WTO plays down Sept 11’s long-term impact on tourism growth

e-Tid.com  -  The World Tourism Organisation has said that the 0.6% drop in year-on-year international arrivals last year reflected a bumper 2000, and that despite the US terrorist attacks, 2001’s numbers were in line with the expected growth patterns before 2000’s positive blip.

‘The results for 2001 would have been in line with the trend observed over the past decade had it not been for the magnitude of the increase in tourist arrivals in 2000 which was much larger than the figures obtained during the preceding years,’ the Madrid-based organisation said.

The report also looked at tourism trends for the first half of 2002, but qualified its findings by saying that sufficient information has yet to become available. It detects that ‘the recovery in the number of trips has not been associated with a proportionate increase in revenues’ and that ‘prices are paying a key role in purchase decisions’.

One market trend so far this year is ‘the advent of emerging destinations which are prompting other destinations to rethink the design of their products. The release was issued in advance of detailed regional reports due to be released at the end of this month.

Accor First-Half 2002 Results Resilient

Businesswire  -  In an environment shaped by the impact of September 11 and the global economic slowdown, Accor maintained its EBITDAR margin for the six months ending June 30, 2002 at 26.0%, versus 26.7% for the prior-year period, while reporting earnings per share of EUR 1.12, comparable to the EUR 1.14 posted in first-half 2001.

Earnings resilience was supported by sustained demand for Economy Hotels in Europe and the responsiveness of Accor teams in keeping operating costs under control.

Business and Leisure Hotels in Europe and the United States were adversely affected by the slowdown in business, especially in major cities.

Services again enjoyed strong earnings growth, which was partially offset by currency devaluations in South America.

Development

With 140 new hotels totaling 18,491 rooms opened as of August 31, Accor pursued its growth while reducing its expansion investments by 17% compared to the first half 2001. Europe is the priority region for investments and the vast majority of new hotels are in the mid-range and economy segments.

Full-year outlook

In a still-uncertain environment for global tourism, the Group's full-year objectives are to report EUR 700 million in profit before tax and close to EUR 2.20 in earnings per share.

Accor's strengths-a balanced business portfolio, integrated networks and well-known brands-represent key assets that more than ever are shaping the Group's long-term strategy.

With 147,000 associates in 140 countries, Accor is the European leader and one of the world's largest groups in travel, tourism and corporate services, with two major international activities:

- hotels: more than 3,700 hotels (423,000 rooms) in 90 countries, casinos, travel agencies, and restaurants;

- services to corporate clients and public institutions: each day, 13 million people in 31 countries use a broad range of services (food vouchers, people care and services, incentive, loyalty programs, events) engineered and managed by Accor.

Further information on Accor are available on Internet at accor.com

MWB takes control of Malmaison, appoints chief executive

e-Tid.com  -  Property developer Marylebone Warwick Balfour has taken full control of boutique hotel group Malmaison and brought in Charles Holmes, MD of Regal Hotels, as chief executive.
MWB paid its JV partner Rezidor SAS Hospitality £6m for its 50% stake in the ownership of the Malmaison brand. MWB already owns the seven hotels in the portfolio. Rezidor was formerly known SAS International Hotels, the hotel division of Scandinavian Airlines.

It has also taken over Rezidor’s 18-year management contract for the Malmaison chain at a cost of £7m.

The deal gives MWB complete ownership of the UK-based hotels business. In May the group signed a £110m funding deal with the Bank of Scotland which was dipped into for the Rezidor deal.

The appointment of Charles Holmes completes the Malmaison management line-up. MWB’s other hotel interests include ownership of the Marriott Park Lane, West India Quay Marriott Executive Apartments and Marriott West India Quay.

Florida Hotels Making a Comeback; Ernst & Young Report Shows Signs of Recovery as Orlando Tops Miami and Tampa

BUSINESS WIRE)--Sept. 9, 2002--The Florida hospitality industry is beginning to improve, albeit at a slower pace than the nation. After surviving what may be its toughest twelve months in the past decade, the hospitality industry is beginning to show signs of life. After absorbing the deadly combination of the 9/11attacks, drop in the stock market, new supply pressure and prolonged reductions in corporate and leisure travel, the key markets of Miami, Orlando and Tampa, though behind 2001 performance levels are improving. In a report released today, Ernst & Young's Hospitality Advisory Services Group assesses the market's improvements, ongoing challenges and solutions for hotels trying to navigate out of what is likely the toughest economic condition faced in years.

"Florida hotels are still performing below 2001 levels but have been steadily improving over the last six months. We are seeing signs of improvement in both occupancy and room rates for the hospitality industry," said report author Mark Lunt of Ernst & Young. "Even though travel is still down overall, the primary leisure markets of Florida have helped to improve the performance of one of the states leading industries. The major markets of Orlando, Miami and Tampa, heavy with theme parks, prime beaches and nice weather are helping to lead the state in hotel performance statistics," Lunt added.

The report, a follow-up to Ernst & Young's 2002 FL Lodging Forecast, provides an updated analysis of the Florida lodging industry. The report is based upon market research provided by Smith Travel Research and independent interviews conducted by Ernst & Young. The full report titled, "Florida Mid-Year Lodging Report" is available at: www.ey.com/us/reas

Not surprisingly, the report found that some markets are faring better than others. Orlando, a top tourist destination, is faring the best, where the hotel market is expected to finish the year stable with 2001 and has the most positive outlook for 2003. Tampa, without a glut of new supply to contend with, recovered faster than other Florida markets and is closing the gap on Orlando. Miami, more dependent on Latin America, corporate travel and conventions, is facing the toughest challenges, and is anticipated to continue in negative territory through early 2003.

Report author, Mark Lunt - E&Y's Southeast/Caribbean Hospitality Practice Leader, predicted back in February that most Florida hotels would have to discount rates to maintain or increase their occupancy. A quick look at the major markets through the first six months of 2002 shows that hotels reduced prices on average between four and ten percent from 2001 rates. Benefiting from increased drive-in tourism, Orlando has rebounded the quickest of the major markets. "Orlando's average daily rates in June were still down 4.2 percent but had improved from being down almost 10 percent in January," said Lunt.

Occupancy rates, although still below normal, are improving as well. Orlando's occupancy was down 14.6 percent in January of 2002; by June was only down 5.9 percent.

The Tampa market occupancy was down as much as 12.2 percent in January and by June was only down by 6.6 percent. The Miami hospitality market was down 13.5 percent in January and by June was only down 9.6 percent. "Even though FL is still below normal in terms of rates and occupancy we are seeing steady signs of improvement," said Lunt. "I'm encouraged that we're seeing steady improvement through the first half of 2002," he added.

However, Lunt cautioned that FL was not out of the woods completely. "We are still dealing with some tough economic conditions and hotel operators will have to continue to find ways to improve their performance," he said. Lunt believes most operators will continue to discount room rates slightly throughout the rest of the year to help boost occupancy numbers.

"The long-term health of the Florida hospitality market is good. Florida is still the second most visited state in the nation," said Lunt.

The complete report which includes Ernst & Young's original research and market analysis on numbers compiled by Smith Travel Research, can be downloaded at: www.ey.com/us/reas

Or for more information contact report author Mark Lunt at: 305/415-1673 - mark.lunt@ey.com

About Ernst & Young (E&Y) Hospitality Service Group

The Hospitality Advisory Services Group, a Real Estate Advisory Services practice of Ernst &Young is considered one of the largest and most effective advisory practices in the world. The Hospitality team is focused on delivering value-added solutions that are focused and quick to implement. Industry authorities for over 25 years, the E&Y Hospitality team provides research and analysis of worldwide industry movements and opportunities. Market research and analysis is just one component of its full range of client services. From lodging to tourism, from finance to operations, the industry looks to Ernst &Young to create value in its coordinated delivery of advisory, tax and audit solutions. The hospitality team covers markets in North America, Europe and Asia.

PATA calls for visa shake-up

The Pacific Asia Travel Association has proposed a universal visa system, designed to improve border security globally.

It said a global visa system based on common security and administrative and financial standards could simplify and expedite the process by facilitating travel and enhancing safety and security.

"Universal protection remains perhaps the most compelling reason for a universal visa.

"Safety and security does not involve only protection from terrorism but it means keeping all borders of all countries free of all kinds of criminals and potential troublemakers.

"The system will no doubt be legally, technologically and financially complex, but perhaps no more complex than setting up a single currency and if that can be done, why not this?"

PATA said the world of visas is discriminatory, complex, confusing, chaotic and costly for both applicants and those who man the machinery behind the system.

"Developing countries have come under considerable pressure to give visa-free access to citizens of the rich industrialised countries, while the reverse is clearly not the case.

"This means that gangsters, paedophiles, rogue financiers, drug dealers, prostitution racketeers, among other criminals and less desirables from the industrialised countries, can get visa-free entry into developing countries.

"This not only allows them to seek refuge from the law in their own countries but raises the very real prospects of them quickly becoming security threats to the developing countries themselves.

"By contrast, even respectable bankers, businessmen and academics from developing countries need visas for the industrialised countries. Is this fair? Why should this continue to be the case?" PATA asked.

InnSuites Hospitality Trust (IHT) Reports Fiscal 2003 First Half And Second Quarter

/PRNewswire-FirstCall/ -- InnSuites Hospitality Trust (AMEX: IHT) Highlights:

   -- Net loss attributable to Shares of Beneficial Interest was $112,000 or




    $(0.05) per diluted share for the first six months compared to a loss




    of $1.9 million or $(0.89) per diluted share for the prior year.

   -- Recurring FFO for the first six months was $647,000 or $0.30 per basic




      share, compared to $761,000 or $0.36 per basic share in the prior



 year.

InnSuites Hospitality Trust today reported recurring Funds From Operations (FFO) of $647,000 or $0.30 per basic share for the first six months of fiscal year 2003. The recurring FFO was a decrease from the prior year's recurring FFO of $761,000, or $0.36 per basic share. The effect of a $790,000 or 5% decrease in total revenue primarily caused by a soft economic environment and restrained travel was largely offset with cost-cutting programs.

The Trust's net loss attributable to Shares of Beneficial Interest for the first six months ended July 31, 2002 was $112,000, or $(0.05) per diluted share, compared to a net loss of $1.9 million, or $(0.89) per diluted share, for the prior fiscal year. Results for the prior year's first fiscal six months ended July 31, 2001 included a $577,000 prepayment penalty related to the refinancing of the Ontario property and a one-time charge of $1.6 million related to the acquisition of the Lessee. 

Excluding the effects of these one-time charges, the Trust's net loss attributable to Shares of Beneficial Interest for the six months ended July 31, 2001 would have been $10,000 or $(0.00) per diluted share.

The Trust had a net loss attributable to Shares of Beneficial Interest of $731,000 or $(0.34) per diluted share for the second quarter of fiscal year 2003 compared to a loss of $690,000 or $(0.32) per diluted share for the same period in fiscal year 2002.

Positioned for the Future

The travel and hospitality industries continue to be affected from the soft economic environment. The Trust's cost control programs have largely mitigated the effects of lower revenues. The Trust has also taken advantage of the favorable interest rates available and will continue refinancing its properties at favorable rates to reduce interest expense. The Trust expects occupancy and room rates to remain below the prior year during the second half of fiscal year 2003 with potential for improvement in early 2003.

Your Suite Choice(R) - Value Concept

InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality real estate hotel investment trust with 11 moderate service and full service hotels containing 1,680 hotel suites located in Arizona, New Mexico and Southern California, and holds an option for a 168 suite Texas InnSuites Hotel. InnSuites Hotels distinguishes itself by offering a choice of Studio InnSuites, two-room Executive/Family Suites, and Presidential Jacuzzi Suites under its program, "Your Suite Choice(R)". InnSuites Hotels create extra value for its guests with complimentary "InnSuites Extras"(SM), including healthy fruit and cereal breakfast buffet, afternoon social hour, HBO, local phone calls, refrigerator with bottled water, microwave, coffeemaker with coffee and tea, morning newspaper, and more. For reservations, call 1-888-INNSUITES, or visit http://www.innsuites.com/ . For investor information, visit http://www.innsuitestrust.com/ .

Tourists switch to Asian destinations following Sept 11 attacks

Channel NewsAsia -  The September 11 attacks in the US has clearly raised jitters among travellers, hitting global tourism where it hurts.

Little wonder then, that many tourists have been switching destinations, many of them heading for Asian countries.

The Japanese - one of the most ardent travellers around - have been leading that switch.

It is no longer 'Aloha Hawaii' or 'Welcome to America'.

Even before the terrorist attacks last year, the United States had been losing momentum as the top destination for travellers.

Asia has been the most popular destination for Japanese travellers for the past few years, and trips to that area recovered in about 6 months.

And China proved to be exceptionally popular.

In fact, based on confirmed bookings, the number of tourists heading to China in September jumped 130 percent on year.

That is much bigger than any other country or region, according to Japan's largest travel agency JTB Corp.

It was boosted further in April, when the New Tokyo International Airport opened its second runway, increasing direct flights to the southern cities of China.

Tsuneo Nishiyama, General Manager of Public Relations, JTB Corp, said, "Just counting the number of seats, it's doubled from last year. There are now direct flights to Xiamen, Chengdu, and Chongquin, so we can form tours to the southern area."

Mr Nishiyama said China appeals to the Japanese because of its deep culture, history, and ancient architecture.

Still, there is no doubt that the tourism industry has been hit by September 11.

Falling demand from the attacks sent JTB Corp's net profits plunging 98 percent to 258 million yen or US$ 2.2 million in fiscal 2001.

But things are recovering; by this month, the number of tourists have returned to the levels of year 2000.

And JTB is forecasting that some 17 million Japanese will make their way overseas this year - 5 percent more than last year.

But tours to the US are still more than 20 percent below the pre-terrorist attack period.