Hopes rise over fight against SARS

The World Heath Organization has congratulated Vietnam for being the first country to contain SARS.

(CNN) -  And it says the situation has "stabilized" in Hong Kong, Singapore and Toronto, among the areas hit hardest by the deadly virus.

In a bright spot after weeks of bleak medical news from Asia, WHO officials said Monday there had not been any SARS cases identified in Vietnam since April 8 -- meaning 20 days had passed since the last recorded infection.

However, the organization said it was essential to remain vigilant and monitor the situation closely for any new cases entering Vietnam.

The WHO says the 20-day timescale -- twice the incubation period for the disease -- is the limit required to confirm containment of the virus.

Since the outbreak began in February, Vietnam has had five deaths from SARS and 63 cases -- all but five of whom have been discharged from hospital after successful treatment.

Congratulating Vietnam on its success, WHO Representative Pascale Brudon said it was "essential to identify the cases very fast, and isolate them properly so they cannot pass the disease onto others. Vietnam did this very well."

Meanwhile authorities in neighboring China have intensified their fight against SARS.

Mainland China and Hong Kong have been hardest hit, together accounting for more than two thirds of the global death toll of 329. More than 5,200 have been infected, although many of these have recovered.

Vietnam has closed its northern border with China indefinitely.

Beijing authorities Sunday ordered the temporary closure of public places like theaters and libraries and suspended the approval of marriages in an effort to prevent gatherings where SARS can be spread.

City officials have also set aside a 40-hectare (98-acre) area in the northern suburbs for the construction of a special quarantine camp.

On Monday, China said eight more people died and another 203 were infected by the virus, taking the death toll to 139 and the number of cases to 3,106.

Across the Taiwan Strait, Taipei announced the island's first SARS death and imposed a 10-day mandatory quarantine on all people arriving from areas hit hard by the flu-like disease.

In Singapore meanwhile, health officials have announced hospitals will turn away visitors. Authorities in the city-state also planned to close dozens of food markets on Monday for a mass cleaning. Two more deaths reported Sunday took Singapore's total death toll from SARS to 21.

Over the weekend health ministers from around Asia met in the Malaysian capital Kuala Lumpur to hammer out a battle plan against SARS.

More airport screening will be introduced, along with travel bans on suspected SARS sufferers and health declarations for travelers from affected countries.

Places like Hong Kong have already started using infra-red temperature scanners to check inbound travelers for fever at the busiest border crossing between the territory and mainland China.

Hong said on Monday five more people had died there from the virus and another 14 had been infected, taking the toll to 38 dead and 1,557 cases.

In other developments

• The head of the WHO believes there is still time to halt the global spread of the disease if affected countries take appropriate measures. In an interview Sunday with the British Broadcasting Corporation, Gro Harlem Brundtland said SARS did not necessarily have to become an endemic virus on the scale of the Spanish Influenza or HIV. "I think we still have a window of opportunity," she said.

• U.S.-based health officials say SARS can be contained although it is unlikely it will be eradicated. "If we do the kind of common-sense public health measures we know work, we ought to be able to stop it from being a global pandemic," Dr. Julie Gerberding, director of the Centers for Disease Control and Prevention, told CBS.

• At least five major cruise lines are asking passengers who have recently been to SARS affected areas to be medically screened before boarding as a way to head off SARS.

Hong Kong remains safe place to live: Medical expert

TravelWeeklyEast.com  -  Special Report from the “Fearbusters” workshop in Hong Kong, held at the Island Shangri-La, April 26.

HONG KONG - More than 130 people from Hong Kong’s community and tourism industry attended the “Fearbusters” workshop, organised jointly by the Civic Exchange, TravelWeekly and Shangri-La Hotels & Resorts, on Saturday. The objective of the workshop themed “A Turning Point in the SARS Outbreak” was to create a community of practice of Hong Kong residents to rebuild trust in the “safety” of the city after the outbreak. The majority of participants did not wear masks. TravelWeekly reports.

Professor Malik Peiris, Faculty of Medicine, Department of Microbiology, University of Hong Kong, reassured participants that Hong Kong remained a safe place to live.

He said new, infectious diseases have been around all over the world, citing the foot and mouth outbreak in the UK, the Nipah virus in Malaysia and the West Nile virus in the US.

“If this had happened 50 years ago, only a few people would have got it and it would have stopped. But the movement of people is so great and rapid these days that the opportunities to spread are great.”

He said that SARS was most likely caused by a new coronavirus “that has jumped from animals to humans although it is unclear which animal”.

He said, “New infectious diseases that arise from animals and transferred to humans have arisen in other parts of the world so Hong Kong's predicament is not unique.

“Dense population centres that are in close proximity to intense husbandry facilitate transmission. It is unlikely that SARS can be eliminated but it can be controlled.

“We will all have to learn to live with this new disease like we have done with other diseases. The genome sequencing of the virus, which was done in record time, will eventually translate into useful knowledge for disease control and prevention. There has been under-funding in the research and study of infectious diseases in the past, which needs to be corrected.” 

Winston Hotels to Transfer 33 Management Contracts to New Management Company

Winston Hotels, Inc. a real estate investment trust (REIT) and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced that it intends to terminate its 33 management contracts with Interstate Hotels & Resorts, Inc. effective July 1, 2003. These properties along with the hotels' management and employees will transfer to Alliance Hospitality Management, LLC, a newly created hotel management company that is owned by Atlanta-based Noble Investment Group, Ltd., a nationally respected hospitality company and hotel industry veteran Dale M. Turner, CHA.

Winston acquired leasehold interests for 47 of its hotels from Interstate's predecessor company, MeriStar Hotels & Resorts on July 1, 2002. Interstate currently manages 33 hotels for Winston. Following the first year after acquiring its leasehold interests, Winston has the option of terminating its management contracts with Interstate at any time.

"Interstate has done an excellent job of operating our properties," said Bob Winston, chief executive officer. "However, we believe that we can better asset manage our properties through Alliance, which will focus largely on our hotels."

Turner is President of Alliance. He has 30 years of operating experience with such companies as InterContinental Hotels Group and Bristol Hotels & Resorts, where he was divisional vice president of operations and was directly responsible for the operations of approximately 50 hotels with combined annual revenues of over $300 million.

"Alliance's management team has in-depth experience in both of Winston's market types and hotel segments," Turner said. "We fully expect the transition to be transparent to guests and associates."

Noble Investment Group, Ltd., founded in 1979, currently owns and operates 17 upscale hotels throughout the Southeastern United States, under prominent brands such as Marriott Hotels, Crowne Plaza, Courtyard by Marriott, Hilton Garden Inns, Homewood Suites and SpringHill Suites. Noble maintains strategic relationships with the franchisors of those brands including Marriott International, Hilton Hotels Corporation and InterContinental Hotels Group.

Noble's President, Mit Shah, is Chairman of the Board of Alliance and will continue to oversee the management of Noble Investment Group as well. "We look forward to the opportunity to further expand our strong relationship with Winston Hotels, Inc. Winston's hotels match up well with our portfolio and give us added economies of scale in management, marketing and purchasing," Shah said. "We believe this will benefit both companies' portfolios."

It is anticipated that Alliance will operate 33 of Winston's 49 hotels initially. The remainder of Winston's portfolio will continue to be managed by existing independent management companies like Noble and other such companies in the future, as Winston expands its relationships with regional operators in conjunction with its venture with Charlesbank Capital Partners. The Charlesbank venture focuses on acquiring hotel assets to which Winston can add significant value.

Upon termination of the contracts, it is anticipated that substantially all of Interstate's employees who operate the 33 Winston Hotels and a core group of employees responsible for back office accounting and related functions will affiliate with Alliance. "We believe that the transition of management responsibilities will be relatively seamless with no ramp-up time required or disruption to the operations at the properties," Winston said.

"We are working with Noble Investment Group and Mr. Turner on the final management contract agreement, and then will seek approvals from franchisors, lenders and other related parties," he added. "We do not expect the new hotel management configuration to have any immediate impact on our results of operations, but over the long term, with closer oversight of our properties, we hope to achieve higher returns from our hotels," said Joe Green, chief financial officer.

Raleigh, North Carolina-based Winston Hotels, Inc., is a real estate investment trust specializing in the development, acquisition, repositioning and active asset management of premium limited-service, upscale extended-stay and full-service hotels, with a portfolio increasingly weighted toward the leading brands in the lodging industry's upscale segment. The Company currently owns or is invested in 52 hotels with 7,200 rooms in 17 states, which includes: 44 wholly-owned properties with 6,141 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 13.05 percent ownership interest in two joint venture hotels with 215 rooms; and a mezzanine financing interest in three hotels with 391 rooms. For more information about Winston Hotels, visit the Winston Hotels web site, www.winstonhotels.com  .

Just what Australia needed: another blow for tourism

Australians may think they are far removed from the SARS outbreak. But there is no doubt SARS will have a significant effect on our economy

This week, after the mayor of Beijing stopped pretending all was well while his people were dying, the capital's schools were closed, holidays cancelled and around 100 new cases added to the infection tally each day.

SARS appeared to mutate from an exotic flu virus into a threat to global well-being.

People in Hong Kong, Singapore, Beijing, Guangzhou, Shanghai and mid-western China locked themselves in their apartments, and analysts realised SARS has already caused enormous economic damage.

Retailers in Hong Kong, for example, report sales are down 50 per cent this month. Airline Cathay Pacific says passenger numbers are down 75 per cent.

China's economic numbers are as difficult to divine as its infection rates, but Citigroup economists predict SARS will cause the Chinese economy to shrink by 5 per cent this quarter.

This would eradicate an estimated 5 per cent growth spurt in the three months to March.

Assuming the outbreak will subside within three to six months and ignoring emergency fiscal intervention, Citigroup expects SARS to carve 1.5 to 2 percentage points from China's economic growth this year.

The financial conglomerate expects a similar impact on Singapore and Hong Kong.

To see an immediate impact on Australian exporters, one only needs to wander down to Sydney Fish Market and ask about the price of fish.

Exports have fallen sharply for live abalone and crayfish and prices have fallen accordingly.

The picture is equally grim for those dependent on international tourism, Australia's largest export sector.

Singapore, Hong Kong and China are Australia's fifth, sixth and ninth largest sources of tourists.

A survey this week by the Australian Tourism Export Council found international visitors have plunged 30 per cent so far this month, although reliable figures will not be available until June.

The survey found forward bookings are looking just as sick for at least the next three months.

Traffic has plunged from Japan and Europe as well as SARS-endemic countries.

Council representatives say SARS stopped 70,000 visitors arriving in Australia this month and will slice $2 billion from the $17 billion tourism export sector this year.

Until last week, the Australian Tourist Commission predicted Chinese tourists would make up the largest component of Australian arrivals by 2010 - as numbers were growing 35 per cent each year.

This prediction was scuttled during the week at a forecasting committee meeting.

While new forecasts will not be released for a fortnight, they sent a ripple of panic across the industry which washed into the office of the Minister for Tourism, Joe Hockey.

"Clearly, there is a greater multitude of factors impacting negatively on the industry at present than ... at any other time," a spokesman for Mr Hockey says.

A second round of problems also may threaten Australian wool, iron ore and energy exporters.

Commodity prices, which have sailed on China's industrial expansion, have begun to dip as markets speculate SARS could affect production as well as consumption.

Workers and executives in China, Hong Kong and Singapore are not turning up to work, and export and investment deals are being postponed because people are loath to meet face to face. "Lots of foreign direct investment is on hold because people don't want to come to China or even see people from China," says Citigroup's China economist, Huang Yi Ping.

The Guangdong trade fair, now under way in Guangzhou, is on track to fall $US13 billion ($21 billion) short of last year's $17 billion in deals.

Mr Huang says the SARS disaster has also revealed a "fundamental transparency problem" which could turn a temporary investment drought into something more permanent - in Hong Kong as well as mainland China.

From here, the economic outlook is obscured by medical, government and behavioural uncertainties.

SARS is thought to have mutated recently into its present form, allowing it to jump species from pigs or poultry to humans. Virologists say its virgin state makes it genetically unstable and unpredictable like other viruses such as AIDS, ebola and Spanish flu.

But unlike AIDS, SARS's morbidity rate is high. Those exposed to it have a strong likelihood of falling ill.

Unlike Spanish flu (which killed up to 20 million people after World War I), the virus incubates for up to two weeks. This allows people to disperse and transmit the virus without knowing they have it.

And unlike ebola, the mortality rate from SARS is low, at about 5 per cent (although rising), which means the virus is unlikely to self-eradicate by killing all its hosts.

Viral treatments and vaccines typically take at least a decade to be developed, tested and approved - and longer for genetically unstable viruses.

SARS has the potential to devastate high-population centres, particularly in developing countries, and travel fast.

The World Health Organisation says any country is vulnerable if it has an international airport. There is only one known way to control it - by forcing people to stay where they are.

"A lot of us in the industry have only realised in the last few days just how serious SARS is," says Ken Boundy, head of the Australian Tourist Commission. "It's not only the disease, but the reaction to it."

From the little that is known about the virus, it appears to have been fashioned for maximum economic impact.

Even if SARS does not take hold in Australia, the most protracted export slump in 40 years just got a whole lot worse.  

David Michaels takes over Hilton Hotel Division

Following the untimely death of Anthony Harris, formally Chief Executive of
Hilton International, the hotel division of Hilton Group plc, it has been
announced today that David Michels will assume responsibility for the hotel
division in addition to his role of Group Chief Executive.  

Brian Wallace,Deputy Group Chief Executive and Group Finance Director, and Jurgen Fisher,President Hilton International, Europe and Africa will also assume additional
responsibilities for the hotel division.  These changes take effect on 1 May

Rotana poised for major Middle East expansion, with new hotels and refurbishments on the way

TravelDailyNews.com  -  Rotana Hotels, Suites & Resorts is set to launch a major new phase of development in the Middle East, and is at the same time  going ahead with significant refurbishments of existing properties in the region. Rotana, currently operating 18 Middle East properties, is in the process of finalising management agreements for nine new hotels, while three more new projects are under serious consideration.

The new additions include resort hotels in Abu Dhabi and Dubai, a hotel suites development on Sheikh Zayed Road in Dubai, four or five star hotels in Qatar, Bahrain, Kuwait and Fujairah in the UAE, and two hotels in Egypt. Details will be announced by the company to the travel trade at next month`s Arabian Travel Market (ATM) in Dubai, while Rotana will also highlight its plans for hotel suppliers at The Hotel Show, also taking place in Dubai, later in May. "The new hotels will all be opening in the next three years," said Selim El-Zyr, President and CEO, Rotana Hotels, Suites & Resorts. "We are committed to increasing our presence in the Middle East, and in particular to maintaining growth in the UAE which is our stronghold in the region".

Refurbishments for the existing Rotana regional chain, consisting of 12 properties in the UAE, and two each in Lebanon, Syria and Egypt, will include work to rejuvenate some of the Dubai hotels in time for the International Monetary Fund (IMF) and World Bank Annual Meeting in September, which will draw 10,000 visitors, including approximately 3,500 delegates. The planned revamps are one of the reasons why the company will again be taking an exhibition stand at The Hotel Show, taking place at Airport Expo Dubai from May 19 - 21.

"We want to be first to check out the wide range of new products and services displayed by suppliers from around the world, and we`re particularly interested in the latest sound systems and IT products for hotels," said El-Zyr. "The exhibition also gives us a great opportunity to meet hotel owners, and their representatives, who will be there to seek suppliers for their existing hotels, and will also be in a position to discuss management of new properties planned." Despite the impact on tourism of the war in Iraq, El-Zyr says the hotel industry has already started to show signs of recovery, and he believes events like ATM and The Hotel Show can only accelerate the process. He said: "Exhibitions in Dubai have a proven track record for attracting high quality visitors, and I think The Hotel Show, for instance, will be at least as good as last year`s".

Added El-Zyr: "We`re sold out for ATM, and events postponed in March and April are now being confirmed for May and June. At the same time, we`ve been receiving calls from tour operators in the UK who want rates for our hotels in Dubai. It`s a great destination, and it`s inexpensive to get here." Rotana, like the other major hotel operators, sees major potential for future expansion into Iraq. "We believe that the development and reconstruction of the country will generate a great deal of business in this part of the world," said El-Zyr. Organised by event management and marketing specialists, Streamline Marketing, The Hotel Show, a "one-stop-shop" supplies opportunity for hotel owners, operators and developers, is held under the patronage of H.H. General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, UAE Minister of Defence, and Chairman of the Department of Tourism and Commerce Marketing.

Amari Hotels chairman, Adisorn Charanachitta, dies

Prominent Thai hotel businessman, Mr Adisorn Charanachitta, died in a plane crash on Saturday during heavy rain in Lop Buri while on the way to Chiang Mai.

A son-in-law of business tycoon Mr Chaiyudh Karnasuta, Mr Adisorn was director of the Royal Orchid Sheraton and The Oriental Hotel, Bangkok. He was also chairman of Amari Hotels & Resorts.

Mr Adisorn was in a single-prop plane owned and piloted by Mr KenSarasin, who was elected chairman of the board of The Oriental Hotel Bangkok only last Thursday.

Mr Adisorn was in a single-prop plane owned and piloted by Mr Ken Sarasin, former managing director of Thai Pure Drinks, which bottles Coca-Cola. A third passenger, identified only as Ms Premvipha, also died

UK Hotel property prices ride trading gloom

Caterer.com  -   Hotel property prices are holding firm but could fall if poor trading continues in the long term, forcing companies to adjust the asset value of their portfolios.

With demand outstripping supply, there are few real bargains to be had, and current values show no signs of decline, say hotel property agents.

Hotel values are based partly on the profitability of the business but the current climate of poor trading, particularly in London, has led to fewer hotels coming on to the market.

"We could see things move in three to six months' time if more properties appear on the market, but there are no signs of this happening yet," said Jeremy Jones, associate director at Christie & Co. "There are no distress sellers and it is unlikely we will see any until 18 months down the line."

But with the fallout from Iraq still uncertain, profitability in the hotel sector could fall further, he added.

Nick Barber, director of Atis Real Weatheralls, said: "Well-run hotels that have invested in their business will find their values hold. But if hotel performance falls, companies may have to adjust their asset value."

However, property agents believe hoteliers are likely to hold out rather than sell at a low price, which will keep the market static for longer.

"With such low interest rates, it will be a long time before people will feel exposed and need to sell," said Gerard Nolan, director hotels and leisure at FPD Savills.

And when that happens, Nolan predicts many investors will swoop on hotels, particularly in London, with a view to turning them into private dwellings and serviced apartments, which can have higher yields.

Sale-and-leaseback deals could be further affected by changes to stamp duty made by Gordon Brown in the Budget. "We are concerned that these could represent a very significant addition to the cost of doing deals," said Derek Gammage, managing director of hotel consultant Insignia Hotels.

Under the plans, to come into force in December, commercial property leaseholders must make an up-front stamp duty payment equivalent to 1% of the total rent payable in the life of the lease. Before, the tax was based on the average of one year's rent.

Over to you...

David Coffer, chairman of Davis Coffer Lyons and president of the Restaurant Property Advisors Society, believes leisure has been stamped on again

The announcement that stamp duty on leasehold properties will be levied at 1% of the capitalised value of rental paid under the entire lease term will have far-reaching effects.

Previously, most commercial leases attracted about 2% of the average annual rental in stamp duty.

The Inland Revenue suggests indexation of 3.5% per annum discount to reduce the blow, but reserves its position on RPI- and turnover-linked leases.

With lower rentals, the implication may not be onerous, but the fact that the leisure industry prefers at least 35-year leases makes it horrendous.

From the valuation point of view, lenders will see their assets subject to a further deduction on assignment and will adjust loan-to-value ratios accordingly. There will also be implications on new lettings, for which such a capital cost will be factored in to any rental bids.

Has the Government really thought this through? In attempting to close the loophole relating to stamp duty avoidance schemes, they have penalised industries like ours which took long leases because of other tax advantages and because backers like the security of longer tenure.

What could evolve is a more liberal association between landlord and tenant - perhaps a form of partnership or franchise rather than a lease document.

The industry has until 1 December to make alternative proposals - not a lot of time to speak with one voice and express its concern at the effects these proposals will have on our already weakened sector.

Source: Caterer & Hotelkeeper magazine, 24 - 30 April 2003

EuroTulip Hospitality acquires 6 hotels in the Netherlands 

TravelDailyNews.com  -  Golden Tulip announceed its participation in the shareholding of a new company called "EuroTulip Hospitality Management BV" . The first acquisition of the company, represented by the takeover of the lease agreements of the former "Euroase" hotels, was finalised on 17th April 2003.

All six hotels are located in The Netherlands and have been associated with Golden Tulip Hotels, Inns & Resorts since 1st January 1994. The new company EuroTulip Hospitality Management B.V. will be operated under the guidance of Martin Paardekooper, former Director of Operations for Krasnapolsky Hotels & Restaurants. Golden Tulip Hospitality BV, the parent company of Golden Tulip Hotels, Inns & Resorts, will be 20% shareholder. The other parties involved are the AHM Hotel Groep BV with 30% of the shares, Franmar Holding BV with 20% of the shares and Hooge Raedt Groep BV (HRG), the owning company of the real estate of the six hotels, with a 30% stake.

The hotels operated by the EuroTulip Hospitality Management are:

• Golden Tulip, Residence Victoria Hoenderloo, 109 rooms
• Golden Tulip, Landgoed de Wipselberg Beekbergen, 90 rooms
• Golden Tulip, Epe Epe, 138 rooms
• Golden Tulip, Loosdrecht Loosdrecht, 68 rooms
• Tulip Inn, Beekbergen Beekbergen, 78 rooms
• Tulip Inn, Amersfoort Amersfoort, 74 rooms

Hans Kennedie, managing director and CEO of Golden Tulip states: "Being primarily a franchise company, this step is extremely significant to the brand. By having direct control over a number of hotels, we are able to set the standards for existing and new franchisees by showing flagship properties."

"This step is strategically very important for AHM", states Job Heilijgers, owner and managing director of the AHM Hotel Groep. "AHM currently operates 14 hotels and 4 conference centres and it is our goal to continue to grow our position in the hotel and meeting market. Through EuroTulip Hospitality, we have created a new vehicle for expansion, which will accelerate our growth plans."

Henk Sterk, managing director of the HRG, comments: "We are very pleased to have joined forces with this consortium of investors. We feel that the strong background of all parties with Golden Tulip as such and with the management and operation of hotels represents a high value adding potential to the real estate of the hotels."

Martin Paardekooper, owner of Franmar Holding B.V., adds: "The operation of these hotels will continue under its current management, however we see a high potential revenue improvements in the operations, through the synergies created by the group of investors and expertise available in the EuroTulip." 

Virtual meetings in SARS-hit Asia

(CNN) -- Virtual meetings may be the future blueprint for the way Asia does business as it struggles to deal with the deadly SARS virus.

Responding to investors' concerns about travellers from countries hit by Severe Acute Respiratory Syndrome (SARS), investment bank JP Morgan in Hong Kong used audio and video conferencing to pitch a stock sale of $28.2 million on Wednesday rather than meeting clients.

"Effectively because of international investors' concerns in meeting with management teams from certain high-risk Asian countries, what we did is we set up virtual roadshows," Rupert Fane, head of the Asia Pacific equity syndicate at JPMorgan, told Reuters.

Business life for companies in many SARS-hit Asian economies has suddenly changed. There are fewer client visits and business lunches and less travel, and bows have replaced handshakes as governments in Hong Kong and Singapore grapple to contain the spread of the virus.

Some analysts say that while it may be possible to complete smaller transactions through video conferencing, larger regional deals -- such as those involving China -- may be in limbo until the disease is contained.

Fatalities in China and Singapore on Wednesday have bolstered the global toll to at least 155.

Mainland China has now reported 65 deaths, Hong Kong 56, Canada and Singapore 13 each. Vietnam has had five deaths, Thailand two and Malaysia one.

China accounts for nearly half of the more than 3,300 SARS cases worldwide.

Authorities are also considering screening and quarantining airline and train passengers

Hotel rebels threaten to sack Hands 

Mail on Sunday  -  Furious  timeshare owners are threatening to kick out a management company owned by the wife of top City financier Guy Hands.

Julia Hands faces a vote of no confidence over the way her Hand Picked Hotels runs a timeshare at the plush Rhinefield House in the New Forest, Hampshire.

Timeshare owners have been at loggerheads with her management company for several months following a demand for an upfront payment from them for 'exceptional' refurbishment work at the historic mansion, which the timeshare owners do not believe is justified.

They are also concerned that parts of the Grade II listed building are falling into disrepair through neglect.

Both charges have been rejected by the management company.

An extraordinary general meeting (EGM) is expected to be called next week. This will give all 500 owners the chance to vote on whether Hands' Rhinefield Timeshare Management should continue to run the business.

David Hartley, a member of the timeshare committee, said: 'There is no doubt in my mind that the vast majority of the members support the view of the committee. I would anticipate that we would be calling for an EGM so that the full body of timeshare owners can vote on the situation. One possible outcome is that we get another management company in or we manage it ourselves.'

Julia Hands took over the running of Hand Picked Hotels two years ago, despite having no previous experience of the hotel industry. She is overseeing an ambitious £50 million rejuvenation project of the chain. Her husband was head of the finance group at Nomura Bank.

Hotel chain woe may hit Royal Bank for £100m

The Herald  -  Royal Bank of Scotland, Scotland's largest company, is facing losses of £100m on its investment in Le Meridien luxury hotel chain, which has been hit by the collapse in air travel.

The hotels group, which includes the Waldorf in London, is now controlled by a consortium of 12 banks after the chain's shareholders, including Abbey National and Alchemy Partners, decided to hand control to the lenders.

Le Meridien was bought for £1.9bn two years ago by a consortium put together by arch-deal maker Guy Hands, when he was head of Nomura's principle finance operation.

Since then, the impact of collapse in business travel in the wake of the September 11 attacks and, more recently, the Sars virus have reduced the value of the hotel chain to just £700m - less than the value of the company's debt.

The Royal Bank, as well as Merrill Lynch and Lehman Brothers, is now exposed to the company's problems. They have asked Meridien's chief executive, Stephen Alexander, to produce a rescue plan for a meeting on May 19.

Meridien operates 51 hotels - with 43 in Europe and eight in the Far East and America.

Royal Bank is exposed because it invested £100m at the time of the refinancing two years ago. It also paid £1.2bn for 12 Meridien hotels, including the Waldorf and the Grosvenor House hotel on Park Lane in London.

The Royal Bank said it never commented on individual customers.

However, industry sources stressed that it was important to treat the potential £100m hit in the context of the bank's £6.45bn profits for 2002.

The source also said that Royal Bank now owned these 12 hotels, all in prime locations, which could probably fetch a higher valuation if they were sold on.

Meanwhile, Royal Bank was reported to be building a business school in partnership with Harvard, the US ivy league college, at its new Edinburgh-based world headquarters at Gogarburn.

Weekend reports said that a planning application is due to be lodged in the next few weeks for the development, which could be called the RBS Business School.

A Royal Bank spokeswoman declined to comment on the report. However, she pointed out that the bank has a number of ongoing relationships with business schools such as Kellogg and Harvard.

Toronto unveils tourism campaign

Despite rising SARS toll, officials say outbreak under control 

Canada’s biggest city, its reputation blackened by an international advisory telling people to stay away because of SARS, began to woo back tourists Saturday with a multilingual television campaign.

The campaign comes after Toronto announced another death on Saturday from SARS and three additional deaths the day before, for a toll of 20.

But health officials maintain the outbreak is under control and not spreading to the broader community and are publicly seething at the advisory against travel to Toronto by the World Health Organization this week.

A commercial featuring the city’s mayor, Mel Lastman, its health officer and councilors will be sent around the world this weekend. In it, the officials encourage travelers to: ”Come to Toronto. It’s safe. So come visit us soon.”

Tourism is Toronto’s second biggest industry and the SARS outbreak threatens the city’s economic life with conventions and concerts canceled. Musicians Elton John and Billy Joel are the latest celebrities to avoid the city, scrapping their Monday night concert.

Highly Contagious

 There were at least 341 probable and suspected cases of Severe Acute Respiratory Syndrome in Canada, the only part of the world outside Asia where people have died from the respiratory illness. The highly contagious flu-like disease has killed at least 291 people and infected about 5,000 worldwide.

The virus, which spreads via coughs and sneezes but can also be transmitted by touching contaminated objects, has a death rate of at least six percent and no known cure.

With Toronto accounting for a fifth of Canada’s economic output, officials are desperate to repair the damage done by the WHO’s travel warning.

Prime Minister Jean Chretien promised C$10 million ($7 million) for a promotional ad campaign and, in a rare move, plans to move his cabinet’s meeting to the city from Ottawa next week.

The upcoming media blitz will be welcome in a city where some hotels are only 10 to 20 percent full and business activity has sharply declined. But some are skeptical. “Its too little too late. How do you take the scare away once you’ve told people: ’Don’t come here; you’re going to die?”’ said a waitress in a downtown restaurant.

The SARS outbreak is a public relations disaster for Toronto and politicians have come under heavy criticism for their handling of the situation. Chretien was blasted for spending the height of the crisis on vacation in the Caribbean.

The most criticism has been directed at Toronto Mayor Mel Lastman who in television appearances seemed not to know what the World Health Organization was. After an error-filled appearance on CNN, Lastman’s spokesman defended the mayor, saying “this little guy isn’t perfect.”

But critics are suggesting this time the gaffe-prone mayor himself should be put in quarantine to avoid further mistakes.

“It’s way worse than mere humiliation, which we’re used to (from Lastman),” said one newspaper columnist Saturday. “As the city struggles to regain any sort of stature in the world’s eyes, Mayor Mel is dragging us down.”

Sars to cost East Asian economies US$ 15b this year; The World Bank says Hong Kong and Singapore have been hard hit because of the impact on tourism and retail sales

SCMP  -  Economic growth in East Asia this year will be nearly a percentage point lower than last year as the outbreak of atypical pneumonia takes its toll on business and tourism, the World Bank said yesterday.

In its half-yearly report on the region, the bank said it expected 5 per cent gross domestic product (GDP) growth in East Asia, excluding Japan, for 2003, compared with 5.8 per cent last year. The bank's previous forecast for this year's growth, made in November, was 5.5 per cent.

Hong Kong's economy is forecast to grow 2 per cent this year after 2.3 per cent growth last year. But the World Bank's chief economist for East Asia and the Pacific said that the devastation the Sars outbreak is wreaking on travel, tourism and retail sales could result in the Hong Kong economy standing still, with no GDP growth.

"We estimate that Sars could shave up to 2 percentage points off GDP in both Hong Kong and Singapore as the direct effect of tourism and retail sales losses ripples throughout the economy," the economist, Homi Kharas, said.

The report forecasts the Singapore economy growing 1.7 per cent this year despite the affect of the Sars outbreak on the island state's tourism and other sectors.

Mr Kharas said that the impact of Sars on the region as a whole would be less damaging, cutting only about 0.5 percentage points from GDP, equivalent to about US$ 15 billion (HK$ 117 billion).

"There is a short-run negative impact because people understandably are taking precautions and avoiding unnecessary interactions. Tourism, transport, retail sales, which involve face-to-face contact between people, have been hardest hit. And the impact will linger as the effects of deferred business meetings, trade shows and marketing events are felt in lost future orders," said Mr Kharas.

Looking on the bright side, the World Bank said the Sars outbreak is a temporary shock, though there is still much uncertainty about how long it will go on and how big it will grow. And even though the bank cut its forecast for the region, East Asia is still expected to be the fastest-growing region in the world in 2003 and 2004. By contrast, world growth is forecast at 2.3 per cent this year.

Meanwhile, the Organisation for Economic Co-operation and Development, which comprises the world's 30 richest countries, said it expected its member countries to grow by 1.9 per cent this year. Echoing the World Bank's report, the OECD said Sars had emerged as a new risk to global growth, but did not make a specific forecast on how big its impact would be on either global growth or in specific countries or regions.

"It has caused significant disruptions in several countries, particularly China and Hong Kong," the OECD said.

"Its effect on the global outlook is as yet very uncertain. It will depend on how effective containment measures are, on how rapidly its propagation is understood and on whether a vaccine or cure is discovered."

The OECD forecast the mainland's economy growing 7.7 per cent this year and 7.1 per cent in 2004, while the World Bank forecast it would expand by 7.2 per cent both this year and next.

Neither Hong Kong nor China are members of the OECD.

Bangkok Luxury Hotels: Five-star health scare

The Nation  -  Occupancy rates down to 40% this month, heading to 25%

Even the grand dame of the Chao Phya river - the Oriental Bangkok - has been forced to cut costs as its mainstay |foreign guests are avoiding Asian trips.

"To prevent massive lay-offs |of the hotel's full-time staff, the management of the hotel has tried to trim expenditures on extrava-gant activities," a source said last week.

The five-star hotel has had to lay off temporary staff in the food and beverage, housekeeping and engineering departments, said the source, who requested anonymity.

The source failed to quantify how many would be cut out of the Oriental's 692 permanent employees and 295 temporary hires.

The hotel could fill only 30 per cent of its 395 rooms this month, down from 60 per cent last month.

"The hotel has frozen future recruitment, which it can do as it enjoys low staff turnover," the source said.

The Oriental and other luxury hotels in Bangkok are making quick adjustments during this difficult period with the Sars scare, which shows no sign of abating.

Business trips of its sales staff |to its Mandarin Group headquarters in Hong Kong and public relations are the next in line for axing. "But the hotel doesn't want to see a deep cut in these trips," the source said.

Sith Tandavanija, president of the Thai Hotels Association, said the average occupancy rate in the local hotel industry is expected to drop to 40 per cent this month, and worse is yet to come.

Next month occupancy will plunge to just 25 per cent, he said.

All top-tier hotels in Bangkok are experiencing difficulties as foreign guests, especially from high-risk countries in Asia, cancel or put off bookings.

A reservations clerk at the Dusit Thani said travellers from Hong Kong and Singapore refuse to confirm their stays because they are put off by the strict health examination awaiting them at the airport.

Last month the Dusit Thani sold only 40 per cent of its rooms, compared with 50 per cent in the same month last year.

A spokesman from the hotel said most of its cancellations were from Asian visitors. European and Americans have continued to patronise the hotel.

Its business was off to under 50 per cent last week, compared to the 70 per cent recorded at the same time last year.Although the hotel believes the situation is "manageable", it has nevertheless launched many promotional packages.

Until July, local residents can benefit from a discounted rate of Bt2,720 per night for a "superior" room, while corporate customers pay US$60 (Bt2,575) per night for a superior room and $85 (Bt3,645) for a suite.

Similarly, the Landmark Hotel on the Sukhumvit tourist belt does not seem overly concerned about a fall-off in business from the Sars crisis.

At the Amari Watergate, it is mostly Asian guests who are not showing up. Occupancy is down by about 10 per cent from normal. However, airline crew layovers are a steady source of income.

The Grand Hyatt Erawan has witnessed a slowdown in arrivals of both business guests and travellers from Asia, Europe and America. Its rooms are only 25-30 per cent occupied, compared to an average of 70 per cent for the whole of last year.

Occupancy at the Hilton International Bangkok is running at 30 per cent, compared to double that at the same time last year.

European and American businessmen, the Hilton's target clientele, have called off their bookings, saying their meetings with partners in Asia have been postponed.

Hilton will not lay off employees. Instead it plans to offer them optional vacations.