TRAVEL

Hotel sector should capitalise on opportunities

Growth prospects of the hotel sector appear very promising particularly in the short to medium term, says a report by RAM Ratings Lanka. According to industry experts the current capacity of approximately 15,000 rooms (from graded hotels) can only cater to around 800,000 guests per annum, this is insufficient given the government's ambitious target of 2.5 million tourist arrivals by 2016.

Industry experts estimate that the current capacity will have to be doubled to accommodate this influx; this is perceived to be unattainable over the medium term due to the long lead time for hotel development, says the report.

Therefore, existing establishments will continue to benefit from the shortage of rooms and rising rates in the interim. Recent regulations require five star hotels to raise their minimum rates from $100-$125 per night.

This also affects those in the lower categories.

The sector's performance will also be propelled by improved domestic demand against the backdrop of the generally better economic conditions and higher disposable incomes.

Moreover, opportunities abound for existing operators to expand to the northern and eastern regions as well as other tourism zones in turn brightening their growth prospects and financial performance in the long run.

The report has also identified several key challenges that the sector may face when attempting to capitalise on the opportunities presented by the tourism boom.

While banks are willing to lend to established hotels that are part of the large diversified groups, stand alone hotel owners, particularly small and medium sized establishments, face funding constraints over the construction of new hotels and the refurbishment/upgrading of existing facilities.

The banks conservative stance on the hotel sector could be due to the latter's vulnerabality to global and local economic conditions and events.

An additional challenge lies in the area of Human Resources.

Currently employees in the hotel and tourism sector are about 300,000.

Industry experts estimate that close to 1.5 million employees would be needed to cater to the government's targeted number of tourist arrivals by 2016.

As such the country needs an integrated framework for HR development in the hotel industry, says the report.

Historical sites on Internet

Information about religious sites of historical and archaeological importance is being added to the Internet. This is being carried out under the e-Society Program of the Information and Communication Technology Agency of Sri Lanka (ICTA).

As a step in this endeavour information about the Tantirimale Rajamaha temple and archaeologically valuable information about Anuradhapura and Polonnaruwa have been put on the Internet. While photographs relevant to the information have been included, one could get the feel of the sites almost as if he was visiting the locations physically, by viewing them on the Internet as the pictures on view have been taken from various angles.

The website for the Tantirimale Rajamaha temple is www.tantrimale.net and for the archaeological sites of Anuradhapura and Polonnaruwa www.ancientruins.lk.

These websites are available in the English and Sinhala media. ICTA Chief Executive Officer Reshan Dewapura said that it was important to have information about places of historical importance in Sri Lanka entered on the Internet and efforts will be made to extend this endeavour to other sites of historical and archaeological importance.

Eco-Vendor Meet Mart:

Another step towards green hotels

by Omar RAJARATHNAM

From left, Senior Energy Manager Chamila Jayasekara, THASL Vice President Jayatissa Kehelpannala, Project Director Srilal Miththapala and Industry Technical Service Manager, Suranga Karavitya. Pic: Kavindra Perera

"We aspire to reduce water and energy bills of Sri Lankan hotels by 20 percent in the coming four years and are offering free consultation, training and guidance for all hotels in the country to achieve this target," said Project Director of SWITCH-Asia Eco-Vendor Meet Mart Srilal Miththapala at a press briefing on Wednesday at the Ramada Hotel, Colombo. The mart will take place on May 10 at Ramada Hotel where environment-friendly product manufacturers and equipment providers for the hotel trade will meet hoteliers to demonstrate how their products will help hotels go green.

"SWITCH-Asia an initiative funded by the European Commission helps hotels in Asia to switch from bad environmental practices and as part of this initiative, the Eco-Vendor Meet Mart aims at enhancing the environmental performance of Sri Lankan hotels through improvement of cost efficient energy, water and waste management systems.

This will increase market acceptance of the hotels by promoting them as low carbon foot print hotels to attract more tourists as we comply with eco-friendly practices.

Around 114 hotels have registered for consultation of which we have audited 40 hotels. We are happy to accommodate more vendors at the Eco-Vendor Meet Mart if need be to educate hoteliers on the need to switch towards environmentally friendly practices", said Miththapala.

The Meet Mart will comprise products under various categories such as energy conservation and renewable energy through solar energy technology and sustainable biomass energy, water conservation through low flow water fixtures, waste management through waste water treatment systems that produce recyclable effluent and environmental management through organic farming, sustainable landscaping and erosion control.

Sunshine, SilverNeedle to set up and manage 1,000 keys

Sunshine Holdings PLC has announced that its subsidiary Sunshine Travels & Tours Ltd has entered into a joint venture agreement with Nadathur Far East Pte Ltd's, affiliate SilverNeedle Hospitality Singapore, to develop and manage several new hotels in Sri Lanka.

The joint venture is expected to invest approximately US$ 50 million in a phased manner to develop, acquire and manage hotel assets in different parts of the country.

Sunshine Holdings PLC is a diversified conglomerate with interests in Healthcare, Plantations, FMCG, Packaging, Tourism, Telecom and Power. The Group with revenue exceeding US $100 million is listed on the Colombo Stock Exchange and is ranked 35 among the LMD 50, which lists the top 50 listed Sri Lankan companies.

Beginning with the healthcare business in 1967, the group has built strong businesses over the last 40 years, including partnering with the Tata Group in 1992 to form a joint venture in Plantations.

Nadathur Fareast Pte set up SilverNeedle Hospitality Ltd, an investment company founded by N. S. Raghavan, a co-founder of the Indian Software giant Infosys (Nasdaq: INFY). SilverNeedle Hospitality is making investments across the hospitality sector, developing several of its own signature hotels and resorts, and is managing three, four and five star properties across Asia-Pacific.

SilverNeedle plans to have over 10,000 rooms in its network, available across Asia-Pacific in five years, making it not just one of Asia's largest players but also establishing the company as a global leader in the Asian hospitality industry.

SilverNeedle is led by a highly experienced team, which has successfully planned, developed and managed top tier brands throughout Asia.

Sunshine Travels & Tours Limited is a leading travel company providing travel services and solutions for business and leisure travellers.

The company as part of its hospitality foray has commenced operation of heritage bungalows under the brand Mandira.

The company aims ta offering an unique holiday experience through the Mandira Bungalows, which will feature colonial style boutique bungalows in several locations around the island most with some historical significance.

HSBC excursion courtesy DWC outreach

The Department of Wildlife Conservation (DWC) recently organised a two- day educational excursion to Horton Plains for HSBC senior management and staff as part of an ongoing partnership the Bank holds with the DWC. The event was conducted by the Community Outreach Division of DWC.

The team included Director General (DG) of the Department of Wildlife Conservation, Dr. Chandrawansa Pathiraja, Chief Executive Officer of HSBC Sri Lanka and Maldives Nick Nicolaou and thirty five staff members including Nilantha Bastian, (Head of Marketing, Group Communications and Corporate Sustainability).

Participants engaged in hiking and trekking through the landscapes of Thotupolakanda Mountain, World's End, Mini World's End, Chimney Pool and Baker's Falls and gathered information on the preservation and conservation of fauna and flora.

DG/Wildlife Dr. Chandrawansa Pathiraja, said, "We appreciate the assistance given by HSBC.

National Trust launches campaign to save Morris car inventor's home

The National Trust has launched a campaign to save the home of the inventor of the Morris car The National Trust has launched a campaign to raise GBP600,000 to save the "time capsule" home of the man who made motoring affordable for the British masses.

The Morris Motor Company was started in 1910 when bicycle manufacturer William Morris, later Lord Nuffield, turned his attention to cars.

Three years later the two-seat Morris Oxford 'Bullnose' was introduced, helping change the lives of thousands of ordinary people with the dawn of mass-produced vehicles.

As his fortune grew, Lord Nuffield became increasingly aware of the contribution he could make in a pre-welfare state.

As Britain's greatest ever philanthropist, he gave away over GBP30 million (the equivalent of GBP11 billion in today's money) to support education, hospitals and medical research which continue to benefit millions of people around the world.

Nuffield Place in Oxfordshire was his home from 1933 until his death in 1963.

He left the house to Nuffield College in Oxford, which he founded. The College has carefully preserved the house and until recently it has been opened to the public by volunteers from the Friends of Nuffield Place on a limited basis.

Nuffield College has now offered it to the National Trust. However, to open this unique house to the public, and secure its future, the Trust urgently needs to raise GBP600,000.

Richard Henderson, National Trust general manager, said: "Despite Lord Nuffield's extraordinary philanthropy and achievements, he remains relatively unknown.

His home is a wonderful time capsule without any of the 'show' of a multi-millionaire and reveals so much about the man who changed many people's lives for the better.

"We are determined to open the house as soon as possible and to celebrate Lord Nuffield's remarkable story. But we need to raise the funds to get the necessary visitor facilities in place and we hope our supporters will help us to meet our target."

Despite considerable personal wealth, Lord Nuffield lived a modest life and the house and its contents reflect the simple, unassuming home that he shared with his wife.

Many of Lord and Lady Nuffield's possessions are still where they left them, offering an intimate glimpse into their world. Robes worn to official functions, personal letters and books, and framed cartoons and photographs can be seen throughout the house.

Much of the original decoration and most of the furnishings also remain making it a perfect example of a complete 1930s country home.

Lord Nuffield's love of mechanical things can be seen behind cupboard doors in his bedroom which hid a miniature workshop with his collection of hand tools.

It was here that he would relieve nights of insomnia by doing delicate metal work.

Internet

Colombia becoming destination for medical tourism

Colombia is emerging as a new destination for medical tourism, as high medical costs in North America and parts of Europe drive increasing numbers of people to the Third World in search of cosmetic surgery and other procedures.

The Colombian government has taken an active stance to promote its country as a place for travellers to secure high-quality, low-cost plastic surgery and dental care. For example, the average cost of any given cosmetic procedure is four times lower in Colombia than in the United States.

The city of Medellin in particular is determined to set itself up as a premier medical tourism destination. The second largest city in Colombia, Medellin is already a popular tourist destination in its own right.

"Medellin is a wonderful city that offers great healthcare and is ready to welcome an international market of patients," said Lara Stuart of WorldMedAssist, a medical tourism facilitation company. "The services their hospitals offer are competitive and the quality of care is evident."

The Medellin Healthcare Cluster recently hosted nine medical tourism facilitators, agents and insurance companies from Canada, the United States and the Caribbean for a "Medical Tourism Familiaris ation Tour" of the city. Visitors toured Colombian hospitals and other medical facilities, as well as more standard tourist destinations that might be of interest to their customers.

"The cost, quality, and technology present a real option for U.S. patients to strongly consider," said tour participant Kemal Canlar, president of Global Benefit Options. "The organisation of the tour was a perfect blend of site visits, education, information, tourism and networking."

Although 2.2 percent of travellers to Colombia are already visiting for medical purposes, the government believes that the majority are Colombian nationals who live elsewhere. Yet 20 foreigners come to the country for plastic surgery each year, mostly from Mexico, Panama, Spain and the United States.

Internet

Virgin rebrands Australia and Pacific operations

Sir Richard Branson Wednesday announced a rebranding of Virgin's airline operations in Australia and the Pacific in a bid to grab a larger slice of the corporate market from rival Qantas.

Domestic carrier Virgin Blue and its international offshoots, Pacific Blue and V Australia, will all be known as Virgin Australia, with negotiations under way to bring Polynesia Blue under the same umbrella.

British entrepreneur and part owner Branson, who launched the new airline in Sydney with chief executive John Borghetti, said the move would allow Virgin to build a single strong brand recognised globally.

As well as changing the name, Virgin has also dropped the bright red body paint from its aircraft in favour of a more conservative white with red trim as it seeks to revive fortunes after rising fuel prices eroded earnings.

Branson said the Virgin Australia brand represented a new chapter for the airline, which first started flying in Australia 11 years ago.

"I'm absolutely thrilled with the new look and feel of Virgin Australia's domestic product and I know it will shake up the Australian travel market on a larger scale than it did 10 years ago," he said.

Analysts said the move was part of a strategy to shift Virgin, Australia's second-largest carrier, away from low-cost carriers such as Jetstar and Tiger Airways and towards Qantas in the full-service market.

Virgin fired the first shots in this battle by introducing a new Boeing 737-800 and an Airbus A330-200 aircraft to its Australian domestic fleet Wednesday.

More are expected later in the year, complete with luxury leather seating and a gourmet menu designed by Australian celebrity chef Luke Mangan.

"We're going after Qantas's business market and by capturing that business market we will be able to do a lot more for the economy customer," Branson told reporters.

He said Virgin Australia would reposition the business in line with its overseas counterparts - Virgin Atlantic and Virgin America - which have a strong business class offering.

Borghetti added that the brand consolidation represented a pivotal point in the airline's history.

"Virgin Australia will be the airline of choice for all market segments," he said.

"We will do this by bringing the magic back to flying - providing a seamless experience, with excellent service that can be tailored to the individual.

"In re-positioning the airline we have kept all the great attributes for which Virgin Blue is renowned - the 'can-do' attitude, the competitive pricing and the genuine friendly service."

Virgin Australia will operate domestically in Australia as of Wednesday, with V Australia and Pacific Blue operating under the name by year end.

AFP

Tourmaline invests Rs. 150 m on refurbishment
 

Hotel Tourmaline, Kandy has undergone a major refurbishment investing Rs. 150 million. It has been renovated and fully modernised with all modern conveniences. The investment follows a successful year for the hotel which has grown and positioned itself as a leading hotel especially in the wedding venue market and for corporate events. The banquet hall can accommodate 300 guests. Recreational facilities include swimming pool, pool bar, table tennis, carrom and gymnasium. The hotel also has an ayurvedic spa, movie gallery, business centre