HM (Hotel Management) Magazine Feb 2012 V.16.1

Vol 16. No.1 Bi-monthly February 2012P

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A U S T R A L I A – N E W Z E A L A N D – A S I A - P A C I F I C

INDUSTRYLEADERS

FORUMFEATURING 100 PAGES OF

EXCLUSIVE INTERVIEWS WITH THE LEADING HOTELIERS, SUPPLIERS AND TOURISM

LEADERS FROM ACROSS THE ASIA-PACIFIC REGION

THE 2012

THE BUSINESS OF ACCOMMODATION IN ASIA-PACIFIC

WYNDHAM RISINGHow Wyndham is expanding rapidly across Australia, New Zealand and the South Pacific

Barry Robinson, CEO and Managing Director of Wyndham Vacation

Resorts Asia Pacific, photographed exclusively for HM by Andrew Jarvie

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contents Bi-Monthly – February 2012

EXECUTIVE FEATURE28 Global LeadersInterviews with global leaders of hotel chains.

44 Tourism LeadersCommentary and interviews with Prime Ministers, Tourism Ministers, tourism boards and leading industry associations.

52 Leading SuppliersInterviews with more than a dozen of the leading suppliers in Asia-Pacific.

64 Australasian LeadersHM interviews more than 20 of the leading Hoteliers in Australasia.

92 Brand ManagementInterviews with four of the region’s leading brand management companies.

94 Aviation OutlookAn in-depth at how low-cost airlines are targeting Sydney.

REGULAR SECTIONS06 Editor’s LetterWelcome to the issue by Managing Editor James Wilkinson, plus credits.

08 Check-InIn-depth news from hotels across the globe, including Accor’s purchase of Mirvac’s hotel management business.

16 PropertyHotel openings, closings, sales, refurbishments and change of management.

20 Key NewsA special section in HM magazine presented by the Accommodation Association of Australia.

98 Buyer's GuideHot products for accommodation properties.

EXECUTIVE FEATURE28 The 2012 Industry Leaders ForumExclusive interviews with the leading Hoteliers and suppliers in Asia-Pacific about what to expect in 2012.

p28

We sell sleep

Sleepmaker Hospitality works with its partners to sell sleep! Sleepmakers commercial bedding products are durable, cost competitive and comfortable. We have

bedding products for all price points, all feels and all your needs. We appreciate you allowing us the opportunity to

compete for your business. We guarantee to give you and your customer a positive experience now and for the life of your

bedding and bedding products warranty. Yes we can provide you with all your commercial bedding needs, yes we can remove your old

beds and yes we can install your new beds. We can do it all, from the smallest one bedroom job to the largest hotel refurbishment or opening.

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Ralf Bruegger, General Manager

of The Observatory Hotel, Sydney

hotelmanagement.com.au 5

editorial

DISCLAIMERThis publication is published by The Intermedia Group Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication.Copyright © 2012 - The Intermedia Group Pty Ltd.

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It’s been an interesting start to 2012. Amid the eco-nomic uncertainty in Europe, hotels across Australia and New Zealand have reported solid numbers in a number of markets and at times when occupancy and rates would normally be slightly down.

Sporting events were a boon for Melbourne – espe-cially the Australian Open – while Sydney’s weekend figures impressed, as did Brisbane’s weeknights. Ho-tels across the ditch in New Zealand said the holiday season performed well, especially in Queenstown, while Fiji’s resorts had the usual stack of Kiwi and Aussie business despite flooding and gale-force winds.

Performance is a key theme of this year’s Indus-try Leaders Forum edition of HM, where once more we invited the leading hoteliers, suppliers, association heads and once again Prime Ministers, to give us their thoughts on the year ahead.

I’m proud to say this year’s Forum is again led by the forward-thinking ever-impressive Prime Minister of New Zealand, the Rt Hon. John Key, a man that governments globally should follow the lead of. Right from the outset of his election victory in 2008, Mr Key has been the leader he guaranteed New Zealand he would be. He pushed tourism up the list of govern-ment priorities and the impact has been felt right across the shakey isles. When you look back at the Helen Clark Labor government, it certainly was sur-prising that before Mr Key was elected, tourism wasn’t even a ministerial position, even though the govern-ment owns the national airline – Air New Zealand – along with Qualmark, the country’s tourism accredita-tion system and famously markets the nation so well though Tourism New Zealand.

For years, we’ve sat back in Australia and watched our Kiwi cousins do it so well, year after year. Now, through TQUAL, it’s Australia’s time to get the ac-creditation system right. With a strong push from Martin Ferguson, Australia’s Tourism Minister, the

system is certainly on the right track and with AAA Tourism’s Star Ratings overhaul now complete, the in-dustry is in a strong position to finally head in the right direction as a whole.

Next on the agenda is the issue of unification of the hotel industry’s bodies and associations, who are all absolutely pushing the right agenda, albeit in their own way. Starwood’s Regional chief Sean Hunt called for unification in a recent interview with HM and it will remain to be seen if does actually eventuate. Until then, however, both Richard Munro from the Accom-modation Association of Australia (AAA) and Rodger Powell from Tourism Accommodation Australia (TAA) should be congratulated over their hard work in recent months in raising major issues with state and federal governments on behalf of the industry.

Both associations supported our major events in 2011 – the Australasian Hotel Industry Conference and Exhibition (AHICE) and the HM Awards – and the HM team looks forward to working with them again on both events and much more in 2012. HM is abso-lutely committed to supporting the industry and as an independent publication, it is our desire to support those who commit themselves and their organisations to helping make the greater Australian, New Zealand and South Pacific at the top of the agenda for govern-ments across the region.

Yours in hospitality,

James WilkinsonManaging Editor

Forward thinking from the top

Vol 16. No.1 Bi-monthly February 2012

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INDUSTRYLEADERS


EXCLUSIVE INTERVIEWS WITH THE LEADING HOTELIERS, SUPPLIERS AND TOURISM

LEADERS FROM ACROSS THE ASIA-PACIFIC REGION

THE 2012


WYNDHAM RISINGHow Wyndham is expanding rapidly across Australia, New Zealand and the South Pacific


Resorts Asia Pacific, photographed exclusively for HM by Andrew Jarvie

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Starwood's sean hunt talks about the growth of sheraton in Australasia

In the biggest Australasian hotel move of the dec-ade, Accor has entered into contracts to acquire Mirvac Group’s hotel management business and a 21.9% stake in the company’s Mirvac Wholesale Hotel Fund for AUD$255 million.

The acquisition, once completed by June 30, 2012, will result in Accor re-branding at least 46 of the 48 properties, with two hotels in the Wholesale Fund cur-rently operating under Marriott branding, being Syd-ney Marriott and Courtyard by Marriott North Ryde.

Accor is jointly taking a stake in the Wholesale Fund with Singapore-based Ascendas’ – one of Asia-Pacific’s leading providers of business space solu-tions – and once the acquisition is completed, the companies will have a combined 49.2% ownership.

Mirvac’s properties – currently under the Quay West Suites and Resorts, Sea Temple, The Sebel Ho-tels, Resorts and Residences and Citigate brands – are expected to be reflagged under Accor’s upscale, upper-upscale and luxury banners, including Novo-tel, Grand Mercure, MGallery, Pullman and Sofitel.

Accor’s acquisition of Mirvac’s 6,101 rooms will take its portfolio in Australasia to 241 hotels (32,500

rooms) and the company’s Chief Operating Officer for Asia Pacific, Michael Issenberg says the move will strengthen Accor’s position in the region.

“This agreement is a major development for Ac-cor in Asia Pacific,” he says. “It enhances our posi-tion as the largest operator in the region and offers strong synergies with our existing business in Aus-tralia and New Zealand.

“Mirvac’s hotels have performed very solidly in the marketplace, but the world of travel is changing rapidly and Accor is well positioned to provide these hotels with the resources necessary to respond to the next phase of evolution in the hotel industry, as well as access to key emerging markets - particularly China and India.”

Mirvac’s Managing Director Nick Collishaw says the company was happy with the outcome of the sale, which came at a 15% premium to the current value of the assets.

“The sale outcome is in line with Mirvac’s strat-egy and it is a transforming event for the Hotel’s business as it becomes part of a globally recognised hospitality group,” he says.

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Accor’s Vice President for Australia, Si-mon McGrath, says the acquisition of the Mirvac portfolio will strengthen not just the company’s position in the region, but Accor’s offering of the upper-upscale and luxury product.

“Accor’s development policy is to con-centrate on building up networks in already mature markets and with Accor’s leadership position Australia and New Zealand, and with the very positive results achieved in recent years, the addition of the 48 Mirvac hotels will further strengthen and enhance Accor’s leadership position in the region,” he told HM.

“The Mirvac hotels will also help build our presence at the upper-end of the mar-ket. Many of their hotels have established excellent reputations in the top end of the market and these new additions will help us balance our established strength in the mid-market and economy sectors with an equally high profile in the upscale sectors.

“What Accor will bring to the Mirvac hotels is an international platform that pro-vides far greater scope and opportunities for what is largely a domestic network. Their hotels and brands are fairly well known do-mestically, but they have less recognition in international markets, particularly the rap-idly emerging markets of Asia, where Accor is a dominant force.

“We will be able to add significantly to their hotels in the areas of distribution, sales, marketing, loyalty, procurement, technical services and human resources.

“We have successfully integrated a num-ber of hotel groups into the Accor family over the past two decades, and the injec-tion of new blood has always benefited the group, so we look forward to welcoming the talent that comes from buying Mirvac’s ho-tel business.

“In fact, many of the executives and hotel employees who came with previous acqui-sitions are now in key positions throughout the Accor group,” he says.

COMPANIES SYDNEY

Acquisition to boost Accor

Quay West Resort and Spa, Bunker Bay

The sale to Accor and Ascendas does not include The Como in Melbourne’s South Yar-ra – a site that is expected to be re-developed – or Mirvac’s 50% investment in Australian Travelodge hotels. Mirvac is reportedly “as-sessing options” to offload the Travelodge investment, of which the remainder of the company is owned by Toga.

Accor’s global Chairman and Chief Ex-ecutive Officer, Denis Hennequin, says the Mirvac purchase is in line with the company’s development strategy, which includes 40,000 room openings per year in 2012 and 2013.

“This operation is a major success in a high growth market,” he says. “With our growth strategy which includes both organic growth and targeted acquisitions such as this one, enabled by our excellent financial situa-tion, I am confident in our capacity to reach our objectives.

“With an accelerated growth of our offer, stronger brands, unique operational know-how and a dynamic asset management pol-icy, Accor is today aligned with its ambition to become the global reference in the hotel industry,” he says.

Accor and Ascendas’ stake in the Mirvac Wholesale Hotel Fund will comprise seven hotels, including Citigate Central Sydney, Sydney Marriott Hotel, The Sebel Parramatta, The Sebel and Citigate King George Square Brisbane, The Sebel Cairns, The Sebel and Citigate Albert Park Melbourne, and the Courtyard by Marriott North Ryde.

Issenberg says the acquisition will not only add some award-winning, well performing hotels to the company’s portfolio, but a num-ber of the industry’s leading hotel executives and rising stars.

“One of the major benefits of the acquisi-tion will be to have access to Mirvac’s highly professional and skilled workforce,” he says.

“The injection of new ideas, fresh per-spectives and genuine talent has always been welcomed by Accor and we will provide similar opportunities for Mirvac employees to grow their careers within the region and further afield.”

The contracts between Accor and Mirvac are subject to a number of conditions and approvals, including Foreign Investment Re-view Board and New Zealand’s Overseas In-vestment Office.


A WYNDHAM PROMOTIONWYNDHAM NEWS

Wyndham Vacation Resorts Asia Pacific marked 2011 as a year of growth with a number of major announcements and acquisitions.

Despite recent uncertain, global and domestic market conditions, Wyndham made two major acquisitions in 2011 growing the number of vacation ownership resort properties in its portfolio to 23.

In addition, in collaboration with Wyndham Hotel Group the com-pany continued to grow its management agreements and franchise brands and notably announced the signing of two Ramada franchise agreements in New Zealand.

“Wyndham is looking to acquire more assets suitable as mixed-use properties for both vacation ownership and hotel use,” said Wyndham Vacation Resorts Asia Pacific CEO and Managing Direc-tor, Barry Robinson.

“Additionally we will continue to grow our franchise brands and management agreements in the South Pacific region.”

The highlights in 2011 were:May – Wyndham Corporate Centre: Wyndham Vacation Resorts

Asia Pacific relocated almost 600 employees to a new state-of-the-art office tower in Bundall on the Gold Coast of Queensland, the Asia Pa-cific headquarters for the global hospitality company Wyndham World-wide. The building was officially named Wyndham Corporate Centre by Gold Coast Mayor, Ron Clarke and marked the beginning of a new dec-ade for the company which began in 2001 with a handful of employees.

June – Wyndham Surfers Paradise: The one year anniversary of Wyndham Hotel Group’s expansion into the South Pacific region with the first Wyndham branded hotel in Australia opening in Surfers Para-dise. Wyndham Surfers Paradise is a 192 room mixed use property in a partnership between Wyndham Hotel Group and Wyndham Vacation Resorts Asia Pacific. 40 apartments have transferred into the vacation

A SOLID YEAR FOR

WYNDHAM

HOW WyNdhAM VACATION RESORTS ASIA PACIFIC’S LAST 12 MONTHS HAVE BEEN SOME OF THE BIGGEST IN THE COMPANY’S HISTORY.

Strategic acquisition: Wyndham Resort Torquay

ownership club, WorldMark South Pacific Club by Wyndham for use by its 44,000 vacation Owners.

July – New Zealand franchise agreements: Wyndham Hotel Group announced its entrance into New Zealand with the open-ing of two Ramada® hotels on the country’s North Island. The proper-ties include the beachfront Ramada Suites Paihia, consisting of 34 apartments and the 152 room Ramada Suites Nautilus Orewa out-side Auckland.

August – Ramada Resort Port Douglas: Wyndham Vacation Re-sorts Asia Pacific announced the purchase of the resort which includes the acquisition of 194 hotel rooms as well as management rights for the property. The hotel rooms will be transformed into 86 apartments and hotel rooms for WorldMark South Pacific Club by Wyndham.

September to November – Sales sites: Wyndham Vacation Re-sorts Asia Pacific opened four new sales sites in Perth, Auckland, Ne-pean and Marcoola to cater to the expanding interest in vacation own-ership across Australia and the South Pacific region.

October – Torquay: Wyndham Vacation Resorts Asia Pacific an-nounced the purchase of 57 units and the management rights for Wynd-ham Resort Torquay. It is a mixed-use property and the first Wyndham branded resort in Victoria. The 57 units will be reconfigured into 42 apart-ments for use by Owners in the WorldMark South Pacific Club with the remaining 149 rooms in the resort part of the management agreement.

November – Denarau Island Fiji: Fijian Prime Minister, Frank Bainimarama officiated at a groundbreaking and land blessing cere-mony to mark the announcement by Wyndham Vacation Resorts Asia Pacific of the construction of Stage 3 of WorldMark Resort Denarau Island. The development and extensive renovation, including the ad-dition of 63 new apartments and villas is one of the largest tourism developments currently being undertaken in Fiji.


Adelaide has emerged as the big winner in Singapore Airlines’ new northern summer operating schedule, gaining three additional flights per week, taking the new total to ten from March 25 to October 27, 2012.

Brisbane and Perth will also receive new flights, with the Queensland and West Aus-tralian capitals set to be served three-times daily each over the same period.

The announcement has been welcomed by peak body, the Accommodation Associa-tion of Australia.

“This is great news for Brisbane, Perth and especially Adelaide,” the Accommodation Association’s CEO, Richard Munro, told HM.

“The Association welcomes the news of the increased capacity and this will give ho-tels a shot in the arm and more confidence going into 2012.”

Meanwhile, South Australian tourism massively outstripped the nation with a 7.4%

rise in domestic visitor expenditure during 2011, compared to zero growth nationally.

Visitor numbers to South Australia also rose 6.1% and topped the nation with an in-crease of 7.4% per cent in visitor nights, ac-cording to new National Visitor Survey statis-tics released in December.

“We’re bucking the national trend dur-ing a difficult time for Australian tourism, and these figures are especially important for our regional tourism operators, who rely so heavily on the domestic tourists who make up 93% of our State’s overnight visitors,” said South Australia’s Minister for Tourism, Gail Gago.

The Minister said she expects the growth to continue as the Government invests in its ‘Best Backyard’ campaign to encourage South Australians to explore their own State, and prepares to launch a new multi-million dollar interstate campaign in early 2012.



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TOURISM ADELAIDE

Adelaide’s tourism boost

PEOPLE GOLD COAST

Mantra Group CEO Bob East has been elected onto Gold Coast Tourism’s Board of Directors. As the largest accommodation provider on the Gold Coast, East is well positioned to provide valuable direction as the Gold Coast gears up for the much anticipated 2018 Commonwealth Games. “I want to show Australia and the world how conducive the Gold Coast is for hosting international scale events with our combined accommodation capacity, facilities, attractions, accessibility and natural resources,” he said.

In a boost to inbound tourism, Adelaide is receiving more Singapore Airlines flights

Mantra Group's Bob East


A RESORT INTERIORS INTERNATIONAL PROMOTION

DESIGN & BUILD

Mint Resorts and Apartments have complemented their port-folio of Australian east coast properties with the recent ac-quisition of Rhapsody in Melbourne. Boasting an enviable

address at 568 St. Kilda Road, this exciting new property is the sixth in the Mint Resort and Apartments portfolio and their first in the Melbourne market.

Actively seeking to expand their presence in the major Australian capital cities Mint Resorts and Apartments saw the opportunity to work with renowned property developer Ubertas, and the dynamic architec-tural design of Fender Katsikidis as the perfect launch platform to estab-lish a new standard in corporate accommodation in the St. Kilda precinct.

The 145 room apartment hotel provided an interesting challenge to the Interior Designer, Trudy Tozer whose work has become synonymous with the relaxed, modern style and feel of Mint’s 4- and 4.5-star proper-ties. Working with 11 different room configurations, a building designed for low carbon emissions, water and energy conservation and a neutral palette provided by the developer, Tozer set out to create something that was truly memorable. Recalling her recent trip to New York where themed hotels were becoming very popular, this emerging trend along with the Rhapsody name provided the perfect catalyst for Tozer's design tender. Detailing the design and style elements that would deliver a mu-sic and dance theme utilising a blend of ultra modern finishes with the more traditional design concepts which are currently popular in Europe the design tender was provided to three interior design companies.

The successful tender winner was Resort Interiors International who was awarded the contract based on their ability to provide a full FF&E within a tight timeframe and the all important mock up display apart-ment. Resort Interiors International’s FF&E included design, procure-ment, manufacturing, delivery and installation. The initial task for the design department at Resort Interiors was to get a proper client brief. This is where the vision started. It is important to understand the meaning of Rhapsody; “an enthusiastic instrumental composition of indefinite form”. Resort Interiors needed to ensure that guests would feel a sense of luxury and an overall experience like no other. With a total of 145 apartments on 5 levels, comprising of 20 one bed room apartments and 125 studio apart-ments, Resort Interiors were excited to be apart of this project.

The interior ceilings to the apartments have a concrete slab finish which Resort Interiors had to work with and select furniture/finishes

that were going to soften the rooms and create a unique hotel feel for guests. The main colour palette consists of deep blue, silver, black, white and ruby red as an accent feature to complement the blue. Re-sort Interiors materials such as velvets, polyesters and vinyl’s soften the space and worked well with the concrete slab finish. Finishes like glass, polished chrome and 2pac were introduced in the manufacture of the furniture to create a modern contemporary feel.

Once the furniture style selections were approved by Mint, Resort Interiors worked through the different apartment type layouts and worked out sizes of all items required to ensure the space planning worked efficiently. In order for this to be accurate, Resort Interiors met with Mint on site to ensure the final inventories would be correct. Re-sort Interiors not only focused on the design and supply of custom made items such as upholstery, bedding, joinery and lighting, but also organised the window treatments, and packages for the linen, kitchen, cleaning, dining and electrical.

Throughout the manufacturing process, quality control of all prod-ucts took place on an ongoing basis to ensure all products were of a high commercial quality. Once the containers arrived into Melbourne port, they were then delivered to site where the unpacking and place-ment began. Each item on the final inventory was placed in every apartment as a turnkey operation.

The final product fulfilled the initial brief and the overall experience of this project was a positive one. Resort Interiors were privileged to have worked on this exciting project.

Having only opened in September 2011, Mint Rhapsody Melbourne is already receiving excellent feedback from corporate clients conduct-ing property inspections and much of this is due to Resort Interiors and their ability to fulfill the design brief. The red carpet entry and the dra-matic seven metre, dance-themed, art piece in the foyer sets the tone for a unique accommodation experience which is further reinforced by the high quality of fixtures and fittings throughout. Each studio one and two bedroom apartment has its own dedicated work station, a large balcony and self contained kitchenette which makes it perfect for the corporate traveller who wants short or longer term stays.

Mint Resorts and Apartments are delighted to have commissioned Resort Interiors for this landmark project and thank them for their ex-cellent work.

INTERIOR STYLE HOW RESORT INTERIORS INTERNATIONAL

WORkED WITH MINT RESORTS AND APARTMENTS ON THEIR NEW PROPERTY, RHAPSODY IN MELBOURNE.


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Esteemed hotelier J.W. ‘Bill’ Marriott, Jr has stepped down as the CEO of Marriott Inter-national, handing the reins to Arne Sorenson who will become only the third CEO in the company’s history.

“As we approach the 85th birthday of our company in 2012 and I proudly celebrate my 60th year of service, I decided to recommend to the board that Arne Sorenson take over the CEO responsibilities,” Bill Marriott said.

Effective March 31, 2012, Mr Marriott will remain Chairman of the company and take on the additional title of Executive Chairman and chairman of the board, the same time Sorenson – currently President and COO – takes over as CEO.

“I have been so fortunate to have worked with some of the most talented people in the world over the past six decades,” Mr Marriott said. “It’s amazing to me what we have ac-complished over the years together, from a small root beer stand in Washington, D.C. to a global lodging powerhouse with operations in more than 70 countries.

“Looking forward, one of my most impor-tant responsibilities is to work with our board of directors to ensure that we are best posi-tioned to succeed in the future.

“As executive chairman, in addition to my ongoing role as chairman of the board, I will continue to share my experience with our senior management team as we pursue our paths of growth and face the cyclical events I have confronted so many times in my career.

“My energies will also be directed at con-tinuing to reinforce the timeless core values that have been the bedrock of our success and to being a company ambassador as we build opportunity around the world.

“To achieve that growth, the right leader-ship is critical. That’s why I am enormously pleased that Arne will become CEO. I can say that there is no one more deserving or capa-ble of assuming this role at such an important point in our company’s history.

“Arne knows the business, lives our core values, and has earned the respect and ad-miration of all of our company’s major stake-holders. As Arne takes over the day-to-day reins of the company, he does so with my utmost confidence.

“Having personally recruited Arne to Mar-riott in 1996, I know that his success is related not only to his extraordinary talent, but is also due to his commitment to hard work, team play, and drive for results.

“His path through our company included roles as chief financial officer, later adding oversight of European operations, before be-ing appointed in 2009 as president and chief operating officer.

“As his mentor and friend, I could not be more pleased, for him or for our company,” Mr Marriott said.

Sorenson said he was looking forward to the new role and praised Mr Marriott’s efforts at the helm of the global chain.

“I am grateful to Bill Marriott and the board for their confidence, and I am tremendously optimistic about the future of our company, which continues to benefit from Mr. Marri-ott’s wise, visionary and steady leadership,” he said. “With deeply embedded core values that have enabled us to succeed for 85 years, I am looking forward to an exciting road ahead for Marriott International.”

Replacing Sorenson in the COO role is Marriott’s current Group President, Rob-ert McCarthy.

PEOPLE WASHINGTON DC

Bill Marriott steps down after 60 years

Stepping down: J.W. ‘Bill’ Marriott, Jr

New CEO Arne Sorenson


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AIRLINES DUBAI

Emirates has announced its Dubai-Melbourne-Auckland route will be upgraded to a daily Airbus A380 service from October 2012, adding an extra 50,000 seats a year in a significant boost to tourism.“We are looking forward to bringing a state-of-the-art Emirates A380 to Melbourne, offering Victorian travellers the chance to experience this revolutionary aircraft and the best service in the sky,” said Emirates’ Vice President for Australasia, Barry Brown.

Club Med has closed its resort on Lindeman Island until a buyer is found to whom it can sell the property in the Whitsunday Islands.

In line with Club Med’s international strategy to move upmarket and driven by the changing expectations of its guests since 2005, the company has surged upscale to reach out and retain their valued clientele and to attract new clientele.

Club Med has made the decision to move on from Lindeman Island, but will continue to actively search for a new Australian resort loca-tion that will mirror the new global standards.

The aim is for Club Med globally to have over 65% of their resorts worldwide in the upscale 4- to 5-Trident category.

Club Med’s number one priority will be assisting their employees in every way pos-sible for future employment by assisting staff

to find employment on neighbouring Whit-sunday Islands.

According to the company, this plan recog-nises that their island expertise is invaluable.

All GOs (Club Med’s international staff members) will be relocated to other resorts

around the world, as per the normal Club Med six monthly rotational operations.

“It was an extremely difficult decision for Club Med to make, as the resort is a firm fa-vourite with our Australian and New Zealand guests,” said Club Med Australia and New Zealand General Manager Quentin Briard.

“But our on-going research shows that more and more, our guests want our new premium all-inclusive product, and Linde-man’s 3-Trident status (the only one in Asia Pacific) was not in that category. So in order to meet our customer’s expectations, we have to now seek a new resort in Australia.

“Club Med would like to take this oppor-tunity to express its gratitude to the loyalty and continuous support from Australian and New Zealand customers and will continue to deliver best class holiday experience,” he said.

Accor has announced that 20 of its hotels in Australia have achieved Chinese Optimum Service Standards to enable to them to bet-ter cater for the growing inbound market from China.

Accor has been the first hotel group in Australia to introduce these standards, which will enable accredited hotels to meet the ex-pectations of Chinese travellers with the in-clusion of Chinese dishes on menus, Chinese newspapers and television channels, Chinese language welcome kits, Chinese adaptors and more to make guests from China feel at home.

An integral component of the Optimum Service Standards is special training for Ac-cor’s staff in cultural differences that will as-sist them to more respectfully serve Chinese

guests. Accor has also introduced Indian Optimum Service Standards for visitors from that country.

In 2011, Accor saw an 18.3% increase on Chinese guests and this year is expecting even

higher numbers, especially with the dramatic increase in flights from China thanks to the growth of flights to Australia by airlines such as China Southern, Air Asia, Jetstar, Scoot and others.

“We need to show that we not only want the Chinese market but that we are pulling out all stops to provide them the best possible service when they get here,” said Accor Vice President Australia, Simon McGrath.

“Chinese visitors are increasingly sophis-ticated and they have high expectations in terms of service,” he said. “Accor has intro-duced specific training that will ensure our staff are attuned to the sensitivities and pref-erences of our Chinese guests so that they ex-perience Australia in the best way possible.”

PROPERTIES WHITSUNDAYS

Club Med closes Lindeman Island property

OPERATIONS SYDNEY

Accor implements Chinese Service Standards

Set to close: Club Med Lindeman Island

Melbourne is being added to Emirates’ growing list of A380 destinations

Pullman Sydney Olympic Park


Aloft brand surpasses milestone 50th openingThe opening of Aloft Bangkok – Sukhumvit 11, Aloft New York Brooklyn, Aloft Zhengzhou Shangjie and Aloft Haiyang in China and of Aloft Coimbatore Singanallur in India marks a major milestone, bringing us to 50+ hotels around the world!

Aloft is the sizzling “style-at-a-steal” brand that rocked the hotel industry when it launched in 2008. Designed to appeal to the digital generation, Aloft represents modern, vibrant design at an affordable price point.

Join Starwood’s growth in the Pacific today. Contact [email protected] to learn how you can own, develop or invest in the Aloft phenomenon.

starwoodhotels.com/development

©2011 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Four Points, Element, Aloft and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affiliates.

ProPerty

Hip design, the latest in-room technology and personalised service will be the starring elements of the Emporium Hotels Group’s new 180-room Southpoint, Brisbane hotel, which is set to start construction this month.

Speaking exclusively to HM, Emporium Hotels Group’s General Manager, Peter Sa-voff said the eagerly-awaited second accom-modation property from the Anthony John Group might be twice the size of the original Fortitude Valley hotel, but that doesn’t mean it will simply be bigger and better.

“From the outset, it is the intention of the owners that no two Emporium Hotels shall be the same,” he said. “Rather, the Group

will become known for is eclectic interior de-sign concepts, presented in a cocoon of luxury that will become the brand’s signature.

“Most importantly, if we can emulate the service culture that has made our first Empo-rium Hotel so highly regarded, then ongoing success is assured,” he said.

The project was given the green light to proceed in late December after anchor com-mercial tenant Suncorp agreed to take a large portion of office space on the Grey Street, South Bank site.

“We are now ready to expand and grow the Emporium brand and the recent an-nouncement of the Anthony John Group’s

Southpoint Project now confirms our next luxury hotel as part of Brisbane’s latest, multi-faceted property development,” Savoff said.

“The Emporium Hotel at Southpoint will be a most welcome addition to the undersup-plied Brisbane hotel scene.

“We are confident that hotel trading in this region will remain strong and as Bris-bane’s South Bank has developed into one of Australia’s leading business, cultural and lei-sure precincts, the new hotel will be perfectly positioned to service the anticipated increase in demand for accommodation,” he said.

While the Emporium Hotels Group is be-ing tight-lipped about the exact design and room details, Savoff said it would be a “knock out” from a design perspective.

“With approximately 180 oversize guest suites, the Emporium at Southpoint will be nearly twice as large as our first property in Fortitude Valley.

“The concept is definitely to be another design hotel, featuring unique interiors and the latest in-room technology,” he said. “From the moment guests step into the lob-by they will feel a sense of ‘arrival’ and then continue this sensation while utilizing all the exciting venues throughout the hotel.

“The new hotel complex will include state-of-the-art conference facilities and a mas-sive roof top pool and recreation deck with incredible views over the South Bank Park-lands, Brisbane River and the CBD skyline.

“A day spa and fully equipped gym will also be available for guests, as well as a choice of several themed restaurants and bars,” Sa-voff said.

The new Emporium Hotel will join Mantra and Rydges in the evolving South Bank pre-cinct – one that continues to evolve with the addition of news bars and restaurants includ-ing Stokehouse and Popolo on the waterfront.

DEVELOPMENT BRISBANE

Emporium’s new Brisbane South Bank hotel revealed WORdS JAMES WILKINSON

InterContinental Hotels Group (IHG) has confirmed that it will continue to man-age Burswood’s two hotels – InterConti-nental Perth Burswood and Holiday Inn Perth Burswood – despite the announce-ment that the casino will be re-branded to Crown Perth from the end of 2012.

Crown Limited’s Executive Chairman James Packer announced on Wednesday that Burswood Entertainment Complex would change its name to Crown Perth to create more appeal for the domestic and intra-Asia Pacific markets.

A spokesperson for IHG told HM in late December , 2011, the two properties would not become Crown-branded hotels.

The announcement (by Crown Lim-ited) has no impact of the management of the two hotels,” he said.

In a statement, Crown Limited said it wanted to capitalise on the fast-growing outbound Asian markets.

“This change will allow Burswood to utilise the internationally recognised Crown brand in order to increase the num-ber of international and interstate visitors to Perth especially from the strategically important China market,” Crown Lim-ited said.

“This is a very exciting development for Burswood as it strives to more effectively compete against the other integrated re-sorts in the Asian region.

“The rebranding of Burswood will be underpinned by the completion in 2012 of the AUD$750 million capital investment program in upgrading and expanding the complex,” the company said.

BRANDING PERTH

IHG branding to stay on Burswood hotelsBranding to stay: Holiday Inn Perth Burswood

Set for construction: an artists'impression of the newEmporium Hotel at South Bank


ProPerty

Leading Australian-based boutique hotel chain 8Hotels has added Thredbo’s 36-room Denman Hotel in the New South Wales Snowy Mountains to its fast-grow-ing collection of properties.

The Denman Hotel’s owner-operator, Ed Denny, said following the agreement with 8Hotels, which commenced on De-cember 1, he was looking forward to tak-ing a step back from running the boutique property which is well known for its res-taurant as much as its stylish rooms.

“We’re excited to be partnering with 8Hotels,” he said. “They have proven themselves to be a successful hotel op-erator and I’m looking forward to working

with them and discovering the true poten-tial of The Denman Hotel.”

8Hotels CEO Paul Fischmann said The Denman Hotel signing was another strate-

gic partnership for the Sydney-based group.“The Denman has always enjoyed

strong occupancies throughout the ski sea-son,” Fischmann said.

“But we believe there is a great op-portunity to drive bookings throughout the off-season, using a range of initiatives including special events such as writers-in-residence camps.

“Likewise, we believe the Denman Hotel, makes a welcome addition to the 8Hotels Collection, which now includes 17 properties, including other leisure of-ferings such as the Paris8 Apartments, Hepburn at Hepburn and Chandra Luxury Villas in Bali,” he said.

MANAGEMENT THREDBO

The Denman joins the 8Hotels collection

Now with 8Hotels: The Denman

Fiji is set to get a AUD$290 million inte-grated resort – featuring a casino under the first ever gaming licence to be issued in the country – on Denarau Island after US-based developer One Hundred Sands Limited was given the green light for the project from the Fijian Government.

Groundbreaking on the project is expect-ed to commence in March 2012 and stage one of the project will include a 190-room hotel and three restaurants, while the second phase will include further accommodation, a 1500-seat convention centre and a casino with 500 slot machines and 54 gaming tables.

Fiji’s Prime Minister, Frank Bainimarama, said the project would create 800 jobs for locals and was a development of national significance.

“It is important with all new investment projects – both internal and international – that we protect the rights and interests of Fijians, and provide for the prosperity of our nation,” Bainimarama said.

“[This project] provides a malleable fusion between the Western ideals of casino gaming with the strong cultural virtues of tribal and community life. This fusion is what we seek... considering our own national pride in, and respect for the value of the unique, yet united cultures present among all Fijians,” he said.

Completion is expected in 2013 and the new development will join internationally-branded hotels by Accor, Carlson, Hilton, Starwood and Wyndham on Denarau Island.

Starwood’s first Aloft hotel in South East Asia has celebrated its official debut in Bangkok, Thailand, with a glittering opening party be-ing attended by dignitaries, media and com-pany executives.

The 296-room Aloft Bangkok - Sukhum-vit 11is considered to be one of Starwood’s benchmark Aloft hotels in the world and of-fers all of the hallmarks the W-inspired brand is becoming well-known for, including loft-style nine-foot ceilings, free WiFi, signature Aloft beds, oversized showerheads, plug-and-play connectivity stations and 42-inch LCD high definition televisions.

“We’re excited to introduce the Aloft ex-perience to sophisticated travellers coming to Bangkok,” says Australian expatriate Gen-eral Manager of Aloft Bangkok Sukhumvit 11, Brendan Daly.

“The Aloft concept is a perfect fit for Bang-

kok’s Sukhumvit district - (because) it’s fresh, stylish, urban and tech-forward.

“We are providing the perfect space for travellers to meet and connect on their adven-tures,” he says.

Aloft Bangkok - Sukhumvit 11 also fea-tures a bar and lounge, café, full-service gymnasium, an outdoor swimming pool and 256-square-metres of meetings space.

The debut of Aloft in Bangkok underscores the strength of the Starwood network and the power of the Aloft brand,” says, Starwood’s Senior Vice President of Speciality Select Brands, Brian McGuinness.

“Aloft’s emphasis on high design com-bined with its tech-savvy features and social atmosphere translates globally and is attract-ing a growing group of loyal travellers. Aloft’s international expansion so early in the brand’s life cycle is unprecedented.”

DEVELOPMENTS NADI

Fiji to get $290 million casino resort

OPENINGS BANGkOk

Aloft opens in Bangkok


+61 2 9660 8299 paulkellydesign.com.auContact

Sokyo.At The Star, Paul Kelly Design has createdone of the world’s most evocative dining experiences.Welcome to Sokyo — Sydney’s premier destination.

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Trevor and Joanne Kratzmann, Scone Motor InnScone Motor Inn is a multi-award winner at both the state and national level. The property is a finalist at the 2011 Australian Tourism Awards in the category of Standard Accommodation.

“Scone Motor Inn has been involved in vari-ous accommodation awards and tourism since 2009. The Tourism awards seemed to be a good way of gaining additional publicity and expo-sure for our property,” the Kratzmanns say.

“Not in our wildest dreams did we envisage just how successful the awards process would be for us.

“The accommodation and tourism awards are now one of the most important marketing activities for our property. We spend a com-bined total of about 200 hours a year plan-ning and preparing submissions, updating our business plan and other policies and proce-dures. The awards submission process helps us to identify and monitor our existing and emerging target markets. The media exposure we have been able to generate for not only our property, but our local tourism industry has been invaluable.

“Our success in regional, state and national awards has also been measurable in financial terms and we can directly attribute over 100 bookings to our success at the 2010 Australian Tourism Awards. Although most guests do not have a direct awareness or understanding of the awards, it gives them reassurance and confi-dence in the quality of our product and services.

“We feel the awards have a legitimate place in recognising excellence in the accommoda-tion and tourism industry, provided you keep it all in perspective.”

Ward Tilbrook, SATICWard Tilbrook is Chief Executive of the South Australian Tourism Industry Council (SATIC) and manages the annual South Australian Tourism Awards.

“The power of an award-winning business in the eyes of the consumer should not be un-derestimated. Travellers look for award-win-ning tourism experiences that stand out from the crowd and seeing such an achievement can influence a person’s purchasing behaviour,” he says. “Displaying an award-winning logo alongside a business’ product offering provides legitimacy to its claims and instils trust in the

buyer by having this third party rec-ommendation.

“The tourism awards are a whole of business award, which gives the consumer confidence that the busi-ness that they are booking with maintains the highest levels of cus-tomer service and professionalism and is committed to continual in-novation and raising the benchmark for best practice.

“Many entrants discover that one of the most rewarding aspects of entering is the process of sitting down, often as a team, and review-ing marketing and business objec-tives and analysing their success on a regular basis, which leads to future improvements and greater busi-ness focus.

“For winners the benefits are numerous, from free publicity and great opportunities to increase the profile of a business to motivating and rewarding staff.

“For the business owner, I see the awards process as a journey which gives a business structure; opportunity for growth; and recog-nition but ultimately, I believe that the tourism awards help to provide a better South Australian visitor ex-perience.”

Karina Groth, Tourism Business SolutionsKarina Groth is a specialist busi-ness consultant with extensive experience in judging a variety of regional, state and national tourism award programs.

“Creating measurable benchmarks for tour-ism and accommodation operators is one of the most important roles award programs play,” she says. “Credible award programs include a rigorous analysis of all aspects of business plan-ning including marketing, customer service, in-novation, product development, sustainability and general business planning tools.

“A by-product of success within industry award programs is increased buying consid-eration by consumers of award winning prod-ucts. The accommodation sector operates in

a crowded marketplace and credible industry award programs are an effective method in cre-ating a distinctive difference. In some instances state and national television and press coverage can significantly increase awareness and result-ant turnover for individual businesses.

“Award submissions are important not only for business planning and reflecting on the successes of the previous year, but also ac-knowledging the contribution staff make to a business each year. The gala dinners are an im-

portant way to thank staff and assist in building morale and pride in the organisation.

“Successful award programs continue to raise the levels of pro-fessionalism within our industry by not only encouraging operators to be more analytical whilst evaluating their business but also by creating pride in our industry as a result of these peer recognition programs.”

Richard Munro, Accommodation Association of AustraliaRichard Munro is Chief Executive Officer of the Accommodation As-sociation. Richard’s considerable experience includes former Chair-man of the Accommodation Divi-sion of the NSW AHA and Gen-eral Manager of Star City Hotel and Apartments.

“Awards events are sometimes a contentious topic for business owners and managers, grappling with the time to actually write the submission and attend the func-tion. From my perspective, awards provide a business opportunity to step back and truly evaluate their business or their employees’ perfor-mance,” he says.

“Taking the time to write a sub-mission about your employees is time well invested as it is the ulti-mate recognition that you endorse the performance of your team. It is also a benchmarking exercise to as-certain best practice from both a con-sumer and a business perspective.

“I would encourage members to invest the time in getting involved in

awards programs because they provide broader benefits for your business. Award wins un-doubtedly have a positive effect on your employ-ees and instil a sense of pride in your workplace.

“One area that can be improved in our in-dustry would actually be less award nights, that last for hours with the MC persevering through constant chatter, and more succinct events that are focused on quality as opposed to quantity. I would like to see more events combined to ensure that the awards retain the wow factor they deserve.”

OPERATIONS

THE BUSINESS OFWINNING AWARDSWith the 2011 Australian Tourism Awards taking place in Cairns next month, HM takes the opportunity to gauge industry opinion on the value of awards programs to operators and the industry as a whole.

Richard Munro

Trevor and Joanne Kratzmann

Ward Tilbrook

Karina Groth


PRESENTED BY

Andrew Daff took on the role of Manager at Lane Cove River Tourist Park (LCRTP) in 2005. Since then the park has won three National Tourism Awards, nine NSW Tour-ism Awards, four Greater Sydney Regional Tourism Awards, eight HMAA/AAA Awards (caravan park and sustainability), five Aus-tralian Business Awards, the United Nations World Environment Day Award and was a finalist in the Tourism for Tomorrow Interna-tional Award.

LCRTP is a business unit of the NSW Of-fice of Environment and Heritage and located just 10km from Sydney CBD. As Manager, Andrew has overseen six consecutive years of consolidated 11.5% growth in both visitor numbers and recurrent profits.

HM spoke to Andrew about the park’s success to date and the challenges of running a sustainable property.

LCRTP has won numerous awards for sus-tainability – is sustainability your main point of difference in the market? If so, how do you compete with other well rec-ognised sustainable properties? Sustainability is a core concept of the NSW State Plan and the Office of Environment and Heritage Corporate Plan, so it was a natural fit into our business planning and has be-come our primary unique selling proposi-tion. I think that consumers are very savvy about supporting sustainable business and that support is evidenced in our sales revenue and guest numbers. In terms of competition, I would love to see the day where sustain-ability is main stream, I think that day is fast approaching as so many operators start to embrace a sustainable philosophy.

Sustainability was once considered to be an aspect of the business that appealed to niche markets – in your opinion, how much has that changed in the last 10 years?I think the awareness campaigns about the po-tential impacts on the industry brought about by potential changes to our natural environ-ment has had a substantial impact on consum-ers. Business has always relied on supplying to consumers what they demand and we are starting to see consumers seek out businesses that are operating in a sustainable manner. This is probably more evident in the European market than the domestic market at present, but we are noting a lot more of our domestic

guests are citing our sustainability initiatives as a reason for supporting our business.

You’ve done such an exceptional job of setting an example in sustainable tourism – do your guests ever challenge practices at the park in terms of contradicting your ecological philosophy?We have noted this aspect as a potential risk to the business and adopted strategies that allow us to confidently stand by our achieve-ments. These include a very rigorous third party audit regime through EC3 Global and Eco Tourism Australia. The EC3 Global audits are recognised as the most strenuous sustain-ability audits in the world and often take up to 2 days on site. We also realise that we are not here to change or challenge individual per-ceptions. Our core business is still accommo-dation and the provision of a fabulous guest service, we just want to ensure that that core business is around for generations to come.

In your opinion, what are the top five most beneficial sustainable initiatives that an ac-commodation business can adopt?The most important is the plan. A sustain-ability plan is the most important initiative that a business can take. The plan will start you thinking about the what, how, and why. Secondly, a cultural initiative is important to include in any sustainability action plan. We have so much to learn from the traditional owners of this amazing country. You can nev-er lose by looking then at the big 4 – Energy, water, waste, and people (staff, guests and stakeholders), and finally (and probably most importantly) ensure financial sustainability – if you can’t fund what you are doing then it is not really sustainable at all.To read an extended interview with Andrew, visit www.aaoa.com.au

One of the major concerns of the Western Australian tourism industry is Perth’s critical shortage of hotel rooms. The shortage is due to solid growth in business travel on a small base of just over 5,800 rooms, to the point that Perth is overtaking Sydney in occupancy and average room rates.

The lack of adequate room stock in our capital city gateway has re-sulted in turn away demand, a cap on future business events growth and the loss of leisure markets in regional WA.

Tourism Council WA has been very vocal over the past year in lobbying the State Government to ensure that tourism, including the building of new hotels, is part of the urban renewal and redevelopment of Perth. Hotel development is es-sential infrastructure for the WA state economy and requires active planning and policy measures to increase short stay accommodation.

Recently the Western Australian Government has implemented a new hotel policy that will encourage and facilitate the development of hotels within WA. The policy aims to encourage investment to the hotel sector through a number of Cabinet indorsed incentives such as the targeted release of Crown Land for hotel development, floor space ration incentives and the potential provision of supporting infrastruc-ture. We see this has a great start.

Perth is currently undergoing a number of redevelopments such as the Perth Link, a new Stadium and the Waterfront development which are key opportunities for the Gov-ernment to win new investment in tourism attractions and hotels and I think that a few new hotels in Perth will be perfect for business and lei-sure travellers alike.

TOURISM LEAdERS

Perth desperate for rooms

Western Australia’s Tourism Council CEO, Evan Hall, talks about some of the critical issues facing the state’s tourism industry.

Sustainable: Lane Cove River Tourist Park

SUSTAINABILITY

Sustainable tourism firmly in the spotlight this yearLane Cove River Tourist Park’s success with sustainable tourism is on the agenda this month.


keynews

Armed robbery is one of the most serious and potentially dangerous crimes committed. Generally those committing these crimes do so because they believe that their profit will be worth the risk and have little concern for their victims. Therefore safety of your fellow team members is always the most important consideration when reacting to an armed robbery and by being prepared, accommoda-tion providers may reduce the risk and impact on their team.

The majority of robbers are males on the lookout for premises that are either isolated or easy to enter and leave, and where the cashier will offer the least resistance. Lone, junior cashiers are particularly at risk. The perfect target is a solitary outlet located on either a main road, open late at night and staffed by a single worker. Although a hold up can take less than 90 seconds, the offender will usually take the time to check out the exterior and interior of the premises prior to the crime. Accommodation providers should be aware of people coming into the premises and lingering before approaching reception.

All accommodation providers should train

staff in handling these situ-ations and consider a train-ing program designed spe-cifically for their property, however, generally the fol-lowing guidelines may as-sist in reducing the risk to your team members:• Follow any internally

developed security poli-cies and procedures;

• Stand still and identify the situation;

• Obey the robber’s in-structions;

• Remain calm and quiet;• Observe safely, if you can;• Stay out of the danger area; • Stay where you are, do not chase;• When safe call the police;• Seal off the hold-up area;• Ask witnesses to remain; and• Complete an incident report.Managers need to also consider the mental health of their team and guests. There may be a need for counselling.

The Accommodation Association provides a factsheet on security on the Association website at www.aaoa.com.auDisclaimer: Please note that the above does not constitute a full or legal analysis of the subject. Qualified legal and security representatives may provide a fuller and clearer perspective and advice. Neither the Accommodation Association of Australia nor Michael Georgeson accepts any liability for reliance on this content.

The Accommodation Association regularly receives requests for comments on scams and fraud. Whilst many are well known these days, there are still some individuals who are unfortunate enough to get caught out via such ploys as the “travelling” priests which has been popular for the past year – there must be many thousands of them roaming Australia by now!

Operators should be “alert but not alarmed” and be cautious when dealing with email and internet transactions. We can’t list all of the scams and hoaxes that exist, but in order to as-sist we’ve provided some common examples below. And remember — if an offer seems too good to be true, then it probably is. Be aware.

Cheque overpayment scam - You re-ceive a booking, but instead of receiving the amount agreed on, you receive a cheque well in excess of that figure. You are asked to im-mediately refund the overpayment via a bank transfer or some other method.

Money transfer scam - You receive a

booking and are asked to deduct from the supplied credit card the cost of accommo-dation, plus an extra amount (typically sev-eral thousand dollars) to cover other ser-vices they are booking as part of their trip. You’ll be given some excuse as to why they can’t pay for those additional services them-selves, and you’ll be asked to send those extra funds to a third party via Western Union or a bank transfer.

Booking agent scams - If you allow booking agents to sell stays at your accom-modation property, whereby they initially take payment from travellers and later pass those payments onto you, it is important to verify you are dealing with a reputable and trusted organisation.

Nigerian scam - Include emails inviting individuals to participate in a scheme that ultimately turns out to be non-existent. Re-cipients of the letters are required to divulge bank account details and forward tens of thousands of dollars in “advance fees”.

Email employment scam - Victims of this scam are asked to provide their bank account details to prospective employers.

Phishing (pronounced fishing) - Emails are used by fraudsters to trick people into revealing personal information such as bank account details.

Directories and advertising (false bill-ing) - Paying for a directory listing or other advertisement that may not exist or was not authorised.

Fax back scams - Unsolicited faxes offering deals with the high costs of replying to the fax are buried in the fine print or not provided at all.

Office supply scams - Your small busi-nesses may be invoiced for office supplies you never ordered or agreed to.

Domain name renewal scams - Include a fake renewal notice for your actual domain name, or a misleading invoice for a domain name that is very similar.

Business opportunity scams - Promising success but usually only the promoter makes any money.

Further information and fact sheets on Scams, hoaxes and fraud are available on the Accommodation Association website.

OPERATIONS

Survival guidelines for armed hold-ups

OPERATIONS

Operators warned to be alert about scams and hoaxes

The Accommodation Association’s Manager of National Operations Michael Georgeson identifies some survival guidelines for armed hold-ups.

Having safety cameras installed can assist police in the event of an armed robbery


PRESENTED BY

Like many industries in the current economy, the tourism industry faces economic chal-lenges that have been created by interna-tional market fluctuations, and are directly impacted by labour shortages. The PWC Productivity Scorecard states that there is “Growing acknowledgement that some of its impact is here to stay”.

The Society of Knowledge Economics acknowledges that “Up to 80% of Austral-ian employees are not fully engaged at work, costing businesses more than $33 billion a year in productivity losses. Much more needs to be done to lift workplace practices and performance. This is true for all Australian or-ganisations, public or private, large or small. Strong leadership, good management prac-tices and healthy workplace cultures are criti-cal to strengthened workplace performance and lifting employee engagement.”

As the tourism sector is predominantly made up of small to micro businesses, work-force development engagement has centred on decision makers, such as business own-ers, managers and supervisors to drive work-place change. The skills needed to improve business productivity are management and customer engagement skills and the general shortage of labour in the sector includes a

shortage of people trained to work in leader-ship and management roles.

The Federal Government’s $87million government – industry partnership, the Na-tional Workforce Development Fund, will allow industry to take the opportunity to en-sure training is tailored to the workers and the needs of business. For the tourism indus-try, this means that organisations have been able to apply for funding to build leadership and management skills. As an industry skills council, Service Skills Australia process appli-cations from organisations and businesses in the tourism sector.

The building blocks of leadership training are Service Skills Australia’s high level tour-ism, hospitality and events qualifications containing content and learning outcomes from the approved training packages. Ser-vice Skills Australia’s Tourism and Hospi-tality Industry Advisory Committee provide industry intelligence and advice on skills needs, directions and trends within the sec-tor to determine the content of units within the qualifications. Higher level qualifica-tions, such as diplomas, cover the core skills that team leaders, supervisors and manag-ers need to lead effectively, including how to lead and manage people, manage quality

customer service, interpret financial infor-mation, develop business and operational plans and engage in marketing.

One project approved in the first round of the National Workforce Development Fund is the Accommodation Association of Aus-tralia’s project that will deliver an accommo-dation specific Diploma of Management for motel, caravan park and bed and breakfast staff who supervise, manage, own or operate accommodation services in regional Victoria and New South Wales. The training project will provide opportunities for workers to build leadership skills and acquire industry specific qualifications to increase productivity and innovation within the sector.

When announcing the training invest-ment, Senator Chris Evans, Minister for Ter-tiary Education and Skills said: “The key to keeping our economy strong and Australians in jobs is to ensure the success of innova-tive Australian businesses by ensuring they have access to the highly skilled workers they need. It’s an investment in the skills of Aus-tralian workers, the strength of Australian business and the national economy.”For more information on the Diploma of Management contact the AAA Academy on (03) 5902 0509 or email [email protected].

OPERATIONS

Developing Australia's next tourism leadersService Skills Australia’s Susanna Smith looks at the importance of developing tourism leaders.

Now is the time to develop future leaders. Photo courtesy of Futura Group


The property was converted from a 1930’s pier building – can you talk us through the property’s journey to date and any chal-lenges that you’ve had with the conversion?Elizabeth Street Pier was first constructed in 1866 at the end of Elizabeth Street, Hobart, to provide steamship accommodation. Between 1931 and 1934, the original pier was demol-ished and the new pier was built with the addition of a rail connection. The Elizabeth Street Pier is the last remaining major finger wharf in Sullivans Cove, Hobart. The project was to maintain the presence of the exist-ing shed form and maintain maritime usage and full public access around the perimeter, while converting the building to a new use, which included the housing of Somerset on the Pier and restaurants which opened at the end of 1997. The new Elizabeth Street Pier building has maintained the original simple

and industrial character of the building whilst capitalising on its unique position in the Ho-bart waterfront providing absolute waterfront accommodation and dining.

How would you describe the property’s style?Somerset on the Pier integrates the exterior of the historic waterfront landmark with clean, striking modern architecture, featuring spa-cious loft style apartments with contempo-rary décor.

What are the property’s unique points of difference in your opinion?Somerset on the Pier is the only property in Hobart situated on the only remaining finger wharf and offers stunning views from every room. This distinctive difference is leveraged as the unique selling point for the property and is often the initial attraction for guests

choosing to stay at Somerset on the Pier. It is not uncommon for guests to see seals and dolphins from their apartment’s private bal-cony or enjoy the vistas of Mt Wellington during winter time with a dusting of snow on top. Somerset on the Pier is also unique in that all apartments are loft style allowing guests to have separate sleeping and living room areas. Our apartments provide environ-ments that are a comfortable place to escape and immerse yourself in the city.

What are your key markets and when do you tend to achieve the best occupancy levels?Leisure: This includes direct bookings, wholesale and inbound. Somerset on the Pier has an ideal location for leisure travel-lers as the only property that is literally on the water, providing guests with stunning views from every room that showcase the local sur-

keynews

MEMBER PROFILE:SOMERSET ON THE PIERThe Ascott Limited is the world's largest international serviced residence owner-operator with about 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 7,000 units which are under development, making a total of more than 29,000 units. HM spoke to Justin Geddes, Residence Manager at Somerset on the Pier in Hobart, Tasmania.

INTERVIEW STEPh BUSBy

Hobart's Somerset on the Pier hotel


PRESENTED BY

rounds. The central location is also a key fea-ture as leisure travellers can explore the bus-tling waterfront atmosphere or stroll down to see the local produce on display at the Sala-manca Markets, local cafes and art galleries. Corporate: This includes MICE and those guests travelling for the primary purpose of business. The corporate business at Somer-set on the Pier helps to sustain the property through the slower tourist season. While the property has a high retention of corporate cli-ents, many well known and greeted by name by staff members, this year has seen an in-crease in new faces with many clients being referred to the property by ‘word of mouth’ from current corporate guests. An additional target market which is becom-ing increasingly evident is the long stay mar-ket, particularly in the 1-6 month range for

those relocating or on assignment as the ma-jority of real estate agents offer a minimum six month stay. Somerset on the Pier is an ideal property for this market as the rooms are spacious and provide all of the conveni-ences of a home away from home. Typically the peak season in Hobart runs from October April with the low season be-

ing May September. Peak season sees a strong influx of corporate and MICE guests along with leisure travellers here to enjoy the Sydney to Hobart yacht race, Christmas/New Years Eve and the Taste of Tasmania. The low season still sees the corporate market travel-ling along with leisure travellers looking for a quiet destination and perhaps a bit of snow on Mt. Wellington.

What is your general forecast for occu-pancy rates in Hobart and how should accommodation providers maximise their RevPAR?The Hobart market has been particularly buoyant the last few years. Even during the GFC we experienced strong business as peo-ple decided to travel domestically and take more short weekend breaks rather than per-

haps the longer 2-4 week overseas holidays. With the strong Australian dollar recently making overseas destinations more attrac-tive we have had to compete a lot harder for the domestic market. The next 12 months will be challenging for Hobart and Tasmania as a whole as we compete to entice people, new inventory to open in the market, reduced

air access and global economic uncertainty. In order to maximise our RevPAR, the mar-ket needs to work together to offer the best possible pricing that allows value to the con-sumer and also value to our bottom lines. We need to avoid rate slashing to attract occu-pancy as this will only have a negative effect on all properties.

A government backed working group was an-nounced in December 2011 to improve air ac-cess to Tasmania – are you anticipating strong growth once this issue has been resolved?Due to the reduced air access of late, I per-sonally have seen some of the highest airline ticket prices for at least five years with a recent trip costing me nearly $800 return to Mel-bourne. The working group really needs to focus on improving the air access during the high demand times in Hobart. Whilst Christ-mas and New Year sees an influx of people into Hobart, these are not the only times this occurs with October and November being in-credibly strong conference months with lots of movement in and out of the state. Cer-tainly with improved access this will help to lower costs and in turn makes Hobart a more enticing destination.

What is your background and how did you come to join the Ascott group?Having studied a Bachelor of Business in Hotel Management and Catering at Victoria University of Technology and after working in various properties in Melbourne, Queensland and internationally, I found myself working in a hotel in Melbourne that was taken over by the The Ascott Limited. An opportunity came to take a promotion to Operations Manager for Somerset on the Pier and Somerset on Salamanca in Hobart and I have since worked my way up to be Residence Manager for both properties.

SNAPSHOTSOMERSET ON ThE PIERElizabeth Street, hobart, Tasmania, Australia

Operator: The Ascott Limited

Residence Manager: Justin Geddes

Opened: 1997

Rooms and suites: 56 apartments

F&B outlets: Charge-back facilities with local restaurants

Spacious apartments: Somerset on the Pier


keynews

An apprentice cook in Adelaide has been back-paid a total of $20,000 af-ter being paid only first-year appren-tice pay-rates for the duration of his four-year apprenticeship.

A Fair Work inspector found the employee, in his 20s, was underpaid the minimum hourly rate, overtime and public holiday penalty rates be-tween 2006 and 2010.

After the inspector contacted the business and explained its obliga-tions, the employee was reimbursed all money owed without the need for further action against the employer.

In another instance, a young chef in the Blue Mountains in NSW has been back-paid a total of $19,000 fol-lowing intervention by the Fair Work Ombudsman (FWO).

The 20-year-old female employee complained that she was not paid her full overtime entitlements between January 2010 and May 2011.

After a Fair Work inspector con-tacted the business and explained its obligations, the employee was back-paid all money owed without the need for further action against the employer.

The FWO recovered a total of $8.215 million back-pay for 4182 un-derpaid workers in NSW last finan-cial year.

Both of the above businesses have now corrected the errors that led to the underpayments and put processes in place to ensure they will not recur.

These examples demonstrate the importance of having the correct wage rates in place. Different transi-tional wage rates apply to individual businesses. Please contact a Work-place Relations Advisor on 1300 304 397 to get a copy of the correct wage sheet that applies to your business.The Accommodation Association website also provides updated wage sheets and award comparisons at www.aaoa.com.au

Salary sacrifice is an arrangement by which an employee agrees to forego part of their future wages in return for their employer providing benefits of a similar value. When wages are sacrificed in favour of additional employer superannuation guarantee con-tributions, employers can usually reduce their superannuation guarantee costs by agreement with the employee. Employees may also benefit as the additional superan-nuation payments are not taxed at the indi-vidual’s marginal tax rate, but rather at the concessional 15% superannuation tax rate.

Benefits that can be provided under a sal-ary sacrifice arrangement include items such as cars, school fees, child care costs and loan repayments. However, such arrangements may be subject to Fringe Benefits Tax. Ad-vice from a tax consultant should be sought to determine the benefits, if any, from enter-ing into such an agreement with employees.

However, a salary sacrificed super contri-bution is not deemed to be a fringe benefit and, in many instances, employers can reduce their superannuation guarantee costs under a super sacrificed salary arrangement. Such arrangements must be initiated by the em-ployee and the details clearly stated in a writ-ten agreement. The written agreement must stipulate the amount of the salary sacrifice, whether it will be a regular amount or a lump sum, the employees nominated super fund that the super it is to be paid into, whether the employer’s 9% Superannuation Guar-antee (SG) liability is to be calculated pre- or post-super salary sacrifice, and whether the employer’s statutory obligations are to be re-

duced by any super salary sacrifice amounts.To elaborate on this last point, employ-

ers must make a minimum superannuation guarantee contribution of 9% of each eligi-ble employee’s ordinary time earnings each quarter. Due to the fact that entering into a salary sacrifice arrangement effectively re-duces the employee’s ordinary time earn-ings base, the amount of super guarantee that the employer is required to pay is there-fore reduced proportionately, and the salary sacrificed amount counts towards the super guarantee obligation.

Furthermore, if the salary sacrificed su-perannuation contribution is more than the minimum super guarantee amount required to pay (9% of the employee’s OTE), then the employer may possibly not be required to pay an additional amount on top of the salary sac-rificed amount if agreed to by both parties.The information should not be considered personal financial, legal or taxation advice as it is intended to provide information of a general nature only. The information contained in this document may not be appropriate to your individual needs therefore you should seek specific business or personal financial, legal and taxation advice before making any decisions. For such advice, the Association recommends Mazzcorp Partners. Visit www.mazzcorpaccountants.com.au or call 02 9564 5255 for further information. For further assistance with superannuation contact HOSTPLUS on 1300 467 875 or visit www.hostplus.com.au. For more information on tax incentives and superannuation or to read this article in full visit www.aaoa.com.au.

WORKPLACE RELATIONS

Over cooked and underpaid

The Accommodation Association’s Workplace Relations Advisor Trish Babu looks at a recent case of a cook who has been back-paid significantly.

WORKPLACE RELATIONS

Super and the salary sacrifice benefitsThe Accommodation Association’s Workplace Relations Consultant Noel Teskey looks at the benefits for employers and employees when it comes to salary sacrifice and superannuation.


PRESENTED BY

Social media sites such as Facebook have gained popularity among recruitment/HR managers because of their convenience for background checks and a growing anxi-ety about hiring the right people. But as the popularity of this tool increases, so does the controversy surrounding the employment law implications of its use.

Employers use Facebook and Twitter to screen candidates. New graduates, in par-ticular, are the most active social networkers, as well as the target of web research. In their case, businesses do not have much to look back on as they cannot contact former bosses. Therefore the easiest way is to look the candi-date up on Facebook.

Social media users often do not expect their personal information to be monitored by potential employers, and many consider their online profile information to be private. But this is not always the case. In fact nothing on the internet is private.

There have been several instances of Aus-tralian employers having decided not to hire a job applicant because of material they have found on a social networking site. But while taking a decision to do so, employers need to be mindful of a few things.

EMPLOyERS BEWARENot everything you see or do on the internet is true.

While employers might consider online sleuthing a clever strategy, the reality is that

if information concerning protected charac-teristics (for example, race, gender, or age) is disclosed and the candidate is not hired, employers may find themselves on the wrong end of discrimination claims.

Under the Fair Work Act ‘adverse ac-tion’ can be taken by a prospective employer against a prospective employee, if the em-ployer refuses to hire based on discriminatory reasons or offers employment based on dis-criminatory terms or conditions.

Just how accurate are social profiles in de-termining the personalities and capabilities of your prospective employees? One study found 30% of employers use Facebook and 22% used Twitter to screen candidates. 44% said they would consider this approach in fu-ture. But should a candidate’s social profile be fair game in the screening process?

There are situations where checking the Facebook profile of candidates may be deemed legitimate. An example is if the em-ployee in question works in public relations, advertising, marketing, sales etc. that other-wise serves as a representative of a certain company. In that case, employers may want to ensure that the employee is not being an embarrassment to the company.

A profile on social media can serve as an extended resume. An employee who displays his depth of knowledge and interest on his public profile might increase his chances of getting hired. Similarly, employers may choose not to hire based on photos and posts

which are of an outrageous nature.On the other hand, online profiles are not

meant to be online resumes. A candidate’s suitability for a role cannot be based on an online profile designed to be purely social. A public profile is meant to be a vehicle for casual social interaction. The setting is casual and on a user’s personal time.

What a candidate posts online should not serve as basis on whether they should be em-ployed or not. This is someone outside of the office, on personal time. Making decisions to hire or fire based on this information might be discrimination that opens an employer up to legitimate complaints.

WhAT yOU SEE IS NOT ALWAyS WhAT yOU GETOnline profiles are designed to keep ano-nymity at a premium. Some individuals see it as an opportunity to build up a ‘cyber’ personality. An introvert might put up some photos, details and tweak their personality to liven up their social life. When an employer stumbles upon this candidate’s ‘cyber’ self, will they discount the candidate based on their modified or fictitious online profile?

It is a tricky issue without a straightforward answer. It cannot be emphasized enough that employers must err on the side of caution when looking up a candidate’s online profile. It is, of course, worth being aware of both sides of this controversial issue, and being mindful of a candidate’s right to privacy.

WORKPLACE RELATIONS

Is your Facebook profile fair game?The Association's Workplace Relations Advisor, Trish Babu delves into the perils of social media.

Making a decision to hire or fire based on social media information may be discriminatory


LEADERSFORUM

THE 2012INDUSTRYLEADERSFORUM


Resorts Asia-Pacific, photographed exclusively

for HM by Andrew Jarvie

INTERVIEWS BY JAMES WILKINSON

Welcome to the 2012 Industry Leaders Forum edition of HM magazine where once more we have compiled the most comprehensive wrap-up of the accommodation industry in Australia, New Zealand and the entire Asia-Pacific region. Inside, you’ll find exclusive interviews with the leading Hoteliers, suppliers, Prime Ministers, Tourism Ministers, association and tourist board heads, alongside an outlook for the aviation industry in 2012.


GLOBALLEADERS

Sealy, Australia’s most preferred bedding brand has been in partnership with the leaders in the accommodation industry for over 30 years.

When choosing bedding for your business, you are making the biggest investment towards your success.

The Sealy Commercial range is built with this in mind to provide:

- Orthopaedically designed bedding for optimum comfort and support

- Durability to withstand the stresses of commercial use

- Superior sleep for your guests.

You can trust Sealy Commercial to offer dedicated customer support and provide a customised bedding solution that is suitable to your property and budget.

Call Sealy Commercial...your success is our business

Please call 1300 780 150

www.sealy.com.au/commercial

Your Success is Our BusinessBr

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What are your expectations for performance in 2012?I think it would be better to ask what our 'hopes' are for 2012, because making predictions when the global economy is so unpredictable is fraught with danger. For instance, we have been hearing relatively positive news out of America over the past few months, but the eu-ro-zone continues to be a great concern, and that can obviously have flow-on affects to the Asia-Pacific region. Having said that though, Asia-Pacific has shown great resilience since the GFC and intra-Asia-Pacific travel is increasingly supplying much of the growth in corporate and leisure business for the region.

Which are the hottest segments and markets to watch in Asia-Pacific?If you look at the inbound figures for destinations such as Hong Kong and Singapore they seem to break records month after month. De-mand seems to be insatiable and with mainland China fuelling much of this growth there is considerable potential for further growth to nearby destinations. And that is the key to the continued health of our Asia-Pacific market. New Chinese travellers aren’t suddenly going to fly to America or Europe. They will start with short-haul destinations such as Hong Kong, Macau, Bangkok or Seoul, and all you need is a small increase in the percentage of Chinese travelling in the region to equal a vast number of additional travellers. Thailand withstood so many difficulties in 2011 that 2012 is likely to be a significant year of recovery in Thailand, while countries such as Vietnam, Cambodia and Laos have benefited from the increased number of second and third time visitors to Asia, particularly from markets such as Australia and Europe. India will really accelerate as a force in the travel and tourism industry this year as many projects reach fruition.

Accor Asia-Pacific

MICHAEL ISSENBERGChief Operating OfficerAccor Asia-Pacifica

What’s in the development pipeline for 2012?In 2011, we added 66 hotels in ten countries, confirming our posi-tion as the leading operator in Asia-Pacific. An additional 117 hotels (23,000 rooms) were committed during 2011, which will be boosted further by the acquisition of Mirvac Hotels and Resorts in Australia, representing 48 hotels representing 6,100 rooms. The Pacific’s growth will mainly come through acquisitions, management contracts and franchise agreements. China will once again dominate the develop-ment pipeline for Accor. We have seven Pullman hotels scheduled to open this year or under development, and Pullman will also be a ma-jor focus in Indonesia, India, Vietnam and Thailand. Sofitel will also be active with some key projects opening in Mumbai, Bangkok and Shanghai this year, while at the economy end of the market we will launch a very significant hotel in Hong Kong, which we believe will have a similar impact for the brand as the pace-setting Ibis Singapore on Bencoolen did. Korea is another market that shows enormous promise, and we have just announced three new hotels – a a Novotel, Mercure and Ibis – which will open over the next few years.

Why will Australasia/South Pacific be a key region in 2012?The Pacific is quite different from Asia because it is a very developed market, while Asia is still developing rapidly. The strength of the dollar may have curtailed some inbound travel to Australia, but the country has been a powerhouse for out bound travel, fuelling growth to Thai-land, Indonesia, China and India. In turn, Australia and New Zealand have seen their tourism demographics switch significantly to Asian countries as their major source markets.

What are the major issues facing the hotel industry at present?Economic uncertainty is the biggest threat. China remains a vital com-ponent of the equation. Despite talk of a slow-down, we’ve seen little evidence of this and are confident that its economy will continue to expand, along with the number of Chinese able to travel India has not expanded as rapidly as anticipated because of the issues with infra-structure development, but we will have numerous major hotels open-ing this year including a Sofitel in Mumbai that has just opened and a Pullman in Gurgaon, Delhi, which will open in the next few months. Markets such as Japan and Korea are still experiencing difficulties, but this is more than offset by acceleration in places like Malaysia, Indo-nesia and Singapore.

How much of an impact is the growth of low-cost airlines having on your business?Low-cost airlines have fundamentally changed intra-Asia travel over the past decade. Travellers increasingly have the means of fulfilling their ambition to travel, and this has been complemented by the ex-plosion in economy style accommodation in China and elsewhere in Asia. While China has the most extensive network of economy hotels, including Ibis, there has been serious progress in Thailand, Indonesia and India, where upscale hotels have dominated the international sec-tor. Asia-Pacific needs a balance of full service and budget airlines to meet the future needs of the travelling public, particularly for intra-Asia travel.

Is the luxury leisure market well and truly back, or how far is there to go?Because of major expansion in upscale and luxury hotel development across Asia, rates are still very competitive, which has meant that de-mand for the top-end of the market came back strongly in 2011. That has been complemented by growth in the business events market. We don’t see any likelihood of changes in these patterns.


Sealy, Australia’s most preferred bedding brand has been in partnership with the leaders in the accommodation industry for over 30 years.

When choosing bedding for your business, you are making the biggest investment towards your success.

The Sealy Commercial range is built with this in mind to provide:

- Orthopaedically designed bedding for optimum comfort and support

- Durability to withstand the stresses of commercial use

- Superior sleep for your guests.

You can trust Sealy Commercial to offer dedicated customer support and provide a customised bedding solution that is suitable to your property and budget.

Call Sealy Commercial...your success is our business

Please call 1300 780 150

www.sealy.com.au/commercial

Your Success is Our BusinessBr

and

New

Com

mer

cial

Ran

ge

GLOBALLEADERS

What are your expectations for performance in 2012?2012 looks set to be a tough year. The Asia-Pacific region will un-doubtedly be affected by the financial uncertainty in Europe and the U.S. Specifically, export-led economies in Asia as well as countries that rely on a high level of foreign investment will be most negatively af-fected. I believe that both China and India will be largely unaffected and will maintain growth levels as consumer-led economies. Like Chi-na, India is relatively well insulated with strong domestic consumption and it still has a low level of foreign direct investment. Although there will likely be lesser international travellers into both countries, their hospitality markets should remain stable with the strong domestic de-mand for rooms. Which are the hottest segments and markets to watch in Asia-Pacific?China and India will continue to drive the greatest growth in Asia-Pacific. We believe that business generated in Asia for Asia will be much more important in 2012. Countries with strong currencies such as Australia will continue to outperform other markets in the region. What’s in the development pipeline for 2012?Carlson is scheduled to open 18 hotels in 2012, of which 16 will be in India and two in China. The focus will still be on India where Carl-son is the leading international hotel operator. We had record sign-ings in 2011 of which more than 40% were in China and we expect this to continue. We are seeking opportunities in several capital cities in South East Asia including Singapore, Kuala Lumpur and Jakarta where we do not yet have a presence. Why will Australasia/South Pacific be a key region in 2012?Australia and the Pacific Islands are important markets for Carlson as they present future opportunities for growth. We currently have four hotels in Australia and two in the South Pacific Islands of Tahiti and Fiji and we have aspirations for many more hotels going forward.

What are the major issues facing the hotel industry at present?Hotels are facing shortage of skilled labour and increased competition

Carlson Rezidor Hotel Group

SIMON BARLOWPresident – Asia-PacificCarlson Rezidor Hotel Group

with more new entrants into the market. From a development stand-point, keen competition for new hotels translates to diminishing re-turns from management agreements. Hotel developers have to battle with rising land costs which affects the viability of new developments. How much of an impact is the growth of low-cost airlines having on your business?Low-cost carriers have created shifts in the tourism and travel industry that have seen emergence of new travel destinations and tremendous impact on travellers’ behavior. This has translated to great opportuni-ties for our hotels with the increase in air travel and frequency of travel. To ensure that we capture this opportunity, we must have the right hotel brands that cater to leisure travellers who are travelling economi-cally as well as those who prefer to save on flights but spend more on hotels. Increasingly, we are also seeing business travellers (particularly domestic), opting for low cost carriers, which in turn will prompt a rise in the number of hotels that focus on a value for money proposition as well as brand consistency in the region. Carlson will be aggressively introducing our mid market brand, Park Inn by Radisson, into several Asian countries in 2012, including India, China and the Philippines.

Is the luxury leisure market well and truly back, or how far is there to go?With refurbished luxury hotels and new entrants coming into the Syd-ney market, indications are that efforts are being made to attract the luxury leisure guests. Australia is still struggling to support the rates to sustain luxury hotels, which means the truly top end luxury hotel operators are very hesitant to set up here as it can compromise their brands. Labour costs in Australia also make it difficult to provide the service levels expected by luxury leisure traveller. From developers’ and banks’ view points, the best financial models for new hotel devel-opments are mid market to upper upscale hotels. How sustainable is your company?Conducting our business in a sustainable and responsible way is fun-damental to all employees at Carlson. We strive continuously to im-prove our performance in the areas of energy, water, chemicals and resource consumption and waste generation in order to reduce our negative impact on the environment. Our hotels participate in the EarthCheck certification program where they diligently monitor en-ergy and water consumption as well as waste creation to improve their sustainability. Currently, 32 hotels have successfully gone through the program, of which more than half have achieved Silver Certification. Radisson Hotel on Flagstaff Gardens Melbourne has been selected as a star performer by EarthCheck for setting new benchmarks for eight of the 10 key indicators. By 2015, we are aiming to reduce waste creation by 24% as well as energy and water consumption by 14% and 12% respectively What is your company’s X-factor in 2012?We may not be as big as our competitors but we have passion and commitment that will see us through to achieve our Ambition 2015 goals of doubling our portfolio in Asia-Pacific. This means we can be more nimble, aggressive and flexible with our strategies than our larger competitors. We are prepared to invest in deals for new hotels where others may not want or have to. Finally, the leadership team of Carlson Hotels in Asia-Pacific is largely a new team of high calibre, proven hotel executives that are very experienced in the region. I am very excited by Carlson Hotels' prospects in 2012, which will help us achieve our 'Ambition 2015' plans of doubling our portfolio in Asia-Pacific to 150 hotels.


GLOBALLEADERS

Hilton Worldwide

What are your expectations for performance in 2012?Today, 40% of the properties we manage in Asia-Pacific are resort-style, which means we were already off to a strong start in 2012 due to the current holiday season. For instance, we are seeing a strong perfor-mance from all of our three properties in the Maldives.The outlook for 2012 slightly varies from country to country, even though the overriding sentiment is positive across the board.With China’s growing middle class, both domestic travel within China and outbound travel from China will continue to be key drivers of business for us in Asia-Pacific. In China, we currently have more than 20 trading hotels, and over the last few years have built a very strong pipeline for new hotels (over 80 hotels to be opened until 2015), in order to address the growing demand for quality accommodation. Markets such as Hong Kong and Singapore, where corporate and MICE-related travel are typically key business drivers, will continue to remain strong for us in 2012.In 2011, the triple disaster in Japan severely affected the tourism sector in this wonderful country. The domestic business has already recov-ered strongly, however, we are now also starting to see international business slowly returning to Japan, and we expect this trend to con-tinue in 2012, helped by joint government and private sector initiatives to drive tourism back to the country.India will also continue to be one of the powerhouses for us in Asia-Pacific, simply because demand outstrips supply as the economy con-tinues to grow, albeit at a slower pace. We more than doubled our trading estate in India in 2011, with seven hotels currently in opera-tions and more than 20 in the pipeline to be opened over the next few years. Domestic travel within India is also expected to be a key busi-ness driver in 2012 and beyond.

Which are the hottest segments to watch in Asia-Pacific?China and India will continue to be the two growth “powerhouses”, not least due to the large potential for domestic tourism, which is yet to be tapped. Economic development in China coupled with a rapidly grow-ing population is resulting in the proliferation of a middle class – lead-ing to higher income levels, which support a greater appetite for travel, especially domestically and inter-regionally. In our hotels, China’s do-mestic travel numbers now far exceed international travel arrivals. The boom has also been supported by good infrastructure in the form of high-speed rail and interconnected highways linking to major airports within the country. We are also witnessing more companies expanding their presence inland and hence are expanding our footprint beyond the Eastern seaboard to secondary cities such as Xi’an and Hangzhou where we anticipate increasing demand for quality accommodation.

India is a buoyant and dynamic market with ample opportunities to cater to all segments from luxury and upscale to mid-market, as well

as focused-service hotels. We have introduced in India our upscale, full-service hotel brands - Hilton and DoubleTree by Hilton and our mid-market brands Hilton Garden Inn and just at the end of last year, Hampton by Hilton. We have plans to launch our luxury hotel brands Conrad and Waldorf Astoria in the Indian market as well.While we continued to focus on opportunities in the upscale and luxury segments during previous years, we are now also looking to expand our mid-market and focused-service brands to accommodate the exponentially growing demand from business travellers in India for mid-priced hotel rooms.

Across other markets in Asia-Pacific, we are still seeing healthy bookings in the Meetings, Incentives, Conferences and Exhibitions business. Many companies still value face-to-face meetings, although lead times for booking venues and accommodations are now a lot shorter than in the past.

What’s in the development pipeline for 2012?Over the last few years, we have built up a healthy pipeline of hotel projects. We expect to continue to sign on interesting projects in 2012, albeit potentially at a slower pace than in the past. Having said this, the year was already off to a good start with new opportunities open-ing up in various parts of South east Asia, combined with opportuni-ties to introduce more of our brands into existing markets.

What are the major issues facing the hotel industry at present?One of the key issues that the hospitality industry faces is that of hu-man capital development.Attracting, training and retaining team members who are passion-ate about what they do and driven to provide exceptional service and memorable experiences is the most important differentiator in the ev-er-increasing competitive landscape, which sees expansion from both international and domestic brands.We invest heavily in talent developing initiatives and offer a multitude of learning and development opportunities and professional training across functions. Globally, team members are provided access to Hil-ton Worldwide University, a virtual university that offers more than 2,500 tailored learning courses that target different skills and perfor-mance enhancement, and tracks all courses taken over an employee’s career with Hilton Worldwide’s portfolio of brands. One of our key development programs is the Management Trainee Program, which helps identify individuals with potential for grooming into senior roles. We also have a special leadership development program targeted at Hotel Department Heads and General Managers.

Last year, Hilton Worldwide also signed partnerships with Taylor’s University in Malaysia and Les Roches Jin Jiang International Hotel Management College in China to groom talent and raise the bar in hospi-tality. Selected students from these institutions attend a “Hilton Class” and are deployed on internships at Hilton Worldwide’s managed ho-tels, where they may subsequently be offered permanent employment.

How much of an impact is the growth of low-cost airlines having on your business?Making travel more accessible to a larger audience certainly has its follow-on effects on the hospitality business. Our experience in the US and in Europe shows that people are typically willing to trade down during the few hours they spend on plane, while trading up for the ex-tra days they can then stay in our hotels. This is why we see the growth of low cost airlines in Asia-Pacific as beneficial for our business.

MARTIN RINCKPresident – Asia-Pacific

Hilton Worldwide


GLOBALLEADERS

JAN SMITSCEO - Asia, Middle East and AfricaInterContinental Hotels Group (IHG)

A hotel, by definition, provides services to fulfill the needs of travellers. That means a big part of our business thrives on day-to-day human interaction.

With technology evolving ever faster and the way we do business and travel following suit, Hoteliers really need to understand what guests are looking for. Staying relevant is one of the biggest challenges for anyone involved in this business.

As one of the world’s largest hotel companies, IHG has seven hotel brands catering to the different lifestyle and needs of global travellers. Listening to our guests has helped us develop different services and in-novations specific to the wants and needs of customers of each brand.

A recent example of this was the smart phone and tablet booking apps for each of our brands. This builds on the mobile check-in tech-nology we’ve piloted with the Holiday Inn brand – allowing guests to bypass the front desk and unlock their hotel room door with an audible tone in eight different languages.

By keeping close to how human interaction is evolving, and track-ing the way in which the world is behaving, we’re always looking for ways to adapt our hotels to stay relevant with tomorrow’s guests.

An estimated 65 million outbound visits were made by the increas-ingly affluent Chinese travellers in 2011. China has surpassed the UK as Australia’s most valuable tourism market, as evidenced by a recent survey released by the Department of Resources, Energy and Tourism.

With China looking to take over the US as the world’s biggest hotel market by 2020, IHG is developing a new upscale brand for China, due for launch in the first quarter of 2012.

InterContinental Hotels Group

The new China brand has been developed after extensive research into the lodging and hospitality needs of Chinese travellers. We see great potential for expanding the presence of this brand beyond China, given the increasing volume and importance of Chinese guests.

International arrivals to South east Asia grew in 2011, with strong performances by Myanmar, Thailand, Cambodia, Indonesia and the Philippines.

South Asia recorded an 11% increase in international arrivals for September 2011, nearly 60,000 more visitors compared to the same period last year.

Lao PDR enjoyed a remarkable 22.2% growth in international ar-rivals during the first nine months of 2011, with a substantial increase in traffic from neighbouring Vietnam and Thailand.

Australia remains a strong source market for many of these emerg-ing markets, often appearing within the top 10 inbound visitors rank-ing in the likes of Indonesia, Vietnam, and Thailand.

Intra-regional travel in Asia looks set to boost arrivals as more middle-class travellers, particularly from China and India, explore the region for the first time.

We’re gearing up to service growing demand from this particular segment, with 70 out of our 122 hotels under development across the region will open under the Holiday Inn or Holiday Inn Express brands.

In particular, bringing Holiday Inn Express beyond Greater China into the rest of Asia-Pacific will fill the gap for a hotel product that provides a great stay experience at an excellent price point.

IHG has been a pioneer when it comes to online booking innova-tion. We were the first to make booking a hotel room online possible in 1995; first to introduce the ‘lowest internet rate’ guarantee in 2002, creating an industry standard; and first hotel company to offer book-ing applications across all major mobile platforms and in eight dif-ferent languages in 2011 – subsequently contributing to $130 million in revenues.

We’re building on this history of firsts by being the first hotel com-pany to launch the Best Price Guarantee, a powerful assurance to our guests booking on any of the IHG brand websites. Any guest who finds a qualifying, lower room price for an IHG hotel elsewhere online will receive their first night free, and the rest of their stay will be low-ered to that price.

At a time where our guests are getting younger – the average age of a business traveller in South east Asia is 34, for example – making our brands more available on channels they are familiar with is a critical element of the entire guest experience.

With operations across 40 countries in Asia, Middle East and Africa, I’m responsible for a region that brings together a largely managed, upscale business in some of the world’s fastest growing markets. As IHG’s newest region, AMEA will focus on delivering growth in emerg-ing markets, launching brands into new markets, expanding our luxu-ry resorts presence, and nurturing our people.


GLOBALLEADERS

What are your expectations for performance in 2012?Langham Hospitality Group’s properties mostly performed above ex-pectations in what was generally a better year than the previous three. Many of our hotels had benchmark years in profit which is a good sign. We expect our Asia-Pacific properties to continue to perform well in 2012 with an increasing amount of leisure direct business (retail) as well as the Chinese tourist both domestically and internationally driv-ing growth.

Which are the hottest segments and markets to watch in Asia-Pacific?The strong Australian dollar has helped with the growth of the inter-national leisure business and allowed Australians to continue to travel further and more often. The Pacific is a strong region for us and ac-counts for 15% of all our business company-wide so it gets a lot of focus from our team. I expect the Chinese traveller story to continue coming of age with more travelling than ever, bringing with them their strong spending power and increasing desire to use luxury or upscale hospitality products. As an Asia-Pacific based Hotelier with its roots in luxury European heritage, we’re offering hospitality that resonates well in both markets allowing us to take advantage of this two way traffic. I think Bali is one area to watch. It continues to record good occupancies and climbing rates. We have announced a number of resort developments there recently. With recent summits held there including ASEAN, a new airport infrastructure, the development of northern Bali, and the growing choice of luxury hospitality products including The Langham and Eaton Luxe, the island is set to cement its position as one of the hottest go-to destinations for 2012 and beyond. North Asia continues to be hot. City destinations such as Hong Kong and Shanghai remain attractive destinations for leisure as part of Asia-wide itineraries or single destinations in their own right.

What’s in the development pipeline for 2012?Langham’s pipeline will see five hotel openings in China in 2012 in Shenzen, Guangzhou, Xuzhou, Ningbo and Xinqiao. Added to this we will see the grand opening of the Shanghai flagship property – The Langham, Xintiandi. We are seeing good acceptance of all our brands in China including The Langham, Langham Place and Eaton as well. Our announcement pipeline is also strong. We have a num-ber of properties located across South East Asia which we are close to announcing which are strong destinations for the Australian and New Zealand market. We’ve recently announced our first manage-ment agreement for an Eaton Luxe in Bali which was the first of these.

Why will Australasia/South Pacific be a key region in 2012?Australasia naturally has strong intra-trade with hubs centred natu-rally around the two biggest nations, Australia and New Zealand where we have our hotels located. The sophistication of the region in agriculture, manufacturing and services make them attractive busi-ness partners, particularly for nearby Asian nations. Australia is the fourth largest economy in Asia and an important source of tourists to the region. It has also always been an attractive tourist destination. There is also a strong trade correlation with 4.6% of Australian GDP generated by exports to China. The key dependency between China and Australia cannot be underestimated as energy and resources being exported grow around 10% year on year. Australian businesses plan to invest $140 billion on capital expenditure in 2011-12, with $83 billion

in the mining sector. Meanwhile, New Zealand’s image for pure agri-culture will also be source of strong agricultural produce. As a result of all of this the platform for growth and continued expansion, the Pacific region is a strong development opportunity for Langham. Likewise our focus on expansion in this region is also strong. We are actively looking for a property in Sydney and also want to expand to other state capitals and the resort areas. With the success of our existing two properties in this region I am in no doubt you will hear of new hotels coming from Langham into this region soon.

What are the major issues facing the hotel industry at present?Managing potentially strong supply growth in an uncertain world re-mains a major industry issue. Globally, uncertainty over the state of the economy and financial markets all impact our business as travel is a high beta industry, rising and falling quicker than most others. While we’re bullish about our prospects in 2012, especially in the Asia-Pacific, we are cognisant of the effect of increasing supply and bear-ish world economies. Also, broadly speaking, managing and retaining good talent is an issue that every industry faces although the growth rate in the travel industry exacerbates the issue. We have concentrated on total quality management systems and we’ve focused on ensuring our colleagues understand when they are successful which translates in turn into happy colleagues and delighted guests. This is the spring board to developing a reputation that attracts good talent and retains them as well.

How much of an impact is the growth of low-cost airlines having on your business?Overall, any increase in tourist trips whether business or leisure and operations that underpin this growth is good for the industry. We do not see great impact in general but support low cost carriers as it’s all about the maturing of the market.

Is the luxury leisure market well and truly back, or how far is there to go?The leisure market segment never went away and it continues to be our largest and most profitable segment. Langham has been targeting this segment with great success in the past years. We know independ-ent leisure travellers tend to make buying decisions based around the brand and its luxury positioning while corporate customers are gener-ally more price and location driven.

Langham Hospitality Group

BRETT BUTCHERChief Executive OfficerLangham Hospitality Group


DAVID CAREYPresident and CEOOutrigger Enterprises Group

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What are your expectations for performance in 2012?We expect reasonable growth in both Australia and South East Asia in 2012. We anticipate some downturn from the European markets in the Asia-Pacific, but we think that the decline in numbers will be offset by growth in the regional market.

Which are the hottest segments and markets to watch in Asia-Pacific?India and China continue to lead in visitor arrival growth. We also feel that the Australian outbound market is important to our destinations. We will continue to focus on both of these markets.

What’s in the development pipeline for 2012?We continue to explore opportunities in Thailand, Vietnam, China, Maldives, Philippines, Indonesia, Japan and Australia.

Why will Australasia/South Pacific be a key region in 2012??Outrigger will mostly be focusing on the Australasia/South Pacific region for our expansion efforts in 2012 and beyond. Although the Outrigger brand is well known in Australia, our rapidly growing op-erations in South East Asia are relatively new. Therefore, we will con-tinue to focus on establishing our brand positioning and expanding our reach.

What are the major issues facing the hotel industry at present?Stagnation of the European economies, difficult visa rulings for China, natural disasters and political instability in the Middle East are just some of the issues facing the hotel industry.

How much of an impact is the growth of low-cost airlines having on your business?Locations serviced by low cost carriers are seeing some positive growth. People are willing to trade down their airline in order to trade up for a resort experience.

Is the luxury leisure market well and truly back, or how far is there to go?Most of our properties are in the deluxe market and not the luxury market. However, it is my opinion that the true luxury experiences are sustain-able but the 'pretend or wannabe' luxury offerings are falling away.


GLOBALLEADERS

Pan Pacific Hotels Group

PATRICK IMBARDELLIPresident and CEOPan Pacific Hotels Group

What are your expectations for performance in 2012?2011 was a very good year where most markets performed well, as did our hotels. As we approach 2012, the only certainty about it is its uncertainty, and while we are, to use the cliché, cautiously optimistic, it is a current state of mind. We have contingency plans – in terms of detecting trends as early as possible and responding to them — in specific markets, with the understanding that not all the markets will be performing the same. Three years ago, we had a global financial crisis that affected everybody, about the same. Now we have many parts of the world moving in different directions – USA, certain parts of Europe, China and also Asia. I think we have, in the last years, been accustomed to disruptions, whether they are downturns or upturns in business.

Which are the hottest segments and markets to watch in Asia-Pacific?Discretionary leisure travel will come back and this market segment will go to main cities, leisure locations as well as resort destinations. There is no doubt that locations focusing on providing spa or other forms of relaxation will grow faster than others only because they are starting from a smaller base and it is something new in the market, and any new trend will continue to grow at a faster pace. China is a big growth machine at the moment, whether it will stay like that remains to seen because there is some indication that there are lesser projects talked about today as there were four years ago. India seems to be get-ting popular among investors particularly, Indian nationals who are residing in the Europe or US and are returning to India to invest in their home countries. There’s also much opportunity in the serviced suites market – more extended stay customers are looking for a non-hotel and more domestic feel experience, and while this is for key cit-ies at the moment, it will spill into secondary cities. There is of course some concern about the meetings market as that will be the first dis-cretionary slowdown for corporate spending in times of uncertainty.

What’s in the development pipeline for 2012?A couple of ‘firsts’ for us; we will launch the Parkroyal brand in China with Parkroyal Serviced Suites Green City, Shanghai. Also the first Pan Pacific Serviced Suites and hotel on the same site launches in Ningbo in China. We’re also very excited about our Singapore projects – a serviced suites property, and Parkroyal on Pickering, which will be flagship Parkroyal in Singapore. We’ve got WOHA, leading urban de-signers behind this, and its green concept is already starting to receive a lot of attention. This is our Parkroyal statement, we’re using our own capital and it will be a standard for Parkroyals moving forward.

Why will Australasia/South Pacific be a key region in 2012?The region has been very resilient over the years and so has perfor-mance. Also due to land cost and interest rates, additional supply has certainly slowed down. Therefore it is a much more robust market that could endure a hit in demand.

What are the major issues facing the hotel industry at present?There’s always the normal business issues of margins, cost and antici-pating technology but we’re also looking at a talent crunch and mainly in the leadership area. In some places we need to just continue to at-tract people who want to be part of the industry at every level. We’re having our biggest challenge in Western Australia where we are com-peting head on with the resource industries.

How much of an impact is the growth of low-cost airlines having on your business?The reality is low cost airlines are a business model that brings more people to more places. While it brings affordability to more people, some people are making the choice to spend less on their airlines and more on their accommodation experience. So that is a good thing for our industry.

Is the luxury leisure market well and truly back, or how far is there to go?No. It is not truly back. In 2011 we were expecting the luxury market from Europe and North America to grow back to what it was, however it’s still not the case and we have some question marks about what it will be moving forward. On the other hand, the Chinese luxury market is growing and there’s a lot of this market that wants to experience luxury in our hotels and resorts and we are gearing up for that in many ways because we do recognize that is the main growth driver for this region.

What is your company’s X-factor in 2012?We’re ready for 2012, we have a great balance between owned and managed hotels and we have a healthy balance sheet that will assist us to grow. We’re nimble, we can move very quickly to opportunities and changes in the market. Plus, all the work we have been doing with our brands – we’re leveraging on all of that in 2012 for greater success.


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Rendezvous Hospitality GroupERIC TENGCEORendezvous Hospitality Group

What are your expectations for performance in 2012?Despite the expected difficulties in the global economy, the turna-round plans for Rendezvous are well in progress and I expect us to do better than last year. Which are the hottest segments and markets to watch?China and India will lead as 'world travellers' and especially the Chi-nese market, major hotels chains are already expanding their footprint. The emergence of the upper-middle class segment in these markets and easing of restrictions on movement by the Chinese authorities have benefited both inbound and outbound tourism markets in China. How important is a lift in domestic tourism?Domestic travel plays a pivotal role in the hospitality industry in Aus-tralia. Although most of our clients are corporate, an uplift in domestic tourism will be a plus for us. What’s in the development pipeline for 2012?The key developments will be mainly: to complete all our major re-furbishment projects, especially Rendezvous Grand at Scarborough Beach in Perth; to launch the 'One Rendezvous' brand and kick-start a new phase in the growth of Rendezvous. Why will Australasia/South Pacific be a key region in 2012?The economy, coupled with the resource boom, has been resilient in the last 15 years that Rendezvous has built its footprint in this region. We are confident this will continue to be a key region for us. What are the major issues facing the hotel industry at present?The profit margin is challenging. Operation costs are increasing, cou-

pled with the increases in taxes on energy consumption. Existing M&E systems need to be upgraded and be more energy efficient as overall energy costs need to be controlled. IT infrastructure costs remain high and productivity can be improved. How much of an impact is the growth of low-cost airlines having on your business?Growth of low-cost airlines will increase both the outbound and in-bound market, and to a certain extent affect domestic leisure travel. For example, it may be cheaper to fly to Bali. However, factors such as currency and global economic outlook, may also impact the growth of the local tourism market. Is the luxury leisure market well and truly back, or how far is there to go?We think the luxury leisure market might have taken a back seat in the last quarter with the poor global economy outlook. Whilst there will still be demand for travel, travellers will be value conscious and discerning. How sustainable is your company?As a subsidiary of Straits Trading Company Limited, a venerable 125 year company, we always strive to be sustainable in the way our busi-nesses are conducted. By meeting our customers' needs with sincerity and service, adapting to any new environment well and doing our part for the community. What is your company’s X-factor in 2012?The company is focused on ensuring that Rendezvous works for our business and leisure guests, who are discerning travellers, seeking su-perior value accommodation.


GLOBALLEADERS

What are your expectations for performance in 2012?2012 will be an exciting year for SilverNeedle Hospitality. Over the past year we have established a strong presence in the Asia-Pacific region with over 4,000 keys under management. In the coming twelve months, we expect to be on a high growth trajectory with a sharp focus on South and South East Asia while continuing to expand our offer-ings in the Asia-Pacific region. SilverNeedle Hospitality is a product of the new progressive Asia-dynamic, fast growing, energetic... and aims to be the leader in Asian hospitality by 2016. We address the upper-mid market segment and hope to see our first ‘NEXT’ brand hotel open in 2012. Our team will create a network of over 10,000 much-needed rooms over the next five years throughout the Asia-Pacific region. SilverNeedle Hospitality’s urban and resort properties will provide a welcome that will exceed the expectations of the new generation business traveller, and add long-term value for stakehold-ers through a combination of efficient design, innovative services and modern technology.

Which are the hottest segments to watch in Asia-Pacific?The segment to watch is definitely the modern regional/domestic Asian traveller. There has been a tremendous surge in this market over the past year due to several contributing factors; low cost carriers being the most significant. We anticipate this will be a high growth segment and SilverNeedle Hospitality is well equipped to address the needs of this new breed of traveller. As a consequence of this trend, we antici-pate 2012 will see a high demand particularly in the growth of urban hotels. The most interesting markets will be India and China while Sri Lanka will be a new market with huge potential growth.

What’s in the development pipeline for 2012?In 2012 we have significant projects in the pipeline in India, Sri Lanka and Indonesia as well other key locations in the Asia-Pacific region.

What are the major issues facing the hotel industry at present?The major issue facing the Asian hotel industry without question is skilled staff. The challenge is to attract and retain the right talent. The industry as a whole needs to find continually evolving and innovative ways to attract skilled people with the right attitude, and then set-up a career path where they will be able to achieve their personal ambitions.

How much of an impact is the growth of low-cost airlines having on your business?In Asia, it's huge. The growth in low cost carriers has made travel more affordable, especially in the regional and domestic segments. The number of low cost carriers servicing long haul destinations has also had a significant impact. It has opened up travel for the burgeoning middle class, especially in South and South East Asia. This trend has had a very positive effect on the hotel industry at large and we antici-pate it will continue to do so in the foreseeable future.

Is the luxury leisure market well and truly back, or how far is there to go?Traditionally, the luxury leisure market is the last to be impacted by a downturn and the first to come out of one. I do think the market is back but the offerings have and need to undergo a change. The focus is now more about ‘added value’ and less about pure room rate.

What is your company’s X-factor in 2012?Our flagship brand ‘NEXT’ is our X-factor. Inspired by a new Asian Traveller who is globally connected while firmly engaged within the local community, NEXT Hotels and Resorts has been created to de-liver an authentic contemporary Asian hotel experience. Our design approach is to eliminate, reduce, enhance and add to the traditional hotel offerings to provide greater value in areas that matter most to our guests and owners. A unique service culture built upon the latest technologies will provide the guest with the ultimate choice: service ‘just like home’ where you can get it yourself or be served as would be expected from an authentic Asian hotel. Connectivity to the world, while at the same time to the local community, is our trade mark.

SilverNeedle Hospitality

BILL BLACKPresidentSilverNeedle Hospitality


GLOBALLEADERS

Swiss-Belhotel InternationalGAVIN M. FAULLChairman and PresidentSwiss-Belhotel International

What are your expectations for performance in 2012?2012 looks very strong for Swiss-Belhotel International. In Australia we hope to add at least two new properties plus we have more than 35 upcoming destinations worldwide. Looking forward to 2012, I believe we will see continued signs of recovery for the hotel industry. Owners and operators will focus on more aggressive pricing policies, which will translate into strong growth in hotel profits.

Which are the hottest segments and markets to watch in Asia-Pacific?Clearly for Swiss-Belhotel International it is Indonesia, China and The Middle East. We are also focused on Vietnam and Malaysia. However, across Asia-Pacific it is getting very competitive with different coun-tries coming up with new attractions and offerings to attract tourism dollars plus the governments of the Asian region have taken positive steps to encourage economic development such as making moves to build and improve the necessary infrastructure needed to encourage local and foreign investment in the sector.

What’s in the development pipeline for 2012?We have over 40 projects in the pipeline which will double the number of operational hotels in the next two years. Indonesia is our biggest growth market with over 15 current projects followed by China with eight projects. The current challenge in the market is capital and this has caused development hesitation in many areas. The global financial crisis has had a huge impact but capital flow is now growing, being largely led by China. This is resulting in a perfect growth opportunity for medium sized management companies like Swiss-Belhotel Inter-national.

Why will Australasia/South Pacific be a key region in 2012?Australasia will be a key area for Swiss-Belhotel International as we broaden our footprint. We are looking at a number of opportunities in Australia and New Zealand and have opened a development office in Auckland.

What are the major issues facing the hotel industry at present?The major issues are still the traditional challenges, however, they have intensified over the last two years. They are: labour costs and quality of labour; pressure on revenue levels and revenue yield; and pressure and demands of owner/investors and banking institutions.

How much of an impact is the growth of low-cost airlines having on your business?Low cost airlines are having a very positive impact by opening up mar-kets and building tourism numbers. This also increases the travel fre-quency of tourist and the business sector. The flow on effect will be that low cost airlines will put pressure on traditional carriers to hold prices.

Is the luxury leisure market well and truly back, or how far is there to go?Luxury leisure is always a special market and is always there however there is a shift of luxury business from European travellers to Asian travellers due to the GFC and also the shift of wealth. The other trend in the luxury market is that guests want something that enhances their stay but at a discounted cost. Due to the accessibility of research and social media sites such as Facebook, TripAdvisor and Twitter, hotels will have to constantly adapt to meet changing expectations.

What is your company’s X-factor in 2012? The X-Factor is the same X-Factor as always in the industry – look after the guest; love the guest; want your guest. Swiss-Belhotel Inter-national places huge emphasis on these elements as we strive for pas-sion and professionalism. This was reinforced by the hugely successful General Managers conference in Malaysia in December 2011. Almost 60 General Managers and Executives attended which was a record for a medium-sized international management group with almost 80 ho-tels and projects in 13 countries.


GLOBALLEADERS

Wyndham Hotel Group

What are your expectations for performance in 2012?My personal opinion, looking at the tourism and hospitality sectors in general, is that it may prove to be another difficult year particularly for resort destinations. The uncertainty around the European debt crisis has the potential to continue to impact not only the resorts sector but other markets such as the Corporate and MICE sectors. I believe we need to approach 2012 with caution. In saying that, at Wyndham we have been very fortunate since the Global Financial Crisis at the end of 2008 to have continued to grow year on year and that is certainly our aim for 2012.

Which are the hottest segments and markets to watch in Asia-Pacific?China continues its reputation as a market that offers strong potential to the inbound leisure sector. It is also a growth market from a des-tination perspective along with several other Asian destinations – in particular Bali, Vietnam and Thailand which continue to show strong growth. Outbound from Australia, the United States is continuing to be an attractive destination because of the strong Australian dollar. The ongoing strength of the Australian dollar however does cause us concern in terms of the domestic leisure market. The South Pacific is still performing strongly – in particular Fiji and we have a great deal of confidence in that market.

What’s in the development pipeline for 2012?We have recently announced the Stage 3 expansion of our World-Mark Resort Denarau Island, Fiji. The expansion project sees the con-struction of a new wing consisting of 63 apartments and a number of Presidential Villas and raises the bar to a new level in terms of quality inclusions and services provided. This construction project represents the largest tourism development currently underway in Fiji and at a cost of approximately FJD$50 million, demonstrates our ongoing con-fidence in the region. WorldMark Resort Denarau Island continues to run at occupancy levels of 95% and above annually. Other improve-ments in the Stage 3 expansion include redevelopment of the lobby arrival experience and construction of a new restaurant. We are also

aggressively focused on growing our franchise brands and manage-ment portfolios specifically under our Wyndham, Ramada and Days Inn brands in the South Pacific region.

Why will Australasia/South Pacific be a key region in 2012?There is no doubt that Australasia and the South Pacific continue to be key regions for us. We have produced some great results over the past years and we have proven the resilience of our vacation ownership business and mixed use hotel model. Wyndham Worldwide continues to see the Asia-Pacific region in its entirety as an expanding market for its growing portfolio.

What are the major issues facing the hotel industry at present?I believe the main issue the hotel industry is facing, which is beyond our control, is the current strength of the Australian dollar. Overseas travel is far more affordable for households these days which puts pressure on our traditional domestic holiday destinations plus the strength of the dollar also sees Australia as an expensive destination for inbound customers. I think China offers great opportunity for the inbound tourism sector and is definitely an area that we can look to capitalise on. However, I don’t believe that we are ready from both a language and standard of service perspective. There is a lot more work that is needed to be done to lift the customer service experience and product offering that is expected by Asian visitors that would make our industry ready to embrace this market. I also feel that the Federal Gov-ernment and Chinese Government needs to work to look at changing some of the visa requirements which I think could easily see a tripling of the amount of annual visitors to Australia from China.

How much of an impact is the growth of low-cost airlines having on your business?For our primary business – vacation ownership – it really hasn’t had a great effect. Vacation ownership occupancy rates across our portfolio continue to run in the high 80%. To some degree the low cost carriers that are coming in from international ports are bringing in a market that wasn’t previously there and is welcomed at this time when our tourism sector is down. They are therefore providing a much needed boost to the industry and destinations like the Gold Coast.

Is the luxury leisure market well and truly back, or how far is there to go?I believe that the top end of the market hasn’t been affected too much by the recent global financial issues. However, the next tier down that still aspires to holiday in luxury facilities has been affected by the strong currency. We are focussed on creating a segment within our resorts that cater to these different levels of luxury. For example in our Stage 3 Fiji resort redevelopment, once construction is complete in 2013, we will be offering 4-bedroom ocean front Presidential Villas with private plunge pools. These will offer an unparalleled level of lux-ury. We believe there is definitely a market there and have noticed in our other resorts that have similar products that those particular units run at extremely high occupancy compared to the rest of the resort.

What is your company’s X-factor in 2012?We have a great team. We are very excited about how we have grown and what we have achieved over the last two years in particular. We have continued to grow and strategically acquire assets. This in turn has provided stimulus for employees and internal excitement that con-tinues the impetus to strive for positive results.

BARRY ROBINSONCEO and Managing Director

Wyndham Vacation Resorts Asia-Pacific


TOURISMLEADERS

New Zealand Government

The Rt. Hon. JOHN KEYNew Zealand Prime MinisterNew Zealand Minister for Tourism

The uncertain global economic outlook affects tourism as much as any other industry. As a long-haul destination New Zealand suffers significantly when potential travellers decide to stay

home or go for a shorter, cheaper trip. The economic changes are causing changes in our markets. Our

traditional markets are declining while new markets, especially in Asia are opening up. This is a challenge but also a huge opportunity for the industry.

To boost numbers, Tourism New Zealand (TNZ) is focused on tai-loring messages to the interests and priorities of those groups already seriously considering New Zealand as a holiday destination. TNZ use highly targeted media to deliver the New Zealand 100% Pure cam-paign in a way that will encourage them to travel.

Part of TNZ’s strategy is also to use significant events, such as the Rugby World Cup and the world premiere of 'The Hobbit' in Welling-ton in December, as a way to encourage people to travel — we will be

working hard to remind all movie fans that New Zealand is the home of Middle Earth.

The growing size of outbound tourism from China and India offers a massive opportunity for New Zealand. For example the Chinese Na-tional Tourism Administration has said it expects this growth to reach 100 million trips by 2015. New Zealand has much to offer these mar-kets already – our scenery, food and wine and relaxation experiences are attractive to these markets so we need to continue to meet the different needs of these travellers.

There is not currently a direct flight between India and New Zea-land however further work is underway to encourage more convenient flight options through hubs such as Singapore, Malaysia and China.

So while the industry has faced many challenges over the past year, I remain confident that we are heading in the right direction and have many incredible opportunities just around the corner.

I wish you a very prosperous 2012.


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TOURISMLEADERS

ANDREW McEVOYManaging DirectorTourism Australia

What are the biggest issues facing the tourism industry at present?While there continues to be difficult economic circumstances and a high Australian dollar, these are things we can do nothing about. What we can do is be competitive in any circumstance. In struggling markets such as the UK, Europe and the Americas, Tourism Australia and our many partners will compete hard to hold or gain share of what remains a very important set of visitors – almost two million people spending more than $10 billion. In Asia and New Zealand, where economies are generally stronger, we will also fight to hold or gain share in better performing markets and this is where our growth come from – led by China, Indonesia, Malaysia and with the emergence of India. In all markets, we must sure the consumer is hearing us and that our offer is more competitive than the many other destinations vying for the business. In Australia, that means the industry must step up and provide world's best experiences with best possible service.

What are some of the initiatives in place to boost tourism num-bers in 2012?Tourism Australia will continue to vigorously promote Australia in the markets offering the best opportunities for growth. We remain com-mitted to our Tourism 2020 ambitions to grow overnight expenditure to as much as $140 billion by 2020 and this continues to underpin our marketing efforts globally. In building demand for our destination, we are working on the next phase of our 'There’s Nothing Like Australia' campaign to highlight world’s best in Australia. This involves new cre-ative work to build on the campaign that began in 2010. We also con-tinue to work hard on being at the forefront of digital marketing and advocacy, particularly through social media. Our Facebook fan num-bers are up over 2.1 million now and we have equally strong growth in forums such as Sino Weibu in China. And we are in a huddle with our State colleagues at the moment to see if we can be collectively better at marketing Australia by using resources more efficiently. This will help to ensure we continue to deliver compelling reasons why people should travel to and through our country.

What’s planned on the local front to stimulate further domes-tic travel?Tourism Australia has been taking a two-pronged approach to the domestic market. Through the 'There’s Nothing Like Australia' cam-paign we have been using 'grass roots' advocacy to motivate Austral-ians to holiday domestically and we will continue to run with this cam-paign over the coming year. 'The No Leave, No Life' campaign has also been running as we head in to the New Year to get Australians to seriously consider unlocking their annual leave entitlements to take a great Australian holiday.

Are airlines doing enough to stimulate international and domes-tic travel?We work very closely with a range of airline partners around the world to grow the tourism opportunities for Australia. At last count, we had 14 major airline partner agreements and their motives to work with us are driven to ensure profitable routes. Virgin's global alliances are opening up more opportunity for Australia while the Qantas group

and Jetstar in particular is also giving global travellers more options into Australia. And the Middle Eastern and Chinese carriers continue to grow rapidly. Watch also for more from low cost carriers such as Air Asia X, Scoot and the regional carrier Silk Air.

China and India. How can these markets be further captured over the next few years?Tourism Australia has developed a dedicated strategic plan for captur-ing the growth opportunities of China in 2012 and beyond. China is already our largest source market in terms of value, worth $3.6 bil-lion annually, and we have plans to grow this further. This year we are spending significant marketing dollars on promoting Australia to China, and we will continue this strong focus in partnership with the Australian industry, including key airlines, the Chinese travel trade and online distribution. We are also working on the development of a similar plan to manage and capture the growth potential of India and we look forward to sharing this with industry in 2012.

What other international markets will be the keys to success by 2015?China will continue to be a driving force for the growth of our industry along with India and other markets across Asia. However traditional markets like New Zealand, UK, and USA will also continue to play a role in our success by 2015. Watch out for the continued growth of Indonesia, the emergence of Brazil from a low base and similarly with Russia. Depending on Europe's economic situation, the working holiday visa and youth travel might be very strong for Australia again this year.

How much work needs to be done to reinvigorate the American market, or will the high dollar continue to be a significant burden?The US travel market continues to be impacted by their struggling do-mestic economy, which means people will naturally be less likely to travel. For those Americans who are continuing to travel to Australia the high value of the Australian dollar is reducing their spend when they are here. Long-term the US will continue to be a significant tour-ism market and we continue to focus our efforts on ensuring Australia remains a desirable place to visit.

What’s the x-factor in 2012 for travel? Is it social media or other marketing initiatives?I think the digital and social media space is perfect for the Austral-ian tourism industry and we can be smart and lead the way. Key will be how we use high impact advocacy — like that which comes from major stars and grass roots advocacy like Facebook and so on. Every operator needs a social media strategy and should have figured out whether or not you can tap into Asia.

Tourism Australia


The first hotel to sign with the network for the New Year is the Grand Mercure Central City Apartments Wellington (previous-ly Central City Hotel) in New Zealand. The 54-aparment hotel

offers stylish guest suites ranging from metro studios to one-bedroom interconnecting suites that include a kitchenette, with the top floor featuring stunning city or harbour views.

Antoinette Muollo-Aharoni, one of the owners of Prime Hotels Group, said she signed with Accor to gain access to the group’s ex-tensive sales and distribution support as well as corporate know-how.

“We see our team benefitting from being part of a privately owned New Zealand company but with access to a wealth of knowledge and the expertise of an established global network,” she said.

“Accor has an excellent portfolio and is a well respected company around the world and we feel that becoming part of Accor will enable wider contact with international guests who will appreciate the opportu-nity to stay in an apartment-style hotel right in the centre of Wellington.

“Accor has excellent, proven systems such as Guest Book to ensure guest satisfaction is kept to a premium, and access to the best process-es from an operations point of view so we are already learning a lot.

“The best thing is that we have access to the team at Accor with all their ideas and experience and that despite the size of Accor there is a real family team feel.”

A modern 16-level building, the Grand Mercure Wellington Cen-tral City has a small footprint, enabling a boutique feel and boasts great views from the top floors.

The signing comes at an exciting time for the Grand Mercure brand as it prepares to expand in China and also as several properties un-dergo refurbishment projects.

“With China set to become Australia’s number one source market for inbound visitors, any expansion of the brand in China can only be a good thing for owners of a Grand Mercure hotel,” said Dino Mez-zatesta, Accor’s General Manager Franchise Hotels.

“The Grand Mercure brand is well established in Australia and has become synonymous with the best in boutique-style self-contained accommodation in this country but the brand is also present in New Zealand, Singapore, Beijing, Bangalore, Bali and Bangkok so our fran-chisees benefit from excellent global brand recognition," he said.

“We expect that much of the growth in our franchising network will come from apartment-style hotels this year and the Grand Mercure brand will play a key role in this.”

In keeping with Accor’s mission to upgrade its hotel network, the Central City will undergo a cosmetic renovation before launching un-der the Grand Mercure name, with all rooms and public areas being refurbished with new carpets, paint, new vanities in the bathrooms, and two floors converted to Executive Suite-style rooms.

Another hotel that has just undergone a refurbishment is the Grand Mercure Flinders Lane in Melbourne, which recently unveiled a multi-million dollar renovation that has brought the historic hotel back to its glamorous past as a design house.

The result has turned this 'all suite' apartment hotel into a market-leading boutique product infusing modern design philosophies with the architectural and historical heritage of the building.

The beauty of an Accor franchise relationship is that each prop-erty retains management of their hotel while gaining access to Accor’s established global distribution and sales network, a 24-hour central reservations system, and Accor’s global website which attractions mil-lions of visitors per month. Franchisees also benefit from Accor’s global loyalty program which currently counts more than 8 million members.

Mezzatesta, said that Accor’s branding gives instant recognition for travel agents on the GDS as well as providing a wealth of expertise to independent hoteliers.

Accor has a dedicated website for Grand Mercure franchisees at www.grandmercureapartments.com.au that features comprehensive in-formation, floor plans and a booking engine for the brand. For more information on joining Accor’s franchise network go to www.accorfranchise.com.au or phone Dino Mezzatesta on +61 (0) 2 9280 9832 or email [email protected]

AN ACCOR HOtels PROMOtION Accor frAnchising

ACCOR'S GRAND MERCURE EXPANDS BRAND FOOTPRINTACCOR CONTINuES ITS DyNAMIC EXPANSION WITH A NEW FOCuS ON GROWING THE GRAND MERCuRE APARTMENT BRAND IN 2012.

Grand Mercure Flinders Lane, Melbourne


TOURISMLEADERS

New Zealand Hotel Council

Accommodation Association of

Australia

After an extraordinary 2011 – natural disasters, prolonged economic downturn and Rugby World Cup (RWC) – hoteliers are looking to 2012 with cautious optimism and the hope of some normality.

With fewer bookings from traditional markets and changes to visitor booking patterns, many in the tourism and hotel sector are concerned at the thought of another two years of difficult trading conditions.

Economic forecasters however are predicting the economy is likely to grow about 2- to 2.5-% a year for the next two years, but that is entirely dependent on the world markets particularly our nearest trad-ing partners.

However, unlike 2011, the industry won’t have to contend with the distortion and displacement of traditional visitors as a result of a major international sporting event. During RWC the sector saw a significant drop in corporate, conference and normal group wholesale business. Whether 2012 visitor numbers are affected by RWC has yet to be de-termined, but everyone is working together to capitalise on the legacy opportunities from what was a very successful tournament.

Average visitor length of stay and spend in 2012 are expected to remain below pre-global financial crisis levels. This is partly due to an increased number of lower spend (or price conscious) visitors from Australia, our key visitor market, and also to the welcome introduction of more low cost airlines into the market in 2011. The strong Austral-ian dollar continues to make other holiday destinations very affordable for Australian travellers and has also made New Zealand a viable op-tion for Australians who would normally holiday at home. As a result, the length of stay for the Australian market is likely to remain in the 11 day range as people come for shorter periods of time and a more discerning as to where they spend their holiday dollars.

The introduction of low cost carrier Air Asia X into Christchurch from Kuala Lumpur in early 2011 did see a reduction in the length of stay for Malaysian visitors (15 days, down from 18), but has sig-nificantly increased the number of Malaysian FIT visitors travelling through the South Island. These visitors have been a welcome sight given the disruption in visitor arrivals caused by the Christchurch and Canterbury earthquakes. There was some initial concern that low-cost carriers would deliver low-value visitors, but this hasn’t been the case and the impact of these airlines has been very positive.

We expect the high Kiwi dollar may lead to reduced length of stay for visitors in 2012 and a reduced average visitor spend. The high dol-lar might not stop visitors coming to New Zealand, but it’s likely to affect how much they spend when they get here.

Visitor growth in 2012 is likely to come out of China, now New Zealand’s fourth biggest visitor market, and from Malaysia. A current hot topic is whether we are doing enough to meet the expectations of visitors from these new markets. New Zealand is very good at looking after our traditional western visitor markets but given the decline in arrivals from the UK and USA it’s important we doing everything we can to maximise the opportunities the new Asian markets hold. That will only be achieved if we deliver a quality visitor experience. This will become increasingly important as the upwardly mobile, well educated and wealthy Chinese FIT visitors begin to visit our shores.

The return of the conference and incentive market in 2011 should continue in 2012, buoyed by the combined marketing efforts of Con-ventions and Inventives New Zealand and Tourism New Zealand in the important Australian market.

Domestic tourism is often cited as a 'captive market', however New Zealanders have increasingly opted to holiday abroad. On the other hand, economists predict that Kiwi’s are likely to continue to spend cautiously in 2012, which may have a positive impact on domestic tourism. That coupled with a hoped for strong ski season and school holidays returning to their usual time slots (post-RWC) should also help drive domestic business.

The top priority for a successful 2012 in the South Island is the reopening of more Christchurch visitor infrastructure. Hotels within the Christchurch CBD remain closed; however The Marque (soon to be renamed the Rendezvous) is likely to reopen in March adding 170 rooms to the 840 that are currently operational. A significant issue re-sulting from the Christchurch earthquakes is the big increase in hotel insurance premiums across the country– up to 300%. Hoteliers will be grappling with how to deal with this in 2012.

2012 will be an interesting year for New Zealand hotels. Maintain-ing core business will be very important as will grasping the opportu-nities that new Asian markets present. Work to restore Christchurch will be ongoing and not resolved quickly. Following the earthquakes, our industry has worked closely to pool resources and knowledge and we will continue to do so over the next few years as the city re-opens to visitors.

JENNIE LANGLEYIndependent ChairNew Zealand Hotel Council


TOURISMLEADERS

Accommodation Association of

Australia

Australia’s accommodation industry can rightfully be optimistic about 2012, despite the possibility of another European finan-cial crisis and the continued high value of the Australian dollar

in comparison to the US currency.Certainly it would be preferable if it was an easier to attract visitors to

Australia from these key markets, but, as the most recent inbound visi-tor numbers attest, the number of tourists from the emerging markets of China, India and Indonesia are growing exponentially and represent significant opportunities for new business and consolidating RevPAR.

Notwithstanding the publicly stated desire of some governments within Australia to tighten spending, corporate travel is expected to con-tinue to be strong in 2012. The resources sector continues to boom – the New Year has started with an announcement about another huge LNG project, off Darwin. Business travel as a direct result of the mining boom will translate to continued strong accommodation business in parts of WA and Queensland, further fuelling Australia’s two-speed economy.

With little change in overall room inventory predicted, room rates in major capital cities should rise, particularly on Monday-Thursday nights. The ongoing challenge is for these properties to attract leisure travellers on the other three nights of the week, highlighting the impor-tance of domestic tourism.

Standards of accommodation businesses in regional and country ar-eas are continually improving, as is RevPAR in many of these areas. It’s significant that major brands have expanded their footprint into regional areas – for example, Rydges has a hotel in Albury (NSW), while Quest has a property in Echuca (Vic) – and long-standing independent opera-tors in these regions have lifted the bar to compete.

More broadly, in 2011, the Accommodation Association strongly ad-vocated for greater air access to Tasmania. In the June quarter last year, occupancy in Tasmania was 52.%, the lowest of any state or territory and our members – who represent more than 1000 rooms in the state – were suffering. The Association held meetings or made contact with almost all key stakeholders, including members of Parliament and it’s no coin-cidence that announcements about more flights followed.

RICHARD MUNROChief Executive OfficerAccommodation Association of Australia

Operators are always cautious about more accommodation rooms coming online in the market, but our Association has taken the position that as long as additional inventory is not overly detrimental to exist-ing operators, then it should be embraced. The Perth market is a stark example of the need for more hotels/serviced apartments. The WA Gov-ernment deserves credit for recognising this and putting in place a string of sensible incentives to stimulate activity.

At the federal level, the focus in the early part of 2012 will be on the Gillard Government’s Review of the Fair Work Act. Different segments within tourism have publicly highlighted workplace relations problems they have and in some cases, these are legitimate concerns, but the po-litical pain caused by WorkChoices is fresh in the minds of both major parties in Canberra, so the accommodation industry shouldn’t expect any significant changes. Operators seeking relief from paying penalty rates will not be encouraged by this, however it also means that any push by unions for the return of pattern bargaining is also likely to be fruitless.

Elsewhere in the political spectrum, a state election will soon be held in Queensland where the Coalition (LNP) has been polling strongly, while later in 2012, elections are also due in both the ACT and NT.

Within our industry, much interest this year will centre on the out-comes of Accor’s acquisition of Mirvac, which will make Accor the larg-est individual operator in the Australian accommodation industry.

At the Accommodation Association, we are continuing to expand our footprint in the industry and our focus on advocacy on issues that only impact on operators of accommodation businesses means mem-bers of our association receive tremendous benefits.


TOURISMLEADERS

What are your expectations for performance in 2012?Continued strong corporate sector growth in major capital cities fuelled by the resources boom is likely to occur alongside static performance in regional areas with the exception of those regions directly impacted by mining. Outbound growth is likely to continue and as a result do-mestic growth will likely remain flat while traditional inbound source markets languish with struggling economies. We can expect further inbound growth from emerging, particularly Asian, markets. These markets require both investment and a new approach. We must adjust our thinking and our product and service offering to meet their needs. Tourism Australia (TA) has a sound strategy and brand platform and enjoys strong industry support however, it is critical that Governments recognise the direct relationship between promotional investment, growth in visitor expenditure (and jobs) and therefore tax revenues. Funding for TA and State Tourism agencies must be increased and invested wisely to ensure growth from our most profitable and most available markets where we are facing stiff and growing competition. Look out for further industry consolidation at all levels of accommoda-tion as brands further prove their performance and returns.

Which are the hottest segments and markets to watch?The corporate segment continues to do well and this should improve further. Luxury and boutique hotels are also generating strong occu-pancy and there seems to be a growing demand for this style of accom-modation and associated experiences. Watch out for new ‘design’ led brands like Rydges’ QT and for the major chains to launch their new boutique and lifestyle brands in Australia. Markets to watch include China (obviously) and we need to continue to nurture New Zealand. There maybe some growth from the USA as their economy starts to recover and airline competition on the route increases. Importantly,

RODGER POWELLManaging DirectorTourism Accommodation Australia

Tourism Accommodation Australia

within Australia the experience seeker segment will grow and we can anticipate some growth in the meetings market. Investment in ma-jor hotel refurbishments and the launch of a number of new proper-ties, particularly in regional areas, will fuel market interest. Cities and States are likely to provide incentives for new hotel construction in key hotspots – hopefully in a sustainable way this time.

How important is a lift in domestic tourism?Offshore holidays will continue to remain attractive and Australians will continue to travel overseas for some time to come. To achieve a lift in domestic tourism (70% of the market) the perception of quality and value (so well held by overseas visitors) must be re-invigorated in the minds of Australian consumers. Re-investment in product in many regional areas is needed and in some areas a fresh and contempo-rary approach to service is required if we are to re-establish Australian holidays as a competitive option in the minds of Australians. The com-mencement of the carbon tax in July this year will add a further incre-ment to the cost-differential between a holiday overseas and a holiday within Australia, with hotels likely to also face significant hikes in the prices of utilities and other goods resulting in rate increases and a drop in price competitiveness.

What are the major issues facing the hotel industry at present?The availability of labour is a significant and increasing challenge for the industry. Stiff competition for labour, in particular from the FIFO mining sector, and the unsociable hours worked in the industry re-sult in Australians not applying for hospitality jobs. A new source of short term labour must be found and the Government needs to con-sider a temporary workers visa that gives Australian hoteliers access to offshore labour (not cheap labour). This is not a skills or salary issue but an availability of suitable labour issue. Other areas of immigration could be relaxed in order to provide more labour for hotels, such as extending the age and length of service for working holiday maker visas. Workplace flexibility is another major issue. The new award con-ditions have resulted in hoteliers employing less people and, in some areas, providing less-than-ideal guest service options to ensure they can continue to trade profitably. More flexibility is required in order to match the needs of employees and employers. Hotel performance is still not strong enough to support the construction of new hotels. While there are opportunities to increase yield, tax incentives to en-courage investment and reinvestment are needed. Ongoing economic uncertainty, particularly in international markets will continue to be a challenge for the industry in the year ahead.

How much of an impact is the growth of low-cost airlines having on the industry?Low cost airlines are now an important part of the aviation mix and have clearly attracted new markets, opened new destinations and increased consumer choice. However, the two mainstream carriers account for the majority of the domestic capacity and their ability to remain competitive is paramount. Low-cost carriers are an essential element in opening up new short haul inbound markets where Aus-tralia has a lot of growth potential. Getting the mix of low cost and traditional model capacity for each destination is the challenge.

Is the luxury leisure market well and truly back, or how far is there to go?Significant luxury and boutique investments in refurbishments by the major hotel chains point to a resurgence in the five and four star sec-tors. Strong performance by the likes of Southern Ocean Lodge, Saf-fire, the Louise, Hayman, qualia and Crown Metropol point to grow-ing demand for luxury and boutique. The confidence of The Star and Crown in building world leading luxury properties in Sydney and Mel-bourne also indicates great potential. The luxury market is well on the way to recovery but a long way from reaching its potential.


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LEADINGSUPPLIERS

What are the major issues facing the hotel industry at present?From a revenue point of view, the value of the Australian dollar and the developing financial crisis in Europe will continue to impact in-bound travellers, other international factors such as China will also have an impact. However, with a significant portion of our hotels reli-ant on domestic corporate business, the short term immediate threats are more likely to be cost related. In this area, the key issues are related to labour management including recruitment, labour flexibility, work-ers compensation, and industrial relations.

Why would hotel chains say they worked with you over the last 12 months?Primarily to mitigate risk and to ensure quality and consistency. Safe-guarding any business from the primary risks facing Australian tourism industry requires businesses to ensure the operating model minimizes risk, but invites flexibility and creativity. AHS offers a logical business model that protects hotels while providing additional resources and experience to enable our partners to reach their goals. The majority of our relationships are long term and our hotels enjoy the trust and continuity that is created through extended partnerships. We provide a flexible source of labour through high occupancy periods as well as quiet times, while providing a large support infrastructure consisting of experienced hoteliers.

How sustainable is your company?AHS is closely aligned with all of our hotel partners' environmental systems and initiatives and we support and participate in them ac-cordingly. Whether they are recycling programs, waste management procedures and policies, water usage or laundry programs, we work hand in hand with our hotels to promote and implement sustainable solutions. From a community point of view, AHS is heavily involved with our charity of choice, National Breast Cancer Foundation, and we participate in and conduct various fundraisers and events over the year in support of this worthwhile cause.

What is your company’s X-factor in 2012?AHS believes that every business strives to find the perfect business model to protect their business from risks, to return the best possible outcome to their owners, while delivering a high quality product to guests and maintaining a motivated and happy workforce. The out-sourcing of housekeeping to AHS delivers all of these KPIs. AHS as-sumes responsibility for the entire workforce. Financial savings are achieved and guaranteed with fixed price per room. Quality bench-marks are measured and managed via internal control systems. Staff engagement is the backbone of our business and AHS are regarded as the employer of choice in our industry. The strength of this value prop-osition is why hotels have embraced outsourcing in recent years and turned towards AHS to operate their housekeeping departments.

AHS Hospitality

MICHELLE LOADERChief Executive OfficerAHS Hospitality

How was business in 2011 and what are you expecting for 2012?For an outsourcing business such as ours, we look at two key factors – the health of the tourism industry in Australia and the growth of the outsourcing sector within the hospitality industry. In 2011, AHS saw positive trends in both of these areas. Hotel occupancies continued to improve in most of the major Australian markets with a few of the key areas such as Brisbane and Perth remaining very strong. In regards to the provision of outsourcing services, all the major chains operating within Australia have now incorporated the concept into their current operating models at some level. Some chains have gone almost ex-clusively towards the outsourcing of labour in their operations, while other chains are steadily increasing their use of this model. Moving forward into 2012, AHS sees the occupancy trends remaining steady with relatively low new supply coming on line. AHS also believes that the popular trend towards outsourcing will continue due to the in-creasingly difficult environment and challenges regarding the provi-sion of labour in Australia.


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How was business in 2011 and what are you expecting for 2012?2011 marked the 10th anniversary for Yellow Tail, so it was an impor-tant year for the brand and our business. To our delight, we continue to meet the consumer’s demand for an affordable wine that delivers on quality year-on-year. Support for Yellow Tail continues to grow in on-premise establishments across Australia. November saw our biggest month for Yellow Tail sales in Australia ever.We introduced new varieties this year, including Yellow Tail Tree-Free (unoaked) Chardonnay, Pink Moscato and Bubbles Piccolos. Our Moscato and Bubbles products are performing particularly well, especially amongst those who might be relatively new to drinking wine, or for those who enjoy the fruity flavours and slightly fizzy style. The marketing of Yellow Tail evolved significantly in 2011 as we keep up with the way people socialise and interact with alcohol brands. We

invested in the digital space and developed a new website containing a range of product and brand information as well as fun and interactive social applications such as party planners and the ability to comment on favourite wines. We also expanded our presence on Facebook by building one global page for our 290,000-plus fans. Rather than limit-ing our interaction with our fans to the Facebook wall, we have created tabs for country-specific news and promotions, and general product information. To celebrate our 10th birthday with our fans, we built a party food cookbook application that enables users to share, browse and ‘like’ party food and wine cocktail recipes. They can also make their own digital cookbook for their own party. Our mission here is to make Yellow Tail accessible and enjoyable beyond the wine glass itself. 2012 is set to be an exciting year for Casella. This year, while we contin-ue to grow Yellow Tail, we will also expand and diversify into the beer category with the introduction of a new premium label. We have two expert brewers on board, Andy Mitchell from SABMiller, Mitchell’s Brewery and, most recently, Birkenhead Brewery, and Anthony Clem from XXXX Brewery, South Australian Brewery and Knappstein Beer. Both have perfected a unique flavour profile and our branding experts have created a modern and appealing label for beer lovers. We under-stand how passionate the beer-drinking public can be and we’ve taken great care to produce a beer that warrants their enthusiasm and ap-proval. Our beer offering will be available nationally in early 2012.

How was business in 2011 and what are you expecting for 2012? Last year Star Ratings underwent a major overhaul resulting with the implementation of a new Scheme. The changes to the Scheme will form part of our strategy to re-position Stars within the market place and al-low consumers to use Stars as a generic reference point. Our challenge in 2012 will be to re-establish Stars as the independent champion of accommodation standards and get both accommodation proper-ties and consumers to see Stars as the gateway to decision making.

What have been some of your hottest product launches and what’s coming up? Implementation of the new criteria across the six accommodation cat-egories has been welcomed by industry and this will partner a new Stars branding strategy to be activated in early 2012, positioning Stars as the ‘champion of accommodation standards’.

LEADINGSUPPLIERS

Casella Wines

AAA Tourism

JOHN CASELLAManaging DirectorCasella Wines

PETER BLACKWELLCEOClub Tourism

What are the major issues facing the hotel industry at present? The need for more heads on pillows. We need to see a continued in-crease in investment across all accommodation sectors to meet con-sumer expectations, particularly the lucrative and growing internation-al markets across Asia. Investment in regional areas is paramount to entice travellers to venture beyond our cities and see the real Australia.

Why would hotel chains say they worked with you over the last 12 months? The new Stars criteria have been endorsed by industry leaders via industry advisory panels comprising representatives of major brands such as Accor, IHG, Choice, Outrigger, Mantra, Toga Hospitality, Best Western, the Oaks Group and Stayz, together with independent op-erators and peak industry bodies such as Tourism Accommodation Australia, Accommodation Association of Australia and Hosted Ac-commodation Australia. The calibre of the industry advisory panels we engaged to help review and establish the new assessment criteria was a huge factor in the success of our new Scheme launch and we look forward to continuing these strong working relationships in 2012.

What is your company’s X-factor in 2012?Representing Australia’s Auto Clubs, Star Ratings and managing com-pany Club Tourism enjoys unparalleled access to more than 7.1 million members – a third of Australia’s population.


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LEADINGSUPPLIERS

How was business in 2011 and what are you expecting for 2012?Our business growth over 2011 has been our greatest yet. Check-in has enjoyed increased market share during 2011 and we expect to con-tinue along this path in 2012 with the launch of international product on the site and continued development. The year has started well with constant, positive demand and we look forward to the next 12 months.

What have been some of your hottest product launches and what’s coming up?Over the past 18 months, Check-in has launched some great new products for our accommodation suppliers to utilise including:• ‘Free nights’ to allow properties to utilise stay/pay deals without hav-

ing to pro-rata their rates;• Advanced purchase rates; • Room specific images and increased image capability;• ‘Quick pay’ upload system on our extranet to allow payment within

seven working days from Check-out; and• ‘Extras’ where suppliers can set-up things such as breakfast, internet,

parking, cot hire, tours, late check-out and so on that the customer can add on to their reservation at the time of booking their accom-modation through Check-in.

Coming up we are most excited about our launch into the interna-tional market and the opportunities it will bring.

What are the major issues facing the hotel industry at present?The Australian Hotel Industry has definitely seen a drop in demand over the past few years across the board due to numerous reasons.

Most recently, hotels have been greatly affected by the strength of the Australian Dollar and the shift of previous domestic customers towards holidaying offshore. Lead-time has decreased significantly across many regions especially those geared towards the leisure mar-ket making it very difficult to manage pricing, keep average daily rates up and make long-term strategies.

Why would hotel chains say they worked with you over the last 12 months?The hotel chains that we have had the pleasure of working closely with over the last year are enjoying increased booking volume and revenue from Check-in, in addition to constant, free advertising which is the driving factor for their continued support of Check-in. Feedback most often received is how pleased chains and individual properties are with our Business Development Managers who are highly experienced and manage their accounts extremely promptly with honestly, integrity and respect at all times; we really feel our people and their focus on quality are the most important factor in keeping our valued Chains happy and I would say they are one of the main reasons (in addition to booking volume) that chains worked with us not just over the last 12 months but in all previous years.

What is your company’s X-factor in 2012?Our X-factor is our ability to continuously send our suppliers a consist-ent stream of year-round bookings at realistic and sustainable rates without requiring exclusive promotions.

Check-in.com.au

KATE ROBINSONGeneral Manager Check-in.com.au


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LEADINGSUPPLIERS

TAS CHRONISManaging DirectorDouwe Egberts Coffee Systems

How was business in 2011 and what are you expecting for 2012?Business is always chal-lenging, which is what makes it so rewarding. 2011 marked a very mem-

orable year for Concept Amenities. In addition to strong growth in es-tablished markets, such as Australia, North America, Middle East and Europe, we also opened challenging new markets in Africa and Asia. Where clients were impacted by the tough global financial climate we have been able to offer cost-cutting alternatives and continue to pro-vide our premium brands, as well as launch several major retail brands into our product portfolio. Most importantly, we embarked on a ma-jor rebranding project of our own, resulting in a completely new look and feel for the Concept identity. Not only have we evolved signifi-cantly as a business in the last 30 years, we are also very different from the other businesses within this specialised field, and we now have a Concept identity which helps communicate that to our own team, and the industry globally. There is definitely a degree of optimism coming from North America and Asia in terms of market improvement, albeit

somewhat marginal for 2012 while optimistically anticipating a major resurgence looking towards 2015.

What have been some of your hottest product launches and what’s coming up?We have partnered with Jean-Michel Cousteau, a world leading am-bassador of the environment, to create a luxurious collection of biode-gradable guest amenities containing 100% certified organic seaweed extract. Also, Linden Leaves, an exceptional range that draws on the benefits of essential oils and natural moisturizers unique to the New Zealand heritage. As well as, Australian Organics, plant-based, natu-ral hair, body and skin care products with a 25-plus year history in Australia. This spring we’ll also release a new MOR Cosmetics range, Emporium, a gorgeous collection of bath and body care and true ex-tension of the retail brand.

What is your company’s X-factor in 2012?We are sensologists-masters at creating products that stir all the sens-es of our clients’ guests. We are devoted to unlocking every layer of sensory stimulation possible, to create truly memorable and outstand-ing guest experiences a true sensory indulgence.

How was business in 2011? And what are you expecting for 2012? 2011 was a tough year for most businesses. Our regional economy has not rebounded 'enough' to take us back to local 2008/9 trading. Also mother nature was not too kind last year in our region with devas-tating floods in Australia and ongoing earthquakes in New Zealand. In the coffee world we are seeing a less volatile commodity market; however costs are still running at highs we have not seen in many years. I believe, successful businesses have adopted a more creative, innovative and nimble approach to 'doing' business and will continue to grow throughout 2012, even with the ongoing global economic un-certainty fuelled now by the European Union.

What have been some of your hottest product launches and what’s coming up?2011 was full of exciting product launches including the new Cafitesse Excellence coffee brewer. It's state of the art! Since its launch in Au-gust, we have received feedback on its superb design, its user friendli-ness and its efficiency to produce high volume quality coffees. Most customers use it as a coffee solution for buffet breakfasts, conferencing and all other high volume occasions. A new coffee blend - Superior Dark Excellence - was developed to complement this machine. This blend has been created from 100% dark roasted Arabica beans giving a very deep and particularly full character and a powerful aroma. For the Chocolate lovers we launched the new Piazza D’Oro Hot Choco-

late. This has proven to be a popu-lar product for hotels who want to serve delicious hot chocolates.

Why would hotel chains say they worked with you over the last 12 months? We are particularly strong in the hotel segment as a preferred coffee and tea partner to most Hotel brands in the Australia-New Zealand region. We have the reach and network to service all our clients directly, we provide branded solu-tions as well as tailored solutions and continue to invest in our part-ners as they grow their reach and market share. Our philosophy is “we take care of coffee now and tomorrow”.

What is your company’s X-factor in 2012?2012 is a very exciting year for Douwe Egberts. It’s the year we separate from Sara Lee International and morph back into a purely Coffee and Tea multinational business. This separation allows us to focus purely on what we do best and have done so since 1753… a total solution provider for branded Coffees and Teas. 2012 is a year of change with plenty of exciting news including product development, new equip-ment, new concepts and more acquisitions. We are taking coffee and tea to an exciting new level.

Concept Amenities

Douwe Egberts Coffee Systems

MICHAEL MATULICKChief Executive OfficerConcept Amenities


LEADINGSUPPLIERS

How was business in 2011 and what are you expecting for 2012? 2011 was special for Dallen as we expanded our reach into the global market in some very significant ways. Early in 2011, Dallen was select-ed from a highly competitive group of international uniform designers, to create all the new looks for the massive Sands Cotai Central project. Rolling out from this coming April, around 11,000 staff will be wear-ing uniforms designed by Dallen across three hotels (Conrad Macau, Holiday Inn Macau and Sheraton Macao Hotel — the largest Sheraton in the world at 4000 rooms), as well as two distinctly themed gam-ing floors, banquet facilities and restaurants. Even before the property opens, our involvement with this project has already sparked many new enquiries from that region.

Over in the US, clients who were hesitant to invest in new uniforms over the last couple of years are showing a renewed interest. Following the success of our work with projects such as The Cosmopolitan and Aria, Dallen’s fresh approach to uniforms has placed us firmly on the Las Vegas radar. Faced with more stiff competition, the Dallen team’s design skills impressed again and succeeded in landing a high pro-file contract with the Venetian Las Vegas to redesign uniforms for the gaming floor, cocktail waitresses and bar staff.Closer to home our projects include a unique 'East Meets West' design for Pan Pacific in Perth, contemporary updates for Jupiter’s Towns-ville and Gold Coast and assisting Accor with maintaining their global standard across their premium Sofitel and Pullman brands. Mid year, we came up with a sexy new look for Rock Lily at The Star and intro-duced an exciting new range for the Brisbane Convention Centre. In December Dallen launched a progressive new suite of uniforms for Crown Towers to coincide with the stunning transformation of the lobby and guest rooms. The Crown Towers brand is always about the highest standard of excellence The impeccably detailed uniforms we

have created for them will withstand the close scrutiny of their most discerning clientele. What have been some of your hottest product launches and what's coming up?Dallen continues to concentrate on unique custom fabrication and in-novation. Our styling focus remains close to what would be considered a retail fashion product. Something that looks less like a traditional uniform. More and more clients ask us for a look that both keeps pace with current fashion trends but will still go the distance in the laundry. 2012 will see some radical new product from Dallen which will change the way we think about uniforms. Why would hotel chains say they worked with you over the last 12 months?Dallen’s versatility remains unmatched in the market. Hotel clients can’t always wait several months for an off-shore program to arrive so our unique hybrid solution suits the Australian market perfectly. Our local manufacturing facilities can handle anything from a single, cus-tom fitted, tailored doorman’s coat to larger scale production of several thousand pieces. In addition to this, we have increased our off shore capabilities and shortened lead times on imported garments. Several of our larger clients have already taken advantage of the savings this can represent. There is no question that in a competitive accommoda-tion market, hotels need to find a way to get noticed. A stylish new uniform is an investment that pays off in two ways. Not only will the staff look great, but when they feel great in what they are wearing, it can do wonders for their self esteem. That translates into a more posi-tive guest experience.

Dallen

PAUL FITZPATRICKChief Executive OfficerDallen


LEADINGSUPPLIERS

Designing hotel fabrics with flair and developing exciting new looks for hotel bed covering throughout 2011 was always going to be a big ask when you were continually faced with

negative media reports on how the high Aussie Dollar and the con-tinuing general world financial crisis was affecting tourism including export trade in this country and almost everything else except the mining sector.

As I had indicated in the 2011 HM magazine Industry Leaders Fo-rum, our emphasis on national advertising was always going to be re-igniting the ‘Made in Australia’ factor to this industry, not just to hotel management but also to the commercial designers and FF&E people employed for both refurbishment and new hotel developments. Many of these people were previously unaware of the high standard in spe-cialist commercial textiles now available in Australia. Our promotion of these Australian produced fabrics and finished bedcovering prod-ucts was not to win business by the sympathy vote, rather to politely wake up this industry by example and their understanding that all of the world class style, quality and back up guarantees they were seek-ing are well within their budget, and is now right at their doorstep. Along with our company’s continued success in installing this coun-try’s leading feather bed topper The Cloud into many of Australia’s premier hotels, this emphasis on promoting our Australian made products, proved to be the correct path for HotelHome in 2011.

In 2012, HotelHome will drive their Made in Australia furnish-ing textiles even further, by promoting and releasing striking colour palettes and textures that will stir up even the most cutting edge de-signers and progressive hotel managers. They can confidently specify HotelHome fabrics or made up products, knowing they meet all of

HotelHome Australia

GARY COMAN CEO

HotelHome Australia

the specifications in FR, rub tests, colourfastness and laundering re-quired for this industry, not to mention the look and quality as seen in the world’s best hotels. Along with this Australian brand awareness programme of exciting new products and the strong alliances we have developed in recent years with the major FF&E operators, commer-cial designers and direct hotel management, we are confident we can achieve a good result for 2012.

In the fashion side of the furnishing industry, it has always been recognised that people often adjust their colour preferences to suit the economic climate. When business is soft, the safe naturals and earthy tones generally come to the fore. On the other hand when business is booming, the risk of installing a bright and snazzy concept is all of a sudden, not so risky. 2011 saw some incredibly bold moves in hotel interior design, where there must have been a lot of confidence, if the old rule of thumb still applies. HotelHome was involved with many smart and very attractive refurbishments, however the one property that did stand out for transforming an older late 60s hotel in to a very modern and striking concept is the Mercure Treasury Gardens in Mel-bourne. In the early 1970s, I was a regular for many years at this same property under another brand and I do know firsthand, the incredible transformation that took place with colours used and the overall de-sign applied.

Whilst the general mood of the business world was sombre in many areas, it was once again very encouraging to hear from leading hoteliers through the HM forums and interviews, how they all had dif-fering plans to shape their businesses to meet the changing times. In almost every case it was positive news and it is another reason why our company is proud to be aligned with this exciting industry.


LEADINGSUPPLIERS

How was business in 2011 and what are you expecting for 2012?2011 was another tough year for the tourism industry, not least be-cause of the devastating weather events we experienced early in the year. While this has had an impact on employment and therefore on super, we’ve continued to grow our business through various diversi-fication strategies and through the prudent management of the fund’s investments.We also saw market volatility continue throughout 2011, largely due to the ongoing debt crisis in Europe and fears that a deep European recession could drag down the rest of the world. As governments and central banks work together to find a solution to Europe’s growing problems, it’s likely we’ll see this volatility continue in the near future. If you’re concerned about how market volatility is impacting your su-per, it’s important to remember that super is a long-term investment. If you’re a long-term investor (for example those who won’t be retiring for five years or more), investing in growth investments such as shares or property may be essential to achieve your long-term goals. How-ever, you must be willing to accept short-term losses for longer term gains. At Intrust Super, we remain confident in our investment strat-egy and risk management processes. Our balanced investment option is highly diversified with a healthy exposure to bonds and cash, which has helped to minimise impacts on our members’ investments. Over the medium and long term (three-, five-, seven- and ten-years), we’ve delivered strong returns for our members.

What have been some of your hottest product launches?At Intrust Super, we always look for ways to make life easier for our employers and members. Our team’s drive to achieve this is strong and hence good ideas tend to flow. This has been evidenced by our nomination two years in a row for the SuperRatings ‘Best New In-novation’ award. In 2010, our not-for-profit financial planning busi-ness (Intrust360°) was a finalist. This year, the team’s hard work took out the top award for our Online Super Transfer Form, which allows our members to find their lost super and then consolidate all of their accounts in one easy step. This cements the fund’s reputation as one of Australia’s most innovative and progressive super funds. This hard work also ensured we were a finalist for this year’s SuperRatings ‘Su-per of the Year’ award, which recognises us as one of the top 10 super funds in the country.

Why would hotel chains say they worked with you over the last 12 months?Having worked with employers in the hospitality and tourism indus-tries for more than 20 years, we understand their needs and have de-signed our products to accommodate all employees, whether they’re

full-time, part-time or casual. For example, we’re one of the only funds that offers income protection for casuals (through our PayGuard prod-uct), which covers up to 90% of their income for up to two years if they're unable to work due to injury or illness. We also continue to pay 10% of their PayGuard benefit into their Intrust Super account. As a Platinum rated 100% Industry Super Fund, we’re committed to put-ting more money in our members’ pockets. We’re also committed to providing our employers with simple, hassle-free super solutions, and offer a range of employer benefits including:• Less paperwork. Through our online EmployerAccess, our employ-

ers can easily and efficiently manage all aspects of their superannua-tion obligations at a time that suits them;

• Flexible contribution payment options. We provide four contribution payments methods, so employers can choose the option that best suits their cashflow and payment requirements;

• Dedicated support. Each of our employers has a dedicated Client Service Manager who provides ongoing support and ensures they have all the information and training they need to fulfil their super-annuation obligations;

• Regular updates. Our employers receive regular updates via our em-ployer newsletter, SuperMatters, as well as a range of brochures and fact sheets to help answer their employees’ questions about super.

At Intrust Super, we take the hassle out of paying super, leaving our em-ployers more time for their most important job – running their business.

Intrust Super BRENDAN O’FARRELLChief Executive OfficerIntrust Super


LEADINGSUPPLIERS

ISIS was lucky enough to work on numerous hotel and casino pro-jects in 2011, including Hiltons in Cairns and Brisbane, Marriott’s in Melbourne and Surfers Paradise, Novotel in Brisbane, InterConti-

nental in Sydney. A couple of standout projects have been the ‘Sig-nature Suites’ at the new The Darling hotel at The Star in Sydney and Sails in the Desert at Ayers Rock. Both projects have been extremely challenging for different reasons, Signature Suites for the complex-ity of design, imported materials and finishes and working with a United States-based designer, Sails in the Desert for the coordination, remoteness, and budgetary constraints. On both projects ISIS played a significant role in the programming and Value Engineering of the design for the projects to proceed within budget.

ISIS also proudly completed the 17,000m2 refurbishment of the ca-sino main gaming floor at The Star in Sydney. Taking a total of 28 months to construction in 22 stages, all the while the casino remained in full operation, all stages were completed within the original pro-gramme. Three major KPI’s for ISIS were to ensure that the guest ex-perience was not disrupted and the casino did not lose patronage or revenue during the refurbishment programme, we can proudly con-firm all three KPI’s were exceeded with no guest complaints about noise, dust etc, patronage and revenue improved beyond budgeted expectations.

ISIS was also recently awarded the Master Builders Australia NSW Award for Best Interior Fitout between $3-$5 million for The Cherry Bar at The Star. In 2012, ISIS will complete the refurbishment of Suites and private gaming rooms in the Astral hotel and the fitout of the Manhattan Nightclub.

ISIS is expecting that 2012, Sydney, Perth and Adelaide will be the standout markets for hotel refurbishment after a number of years of limited capital expenditure. Melbourne and Brisbane will continue to be consistent. There will also be opportunities in all cities for the con-version of existing office buildings to hotels.

ISIS has been a stand out in the hotel refurbishment market for a number of years because we focus our business on developing trust-ing relationships, understanding our clients business and their drivers and being able to provide industry knowledge, competitive pricing and quality delivery. ISIS’ focus is and will continue to be fit out and refur-bishment projects but we now have the capability to undertake new build. Although clients have become extremely focused on reducing budgets and timeframes, it is important to understand that cheapest price and shorter programmes do always deliver the desired outcome, something will always suffer.

We understand that relationships between ISIS, our clients, the designers and consultants, subcontractors and suppliers are all inte-gral to the success of any project and developing that trust. ISIS then becomes responsible for tailoring a delivery model solution to manage these relationships. Trust is about having open communication and constructive dialogue throughout the whole project, having good cor-porate governance, and a long term view.

ISIS prides itself on its financial strength and integrity. Our finan-cial strength affords our clients the comfort and knowledge that their project will be completed in accordance with their requirements. ISIS applies its industry leading risk management processes to every pro-ject it undertakes, providing the client with the additional comfort that no other project that ISIS is undertaking will jeopardise theirs.

Much of the work ISIS completes is repeat business and in the niche market such as a hotel refurbishment we would like to think that our clients like working with us because we are trustworthy, provide an increased level of industry and market knowledge and intelligence and are be able to deliver on what we promise.

We are certainly looking forward to a prosperous 2012 to further grow our business and work with clients to undertake challenging and complex opportunities.

ISIS Group Australia

BRETT PATTERSONNational Executive – Hotels and LeisureISIS Group Australia


LEADINGSUPPLIERS

in design without being too unfamiliar and are offered with a three year commercial warranty. As stock items, they are available on a three day dispatch from order. Within the hotel segment, 2011 marked the official lunch of our Event Pro-Lite, ABS, honeycomb core, folding tables. Designed specifically for hotels and venues requiring a highly durable, lightweight and environmentally sustainable folding table solution, our Event Pro-Tables represent outstanding value with a 12 year commercial warranty. Our 6ft Round Event Pro-Lite Table is also currently the only folding table in Australia to have passed AFRDI certification BS EN 15372:2008 Level 3 Severe Commercial providing our clients with the reassurance they require. High profile customers include The Outrigger on Little Hastings, Noosa, The National Gallery of Australia, The Sleeman Sports Complex and Parliament of NSW. Hot products coming up in 2012 include new line extensions of the Uni Range, three new stylish banquet chair models that are truly different and unique from what is currently available as well as an abundance of new designer furniture from Europe’s best furniture design houses.

What are the major issues facing the hotel industry at present?You would have to say that the rise of the Australian Dollar in particu-lar over the last 6 months as well as the looming Euro crisis, has had a negative impact on tourism and business travel. In particular, visitors from Europe and the US were down 0.7% and 3% respectively for the 12 months to end Oct 2011 versus the previous year. In terms of short term Australian resident departures, the ABS shows an 8.6% increase for the 12 months to end Oct 2011 versus the previous year. So es-sentially, over the last 12 months we have less people visiting Aus-tralia from affluent nations and more people travelling abroad than the previous year. One could assume that means, the hotel sector is doing it tougher this year on room occupancy compared to last year. Hotels need to look to build on alternate streams of revenue and the most obvious is the conferencing and event market. Having a top class function centre allows hotels to capture a share of the highly lucrative business conference and wedding/event market.

Why would hotel chains say they worked with you over the last 12 months?When a client chooses us as their furniture supplier for a project, it’s for a couple of reasons. Firstly, service and integrity: as clichéd as it sounds, these are really two attributes that you have to earn. They cannot be bought, they cannot be outsourced and you cannot fool a customer into thinking that you have these. Secondly, product qual-ity: A product's warranty can hint towards product quality, but even more importantly, is the supplier's reputation in acting on warranty. We have an excellent reputation within the industry in standing by our product and keeping our customers 100% satisfied.

How sustainable is your company?While sustainability has always been important to us, both in the way that we operate our business and the products that we supply, 2012 sees us build on that with a documented sustainability policy as pub-lished on our website. This is not just a flaky statement published with no intent. It’s a commitment to a sustainable way of doing business in-cluding operational, manufacturing, packaging and recycling sustain-ability. Already we recycle all recyclable materials within the office and warehouse, work with suppliers to achieve recyclable furniture com-ponentry as well as packaging and our entire office and warehouse runs on green energy.

What is your company’s X-factor in 2012?The X-factor for 2012 is to be simply smarter in everything that we do.

NufurnGAVIN KRAWCHUKManaging DirectorNufurn

How was business in 2011 and what are you expecting for 2012?2011 was a really interesting year for us. We had an incredibly strong end to FY11 and finished up with our best year to date. FY12 then opened softly for the first few months in July, August and September. New enquiries started ramping up again in October and business has been strong since with lots of new projects and prospects for Q3 and Q4 FY12. We're currently ahead of target for the year, however eve-ryone has worked incredibly hard to achieve that. General consensus from within our industry has been that the lack of confidence weighing on medium sized projects has been a result of a strong Australian dol-lar and Euro (make that Global) financial crisis affecting tourism and confidence in general. Locally, the uncertainty throughout the year on issues such as gaming, carbon tax schemes and mining tax reform, has also played on people's confidence. Having said that, we have invested in a number of exciting initiatives including people, systems and man-ufacturing that will continue to grow our business in 2012.

What have been some of your hottest product launches and what’s coming up?The hottest product launch within our restaurant hospitality segment has been the Uni Chair by Metalmobil Italy and the Ferrara chair by Bon. Both products are manufactured in Europe, are incredibly unique


LEADINGSUPPLIERS

How sustainable is your company?Sealy recognises the importance of environmental sustainability and we take our corporate responsibility seriously. Our goal is to reach an acceptable balance between sustainability and product quality, perfor-mance and durability, based upon the practical application of the most advanced technologies available. Over 90% of materials in Sealy beds are recyclable: steel, timber and foam can be usefully recycled. Sealy uses sustainable plantation timber for foundations. Local manufactur-ing ensure the carbon footprint of each bed is minimised through few transport kilometres.

What is your company’s X-factor in 2012?Our brand is trusted by the leading hotel chains as we pride ourselves on our product integrity. All Sealy beds are built to exceed industry standards to ensure they provide the ideal mix of comfort, support and durability for ultimate performance. Sealy’s X-factor will always be our dedicated support to our business partners and delivering quality bed-ding solutions that meet the needs of the accommodation industry.

Sealy of Australia

ANTONY RAITERINational Commercial Account ManagerSealy of Australia

How was business in 2011 and what are you expecting for 2012?2011 was an exciting year for Sealy which saw the introduction of our new Commercial Range. We listened to our customers and tailored the range to offer a variety of comforts to meet the needs of our market. This proved a great success with re-invigorated interest in the new range and Sealy’s product offering from existing and new accounts. There were plenty of healthy signs that tourism is starting to recover from the effects of the global financial crisis, as we saw a welcome return to projects and developments in key tourist areas. We expect to continue Sealy’s success in 2012 with our focus, as always on superior service and dedicated support to our partners in the accommodation industry. We look to make some exciting changes and introductions to our product portfolio in the year to come, which will further cement Sealy’s strong position in the market.

What have been some of your hottest product launches and what’s coming up?Obviously the launch of our new Commercial Range was the highlight of 2011. This range provides a bedding solution that is suitable for all properties and budgets, while upholding the quality and support that Sealy is trusted and known for. Being the leaders in the accommoda-tion industry means that we are always striving to enhance our prod-ucts and remain at the forefront of technology advancement. Sealy will be top of mind with consumers this year as we introduce an advanced support system to our domestic Sealy Posturepedic range, with the aim to include this technology in our commercial offering.

What are the major issues facing the hotel industry at present?Although some projects and refurbishments have come back on line, there is still restricted funding for new developments and heightened caution from investors due to a number of economic pressures. The strength of the Australian Dollar and the current financial turmoil in Europe has seen Australia struggle as a desirable destination to inter-national tourists. This lack of demand has seen competitive pricing for room rates and even closures of properties in key tourist areas. Many areas of Australia and New Zealand are still recovering from the dev-astating effects of natural disasters. Floods, fires and earthquakes hit a number of tourist destinations in 2011 which has impacted these areas significantly and will take time to recover and rebuild.

Why would hotel chains say they worked with you over the last 12 months?Sealy has long standing relationships with the leaders in the accom-modation industry. These relationships have developed into business partnerships over time, allowing us to deliver to the needs of our cus-tomers. We understand that choosing bedding is one of the biggest investments that an accommodation provider can make. That is why dedicated customer support is at the core of Sealy’s service model. Lo-cal manufacturing means that we can offer customised bedding solu-tions to our business partners. This service model, along with Sealy’s dedication to providing quality durable products has proven successful with our customers for over 30 years.


LEADINGSUPPLIERS

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The past year has proven to be another very successful one for the Oceania division of VingCard Elsafe as we consolidate our leadership position with strong focus on customer service and

innovative solutions. Well recognised as the global leader in hotel security technology for door locks and in-room safes, VingCard Elsafe has products installed in more than 42,000 properties worldwide, securing more than 7 mil-lion hotel rooms. Our core focus is still our contact less Signature RFID door locking solution, which offers higher security performance through its anti-cloning feature, and provides unprecedented conven-ience and ease of operation for hoteliers and guests alike.

Addressing a very topical issue faced by all hoteliers across the region is their second highest cost, electricity to power air conditioning units. Orion by VingCard Elsafe, our new energy management solution, de-tects a guest's presence in their room allowing the hotel to control and manage the air conditioning while rooms are unoccupied, and monitor and maintain the same temperature comfort level for when they return to their rooms. Results from pilots between Perth to Nadi are record-ing savings around 35%, which, when multiplied over a year, amount too many thousands of dollars in savings. Orion is not only enabling hotels to reduce their electricity bills but also helping improve their environmental and green initiatives.We feel the next big feature to hit our sector is Mobile Phone Keys So-lution which was formally launched in June. Featuring a combination of our wireless online VISIONLINE system, RFID locks and advanced NFC (Near Field Communication) technology, Mobile Keys allow ho-tel guests to check-in remotely and bypass the front desk at check-in by using their NFC-enabled mobile phones as virtual guestroom keys. It is expected that nearly 30% of all mobile phones shipped in 2015 will be NFC-capable and any RFID VingCard lock installed over the past 18 months are NFC equipped.Our commitment to quality, reliability and customer service through our eight service offices in the Oceania region means our service is of a personal nature compared to a call centre solution.

VingCard ElsafeJULIAN M GOODGeneral Manager - OceaniaVingCard Elsafe


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AUSTRALASIANLEADERS

What are your expectations for performance in 2012?I think if anyone says they can predict precisely what is going to hap-pen in 2012 – or even three months ahead, for that matter – their views should be viewed with some degree of scepticism. Our industry is to-tally dependent on economic conditions both in Australia and inter-nationally, and there can be serious fluctuations every week. On the surface, 2012 should continue the positive corporate travel trends of 2011, which also saw a strong return in business events, but the fi-nancial uncertainty in Europe has the potential to affect the rest of the world, and Australia – despite its good position – is not insulated from world economic factors.

Which are the hottest segments and markets to watch in Asia-Pacific?Undoubtedly China remains a key focus for the market, which is why we pioneered the Optimum Service Standards for the Chinese in-bound market. We’ve also introduced similar standards for the Indian inbound market, which has great potential. The other markets that have performed strongly over the past five years and could benefit from greater attention are Indonesia, Malaysia and Singapore. They have excellent air access to Australia, are relatively close and have strong business and cultural ties with Australia. New Zealand is also a crucial market and we are working very closely with operators to build leisure, conference and business travel across the Tasman.

What’s in the development pipeline for 2012? In Australia, economic and financial conditions do not point towards any major pick-up in new-build developments at the top-end of the market, but there are excellent opportunities in the economy sector. Travel patterns have changed in both the business and leisure sectors and it provides excellent opportunities for quality, good-value hotels. We also see great opportunities for expanding our franchise network fol-lowing the successful integration of over 20 new properties during 2011.

Why will Australasia/South Pacific be a key region in 2012?Australia has some great advantages because of its proximity to the two great growth markets of the world – China and India. Yes, the Dollar is a disadvantage, but there are so many regional advantages that we need to take advantage of in the next few years.

What are the major issues facing the hotel industry at present?It is easy to blame the Australian Dollar for so many of the problems we face, but the attractiveness of Australia as an outbound market has seen a dramatic increase in the number of carriers providing services to Aus-tralia and this will continue to help stimulate the inbound market in the long-term. Attracting quality staff remains an issue, though we are ad-dressing this issue through boosting our Academie Accor training and career development academy. We need to really increase our customer focus and build training programmes that achieve these objectives.

How much of an impact is the growth of low-cost airlines having on your business?One of the major reasons for the resilience of the Australian hotel mar-ket has been the availability of low airfares. Saturday nights in most cities of Australia used to be one of the quietest nights of the week for hotels, but today it is one of the busiest nights because Austral-ians don’t think twice about travelling interstate to see a blockbuster show, a sporting event, attending a wedding or just catching up with friends. It has changed the domestic leisure market. Low-cost airfares have also allowed SMEs to continue travelling and organise face to face business meetings, while the MICE market can get substantial groups around the country at reasonable prices. It makes it even more important for us to continue the level of competition in the Australian airline industry.

Is the luxury leisure market well and truly back, or how far is there to go?The 5-star hotel market was the most affected by the GFC and the slowest to recover, but in the past year it has performed stronger than most other segments, more as a result of increases in corporate and meetings travel than leisure. The mid end economy sectors continue to lead the way when it comes to domestic leisure travel because the travel is usually about attending a major event in a city rather than just going for a hotel stay, so the emphasis is on a good location, good quality and good price, rather than indulgence.

How sustainable is your company?Accor continues to be the leader in its commitment to CSR. This year we will announce a major global project to integrate our environmental and community commitment, and it will build on successful initiatives during 2011 such as the inaugural Accor Race to Survive fundraiser with Mission Australia and our launch of Earth Guest research, which we have made available to the whole industry. With our addition of Ayers Rock resort to the network and the signing of our RAP last year we will be concentrating even harder on increasing indigenous em-ployment and career development throughout the country.

Accor Australia

SIMON McGRATHVice PresidentAccor Australia


AUSTRALASIANLEADERS

* Hotel Pens * Hotel Room Keycards * Hotel Stationery * In Room Confectionery * Other Hotel Items

HOUSE COLLECTIONS DUAL BRANDING BESPOKE

What are your expectations for performance in 2012?The major current impact on business is coming out of the resource sector and this is driving demand and resultant strong growth in yield in the major city markets of Perth, Darwin and Brisbane and regional centres such as Gladstone. We expect to see this continue through the coming year. In terms of more general growth, much will depend on a resolution of the financial market uncertainty in Europe and the impact of this on both corporate and consumer confidence. Barring any unforeseen major events occurring in Europe we see a small lift in demand growth however, with strong overall demand see an op-portunity to significantly grow yield. We are also starting to see some signs of growth in the small meetings and conference segments. In this environment of relatively strong demand there has been some dilution in the influence of corporate procurement policy on static rate require-ments. As a result we are seeing a significant move toward a negoti-ated percentage discount off best available rate as part of corporate rate negotiations. In addition corporate travellers are regaining control over where they want to stay which is creating an opportunity to more strongly differentiate our product over that of the competition. For example, at Rydges, we have greatly renewed our focus on food and beverage developing new restaurant and bar concepts and launching our new 'Rise' breakfast concept. In summary for us, the year ahead will see growth in market share, a slight increase in demand, growth in yield and growth in food and beverage spend.

Which are the hottest segments and markets to watch?The hottest markets will remain those directly impacted by the resources boom, both major city and regional. Globally the most profitable seg-ment is that of the designer hotel with high-end luxury hotel rate posi-tioning and with operating cost levels more in line with the 4-star seg-ment. With strong demand and growth in yield it is quite possible that in the coming year we will see the beginning of a new cycle of hotel de-velopment and it is this segment that has the most potential for growth.

DAVID SERGEANTGroup Managing DirectorAmalgamated Holdings Limited

How important is a lift in domestic tourism?Domestic tourism remains affected by a strong Australian Dollar and the value appeal of holidays out of Australia and this is likely to con-tinue through most of the year. Growth in this segment is critical for many of our resort locations particularly the Gold Coast and Far North Queensland and as such, our focus will be on developing and market-ing high value holiday packages.

What’s in the development pipeline for 2012?Much is focussed on the launch of our new QT Hotels and Resorts brand. We have just completed QT Gold Coast and this will be fol-lowed in April by QT Port Douglas and the opening in late August of our flagship hotel QT Sydney – a 200 room upscale Design Hotel located at the corner of Market and George Streets. We are also look-ing at the commencement of construction of our first Abode by Rydges Hotel located in Blacktown, Western Sydney.

Why will Australasia/South Pacific be a key region in 2012?For the international corporate markets interest in this region par-ticularly Australia will be largely driven by the resources sector and through this our proximity to and relationship with China.

What are the major issues facing the hotel industry at present?Attracting the right talent to work in our industry particularly those seeking to make hotel management a long term career. In addition we are experiencing the age old shortage of chefs and front line cus-tomer facing staff. An additional challenge for our industry is how we can attract more higher yielding International visitors and how we can stimulate through Government lobbying, development of major con-ference and exhibition infrastructure to enable us to better compete with our neighbouring competition.

How much of an impact is the growth of low-cost airlines having on your business?Low-cost airlines had a major role in the growth of domestic hotel demand and we would expect that as these airlines expand to nearby Asian destinations that we will experience similar demand growth.

What is your company’s X-factor in 2012?The exciting new designer QT brand and our ability to deliver innova-tive new restaurant and bar concepts that drive market share.

Amalgamated Holdings Limited


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AUSTRALASIANLEADERS

What are your expectations for performance in 2012?Although current world events point to a stagnant and declining econ-omy in 2012, based on our past performance during the global finan-cial crisis, we are forecasting continued growth. Mid-market brands like ours that focus on providing the guest with consistent value and service, have proven resilient in tough times. All of our booking chan-nels (voice, online, GDS) have experienced double digit growth over the last 12 months. Our GDS bookings, for example, have increased by an average of 35% over the previous 12 months.

Which are the hottest segments and markets to watch?Our properties cater for all segments, but we expect the corporate market to continue to go from strength to strength. This year, we’re focusing on consolidating and building our corporate relationships with increased preferred and negotiated rate.

How important is a lift in domestic tourism?Domestic tourism is critical for the travel industry as a whole, and es-

ROB ANDERSONChief Executive OfficerBest Western Australasia

Best Western Australasiapecially for those of our properties which cater mostly to the leisure market. A whole-of-industry approach is needed to get Australians travelling in Australia, to provide travellers with unique experiences and to offer value for money to travellers who may be tempted to travel overseas and make the most of the high value of the Australian dollar.

Why will Australasia/South Pacific be a key region in 2012?For Best Western, the South Pacific is a key growth area. With in-creased air capacity, more and more Australians and international travellers will be visiting this region. Australasia also remains a key region, and apart from expansion opportunities here, we remain key on the global front as our economy remains strong, our mining areas are still booming and we are seeing increased arrivals from emerging markets like India and China.

What are the major issues facing the hotel industry at present?Technology, in its ever-changing state, brings about some interesting challenges for properties. Every day there is a new distribution part-ner, and managing all channels with increasing competition for inven-tory, rate parity and commissions, can be a minefield for some of our smaller properties. On a broader scale, there is a lack of investment in new product in Australia, particularly in regional areas, where we will see massive growth in the next decade. The planning, construction and investment needs to begin now, if we are to see the long-term benefits in the next few years.


AUSTRALASIANLEADERS

SANJAY UMASHANKARGeneral ManagerBlue Sydney

Blue Sydney

What are your expectations for performance in 2012?The overall sentiment is still cautious, however we expect the rates to go up slightly but this more or less will be absorbed by an increase in costs. Overall, the bottom line growth will be flat.

Which are the hottest segments and markets to watch?The fastest growing segment is the Chinese market. We are yet to see a significant impact now but it is bound to go up in the near term.

How important is a lift in domestic tourism?Domestic tourism is very important but unfortunately with the high dollar overseas travel has become more cost effective and cheaper than domestic travel. Should this continue it’s a fair call to say that there will be de growth in tourism regions of Australia and will have a cascading effect on related industry.

Why will Australasia/ South Pacific be a key region in 2012?Australia is one of the safest regions to travel. This single factor makes Australia stand out. But in order to harness this travel into Australia needs to get cheaper.

What are the major issues facing the hotel industry at present?Trained manpower is a major factor, lack of it and the cost of it. Sec-ondly, especially in Sydney, the lack of adequate infrastructure, is a bottleneck for growth. The cost of an airline operating into Sydney and operating hours of airports are not conducive to tourism growth. Cost of transport within the city and parking fees are some of the major is-sues. A lack of late night shopping, dated convention facilities and the high cost of travel to Sydney needs to be addressed

How much of an impact is the growth of low-cost airlines having on your business?Low-cost airline will have a positive impact both on tourism and cor-porate business. We need more of the LCC models to operate to make air travel competitive. International LCC should be encouraged to touch Sydney. Once this happens there is bound to be growth.

Is the luxury leisure market well and truly back, or how far is there to go?The luxury market is not back and I don’t think it will be until 2014, unless the financial turmoil sorts out and the global economy start growing we may not be able to see this coming back in a hurry. Hotels are still not getting the pre-GFC rates.


AUSTRALASIANLEADERS

What are your expectations for performance in 2012?I think we’ll see a continuation of 2011 conditions. The twin econo-mies will result in two tier results. Properties in strong corporate desti-nations – capital cities and industry mining regions will continue to do very well. I don’t hold great expectations for domestic or inbound lei-sure and I think it will continue to be tough in those segments. Choice is strong in corporate delivery so I expect we’ll have another solid year.

Which are the hottest segments and markets to watch in Asia-Pacific?My answer here is pretty much the same as above. The strong Aus-tralian Dollar (which I expect will continue) is not great for inbound tourism and Australians are voting with their feet (and dollars) by holi-daying overseas.

What’s in the development pipeline for 2012?All our properties are franchised and we continue to attract quality properties into our four brands. We’ve had a really strong year with property number growth in New Zealand in 2011 and we’re budget-ing to finish 2012 with over 300 properties across Australia and New Zealand.

Why will Australasia/South Pacific be a key region in 2012?The strong economic conditions in this region and especially Australia mean that business travel will maintain momentum. It’s all about loca-tion, location, location and those properties in strong business markets will continue with strong results.

Choice Hotels Australasia

DAVID BAYESChief Executive Officer

Choice Hotels Australasia

What are the major issues facing the hotel industry at present?The strong Aussie Dollar has to be the biggest impediment to tour-ism growth – accommodation results are in direct correlation. In areas where the business market is strong finding and keeping good staff is an ongoing problem. The mid-market accommodation industry is largely made up of SME (Small to Medium Size Entities) and then having the capital base and the willingness to invest in the properties to maintain contemporary standards is an ongoing challenge.

How much of an impact is the growth of low-cost airlines having on your business?Any growth in airline capacity is always welcomed by hotel operators. The low cost airlines certainly promote domestic tourism and that can only be a good thing. Affordable domestic travel and especially to re-gional areas is a vital part of tourism success.

Is the luxury leisure market well and truly back, or how far is there to go?This is not really the segment Choice Hotels operates in but certainly I noticed ADR growth across the industry and that can only be a good thing for the high end operators and indeed for the mid market seg-ment as it allows a return to differentiation by price.

What is your company’s X-factor in 2012?Continued focus on standards to meet our guests' increasing expecta-tions. Beyond that our global presence, contacts and strength allow us to provide solutions to the many operators who need that kind of entrée and support while still maintaining their independence.


AUSTRALASIANLEADERS

What are your expectations for performance in 2012? In 2012, Crown will strive to maximise hotel occupancy across our property portfolio in Melbourne and Perth. We will also continue to develop our product offering and infrastructure to encourage visitation to Australia from existing and emerging 'new' markets. In Perth we have just launched an unequalled villa product that we believe sets a new benchmark in Australia. Crown will also continue to make a sig-nificant effort in improving our hotels’ hardware and will continue to work alongside key tourism bodies such as Tourism Australia and local tourism organisations in Victoria and Western Australia.

Which are the hottest segments and markets to watch?For us, the segments to watch include China’s new middle class that appear to have a growing appetite for travel, as well as India and South East Asia. The international association market is also of interest. In the next two years, Melbourne’s large scale conference market will continue to grow. Crown is an active partner with MCVB and together with MCEC and Melbourne Airport the city has been able to attract large international conferences such as the World Congress of Cardiol-ogy which anticipates to host at least 9000 delegates, while the World AIDS conference will host 14000 delegates. Melbourne is attracting at-tention for its sophisticated and user-friendly infrastructure making it an inviting destination for large scale event organisers and has resulted in a number of wins in the competitive field of conferencing.

How important is a lift in domestic tourism?The domestic market is a critical component to our success. Austral-

ians, including locals, enjoy holidaying at home, even if it’s just for a night or two away as an escape or a celebration. It’s our job to ensure that we have compelling offers available to attract this price sensitive and discerning market. We work hard to ensure that our offering con-tinues to appeal to families, couples and small groups alike. We have cinemas, live music venues, bars, outdoor dining areas, three hotels, a host of award-winning restaurants and a mix of shopping that is both high-end luxury and the best of Australia’s local retail to appeal to domestic and international travellers. Domestic travel including both corporate, group and leisure guests make up over half of our business, so clearly domestic tourism is important.

Why will Australasia/South Pacific be a key region in 2012?From Melbourne’s perspective, the city has cemented an annual cal-endar of world-class events that is arguably unparalleled anywhere else in the region. From the Australian Open in January, the Grand Prix in March through to the Spring Racing Carnival in November, the city is buoyant. Team this calendar of events with award-winning restaurants, hotels to suit a range of guest profiles, accessible public transport, quirky neighbourhoods worth exploring and laneway after laneway of both shopping and hard-to-find, but worth-the-hunt bars, you’ve got an appealing combination that is unmatched anywhere else. The economy is charging along and Melbourne’s restaurants, bars and nightlife are busy most nights of the week which makes travellers feel like they have tapped into an energetic and dynamic urban hub of activity. Crown currently has committed to more tourism infrastruc-ture spending than any other Australian company with the exception of the major international airlines. Crown is constructing world-class hotels, restaurants and VIP guest facilities in both accommodation and gaming to meet the increasing competition to Australian tourism from several major cities in Asia and South East Asia. The sole purpose is to provide a product that competes on the world stage to continually drive tourism to our shores.

Is the luxury leisure market well and truly back, or how far is there to go?The new villas at Crown Towers is an excellent example of our be-lief that it is vital to offer guests a truly luxurious product. We’ve in-vested more than $20 million AUD in 32 villas that are nothing short of exceptional. Each element of the villas has been custom-designed to meet the demands of even the world’s most discerning guest. The most exclusive experience in Crown Towers can be found in the new palatial villas that are positioned on the top floors of the hotel and of-fer guests the epitome of world-class accommodation. The villas fea-ture the highest quality of finishes in every single element of the villas from custom made carpet to bespoke beds and linen. Located on the hotel’s uppermost floors, each villa has the character of a penthouse residence. The villas are attended by a service-oriented team of butlers, on call 24-hours, and are accessible by three private express lifts. There are 32 villas in total including one Chairman’s Villa, four Presidential Villas, 16 Crystal Villas and 11 Deluxe Villas.

How sustainable is your company?Crown’s vision is to play a leadership role in sustainable business practice in the gaming, hospitality and entertainment industry. In Mel-bourne, Crown has implemented a number of sustainability initiatives including a comprehensive monitoring and reporting system that pro-vides live data for measuring electricity, gas and water consumption. In addition, state-of-the-art energy and water efficiency technologies were adopted at Crown Metropol and Crown Conference Centre.

What is your company’s X-factor in 2012?Crown’s overall, clear and determined commitment to be Australia’s leading integrated resort and re-branding from Burswood to Crown Perth would be our 'X-factor'.

Crown HotelsPETER CRINISGroup Executive General Manager – Hotels & RetailCrown Melbourne


AUSTRALASIANLEADERS

Empire Hospitality Australia Pty LtdSuite 102/243 Pyrmont StreetPyrmont NSW 2009

At Empire Hospitality we pride ourselves in providing

Quality Housekeeping Solutions.Our focus is on the delivery of cost effective housekeeping services and we continually strive for service excellence, through this method we have built an enviable reputation as a market leader in housekeeping services by providing site-specific delivery to each of our clients.With proven experience in providing the best and efficient service, we are the housekeeping partners of the leading hotels and serviced apartments in Australia.

Contact us now on 02 9571 6811| [email protected] | www.empirehospitality.com.au

What are your expectations for performance in 2012?I’m going to stay positive and expect the developed world to come out of the doldrums and show some growth. If this occurs and sentiment picks up, I believe we are in for a very strong 2012 into 2013.

Which are the hottest segments and markets to watch?Established international leisure as soon as the above occurs.

How important is a lift in domestic tourism? Very important. It’s equal to growth in international tourism but probably tougher to achieve.

What’s in the development pipeline for 2012?We are currently in negotiation and conversation with own-ers and developers for new and existing hotels in Sydney, Auckland, Fiji, Paris and Los Angeles. We look forward to another big year of growth.

What are the major issues facing the hotel industry at present?Labour, labour, labour. Australia needs to radically change its IR laws if we want to compete internationally and succeed domestically.

Is the luxury leisure market well and truly back, or how far is there to go?The market is there, the market is not the problem, it’s the product in Australia. There are some hot spots like our prop-erties in Hepburn Springs Victoria and Thredbo NSW, but essentially it’s tough in Australia but it's sure back every-where outside of Australia.

How sustainable is your company?8Hotels believes in conservation at every level... that is why we don’t like waste period-environmental, financial or otherwise.

What is your company’s X-factor in 2012?Human capital.

8HotelsPAUL FISCHMANNManaging Director8Hotels


AUSTRALASIANLEADERS

What are your expectations for performance in 2012?Whilst yearly Brisbane hotel occupancies are about as high as they can get, there is no excuse for not growing room rates even further in 2012. Demand from the higher yielding corporate sector is expected to re-main strong, but other than several apartment towers coming on line (who do not offer the full suite of hotel services), there are no new hotels scheduled to open in Brisbane this year.

Which are the hottest segments and markets to watch?In Brisbane, it will definitely be the corporate and C&E segments, however we shall also continue to work closely with Brisbane Market-ing to create highly attractive packages for the Leisure Market, particu-larly around some of the incredible events scheduled to take place in Brisbane in 2012. These include the timeless Broadway Musical ‘An-nie’ and the Exhibition 'Portrait of Spain: Masterpieces from the Prado' at GOMA.

How important is a lift in domestic tourism?Reviving the attraction of domestic tourism is the most important chal-lenge we collectively face in the Australian Tourism Industry. There are a multitude of reasons for the downturn (value of the Australian Dol-lar, no new projects and tired existing product, lack of infrastructure support etc.) and while these may all be contributing factors, it’s the people in tourism who leave a far longer-lasting impression than the product. To this end, we need to focus urgent attention to skills train-ing and accreditation, an easing of working visa restrictions in areas and seasons where skills shortages are evident and a total restructure of labour laws that recognise that Tourism Sector is a 24 hours a day, seven days a week business.

What’s in the development pipeline for 2012?The Emporium Hotels Group is delighted to announce that it’s next 180 suite, luxury Emporium Hotel is scheduled to begin construc-tion at our Brisbane South Bank site in 2012. The hotel will be part of a AUD$500 million complex being constructed by the Anthony John Group, including the new Corporate Headquarters for Suncorp (3,000-plus employees), luxury apartments with incredible views across Brisbane River to the City Skyline and a selection of premium retail outlets, including Restaurants and Bars. We are also very inter-ested in establishing the Emporium Hotel brand in Melbourne and Sydney and are in constant discussions with potential development partners interstate.

Why will Australasia/South Pacific be a key region in 2012?While the rest of the world’s economies remain under a cloud, the Australasian region appears less burdened by debt (relatively speak-ing) and continued economic growth will ensure both corporate and leisure travel to Australia will continue to grow. However, the chal-lenge for the Australian hotel sector will be its readiness to welcome our neighbours with a thorough understanding of their cultural needs and expectations.

What are the major issues facing the hotel industry at present?In addition to the skills and labour issues mentioned earlier, there remains a strong demand for more hotels in Brisbane. This is a ma-jor issue if we intend to seriously compete in winning International Congress business to this city. The delay has been caused by excessive build costs making the ROI on other forms of property development more attractive. To combat this, Local Government has recently an-nounced a three year freeze on infrastructure charges for new four and five star hotel development in Brisbane, in an effort to encourage new investment.

How much of an impact is the growth of low-cost airlines having on your business?Travellers who are happy to stay at the Emporium consider the hotel and its services as offering good value for money, therefore there may be some potential correlation.

Is the luxury leisure market well and truly back, or how far is there to go?Not yet. Several years ago it was not uncommon for the Emporium Hotel to be fully booked every weekend, but this is no longer the case. Whilst there will always be a market for couples wishing to celebrate special occasions, we need to see a resurgence of consumer confidence before they start spoiling themselves again.

How sustainable is your company?The Emporium Hotel recognises that our activities have an effect on the environment at local and global levels and we therefore strive to-wards minimising the environmental impact of our hotel operations. We are dedicated to implementing policies aimed at improving the hotel’s environmental performance, and remain committed to reduc-ing the use of energy, water and waste. This also involves building awareness within the Emporium Hotel team, our suppliers and work-ing with EarthCheck, a Sustainable Tourism Benchmarking company to achieve our sustainable goals. It is our purpose to maintain a healthy environment by implementing sustainability projects and also adher-ing to best practice procedures. We firmly believe we can achieve these sustainability goals while simultaneously striving to create a hotel where service, ambience and comfort for our guests are rated amongst the best in Australia.

What is your company’s X-factor in 2012?Same as when we opened the first Emporium Hotel in 1997 – our people!

Emporium Hotels GroupPETER SAVOFFGeneral ManagerEmporium Hotels Group


w

AUSTRALASIANLEADERS

Four Seasons Hotel Sydney

VINCENT HOOGEWIJSGeneral ManagerFour Seasons Hotel Sydney

What are your expectations for performance in 2012?Although we have no reason at this point in time to think that Syd-ney's occupancies will drop, we have to be cautious: ee are part of the world economy. Domestic business remains strong and robust, and we are confident that similar occupancies as 2011 will be achieved.

Which are the hottest segments and markets to watch?International (Europe / USA) Leisure are to be "watched" (for drop-ping further) but fortunately we also see a lot of potential in Asian leisure and groups, in particular China and India.

How important is a lift in domestic tourism?Without domestic tourism, our weekends would not be the same, and that's where Sydney (the destination) needs to continue to plan events (culture, sport, music, food and so on) to attract this domestic visitation.

Why will Australasia/South Pacific be a key region in 2012?It has all the ingredients to wow its visitors (city, beach, food and cul-ture) and the world economy is banking on the continued growth of the economies of Asia and South Pacific.

What are the major issues facing the hotel industry at present? One of the key factors is labour and its cost to the operation: retention of great people that are willing to work (and make a career) in the hotel

business and being able to maintain labour costs at acceptable levels. On the other hand, the room rate increase resistance in Sydney is a challenge: many Australians do travel overseas and are prepared to pay 500 Euro-plus per room per night, where there is major resistance to pay a rate over AUD $300 in Sydney.

How much of an impact is the growth of low-cost airlines having on your business?The more visitors arriving into Sydney, the better, as it will increase occupancies of all levels of hotels.

Is the luxury leisure market well and truly back, or how far is there to go?We are finding the luxury market is re-emerging, especially with the summer months upon us which inevitably inspires more leisure travel. There has been an upward trend towards the end of 2011 which is evi-dent in the higher average rates the hotel has been enjoying compared with the same time the previous year.

What is your company’s X-factor in 2012?We have some exciting public space refurbishments planned for 2012 which will significantly change the image of the hotel, so watch this space. The Old Grand Dame of the Sydney hotels is well and truly alive and kicking.

What are your expectations for performance in 2012?Christchurch is a very unique market at the moment where we have only around 25% of the pre-earthquake hotel capacity operating and this is unlikely to change dramatically for 2012. We are expecting around 4 hotels to reopen by the end of the year adding around 550 rooms to the 800 that are currently available. This is still well short of the 3,700 New Zealand Hotel Council (NZHC) member hotel rooms that were available pre-quakes. At the same time however there are parts of the year where 150 of the existing hotel rooms will be out of action for refurbishment, temporarily offsetting some of the gains. During 2011 the lack of supply meant that considerable business was lost, particularly from tour groups, so the return of supply will simply allow existing demand to be met. As the city recovers and demand grows, the hotel supply will grow with it. Another 800 hotel rooms should return to action in the first half of 2013. Hopefully this year we will also see announcements from some owners and operators who have lost hotels, about their intentions to rebuild. This is important so that we can keep growing our capacity towards a more “normal” level. In summary I expect the operating Christchurch hotels to continue to run at good occupancy levels and consequently achieve reasonable room rates.

Which are the markets to watch?It will be interesting to see the impact of the estimated 36,000 work-ers predicted to descend on the city to help the rebuilding process. This is the latest estimate consisting of 24,000 construction workers and 12,000 others including lawyers, accountants, retail and hospital-ity workers. While most of these will be seeking longer term options there will undoubtedly be some hotel demand from this sector. The peak period is expected to be in the second half of 2013.

How important is a lift in domestic tourism?With the continuing instability in the UK and Europe and little evi-dence of growth in the USA two of our historically largest international markets are stagnant, if not in decline. The Japanese market has con-tinued to decline and has dropped from 4th largest international mar-ket, being replaced by China. While we are seeing growth from Asia, particularly China and India, this is still well off replacing the decline in the above markets. With over 50% of Christchurch hotel business coming from offshore and most of this coming over 4 summer months, New Zealand has always been a very seasonal market with generally poor occupancy levels in the winter months (apart from the ski areas when there is good snow). Therefore the uncertainty of the overseas situation combined with the seasonality issues mean that our domestic market is where our bread and butter is. An increase in this area can assist our seasonality issues as well as offset some of the decline in international markets.

The George

BRUCE GARRETTGeneral ManagerThe George, Christchurch


AUSTRALASIANLEADERS

P +613 9580 9977 [email protected]

S E N S O R Y I N D U L G E N C E S

What are your expectations for performance in 2012?Following on from a very strong reopening of the resort in August 2010 which continued throughout to the end of the year, Hayman is well poised to consolidate this positive momentum through 2012 and beyond, with solid business having already been confirmed for the first quarter.

Which are the hottest segments and markets to watch?The high-end family market and multi-generational families travelling

together are presenting a clear trend. Furthermore, in line with much of the current strategy being undertaken by Tourism Australia, we are gearing for a shift into China and Asia in general, whilst maintaining our strong positioning internationally in North America and Europe.

What are the major issues facing the hotel industry at present?Outbound travel is a significant issue with medium haul tourism des-tinations, such as Thailand and Bali, which offer compelling deals in-clusive of airfares, accommodation and meals, together with relatively easy access. The economic circumstances facing the US, UK and much of Europe are also impacting on visitor arrivals from those markets that have been a mainstay in the past. Securing of skilled and unskilled labour for hospitality and tourism will continue to be a challenge.

Is the luxury leisure market well and truly back, or how far is there to go?This high-end luxury traveller has always been the core of Hayman guests. However the luxury traveller is gradually changing, with guests seeking experiential destinations more than ever, and rich, meaningful experiences that can be shared with family. Luxury travellers are also more youthful and less motivated by brands or ‘badges’. The rising wealth in Asia indicates that the luxury leisure market is likely to con-tinue to grow in size. We are continually enhancing and adding to the guest experience across all aspects of our offerings.

SHANE GREENGeneral ManagerHayman

Hayman


AUSTRALASIANLEADERS

What are your expectations for performance in 2012?We expect the continuation of our current solid performance. Due to our owners, the Oatley family’s, recent $350 million investment in Hamilton Island we’ve been able to maintain guest numbers for the last three to four years. Whilst the overall visitor pie is shrinking in the region we have been able to increase our share.

Which are the hottest segments and markets to watch?The luxury market is definitely the hottest segment. We are finding that our luxury and boutique accommodation options consisting of qualia, Yacht Club Villas and the Beach Club are continuing to enjoy high occupancy levels. The luxury traveller is still spending on unique and service-driven experiences. Markets to watch are inbound China. China is just putting a toe in the water in terms of experiencing over-seas holiday destinations. Now is the time for Australia to welcome them with quality and tailored services just like we did with Japan 15 years ago.

How important is a lift in domestic tourism?An increase in domestic tourism is very important to the industry and as Hamilton Island’s visitor base is 80% domestic we will always strive to nurture and service this market. However, in the current economic climate, I don’t foresee a lift in the next 12 months although we will work closely with Tourism Queensland and our partners to strongly promote the region.

Why will Australasia/South Pacific be a key region in 2012?The South Pacific is a key competitor to domestic tourism with its proximity and deal led offers. The inbound low-cost carriers present any exciting opportunity to welcome guests from new regions.

What are the major issues facing the hotel industry at present?Major issues facing the hotel industry are the gaping divide between business-based hotels and tourism-based hotels, high staffing costs with the single biggest deterrent being the strong Australian dollar that’s creating a huge incentive for overseas travel. In Australia, there’s starting to become a gaping divide between business-based hotels and tourism-based hotels. Due to the strength of the mining industry, business-based hotels are remaining strong particularly in locations such as Brisbane and Perth – this is also helped by the low-cost carriers and the value placed on face-to-face meetings rather than alternatives such as web conferencing. In contrast, tourism-based hotels will have to be more competitive than ever before and yield management needs to come to the fore. Australia is unable to compete with the quantity of staff that many Asian hotels employ due to our higher salaries and

when recruiting experienced staff for a regional location we are com-peting directly with the nearby mines for salary levels.

How much of an impact is the growth of low-cost airlines having on your business?The growth of low-cost airlines is having a positive impact on Ham-ilton Island. Many travellers are motivated to book a trip to a holiday destination based on the cost of an air ticket and secondly the cost of the destination itself.

Is the luxury leisure market well and truly back or how far is there to go?I believe the luxury leisure market has only returned by 25% and over the next three years I expect significant growth in this market. In test-ing times such as these, people generally sit on their hands and wait, however frustration soon sets in, so I envisage incremental growth in the next two years and a strong increase by the third year.

How sustainable is your company?Hamilton Island as a business is eminently sustainable. We are main-taining our market position and commercial viability due to our mul-tiple revenue streams. We have an accommodation range that’s ‘all things to all people’, we support a residential community with land sales and services such as power supply and we are easily accessible through our commercial airport and marina. As a business, our desti-nation is similar to a balanced and diversified share portfolio.

What is your company’s X-factor in 2012?In 2012, Hamilton Island can offer guests a world-class holiday experi-ence with premium product, special events and supported by excellent service. Due to the recent $350 million investment in Hamilton Island, the destination is shiny, polished and operating as a good cohesive business. Over the last three years, we have completely changed our HR recruitment and training programs so that our people are better selected, more highly trained and more positive. In the last ten years, we have increased our staff retention of employees staying with the company for longer than five years by 280% and for longer than ten years by 350%. These factors create an enhanced guest experience and ultimately encourages repeat guest visitation.

Hamilton Island

GLENN BOURKEChief Executive OfficerHamilton Island


AUSTRALASIANLEADERS

What are your expectations for performance in 2012?Performance will be patchy and disparate, with contrasting patterns across the region. Some areas will see positive performance and strong growth, while others will see weaker performance and slower growth; overall however we are forecasting a positive picture. Essentially this will be a continuation of the last six months of 2011, which continues to make forecasting difficult.

2012 will be another year of a patchwork economy, some locations will perform well (Sydney, Perth and Melbourne) and others will not show the same high performance. In tourism it is far beyond a two speed economy, it has shifted incredibly to represent more of a patchwork quilt. A patchwork economy means we have to operate a patchwork business with different strategies for each location. Gone are the days when one strategy applies to the whole of Australia, let alone Australasia.

However, I am hopeful that the domestic corporate segment will continue to return to pre-GFC levels by the year end. Domestic leisure will be volatile particularly until the effects of the Carbon Tax are un-derstood. The Carbon Tax will have an impact with businesses in tour-ism and hospitality but nobody knows to what extent. This is having an effect on confidence and may reflect in bookings. The strong Australian dollar will continue to have an impact on the domestic tourism market and inbound will continue to be impacted as well, with many Northern Hemisphere travellers no longer seeing Australia as a destination that is affordable.

Which are the hottest segments and markets to watch in Asia-Pacific?In 2012 we need to see business travel continue to grow as there is still plenty of potential in this sector. As I write this I can honestly say that it’s impossible to predict how this will materialize. We continue to hear about global financial uncertainties and Australia isn’t exactly talking things up at the moment.

In regards to the leisure tourism market, Fiji and French Polynesia are going to be strong markets for 2012. New Zealand will show steady growth this year and will not show any signs of a 'hangover' due to the influx of visitors during the Rugby World Cup in 2011.The South Island of New Zealand will more than likely continue to feel a lag effect, after the tragic earthquakes in Christchurch. However, good snowfall this winter and world-class events, such as Queens-town Winter Festival, will help stimulate tourism numbers.

What’s in the development pipeline for 2012?I expect there will be exciting opportunities and strong growth in 2012. We have a number of really interesting, diverse projects in the pipe-line, including leisure focussed resorts and centrally located corpo-rate properties.

Given our success in the full-service category and our current op-portunities in Australasia, we continue to look for appropriate oppor-tunities to reintroduce our Conrad Hotels & Resorts brand in the re-gion. We are also planning to introduce our DoubleTree by Hilton, as an upscale hotel brand, DoubleTree by Hilton offers individuality and flexibility and we are actively looking at opportunities in primary and secondary markets.

Why will Australasia/South Pacific be a key region in 2012?Australasia and the South Pacific will be a key region in 2012 due to the fact that it is situated next to two of the fastest growing economies in the world, China and India.

This steady growth of China means that Australia needs to work harder at accommodating the Chinese traveller. It needs to be a seam-less experience from airport, to tour operators, to accommodation and we need to be quick about it. Every country is trying to attract the Chinese tourist and any delay in Australia aggressively pursuing this market means we may lose significant inbound tourism opportunities. The International Tourism Arrival forecasts show an expectation that incoming numbers will grow between 2% to 3% annually. I don’t be-lieve this is good enough. We therefore need to be asking ourselves what demand drivers do we need to build and invest in over the next five years to get the growth numbers into double digits.

What are the major issues facing the hotel industry at present?In Australia there is uncertainty around the Carbon Tax. It will have an impact on tourism and hospitality sectors with consumers having concerns about increased costs which could lead to a reduced spend on travel and accommodation.

While the Australian economy has a positive forecast, the world economy is impacting consumer sentiment and the strong Australian dollar continues to impact both domestic tourism and inbound tourism.

The way the hotel and tourism industry does business has also changed significantly in the past two to three years. We now see short-er lead times for booking rooms and events and this pattern will con-tinue, therefore as an industry we need to get better at managing these new booking patterns and finding ways to maximise the opportunities.

How much of an impact is the growth of low-cost airlines having on your business?Regardless of what our guests are spending to travel to their destina-tion, an increase in travel is positive for our industry. We have seen a significant increase in the Fiji market, with the increased number of low cost airfares making this destination much more accessible.New Zealand, especially the South Island, would really benefit from increased low cost air lift and in 2012 I hope to see further growth in this market.

ASHLEY SPENCERVice President – AustralasiaHilton Worldwide

Hilton Worldwide


We’ll build on 2011 performance while keeping a close eye on consumer confidence. We’re expecting a strong year across our InterContinental, Crowne Plaza and Holiday

Inn hotels, fuelled primarily by corporate markets followed by FIT leisure. That said, we’re watching consumer confidence measures very closely.

Despite global financial issues, the Australian economy is expected to grow by 3% this year – but we all know that there are many other factors that can impact spending. For me, consumer confidence, rather than the state of the economy, is going to be the predominant factor to watch in relation to performance.

The industry will struggle to meet new supply demands. The 2020 vision for tourism set out by Tourism Australia sets big targets for new supply, which will continue to be challenged by high land, construction and labour costs. The industry’s also yet to tackle the question of how we provide new supply while avoiding the typical boom/bust scenarios we’ve seen time and again.

But the limited service sector will be the engine room for growth. Lower cost, higher yield hotel operations that meet market needs, such as limited service accommodation models, provide the largest opportunities for growth. This is something we’ll capitalise on when we introduce our first Holiday Inn Express hotels in Australia and New Zealand over the next two years.

Our performance in Australasia will fuel pan Asian growth. IHG will continue to expand its operations throughout Southeast Asia during 2012, with particular emphasis on India and Thailand. Growth in Australasia by comparison will be less rapid as this is a more mature market for us – however our continued success here will significantly support broader regional growth.

Labour will remain in short supply. Availability of skilled and un-skilled labour will continue to be outstripped by demand, particularly with other sectors (such as mining) dipping intoour pool of potential candidates. As an industry, we’ve a lot of work to do in 2012 to make hospitality a more attractive career option. We’ll also need to keep working collectively with Government on initiatives like 457 visa reform to be able to attract international workers.

Employer branding will be critical. This is definitely a buyer’s mar-ket when it comes to attracting high quality candidates. We employ more than 4,500 people across Australia; we know how important it is to help our colleagues to develop their careers every step of the way. We’ll be doing a lot in 2012 to maintain our best employer status, which was validated when AON Hewitt named IHG among Australasia’s top 12 employers in 2011.

Ethical operators will hone their edge. Increasing importance is being placed on ethical hotel operations by development and invest-ment partners, corporate and government procurement managers, partners and guests. Operations that are environmentally sustainable, ethical employers and positive contributors to local community will be better placed to compete for partners and guests in 2012.

New low-cost carriers will be a boon for the industry. Increased air competition can only mean good things for the Australian tourism industry, particularly as new players help to expand regional routes and create greater incentives for trans-Tasman travel.

Stimulation of MICE business will be an industry priority. Cor-porate and leisure travel is fuelling very encouraging occupancy and revPAR growth for us as we come into 2012. Like the rest of the industry, we’ll be looking to stimulate similar growth in the MICE sector in 2012.

We’ll continue to innovate. Our ability to attract new customers and nurture the loyalty of existing guests is greatly enhanced by the attention we pay to brand innovation. The many ways we keep our brands and products compelling and relevant, as well as constantly evolving the way we interact with and make ourselves available to our guests, are real strengths for IHG – and continued priorities for us in 2012.

AUSTRALASIANLeAdeRS

InterContinental Hotels Group

BRUCE McKENZIEChief Operating Officer - AustralasiaInterContinental Hotels Group


AUSTRALASIANLeAdeRS

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Heritage Hotels

JEFF SHEARERChief Operating OfficerHeritage Hotel Management

What are your expectations for performance in 2012? Clearly the market outlook is still not robust, but we have some major events coming up, in Auckland especially, that should carry us through to the winter including the ATP and WTA Tennis tournaments, Vol-vo Ocean Race stop over and the Rally of New Zealand… as well as strong conference business. Which are the hottest segments and markets to watch? Conferences will continue to be important to us with such a state of the art inventory in our hotel group. Heritage Queenstown's award-wining purpose built Icon Conference Centre with unrivalled lake views, continues to host prestigious conferences and events. We are also pleased to announce a 700 person capacity conference centre development adjoining our Nelson hotel. It will be completed in late 2012 and will create some great opportunities not only for the hotel but also for the region, due to its scale. How important is a lift in domestic tourism? Domestic tourism will be vital. Our hotels offer convenience and value to the local market with self contained suites and excellent recreational facilities with golf courses, tennis courts, health clubs and swimming pools so we are well positioned for this market. What’s in the development pipeline for 2012? The Heritage Boutique Collection will continue to grow. We have five properties already in the Collection situated in prime locations, with two properties in the Bay of Islands, a new estate in the Waitakeres near Auckland, plus Rotorua and Akaroa. Why will Australasia/South Pacific be a key region in 2012? Our proximity to Asia is key. The emerging market of China presents possibilities for the tourism industry in Australasia. What are the major issues facing the hotel industry at present? Rising costs, including compliance, rates, utilities and especially insur-ance have all increased in the last year with no significant pick up in rate to absorb these increases. Is the luxury leisure market well and truly back, or how far is there to go? We have had a great year for our luxury brand, Heritage Boutique Collection, with reports of 40% increase in trading since joining the Heritage Group. This tells us two things, our brand adds value to the boutique property and there is a market there for those who wish to pay more, for some extra service and comfort.

What is your company’s X-factor in 2012? Well presented, well maintained, always improving through new con-cepts and ideas, high quality spacious inventory; many with additional in-room facilities of kitchens and laundries which both corporate and leisure markets respond well to. We position ourselves as offering 'some-where special' to stay for guests whom we treat as 'someone special'.


What are your expectations for performance in 2012?I am cautiously optimistic. Projections for reasonable growth in GDP The emerging market of in total number of people employed, com-bined with limited hotel supply growth should underpin the broader hotel market. However, the current European economic situation and expectation of a strong Australian Dollar will provide headwinds. Vol-atility and a two/three tier hotel market will continue. I predict 3-6% RevPar growth but with more downside risk than upside risk to that figure.

Which are the hottest segments and markets to watch?Corporate and short-stay leisure (1-3 nights). Anything with leverage to the mining industry.

How important is a lift in domestic tourism?Given it accounts for such a large proportion of total tourism in Aus-tralia, it is essential. Especially with a high Australian Dollar luring Australians overseas in record numbers and limiting inbound tourism from traditional markets.

What's in the development pipeline for 2012?It will differ according to each segment but will be below long-term system growth due to investor uncertainty and a renewed credit squeeze from the banking sector. Expect more growth in the CBD than regional areas and new-builds to lean towards mixed-use.

Why will Australasia/South Pacific be a key region in 2012?Because it has better economic growth than many areas of the world and offers a relatively safe investment climate.

What are the major issues facing the hotel industry at present?Hotels’ ROI on construction cost, perceived lack of value of Australian hotels and destinations relative to the international competition and the issue of skills shortage.

How much of an impact is the growth of low-cost airlines having on your business?It is hard to quantify but more people coming through the airport doors is great for general hotel market performance, which flows onto our business. Due to our market mix, we are not really affected by the negative consequence of low cost airlines while Australians are choosing South East Asia, New Zealand and the South Pacific for their annual holiday rather than in Australia.

Is the luxury leisure market well and truly back, or how far is there to go?I don't think it ever really left. It just whispered rather than shouted to ensure it was not seen as ostentatious. Given growth projections in both Australia and Asian wealth I am very optimistic about its future.

AUSTRALASIANLeAdeRS

Lancemore Group

JULIAN CLARKCEOLancemore Group

How sustainable is your company?Very. Financially we have top-tier hotels, a diversified market mix and our STR stats have showed we are gaining market share. Environ-mentally we have always been top-tier due to both design and inter-nal policies.

What is your company's X-factor in 2012?Daring to do things differently to firstly deliver a memorable customer experience and secondly tailor a value proposition to each owner’s specific needs. We believe that with a growth mindset there are many opportunities in the current marketplace.


What are your expectations for performance in 2012?Mantra Group has invested time in ‘Knowing What Matters’ – more than just a company ‘mantra’ it is what forms the basis of good busi-ness. Our performance will be measured not just on the balance sheet but also through building and maintaining relationships and estab-lishing and delivering what matters most to all of our stakeholders – from leisure guests, to corporate clients, PCOs, suppliers and our own-ers. This approach has been the catalyst for improving our business in 2011 and into 2012 and beyond. In 2012 we will be launching the Peppers brand into CBD locations and expanding our already estab-lished leisure network. We also have a few new properties joining the Mantra brand. So for us 2012 will be a year of growth and continued focus on our core brands.

Which are the hottest segments and markets to watch?Mantra Group is always looking to expand our network in Asia but any move into this region will be a strategic one to enhance our brands - which we have worked solidly to grow domestically - in the interna-tional market. We cannot underestimate the domestic market though. Hot spots include most major CBD location but also regional locations associated with the mining industry. We have an opportunity to ex-pand the Mantra brand into key regional locations and we have a for-mula for expansion which is viable. So, for the first time in many years we will embark on new build properties outside of the CBD locations.

How important is a lift in domestic tourism?Mantra Group reported a significant lift in revenue for 2011. We have defied industry trends in doing so and the key to our success is down to basics – offering a strong product and an effective marketing cam-paign. Domestic tourism has performed reasonably well given the tough competition from Asia and further afield. Mantra Group is the largest resort operator in Australia and we have witnessed significant growth in certain markets - in particular the large conference and lei-sure resorts located within 2 hours’ drive from CBDs. We believe the high outbound numbers from Australia will continue for many years

AUSTRALASIANLeAdeRS

Mantra Group

BOB EASTCEOMantra Group

to come. The Australian Dollar will fluctuate however the key driver remains the proliferation of low cost carriers servicing our market in-ternationally. Our challenge therefore is to sharpen our offering and tailor our product and service to accommodate the changing needs of the domestic traveller. It requires investment and constant research. To this end, Mantra Group’s organisational structure is both conducive to and focused on delivering these essential requirements for success.

What’s in the development pipeline for 2012?The industry and travelling public will be pleased to see a lot of activ-ity with the Peppers brand this year. We have a few signature resorts joining the Peppers network and two new Peppers CBD properties including a very sexy new product in Fortitude Valley in Brisbane. We also have a few Mantra properties in CBD markets that should com-mence late 2012 and early 2013.

Why will Australasia/South Pacific be a key region in 2012?A brand new Peppers property in Fiji is scheduled to open in late 2012. This is a very exciting project for Mantra Group – our first in Fiji, and the first outside our established networks in Australia and New Zea-land. The South Pacific will continue to be a key tourism region, par-ticularly for Australians and New Zealanders who will soon be able to enjoy the familiar level of Peppers luxury and service that they enjoy at home. How much of an impact is the growth of low-cost airlines having on your business?Obviously low cost carriers are making it attractive to travel to Asia and elsewhere – Australia can’t compete on price alone but the value-add as a destination is where we stand out. Quality accommodation and unique locations make for a memorable holiday experience which Aus-tralia has in abundance. Domestically, low cost carriers have enabled greater visitor numbers to all major destinations in Australia and have given rise to the short break phenomenon. It also assists our interna-tional travellers to visit more locations for less. It has obviously created an outbound boom and this remains a core challenge but it should be noted though that the low cost carriers also have the ability to drive greater business into Australia and we are yet to experience anywhere near the full extent of this potential. The Asian market will embrace low cost carriers and the upside potential for Australia is enormous. Is the luxury leisure market well and truly back, or how far is there to go?It’s back. The luxury resorts we have opened in the last 18 months have been embraced by our customers – far exceeding our expecta-tions. The Peppers Broadbeach property, for example, is averaging over AUD $350 average room rate and occupancies above 80%. In an otherwise flat market this demonstrates the willingness of travellers to pay for premium offerings. The impending growth of Peppers network is also an indication that luxury travel is alive and well. The difference with Peppers Resort brand is that whilst it offers an attractive luxury product it is still positioned so it is accessible for families and therefore casts a wider net in terms of guests it attracts. This has allowed the brand to adapt to fluctuating budget requirements of travellers.

What is your company’s X-factor in 2012?Dynamic and fresh marketing campaigns that make our brands in-stantly recognisable to guests – past, present and future. The appoint-ment of Pat Rafter as the new Ambassador for Mantra Hotels, Apart-ments and Resorts, and the subsequent marketing launching the new ‘Room for Everyone’ campaign has paid dividends both on financial return and credibility by association with one of Australia’s favourite sporting sons. The Pat Rafter name is synonymous with integrity and innately Australian – to have him associated with Mantra speaks vol-umes and our customers have responded with great interest.


AUSTRALASIANLeAdeRS

What are your expectations for performance in 2012?I am highly optimistic about 2012. Although our current forward bookings are not what they were in previous years, we are now see-ing a trend of bookings within 4-6 weeks, so I am quietly confident of strong occupancy in 2012.

Which are the hottest segments and markets to watch?From our experience it has to be experiental travel. Our guests want to take away life-long memories. They also are seeking authenticity, and want to indulge in some 'real' experiences that are unique to the destination, and I feel we provide that at each of our three lodges.

How important is a lift in domestic tourism?It’s highly important. Our destination is so far away from the major markets of the Northern Hemisphere. Unfortunately many of our Northern Hemisphere guests are of the opinion New Zealand is a des-tination to visit between December and March, when it actually offers so much on a year-round basis. We are heavily reliant on the local market to fill our rooms over the long winter periods. We have de-veloped some wonderful food and wine events over winter which are very popular with the Australian and New Zealand market, and these events continue in 2012 with world-class chefs like Tetsuya Wakuda and Josh Emett.

What’s in the development pipeline for 2012?At this stage we are continuing to strive to bring together the best pos-sible product/experience for our guests, and to this end we are working on even more authentic experiences that will have our guests talking for years to come and sharing the great memories with their friends.

Why will Australasia/South Pacific be a key region in 2012? New Zealand will hopefully benefit from the recent World Cup Rugby and the upcoming release of 'The Hobbit'.

What are the major issues facing the hotel industry at present?Competition, both nationally and internationally. In our luxury sector, there are many more options available, and we are competing in a worldwide arena while at the same time the number of visitors has not grown enough to support all of them. Across the globe tourism boards are aggressively marketing their destinations and it is up to us to claim a space and to truly get our destination noticed by the market segment we are targeting.

How much of an impact is the growth of low-cost airlines having on your business?It provides greater options and more flexibility making it easier for visi-tors come by on short breaks.

MatakauriJAY ROBERTSONOwnerMatakauri, Cape Kidnappers and Kauri Cliffs lodges

Is the luxury leisure market well and truly back, or how far is there to go?I don’t feel it is back and think there is still a long way to go. The aspirational market has reduced globally as worldwide financial un-certain has seen people reduce their spend. The real affluent and top end luxury market are still travelling however, and it is our challenge to entice them to New Zealand.

What is your company’s X-factor in 2012?It will be continuing to offer our guests unparalleled service in great locations.


AUSTRALASIANLeAdeRS

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What are your expectations for performance in 2012?We expect 2012 to be as good as 2011, as long as the Australian dol-lar remains strong. Without the strong Australian dollar in 2011, we would most certainly have operated at half our occupancy capability on a very low average room rate. With the high Australian dollar, event promoters are now well placed to attract major international artists and theatre to Australia, including Eminem, Elton John, Jersey Boys, and Mary Poppins. Our properties in major cities like Sydney, Mel-bourne, Brisbane and Perth enjoy the flow-on effect from these vis-its with guaranteed high occupancies for the duration of each tour or production.

Which are the hottest segments and markets to watch?The hottest segment to watch is the leisure market. This was the seg-

ment that saved us in 2011 for the reason outlined above. The segment to watch is inbound travel as Europe and the US are in turmoil and there are significantly cheaper holiday options now available in Asian destinations with the increase of low-cost carriers.

What’s in the development pipeline for 2012?A new wing for our Perth flagship property Metro Hotel Perth; an extra floor for our Brisbane property Metro Hotel Tower Mill on Wickham Terrace, an extra floor at Metro Inn Miranda; a potential acquisition in Gladstone; refurbishment of our two Sydney CBD properties – Metro Hotel on Pitt and Metro Hotel Sydney Central; refurbishment of our pubs in Adelaide and Perth; and two other acquisitions currently in the early stages of negotiation.

Why will Australasia/South Pacific be a key region in 2012?Because Australasia is politically stable and access is easier because more low cost airlines are now operating both domestically and internationally.

What is your company’s X-factor in 2012?In the current climate of global uncertainty and turmoil, the diversity of our properties and their prime city locations make Metro Hospital-ity Group an attractive choice for those looking for budget and mid-market accommodation.

Metro Hospitality Group

GEORGE BEDWANIChief Operating OfficerMetro Hospitality Group


AUSTRALASIANLeAdeRS

What are your expectations for performance in 2012?I envisage an aggressive increase in average rate. A number of Sydney hotels in the luxury market have completed refurbishments and sub-sequently will adopt a rate driven strategy to recuperate a return on their investment.

Which are the hottest segments and markets to watch?Leisure, from the USA with the new Qantas direct flights from Dal-las, in addition to opportunities from the emerging markets of India and China. Singapore Airlines’ new low-cost offshoot, Scoot, has laid a direct challenge to Qantas and Jetstar on home soil after revealing that its first route will be between Sydney and Singapore. The recently announced additional Qantas A380 flights from Sydney to Hong Kong will also increase the number of visitors to NSW.

How important is a lift in domestic tourism?We have experienced a change in our market mix to reflect a decrease in the international segment and an increase in the domestic segment. The strong Aussie dollar has placed Australia as an expensive desti-nation for international visitors. Whilst we value the support of the domestic segment, it does have a negative impact on average rate. The domestic consumer is savvy and is often sourcing the best hotel deal, in correlation their length of stay is 1.3 days and contributory spends external. Length of stay for an international guest is generally longer and their contributory spends internally.

Orient-Express

RALF BRUEGGERGeneral ManagerThe Observatory Hotel, Sydney Why will Australasia/South Pacific be a key region in 2012?

Aforementioned Asia-Pacific is the largest growth region in the world for tourism, the introduction of new air carriers and additional flights will greatly benefit the Australian market.

What are the major issues facing the hotel industry at present?In the Australian market we are experiencing a shortage of skilled people - to manage the day to day operations of a hotel. I believe we need to make it a sought after career, and work towards reducing our dependency on employees from overseas.

How much of an impact is the growth of low-cost airlines having on your business?I believe there are basically two types of travellers. There are those who book the cheapest flight, and who select the cheapest hotel to have a budget holiday. And in comparison there are travellers who book a cheaper flight and prefer to spend extra on a luxurious hotel. The latter traveller is our target market – in general they have travelled exten-sively and are budget focused in relation to short haul flights. Low cost airlines bring additional travellers into the city and it is unavoidable. Europe is an example of a plethora of low-cost airlines competing for market share and the consumer is the beneficiary.

Is the luxury leisure market well and truly back, or how far is there to go?It did not disappear, but nonetheless during the economic down spending on luxury hotels was reduced. Global spending in 5-star hotels rose by an average of 14% for the first three quarters of 2010, compared to the same period in 2009. Whilst we have not returned to pre-recession levels, the strong growth in spending in 5-star hotel indicates that more affluent travellers are regaining confidence.


w

AUSTRALASIANLeAdeRS

What are your expectations for performance in 2012? In 2012 we expect to see even further improvement in the domestic leisure market. Over the past two years we have seen a positive in-crease in this market and we anticipate it to grow even stronger over the next 12 months.

Which are the hottest segments and markets to watch?It might sound clichéd however the hottest markets to watch are China and South East Asia. The Gold Coast continues to see ongoing growth in that area, therefore it is an area that we will continue to focus on.

How important is a lift in domestic tourism? A lift in domestic tourism is crucial for the Gold Coast. With the excep-tion of a couple of products the Gold Coast has not really been a 5 Star destination up until now. Several higher end products and experiences are now available and a number of refurbished and new hotels have opened which generates better experiences for visitors and improves the destination in general.

Why will Australasia/South Pacific be a key region in 2012? In 2012 we will continue to focus on the local domestic market along with the South Pacific, SE Asia markets. These are the most accessible markets and the areas where we continue to see growth and interest.

After the difficulties of 2011 – earthquakes in both Christch-urch and Japan, ash clouds, European meltdown, late snow followed by periods of too much snow – it is hard to believe

that business will not be vastly better. We have budgeted for double digit growth in accommodation revenues and believe that we are in for a very positive year.

There will be huge growth out of Asia (especially China) with the only negative being the recent Christchurch earthquakes which could dampen the resurgence out of Japan. India will also continue to grow and there is a huge opportunity for airlines servicing New Zealand to grow in this market. With the growth in these markets we need to ensure that we yield them properly. Small high end C&I will be a focus for The Rees – with the added direct flights from Australia and the continued strength of the Australain Dollar, Queenstown is the perfect destination.

Domestic tourism will continue to provide the second highest visi-tor numbers to The Rees – C&I will be a big driver of this as businesses

Palazzo Versace

The Rees

RUSSELL DURNELLGeneral ManagerPalazzo Versace, Gold Coast

MARK ROSEGeneral ManagerThe Rees, Queenstown

What are the major issues facing the hotel industry at present? In general the hotel industry in Australia is very healthy. The two destinations that are suffering are the Gold Coast and Adelaide. As I mentioned, we are optimistic that the new accommodation offering and experiences available on the Gold Coast will help to reinvigorate interest in the destination within the domestic market.

How much of an impact is the growth of low-cost airlines having on your business? Generally our customers aren’t big users of low-cost airlines. However on a wider scale the growth of low-cost airlines has been great for the Gold Coast and for getting people travelling who may not have tradi-tionally travelled by air in the past.

Is the luxury leisure market well and truly back, or how far is there to go? Yes, the luxury travel market within Australia is strong and on the up. At Palazzo Versace we are seeing the best performance from the do-mestic leisure market since the hotel first opened in 2000 – and that is without compromising our rate. However, the international luxury markets travelling to Australia from overseas are not as strong as pre-vious years.

What is your company’s X-factor in 2012? Palazzo Versace’s X-factor is the luxury experiences we offer. We are constantly creating new luxury accommodation packages, exciting events and improving our amenities and services to ensure that we continue to set ourselves apart in the marketplace.

become more confident of their futures. Queenstown is a unique des-tination within NZ as it has four distinct seasons each offering differ-ent propositions – perfect for C&I and Leisure.

In 2012 we are going to keep lifting the standards of our service and add to our offerings to ensure our guests have the best possible experience.

Australia will continue to be our biggest source of revenues and the addition of extra flights into Queenstown and the continuing strength of the Australian dollar will enhance this. An early, long and snow filled ski season will be the icing on the cake. Queenstown is a fantastic C&I destination, especially out of the East Coast and this is a segment that will grow.

The uncertainty surrounding the state of Europe and the US econ-omies and the continuing earthquakes in Christchurch will be wild cards for us in 2012.

Low cost airlines make a destination more accessible and also raise its profile. Queenstown is perfectly placed in both regards - the more airlines and the more flights the better.

The luxury leisure market is alive and kicking – people with money are pretty much sick of being depressed about the state of the world economy. Life is short and this market segement will continue to travel – NZ’s clean green image coupled with the unique friendliness of our people and our indigenous cultures are very attractive to this segment.

The Rees is lucky to have a great team of motivated individuals who love what they are doing – departments are run by skilled people and we allow them to “get on with it”. Our business is agile and not weighed down with process and reporting giving us time to focus on our guests experiences. My ability to travel to our major markets on a regular basis and the support of this by our board sets us apart.


AUSTRALASIANLeAdeRS

What are your expectations for performance in 2012?In 2012 Quest will continue to grow organically. We expect our room rates to grow and occupancy to remain high at around 80%, in line with the overall industry. In 2011, we opened nine new properties in Australia and one in New Zealand expanding to over 140 properties in Australia, New Zealand and Fiji. In the year ahead we expect to open ten new properties in Australia with many of these in regional locations where there is anunder supply of quality accommodation. Broadly, our industry will see the pressure on supply continue, par-ticularly in regional towns experiencing ongoing major projects and new developments. The greatest impact on our industry in 2012 will be business confidence. Although SMEs are showing some signs of posi-tivity, the last quarter of this year has knocked them around, so there are a lot of very nervous SMEs out there. If we see confidence return in the first quarter of 2012, then we’ll see a great year, and in fact a great 2013. The burning question is 'how fast can business confidence rise?'

Any other key observations for 2012?It’s been an interesting few weeks, with news of Accor acquiring Mir-vac’s accommodation assets. I’d expect to see more players who came into the industry as property players seeing this as a good opportunity to exit. There will probably be more mergers and acquisitions through the next 12 months with the bigger getting bigger and the independ-ents continuing on their existing path. It will be interesting to see which brands emerge on the other side.

Which are the hottest segments and markets to watch?The hottest markets continue to be where key industries like mining,

Quest Serviced Apartments

PAUL CONSTANTINOUChairmanQuest Serviced Apartments

agriculture and defence, along with their support services are going. Our growth strategy has and always will be to go where business needs us, and for the past few years, this has been outside of city cen-tres. We’ve seen demand continue in business and industrial parks outside of the CBD or in regional locations. Event-driven tourism will also be an important contributor in 2012. In Sydney we are starting to see demand meeting supply as there has been minimal new supply in recent times. Accommodation brands in Sydney will do well in terms of room rates and occupancy growth in 2012. Melbourne however will probably be at the softer end of the market. Melbourne has had growth in supply over the past two years, but with a lot of activity now outside of the city, Melbourne’s not going to see the same growth in demand it has in previous years.

How important is a lift in domestic tourism?For our business, the focus is domestic business travel and to a certain extent, event-driven tourism, rather than leisure tourism. Australians are doing the overnighter for leisure travel but not travelling domesti-cally for extended trips. If they are taking an extended trip they’re going to New Zealand, Bali, USA and other overseas destinations. With the strength of the Australian dollar likely to continue and strong competi-tion from these markets, this probably won’t change in the short term. What is important is that we have the support of government and fi-nancial institutions to back property development in regional loca-tions. There is so much opportunity and demand in regional Australia, particularly for serviced apartments, so we as an industry need to lobby these groups to get projects across the line where they are needed.

What’s in the development pipeline for 2012?Quest will continue to grow at a consistent and steady pace with an-other 10 properties opening in 2012. They will be in a combination of suburban and regional locations from Werribee in Victoria to Albion in Queensland.

What are the major issues facing the hotel industry at present?To realise the growth in supply that is required to meet the demand, we need to, as an industry, get the property investment community to look seriously at the accommodation industry. We as an industry need to stand up and demonstrate that this is a solid, viable invest-ment option. We need to demonstrate what our industry is doing over the next 5-10 years so we can build confidence in our asset class and it is incumbent on us all to work on this.

Is the luxury leisure market well and truly back, or how far is there to go?Consumers at the top end of the market have and always will travel, but when they travel to Australia, it’s for the adventure trip rather than the true luxury experience. While Australia offers some outstand-ing high-end accommodation and travel experiences, we don’t really compete in luxury leisure market on a global scale. Consumers looking for real luxury are also looking for what’s new so unless there is ma-jor investment in this segment in Australia, it’s unlikely a true luxury market will emerge.

How sustainable is your company?We are only as sustainable as our customers are. If the mining industry for example collapsed tomorrow, it would have impacts on parts of our business.

What is your company’s X-factor in 2012?In 2012 we will continue to focus on the business traveller and seek out locations where they need quality accommodation. With our prop-erties owned and operated by franchisees, we will also work hard to ensure we secure outstanding franchisees to continue delivering the Quest experience across Australasia.


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What are your expectations for performance in 2012?We expect to see the continued strengthening of the corporate travel market in key Asia-Pacific destinations. In Australia, these improve-ments are in locations that are either directly, or in support, of the resources industry expansion. I believe the Australian leisure market will see tepid signs of recovery, having endured almost four years of extremely difficult trading conditions. In terms of how this translates to commercial performance, we would see RevPAR increasing across the entire network, as a result primarily of Average Daily Rate growth.

Which are the hottest segments and markets to watch in Asia-Pacific?The major expansion in the Asia travel markets will bring welcome demand to the Australian hotel industry... as we see growth in the corporate travel and increasing leisure travel from markets like China.

What’s in the development pipeline for 2012?In December 2011 we opened our new Chifley Executive Suites con-cept in Newcastle, New South Wales. We anticipate that 2012 will continue to see a strong expansion in the serviced apartment sector, either via acquisition, and/or commencing construction of new pro-jects, that are more likely to open in 2013.

Why will Australasia/ South Pacific be a key region in 2012?The key regions in 2012 are those countries whose economies con-tinue to expand. No doubt the major themes will be the ongoing ex-pansion and growth of China and India, and those fast growing Asian economies such as Thailand, Vietnam, Indonesia and Malaysia. Aus-tralia remains a beneficiary by providing significant commodities as part of the Asian expansion and is beneficiary in terms of increases in both corporate and leisure travel.

What are the major issues facing the hotel industry at present?The key pressure point in the Australian industry remains the rela-tively high cost of labour, not that this is a new phenomenon, but it continues to be the single highest cost factor. Increases in utility costs and other costs affected by the Carbon Tax will also start to make their impact through 2012, causing our industry to seek ways to adjust to a new Carbon Tax cost pressure.

How much of an impact is the growth of low-cost airlines having on your business?The expansion, particularly of the international low cost airlines, will continue to open up new inbound markets... which are necessary to replace the legacy markets of the US and Europe. The entire industry is beginning to feel some of the demand push of markets like China and India, which will bring new consumers with new expectations to Australia...and will create new opportunities for hotels in the locations these consumers choose to visit.

Is the luxury leisure market well and truly back, or how far is there to go?There is always a luxury market, I am not sure it ever left. However, it is a very discerning traveller. There remains, in my mind, a ques-tion as to whether we (Australia) can compete for an increased market share in the luxury market, due to the lack of true luxury product, and our inability to provide the service levels expected by this market. The competition for the luxury market is intense globally, and where ser-vice remains such a critical component in the experience high labour cost markets (like Australia) will remain highly prejudiced.

How sustainable is your company?Sustainability is a broad concept and covers more than environmental issues. I believe in 2012, that we will focus, in respect of sustainability, beyond simple concepts of energy efficiency and recycling, to more sophisticated management of the carbon based utilities costs. This will result in a focus on electricity consumption and hot water production and will see some sophisticated redesign and retro-fitting of major capital components in hotels. Our industry is analogous to the airline industry, where those airlines with the most fuel efficient planes (or hotels) will be the most competitive.

What is your company’s X-factor in 2012?In addition to our new brand ‘NEXT’, 2012 will see our organisation start to capitalise on its decision to become part of the Asian hotel millennium, by becoming a Singapore based company, developing its Asian hotel network, and introducing new capital from Asia to Aus-tralia. As always in our industry the X-factor is about having a team of innovators who aspire to build a great organisation, who see value in their contribution to the organisation, and who see an opportunity to grow with the organisation.

SilverNeedle Hospitality

JONATHAN WOOLLERSenior Vice President – OperationsSilverNeedle Hospitality


AUSTRALASIANLeAdeRS

What are your expectations for performance in 2012?Our outlook for 2012 is robust. Occupancies in 2011 have reached the point where we will continue to see rates rise. We have solid group and transient pace. Our largest customers - global corporations, pro-fessional firms, growth customers and higher income individuals are busy, look to stay busy and will continue to travel. Because of this, we are performing well, even in the face of tepid economic growth in the developed world. One of the many highlights in 2011 was our achieve-ment on hitting the milestone of opening our 200th hotel. This growth momentum will continue in 2012. In 2012 we will continue to develop and implement initiatives focused on delivering greater experiences for our guests. In mid-2011, we launched the Starwood Personalized Travel - a program of initiatives designed to serve the unique prefer-ences of Chinese travellers in 19 hotels in gateway cities across the globe. The program was well received and will now become a brand standard for Starwood properties starting in February 2012. We also introduced online ratings and reviews on our hotel websites to allow guests to review and rate their hotel stays – what we did well and not so well. Initiatives like these reinforce our strategies to continue focus-ing on emerging markets and staying ahead of the competition.

Which are the hottest segments and markets to watch in Asia-Pacific?Asia Pacific will continue to be one of the fastest growing divisions within Starwood Hotels and Resorts. Demand for our high-calibre brands continues to soar across Asia's many dynamic markets, driven by phenomenal economic growth and significant increases in out-bound travel, particularly from China and India. We are experienc-ing robust demand in many of Asia's other fast-growing economies including Thailand, Malaysia and Indonesia. In Malaysia, Starwood will grow 30% in the next three years with plans to open another four hotels including Four Points by Sheraton Sandakan, Sheraton Desaru Resort, The St. Regis Kuala Lumpur and W Kuala Lumpur. In Indone-sia, Starwood will add another four hotels by 2012 to its current port-folio of 12 properties. We recently opened Aloft Bangkok Sukhumvit 11 in Thailand, and with the debut of W Bangkok this year, Thailand will be the first country in the South East Asia region to have eight out of nine Starwood brands in one city.

What’s in the development pipeline for 2012?Our growth momentum will continue in 2012 as we open nearly 35 hotels and welcome over 10,000 new associates to the Asia Pacific re-gion. Here in the Pacific, Andrew Taylor joined our team as Director of Acquisition and Development to ensure that we grow and build on the momentum of Asia, home here in the Pacific region with focus being

on Australia. We are thrilled to start 2012 introducing the renowned Luxury Collection Brand into Australia, with the signing of two luxury resorts to join the collection in February. 2012 will mark an important milestone in terms of growth in the Asia-Pacific region. We will open Starwood's largest hotel with 4000 rooms at the Sheraton Macao Ho-tel, Cotai Central and over 5000 sqm of conference space.W hotels will debut its first W hotel in Singapore - W Singapore - Sentosa Cove, in Bangkok with the opening of W Bangkok and mainland China with W Guangzhou.

Why will Australasia/South Pacific be a key region in 2012?The current activity in our region is testament to the significant level of investment by owners, developers and signifies the strength of the Starwood Brands in the Pacific. With Andrew Taylor taking the lead, we have a balanced growth plan of focusing our strength in expand-ing our portfolio in both new builds, conversions as well as growing our mid-scale brands. Deal momentum is building and we expect to grow our pipeline in both 5-star and mid-scale brands for this region – for example Aloft. We have seen a marked increase in development activity over the last few months. The new Sheraton Melbourne and Sheraton New Caledonia both commenced construction in 2011 and Sheraton Mirage Gold Coast will complete its $20 million refurbish-ment in April 2012. This contributing to the strength of the Sheraton brand is driving meaningful growth in development for sister brands like Aloft which is set to make its mark in the Pacific and increase our footprint over the next five years. Conversion, adaptive reuse and new builds are all viable. With the right partners working together on the right properties in the right places, in capital cities and regional areas, Starwood will drive performance and lead prosperity and continue to contribute to the $20 billion dollar Tourism industry in Australia.

What are the major issues facing the hotel industry at present?The US debt ceiling debate was in the news, and today all eyes are on Europe. And there's continued talk of a possible hard landing in China. All this uncertainty has eroded business confidence. And while it seems unlikely, we cannot rule out the possibility that today's issues are a prelude to a full-on double dip. What we can say is that so far, this does not feel anything like 2009. And that despite the headlines, the impact on Starwood are far less dramatic than you might think. Even in a lacklustre economy, both our corporate and leisure custom-ers are doing pretty well - and still traveling. Our business in many emerging markets continues along a strong trajectory.

Is the luxury leisure market well and truly back or how far is there to go?Yes, well and truly. Our performance in 2011 supports this. The debut of The Luxury Collection in Australia, reiterates the business sentiment that people (or, Australians) are spending differently. They spend on experiences, rather than traditional retail. They want to know what they are getting for their money and want to enjoy it and remember it and tell others about it.

What is your company’s X-factor in 2012?Starwood's brands continue to break away from the competition. In addition to growing our pipeline, we will continue to focus on giv-ing our guests better experiences. You can expect more personalized programs for our guests as well as tailored tools and services for our customers to be rolled out in 2012.

StarwoodPacific Hotels

SEAN HUNTRegional Vice PresidentStarwood Pacific Hotels and Resorts


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What are your expectations for performance in 2012?Toga Hospitality is expecting to see continued strength in demand that will drive high occupancies. The strong rate increases that are currently being achieved in market speak to the ongoing corporate demand.

Which are the hottest segments and markets to watch?In the Australian market, Perth, Brisbane, Sydney and Canberra re-main the outstanding performers for Toga Hospitality’s hotel portfolio.

How important is a lift in domestic tourism?The end of 2011 saw a lift in domestic tourism. While there are still many people going overseas due to the strong Australian dollar, more balance is being achieved as many people elect to stay at home and to take shorter breaks due to economic uncertainty. Toga Hospitality has strong cut-through in this market, in part because of the strong relationship marketing we have in place. With a solid sponsorship and partnership marketing platform in place, Adina Apartment Ho-tels, Medina Apartments Hotels, Vibe Hotels and Travelodge Hotels have excellent presence in market. Some of our new leading partner-ships are with Sydney Festival and Opera on Sydney Harbour, along with our long standing sponsorship with Sydney Theatre Company, Australian Chamber Orchestra and the NSW Waratahs, to name a few.

What’s in the development pipeline for 2012?Toga Hospitality is fortunate that our strong performance in mar-ket seeds a solid development pipeline with new and existing inves-tors. We have many new hotels currently in development (over 10% growth already locked in), including Adina Apartment Hotel Bondi Beach opening early 2013, along with Medina Executive Norwest and Medina Executive Mascot that will open towards the end of 2012. Adina Bondi Beach is comprised of a brand new 113 room apart-ment hotel that is part of a mixed development comprising of luxury residential apartments and two levels of retail which will include boutique grocers, cafes and restaurants. Medina Executive Norwest is another new build for Toga Hospitality and will be located within Sydney’s thriving commercial hub, the Norwest Business Park at Baulkham Hills. Medina Executive Mascot will be a welcome addi-tion to the Sydney market affording guests easy access to both the domestic and international airport terminals. The hotel will feature 153 one, two and three bedroom apartments and with studio rooms, a restaurant and bar and two conference spaces.

Toga HospitalityRACHEL ARGAMANChief Executive OfficerToga Hospitality

Why will Australasia be a key region in 2012?Australasia continues to be the most resilient region in the world, an-chored by the growth of China. With a pipeline of new developments already in place in Australia, Toga Hospitality continues to build on solid foundations.

What are the major issues facing the hotel industry at present?The biggest issue that Toga Hospitality and the hotel industry are facing is the lack of supply in CBD areas juxtaposed with the high cost of development. Finding good people will always be a primary issue. At Toga Hospitality, we have a strong belief that “companies don’t succeed, people do”. Our ongoing development programmes such as our Future Leaders Programme, Management Leadership Programme and Senior Management Leadership Programme as well as our strong mentoring programme within the company sees an outstanding pipeline of future leadership within the company.

How much of an impact is the growth of low-cost airlines hav-ing on your business?The growth of low-cost airlines has had a positive impact on Toga Hospitality’s business. Capacity takes people out of Australia as well as bringing them in, so we see a balance. More people continue to take advantage of low-cost carriers to visit a city centre or travel for a sporting event or shopping trip. Ten years ago, people might have visited family once a year whereas now, low cost airfares facilitate more frequent visits. I believe the low-cost airlines have brought about much more opportunity in the event space.

How sustainable is your company?Toga Hospitality is constantly looking at ways to reduce our carbon footprint. We have energy costs as one of the KPIs on every one of our hotels’ Balanced Scorecards which holds the entire company accountable for our footprint. There is a relentless focus across the company and our sustainability committee is pragmatic and highly effective. We look forward to further reducing our footprint in 2012 with new initiatives continuously being implemented.

What is your company’s X-factor in 2012?Toga Hospitality has always been an operator who thinks like an owner – with a relentless focus on driving revenue, paying forensic attention to cost and having a guest focused culture. Our X-factor though is, and will always remain, the fact that relationships are at the heart of everything we do and we strongly believe that business is built on relationships.


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What are your expectations for performance in 2012?Due to the nature of our operations I am mainly focused on leisure business to remote destinations. 2011 was not a great year for this spe-cific segment and I expect this to remain the same for the first half of 2012. Hopefully we will see a few interest rate cuts which always seems to invigorate the domestic market. We are planning for a grad-ual pick up from the second half of 2012 onwards. Which are the hottest segments and markets to watch?Stepping away from our own and very specific focus and looking at the bigger market I would expect corporate meetings to do well, as is often the case in economically turbulent times. I would also expect the resources sector to continue to perform strong from which Western Australia and Queensland (corporate) hotels should benefit. How important is a lift in domestic tourism?Very important especially now since leisure business in big parts of Queensland and remote destinations in other states have had a dif-ficult 2011. A lift in the domestic market would for many resorts be an opportunity to increase volume in 2012. Why will Australasia/South Pacific be a key region in 2012?As a destination for international leisure I am not sure this region will play a key role in 2012, although we will hopefully see improvement over 2011. We are a long haul and therefore expensive destination for our traditional markets and with the economic climate in Europe and Japan being what it is I do not expect significant volume increases from there. New markets, especially Asian countries and specifically China, have huge potential but need to be further developed before they will make a real impact to Australian resort destinations. Therefore domes-tic and intra-regional tourism will be very important for our part of the world in 2012. What are the major issues facing the hotel industry at present?I won’t go on complaining about the high exchange rate and the slow-down from traditional international markets but an operational issue that weighs heavy on my mind is the cost of labor in Australia as well as the challenges for our industry to attract and retain talent, the latter especially for non chain hotels. How much of an impact is the growth of low-cost airlines on your business?For us as a remote resort location with its own airport low-cost airlines are of tremendous importance. The Virgin Australia flight from Sydney to Uluru has worked extremely well for us and I hope that someday soon we can get low-cost airline connections to Melbourne and Bris-bane as well.

Voyages Indigenous Tourism Australia

KOOS KLEINManaging DirectorVoyages Indigenous Tourism Australia

Is the luxury leisure market well and truly back, or how far is there to go?Affluent guests who stay in properties like our Longitude 131 are less price sensitive so we have not really seen a reduction in volume there. I understand that is the same for many of the other members of Luxury Lodges. I think many larger 5 star resort hotels have had challenges though and I expect that this segment of the luxury market will need some more time still to return to pre GFC levels of business. How sustainable is your company?Ayers Rock Resort was built before eco hotels were in vogue. Having said that, with the present renovations and further future upgrades we ensure proper care is taken with regard to having any negative impact on the environment. What is your company’s X-factor in 2012?From 2012 onwards we will position ourselves ever more as an Indige-nous Centre of Excellence in Tourism where guest experience genuine Indigenous interaction. Together with the magic of Uluru that makes a very special combination. Another major development is the opening of a new conference centre in August.


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What are your expectations for performance in 2012? We expect double-digit growth in room revenue for 2012 with GDS still being the strongest channel, followed by the website booking en-gines and Designhotels.com.

What’s in the development pipeline for 2012? For several years a Sydney property has been on top of our wish list and we are excited to finally have found a strong partner in the new QT Sydney. The hotel will open in the second part of the year. It’s the perfect fit for our client base and will be worth the wait. On a global basis, we see a growth of 6% in our portfolio to approximately 240 unique properties by the end of 2012. EMEA (Europe, Middle East and Africa), which is by far our strongest region, is still dynamic with many new developments in France, the UK, Switzerland and Austria. For APAC (Asia-Pacific), we see big growth potential in China, Korea, Japan and India and in the Americas our pipeline covers properties in the US, Mexico, Panama and Brazil.

What are the major issues facing the hotel industry at present?In terms of macro-economic developments, the insecurities especially in the US and the Euro Zone continue to be a major threat. Looking at our booking streams there is a clear shift from GDS and Voice to online and mobile channels, which many hoteliers have not yet re-alised. Every second booking is now done online and hoteliers need

What are your expectations for performance in 2012?After only two years Elite Resorts of Asia Pacific continues upon its excit-ing showcase channel developments with the introduction of outstand-ing new resort members to its current over 70 memberships from 14 countries throughout the APAC region; new product initiative and ever expansion of Elite Living portfolio of luxury resort residences for sale, exchange and display; and Elite Luxury Alliance , a high-end uniquely APAC luxury brands displayed and retailed to the global consumer of luxury merchandise, uniquely APAC travel products and lifestyle.

How important is a lift in domestic tourism in Australia?For Australia it is the essential core element and Australia has no sig-nificant option. This position has been self created as it was the easiest option. This current non-lift is the concern.

What are the major issues facing the hotel industry at present?Throughout the Asia-Pacific region (if not globally) and particularly within Australia, the primary concern is the quantity and quality of available, trained staff and management at all levels. All destinations

Design Hotels

Elite Resorts of Asia-Pacific

CLAUS SENDLINGERFounder and CEODesign Hotels

MARK GREEDYChief Executive OfficerElite Resorts of Asia-Pacific and hotels are forced to operate at well below par in both quantity and

quality to the significant cost of customer satisfaction, perception and demand. There is a significant need for an officially sanctioned, ac-cepted and respected online hospitality training method and qualifica-tion that in turn qualifies and earns the employee salaries, benefit and recognition enhancement.

How much of an impact is the growth of low-cost airlines having on your business?As always, airlines make the destination, and hotels and resorts ac-commodate it. Low cost carriers (LCCs), or any carriers for that matter, are the answer. With the LCCs accepting their commoditisation and other airlines being towed to this conclusion, customers are now tak-ing the opportunity to spend their dollars on luxury accommodation and experiences rather than their seat on a plane.

Is the luxury leisure market well and truly back, or how far is there to go?I do not believe this segment has come back to its pre-GFC mode and has a long way to go before high living extravagance is the mode.

What is your company’s X-factor in 2012?Elite’s X-factor is a small band of creative and visionary staff support-ing “the finest, together” selection of great APAC resort products, des-tinations and lifestyle products.

to face this new challenge and allocate funds for digital marketing. In many global cities the trend is towards oversupply and the winners of the future will be the niche players, who are able to connect with their customers and deliver a curated experience of their neighbourhoods.

How much of an impact is the growth of low-cost airlines having on your business?With more routes giving easier access we see many affluent custom-ers taking advantage of low-cost airlines, especially for short getaways and instead spending their money on unique hospitality experiences with quality restaurants and spas. This high/low spending phenom-enon echoes trends in fashion, retail and interior design.

What is your company’s X-factor in 2012?I have been personally working with a small team to realize a tempo-rary “pop-up” camp with 99 rustic cabanas on the pristine Caribbean coastline in Tulum, Mexico. Papaya Playa: A Design Hotels Project opened in December 2011 and will run until May 2012. Taking inspi-ration from the pop-up phenomenon happening around the world in the form of retail, art and gastronomy, we felt that now was the time to translate it into hospitality. The project may come as a surprise for those who associate Design Hotels with bold architecture and striking design, yet equally important are the intangible qualities – the sense of community, connection and belonging, as well as the personality and vision – which make each hotel so one-of-a-kind. With this project we hope to give our guests a deeper understanding of what Design Hotels stands for, and why our Made by Originals core message rings true in so many shapes, places and forms.


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Preferred Hotel Group

Worldhotels

LYNNE IRELANDArea Managing Director – Australia, New Zealand and Pacific Preferred Hotel Group

In 2011, Preferred Hotel Group (PHG) reached a major milestone. We now offer more than 850 best-in-class hotels and luxury resi-dences in over 70 countries within five distinct global brands.

As the landscape of distribution changes and as chains launch similar luxury brands to PHG, we’ve stayed a few steps ahead by leveraging technology, growing in niche markets and hiring industry leaders with expanded resources across 32 offices globally.Flexibility is essential in today’s world and that is appealing to hotel own-ers. We’ve seen an increase in groups aligning with PHG over the last two years, leveraging PHG’s training, analysis, buying power and sup-port to enable increased focus on management and brand development.

Education on revenue management will be a core focus for 2012 with training on channel management and dynamic packaging high on the agenda to drive higher RevPAR, maximise consumer spend at time of purchase and streamline systems.

What are your expectations for performance in 2012?I look forward to 2012 with cautious optimism, after a growth of over 50% in revenue in 2011 for the region we foresee a slower growth in 2012, although still double digit – this in view of our enhanced portfo-lio reaching 100 hotels across the region. Also the four largest APAC markets - China, India, Australia and Indonesia are all being relatively recession proof due to their strong domestic travel markets to tap into

Which are the hottest segments and markets to watch?We currently see a large increase in bookings from mobile devices which will catch up fast over the PC bookings from such markets as China where many customers cannot afford computers and will use phone or more affordable tablets to book. In terms of markets - fastest growing have been the BRIC regions - especially after opening offices in Russia in 2010 and in India in early 2011 where our investments have generated excellent returns.

What’s in the development pipeline for 2012?Our development focus is currently very much on China secondary cit-ies, India and Indonesia – with portfolio growth also foreseen in other regions like Australia, Indochina (Thailand and Vietnam) as well as Japan

Why will Australasia/South Pacific be a key region in 2012?Unless more natural disasters strike - our region will be the most prone to survive 2012 without plunging into a recession. Growth will be led by some strong performing gateway destinations like Sydney, Brisbane, Melbourne, Hong Kong, Shanghai, Singapore and Seoul.

What are the major issues facing the hotel industry at present?Number one challenge is the shortage in qualified labour, staff reten-tion as well as the difficulty to attract young talent to join the hospital-ity industry. Second challenge will be for hoteliers to better educate and to grasp the fantastic opportunity coming their way with the rapid development of distribution technology and new booking tools and channels and to keep ahead of the game in this sector.

How much of an impact is the growth of low-cost airlines having on your business?Low cost airlines are a great aggregator for Worldhotels - feeding our hotels in key cities with mainly leisure travellers. They are also helping to bring tourists to secondary cities which are not well served by the major carriers. Overall they are making travel more affordable and ac-cessible – hence more and more spontaneous travel is booked at the very last minute and is feeding our hotels.

What is your company’s X-factor in 2012?Our X-factor is the flexibility with which we approach every partner-ship to make it a win-win proposition. 2012 will mark a turnaround year for Worldhotels APAC with our first branded hotels opening in Wuxi, Chandigarh and Bali.

The two speed economy in the corporate sector will continue with Australasia a key region for resources, ancillary services and tourism. Strong occupancy in major city and resource centres with a lack of room inventory remaining a key issue.

Domestic leisure will start to pickup with increased focus region-ally. Although there is a more conservative outlook for 2012, there will be an element of the market that will still take advantage of the strong Australian Dollar, particularly against the Euro. The demand for luxury leisure product remains, however customer loyalty may lessen as cli-ents seek true life experiences in alternate locations.

New destinations are opening up with airline accessibility in an increasingly competitive environment. Innovative marketing and stra-tegic alliances of low cost carriers are changing our traditional travel patterns, while the Middle East and Dallas create new opportunities long-haul.

Lifestyle segmentation has also strengthened as we adapt to the needs of today’s traveller. City breaks and resort escapes remain strong; however PHG has seen growth in niche products such as Pre-ferred Family for multi-generational travel, Preferred Pride focused on same sex initiatives, the edgy Sterling Design and Preferred Residenc-es for our long-stay guests.

In 2012, we anticipate Australian domestic travel will continue to dominate both the corporate and leisure sectors, with fast growing markets in Asia a key focus for international visitor growth also driv-ing business events.

ROLAND JEGGEVice President – Asia-PacificWorldhotels


SyDNEy IS THE LATEST INTERNATIONAL DESTINATION ON THE LOW-FARE WARS MAP AS ASIAN AIRLINES TAKE AIM AT AuSTRALIAN TRAVELLERS THAT ARE SPENDING uP bIG ACROSS THE GLObE.

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AIR WARSSyDNEy IS THE LATEST INTERNATIONAL DESTINATION ON THE LOW-FARE WARS MAP AS ASIAN AIRLINES TAKE AIM AT AuSTRALIAN TRAVELLERS THAT ARE SPENDING uP bIG ACROSS THE GLObE.

WORDS JAMES WILKINSON


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The war’s begun again and it’s happening in Sydney. Low Cost Carriers (LCCs) are taking aim at the Har-bour City, triggering a price war that’s set to send air-

fares tumbling across the region.What’s quite remarkable at present isn’t just the pricing,

at unbelievably low rates like $99 one-way from Sydney to Kuala Lumpur, but where the driving force is coming from – legacy carriers who could in effect hurt their own business.

Singapore Airlines launched Scoot on December 1, 2011 and announced Sydney as its inaugural destination from “mid-2012” at the time. Then, in mid-January, Air Asia X, an airline that’s now a shareholder of Malaysia Airlines, received approval to launch flights from Kuala Lumpur to Sydney from April 2012.

For the good part of the last decade, Sydney has been the biggest loser when it’s come to low-cost flights thanks largely in part to airlines and governments protecting lucra-tive routes.

While Qantas has only allowed low-cost subsidiary Jet-star to operate to selected international destinations from Australia, it’s surprising that Singapore Airlines and Malay-sia Airlines allowed their ‘juniors’ to have a bite at two of their biggest routes.

For years, the Malaysian Government refused to allow Air Asia X access on the Kuala Lumpur-Sydney route as it protected its flag carrier, which it also owns. On several oc-casions Air Asia X looked at alternatives to Sydney – in the form of flights to Newcastle – but the numbers simply didn’t stack-up.

With one-way flights from AUD$99 in economy and AUD$499 in the airline’s version of Business Class, Air Asia X is attacking the market with full-force and given Malay-sia Airlines is the only other airline flying the Sydney-Kuala Lumpur route, it will be intriguing to see how much damage Air Asia does to its bigger sibling.

Scoot, meanwhile, is flying into a full pattern, with Sin-gapore Airlines (four times daily, including two Airbus A380 flights), Qantas (twice daily, including at least one A380) and British Airways (one Boeing 747-400 service) all operating on the route.

Even before the LCC has launched flights with two-class Boeing 777-200 aircraft, prices have been as low as $800 re-turn including taxes between Sydney and Singapore on the legacy carriers.

How much further the prices drop is yet to be seen, but industry analysts are expecting airfares on Scoot to hover around the $400 return mark at an entry level, something that could have a flow-on effect yields on not just sister car-rier Singapore Airlines, but also Qantas and British Airways.

When the Scoot brand was first revealed to the travelling public in Singapore on November 1, 2011, the airline’s CEO Campbell Wilson said it was the intention of the airline to offer airfares up to 40% less than legacy carriers – albeit with add-ons like meals, preferred seats and baggage like other LCCs.

What’s on offer onboard Scoot won’t be what travellers get on Singapore Airlines, but with former SQ staff in the executive team, including Wilson, the customer service lev-els will be exceptionally high, like the best in the region. For an airfare that costs on average between $200 and $400 each way on the Sydney-Singapore run, that’s great value and it will remain to be seen whether Singapore Airlines can main-tain its four daily Sydney services once the additional seats are dumped into the market.

Since the outset, Scoot has been adamant that the airline won’t bastardise the parent company’s flights, but appeal to a new breed of traveller in the no-frills sector that’s looking for low-cost travel to medium-haul routes.

But we’ve heard that before. Wind the clock back to De-cember 8, 2005, when then Qantas CEO Geoff Dixon an-nounced Jetstar would launch an international airline under the low-cost brand.

“At all times, Jetstar’s international services will comple-ment Qantas mainline international operations, with an em-phasis on inbound and outbound leisure routes,” Dixon said.

This was 18 months after the airline successfully launched domestic flights to a range of leisure routes, primarily up and down the east coast of Australia.

At the same time, he said within five years, Jetstar would be “operating a fleet of 60 narrow and widebody aircraft across its domestic and international network”.

“This expansion will not be in any way at the expense of the Qantas full service domestic and international opera-tions,” Dixon said.

Since then, Qantas mainline has made significant chang-es to both domestic and international operations that has seen Jetstar take over flying to a range of destinations, in-cluding notably Coolangatta (Gold Coast), along with some Tasmanian, Hawaiian and Thailand services.

A Jetstar Airways Airbus A320 (and left)


ident for Asia-Pacific, Simon Barlow, said accommodation properties need to find a way to capture the new-wave traveller, be it low-cost flyers or otherwise.

“Low cost carriers have created shifts in the tourism and travel in-dustry that have seen emergence of new travel destinations and tre-mendous impact on travellers’ behavior,” he said. “This has translated to great opportunities for our hotels with the increase in air travel and frequency of travel.

“To ensure that we capture this opportunity, we must have the right hotel brands that cater to leisure travellers who are travelling economically as well as those who prefer to save on flights but spend more on hotels.

“Increasingly, we are also seeing business travellers (particularly domestic), opting for low cost carriers, which in turn will prompt a rise in the number of hotels that focus on a value for money proposition as well as brand consistency in the region,” he said.

Air Asia X and Scoot combined are expected to bring over 100,000 additional travellers per year to Sydney and in effect, the Harbour City simply can’t lose – except if there’s nowhere for those additional flyers to sleep.

The Tourism and Transport Forum (TTF)’s Chief Executive John Lee said the additional flights are welcome news for Sydney but more needs to be done to boost accommodation inventory.

“The (Air Asia X) announcement also underlines the need for in-vestment in additional hotel capacity for Sydney, where occupancy rates are over 85%,” he said.

“If we are attracting more visitors to Sydney, it follows that they’ll need somewhere to stay (and) we look forward to working with the NSW Government on addressing this key issue.”

With Rydges’ new QT Sydney property on George Street and Toga Hospitality’s Adina Bondi Beach the only two city and fringe hotels currently under construction, it appears there is a lot to be addressed from a Government perspective to keep up with inbound demand at the very least.

Then again, if the Australian Dollar is still riding high over a dol-lar against the greenback in 12 months’ time, those new flights won’t just be full of Australian travellers leaving the sunburnt country – but returning on them as well.

Jetstar eventually replaced Australian Airlines – a carrier that was for four years Qantas’ “leisure-based airline” – on Bali and Japanese services and now operates all domestic New Zealand services for the Qantas Group.

Within just over five years, Jetstar has also created significant bases in Singapore, Vietnam and will soon begin flying from Japan in part-nership with Japan Airlines.

This is how Jetstar, and Air Asia X with its base in Kuala Lumpur, will have a significant advantage to capture a solid share of the in-bound and outbound Asian markets.

Jetstar connects its Singapore hub directly from Perth and Mel-bourne, while other Australian destinations connect primarily through Darwin. When Sydney flights launch, Air Asia X will offer direct flights to the Harbour City as well as the Gold Coast, Perth and Melbourne.

Once Australian travellers get to Kuala Lumpur, they then can con-nect to over 80 destinations in 25 countries on Air Asia X alone while on Scoot, they will be left to fly on other carriers until the Singapore-based airline builds its network, which in the future will include China and other Australasian destinations along with India, Europe, Africa and the Middle East.

Up next, industry analysts expect Scoot to operate flights to the Gold Coast, Brisbane, Melbourne or Christchurch (another Air Asia X destination which was launched in 2011), bringing in valuable in-bound tourist dollars while also allowing Australians and New Zea-landers to travel affordably across the region.

Australian State and Federal Governments are partnering with Air Asia X and Scoot to help boost inbound traffic on the back of the new flights, but with the high Australian Dollar, the impact could be minimal.

The New South Wales Minister for Tourism, George Souris, none-theless is positive about what the new services will achieve.

“Scoot’s arrival gives tourists from the growing markets of China and India more choice on how to get here and enjoy the many attrac-tions and major events we have on offer in Sydney and NSW,” he said.

Tourism Australia’s Managing Director Andrew McEvoy has also taken a positive approach.

“With Singapore now representing Australia’s sixth largest inter-national tourism market, the decision by Scoot to choose Australia as its first port of call is a tremendous result,” he said.

“Tourism Australia, with our state tourism and airport partners, has taken a ‘team Australia’ approach to ensure Scoot has made Australia its start-up priority.”

If there is an impact on full-service flights by the new LCCs and the balance of traveller arriving swings across to the financially-conscious type, you would think that there would be an impact on the luxury hotel market. But thankfully in Australia, luxury hotels aren’t charging as much as their Hong Kong, New York and Paris sister properties and even with a high Australian Dollar, cities like Sydney and Melbourne are some of the most affordable in Asia-Pacific.

Even with that being the case, Carlson Rezidor Hotel Group’s Pres-


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EXCLUSIVE INTERVIEWS WITH

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