Asia tourism chiefs seek ways to beat SARS  fallout

Stuff.co.nz  -  Asia-Pacific tourism chiefs put a brave face on the deadly Sars virus yesterday, saying the outbreak could cut reliance on long-haul tourists and strengthen a trend toward geographic diversification.

The Severe Acute Respiratory Syndrome (SARS) virus, spread by travellers, has savaged key Asian tourist destinations such as Hong Kong and also airlines in recent weeks.

Tourism executives said while the market was grim, the only option was to spend money promoting Asian destinations other than those hard hit by Sars and tap into growing domestic travel within big countries such as China, India and Indonesia.

"It has had an impact on our business and we have to learn to react and to live with it, to find ways to market different places," said Geoff Garside, senior vice president Asia Pacific and Australia for Marriott International Inc.

Garside was speaking on the sidelines of a meeting of the Pacific Asia Travel Association (PATA) on Bali island, itself no stranger to bad headlines, having to contend with bomb attacks last year that killed 202 people, mainly foreign tourists.

SARS has infected more than 3300 people and killed at least 144 in some 20 countries in the last six weeks since first showing up in southern China in November. It has changed lifestyles and hurt consumption in the worst affected places such as Hong Kong and Singapore, but also Vietnam and southern China.

"Hotel rates have dropped, load factor has dropped, everything has dropped ... We hope it will be over soon," said Nguyen Tuanh Anh, vice manager of Vietnam Airlines.

Garside said there was no point sitting still.

When looters were burning buildings and running riot in Jakarta in 1998 amid a political crisis that led to former President Suharto's downfall, Marriott sniffed an opportunity.

Its luxury hotel in the Indonesian capital now posts a profitable 40-50 per cent occupancy rate, one of the city's best.

"We started when the economy in Indonesia was down, occupancy rates in Jakarta in 1998-1999 were very low," he said.

Garside said geographical diversification was vital in a bid to ease risk in the region, particularly following the terror attacks in Bali and the Iraq war, which had softened demand for long-haul travel from Europe and the United States

Germany: Luxury hotels in Berlin struggle to lure guests

(Bluebull) - Luxury hotels of the German capital, struggling with empty rooms and a drop in the number of visitors, are trying to lure possible customers with designer restaurants, secretaries and discounts. When the Ritz-Carlton hotel opens in December this year, guests will dine at a 150-year-old French brasserie imported from the south of Paris. Hotel personnel will schedule appointments.

Berlin, a favourite place of real estate developers since the fall of the wall 14 years ago, has 15 five-star hotels and nine more are planned to open by 2005. However, the opening of the new hotels will make it similar to London, the UK capital with 10 times as many overnight hotel guests. A sector analyst commented that there's a huge supply of hotels in Berlin and the construction fever didn't slow down, in spite of the industry's worsening performance. Hotel investors are expecting a storm of tourists and business travellers to the new capital.

Since the 2001 recession, the German economy has barely increased. Berlin, which has a population of about 3.4 million and an unemployment rate of almost twice the national average, even contracted by 0.7% last year.

Hong Kong  PATA Chapter ready to unite trade against SARS

The Hong Kong PATA Chapter will take on an advocacy role to help deal with the Severe Acute Respiratory Syndrome (SARS) crisis.

"Using the PATA network means that we can bring outside expertise into a local situation, while also building up the archives of experience that can benefit others in the future," said the chapter's chairman, Ted Theobald.

"While learning how to deal with a crises ourselves, we can also apply the lessons learned by others that are relevant."

The PATA chapter will also work to unite all sectors of the travel trade as this is not a concern of one individual segment.

"It could speak without bias for all the industry and support any initiatives undertaken by either the private or government sector. Through its direct connections to PATA the chapter has access to an extensive array of international experience, expertise and research, which could aid the Chapter to take on a vital role in co-ordinating and leading industry response to crises," Theobald added.

Dubai’s visitors numbers rise again

Britain and Ireland together were yet again the strongest European source markets to Dubai in 2002 with 454,378 visitors recorded by hotels and hotel apartments.  The year on year growth in visitors from the UK & Ireland was 27.8 per cent in 2002, which is a significant increase when compared with the 15.6 per cent rise seen in 2001.  

The Dubai Department of Tourism and Commerce Marketing's latest worldwide visitor statistics for 2002 demonstrate a staggering 31.1 per cent growth to exceed 4.7 million.  This is at least the fourteenth consecutive annual rise with 447,006 of these visitors originating from the UK, and 7,372 from Ireland. 

A recent World Tourism Organization report stated that Dubai experienced the world's highest growth rate of international visitors during 2002 (31.1 per cent) and the destination received 0.7 per cent of the 715 million international tourists in that year. 

"This surge in demand is a reflection of Dubai's combination of the many and diverse attractions of a tourist destination with the facilities and services of one of the world's major international business centres.  With extensive product and infrastructure developments, ambitious - though realistic - long-term targets for worldwide visitor arrivals to Dubai are 15 million visitors by 2010," said Bärbel Kirchner, director of the UK and Ireland office of the Dubai Department of Tourism and Commerce Marketing (DTCM). 

"The emirate is now well-positioned and recognised as a year-round destination in its own right, offering the international visitor a complete and safe holiday experience," concluded Kirchner.  

Hong Kong  Peninsula quells temporary shut-down rumour

TravelWeeklyEast.com  -  Rumours that The Peninsula Hong Kong might shut down for a month to cope with expensive operations costs are unfounded, said its director of marketing, Arthur Kiong.

Grosvenor House, Dubai Marina’s first hotel, is on a mission to re-design the meaning of ‘hospitality’

As ground is broken at the first hotel complex on the Dubai Marina, to be named Grosvenor House Hotel and Apartments, West Marina Beach Resort by Le Meridien, the word on the streets of Dubai is that new records of product and service excellence in the hospitality sector are set to be smashed too.

According to Pam Wilby, locally a known ‘connoisseur of Royal Living’ and the general manager entrusted to turn vision to reality, the grand-deluxe Grosvenor House is set to be the exclusive address in the upcoming Dubai Marina – echoing the global standing of its London-based namesake.

Like this new neighbourhood, earmarked to house more than 10,000 people within a couple of years, the hotel complex, says Wilby, will fast become the ‘place to be’ when it opens in late 2004 : “I make no bones when I say that Grosvenor House will create new dimensions in the industry, not just because of its stunning interiors but also in the quality and style of service.”

Wilby is also at the helm of the nearby Le Royal Méridien Beach Resort & Spa. This  property that has an envious track record of repeat guests under the guise of  ‘Royal Amabassadors’, a denomination that Wilby and her court bestowed on frequent guests, many of whom carry business cards to that effect. “Our Ambassadors ‘sell’ our hotel, not because they have to, but because they want to.”

While success reigns on the beach, she explained the essence and individuality of Grosvenor House : “From the foundations up, the stunning hotel will be custom-designed to reflect the essence of Arabia fused with the very latest in technology, design and luxury.

“But just as the property design and construction will set new benchmarks, so will the staff’s commitment to service at every level.

“In fact, I can see the project’s many contemporary signature elements – both bricks and mortar and in staff attitude - creating new buzz-words in the global hospitality industry,” she promises, kicking off with the self-awarded grand-deluxe positioning.

“The established five-star certification will not do justice to this project, so from the outset, Sheikh Ahmed has driven our objectives on course to break barriers. The grand-deluxe denomination fits our vision perfectly,” assures Wilby.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates Airline and President of Dubai Civil Aviation is the man behind the pioneering, multi-use, 45-storey complex, named Grosvenor House, after the legendary landmark

Le Meridien Grosvenor House in Park Lane, one of London’s most famous locations.

 “It is ironic but comes as no surprise that Sheikh Ahmed is behind the first hotel on the Marina,” said Ali Al Mubarak Al Soori, head of the Chairman’s Office and Facilities Management at Emirates Airline and the owner’s representative of the Grosvenor House project.

“His Highness was one of the first to appreciate the potential of tourism as a growth engine for Dubai, initiating the construction of the first new beach hotel for more than a decade with Le Royal Méridien Beach Resort & Spa some nine years ago.”

He agrees with Wilby and seems under no illusion that Grosvenor House will stand among the most exclusive hotels around the world in terms of product and service offering. He explained: “Grosvenor House will be second-to-none, reflecting a position of sheer luxury and exclusivity in the hospitality sector.”

Wilby confirmed that the interiors of the hotel and apartments will be ultra-luxurious, distinguished by superb décor and outstanding amenities beyond the expected. 

She continued: “What we are looking towards is establishing a whole new meaning to the words elegance and service, and, I don’t mean lip-service – we a team with a vision and we mean to deliver.

“This will be visible in the grandeur of the interior décor but my ultimate aim is to ensure that the essence of the ‘guest experience’ will be present across the board.”

Wilby say that aside from the tasteful design, this will be achieved by a service brigade who truly enjoys the very core of the hospitality industry : “It should be in our blood as hoteliers to quite simply, make people happy by excellence in delivery.”

But seeing is believing, and on fixtures, fittings and facilities, the architect and interior plans of the Grosvenor House project look equipped to make a mark on a city that will have in excess of 37 five-star hotels – a one assumed seven-star landmark property, by the time doors open for business.

Grosvenor House will have 218 rooms and suites in the luxurious, self-contained hotel tower, as well as 206, one-, two- and three-bedroom butler-serviced apartments, All of the grand-deluxe accommodation, whether for hotel guests or apartment residents, will have sweeping views of the skyline, marina and the Arabian Gulf.

The interior design team have absorbed Sheikh Ahmed’s vision by painting a modern, contemporary yet comfortable picture of ‘tomorrow’s’ hotel lifestyle.

While furnishings look set to follow clean lines, a vibrant, autumnal colour palette and textured materials give depth and substance that speaks volumes in art form, thus assumed as able to maintain an audience when complete.

On lifestyle, as crucial to Dubai residents and visitors as it is to any city of vibrancy and success, Grosvenor House will comprise a mixed portfolio of fashionable restaurants and bars – designed to turn the Dubai restaurant scene on its head.

Wilby declined to expand on details of the restaurants – “we have to retain an element of surprise in a competitive marketplace,” she explained - but confirmed they will all be new concepts ranging from hip to lively to formal dining.

She did state that the project team has also focused on creating innovative personal grooming, health and spa facilities exclusive to Grosvenor House residents.

“We have been fast to recognise that personal grooming, from top to toe and in between, is as important to today’s lifestyle. So, we are aiming to ensure a seamless lifestyle service, from valet parking to suit pressing to great restaurants, a tip-top manicure and more,” said Wilby.

“This means that the Grosvenor House leisure and beauty facilities will be as upbeat, modern and efficient in service delivery as our restaurants and bars.”

Turning to event and business facilities at Grosvenor House, there will be a dedicated conference center, which like both the hotel and apartments, will have a separate entrance.

It will feature cutting-edge technology, with a huge multi-use ballroom, boardrooms, syndicate break-out rooms and a service-driven, quality-aware business support centre.

While it is unlikely that we have heard the last from Wilby on Dubai’s latest hospitality landmark, she concludes now by saying : “This project is considered a ground-breaker on the marina development – as well as in Dubai’s burgeoning hospitality sector.

“Frankly, the project is set to stand its own among some of the world’s most acclaimed hotels.”

PATA and SPTO sign memorandum of understanding

The Pacific Asia Travel Association (PATA) and the South Pacific Tourism Organisation (SPTO) yesterday signed a Memorandum of Understanding (MOU) at the 52nd PATA Annual Conference.

The MOU’s objective is to pave the way for streamlined communications between the two organisations, ensuring that they work together as much as possible to deliver maximum benefits to their respective members.

The agreement was signed by PATA President and CEO, Mr. Peter de Jong and SPTO Deputy Chairman, Mr. Bill Gavoka. The signing was witnessed by Tonga’s Tourism Minister, Mr. Mussao Paunga, and Fiji’s Tourism Minister, Mr. Pita Nacuva.

Mr. de Jong said: "PATA and SPTO will both benefit from this new exchange of information resources. The SPTO brings local access and knowledge we wouldn't otherwise have."

Mr. Gavoka added: "The SPTO and its members can benefit from PATA’s global network and its marketing out-reach on behalf of the South Pacific."

This MOU continues PATA’s efforts to maximise benefits for its Pacific-based membership. For further information e-mail PATA Senior Advisor-Pacific Division, Mr. Ian Kennedy. E-mail: pata@pata.org.au.

Economy, SARS to blight hotels despite war end

(Reuters) - Peace may slowly be returning to Iraq, but Europe's hotels and leisure sector looks set to remain blighted by the aftershocks of war, the SARS epidemic in Asia and weak corporate profitability.

No-one in Europe is expecting a blow to hotels and tour operators on the scale seen in Hong Kong, where fear of the deadly SARS virus has reduced some hotels' occupancy rates to just 10 percent when they would normally be fully booked.

But the triple whammy of SARS, the war and a global slowdown has seen business and leisure travel bookings slashed. And even though hostilities in Iraq are subsiding, the threat of terror attacks is as real as ever.

"The war situation has been overhanging the sector for a while and any resolution should on balance be positive for hotel and tourism stocks," said Sahill Shan, analyst at British brokers TD Waterhouse.

"But you have to temper your enthusiasm. In terms of actual demand things are going to be tempered by the macroeconomic environment," Shan added.

While there won't be any actual winners from the current depressed state of the market, not every player is affected in the same way. Airlines like Hong Kong's Cathay Pacific have been severely shaken, while mass-market holiday travel groups are expecting a rapid bounce-back.

"Business is surprisingly bouyant, there may be a fall-off from the figures we saw last year, but not a significant one," said Sean Tipton of the Association of British Travel Agents.

"The market for summer bookings is down about 15 percent, but because the war seems to be drawing to a close our members are anecdotally reporting a lot of interest now," Tipton said.

Many tour operators said at the height of the war they expected holidaymakers to postpone travel plans, not cancel them, and foresaw huge pent-up demand that may now be materialising.

NOT OVER YET

But Sol Melia, the world's largest resort hotel chain, joined other hotel operators in presenting a cautious outlook.

"The conflict is not over yet by any means...there is still a lot of uncertainty," a spokeswoman at Sol Melia told Reuters on Tuesday. "We prefer to maintain our very cautious policy and not give forecasts, as any change (in the situation) could have an effect on them."

TD Waterhouse's Shan said the end to hostilities in Iraq could offer a buying opportunity to canny investors.

"I think you need to look at the leisure sector more favourably but you'd have to be pretty selective. The Iraq situation is just one issue and terrorism is still playing on people's minds," he said.

"But ratings are so low it won't take much to get the stocks moving."

CUT THE TRAVEL BUDGET

But for the hotel groups whose fortunes are strongly dependent on the business traveller, there will be no such immediate recovery, said Julian Easthope, analyst at UBS Warburg in London.

"The trouble is that corporate profitability is coming under pressure and that's the key driver. When profits fall, the easiest thing to cut is the travel budget," Easthope said. UBS Warburg has cut its forecasts for all of the major European hotel stocks, such as France's Accor Britain's Hilton Group and Spain's Sol Melia  and has "Neutral 2" ratings on all three.

Easthope said in a reasearch note that a later than expected start to the war and the SARS outbreak had meant the first quarter had turned out even worse than expected -- but economic weakness would eclipse both as the industry's main headache.

Defensive hotel chains like the UK's low-price Travel Inn chain, and even Accor with its exposure to budget hotels and motels, could emerge as the best plays in a battered market, Easthope believes.

And although the out-and-out leisure operators will be rather better off than the business players, one of the top names in that market is one to avoid, he said

HVS International announces Hotel Management Division

HVS International has welcomed the Six Hats management company of Boulder, Colorado, into the HVS family, and is pleased to announce the launch of HVS Hotel Management, a new division of the firm, providing worldwide hotel and resort management capabilities.

HVS Hotel Management is headed by Dan King, CHA, who leads a team of seasoned operations and marketing professionals. Formed in 1999, the team has managed over 40 hotels in 15 states and two countries. Specializing in distressed properties and turn around situations, HVS Hotel Management performs all accounting services out of its central office. The firm has acted as the court appointed receiver for hotels in seven states.

Prior to forming Six Hats, King worked for HSBC banking group as a Vice President - Senior Asset Manager through the 1990’s. While there, King worked on the management and disposition of numerous lodging facilities and other commercial real estate properties. A graduate of Cornell University’s School of Hotel Management, King believes that the key to maximizing hotel revenues lies in staff development. “It is easy to control the numbers and capital projects, but developing superior service standards at the property level are what will turn the hotel into a winner: regardless of the property’s price point”

Daily operations of hotels are overseen by Chief Operating Officer, Hans Desai, CHA. Desai is a graduate of Michigan State University’s School of Hotel and Restaurant Management and serves on their Alumni Board of Directors. Before joining Six Hats, Desai held a position on the Marketing Board of Directors for Starwood Hotels and Resorts and served as Vice President of the Metro Denver Hotel Association. Desai’s 25 year career includes positions at Fairmont Hotels, Mandarin Oriental Hotel Group and Hyatt Hotels in the continental United States as well as Hawaii, Puerto Rico, Mexico and Macao.

HVS Hotel Management seeks third party management contracts with both investment groups and lending institutions. Management fee structures are highly incentivized. Drawing upon the combined resources of the HVS family, HVS Hotel Management is equipped to assist clients in all aspects of hotel ownership from due diligence services through asset disposition.

For additional information regarding HVS Hotel Management., please contact Dan King at dking@hvshotels.com, or call 303-554-9766 ext 11. 

Gulf Air CEO says tourism industry must change to counter effects of global downturn

James Hogan, president and chief executive of Gulf Air, urged the tourism and hospitality sector in Dubai that change and reaction to altered consumer needs is critical for success.

Hogan was addressing industry leaders at the Dubai chapter of Skal, and admitted that the airline industry was facing its worst-ever spell, following on from the war in Iraq and the SARS crisis.

But he stressed: “This is part of the cyclical nature of business – and the region will bounce back, and sooner rather than later.

“What is critical for all of us in the service industry is that we look to change and adapt to take our businesses forward. And following this global downturn in tourism, we have to identify the gaps in operations, as we – and the customer – embark on a journey of change.”

He admitted that lessons will be learned from business operations over the last couple of months and said: “We all have to make sure our business processes are strong, so we can re-shape the structure to pass on the best possible benefit directly to the customer.”

Hogan added that he also believed Gulf Air was well placed to make a quick recovery from the downturn which occurred at the back end of March and early April.

“Although we are only in the initial phase of our three-year turnaround strategy, the changes we have implemented to date have made a quantifiable difference to the commercial operation of the airline,” he said.

Despite the negative impact of the conflict, Gulf Air achieved an average 3.7 per cent improvement in traffic over the first quarter of 2003 compared to the same period last year.

Hogan also used the occasion to reveal the airline’s new corporate identity, which he said, represents the more serious and fundamental changes taking place at every level in the airline.

“In reshaping Gulf Air to operate in the competitive market, it is our aim to be distinguishable from our competitors, by moving away from the monotony and predictability of a generic international airline, hence this bold contemporary new look”

Following questions on the airline’s commitment to the region, Hogan said: “We feel destination management is key, and we will be pro-active in promoting Abu Dhabi, Bahrain and Oman around the world, especially in Europe.”

The move to destination marketing is considered essential by many in the tourism sector at present; the luxury hotel group Le Meridien, for example, has dispensed with its traditional “brand presence” at the upcoming Arabian Travel Market (May 6-9) and is putting its drive and market weight behind a destination drive.

The Dubai chapter of Skal, the international organisation of tourism leaders, was launched in September with the support of Dubai Tourism & Commerce Marketing (DTCM), and 20 founding members. The membership has risen to more than 50 in just six months.

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

IH&RA 40th Annual Congress Rescheduled for 5-9 December 2003 

The International Hotel & Restaurant Association (IH&RA) 40th Annual Congress has been rescheduled to take place in Cairo, Egypt 5-9 December 2003, instead of the previously announced dates of 3-7 October 2003.

This decision was made in response to the impact of recent world events on hospitality and tourism, the notable shifts in tourism supply and demand and the current trend of travellers postponing or delaying business and leisure travel due to economic factors. These trends and their impact on hospitality and the global tourism industry will be the focus of the Congress which includes a four-day educational program featuring leading hospitality industry professionals and industry analysts discussing the challenges of "Managing Through Rapidly Changing Times."

"The decision to reschedule the IH&RA 40th Annual Congress was taken after careful consideration and consultation with our members, with the international organizations with which we work and with our industry partners in the private sector," said Alain-Philippe Feutré, IH&RA CEO. IH&RA members include national hotel and restaurant associations in some 100 countries around the globe and international and national hotel and restaurant chains representing some 50 brands. Through its national association membership, IH&RA represents small and medium-sized hospitality enterprises (SMEs) all over the world, which account for the major share of the international hospitality market. Through its chain membership, IH&RA represents major hospitality corporations operating globally or regionally.

IH&RA is the only Association exclusively dedicated to representing hotels and restaurants worldwide with International Non-Governmental Organisation status with the United Nations (UN). The Association has long-standing ties with the UN and its specialized agencies such as the International Labour Organization, the World Tourism Organisation, the World Trade Organisation, the United Nations Environment Programme, as well as inter-governmental agencies such as the International Organisation of Employers, the International Standards Organisation and the Organisation for Economic Co-operation & Development. Through its monitoring and lobbying activities, IH&RA actively resists potentially damaging or costly attempts to regulate the hospitality industry worldwide, estimated to comprise 300,000 hotels and 8 million restaurants, employ 60 million people and contribute 950 billion USD annually to the global economy.

The IH&RA Congress is a truly international hospitality event, welcoming over 500 hospitality executives from around the world. The profile of attendees includes chief executives from international and national hotel and restaurant chains; chief executives from national associations of hotels and restaurants; independent hoteliers and restaurateurs; hospitality industry suppliers and service providers; industry experts from leading international hospitality educational centres; hospitality industry consultants; and chief executive officers from international organisations.

The 2003 Congress will be held in Cairo, hosted by IH&RA members, the Egyptian Hotel and Restaurant Association and the Egyptian Tourism Federation. For more information about the IH&RA 40th Annual Congress or to receive information about sponsorship or exhibition opportunities, please contact Béatrice Maraval, IH&RA Director of Operations, at maraval@ih-ra.com or tel: + 33 (0) 1 44 88 92 23 or visit the IH&RA website: www.ih-ra.com/events