Newsletter - March 13, 2002

THISTLE CONFIRMS £600m SALE-AND-LEASEBACK

Thistle Hotels has completed a £600.4m sale-and-leaseback deal on 31 regional hotels and six London properties. The hotels have been bought by Gamma Four Ltd, parent of property company Orb Estates.

Thistle guarantees that the 37 hotels will make £45m EDITDA each year for the first ten years following completion of the deal. Thistle’s maximum liability over the ten years is capped at £90m.

It has signed 30-year management contracts on the portfolio.

The London hotels sold off are: Thistle Lancaster Gate; Thistle Bloomsbury Hendon Hall; Cannizaro House; Thistle Kensington Park; and Thistle Kensington Palace. It still owns 16 London properties.

The regional hotels cover its entire non-London portfolio apart, from the Thistle Heathrow and Thistle Edinburgh.

ITB TOURISM FAIR REPORTS SECOND HIGHEST NUMBER OF EXHIBITORS

D P A   -   Despite shock cancellations from some of the travel industry's biggest names, the organisers of this year's International Tourism Exchange (ITB) say 9,875 exhibitors from 181 countries will be participating in this year's show running March 16-20.

This is a far higher number than one might have expected, given the body blow dealt the travel industry by the September ll hi-jack horror in New York last year.

"It's the second highest number of exhibitors in the 36-year-old history of the ITB, said Michael T.Hofer, the trade fair management's spokesman at Monday's preview press conference. "So please don't be misled - it's very much business as usual this year."

Jolted by the absence of some of its more important exhibitors this time round - Thomas Cook and Lufthansa among them - the ITB organisers are putting on a brave face in Berlin

Christian Goeke, the Berlin Trade Fair boss, admitted that several "notable" German tour operators were not attending.

But he insisted that these exhibitors did not represent the ITB's "core" business, which had remained unaffected "even after the cancellations became known. 181 countries and territories comprising destinations around the globe, plus the international hotel trade, will be very much in evidence here.

"Even from the USA we are not receiving cancellations but clear declarations from people and organisations determined to appear at the ITB Berlin, Goeke added.

"This reiterates the words of the slogan being used by the USA at the fair, which is, 'America is open for Business.' Consequently we, as the organisers, also say: 'The ITB 2002 is open for business,'," said Goeke.

Last year had seen the American continent suffer a seven per cent decline in tourism, which was partially explained by economic problems affecting Brazil, Argentina and Japan and by a drop in consumer confidence in the United States.

Southern Asia had experienced a six per cent decrease. However, tourism arrivals in East Asia and the Pacific region had risen by four per cent, although the rate of expansion prior to the events of September ll had been twice as high

A number of destinations had been affected by Japan's economic downturn. Destinations that had performed best were China, Hong Kong, Malaysia and Thailand, he said.

Goeke said the ITB symbolised stability. Seventy-five per cent of the exhibitors were from abroad and Germany was represented by 2,464 exhibitors and 35 additionally represented firms and organisations.

Following varying periods of absence from the ITB such countries as Azerbaijan, Bosnia-Herzegovina, The Comoros, Laos, Mauritania, Mozambique, Senegal, the Virgin Islands and Yugoslavia were again represented in Berlin, he said.

Klaus Laepple, president of the German Travel Agents' and Tour Operators' Association, said that where German package tours were concerned, Bulgaria, Croatia, Egypt and Turkey remained destinations in fashion.

Regarding medium trend hauls, Bulgaria was almost fully booked up, and Croatia had done a great deal to improve its infrastructure and was profiting from alternative forms of incoming travel offered by aircraft, buses and cars.

Laepple said that in 200l Turkey had probably broken through the three million barrier in terms of German visitors - "thus reaching the same sort of level as Mallorca".

Juergen Linde, president of the German Tourism Association, told travel journalists that Germany was also proving to be "an increasingly popular destination".

The number of visitor overnights in 200l had reached 327 million - a 0.3 per cent increase over the previous year, with the largest growth occurring in Mecklenburg West Pommerania (8.3 per cent) and in Brandenburg (5.4 per cent), he said. dpa

SINGAPORE REPORTS 9.4 PCT FALL IN JANUARY TOURIST ARRIVALS
 
Agence France Presse  -  Visitor arrivals in Singapore dropped 9.4 percent in January from a year earlier with the industry still haunted by the September terror attacks in the United States, tourism authorities said Monday.

The Singapore Tourism Board also blamed the decline on the global economic slowdown, which has affected consumer sentiment in the region, and the shift of the Lunar New Year holiday from January last year to February this year.

"The global economic slowdown coupled with the negative repercussions of the September 11 terorrists' attacks continue to affect arrivals from all regions," the board said in a statement.

A total of 596,069 tourists visited the Southeast Asian city-state with Indonesia accounting for the largest number of visitors even though arrivals from there fell 9.4 percent to 104,918.

China, the second biggest market, slumped 11 percent to 50,272 while arrivals from third-placed Australia dropped 5.7 percent to 47,522.

Arrivals from China, Hong Kong and Taiwan were largely down because of the later Lunar New Year, with the number of holiday visitors from Hong Kong down 59.1 percent in January, the board said.

On the positive side, arrivals from South Korea grew 18 percent to 38,605 "as a result of the increase in business-related traffic," the board said.

South Korea was one of three countries to post a rise in arrivals, along with India and Thailand. Thai tourists rose 7.3 percent to 18,603 while arrivals from India grew 4.8 percent to 24,827.

Arrivals from Singapore's nine other major markets all declined.

2002 RESORT MANAGEMENT CONFERENCE

More than 200 hospitality and lodging management professionals will convene at the Broadmoor Hotel, April 14-16, to learn about the latest travel trends and look into what the future may have store for the resort industry at the 2002 Resort Management Conference. 

Presented by the University of Denver School of Hotel, Restaurant, and Tourism Management and the International Resort Managers Association, the 2002 gathering will feature timely presentations by nationally recognized travel and resort industry leaders. 

"Relevant new travel and hospitality management information will emerge from this year's conference," said Peter Rainsford, director, Univ. of Denver, School of Hotel, Restaurant & Tourism Management (HRTM). "The entire travel industry has been impacted by the events of September 11.  We anticipate a considerable amount of new information to be unveiled by the 2002 conference presenters.  The conference will allow attendees to look into the travel and lodging industry's future with a fresh perspective for making necessary operations and marketing decisions."

One of the highlights of the conference will be the announcement of the 2002 Resort Executive of the Year.  The annual award will be presented on April 15, recognizing a resort executive whose leadership and accomplishments within the resort industry are deserving of industry-wide acclaim.  The honoree is selected by a committee comprised of leading resort management professionals.  The award is sponsored by the University of Denver and Yesawich, Pepperdine & Brown (YP&B), Orlando, Fla., America's leading marketing, advertising and public relations agency specializing in serving travel and leisure-industry clients. 

Three different general session presentations, where new industry-wide data will be featured, are among the most anticipated events in the entire resort conference:

Monday, April 15 general session presentations

"Travel trends: Where are we headed?" presented by Peter Yesawich, president & CEO of Yesawich, Pepperdine & Brown, including recent survey information and data derived from consumer and business travel studies conducted by YP&B. 

Included will be a panel discussion among executive leaders for some of America's most recognized resorts including:

• Stephen Bartolin, Jr., president and CEO, The Broadmoor Hotel & Resort, Colorado Springs, Colo. 
• Dr. Richard Kelley, chairman and CEO, Outrigger Hotels and Resorts, Honolulu
• John Munn, president and owner, Vista Verde Ranch, Steamboat Springs, Colo., currently serving as  President, Colorado Dude and Guest Ranch Association 
• Charles S. Peck, president and CE, Destination Hotels & Resorts, Denver

"Industry trends: Where are we headed?" presented by Michelle Russo, senior analyst and vice president, Deutsche Bank Alex. Brown, New York. 

Tuesday, April 16 general session presentation

"What is a resort and how profitable is it?" presented by W. Mark Woodworth, vice president, PKF Consulting Group, Atlanta and Brian Ferguson, president, Real Time Hotel Reports, Ithaca, NY and Scott Steilen, principal and managing director, Warnick & Company, Chicago. 

Included will be a panel discussion among lodging experts:

• Ed Mace, president, Vail Resorts Lodging Company, Vail, Colo. 
• J. Craig Madison, vice president and general manager, The Grove Park Inn and Resort Asheville, NC 
• Michael Sansbury, regional vice president and managing director, Loews Hotels at Universal Studios, Orlando, Fla. 

In addition, ten different breakout sessions, each exploring specific aspects of resort management and presented by resort, hospitality and lodging authorities, will be conducted throughout both days, including:

Monday, April 15 breakout sessions

"How to understand your guest: Ask the right questions" presented by Stowe Shoemaker, Ph.D., Harrah College of Hotel Administration, University of Las Vegas. 
"Information technology 101" presented by Dan Connolly, Ph.D., School of Hotel, Restaurant, and Tourism Management, University of Denver. 
"Non-traditional resort management" presented by David Levine, chairman, president and CEO, ResortQuest International, Memphis, Tennessee. 
"Asset management in the resort industry" a panel discussion of hotel asset management and management experts including:

• Craig Mason, vice president, asset management, Host Marriott, Bethesda, Maryland
• Kevin Mahoney, executive director for hotel investements, Amstar Group, Denver
• Todd Noon, vice president, strategic capital, New York
• John McCarthy, executive vice president, Liberty Hospitality Group, Naples, Fla. 

"A Look into the Future: What information technology has in store for the resort industry" presented by Dan Connolly, Ph.D., School of Hotel, Restaurant, and Tourism Management, University of Denver and Beth Harwood, senior vice president, Resort Technology Partners. 
"The Role of Wine in Resort Operations" presented by H.A. "Andy" Devine, Ph.D., School of Hotel, Restaurant, and Tourism Management, University of Denver. 

Tuesday, April 16 breakout sessions

"How to create value to keep your guest coming back" presented by Stowe Shoemaker, Ph.D., Harrah College of Hotel Administration, University of Las Vegas. 
"Human resource issues for 2002: what will they be?" panel discussion including:

• John Andre, director of human resources, Colonial Williamsburg Foundation, Williamsburg, Va. 
• Fern Canter, director of human resources and labor relations, Turnberry Isle & Resort Club, Aventura, Fla. 
• Christopher Fullager, director of human resources, Arizona Biltmore Resort & Spa, Phoenix. 

"Case Study: Loews Resorts at Universal Studios" presented by Michael Sansbury, regional vice president and managing director, Loews Hotels at Universal Studios, Orlando, Fla. 
"Case Study: Bachelor Gulch Ritz Carlton" panel discussion by experts in the development of hospitality and lodging real estate, including:

• Karim Alibhai, president, Gencom, Miami
• Jim Mandel, senior vice president commercial development, Vail Resorts Development Co., Vail, Colo. 
• John L. Williams, senior vice president, North American development, Marriott International, Bethesda, Md. 

Individuals interested in attending the 2002 Resort Management Conference can contact Dede Dierkes, School of Hotel, Restaurant, and Tourism Management, University of Denver, at 314-961-4560 or e-mail ddierkes@resort-managers.org. 
The conference registration fee is $495 with a guest registration fee of $195.  Payment can be made by check (payable to School of Hotel, Restaurant, and Tourism Management) or major credit card.  Confirmation will be mailed upon receipt. 

Contact:
2002 Resort Management Conference
www.resort-managers.org

SHANGRI-LA & EVENTCLICKS TEAM UP TO STREAMLINE EVENT PLANNING

Shangri-La Hotels and Resorts is launching a new online registration and meeting management service for event planners at the Business Travel Expo (BTE) in Hong Kong this week.

By teaming up with EventClicks, distributor of the Event411 Premier Planner service, Shangri-La will be in a better position to help organisers plan events effective next month. PremierPlanner gives meeting planners total control of the process, with online registration, meeting management, housing, reporting and e-marketing.

Carmen Lam, group director of sales and marketing for Shangri-La says, "Creating a web-based meeting registration site is expensive and difficult to do on an individual basis as well as time-consuming for organisers, but this is something meeting planners need and want. We have teamed up with Hong Kong-based EventClicks, the Asian distributor of Event411, so that our hotels can further assist planners in creating and executing successful events."

EventClicks’ CEO, Tom Murphy says, "Shangri-La has taken the lead by embracing this technology and introducing it to its client base across the region. We are delighted to be working with such a visionary group."

Shangri-La’s meeting services teams will create customised event registration sites for planners who book events at any Shangri-La property. With Event411, event attendees can register, book rooms, review agendas and confirm participation in events online at any time.

Meanwhile, meeting planners can get up-to-the minute registration numbers, pull attendee profiles and track expenses across events.

PATA NEWS & UPDATE

FRANGIALLI TO DELIVER KEYNOTE ADDRESS
PATA is pleased to announce that Mr. Francesco Frangialli, Secretary-General of the World Tourism Organization, will deliver the Keynote Address on April 17 at the 51st PATA Annual Conference in New Delhi. "I am delighted that Mr. Frangialli has accepted our invitation," said Mr. Peter de Jong, PATA President and CEO. "No one is better placed to inform us about the current challenges and forthcoming opportunities in our dynamic industry. The WTO's expertise in public- and private-sector partnership will be particularly relevant in light of this year's conference theme, Tourism - Looking Ahead and Beyond." Visit www.pata.org for PATA Annual Conference registration forms, airline discounts, programme information and pre- and post-Conference tour options. Fax: (66-2) 658-2010. E-mail: conference@pata.th.com.

PATA AT ITB
The PATA stand at ITB 2002 will be located in Hall 26A, #18, where more than a dozen co-exhibitors will share space with us this year. PATA will also hold a South Asia Update Media Briefing on Monday, March 18, from 1715 to 1800 at the PATA stand; India, Nepal, Pakistan and Sri Lanka are the confirmed participants to date. We welcome all members, chapter members and media to stop by our stand at any time during the show.

MARCH 15 DEADLINE FOR MEKONG AWARDS
This Friday, March 15, is the deadline for PATA Asia Division to receive entries for the first PATA Mekong Innovative Tourism Product Awards. The Awards will take place during the Seventh Mekong Tourism Forum in Yangon, Myanmar, April 4-6. Any commercially-available product launched after January 1, 2001, is eligible for entry. The aim is to encourage the growth of new tourism products in Cambodia, Lao PDR, Myanmar, upper Thailand, Yunnan and Vietnam. For information e-mail aaron@pata.th.com. Or tel: (66-2) 658-2000 ext. 125. Fax: (66-2) 658-2010.

GOOD BUYER-SELLER MIX FOR MEKONG FORUM
The upcoming Seventh Mekong Tourism Forum has so far attracted 12 buyers from 11 countries: Australia, Bangladesh, Belgium, France, Israel, Macedonia, Malaysia, Singapore, Spain, Thailand and the United States. The buyers will be able to meet 30 sellers from Cambodia, Lao PDR, Myanmar, Singapore and Thailand. The Forum's official two-hour buyer-seller session takes place Friday, April 5. For information e-mail aaron@pata.th.com. Or tel: (66-2) 658-2000 ext. 125. Fax: (66-2) 658-2010.

BELLAMY TO KEYNOTE 1ST PATA SUSTAINABLE TOURISM CONFERENCE
Professor David Bellamy, famed botanist, writer and broadcaster, will deliver the keynote address at the 1st PATA Sustainable Tourism Conference, October 23-26 in Banten, Western Java, Indonesia. His speech will be entitled "Tourism: The Way Ahead to Sustainability and Beyond." Among his main spheres of interest are the evolution of ecosystems, especially wetlands and coral reefs; marine pollution, human/environment interaction, conservation, sustainable development, ecotourism, business and the environment. The conference will feature case studies, a tabletop session of some of the region’s most unique sustainable projects, an off-site workshop for hands-on audit exercises, and pre- and post-event tours. Please visit www.pata.org to view the programme, hotel and airline details, destination information and to download registration forms. E-mail: pstc@pata.th.com. Fax: (66-2) 658-2013.

THINK TANK PROMOTES BEST PRACTICES
PATA has endorsed "Promoting Best Practices in Sustainable Travel & Tourism," a conference and think tank organised by Business Enterprises for Sustainable Travel (BEST) and the School of Travel Industry Management, University of Hawaii. The event will take place in Honolulu, Hawaii, April 9-13. The meeting is the second in a series of three think tanks aimed to develop sustainable tourism modules for incorporation into core curricular courses in tourism education and training. The event will commence with the Second Annual Ambassador L.W. "Bill" Lane Jr. Lecture on Sustainable Tourism. For more information or to register, visit www.sustainabletravel.org  

PATA LOGO AVAILABLE ONLINE
All PATA members in good standing are entitled, and encouraged, to use the PATA logo on letterhead, business cards, Web sites, brochures and other forms of collateral. Logos may be downloaded after logging into the members-only area of PATAnet (http://www.pata.org/frame.cfm?pageid=13). Or contact communications@pata.th.com for assistance.

PATA STRATEGIC INFORMATION CENTRE WORLDWATCH

* In the U.S. there is a rebound in business travel following an increase in leisure travel sparked by heavily discounted air fares, post Sept. 11. Nevertheless, customers on at least one major carrier in the U.S. now have to buy tickets much further in advance if they want discounts. At an airport in Eastern Tennessee, where users of the short-term car park face full searches of their vehicles before entering the terminal proper, the number of cars is returning to pre-Sept. 11 levels -- evidence that Americans are becoming used to the new order of air travel.

* Sony Ericsson has launched a new multi-media mobile smartphone equipped with colour screen, camera and an Internet connection. It comes with movie clips, games and music specially designed for the device. A colour screen is the key driver for the handset replacement market this year. Taking pictures with a phone and sending them to handsets of friends will soon be the norm.

* El Nino is coming back. According to ASEAN's meteorological centre, there are signs that a weak to moderate effect may be felt in the second half of 2002. This means drought for some and floods for others.

* Boeing has introduced a new flight-deck door system with explosive and ballistic resistance. The U.S. Federal Aviation Administration will soon require all international airlines to install such doors before flying into U.S. territory. All U.S. domestic airlines will be required to install the new doors by April 2003.

* It appears that the human birth rate may be on the decline sufficiently to warrant a re-examination of global population forecasts. Couples in developing countries are opting for smaller families.

MOEVENPICK HOTELS & RESORTS: POSITIVE RESULTS DESPITE THE CRISIS

The finalisation of the accounts for the 2001 financial year at Mövenpick
Hotels & Resorts (MH&R) has shown clearly that this international hotel
group only fell marginally short of its last year result, despite the
difficult situation in the tourism industry after the September 11th
terrorist attacks.

Although total sales including leased and management operations was below
last year's level at CHF 409.5 million (compared with CHF 455 million in
2000), in light of the circumstances profit at the EBIT level can be said to
have held up above expectations at CHF 14.1 million (2000: CHF 14.7
million). This amount excludes the operating profits of the hotel real
estate companies. It even proved possible to raise the EBIT margin on
consolidated sales of CHF 180,2 million, from 7.7 to 7.8 percent.

Occupancy rates in Europe came to 66.3 percent, and in the Group as a whole
to 62 percent, and it is satisfying to record that the average room rate
over the Group as a whole was maintained at last year's level. This is
attributable to a strict Yield Management policy which enabled the profit
situation to be managed more effectively. In Germany, for instance, REVPAR
(Revenue per available room) rose by 1.8 percentage points although the
market as a whole recorded a decline of 0.8 percentage points.

"As a flexible management team we were able to react directly to the tourism
crisis and establish a cost-saving plan, which resulted in lowering our
break-even points in many properties without compromising on our strict
quality standards" explains Jean Gabriel Pérès, President & CEO of Mövenpick
Hotels & Resorts. "This plan was introduced successfully all over the world
and made a decisive contribution to our good results. Moreover, we were less
affected than other firms who are more heavily committed to the American
market. Our most important markets are still Germany and Switzerland. There
were setbacks in Egypt and Jordan but prospects for 2002 are improving.
Bookings for Easter are picking up again".

Currency exchange-rates also affected revenue adversely. The soft Euro and
the weakening of the Egyptian Pound had an impact of CHF 19 million versus
last year's sales.

"Taking all the adverse circumstances of 2001 into account, Mövenpick Hotels
& Resorts can regard its performance as satisfactory", emphasises Bruno
Schöpfer, CEO Mövenpick Group.

MH&R's expansion policy was pursued further as planned in 2001. In addition
to signing a large number of contracts for hotels in key European cities,
the Mediterranean region, and the Middle East, several new hotels were also
opened with great success. One was the Group's first hotel on the Italian
market, the Mövenpick Hotel Central Park in Rome, and another was a
top-quality resort hotel, the Mövenpick Ulysse Palace & Thalasso on the
Tunisian island of Djerba. Further examples of additions to the MH&R
portfolio were a 5-star hotel in Tangiers (Morocco) and a 4-star business
hotel in Doha (Emirate of Qatar). Another 19 hotels and resorts are in the
development phase for the next few years.

Mövenpick Hotels & Resorts operates 42 hotels in 10 countries and focuses on
two hotel types. The business and conference hotel and the holiday resort,
catering to the respective needs of the guests. Business hotels are located
in city centres or at airports and offer an optimal infrastructure for the
business traveller. The resorts are situated in typical holiday
destinations. The hotel group is present in Germany, Switzerland, the
Netherlands, Italy, the Czech Republic, Jordan, Egypt, Morocco, Tunisia and
Qatar.

HIGH-SPEED NET ACCESS POPULAR WITH BUSINESS TRAVELERS

Mercury News - The engineers at Adobe Systems had a request for the company's travel coordinator: When we're on the road, try to put us in hotel rooms with fast Internet access.

High-speed Internet access is becoming a coveted convenience for business travelers, especially the tech-savvy crowd in Silicon Valley. Basic dial-up connections don't cut it for accessing graphics-rich e-mail attachments, or linking into the corporate network.

``Based on requests, largely from our engineering employee base, we have this year asked our preferred hotel partners if they have regular dial-up or high-speed Internet access,'' said Janice Coley, who manages travel at Adobe, the company that crafts software such as Photoshop and Acrobat. ``We publish this on our preferred hotel directory located on the Adobe Travelers guide. Most hotels still have regular dial-up access but have plans to upgrade to (high-speed) T1 in the next one or two years.''

Even though he's not an engineer, Mike Saviage, Adobe's senior director of investor relations, is already hooked: On a recent trip to New York, he used his hotel room's high-speed connection and virtual private network software to access data on Adobe's internal servers.

``I think it's one of those things where over time, to be competitive as a business-class hotel, you're going to have to have it,'' Saviage said.

The upgrade to offering high-speed access in every room isn't easy for hotels, especially in a flagging economy. Even in the heartland of high-tech it's slow going. Of 40 San Jose business-class hotels polled last week, just 10 offered high-speed access in rooms. Most of those -- seven -- were near the airport. Two, the Summerfield Suites and Crowne Plaza, even offered high-speed wireless access, a highly unusual perk.

Several business-class hotels said they would offer the service in just a few weeks or months.

According to the Accenture consulting firm, wiring a hotel room for high-speed access costs an average $400 per room. The average hotel has about 300 rooms, so that's a total cost of $120,000, the firm said.

That might not sound like much at first, but consider that the hospitality industry is in a slump. Also, Accenture said a large hotel chain recently found that when it offered free broadband service to guests, only about 11 percent of them used it.

``This is going to be something that is expected in three years' time,'' said Julian Sparkes, an Accenture managing partner for travel services. Sparkes said the more tech-savvy business traveler expects high-speed access now, but it will take a while before the bulk of the business community pressures hotels to take on the extra cost.

``I've seen it all over the map,'' Sparkes said. ``Most of the time it seems to be a surcharge. I think it's going to take a little bit more implementation and testing of business groups before hotels decide on a pricing model.''

Three emerging trends could increase the business traveler's interest in high-speed access. The first is the rollout of high-speed wireless networks in airports -- Accenture is helping with one such project for a domestic airport, and hopes to finish this year. As travelers get accustomed to checking e-mail and surfing the Web while waiting for their flight, they might come to expect it in the hotel.

The second is the increase in the number of graphics-rich attachments. As more business people try to swap PowerPoint slides, audio files and video clips, they will need faster connections to do it.

Third is the virtual private network, or VPN. The idea behind the VPN is that travelers or telecommuters can work from the road or home, accessing files and communicating with colleagues as if they were sitting at their work PC. VPNs are still an emerging technology -- they can be tough to configure and they don't always work over a hotel's network -- but several tech-savvy travelers love them. You can't do meaningful VPN work over a dial-up connection, because it takes too long to do everything. It can be like working on an old pre-Pentium machine.