RevPAR improvements as well as the acquisitions of the Sheraton Suites Calgary Eau Claire in July 2002 and The Fairmont Washington, D.C. in December 2002. We anticipate significant revenue growth in 2003 following the full year inclusion of these two properties.

Legacy reported net income of $55.1 million for the year compared to $53.7 million in 2001. Distributable income per unit decreased to $0.57 from $0.77 in 2001. The February 2002 issuance of convertible debentures(3) and the unit offering in November negatively impacted distributable income per unit.

In 2002, Legacy's RevPAR rose 3.4% from improvements in both ADR and occupancy. RevPAR for Fairmont managed properties increased 2.4% as a result of growth in occupancy of 1.5 points and a slight increase in ADR. The Delta managed properties experienced better results with a 6.0% increase in RevPAR due to improvements in both occupancy and ADR of 0.7 points and 5.0%, respectively.

Corporate Developments

On December 4, 2002, Legacy completed its first acquisition outside Canada with the purchase of the Monarch Hotel in Washington, D.C, since re- flagged "The Fairmont Washington, D.C." Legacy paid approximately $238 million for the property and financed this transaction through the assumption of an existing mortgage of approximately $80 million and funds from Legacy's unit offering completed in November.

On November 21, 2002, Legacy completed a private placement of $100 million Series 3 senior unsecured debentures due December 15, 2003. The net proceeds were used to replenish the funds used to repay Legacy's Series 1B debentures, which matured on November 15, 2002.

On November 1, 2002, Legacy completed a unit offering of 19.5 million units for gross proceeds of approximately $150 million. Fairmont Hotels & Resorts Inc. ("FHR"), Legacy's largest unitholder, bought 6.5 million units to maintain its ownership position of approximately 35%.

In October as previously announced, Legacy entered into an agreement to purchase a AAA Five Diamond hotel located in the northwestern United States.

The acquisition is contingent on a number of conditions and if it proceeds, it is anticipated that the acquisition would close in mid-2003 at a purchase price of approximately US$100 million.

During the fourth quarter, a new labour contract was settled at the Delta Toronto East. Labour negotiations are in progress at Fairmont Le Château Frontenac following the expiration of the hotel's main labour contract on December 31, 2002. Although it is not possible to predict the outcome of negotiations, management is hopeful that negotiated contracts will be reached  without disruption. In 2002, ten hotels successfully settled new labour contracts. Four hotels have contracts expiring in 2003.

Legacy's Board of Trustees declared aggregate fourth quarter distributions of $0.185 per unit. Distributions were paid in two installments  this quarter due to the unit offering which closed on November 1, 2002. Legacy has maintained its current quarterly distribution level for the past six quarters. Distributions for the full year were $0.74 per unit compared to $0.87 per unit in 2001. Current distributions are at a level that the Board  feels is sustainable in light of current economic conditions. Legacy estimates that approximately 45% of its 2002 distributions will be taxable. The final tax analysis will be available on Legacy's website, www.legacyhotels.ca, by early March 2003.

Outlook

Commented Mr. Labatte, "Legacy's performance in 2002 benefited from its well diversified Canadian portfolio, given the country's solid economy and the perception that Canada is a safe travel destination. While leisure travel has remained strong, business travel continues to be below historical levels. We expect these trends to continue throughout 2003 as economic and political uncertainties persist in the United States. Minimal new hotel supply in our key markets should facilitate continued stability."

Mr. Labatte continued, "We are excited about the future of The Fairmont Washington, D.C. In 2003, our goal is to position this property to fully realize the upside potential once the U.S. economy improves. We expect significant growth to be realized at this property beginning in 2004."

Commenting on Legacy's future growth, Mr. Labatte concluded, "Legacy's fundamentals have not changed. The combination of the quality of our portfolio, our financial capability and our hotel management expertise positions us well for both internal and acquisition growth. We are currently pursuing expansion opportunities that we believe will complement our existing portfolio while increasing the long term value for our unitholders."

For detailed information,  go to  www.legacyhotels.ca

Legacy is Canada's premier hotel real estate investment trust with 23 luxury and first class hotels and resorts with over 10,000 guestrooms in Canada and the United States. The portfolio includes landmark properties such as Fairmont Le Château Frontenac, The Fairmont Royal York and The Fairmont Empress. The management companies of FHR operate all of Legacy's properties.

This press release contains certain forward-looking statements relating, but not limited to, Legacy's operations, anticipated financial performance, business prospects and strategies

Chou's new book a recipe for five-star hotel success

The China Post Taiwan  -  No one doubts his qualifications as Victor Chou, General Manager of The Westin Resort Ta Shee Taiwan, awards himself a "diploma." Having worked in hotel management for some 30 years, Chou has recently unveiled the secrets of his success in running an internationally renowned five-star hotel in his first book, entitled "A Five-star Diploma."

The "diploma" is not only a testament to Chou's career in hotel management, but also his work ethic and attention to detail in providing top-quality service.

Having failed twice in Taiwan's National Entrance Examinations (one for senior high school and the other for university), Chou subsequently accumulated his vast reservoir of knowledge and experience in hotel management by working, starting 30 years ago as an attendant at the Lai Lai Sheraton Hotel.

"Customers are always right. I never think they are demanding, and treat every request as reasonable," Chou says in his book. His devotion to work time and again earned deep trust from his bosses, and with that trust came promotions.

Distinguished quests

Chou has worked with several hotels over the course of his career. Before joining the Westin Ta Shee Resort (of the Hong Shee group), he served as Administrative Manager at the Sherwood Hotel. Under Chou's management, the Sherwood (located near the intersection of Min Sheng East Road and Tun Hua North Roads) was ranked on the list of the world's premier hotels, and had contracts with some 40 international banks in the neighborhood to serve their foreign guests. The most distinguished of these included former British Prime Minister Margaret Thatcher, former U.S. President George Bush, current U.S. Secretary of Defense Dick Cheney, and the Philippines' former First Lady, Imelda Marcos.

Golf tournaments

Chou is further heightening his experience in serving internationally renowned guests in his current position as the General Manager of the Westin Ta Shee, the only five-star hotel in Taiwan that features a 27-hole international standard golf course and hot spring/spa facilities. Chou is especially proud at having the Ta Shee golf course selected as the venue for the Johnny Walker Classic (Asia's foremost golf tournament) in 1999, which not only brought Tiger Woods and other top golfers, but also international sports journalists to Taiwan.

Later, the hotel hosted several other prominent golf events such as the first European Ladies' PGA tournament in Taiwan and the first International BMW Asian Cup, both in 2001. Chou last year also signed a three-year contract to bring the International Golf Ladies Tour to Taiwan. This all means that some 120 professional golf players will compete in Taiwan every spring, until 2005.

The Westin Ta Shee, located in Taoyuan, is about an hour away from Taipei and some 45 minutes from the CKS International Airport. When he joined the hotel in 1993, Chou did not bring workers with him from Taipei, but insisted on hiring local residents from the town of Ta Shee, with the commitment to having the hotel grow together with the town. Ta Shee, as a result, which was previously famous for its tasty dried soybean curds, is now better known as Taiwan's prime venue for international golf tournaments.

Surrounded by hills and situated on an area measuring 102 hectares, the Westin Ta Shee Resort also caters to corporate meetings and conferences. The resort was once again in the spotlight last August, as President Chen Shui-bian, Vice-President Annette Lu, and other high-ranking officials and scholars gathered there to discuss major issues for Taiwan's economic development.

As well as golfing facilities, the resort also offers hot spring and spa amenities. When the resort completed the hot spring and spa facilities several years ago, the Westin Ta Shee took its place as a grade "A" resort hotel, an ideal place for weary Taiwanese and foreigners alike to spend their vacations.

When assuming the post as General Manager in 1993, Chou asked his superiors for time in requiring the hotel to break even. A lot of time: seven years. However, under Chou's adroit leadership, the hotel actually started to contribute profits two years earlier than expected, and is now the most profitable business in the Hong Shee group

ASEANTA calls for more intra-ASEAN promotions 

TTG Asia  -  Instead  of depending on the fickle long-haul traveller, the ASEAN trade is prepared to count on ASEAN residents and their Asian neighbours in the increasing likelihood of a war breaking out in the Middle East.

Members of ASEANTA (ASEAN Tourism Association) this week agreed on the importance of boosting regional traffic flow and “enlarging the pie” of ASEAN visitors.

Focused campaigns and travel fairs in each other’s markets to show off the breadth and diversity of ASEAN’s attractions are being considered.

National Association of Travel Agents Singapore (NATAS) chief executive, Mr Robert Khoo, told TTG Asia ATF Official Daily: “We discussed how we can promote intra-ASEAN travel, and decided to reconvene the Intra-ASEAN Travel Committee to look at new initiatives. It will be meeting soon.”

NATAS president, Mr Lee Liat Cheng, said: “Expect to see many airlines repackaging their leisure deals in the months to come. They should be offering incentives that help Asians visit alternative regional destinations.

“My interest is in seeing the low fares offered for the ASEAN Air and Hotel Pass made available for Asia’s residents to explore the region.

“And although we must be sensitive to the major carriers plying regional routes, the authorities could consider giving access to a budget airline to operate at off-peak hours that does not clash with the bigger airlines. It may be the answer to taking intra-ASEAN travel to a truly mass level.”

Garuda Indonesia marketing planning and development vice-president, Mr Irman Imawan, countered this argument saying airlines were already offering the ASEAN circle fare to residents of the region, and the air pass fares were meant to encourage long-haul travellers to explore several ASEAN countries in one trip.

Philippine Airlines marketing support vice-president, Mr Felix Cruz, said: “Statistics do not show ASEAN residents want to visit more than one of their neighbouring countries per trip.”

But the travel agents said it was time to think differently and to start “new trends”.

Indonesian Hotel and Restaurants Association chairman, Ms Yanti Sukamdani Hardjoprakoso, suggested international airlines operating routes within ASEAN could work with hotels and agents to create intra-ASEAN promotions.

She said: “Some airlines have low loads on regional routes after their long-haul passengers disembark, and if they can give us special air fares, we can take low room rates, tour fares and transfers to the table to create an attractive deal for ASEAN travellers.”

Agency associations in Indonesia, Malaysia and Singapore have already initiated bilateral travel agreements, and expressed a desire for similar agreements with the remaining ASEAN countries.

A suggestion was also tabled for ASEAN+3partners, China and South Korea, to follow in Japan’s footsteps to set up an ASEAN Centre in their respective countries, to encourage South Koreans and mainland Chinese to visit ASEAN.

Taiwan gears for tourism explosion

iTechnology.co.za  -  Aggressive marketing has begun to make Taiwan the top tourist destination in Asia-Pacific, a region rich with cultural diversity, booming economies and big-spending visitors.

The tourism campaign forms part of a comprehensive and focused six-year strategy, called the National Development Plan, which was launched on January 1. The plan is aimed at restructuring the economy of the tiny island, changing the key components of its industrial base and streamlining the way government agencies work, to make dealing with them less cumbersome and bureaucratic.

The objective: to double the number of in-bound visitors, from its present 2,6 million annually, in six years.

In anticipation of an increased number of visitors, work has begun on 47 new hotels which, when completed, will deliver an additional 10 000 rooms, taking the total to 30 000.

In 2001 tourists spent close to R36-billion in Taiwan - which is expected to double by 2008.

The largest number of foreign visitors are from Japan - about 37 percent - second is Hong Kong at 16% and third the US. For their part, and contribution to the local and foreign tourism industries, about 18 million of Taiwan's population of 22 million take a holiday at least once a year.

Leisure industry leaders in the capital said the thrust of their marketing campaign contained messages that sold the country as a venue for relaxation, good and a varied selection of food, excellent shopping and sightseeing, especially at the Central Mountain range in the Taroko National Park, eastern Taiwan. Here, travel has been made easy through the use of freeways and tunnels cut through the mountains.

Luxurious doubledecker buses and motor cars move thousands of tourists through the mountains to see some of the most breath-taking sights in Asia-Pacific, and perhaps the world.

The tunnels and roads are an illustration of the ingenuity of civil engineering and a celebration of its accomplishments.

The economic success story that is Taiwan is also mentioned in the tourism marketing campaign. It is being used in the context that better times have arrived in the country - the evidence for which is found in the improved quality of life, a sharp drop in unemployment and increased business activity.

There are now more than 30 companies directly involved in the tourism sector, and service providers have in their employment about 50 percent of all of those who hold jobs.

In order to protect the integrity of the tourism industry, the state-created national tourism authority has put into place mechanisms that deal with complaints. It is also able to issue sanctions if guilt is proved in the case of the service provider.

And it seems one of the key objectives of the exercise has been achieved - there has been a drastic drop in the number of complaints against tourism-related businesses and service providers.


Taiwan: At a Glance

·  Taiwan is an island and has a population of 22 million. Its closest neighbour is mainland China, from which it relocated in 1949.

·  The seat of power is Taipei, the capital and a sophisticated and highly developed city, of first world standard. The system of government is democracy.

·  Unemployment stands at 4.5%, which numerically is believed to amount to about 500 000. The rate of crime is low, which makes Taiwan one of the safest countries in Asia-Pacific.

·  The currency of Taiwan is called the New Taiwan Dollar (NTD). One $1 US buys 34 NTDs, and R1 gets 4 NTDs.

·  The main language spoken in Taiwan is Chinese. However, most Taiwanese can also speak English.

·  To get to Taiwan, one has to go via Singapore or Hong Kong and take a connecting flight to Taipei.

·  South Africans need visas to enter Taiwan. This can be obtained, at no cost, from the Taipei Liaison Office in Pretoria, Johannesburg or Cape Town. There is no office in Durban.

Israeli tourism lowest level in 20 years

BusinessDay.com  -  Israel welcomed less than a million tourists in 2002, its lowest total in more than two decades, as the country's fighting with the Palestinians raged on, its statistics bureau said.

Only 862,000 tourists arrived in Israel last year, a drop of 30 percent over the previous year and a huge 70% slide from 2000, it said.

It marked the lowest level since 1982.

Most of those who choose to come to the Jewish state were from its main ally the United States. Some 206,000 Americans visited the country during the year, 23% of the total number.

Tourism, one of the country's main industries, has been hit hard by the Palestinian uprising which erupted in September 2000. Unemployment is rampant in the sector and dozens of hotels have closed their doors

Despite Virus Outbreaks, Cruise Lines Prove a Travel-Industry Bright Spot

eTurbo.com  -  In nearly 30 years of hitting more than her share of lido decks, Cindy Weinstein has learned a thing or two about cruising. Skip Bermuda in the summer -- too many teenagers. Keep an eye on the bar tab. And wash your hands every chance you get. On the eve of her 24th cruise earlier this month, the redheaded retiree added a new routine for the giddy walk up the gangway: a stash of alcohol wipes along with the bingo and beachwear. When Weinstein isn't cruising, she likes to think about cruising. But after a string of reports about sickly passengers infecting each other with a nasty stomach bug, her thoughts have turned to self-defense.

"I'm bringing some anti-bacterial soap and some Pepto- Bismol," said Weinstein, who decided not to bring latex gloves as well. "Maybe I'll press the elevator buttons with my elbow, but other than that, there's not much else you can do." The so-called Norwalk virus that has been making its rounds through cruise ships has added a new wrinkle to vacation-planning, but it doesn't seem to be spoiling the hunger for the high seas.

"There's no perfect vacation, but cruising is as close to perfect as it gets," said Weinstein, who has been picking up the pace lately to two or three voyages a year. "They feed you, they entertain you and they wait on you hand and foot; what's not to love about that? The whole Norwalk thing has been completely overblown." That, in essence, sums up the cruise industry these days. No problem seems big enough to keep people from setting off into the balmy sunset. Not the specter of terrorism or the prospect of war. Not even the recent "barf boat" outbreak. At a time when airlines are in turmoil and hotels are hurting, the cruise industry churns ahead as one of the rare bright spots in the travel industry.

Last year, passengers flocked to cruise ports around the country in record numbers, spreading the good times to local hotels and ship suppliers. In South Florida, for example, cruise ports are speeding up the recovery there, helping to make up for the dropoff in other travelers. The three largest cruise companies make money, and their stocks have held fairly steady on Wall Street. Cruise lines haven't said much about bookings so far this month, normally a prime time for Northerners to book a toasty cruise vacation. The first read on this year's business could come Thursday, when Royal Caribbean reports earnings. "We get the feeling that (it's) no disaster but no bonanza either," said analyst Peter McMullin of Ryan Beck & Co. If bookings are slower, it's likely due to the sour economy and not worries over the recent Norwalk scare, he said.

"It could have a bit of a short-term impact, but I don't think it will be a factor going forward." The cruise industry faced a slowdown even before the 2001 terrorist attacks. A boom in shipbuilding left lines flooded with capacity as the economy sputtered. After the attacks, the falloff in travel pushed two cruise lines into bankruptcy and forced layoffs at others. "A year ago, the cruise lines were in deep doo-doo, because in most cases you've got to get on a plane before you get to the cruise," McMullin said.

But thanks to heavy discounting and hard-core cruise addicts, the industry is surging ahead once again. About 7.4 million people took cruises last year, up from 6.9 million in 2001, according to Cruise Lines International Association. "The travel industry got punched in the stomach after Sept. 11, and when you look at other things on the horizon -- a potential war and the economy -- the cruise industry is holding its own pretty darned well," said Bob Sharak, executive director of CLIA. Overall travel spending is expected to decline again in 2002, mainly due to a continued falloff in business trips, according to the Travel Industry Association of America.

The country's travel budget has gained ground since 2001, when travel declined by $33 billion, but travel spending is still way off its peak of $570.5 billion in 2000. While big airlines pare flights and hotels slow expansion plans, cruise lines keep putting ever-more gigantic ships to sea. At least 14 new ships are slated to join the fleet this year, including the Queen Mary 2, decked with a squad of proper British nannies and the first seagoing planetarium. At 23 stories tall and more than three football fields long, the $800 million ship will be the largest ocean liner ever built. The upcoming ships will join dozens of new ones already in the water. Another 14 are planned or under construction. If all goes as planned, the number of berths will reach 250,000 in 2006, almost double what was available five years ago.

Cruise lines moved some ships closer to travelers who weren't willing to fly, putting them within a day's drive where possible. Now, regional markets such as Baltimore, New Orleans, and Galveston, Texas, are gaining ground as cruising ports. But South Florida remains the hub for Caribbean cruising, and its ports are thriving. Miami, the self- anointed "cruise capital of the world," saw a 7 percent increase in passengers last year. Fort Lauderdale reports a 13 percent increase amid a large cruise expansion there. Cruise traffic at Port Canaveral, home to Disney's popular cruise line, is up about 5 percent.

The new ships spin off a beehive of economic activity in South Florida. Port Everglades in Fort Lauderdale, for example, has gotten a major boost from cruising, and it's challenging Miami's hold as the top cruise port. One reason the port has been so popular is the nearby Fort Lauderdale/Hollywood International Airport, where it's possible to get off a plane, get checked in at the port and be onboard sipping the first cocktail in under an hour. In part due to cruisers, the Fort Lauderdale airport was one of the fastest to recover from the Sept. 11 fallout.

At the same time, more people are driving rather than flying to cruise ports, which boosts parking revenue at the port. This year, Fort Lauderdale expects to herd about 3.8 million people on and off cruise ships, resulting in revenue of more than $27 million from port usage fees paid by the cruise lines. With so many ships being built, including a new breed of "mega ships" capable of carrying 5,000 people each, the port is adding terminals and parking garages to handle the growth. Within 10 years or so, cruise traffic is projected to double to about 7 million passengers a year, port officials say.

With bigger ships, cold storage facilities at Port Everglades are buzzing to keep the ships stocked. "When you think about feeding 2,000 or more people plus the crew, you've got to have enough supplies for the entire week; you can't run out," said Carlos Buqueras, director of cruise marketing at Port Everglades. "Think about all the meat and the eggs, and of course, the little umbrellas for the tropical drinks." The cruise boom extends beyond the port, too. About 10 percent of cruise passengers spend at least one night in Fort Lauderdale before or after a cruise, according to the Greater Fort Lauderdale Convention and Visitors Bureau.

"People are spending more at hotels, and part of the reason is the cruise industry," said Nicki E. Grossman, president of the bureau. For cruisers, the ballooning capacity has resulted in a steady drop in prices under the pressure to fill the ships. It's fairly easy to find a seven-day Caribbean cruise for a base price of $500 a person, for example, not including taxes and other add-ons. "We're seeing some of the best rates we've ever seen, from the least expensive to the most expensive cruises," said travel agent Howard Moses, president of the Cruise Authority in Marietta. The industry's pell-mell growth and price wars also have changed the flavor of a vacation at sea. "The ambience is going down with the prices," says Evelyn Danzinger, just back from an eight-day jaunt through the Caribbean. "People used to dress up, but now they look like they're getting ready to clean out the garage.

When I go to a show, I d

on't want to sit next to some guy in a tank top." Cruise veterans have also noticed that their "all- inclusive" trips are getting hit with a flood of pay-for extras as cruise operators scramble to make up for the rock-bottom fares. From pastry carts to the Pilates exercise class that might come afterward, cruisers can run up quite a tab beyond slot machines and cocktails. "They're charging for all the little things now," Weinstein notes. "It used to be less expensive." It's the big things, though, that get the attention of both longtime cruisers and the first-timers the industry constantly seeks to entice.

The party boats of years past are being replaced by floating amusement parks that feature ice skating rinks, rock climbing walls and water slides. The new norm in dining is the onboard steakhouse or supper club, where cruisers can eat when they feel like it -- for an extra fee -- if they want a break from the structure and forced conviviality of the dining room. "Eating, drinking and gambling will always be a part of cruise life, but there are a lot more choices now," says Micky Arison, chairman and chief executive of Carnival Corp., the world's largest and most profitable cruise company. "What we're trying to do is give people what they can get on land. ... In some cases, the ship has become a destination in itself." So far, no fly in the potato salad seems to scare off cruisers.

The recent Norwalk virus episodes are a case in point. Amid the string of outbreaks, cruise lines beefed up cleaning in the spotlight of unwelcome news reports. On many recent sailings, the salt air has had a strong hint of disinfectant as crew members sprayed, wiped and washed anything they could get their latex-gloved hands on. "The atmosphere turned pretty morbid," said Dacula resident Patricia Vitt, who endured an outbreak aboard the Disney Magic over Thanksgiving. "People were scrubbing left and right." On some ships, the captain's "welcome aboard" cocktail party, a staple of cruise life, has been a bit less chummy. Some captains have nixed handshakes in the receiving line, opting for a bump of the elbows instead.

Cruise line operators and travel agents hope the outbreaks are over as the industry heads into its bread- and-butter "wave season," the period from January through March when most vacationers book summer cruises. If the Vitt family is any indication, there apparently isn't much that can drown out the lure of a cruise ship. Vitt spent a good bit of the cruise in the cabin's bathroom as the virus jumped from her to her son and daughter, yet she's girding for a another cruise in May. "I hate to take the chance, but my kids are driving me nuts because they can't wait to go again," said Vitt, who was offered a discount from Disney after the Norwalk outbreak. "It breaks my heart to hear my 6- year-old say he had to stay in his room while the other kids were playing with Goofy. --- I have to try again

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