Hotel groups prepared for business slowdown

On September 11 the world was horrified as it witnessed a series of catastrophic terrorist acts in the US. While a long-term analysis cannot be formulated in this initial period as diplomatic and military manoeuvring continues, Mark Armsden investigates the possible fallout for Asia Pacific's CEI industry and venues. HOTELS in the region have already braced themselves for a downturn in corporate event business because of the slowing Asia Pacific economies but most large groups have adopted a cautious approach in the wake of September 11. Major hotel groups have already experienced cancellations in the days after the attacks but had moved quickly to deal with the situation and also that of stranded clients. Mandarin Oriental Hotel Group group sales & marketing director Mr Michael Hobson said a clearer strategy would be developed in the coming weeks. "We must divorce the issue of economic downturn that was already being experienced from the recent tragedy in New York," he said. Shangri-La group director of public relations Julia Record agreed it was too early to make long-range predictions on the impact for hotels. Shangri-La executives moved swiftly with a number of decisions on September 12, among them was not charging cancellation fees. Marriott vice-president worldwide sales, Asia Ms Bernadette Dennis said the group also waived cancellation fees. Starwood Hotels and Resorts Worldwide managing director, brand marketing Asia Pacific Ms Nelli Yong agreed the current economic climate will add to some effects on hotel CEI business. Accor vice-president sales and marketing - Asia Rob Hornman said he believed CEI groups would still continue to use Accor properties. "It is really too early to tell. There might be a shift of business, but I believe there will always be a need to hold meetings and events," he said.