p6 ITT June12 10/6/09 19:06 Page 6
news conference report
ITT Conference 2009
June 8-10 ■ Dubai
Undercutting, financial protection and the economy outlook
ECONOMY.
dominated discussions at the ITT conference. Lee Hayhurst,
Full recession recovery
Robin Searle and Rupert Murray report from Dubai
‘unlikely until 2011’
Fisher attacks Jumeirah
THE RECESSION is likely to end in the latter
part of this year but a full recovery of the UK
economy is unlikely until after 2010, the ITT
conference was told.
Rupert Murray.
it does not make things bet- John Walker, chairman of Oxford Economics,
GOLD MEDAL boss Terry ter in the long run,” he said. gave a relatively optimistic assessment of the
Fisher used the ITT platform But one agent thought prospects for the UK and world economy.
to attack Jumeirah and Gold Medal’s attack was He said the size and scale of the recession
other hotel chains for hypocritical. Nicholas McKay, had been predicted by no one and that banks,
chasing direct bookings. managing director of Travel policy-makers and consumers all shouldered the
Fisher (pictured) claimed Designers, said it was a blame for the crisis.
Jumeirah’s pursuing of “joke” for Thomas Cook- Travel and tourism, as part of the service
direct sales was like the owned Gold Medal to attack sector, was likely to be one area that would
breakdown of a marriage. the hotel chain over rela- benefit from the recovery, Walker predicted.
“If Jumeirah and other tions with agents. “The idea that we are going to buy more
hotels change the model “Perhaps Gold Medal mobile phones, more TVs and more cars seems
and look to sell more direct would like to explain to me extremely unlikely,” he said. “If we are going to
stays to consumers, it is why they undercut the retail see a return to relatively healthy growth it needs
the end of the exclusive trade with their own direct- to be services that take up the slack.”
relationship and is tanta- sell division and why their Walker (pictured) was confident the world
mount to adultery,” he said. parent company constantly would not return to its pre-recession state,
“And where Jumeirah goes, other hotels in undercuts the independent sector. I really do not mainly because the amount the banks will be
Dubai follow, so it is important that it carries on think they are in a position to lecture anyone.” allowed to borrow will be limited.
with intermediaries.” But McKay agreed that hoteliers were under- Walker said he expected inflation to rise, to up
Fisher accepted it was a difficult time for cutting agencies and called on agents to put to 6% in some countries, and public spending to
Dubai hotels but stressed the importance of re- them on stop-sell. “We should be supporting be reduced as governments react to their
specting supply chains, cherishing relationships good independent suppliers that support us.” debt problems. And although governments
and trying to sustain sales without panicking. would not admit it, he said they would be
“A short-term fix gives you an initial high but ■ ‘Operator restored my faith’: Letters, p23 happy with a modest rise in inflation because
that would eat into their debt.
GUEST SPEAKER.
Cherie Blair unimpressed by lack of senior women
CHERIE BLAIR believes travel has a long to go “And it has been proven that companies with
before women are equally represented in the women filling some senior positions do better.”
industry’s top jobs. Blair said she was not arguing for boards of
The former prime minister’s wife, a guest directors to be filled with women but believed an
speaker at the ITT conference, is also a high- equal mix worked best.
profile QC – and daughter of a travel agent. In response to a question from Sandals’ Phil
Having championed equality in the workplace Dickinson about how the industry could best
since struggling to get her first job as a lawyer, generate lobbying power over issues such as APD,
she believes progress still needs to be made. Blair said the government did need to be re-
“There is still a lack of women in senior minded of the industry’s importance from time
ttglive.com
positions – women are still not making it to the to time. It was the only question throughout the For the latest coverage of the ITT
top very often,” she said. ITT conference to receive applause.
Conference in Dubai, visit ttglive.com
06 12.06.2009
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