Newsletter - July 10, 2002

Some London Hotels Offer the Future for Guests

New York Times   -  Business travelers tired of lugging their laptops around should come here to get a glimpse of a less cumbersome future.

All over the world, in response to demand for the high-technology amenities that their guests enjoy in their homes and offices, hotels are racing to install high-speed Internet access, e-mail and a variety of wireless and digital services. The TriBeCa Grand Hotel in New York, owned by Hartz Mountain Industries, for instance, has in-room broadband Internet access and wireless keyboards so customers can surf the Net from bed. Each room at the Sandy Lane Hotel in Barbados has a 42-inch Panasonic plasma TV screen guests can use to roam the Web.

And the Plaza Hotel in New York, part of the Fairmont Hotels and Resorts chain, equips each room with a stand-alone personal computer. By the end of July, all of the Fairmont's 38 properties, including the Plaza, the Fairmont San Francisco and the Fairmont Dubai, will offer wireless Internet access in public spaces, enabling guests to check their e-mail messages while having cocktails in the bar, for instance.

Now, several hotels in London have moved to the forefront of this trend by combining fully equipped personal computers, high-speed Internet access and digital movies and music on demand in one unit, industry specialists say. The systems are often paired with flat-screen television sets that provide all the clarity of a PC without the problem of reformatting pages to fit traditional Web-TV services.

Designed by Neos Interactive, a privately held British company that bought the technology from a group of researchers at Trinity College Dublin in 1999, these all-in-one systems combine, in the space of a traditional television cabinet, a computer, scanner, printer and fax machine. Using a wireless keyboard, guests can collect e-mail messages, surf the Internet, download digital movies and music on demand, and even listen to local radio stations from cities around the world.

The Lanesborough, part of St. Regis Hotels and Resorts, became the first hotel in London to install the system two years ago in each of its 95 rooms. Now, the Dorchester, managed by the Dorchester Group, which is owned by the Brunei Investment Agency, is installing the same system in every one of the hotel's 250 rooms as part of a broader refurbishment. Fourteen rooms currently have the system, with 40 expected to be up and running by the end of July and the rest in September.

"This type of system is at the leading edge of hotel room technology," said Alex Lristou, a partner with the Travel Services Group of the consulting firm Accenture.

Lesley Ashplant, a consultant with Ernst & Young, said it was becoming the norm for high-end hotels to offer high-speed Internet access and videos on demand. "But," she added, "actually providing a PC and having it all integrated in one unit is quite unusual."

Since the systems are custom-designed, hotels choose the hardware separately. The Dorchester, for instance, is installing NEC 42-inch plasma screens in 90 rooms and 28-inch Loewe sets in the others. Each room will have a Compaq computer with a Pentium 4 processor complete with Microsoft Word, Excel and PowerPoint. No top-notch entertainment system is viable today without broadband, and so The Dorchester and the Lanesborough installed fiber optic cables that provide a high-speed Internet connection. Rather than paying the local telephone rate for Internet access, guests will pay a flat fee of £15, or $22.83, for access over a 24-hour period.

Executives who are able to eke out a few moments of leisure can choose from 60 movies on demand for £10 each, or $15.22, for unlimited access over a 24-hour period. Just as if they were watching a digital video recorder at home, guests can pause, rewind and fast-forward the films. Those in need of a little music while they work can download up to 5,000 tracks (£3.50 over 24 hours), or tune into local radio stations over the Internet like WNYC public radio in New York. E-butlers are on hand for questions.

Robert Bradford, who is married to the author Barbara Taylor Bradford and who is a regular guest at the Dorchester when he travels to London from his home in New York on business about twice a month, said he had tried the system and was impressed.

"I travel a lot," said Mr. Bradford, who also frequently shuttles between New York, California and Paris on business for Gemmy Productions, a TV production company he owns that produces made-for-TV movies of his wife's books. "And I've never seen anything like this in a hotel."

"The most amazing thing," said Mr. Bradford, speaking from his room at the Dorchester, "is you get local radio stations. I've been listening to TMPC in Los Angeles, and getting New York weather and the latest stock quotes from Bloomberg Radio."

Dermot Desmond, the Irish billionaire and chairman of the Sandy Lane Hotel, who also is a frequent guest at the Dorchester, said he found the system invaluable.

Other frequent business travelers said they were unsure whether they would really use all the bells and whistles the system provided. For instance, they doubted whether the service would eliminate the need to lug around laptops, which provide access to their company's servers and e-mail accounts as well as documents on their hard drive.

"The movies and music is gee-whiz and interesting, but with the small amount of time you spend in the room on a business trip if you can get your e-mails fast and make yourself efficient, that's the most important thing," said Barry Frey, managing director of international advertising sales for the Hallmark Channel, a unit of Crown Media Holdings.

Still, other executives said such a system would greatly simplify their lives on the road.

"Hotels are way behind the curve," said Jay Firestone, the chief executive of Fireworks Entertainment, a unit of the Canwest Global Communications Corporation of Canada. Topping the list of Mr. Firestone's grievances are waiting hours to download e-mail messages from traditional telephone lines and a lack of understanding on the part of hotel staff that business often goes on around the clock. While staying in a hotel in Paris, for instance, Mr. Firestone said he was reprimanded for working past midnight.

Mr. Firestone, whose company produces and distributes films and television shows like "Rules of Engagement" and "La Femme Nikita," said he often must make casting and editing decisions while traveling by downloading photos and daily rushes onto his laptop.

nH Hotels sales increased 15%; re-branding nears completion

PRNewswire - At the nH HOTELS' General Shareholders' Meeting held on Thursday, June 27 in Madrid, company Chief Executive Officer and President, Gabriele Burgio announced that the company's sales had increased 15% to $ 322 million as of May 31, 2002 although the company is still recovering from the economic slowdown of recent months following the events of September 11th. nH HOTELS is one of Europe's largest lodging groups. Based in Madrid, the company maintains an impressive portfolio that currently numbers 237 hotels, with more than 34,000 rooms in 18 countries. An additional 38 new projects currently under construction will add 6,647 rooms. nH recently announced plans to introduce its brand to the U.S. market with an aggressive, multi-faceted marketing and sales campaign and the establishment of sales offices in New York, Miami and Houston.

In his address to shareholders, Mr. Burgio also reported that occupancy levels throughout the company's properties in Spain is at 68%, and close to 64% for nH's properties throughout Europe. Occupancy among similar properties within the first five months of the year totalled 66%, with RevPar at almost $ 62.

These levels are close to those reached during the same period in 2001.

Mr. Burgio also stated that one of the company's main objectives is "to complete the re-branding of all nH hotels by December 2002 while focusing the company's efforts on achieving market leadership in those countries in which it operates. These efforts will focus on the conversion of the Krystal properties in Mexico and the Dutch Krasnapolsky properities. We will address the re-branding of the recently acquired Astron hotels throughout Germany once we complete a market study currently underway."

In response to the company's 2001 results, Mr. Burgio said, "These strong results are primarily due to strategic national and international expansion efforts that have allowed us to maintain our quality and customer service standards." Mr. Burgio went on to say, "nH opened 13 hotels last year with more than 1,700 rooms and acquired nH Mexico, the chain's first business venture in one of Latin America's most important markets." He also mentioned the recent acquisition of Astron Hotels, a leading company in Germany with 53 hotels and more than 8,300 rooms.

To provide the company with the financial flexibility to continue on with its aggressive expansion plans, nH shareholders authorized the company's Board of Directors to approve capital increases as well as convertible securities issues.

Lastly, Gabriele Burgio stressed the importance of merger-driven synergies as part of a cost-savings plan the company is currently implementing. This plan will enable the chain to save $ 74.2 million between now and the year 2005. Thus far, nH has succeeded in realizing an overall savings of $ 10.3 million.

Key Appointments

nH shareholders approved the appointment of two key Board members at last week's meeting. Alfredo Fernandez Duran has been appointed to the Board of Directors as a representative for Amancio Ortega, who owns Zara, along with other businesses. The new nH HOTELS Board Member will serve as Head of Investments of Amancio Ortega's private portfolio.

Shareholders also ratified the appointment of Bancaja's current Deputy General Manager Aurelio Izquierdo Martinez, as Bancaja's representative to the Board of Directors, which was effective three months ago.

The shareholders' decision to appoint these top executives representing Bancaja and Amancio Ortega reinforces their trust and confidence in the management of the nH HOTELS chain. Both entities have recently acquired a 5% share in nH as confirmed by Spain's National Stock Exchange Commission.

In addition to the new appointments, nH shareholders also approved the Board of Directors' proposal for the merger of nH HOTELS and the Promociones Eurobuilding, where the chain already held a 98.5% share of ownership.

ABOUT nH HOTELS

The nH HOTELS, (http://www.nh-hotels.com), following the acquisition of the Dutch chain, Krasnapolsky in July 2000, the Mexican chain Krystal in June 2001 and the German hotel chain, Astron last 25th February, is now Europe's third ranking business hotel chain. nH operates 237 hotels and 34,179 rooms in 18 countries in Europe, Latin America and Africa. The recent acquisition of Astron, the third leading city hotel in Germany, has consolidated nH's presence in Europe. nH currently has 35 new projects under construction that will add close to 6,700 new rooms.

News@PATA

PATA TRAVEL MART DATES AND VALUES AFFIRMED

PATA confirms the 26th PATA Travel Mart will take place at Suntec Singapore, October 1-3, 2003. On June 27, PATA announced it would resume full control of the Mart, effective immediately. PATA Managing Director-Events, Ms. Sheila Leong, said the PATA Travel Mart would emphasise PATA Events’ core values: personalised service, a detailed understanding of the industry, and a determination to attract the best product buyers. Competitive buyer and seller rates will be announced soon. For further information e-mail Ms. Leong at sheila@pata.th.com.

MEKONG TOURISM FORUM DETAILS ONLINE

The 8th Mekong Tourism Forum (MTF) will take place in Hanoi, Vietnam, March 28-30, 2003. Initial programme highlights can be found at http://www.pata.org/events/eprog.cfm?ebid=35. People interested in the future direction of tourism in the Mekong region can subscribe to the new monthly Mekong Tourism Forum newsletter by e-mailing MTFnews@pata.th.com. All previous MTF delegates are invited to fill out an online survey on the future direction of the Forum. The survey is at http://www.allaboutaccess.net/9thmtfsurvey.htm.

CHASING MICE IN VIETNAM

The PATA Vietnam Chapter will run a July 30 seminar in Hanoi called "A Mission to MICE in Vietnam." Guest speakers include Mr. Anthony Wong of Malaysia-based Asian Overland Services, Mr. David Barrett of Bangkok-based Diethelm Events, Mr. Ngyuen Van Luu of the Vietnam National Administration of Tourism, Mr. Duong Tri Thanh of Vietnam Airlines and Mr. Do Dinh Cuong of VINATOUR. For programme information or to enrol, contact the PATA Vietnam Chapter. Tel: (84-4) 822-3174. Fax: (84-4) 822-3169. E-mail: nhungvnat@hotmail.com. 

SPECIAL PATA MEMBER RATE FOR HEALTH EVENT

PATA members are being offered 20 percent off show space at the International Health Tourism & Holidays Exhibition, Manama, Bahrain, January 20-23, 2003. The event is the first international event held in the Middle East for the rapidly-growing health-related travel sector, which comprises conventional medicine and different approaches to physical and spiritual rejuvenation. All PATA members have the option of exhibiting in a dedicated Pacific Asia zone. For further information visit www.amadeusifg.com. Or e-mail Mr. Kamal Al-Yousif at kamal@amadeusifg.com. A PATA Board of Directors meeting will take place, January 17-19, 2003 at the Gulf Hotel, Manama, Bahrain.

PATA AMERICAS MEET TO SET SAIL

The 14th PATA Americas Division Meeting will take place October 29-November 3, 2002 aboard the 2,000-berth NCL Norwegian Sky. The cruise departs Miami, Florida, October 29 stopping in Philipsburg, St. Maarten, November 1, St. Thomas, US Virgin Islands, November 2, with final disembarkation in San Juan, Puerto Rico, November 3. Delegates can join sessions such as the PATA outlook for the North American outbound market 2003 and promoting special interest travel such as cruises, culture/heritage and adventure. There will be an interactive session on chapter development. Keynote speaker is Ms. Sue Shapiro of Shapiro Travel Resources. For a list of registration fees and further information tel: (1-510) 625-2055. Fax: (1-510) 625-2044. E-mail: bill@pata.org.

EARLYBIRD DEADLINE JULY 15

The earlybird deadline for the 1st PATA Sustainable Tourism Conference & Mart is July 15. Delegates who register and pay by MasterCard are entitled to a 10 percent discount on registration fees for the October 23-26, 2002 event in Banten, Western Java, Indonesia. The event now includes a one-and-a-half day mart dedicated to sustainable and adventure-related tourism products. For further information visit www.pata.org.

PATA STRATEGIC INFORMATION CENTRE WORLDWATCH

* Macau International Airport has reported a nine percent increase in passenger movements and a 14 percent increase in aircraft movements (landing and take-off) in the first half of this year. There was a 53 percent rise in freight traffic.

* On July 8, Korea (ROK) announced new tax incentives to attract foreign investment. A Ministry of Finance and Economy bill proposes a range of fiscal incentives for foreign distribution firms and resort developers which invest more than US$30 million in the country.

* The Maritime and Port Authority of Singapore has officially unveiled its Integrated Simulation Centre, a one-stop facility in skills training from ship-handling to crisis management. The centre fully meets the requirements of the International Convention on Standards of Training, Certification and Watchkeeping.

IMHI  celebrated 20^th Anniversary

More than 450 alumni, industry professionals, ambassadors and guests of the graduating class of 2002 came together for IMHI’s 20th Anniversary event held from 20 – 22 June 2002 in Paris. Themed ‘Celebrating 20 Years of Successful Partnerships’, this conference celebrated not only the success of the joint venture between Cornell University’s School of Hotel Administration and ESSEC Business School, but also highlighted the important partnerships which IMHI has developed with the industry over this period.

A commemorative book ‘From Vision to Reality – The History of IMHI 1981 – 2002’ and a video were produced to mark the anniversary event. Paying tribute to IMHI’s history and continuing evolution over the last 20 years were contributions from its founders, Dominique Xardel, Former Director, ESSEC, Robert Beck, former Dean of Cornell Hotel School and former Director of IMHI, and Serge Perrot, former inspecteur responsible for hospitality schools in France’s Education Nationale; directors of the programme since its inception; and representatives of IMHI’s classes since 1983. 

Launching the anniversary event, Richard Edelstein, Director of IMHI commented “Our primary objective for this event is to strengthen our alumni network and our transatlantic partnership through a celebration of our past success and to renew our energy for the development of IMHI in the future.” Alumni from practically every class since IMHI’s launch came from as far afield as Argentina, Mexico, India, UAE and the United States to join those from Europe to participate in the global network. Key figures from IMHI’s past and former directors, as well as industry partners, including sponsors Accor, Elior, Euro Disney S.C.A and Sodexho were present to testify to IMHI’s success.

Providing a forum for stimulating dialogue and exchanging ideas, the event’s educational programme on 21 June took place at the ESSEC Campus in Cergy Pontoise. Jean-Marc Espalioux, Chairman of the Management Board & CEO of ACCOR, and Marie-Laure Djelic, Professor, Department of Human Sciences, ESSEC participated in the keynote session “Globalisation – Where are we Heading?”.  Facilitated by Michael Olsen, Visiting IMHI Professor and Professor Strategic Management, Virginia Tech, they debated issues such as what is globalisation?; how can companies resolve potential conflicts between the pressures of global capital movements and those for increased social responsibility? How can global company permeate values throughout their widespread locations?  

Observing that the framework for such discussions had radically altered since September 11th, Marie Laure Djelic highlighted three prevailing approaches to the issues of globalisation.  She believed that the discourse could be broken down into three sub-categories – the believers, the sceptics and the critics. The ways in which companies tackle these complex issues implies an underlying ideal about how they view globalisation, and this in turn has implications for their strategy, structure and human resources. 

Jean Marc Espalioux underlined the importance of implementing a long term strategy and values across the company in addressing many of the issues of sustainable development facing companies today. “In a business such as ours” he noted, “with a focus on clients first, developing values throughout an organisation may be easier than in a financial markets company focusing on abstract concepts”.  Espalioux stressed the importance of continuity and strategic direction in this regard, pointing out that Accor had effectively only had two CEOs since its foundation over 35 years ago. He added “Accor also places great importance on seeking partnerships with governments in order to promote sustainable development between its hotel companies and local and national governments”.  He believes that human capital and achieving world-wide recognition would be among the major challenges facing global hospitality companies over the next five years.

Entitling his presentation ‘Thought for the Day’, Peter O’Connor, Assistant Professor IMHI, briefly described the status of technology in the hospitality industry today, which continues to change all the rules of the game since new and advanced services cannot be ignored. “Technology is fast changing the customer, who knows what he wants, has zero tolerance of delay and is less loyal to brands than in the past” he underlined. “Is your hospitality company fundamentally ready?” he challenged.

The morning’s session “Leaders in Innovation”, facilitated by Jan de Roos, HVS International Professor in Real Estate, Cornell Hotel School, brought together an inspiring cross-section of entrepreneurs who have succeeded in standing out in their niche markets.  In an animated session, they shared some of their experiences in learning from failure and achieving success.

Ajay Bakaya, a graduate of IMHI’s first class of 1981-1983, and partner and Executive Director of Sarovar Park Plaza Hotels and Resorts, India, stressed the importance of local players in any market “The small hotelier has a firm commitment to his business – unlike major corporations, he cannot walk out”. He advised “There is value in thinking of the guest as a part owner of the hotel.”  

Philippe Bloch (ESSEC 1982), Co-President of Columbus Café, founded his firm in 1993, successfully introducing the gourmet coffee concept for the first time in France. Initially a flop, his partner and he learned that failure can also be the best business school. “Location, location” turned out to be key. Trying is important he urged– “winners never quit and losers never try”.

Sharing his passion with delegates, Dominique-Charles Janssens, President of the Institut Van Gogh, showed how he turned a dream into reality: a vision of a renovated inn offering delicious food, whilst maintaining the upstairs bedroom which was rented to Vincent Van Gogh during his stay at Auvers. The House of Van Gogh is now known world-wide and attracts 100 000 visitors a year. 

Grace Leo-Andrieu (Cornell 1977) President of GLA International, saw a niche market many years ago in offering professional consulting services to the small, luxury, independent hotel sector. “Among the key words in the luxury sector are intimacy and cocooning – the opposite of a mass market experience. Customised service, delivered with sincerity and authenticity, is being increasingly sought by clients” she explained. Although she has adopted a niche market approach, she has also turned out to be a trend-setter “Over the past five or six years, I’m pleased to note that my hotels are being used as references by some major hotel groups”. 

“With entrepreneurship, each experience is unique”, underlined Hamid Bouchikhi, Professor of Strategy and Management and Director of the New Business Center at ESSEC. “There is no such thing as a good or bad project before you try. Every idea has to have a chance”. The New Business Center provides the supportive environment needed. It challenges students to think big and “out of the box.”. He stressed “There is no age for it – the experience can come in early, middle or late life. Even if the venture fails, it will be a valuable experience that will help you in other ways”. 

In addition to the business conference, the Anniversary event provided numerous networking for alumni and industry professionals from around the world. The conference kicked off with a Cocktail Reception on 20 June sponsored by Elior at their prestigious venue ‘Le Toupary’. On 21 June, the conference was followed by a networking lunch sponsored by Sodexho, and in the evening “Fête de la Musique” was celebrated by a cocktail, dinner and cruise on the Seine. Two sightseeing tours were offered on the morning of the 22nd – a walking tour of Montmartre and a visit of the Hotel Four Seasons George V. The Graduation and Gala Evening were held at the Pavillon Gabriel, Potel & Chabot on Saturday 22nd June.

IMHI is Europe’s leading MBA in International Hospitality Management jointly operated by Cornell University’s School of Hotel Administration and ESSEC Business School, making it a real business school for hotel, restaurant and tourism managers. IMHI’s 18-month study program prepares future leaders for the hospitality industry; it is truly international and keeps close ties with the sector’s leading corporations. Entry requirements include bachelor’s degree education, fluency in English language and prior professional experience in hotel, restaurant or tourism industries. Over the last twenty years IMHI has evolved from a diploma based program with 40 graduates, to a fully-fledged MBA in International Hospitality Management, with over 900 alumni world-wide.

ESSEC Business School is a leading private graduate school of management (established in 1901), consistently ranked first or second in leading surveys of higher education in France. It is accredited by the AACSB International – The Association to Advance Collegiate Schools of Business, and affiliated to the Chamber of Commerce and Industry in Versailles, Val d’Oise, Yvelines.  

UK Hotels pay for guidebook entries

e-Tid.com   -  According to the Sunday Telegraph, many of Britain’s most popular travel guides are charging hotels, restaurants and pubs to be featured, contrary to public perception that they offer an unbiased view.

The Telegraph reports several guides exclude venues if they refuse to pay, while others allow them to ‘vet’ or even provide their own entries. In some cases, publishers conceded that, despite claims to include only the finest venues, as few as 2% of paying applicants were denied a place.

One of the guides criticised by the paper, Johansens Recommended Hotels, Great Britain and Ireland, charges up to £3,360 per year for entries and rejects only 10% of paying applicants. Relais & Chateaux, meanwhile, charges featured venues an admission fee of more than £6,000, in addition to an annual membership of £7,114.

The ‘pay for entry’ publications were criticised by rivals who produce objective guides. Food critic Egon Ronay, famous for his independent hotel and restaurant guidebooks, told the Telegraph: ‘Accepting payment for a review is 100% wrong. It is like a priest prostituting himself. I would have punched a man in the face if he had offered me money to be in my guide.’

However, Marilyn Watkinson, sales and marketing director of Down Hall Country House Hotel in Hatfield Heath, defended the venue’s decision to feature in the 2002 edition of Johansens. ‘Placement in their guide and website is simply advertising. It comes out of our advertising budget. It is expensive but they work hard on your behalf.’

The guides that charge for inclusion contacted by the Telegraph, which included the RAC and the AA, denied that the integrity of their books was being undermined. All said that accepting sub-standard venues would damage their reputation and hence sales.

A spokesman for Johansens told the paper that ‘independent authors write their comments base on inspectors’ reports’, while Les Routiers said: ‘We are first and foremost not a guide but a hotel and restaurant association which produces a guide. There is a distinction'

Yo!Sushi founder moves into hotels

e-Tid.com  -  Simon Woodruffe, founder of Yo!Sushi, is thinking of launching a hotel brand, Yotel, according to The Business. The paper says the hotel would be a ‘cross between Japanese capsule hotels and British Airways’ first class sleeper accommodation.’

It suggests a Yotel will open in London in 2003. Woodruffe is also tipped to be looking at health club and spa brand, Body Yo!

Recovery in sight for Singapore’s Hotel industry

The Straits Times, Singapore  -  Hoteliers in Singapore are positive that the hotel industry in Singapore, which was hit badly after the Sept 11 terrorist attacks in the United States, will recover in the second half of the year.

In fact, hoteliers are saying that their occupancy rates are clawing back to pre-Sept 11 levels.

So upbeat is their outlook that they are even predicting an increase in room rates down the road.

Mr Yasuhiro Uetani, general manager at The Pan Pacific Singapore, said that business 'will definitely recover' in the second half.

Among his reasons:

The recovery of a sense of security among travellers;

The staging of upcoming international conventions and exhibitions in Singapore;

Increased trade between Singapore and China; and

The opening of arts venues in Singapore, such as the Esplanade - Theatres on the Bay.

The Pan Pacific says that its occupancy rate - which had dropped 'rapidly' from 71 per cent in October to 46 per cent in December - is above 70 per cent currently.

'We're looking at the market carefully and are hoping to improve our room rates as occupancy rates recover,' said Mr Uetani. 'The outlook for the industry has become very optimistic.'

When contacted, other hotel players in Singapore - such as The Conrad Centennial, Sheraton Towers and Six Continents Hotels, which operates hotels including Inter-Continental and Holiday Inn - gave the same view on the industry.

Without providing figures, The Conrad Centennial at Temasek Boulevard said that its occupancy rates have recovered 'greatly'.

Sheraton Towers, which is located along Scotts Road, said its occupancy rates have risen to more than 70 per cent. A spokesman said the hotel's room rates will be increased 'tactically' for 'selected market segments' for the rest of the year.

Meanwhile, data released by the Singapore Tourism Board (STB) shows that the average islandwide occupancy rate in the first four months of the year had risen to 74.9 per cent, from the average 72.6 per cent recorded in the final four months of last year.

Following the Sept 11 terrorist attacks, the Singapore hotel industry took a hit, with several players reporting falls in their occupancy rates.

The average occupancy rate across the island dropped from 74.4 per cent in September to 70.4 per cent in December.

According to STB data, the number of visitors to Singapore dropped 2.2 per cent to 7.52 million last year, from a record 7.69 million visitors in the previous year.

Reflecting the fall in occupancy rates, the average room rate across the island dropped to $ 123 in December from $ 133 in October.

The drop in visitor arrivals, coupled with falling room rates, spelt lower profits for some Singapore hotel players.

For example, Amara Holdings - which operates the Amara Hotel in Tanjong Pagar - plunged into the red with $ 4.3 million in net losses for the year ended Dec 31, from a net profit of $ 1.7 million previously.

In an attempt to attract more customers, hotels in Singapore have offered a slew of promotions and discounts.

Sheraton Towers, for instance, launched an 'Endless Weekend' discount package to entice guests to spend longer weekends in the hotel.

For its part, The Conrad Centennial partnered several airlines to let its guests earn points which entitled them to better room rates.

During the World Cup season, Holiday Inn teamed up with Coca-Cola to offer discounted rates and gave guests the chance to win 'soccer suite parties'.