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Newsletter - April 4, 2003

 

SARS  - W H O Press briefing

World Health Organization

Dr David Heymann, Executive Director, Communicable Diseases
Dr Guenael Rodier, Director, Communicable Disease Surveillance and Response
Mr Dick Thompson, Communications Officer

Mr Dick Thompson
This will be an abbreviated press briefing. You will have an opportunity to ask a few questions, but not many. The reason is that they are getting on a flight to attend Carlo Urbani's funeral in Italy.

Statement from Dr David Heymann
Good morning. Thank you for coming this morning. We have two different types of information to offer to you this morning. The first is that China is now a full partner with WHO. The teams have been asked to immediately go to Guangdong. Guangdong has reported the number of cases that have occurred during the month of March, which is 361 cases and 9 deaths, which mean that the epidemic is still going on in Guangdong, and they have promised that later today they will provide all of the information that they have obtained from their national disease surveillance system looking for SARS. So we are very pleased to announce that China is now a full partner with other international partners, in fact with the rest of the world, in collaborating on stopping this epidemic and in finding out the various aspects that we need to find out.

The second [type of information] is that since control measures have begun in Hong Kong, which began on 15 March, just after we made our announcement, and in other parts of the world, control measures have been successful in stopping the disease. For example, in Viet Nam the disease has been stopped we believe. In Singapore and Toronto, activities are going on and they are having good success.

I would like to focus now on Hong Kong, however, where since 15 March there have been 9 people, travellers, tourists or businessmen, from Beijing, from Taiwan, and from Singapore, who have returned home from Hong Kong infected with SARS. In addition in Hong Kong, they have found that transmission does not seem to be only by close contact from person to person. It appears that there is something in the environment that is transferring virus, which is serving as a vehicle to transfer the virus from one person to another. We do not believe this is the air. We believe that it is something else in the environment and we have talked about that in past press conferences. It is possibly an object that people are touching and getting infected from, where there has been a SARS patient who has coughed, or possibly a sewage system or a water system or some type of environmental vehicle that takes the virus from a sick person to others. So we see clusters of cases where there is one case, for example, living in an apartment building, where other people in that apartment building have been infected.

So for these two reasons, because of the fact that we do not completely understand the means of transmission in Hong Kong, and because since the 15 March tourists and businessmen have returned from Hong Kong to their countries with infection, we have decided to make a recommendation that people who are planning travel to both Hong Kong and Guangdong, which as you know is adjacent to Hong Kong, consider postponing their travel until another time. We will be working daily with the Hong Kong authorities, and we have daily conference calls with them and now we will begin also with Guangdong authorities, to determine if there are any reasons that we can stop that recommendation. In other words, the recommendation will be reevaluated every day and we will make a decision every day whether or not that needs to be changed. So now what we have is from all sites where there is a SARS outbreak that is causing chains of transmission, we have requested that tourists or travellers understand about the disease, that airports screen passengers who are returning to their countries from these sites, and now, in addition, we are telling travellers who are planning to go to Hong Kong and Guangdong that they consider postponing their travel. So what we have is a system in place now which will, we hope, stop the spread from the sites where SARS is occurring internationally and at the same time help passengers, tourists or businessmen who are planning to go to Hong Kong or Guangdong decide better whether or not they should go. We are recommending that they reconsider their travel plans and postpone if possible their travel to Hong Kong or Guangdong.

Dr Guenael Rodier
Clearly Guangdong and Hong Kong are the two largest foci for infection, two foci where transmission is documented to be ongoing, and two foci where more investigation is required to get the full picture of what is going on in terms of transmission and the exact size of the event.

Questions and answers.

Q. You say that travellers should consider postponing their travel. Do you have a scale of travel advice for this? Is it code red, code B, code C? Is there an absolute prohibition?

A. Dr David Heymann: WHO has a book of International travel and health and we recommend various ways of preventing disease to passengers or travellers internationally when they go to a country. When they go to a country they look in the book and they decide what to do. Most of the diseases that are in the book have either a vaccine or a drug, so we recommend a vaccine or a drug. This is the first time that we have recommended people avoid an area and this is of course because we do not understand the disease completely, because there’s no vaccine and there’s no drug. So this is the first time that we have made this type of a recommendation in recent years to avoid an area because of a disease.

Q. During your consultation with the Hong Kong authorities, what was their reaction to your decision to declare Hong Kong an area of restriction?

A. Dr David Heymann: We have been discussing on a regular basis with Hong Kong authorities and of course no one wants to have a travel recommendation that recommends people not come to their place. But they have accepted this and they are working very hard now to better understand the situation. As they have been right along. We are very confident that Hong Kong will be able to, in a very few days, understand what is going on and then therefore be better able to control the outbreak there.

Q. You explained the two reasons why you are advising travellers to avoid Hong Kong. But for the second reason, about environmental factors, does that also apply to Guangdong?

A. Dr David Heymann: Guangdong, the recommendation has been made because we do not understand yet what is going on in Guangdong. We have put in a maximum level of recommendations, the same as we have for Hong Kong where we know what is going on. As we understand what is going on in Guangdong, we will know that the epidemic is continuing, we know that there were 361 cases in just the past month. So therefore we do not know anything more than that at present, but because we do not know we are making this recommendation.

Q. How and when will you release this recommendation? Do you have the exact wording?

A. Dr David Heymann: Yes, it will come out later today.

Q. How likely is it now that it spills over into other countries [note added to transcript: or areas] in the region, for example, Taiwan?

A. Dr David Heymann: Taiwan actually has had 1, 2, 3, 4, 5, businessmen [note added to transcript: 4 businessmen and 1 businesswoman] return from Hong Kong since the 19th of March [note added to transcript: 15 March] with what’s been reported as probable cases of SARS, but remember we don’t have a diagnostic test. We have no confirmed cases.

Q. Yes, Dr Heymann, can you explain a little bit about the process prior to issuing this advice? While it probably makes sense from the health perspective, it will have economic, social, political impact in the region. I’m wondering if you have consent from authorities in Guangdong, Hong Kong, or China?

A. Dr David Heymann: We’ve spoken first of all with IATA, which is the International Air Transport Association, and they have understood this and they have acknowledged that this is the recommendation which should be made at this point [for public health reasons]. We’ve discussed with the various different countries in the region, with our regional office and through our regional office, and we find that in those countries there are already much more strict recommendations than this is. For example, in Thailand, the government has announced that all [Thai nationals] returning from Hong Kong will be quarantined. So we understand that there are very serious measures already being taken in many countries. So we made this decision with countries, with WHO and, more importantly, with our expert group of advisers on travel and health. We’ve spoken with many of our advisers, you know we have various advisers around the world, we have talked with them as well. And through all of these discussions, which went on all day yesterday and the day before, we’ve come to this conclusion.

Q. So officially, Guangdong, Hong Kong and perhaps even Beijing – interjection from Dr Heymann: Beijing has no …, we have made no recommendation for Beijing.

Q. (continued) I’m talking about the Chinese government, the Guangdong local officials.

A. Dr David Heymann: Yes, they’ve been informed by our WHO office yesterday that we will be making this, as has Hong Kong.

Q. Historically, can you explain us when was the last time WHO issued such a thing? And on what occasion? And why?

A. Dr David Heymann: I can’t give you that answer right now, if WHO has ever done that, but we will find that out and we’ll let you know. I can’t tell you in the last …, as far as I know, this is the only time that this has ever been done, but I can’t tell you for sure, so I shouldn’t be quoted on that.

Q. In recent years?

A. Dr David Heymann: In recent years, this is the first time that this has been done, at least in the past 12-13 years.

Q. But can we get, I’m sorry, can we get later on today some information on this?

A. Yes.

Q. For those people who have to be in Hong Kong in the next few days, so what would you recommend?

A. Dr David Heymann: Our recommendation is that if it’s possible to postpone, they should consider it. But we don’t make any rules or regulations, that’s up to countries to make. So we are saying that there is still unknown information in Hong Kong, that tourists and businessmen appear to still be getting infected, the most recent on 25th March. And so we are therefore recommending that travel be postponed if it’s possible. If it’s not possible for business reasons, then that will have to go into consideration. But it’s a personal decision.

Q. For foreigners who are already in Hong Kong travelling, do you have any recommendation?

A. Dr David Heymann: No.

Q. How do you react to the Swiss government decision that Asian people cannot participate in the Basle Watch Fair?

A. Dr David Heymann: Those governments …, those decisions are made nationally. All we do is give out recommendations to governments. So I can’t comment on the decision of the Swiss government. You’ll have to ask the Swiss authorities why they’ve made that decision.

Q. Do you find it efficient, or wise or too much?

A. Dr David Heymann: I think that’s up to the government to say.

Closing comments? OK. Thank you.

Wyndham defaults on hotel leases, lessor says

(Reuters) - Hotel operator Wyndham International Inc. failed to pay at least $3.6 million of rent due April 1 on 27 hotels it leases, and as a result is in default, the lessor, Hospitality Properties Trust said on Wednesday.

Wyndham, based in Dallas, did not immediately return calls seeking comment.

Hospitality, a Newton, Massachusetts-based real estate investment trust that owns 251 hotels, said it leases the 27 affected hotels under two combination leases.

One lease covers 15 Summerfield by Wyndham hotels and calls for a minimum monthly rent of $2.1 million, and another covers 12 Wyndham hotels with a $1.5 million minimum monthly rent, it said.

Hospitality said it sent a default notice to Wyndham on Wednesday, stating that Hospitality will retain $33.3 million of lease security deposits against damages it may incur under the leases.

Hospitality said the lessee under each lease is a so-called "bankruptcy remote" unit of Wyndham. This, it said, gives Hospitality the right to rebrand the affected hotels because their franchise and management contracts are subordinate to Wyndham's lease obligations.

 

The Hongkong and Shanghai Hotels, Limited Posts Profit of HK$308 million as Compared to HK$33 million in 2001; Peninsula Hong Kong and The Peninsula Bangkok Contributed Strongly

 

The Hongkong and Shanghai Hotels, Limited Annual Results for the Year Ended 31 December, 2002

FINANCIAL HIGHLIGHTS

  • Revenue from hotel operations up 14% to HK$1,941 million
  • Group operating profit of HK$637 million, an increase of 9% over 2001
  • Profit attributable to shareholders increased to HK$308 million, compared to HK$33 million in the same period in 2001
  • Shareholders' funds at December 31, 2002 decreased by 2% and stood at HK$11.7 billion or HK$10.03 per share
  • Earnings per share increased to 26 cents
  • Net borrowings decreased by HK$45 million to HK$5.6 billion
  • Proposed final dividend increased to 8 cents per share

Costs controlled, although the figures reflect a full year of operation in Chicago

 

IMPROVED HOTELS PERFORMANCE BOOSTS HSH OPERATING RESULTS

The Hongkong and Shanghai Hotels, Limited (HSH) achieved a group operating profit of HK$637 million for the year ended December 31, 2002 on better financial results from the hotels. 

After taking into account the adjustments for various non-operating items, profit attributable to shareholders for 2002 amounted to HK$308 million as compared to HK$33 million in 2001. Shareholders' funds stood at HK$11.7 billion or HK$10.03 per share, after incorporating the year-end asset revaluations, a decrease of 2% as compared to 2001.

 

No interim dividend was paid during the year 2002 (2001: nil). Although the Company has achieved a satisfactory increase in both operating profit and profit attributable to shareholders for 2002, the directors consider it prudent to retain a significant portion of the earnings within the Company, in the light of the group's ongoing capital expenditure requirements as well as the uncertainties arising from the possibility of further conflict in the Middle East. The directors therefore recommend to shareholders that a final dividend of 8 cents per share (5 cents in 2001) be declared out of the earnings of 26 cents per share.

 

Clement Kwok, HSH's chief executive officer, commented, "In 2002, progress has been made in a number of different areas amidst the continuing difficult environment which our businesses face.

"The group's hotels in Asia performed strongly in 2002 with all hotels other than The Peninsula Manila achieving increases in both turnover and operating profits. In the USA, the operating results were somewhat mixed. The Peninsula Chicago, in its first full year of business, received numerous accolades for the quality of its operation but is still in the process of establishing increased corporate business in a competitive market. The Peninsulas in New York and Beverly Hills both achieved similar RevPAR levels to 2001 whilst retaining their strong reputations for quality." 

 

The flagship Peninsula Hong Kong and The Peninsula Bangkok, which has firmly established itself as one of the leading hotels in that market, both contributed strongly to the increase in operating profits. The shopping arcades in The Peninsula Hong Kong and The Palace Hotel Beijing, which house many of the top retail brand names, continue to perform well.

With the bulk of the group's properties concentrated in Hong Kong, which has continued to suffer from poor economic sentiment, the property business faces a challenging environment. The largest property asset, comprising around 1 million square feet of luxury residential apartments, is at Repulse Bay where declining expatriate trends in Hong Kong have had a significant, adverse effect on both occupancy levels and rentals.

 

The office rental market in Hong Kong also continues to suffer, as evidenced by the performance of St John's Building. On the other hand, business has held up well at The Peak Tower and the Peak Tramways, The Landmark in Ho Chi Minh City and the Thai Country Club. 

The Company signed an agreement with Mitsubishi Estate Company Limited to develop The Peninsula Tokyo on a prime site in the prestigious Marunouchi business area of the city, for opening in 2007. 

 

With the completion of the restructuring of The Palace Hotel, which has given HSH a controlling interest, the Company has embarked on a further phase of its renovation programme that is expected to bring the standards of the hotel in line with other Peninsula products.

 

Work has recently begun on a renovation programme for Quail Lodge, which, upon completion, is expected to enhance its status as a premier golfing and resort destination in the upmarket Carmel area in California.

 

Besides these major investments, the Company has continued to place emphasis on maintaining and enhancing the quality and value of existing assets. Guestroom and public area refurbishments continue to take place at a number of the group¡¦s hotels; a new restaurant concept was created in The Peninsula New York and a new Thai restaurant and improved riverside dining are being developed at The Peninsula Bangkok.

 

On the property side, refurbishments of certain apartments and the clubhouse are taking place at The Repulse Bay. Studies are under way to examine the potential for the possible redevelopment, reconfiguration or re-theming of certain properties where the Company believes these might add value.

 

"As well as continuing to seek improvements to our operating results through revenue enhancement and cost efficiency initiatives, we are actively seeking opportunities to create additional value for our shareholders," said Mr Kwok. 

 

"As we continue to look towards an uncertain future, it is reassuring to reflect on the recent launch of the celebrations for the 75th anniversary of The Peninsula Hong Kong. This serves as a strong reminder of how the unending pursuit of quality and integrity will overcome short-term uncertainties and result in the creation of substantial long-term value." 

 

Incorporated in 1866, The Hongkong and Shanghai Hotels, Limited, formerly The Hongkong Hotel Company, Limited, was one of the first stocks to be listed on the Hong Kong stock exchange. Its principal business comprises the ownership and management of prestigious hotel, commercial and residential properties in key destinations in Asia and the USA; its hotel management arm is The Peninsula Group.

 

 

Key Statistics for the Year Ended 31 December, 2002

HOTELS

 

Attributable Interest %

Occupancy

 

 

2002

2001

The Peninsula Hong Kong

100

62%

56%

The Peninsula New York

100

65%

66%

The Peninsula Chicago

92.5

51%

30%*

The Peninsula Beverly Hills

20

78%

78%

The Peninsula Bangkok

75

73%

73%

The Palace Hotel Beijing

42.1

63%

63%

The Peninsula Manila

40

59%

48%

The Kowloon Hotel

100

92%

90%

Quail Lodge Resort

100

54%

58%

 

 

Average Room Rate

 

2002

2001

The Peninsula Hong Kong

HK$ 2,670

HK$ 2,794

The Peninsula New York

US$ 507

US$ 492

The Peninsula Chicago

US$ 300

US$ 304

The Peninsula Beverly Hills

US$ 400

US$ 408

The Peninsula Bangkok

US$ 127

US$ 113

The Palace Hotel Beijing

US$ 88

US$ 86

The Peninsula Manila

US$ 79

US$ 99

The Kowloon Hotel

HK$ 525

HK$ 527

Quail Lodge Resort

US$ 240

US$ 251

 

  • Based on available room inventory and seven months occupancy by December 2001

 

PROPERTIES

 

Attributable Interest %

Occupancy

 

 

2002

2001

Residential

 

 

 

The Repulse Bay (Unfurnished)

100

79%

93%

The Repulse Bay (Serviced)

100

67%

65%

The Landmark

93%

87%

83%

Commercial

 

 

 

The Peninsula Hong Kong

100

96%

100%

The Peninsula New York

100

100%

100%

The Kowloon Hotel

100

93%

91%

The Repulse Bay

100

98%

95%

The Peak Tower

100

97%

99%

Office

 

 

 

The Peninsula Hong Kong

100

96%

95%

St. John's Building

100

83%

97%

The Landmark

70

100%

98%

 

 

Average Yield (pnsf)

 

2002

2001

Residential

 

 

The Repulse Bay (Unfurnished)

HK$ 29

HK$ 34

The Repulse Bay (Serviced)

HK$ 24

HK$ 23

The Landmark

US$ 1.89

US$ 1.84

Commercial

 

 

The Peninsula Hong Kong

HK$ 252

HK$ 224

The Peninsula New York

US$ 52

US$ 46

The Kowloon Hotel

HK$ 46

HK$ 44

The Repulse Bay

HK$ 51

HK$ 52

The Peak Tower

HK$ 38

HK$ 37

Office

 

 

The Peninsula Hong Kong

HK$ 31

HK$ 33

St. John's Building

HK$ 17

HK$ 22

The Landmark

US$ 1.98

US$ 1.99

 

New York and nine sister cities commit to rebuilding international tourism

eTurbo.com  -  During the first ever New York Sister City Summit, Commission for the United Nations, Consular Corps and Protocol Commissioner Marjorie B Tiven, Sister Cities Programme President Ambassador Nancy E Soderberg and NYC & Company President & CEO Cristyne L Nicholas announced  they would jointly promote tourism between New York and its nine sister cities. The two-day summit, entitled Rebuilding International Tourism, was attended by Mayor Gabor Demszky of Budapest, Mayor Amos Masondo of Johannesburg, Mayor Jose Maria Alvarez del Manzano of Madrid, Mayor Roberto Salcedo of Santo Domingo as well as tour operators, tourism officials and delegates representing Cairo, Jerusalem, London, Rome and Tokyo.

The goal of the summit, organised by the New York City Commission for the United Nations, Consular Corps and Protocal, was to help revitalise tourism in New York, in its nine sister cities and around the world. Summit participants discussed ways to restore confidence in the travel and tourism industry and encourage citizens to embrace their right to travel. Summit participants, including key tour operators and professionals in the travel and tourism field, discussed the need for local, state and federal support for tourism, uniform security checks and marketing partnerships between government and tourism officials. In addition, Mayor Bloomberg and Executive Mayor Masondo formalised the New York-Johannesburg relationship by signing a Sister City proclamation.

"This summit affirms our commitment to working together as partners in an effort to rebuild global tourism," said Mayor Bloomberg. "As the world`s second home, New York remains the safest large city in the USA. With your co-operation and friendship we will continue to send that message to the globe and we are pleased to welcome your delegates, our Sister Cities, to New York with open arms.

"The tourism summit underscores the crucial role of the industry in promoting economic development," said Sister Cities Program President Ambassador Nancy E. Soderberg. "We are delighted to have such vibrant partners in this effort."

New York City tourism is responsible for US$25 billion in economic activity, supported nearly 300,000 jobs and generated US$3 billion in city, state and federal taxes. International visitors account for 18 per cent of all city visitors, yet are responsible for 42 per cent of tourism spending. Although New York City specific figures are not yet available (for 2001, believe it or not), 2001 nationwide international visitor numbers reflect an overall 9.4 per cent decline from 50.9 million international visitors to the USA in 2000 to 45.5 million in 2001. As the nation`s number one international visitor destination, New York City lost a significant number of international visitors and their corresponding spending in 2001.

"Although tourism remains a vital component of New York`s economy, the industry in general and especially the lucrative international segment continues to struggle," said NYC & Company President & CEO Cristyne L Nicholas. "The return of international visitors is crucial to the complete recovery of New York`s tourism industry and we are excited about this opportunity to invite residents of our nine Sister Cities to come and enjoy everything the City has to offer at this important time."

The Asian American Hotel Owners Association Annual  Convention & Trade Show Set for April 24-26 in  Long Beach, California

The Asian American Hotel Owners Association (AAHOA) Annual Convention & Trade Show, taking place April 24-26 in Long Beach, Calif., promises to be one of the industry’s premier events.  Keynote speaker Earvin “Magic” Johnson kicks-off the three-day event, which features political forces such as consultant James Carville, who led Former President Bill Clinton to victory in 1992; industry leaders like Jonathan Tisch, chairman and CEO of Loews Hotels and chairman of Travel Business Roundtable (TBR); and Bollywood stars including Preity Zinta, who was named best newcomer at the 1998 Filmfare Awards.

“The AAHOA board of directors and staff have been working hard all year to secure an impressive line-up of featured and keynote speakers,” said Hitesh Bhakta, vice chairman, AAHOA, and chair of the Annual Convention Planning Committee.  “Our members deserve the best of the best, and that is just what we plan to deliver.”
In addition to presentations by Johnson, Carville, Tisch and Zinta, the two-hour morning general sessions will include guest speakers, AAHOA officers’ reports, dance presentations and panel discussions.

The annual Industry Issues Panel is one of the most anticipated general session segments for AAHOA members and the industry in general.  After taking last year off, panel moderator Anthony Marshall, president of the Educational Institute, American Hotel & Lodging Association (AH&LA), returns in 2003.  Panelists include: Thomas R. Higgins, president and CEO, Best Western International, Inc.; Tom L. Keltner, executive vice president and president, Brand Performance and Franchise Development Group, Hilton Hotels Corp.; Charles A. Ledsinger, Jr., president and CEO, Choice Hotels International; Michael Leven, chairman and CEO, US Franchise Systems; and Steven A. Rudnitsky, chairman and CEO, Hotel Group, Cendant Corp.

“The Industry Issues Panel is traditionally one of the more passionate segments of the general session,” said Mike Amin, chairman, AAHOA.  “A few fireworks are inevitable when you put a group of savvy hoteliers in a room with top franchising executives, yet that is what makes it so honest and therefore so important.”

After the “fireworks” of the general sessions, each afternoon features a specialized breakout session — one for women hoteliers on April 24, one for independent hoteliers on April 25 and one for future hoteliers on April 26 —as well as several concurrent educational seminars.

“The afternoon breakout sessions are typically big draws for both people in the category group and people just wanting to gain insight into the issues of that group,” said Fred Schwartz, president, AAHOA.  “Last year the women’ s breakout session was standing room only.”

Themed “Journeying Through Success and Significance,” this year’s women’s breakout features Zinta along with Lata Krishnan, president of American India Foundation; Mary Mahoney, president of Howard Johnson International, Inc. from 1998 until March 2003; and moderator Krish Dhanam, director of International Operations, Ziglar Training Systems.  They will discuss how to harmonize personal and professional lives among other topics.

“We have also planned several concurrent educational seminars for those who may not want to attend the breakout sessions designed for women, independent, and future hoteliers,” continued Schwartz.  “Education has always been a cornerstone of AAHOA, and we work hard to ensure that all of our members’ interests are met.”
This year’s session topics include: owner strategies for saving one’s hotel in troubled times; insurance guidelines; negotiating successful franchise agreements; using technology; sales and marketing; and maximizing staff performance.
At the end of the morning programming on April 24 and 25, AAHOA will host a trade show featuring more than 350 vendors.  Top representatives of AAHOA’s founding sponsors will also be on hand.

The evenings of April 24 and 26 will feature star entertainment straight from Bollywood.  On April 24, Nousheen (TV’s Kusum) will present her fashion collection, followed by comedians Narinder Singh Bedi and Devang Patel along with his dancers.  Kusum returns for the closing night gala on April 26 when she will perform with fellow “Superstars of a New Generation” Sunidhi Chauhan and Shaan.

“The AAHOA office has been flooded with members and vendors registering for annual convention,” concluded Bhakta.  “We already have the highest number of pre-registered attendees ever for annual convention.  This should be a record-breaking year.”

About the Asian American Hotel Owners Association
The fastest-growing organization in the United States hospitality industry, the Asian American Hotel Owners Association (AAHOA) was founded in 1989.  AAHOA has a membership base of more than 6,000 members who together own more than 35 percent (18,000) of the hotel properties in the United States.  The association provides year-round programs focusing on education, advocacy and assistance.  For more information, please call 404-816-5759 or visit www.aahoa.com

Singapore February 2003 Visitor Arrivals

ASIA Travel Tips .com  -  Singapore visitor arrivals in February 2003 grew 2.3% to a total of 612,897 visitors. The 12 largest visitor-generating markets were:

Total Arrivals: 612,897 (+2.3%)

 

1. Indonesia 100,315 (+11.3%)

2. P R China 89,679 (+9.8%)

3. Japan 50,434 (+1.7%)

4. UK 43,983 (-1.9%)

5. Malaysia 40,232 (-7.8%)

6. South Korea 32,689 (+6.2%)

7. Australia 31,246 (-10.3%)

8. USA 24,793 (-11.2%)

9. Hong Kong 24,546 (-8.3%)

10. India 23,730 (+10.5%)

11. Thailand 19,548 (+11.2%)

12. Taiwan 17,922 (-16.5%)

Indonesia continued its 6th consecutive month of positive growth by posting an 11.3% increase in arrivals. Holiday and business-related arrivals registered double-digit growths of 23.7% and 15.2% respectively.

Strong promotion of Chinese New Year tour packages by STB contributed to China's continued growth of 9.8%. This is evident in the increase in holiday (+15.8%) and group-packaged (+14.4%) traffic. First time visitors from China increased 15.3%.

Visitor arrivals from Japan grew 1.7% in February, achieving its 6th consecutive month of positive growth due to reduction of airfare by major airlines. Holiday and group-packaged traffic showed growth of 3.6% and 9.9% respectively.

Arrivals from South Korea grew 6.2% after three months of decline, attributable to the promotion of the Celebration Singapore package. Holiday arrivals and visitors on group-packaged tours increased by 7.9% and 12.6% respectively.

Continued travel advisory warning against travel to Southeast Asian countries caused arrivals from Australia to decline by 10.3%. This is evident by the fall in holiday arrivals by 14.7% in February. Business-related arrivals declined 9.1%.

USA visitor arrivals declined 11.2%, due to the drop in holiday traffic (-3.2%) and business-related traffic (-13.3%).

Visitor arrivals from India grew 10.5%, largely contributed by the increase in holiday traffic (+14.8%) and business-related arrivals (+6.8%).

Weak economic outlook continued to dampen visitor arrivals from Hong Kong (-8.3%). Holiday traffic fell 12.0%.

Aggressive promotion of the "Hong Bao Giveaway" boosted visitor arrivals from Thailand by 11.2%. Holiday arrivals increased 12.7% while business-related arrivals increased 16.4%. The latter was mainly accrued to the strong attendance at the Asia Pacific Life Insurance Congress (2800 persons).

Overall, holiday arrivals grew by 4.8%. Growth was registered mainly from Indonesia (+23.7%), China (+15.8%), India (+14.8%), and Thailand (+12.7%). On the other hand, holiday arrivals from Australia, Taiwan and Hong Kong declined by 14.7%, 13.9%, and 12.0% respectively.

Business-related1 traffic registered a positive growth of 4.1% in arrivals, largely contributed by the strong performances from Thailand (+16.4%), Hong Kong (+15.5%), Indonesia (+15.0%), and South Korea (+12.7%). Decreases were recorded from USA (-13.3%), UK (-11.7%) and Australia (-9.1%).

Singapore Visitor Arrivals in January - February 2003

Visitor arrivals in January - February increased 4.9% over the same period in 2002, to a total of 1,254,195 visitors.

The 12 largest visitor-generating markets were:

Total Arrivals: 1,254,195 (+4.9%)

 

1. Indonesia 228,646 (+17.2%)

2. P R China 152,120 (+15.3%)

3. Japan 103,539 (+6.7%)

4. UK 92,001 (+2.7%)

5. Malaysia 81,250 (-3.1%)

6. Australia 77,690 (-5.7%)

7. South Korea 67,648 (-2.5%)

8 USA 54,239 (-4.6%)

9. India 51,039 (+10.2%)

10. Hong Kong 41,869 (-3.5%)

11. Thailand 39,119 (+8.0%)

12. Taiwan 33,731 (-16.6%)

Singapore Hotel Sector Performance in February 2003

- Maximum room-nights: 853,216 (-0.5%); Available room-nights: 784,731 (-2.6%)

- Gross lettings: 589,494 (-0.8%); Paid lettings: 579,808 (-0.9%)

- Standard AOR: 75.1% (up 1.3 percentage points over February 2002)

- Standard ARR: $121.9 (-9.1%)

- Revenue per available room (Revpar): $91.6 (-7.4%)

=====
AOR = Average Occupancy Rate 
ARR = Average Room Rate
Revpar = AOR X ARR

Note: Figures for the Hotel Sector Performance are updated as at 21st February 2003 

EIBTM 2003: Meetings makes peace

TravelDailyNews.com   - As businesses and organisations face the current climate, EIBTM 2003 (20-22 May, Palexpo, Geneva) is to put the spotlight on the  meetings and incentive industry`s role in fostering worldwide peace and eradicating poverty. The `Meetings Makes Peace` debate, featuring industry leaders and chaired by Louis D`Amore, President and founder of the International Institute of Peace Through Tourism (IIPT) will take place at the EIBTM stage on Thursday 22 May at 11.00 am.

The debate follows a four-day Global Summit on Peace Through Tourism, under the patronage of HM Queen Rania Al-Abdullah of Jordan and with keynote speaker Roger Moore, spokesperson for UNICEF, which took place in Geneva in February, organised in partnership with the World Travel & Tourism Council (WTTC). "My hope is that our audience will be inspired by our discussions on the stage and that they will benefit from a greater appreciation of this important dimension of international meetings and conferences", said Mr. D`Amore. "The aim is that everyone will have further understanding of this opportunity for the industry and will leave with at least one idea as to what they might implement in planning future meetings and events." Taking part in the debate are Didier Scaillet, Director of European Operations, MPI; Terrance Barkan, Managing Director, Association Global Services; Tim Chudley, European Chairman, Association of Conference Centres and Corbin Ball, Owner and Chief Executive Officer of US-based Corbin Ball Associates.

Mr. D`Amore added: "The panelists will be introducing some powerful insights, perhaps with examples, as to lifelong friendships, mutual understanding and cross-cultural appreciation that result from people of goodwill coming together for international meetings and events." EIBTM`s Exhibition Director Debbie Jackson said that the debate came at a particularly pertinent time for the industry and recognized the role that Geneva played in the latest global peace summit. She said: "We are delighted to be able to bring to the industry a fresh new dimension on the work of meetings and incentives throughout the world. This is a subject which must touch everybody`s hearts." 

Canada`s tourism industry records modest growth in 2002

TravelDailyNews.com   -  The total number of tourists travelling to Canada increased for the sixth straight month in December 2002,  according to the Canadian Tourism Commission, fuelled primarily by positive numbers from the USA, Asia and primary markets in Europe. Results published by Statistics Canada indicate that the total seasonally unadjusted international overnight travel to Canada increased by 4.7 per cent in December 2002, compared with December 2001. The year 2002 ended on a positive note with total numbers up 1.8 per cent over the same period in 2001.

The total number of US tourists going to Canada was up 3.8 per cent in December 2002. In addition, the positive trend in the numbers of US tourists entering Canada by private car continued in December 2002, and was up 7.3 per cent for the year. In December 2002, overseas overnight travel to Canada was up 7.8 per cent. For the year, however, the number of overseas overnight travellers was down by 5.3 per cent. The countries registering the most important positive growth for Canada during the month of December 2002 were Italy (37.5 per cent), Mexico (28.3 per cent), Australia (22.5 per cent), Japan (16.6 per cent), the Netherlands (7.4 per cent), France (4.6 per cent) and the UK (2.0 per cent).

The number of Canadian tourists travelling to the USA or overseas was up 15.1 per cent at 1.2 million in

Le Méridien throws weight behind destination marketing at Arabian Travel Market

Region’s major hospitality group to work hand-in-hand with tourism offices

Acting swiftly to counteract the downturn in global travel, Le Méridien in the Middle East and West Asia is focusing promotional budgets on a destination marketing strategy in full support of the on-going efforts of commerce and tourism boards in its host destinations, says Russel Sharpe, the luxury hotel group’s regional vice president sales.

(Dubai, April 2 2003):  As the countdown begins for the start of the region’s leading travel and tourism exhibition, Arabian Travel Market – ATM (May 6-9 2003, Dubai), luxury hotel group, Le Méridien Hotels & Resorts, has pledged a multi-prong support strategy of the show by confirming a solid presence with at least eight destination pavilions.

(At time of going to press) Eleven Le Méridien hotels have pledged alliance with the governments of Cyprus, Dubai, Fujairah, India, Jordan, Mauritius, Seychelles and Thailand at a time when world travel has come under the hammer. This is particularly prevalent in the resort and city hotels represented in the destinations under Le Méridien’s ATM spotlight.

Russel Sharpe, regional vice president, sales for Le Méridien in the Middle East and West Asia confirmed the move, saying he believes that destination marketing should be the backbone of any campaign managed by the hospitality industry at this time. He said he has urged his teams to show full support to the efforts of tourism offices and officials at ATM.

“Le Méridien’s brand name is firmly cemented in the region where we operate more than 22 hotels and have been present for more than 15 years. This presence has been endorsed by our annual role at ATM – this is our tenth year.

“However, reality is that the industry has been hit by the current climate. Business is down and we need to be nimble and creative in the implementation of innovative business and leisure marketing strategies remembering that the image management of Arabia, and other Le Méridien world destinations, is crucial.

“To this end, we feel that our presence at this established exhibition is best felt this year alongside our governments. We have pledged our marketing funds in this direction, either by representation with tourism offices on their destination stands, or by other tactical means.”

Sharpe confirmed that one such move is the hosting of a networking evening for the visiting buyers : “Every year, ATM works hard to ensure that buyers from international, regional and local markets attend ATM and for the tenth year running, we will acknowledged appreciation of this effort by extending true Arabian Hospitality at an evening gathering for the trade and media.”

The Royal Party will be co-hosted by the group’s flagship beach property, Le Royal Méridien Beach Resort & Spa. More than 350 trade and media visitors are expected to attend.

Also, Le Méridien has acted swiftly on promotions but launching Le Méridien Free Nights at its seven properties in the United Arab Emirates and others in the region. (www.lemeridien.com)

Thailand: Quarantine won't curb tourism promotion

Bangkok Post  -  The Tourism and Sports Ministry says Thailand will not curtail its tourism promotion campaigns in countries affected by Sars despite the quarantine measures announced by the Public Health Ministry on Tuesday.

Tourism and Sports Minister Sonthaya Khunpluem said yesterday that the nation's tourism campaign and budget to promote the industry would largely remain as originally planned but that marketing strategies would be revised as necessary.

Mr Sonthaya said that the tourism campaign had to be continuously promoted because it was part of a long-term agenda and that this was not contradictory to the recent steps taken by Public Health Minister Sudarat Keyuraphan.

He added that he would meet with Mrs Sudarat today to discuss tighter co-operation in order to provide a unified message to the public.

Under new measures set by the Public Health Ministry, all travellers returning from Hong Kong, China, Vietnam, Singapore and Taiwan must stay at home for 14 days or face legal action and visitors from those countries must wear surgical masks.

Mr Sonthaya also said that the budget to promote the industry for the Tourism Authority of Thailand would remain as set. However, he added that the promotional plan would be revised to place more emphasis on regions less affected by the US-Iraq war and the deadly atypical pneumonia such as eastern European countries, Scandinavia, Japan as well as India.

With continuous promotions, Mr Sonthaya said he was confident that tourist arrivals into Thailand from April to July would be on par with last year's level of 2.4 million visitors.

In the first two months of this year, tourist arrivals increased 7.8 % compared with the same period last year.

But figures for March showed that tourist arrivals dropped by 12% to 600,000 at Don Muang International Airport.

Bahamas` tourism reaches all-time high

The islands of the Bahamas welcomed 4.4 million visitors in 2002, establishing a new all-time record for the  islands-nation off the coast of Florida. In spite of downturns in the American and world economies, the Bahamas continues to post year-on-year increases in visitor arrivals to the islands. While last year`s count represents a smaller increase than in the past two years, the combined total of air and sea arrivals mark a 4.5 per cent growth over 2001.

These encouraging numbers are in part attributable to the growing popularity of cruise travel, according to the islands` minister of tourism, Vincent Vanderpool. More than 70 per cent of all visitors originate in the USA - the Bahamas can be reached in less than three hours from New York, or 45 minutes from Florida`s East Coast

China's tourism industry reeling from impact of killer pneumonia

AFP  -  Tourism has emerged as one of the first casualties of China's battle with a killer pneumonia, as travel agencies and hotels report massive cancelations of planned trips.

In some cities, tourism executives said the number of tourist groups had dropped to as low as 20 percent of the normal volume because of atypical pneumonia, which has hit China harder than any other country.

"There has been a very big effect on the business," said a Beijing-based official with China International Travel Service, the nation's largest travel agency.

"Up to 80 percent of all tourist groups have either canceled or postponed their trips," said the official, who gave his surname as Chen.

In southern China, an official at Guangdong China Travel Service said the impact of the virus had been almost as dramatic as in Beijing.

"At least over half of the tour groups in Guangzhou are delayed or canceled," she said.

China Youth Travel Service said about 90 percent of planned tour groups from South Korea had been called off or delayed, while the same was the case for about half of expected arrivals from the United States.

The Chinese government on Wednesday admitted nine new deaths caused by Severe Acute Respiratory Syndrome (SARS), bringing the reported nationwide death toll to 43.

Health authorities in the United States, France and Australia have all advised against non-essential travel to China in recent days.

On Wednesday, the World Health Organization also urged tourists and business people not to travel south China's Guangdong province because of the ongoing outbreak of SARS.

Su Wujiang, an ethnic Chinese woman from Indonesia, was not taking any chances Wednesday during a five-hour transit at Baiyun Airport in the southern city of Guangzhou.

"I'm not going to eat or drink anything while I'm here," she said. "And I'm not leaving the airport."

The implications for China's tourism industry -- so far groomed to become an engine of economic growth in the years and decades ahead -- could be devastating.

The China National Tourism Administration said earlier this year it expected 14 million foreign visitors in 2003, bringing in 22 billion dollars in foreign exchange.

China's economy could wind up suffering even more if local tourists, who spent 53 billion dollars last year, were also to shy away from travel inside the country.

What is particularly worrying to the local tourism industry is the fact that the discovery of SARS' global reach has coincided with the war in Iraq, which in itself has caused drastic drops in tourism activity.

The World Travel and Tourism Council said Monday China could risk losing 493,700 jobs in the tourism industry if the war in the Middle East does not end quickly.

Anecdotal evidence suggests China's hotel industry has been particularly vulnerable to the global scare over atypical pneumonia.

In Guangzhou, near what is now believed to be the epicenter of the virus, hotel bookings are down markedly from normal times, local industry insiders said.

"It's only the beginning, and it's hard to calculate how big the impact will eventually be," said a staff member at Dongfang Hotel, one of the city's biggest.

The World Tourist Organization has said repeatedly it expects China to attract more tourists than any other country by 2020, shooting past Spain and the United States and usurping current leader France.

China is still on track to reach that goal, at least if SARS turns out to be a short-term phenomenon, claiming a limited number of lives, according to observers.

"The only uncertainty is how long it will take, one or two months," said Benny Chiu, a Hong Kong-based research manager at HSBC China Services. "The shorter the better."

Six Continents earns banks £15m

The Independent  -   Bankers to Six Continents, the pubs and hotels operator, are to pocket fees of £15m for helping the company defend a hostile approach from entrepreneur Hugh Osmond.

Joint financial advisers Merrill Lynch and Schroder Salomon Smith Barney will split £10m between them, while broker Cazenove will also receive up to £5m, sources said yesterday.

Hugh Osmond, now relaxing on a skiing holiday after his unsuccessful play for the company, said of the sums: "I'm very flattered, but not as flattered as I would have been if our bid was successful." He added that, "in the context of the size and nature of the bid", valued by the Osmond camp at £5.6 billion, the advisory fees were unsurprising.

Six Continents shareholders last month overwhelmingly approved their company's demerger plans despite Mr Osmond's pleas that they postpone a vote on the issue.

The pubs and hotels group was forced to invest significant time and resources bolstering support before that meeting, with shareholders expressing frustration at the company's performance and the competence of management.

Six Continents declined to comment yesterday on the cost of its defence. The company has previously revealed a £110m bill for the demerger process, including £51m in advisory fees.

Meanwhile, interest remains high in Mitchells & Butlers, the company's pubs division, and InterContinental Hotels Group, the hotel arm. Six Continents last week confirmed it rejected a £2.8 billion approach for Mitchells & Butler from BC Partners but the private equity group has indicated it remains interested.

The Laurel Pub Company, headed by former Bass executive Ian Payne, has engaged N M Rothschild to advise it and is believed to be considering an offer before trading in Mitchells & Butler shares begins on April 15.

Rival pubs company Spirit Group is also thought to be looking closely at the business. A Spirit spokesman said yesterday the board was in a two-day meeting and unavailable for comment.

Parties said to be interested in the hotels business include US chain Marriott and venture capitalist Texas Pacific Group.