Trade leaves WTM in strong spirits

By Yeoh Siew Hoon TravelWeeklyEast.com  -  Against the odds, the tourism industry has gathered at WTM in bigger numbers and with stronger spirit to fight on. The mood is one of cautious optimism but the dark clouds have by no means lifted. Yeoh Siew Hoon reports on the last day of WTM.

The dark clouds of terrorism hanging over the global tourism industry, if anything, have strengthened the resolve of businesses to fight back.

Against the odds – coupled with the fact that WTM was held at a different venue for the first time – Reed Travel Exhibitions reported a 12 percent increase in exhibitors this year.

Visitor attendance on the first day was also up six percent, said managing director Tom Nutley. More telling, pre-registration was up nearly 20 percent, he said.

On the trade floor, evidence was clear that those who had not planned to attend WTM or had skipped the show for several years decided to participate due to the uncertainty facing their businesses.

Thomas Graf of Kuoni Switzerland was one of the tour operators who made an eleventh hour decision to meet his Thai partners at WTM.

The slow pace of new bookings is of concern and Graf was keen to source special offers to kick-start the new year.

Ruth Landolt of Wettstein was another Swiss operator who had not counted on attending WTM but similar concerns over the slow pace of new bookings prompted her to come up to London for the day.

“Usually this is the busiest time of the year. But I made a last minute decision to come because of concern over business. I am quite concerned – we are getting a lot of call over the warnings on Thailand, more so than after Bali.

“For Thailand, it is more vital – we have the high season coming up.”

Landolt too was looking for special offers to kickstart the January/February season.

The two top honchos of Banyan Tree Hotels & Resorts were also spotted at WTM – chairman KP Ho and joint managing director Edwin Yeow.

Yeow, who has skipped WTM for the last four years, said he came to the show to get a first hand feel of the situation on the ground instead of relying on third party information.

“With all the uncertainty – Bali, economic uncertainty, the talk of war on Iraq – visibility is not clear on the business horizon. I need to hear from the ground up what tour operators are hearing from their consumers.

“It gives us a better sense of the reality of the marketplace.”

And the reality? “The first quarter of next year seems to holding in terms of bookings. What is uncertain is whether the daily newspaper coverage on potential terrorist attacks will dampen the spirit of travel.

“So far, there is a wait and see attitude. Cancellations have not been drastic but there are no new bookings coming in, according to tour operators. But cancellations have not been significant enough to raise an alarm.”

In the end, Yeow said he would leave the show with a stronger feeling of optimism. “The optimism is better than I thought – pending nothing else happening.”

In the meantime, the tourism industry, like the rest of the world, is on notice. Today’s newspaper report of the latest audio recording by Osama bin Laden, which experts say prove he is still alive and kicking somewhere, will not be a welcome piece of news as buyers and sellers make their long journey to the new home of WTM, Excel, for the last day.

That, and coping with the firefighters strike which has cut down several tube stations, should make this a WTM worth remembering.

Oh, and of course, there are gale force warnings in place over most of England today.

Over and out from London

TravelWeeklyEast.com

Hilton  Sets Sights on  Steigenberger Chain

Financial Mail -  Hilton Group, which is set to issue a mixed trading statement this week, is believed to be considering two expansion opportunities in Germany as it seeks to boost its operations on the Continent. 

The company is targeting private hotel chain Steigenberger and is also in talks with Queens Moat Houses about a franchising deal in Germany. 

The deals could help Hilton's chief executive, David Michels, further his aim of expanding in the European middle-market hotel sector on the back of its acquisition of the Scandic chain last year for UKpound 612 million. 

The Steigenberger family are considering strategic options, including the sale of their 70-year-old company, which could command a price of up to UKpound 200 million. 

Steigenberger Hotels & Resorts operates 78 hotels -- 63 are in Germany -- and Hilton is thought to be one of several potential buyers, including French group Accor and American firm Starwood. 

Accor is also vying with Hilton to cut a deal with Queens Moat over 11 of its German hotels. Queens Moat has a franchise agreement with Holiday Inn for these, but it runs out in February. Though the Holiday Inn deal may yet be renewed, Queens Moat is considering alternative partners and the shortlist is down to Hilton and Accor, with a decision expected next month. 

Queens Moat is also believed to be in talks with other hotel groups to use one of their names on its UK properties. 

Though Hilton is expected to confirm the tough environment in the sector this week with a trading statement for the four months to the end of October, its Ladbrokes betting arm is expected to show good progress. 

Source:  http://www.financialmail.co.uk/

Travelers Surveyed Expect to Spend More on 2003 Vacations;

Vacations Now Booked Closer to Departure, Reveals Survey of Tour Operators and Travelers
 
/PR Newswire/  -  More than seven out of ten (73%) travelers surveyed expect to spend more on their 2003 vacations than they did in 2002, reveals a Travel Holiday magazine survey. That's good news for members of the United States Tour Operators Association (USTOA), where a majority of members surveyed (53%) expect slight increases in tour and vacation package prices for the coming year. Unlike travelers, however, USTOA members were less optimistic about travel spending, with 33% expecting travelers to spend more next year.

National surveys of 600 Travel Holiday readers and 30 USTOA members (representing 70 different brand names) also reveal that only 27% of Travel Holiday readers anticipate paying less on 2003 vacations, while 23% of USTOA members feel travelers will spend less (and 43% the same).

The vast majority of both Travel Holiday readers (68%) and USTOA members (86%) say travelers are now more prone to book vacations closer to departure.

USTOA members are more optimistic that escorted tour bookings will increase this year than Travel Holiday readers (77% vs. 18%). However, an additional 53% of readers believe it will remain the same.

Both groups were asked about what elements of an escorted tour appeal most to travelers. Travelers and USTOA members agree that convenience and price are the top two elements. Travelers rate not having to worry about planning next followed by security and traveling with others. USTOA members rate security ahead of planning. Following are the responses indexed to 100 (the higher the index number, the more favorable the response).

Travel Holiday: Convenience, 111; price, 107; no worries about planning,

97; security, 96; and traveling with other people, 89.

USTOA members: Convenience, 127; price, 109; security, 102; planning, 97;

and traveling with other people 64.

Travel Holiday and USTOA decided to find if there were differences in perceptions between travelers and travel suppliers. Similar questions were used in separate surveys fielded in October 2002. Travel Holiday's survey was conducted on its web site while USTOA members were queried by e-mail.

WTM  -  The World Under One Roof

eTurbo.com  -  The move to spacious new state-of-the-art venue at ExCel has coincided with the largest World Travel Market ever in its 23-year history. This is just one of the many changes at play at this year's WTM among many other things. Exhibition space has also increased to a soaring 36,850 square meters, which is up 12% compared to last year. Also a milestone is the representation of almost every region in the world with the addition of 17 new countries exhibiting for the first time. 

They are Algeria, Azerbijian, Yemen, Aruba, St. Maarten, Monaco, Serbia, Caouan Island, and Senegal resulting to a total on 5,000 exhibitors. Reed Exhibitions, WTM's organizers, point to the increase as a direct indication of support for the move to ExCel, which has seen the largest marketing and communications campaign ever undertaken by the event. They also noted that the opening day is the culmination of two years of detailed planning by the WTM team at Reed Exhibitions.

"World Travel Market is the world's largest and most important business to business international, travel and tourism event of its kind, where the 'world' comes together to shape the industry for the following years and beyond," remarked Mayor of London Ken Livingstone.

"ExCel, without doubt, matches the requirements for a venue where it can grow and develop and in addition opens up a new exciting area for London exhibitors and visitors to explore, packed with restaurants of every description, taste, style and price, shops bars, pubs, and other attractions," said WTM's Fiona Jeffrey. 

The event, which is situated next to a waterside location, allows visitors boat venue option and dining. WTM can be overwhelming especially to first-time visitors so the ubiquitous presence of team 'Ask Me' politely guiding exhibitors and visitors at ExCel and at the transport areas is a much- needed effort, which the WTM organizers deserves recognition for.

Truly living up to the all the hype and most certainly deserving, the WTM is the world under one roof, a unique experience for anyone whether they are industry insiders or simply a spectator.

Source:  eTurbo.com

French Caribbean Economy Hit By Accor  Pull

(VOA)  -  One of the world's largest hotel chains, Accor, surprised many people this week when it announced it would pull out of the French overseas territories of Guadeloupe and Martinique. The decision underscores the serious economic problems facing the two Caribbean islands.

There is trouble in paradise, or at least in the French Caribbean islands of Guadeloupe and Martinique.

During the past year, the overseas territories, known as the French Antilles, have witnessed a 20 percent drop in tourism, one of the major engines of their economies. Other key sectors, including banana production and construction, are also ailing.

Now Guadeloupe and Martinique are grappling with more bad news. In a letter to the French government, the world's third-largest hotel chain, Accor, announced it was no longer profitable for the chain to remain in the French Antilles.

"The crisis that is happening in the tourism industry is something terrible...," said Monique Barbut, program director for overseas territories at the French agency for development. "(For) a few years things (have not been so good.) There is huge (competition) from the other islands in the Caribbean."

Today, tourists are flocking to the beaches of nearby Cuba or the Dominican Republic, where prices are much lower. The cost of doing business is also higher in the French Antilles for groups like Accor.

Guadeloupe and Martinique have also been hurt by strikes and rising crime. The hotel chain also cited what it called the "aggressive" attitude of hotel staff toward tourists, compared the friendlier welcome offered on other Caribbean islands.

Ms. Barbut says tourism is key to the future of both islands, where educated youth are leaving in droves for France. Ms. Barbut believes Guadeloupe and Martinique should target rich tourists and focus on new markets, like the nearby United States, instead of Europe.

"Very few Americans are coming to the French Antilles," she said. "At the same time, with all that is happening in the world, people get scared to go to vacation anywhere. But when you come to the French Antilles, you come to France."

Unlike some other Caribbean islands, Ms. Barbut says, the French territories offer secure airports, and top-quality health care. But Ms. Barbut also believes the French islands must try to develop tourism packages with their Caribbean neighbors.

The French government is also trying to develop new business opportunities, including film and cartoon production, for its Caribbean islands.

Continued rapid growth predicted for China's tourism industry

(Xinhua) --A green paper issued here on Wednesday has forecasted an annual growth rate of about 10 percent for the next few years for China's tourism industry, in spite of the global downturn in the industry.

According to the paper issued by the Chinese Academy of Social Sciences and a publishing house for social science literature, the sustained growth in China's gross domestic product is expected to further stimulate the growth of the tourism industry, and the number of domestic tourists is expected to increase by about 5 percent annually in the next few years.

By the end of 2002, some 780 million domestic tourists will have traveled within China, generating revenue of 385 billion yuan (46 billion US dollars), the paper predicted.

Meanwhile, the number of Chinese tourists traveling abroad will continue to record double-digit growth, with Australia, New Zealand, the Republic of Korea and Japan among the most attractive destinations.

By the end of July 2002, 528 travel services had been authorized to organize tour groups to overseas destinations.

Between January and August 2002, China reported 64 million tourist arrivals from overseas, up 10 percent year-on-year, generating over 13 billion US dollars in foreign exchange revenue.

Major sources of tourists include the ROK, the Philippines, Indonesia, Thailand, Malaysia, Mongolia, Singapore, Japan, Australia, Great Britain, the United States and Canada, the paper reported.

The booming tourism industry has played a vital role in increasing consumption, reducing poverty and creating job opportunities.

Statistics show that by the end of 2001, China's tourism industry had reported total fixed assets of 779 billion yuan (93.8 billion US dollars) and employed nearly 6 million people.

The China National Tourism Administration, the industrial watchdog, expects the tourism industry to provide 40 million jobs in the coming decade.

In addition, the industry has received an influx of overseas capital in the last two years, with 11 Sino-foreign travel agencies established by the end of August 2002, the green paper said.

It predicted that most local travel agencies will accelerate the pace of their restructuring next year in order to face the new challenges posed by China's entry into the World Trade Organization.

Serbia's Tourism Bounces Back

Addressing a roomful of attendees at the World Travel Market on Monday were representatives from the National Tourism Organization of Serbia (NTOS). Evident from the presentation is the drive to spearhead an aggressive marketing campaign targeting both the European nations' travel trade and media. With a new slogan "Fall in Love Again with Serbia" the NTOS hopes to reestablish Serbia as a prominent European tourist destination.

"We are glad to be back at the WTM," said NTOS' Lubica Milovevic, who also claimed that Serbia has had an estimated 47% increase in tourism traffic in the preceding months. The NTOS showcased Serbia's travel highlights including their rich ecotourism potentials. Milovevic mentioned that the NTOS also recognizes the significance of the emerging ecotourism industry that they are planning an extensive focus in marketing campaigns for this specific travel market.

According to NTOS, their commitment to developing the tourism products in Serbia also meant the implementation of legislations on ski resorts and spas, increased investment in infrastructure and training, and has plans to increasing its accommodation facilities in 2003 by half. Milovevic also pointed out that the private sector will play an integral role in their efforts to revive Serbia's tourism through investment.

While the presentation resonated the unavoidable political undertones, the bid to reassert Serbia's niche tourism products was evident. "I have hope for my city," said NTOS' Zoran Novakovic, whose responsibility in the presentation was the introduction of Belgrade's tourism highlight. The NTOS plans to organize a number of educational trips for the travel trade and press throughout 2003.

Has 9/11 had an affect on  New York Compensation?

Written By:   Keith Kefgen   HVS International

Having experienced the 9/11 terrorist attacks first hand and a number of anniversary tributes, I wondered about the impact on hotel compensation. With the completion of our 2002 HCE Lodging Property Report©, I compared New York City compensation levels in 2002 and 2000. The analysis is concentrated in the upscale segment, where the potential impact would have been the greatest. Furthermore, five executive committee positions where chosen for the comparison, General Manger, Resident Manager, Director Food & Beverage, Director Sales & Marketing and Director of Human Resources.

Looking at Exhibit A, each of the five positions experienced a rise in the median base salary over the survey time period. The percentage gain in median base salary ranged from 24.6% for General Managers to 6.4% for Directors of Food & Beverage. The other positions all had double digit increases to base salary over the past two years. It appears that the economic downturn and 9/11 did not abate the rising cost of human talent in the New York hotel market. The dramatic increase in GM might also be attributable to the substantial growth in the upscale market and the dissipation of live-in maintenance.

The same cannot be said when it came to bonus compensation. Looking at Exhibit B, bonuses were generally lower except in the case of General Managers. For example, the median bonus for a Director of Human Resources went from $6,500 in 2000 to $0 in 2002. Directors of Sales & Marketing and Food & Beverage encountered a $5,000 drop in median bonuses, while Resident Managers saw only a slight decrease. General Managers on the other hand, had a 16.2% increase in median bonus pay, rising from $53,000 in 2000 to $61,600 in 2002. I surmise that leadership and crisis performance was considered when granting bonuses to GMs, while most others were primarily based on financial performance. The downward trend in bonus pay appears directly linked to the economic impact of 9/11. City officials estimate that New York will lose nearly $64 billion in economic activity and almost $7 billion in lost wages.

But with that said, I and other New Yorkers are optimistic about the economic opportunities and a turn-around for 2003 and beyond. Especially with the opening of the Mandarin Oriental New York next year, the bar will be raised once again in the luxury hotel market.

Keith Kefgen
President 
HVS Executive Search

Design Giant Hirsch Bedner Associates is Named  Top Hospitality Design Firm for Fourth Consecutive Year

November 13, 2002  – HBA/Hirsch Bedner Associates earns acclaim as “#1 Hospitality Design Firm” for the 12th year in the past 14 years, fourth year consecutively by Interior Design magazine (October 2002). 

The annual “Design Giants” survey is based on data submitted by firms for all design work that was completed within the twelve-month period of Jan.1 – Dec. 31, 2001. Design firm rankings are based upon total 2001 design fees, including fees attributed to all types of interior work, from strategic planning and programming to design and project management.

Among HBA’s highlights from 2001 are such notable openings as: St. Regis Monarch Beach Resort & Spa in Dana Point, Calif., Taj Palace Dubai in the United Arab Emirates, The Fullerton Hotel in Singapore and the Phoenicia InterContinental in Beirut, Lebanon

Pioneers in space planning, cultural attunement and guest experience, HBA has designed more than 600 of the world’s greatest hotels, resorts and spas, from traditional luxury brands to independent contemporary boutiques. Incepted in 1964, HBA maintains eight offices worldwide: Los Angeles, San Francisco, Atlanta, London, Milan, Dubai, Singapore and Hong Kong.