1999 must be the year that Pan Pacific Hotels and Resorts must take correct and proper steps to tackle the difficult business times and achieve our goal, which are the 1999 budget and the appropriate goals in associate, guests, owners and community satisfaction. In 1998, although we took the proper action, we were not quick enough and thus not able to achieve the 1998 goal.

In these turbulent market conditions, we encounter a price war in many places. At the moment, there is an imbalance in the supply and demand and naturally price dumping has continued. The Pan Pacific way of handling the price war is that every associate should have a revenue management mindset to create a new culture. Every reservations associate should make every effort to convert every incoming call into a sale with the "No Regrets" mind set. Every front office associate must upsell the room product at the guest check-in.

In our food & beverage outlets, every associate there should know the menu contents in detail and offer professional services with upselling when taking and handling orders, resulting in more revenue coupled with guest satisfaction. All team members must be sales agents and look for every opportunity to sell rooms, restaurants and banquets and create an exciting hotel atmosphere for everyone concerned. For the area of revenue management, the key words are "JUST DO IT!"

We must apply Absolute Care in everything that we do especially in the area of operations. If anyone asks what is the special characteristic of Pan Pacific Hotels and Resorts, the answer should be that we practise Absolute Care in everything that we do for our guests, associates, owners and community.

Absolute Care means we have to offer a willingness to serve our guests for an enjoyable experience. In other words, the guest's agenda is the first priority and we serve our guests from pre-arrival to post departure. Naturally, we have to treat each guest as an individual and therefore differently. Front-line associates need to show their initiative in handling guests' needs, offering their own personal touch in making our guests feel at home and encourage them to return to stay with us on future visits.

Recently, the corporate team in Singapore participated in a workshop with our colleagues from our hotels and office in North American; Don Dickhens, Susan Gomez and Volker Ulrich. The objective was to create better understanding and support for each other in a one-team mentality.

There were three key points of discussion: Firstly, clearing the air of uncertainty between all parties. Secondly, to develop a mutual understanding of what is the Pan Pacific Culture

And thirdly, the action steps on how to implement revenue management and an Absolute Care mindset and culture in the respective hotels.

In the past, the working relationship between the corporate office in Singapore and San Francisco has not been clear and many hotels in North America have requested for a clear line of communication and channel for doing business internally.

We concluded with the following steps :

1. To create mutual trust, more regular communication is needed.
2. PPHR functions as a "sounding board" to hotels.
3. The daily operations support is from the Singapore corporate office
4. To apply the Pan Pacific culture and The Pan Pacific Way.

On the 25th and 26^th January, the Malaysian and Singapore General Managers, Directors of Sales met in Kuala Lumpur for the quarterly meeting. This time however, the various property Financial Controllers also participated in the meeting which covered many common areas of concern and also discussed strategic items. I am pleased to see that we are able to meet as a group to discuss issues, which concern all hotels in Malaysia and also develop many initiatives that will benefit all concerned.

One such initiative was the RM99 nett voucher promotion, which was launched in December and has generated almost RM900,000 in revenue. Congratulations to the team on the effort and we hope to see more such initiatives in the future.

In tandem with the meeting, a client event was held at the hotel's Pacific Ballroom where chefs from the various hotels outdid themselves with an excellent menu of specialities prepared by each chef.

Following my message, you will see a report on Y2K that I have asked Craig Harada to prepare. This is a very important topic that we need to address and there will be many areas that cannot be predicted, we must do all we can to be prepared for any eventuality.

I must also ask that all General Managers be present in his or her respective hotel over that crucial period of transition from 1999 to 2000. The changeover may be chaotic and many things could happen. You must all be physically present to ensure that all events occur smoothly and that any problems are resolved quickly and there is as little impact on the guests as possible. I cannot understress the importance of your actions.

Over the last 1 year, we have been collecting data on what or customers have to say about our hotels, facilities and services. This is a good collection of information which will help us understand our guests needs better and be better able to fulfil and exceed their expectations.

The Guest Satisfaction report is sent out to all of you every month and I encourage everyone to analyse the results and use the report to improve your weak areas. We had set a benchmark score of 8.5 points out of 10 and so far we have a range of results. I extend my congratulations to those hotels that managed to exceed that benchmark bad urge you to strive to further improve on your scores.

For those who have yet to achieve the benchmark, please work harder to do so. When our guests are happy, we would have done our job. There are many opportunities to improve on our services and facilities and I encourage everyone to aim to exceed the benchmark score in 1999.

Thank you.

(as of December 31, 1998)

As we are aware, Y2K is less than 1 year away. PPHR and our properties have been addressing this over the past year and all major CAPEX issues have been addressed.

PPHR’s Operations Committee has also been meeting on this issue and has developed the following Action Plan.

1. Systems: All Properties have addressed all systems upgrades and have budgeted for upgrades.

Action: Properties have been instructed to become Y2K compliant by May 31, 1999.

MAI/CLS is releasing a Y2K compliant version of their Front Office System. This system will be available for testing at the end of February.

Local distributor has modified the existing system to be Y2K compliant and have tested the software. This version will be used as a last effort.

2. Y2K Compliance Letter: PPHR has a copy of MLBH’s compliance Letter (to customers) and we are currently enhancing it to address the international arena. This draft letter will be submitted to our Attorneys to review it legal status.
3. Contingency Procedures: All Properties have been requested to draft a Contingency

Plan for all systems, PUC, etc. in case of failures on January 1^st.

4. Sales/Corporate Agreements: As mentioned in our Ops Meeting, PPHR will draft a Y2K disclaimer clause to be part of all Sales/Corporate Agreements which covers the period of December 31^st – March 1^st.
5. Y2K Disclaimer Letter for in-house Guest: PPHR/Property to develop Y2K Disclaimer letter for any guest staying in house on affected dates (December 31^st, February 28^th).

6. Regional Assistance: As mentioned in our Ops Meeting, it was agreed that each

6. property should be responsible to consult with a local Y2K expert to determine Y2K compliance for Public Utilities Companies, Purveyors, etc.

Action: Properties to start as soon as possible

7. Final Check: Although it is the GM’s responsibility to insure compliance and contingency plans, PPHR will address each property’s plan starting from June 1^st.

Dhaka -- Training sessions included fire fighting and safety procedure for housekeeping, Medicare for F&B and POMEC, English Language class for associates from various departments, computer training, Spirit of Hospitality for all departments, Team Leader class monitoring, butler programme, English classes for orphans and industrial attachment for travel and tourism institute.

San Francisco -- The theme for the annual awards party was "Winter wonderland" where about 200 people were in attendance to cheer their colleagues who had been with the hotel for 10 years and also to honor Miguel Guillen-Diaz (Purchasing Department) who had been selected Associate of the Year.

Kuala Lumpur -- Care Agents participated in an external Team Building session which included jungle trekking. . . Department Heads attended a Point of Difference Meeting to come up with ideas and action plans for the 1999 Business Plan. . . Conversational Japanese language classes were conducted for associates. . . The Bullet Proof Managers Series for Managers and Department Heads aimed to equip managers with the knowledge on how to handle conflicts and present effectively. . . Front line associates attended the Malaysia Host - Frontliners programme to teach courtesy when dealing with guests. . . Basic Word Lotus Skills classes were conducted. . . . Norah Nongchik and Mohd Fadzli attended the Diploma in Hotel Management - F&B Promotions. . . Associates attended grooming classes.

Singapore -- There were two "WOW" Winners for December from the Front-of-House category, both selected for their acts of honesty . The winner, Mr Samad Bin Sumari (Entry Court Captain) had discovered more than S$1000 in a baby pram left unattended in the hotel’s lobby. The second winner is Mr Mohd Nazin Bin Khalid (Bellman) who found a wallet containing S$300 cash and credit cards. . . To celebrate Christmas, all associates received a letter of season’s greetings and a Christmas Fruit-Cake from GM Steve Halliday. . .

Mauna Lani -- The annual associate Christmas party saw a delicious spread of food and popular local entertainment and prizes galore. Congratulations to Keikilani Nalhe (Bell Clerk) who won the grand prize of 3 night stay at the Four Seasons Beverly Hills including airline tickets . . . As a community service, asslciates were asjed to bring a new toy for the Salvation Army's Christmas Toy Drive. The hotel delivered two bins full of toys to the needy children in the community. . . The annual Na Poe Pa'ahana Awards lunch was held to honour outstanding leaders in the hotel industry. The hotel nominated Cy Yamagata as Bellman of the Year, Eleu Wills as Outstanding Lodging Employee of the Year and Danny Akaka as Manager of the Year. All three received honorable mention awards - Congratulations to all of them.

Malacca -- Conversational English classes are held once a week each for front-line and other department associates. . . Front-line associates also attended the Island English programme and a course on how to handle Japanese guests conducted by Yuji Watanabe from Business Development. . . New associates attended the orientation.

Manila -- Associates celebrated the first Christmas Party last December. Gracing the affair were Ms. Rose Lockhart , a long-staying guest from the US Embassy, and the owners of the hotel, Mr. And Mrs. Benito Cu-Uy Gam, Mr. And Mrs. William Siy. Each team gave a dance and song presentation to the delight of everyone. . . Another Make-It-Happen afternoon was celebrated, this time with a big difference. It was a whole day celebration for the first anniversary. First year pins were given to everyone. . .December birthday celebrants were treated to a buffet lunch at the Century Park Sheraton.

KLIA -- 1999 began with twenty- four new associates who are undergoing orientation. Three colleagues from our sister property in Kota Kinabalu join us as well. . . The PI Team will set up a Resource Centre with books on general and specific subjects/issues and computer (CD Roms) for associates. . . All associates will be evaluated and assessed on their competencies and followed by a 360-degree evaluation for Managers. The Competency Based Assessment is rated on the skills the associate has learned at work and then these are rated according to the standards of the hotel. If the associate has been successful and been assessed as competent in each specific job role then they are compensated for that job role. This system allows for the "earn as you learn" principle. The long-term vision of Competency Based Assessment is having a multi-skilled and talented workforce. . . PI inherited a new training room with a view of the runway. There is also have a Computer Learning Centre that is extremely popular with the associates.

Bangkok -- 25 departmental trainers attended a class on how to please customers. . . New associates attended the orientation session. A beauty advisor from Yves Rocher spoke on beauty and make up tips to guest contact associates. . . 15 associates from the management team attended a quality management class.

Johor Bahru -- To celebrate the Hari Raya Aidilfitri, the hotel presented each associate with a delicious chocolate chip cake each.

Yokohama -- The San Francisco or Singapore Campaign(SOS Campaign) is a special programme where any associate who generates the maximum room nights at the SOS rate will win a 3-night complimentary stay and round air ticket to San Francisco or Singapore. . . The New Year Rock N Roll Count Down Party saw associates dancing the jitterbug dressed in the 50's style. The associates invited guests to dance as well. About 250 guests attended this party and the whole lobby area was turned into a dance floor and front desk to bar counter. A Dance King & Queen Contest and Best Dresser Contest was also held. . . The associate New Year's Party with the theme "Oscar" organized by the Associates' Relation Council saw more than 400 associates and partners attending. The Operator team in "Sister Act" costume got the Oscar prize. . . Fire Awareness Training will be held four times a week. . . A grooming session was held for all associates and partners. . . Interdepartmental training will start from the end of January with the first session in Accounting given by Mr. Yamaguchi, (Director of Accounting.)

Glenmarie -- Training conducted at all F&B outlets included Quality Service Skills, Greeting & Order Taking, Mis en place preparations, Telephone answering standards, General knowledge on wine and Stewarding.

Pangkor -- The religious department from the resort opened a counter at the People Innovation department for Muslim associates to pay "Zakat Fitrah". . . A special Thank You dinner for all Pan Pacific sisters hotels associates who had assisted with the Christmas and New Year activities. All were presented with a casual shirt as a token of appreciation.

Johor Bahru -- Arun Chandran, IBU Operations Manager, and Affendee, Lobby Lounge

Supervisor, were at The Pan Pacific Resort Pangkor for two weeks to assist in the resort's heavy F&B activities during the Christmas and New Year. . . Asami Takasawa, Director Of Education/Training of The Pan Pacific Hotel Yokohama, was here to observe the running of the Round Table Of Talent conference.

Glenmarie -- Koh Boon Seng (Executive Chef) will assist with kitchen operations at PPPJB for one week in every month. . . Halimah Bador (Team Leader - Keyaki Nouveau) will cross train at Keyaki in PPHKL. . . Kenny Honma (Chef De Cuisine - Keyaki Nouveau) will oversee operations at Keyaki - PPHKL. He will spend 3 days a week at each outlet.

Pangkor -- 11 associates from PP KL, Glenmarie and KLIA helped out during the peak season of Christmas and New Year.

Yokohama -- Mr.Takasawa, (Director of Education/Training) visited sister Hotels in Singapore, Johor Bahru, Kota Kinabalu, Kuala Lumpur International Airport, Glenmarie, Kuala Lumpur, Manila and the Corporate Office in Singapore. The focus of his visit was to study the education system of each property, to attend the Round Table of talent in Johor Bahru and collect ideas to adapt them to the local needs of Yokohama.

Vancouver -- Mark Allvey, former Director of Marketing at PP Singapore joined as Director of Sales and Marketing. Mark is ready to face up to many challenges including getting to know the Canadian market, acquainting himself with his new team and learning to play golf in the middle of the British Columbia winter.

Singapore -- Steven Chan, Guest Services Manager was promoted to Director of Revenue Management. He is responsible for forecasting room revenue and yield management. He will work closely with the Sales and Room Division to achieve the best yield for the hotel.

Kota Kinabalu -- Mr. Gerald Andrew Hendrick joins as Director of Outstanding Events responsible for development of MICE business within Sutera Harbour. . .Elizabeth Sun has been promoted to Director of Business Development.

Johor Bahru -- Ms Monica Fernandez - from Education Officer to Training Manager. . . Pn Zanariah Hj Sallehuddin - from F&B Secretary to Administration Co-ordinator.

Pangkor -- Mr. A Subramaniam was promoted to Assistant Purchasing / shop Manager.

Kuala Lumpur -- Peace Leader, Sri Chinmoy, accompanied by 200 individuals from 15 countries who studied under him, stayed at the hotel recently. The 67 year-old India-born but New York-based spiritual guru was in Malaysia to launch the 1999 Peace Run-, a torch relay focusing on friendship and peace through sport. The 10km run on New Year's Day started at Dataran Merdeka and ended at The Pan Pacific Hotel Kuala Lumpur. While in Kuala Lumpur, Sri Chinmoy presented the prestigious U Thant Peace Award to the Yang diPertuan Agong Tuanku Ja'afar at the Istana Negara, and also to the Malaysian Prime Minister Datuk Seri Dr Mahathir Mohamad.

Manila -- The Youth Career Development Programme was featured in the top television show PROBE. Lea Villanueva, Director of People Innovation was interviewed. . . . The Pan Pacific Manila was featured in the very popular television show, BUSINESS CLASS. Mr. Andrew McBurnie was interviewed. . . The New Year’s Eve party was unforgettable as guests and one of Manila’s top bands-PASSAGE greeted 1999 with a big bang. . .

Vancouver -- Sylvester Stallone and family stayed at the hotel for 4 months whilst filming a movie in Vancouver and Whistler. "Rambo" has become a common sight n the Health Club every morning.

KLIA -- Recently, General Managers of Pan Pacific Vancouver (Susan Gomez), and Pan Pacific San Francisco (Volker Ulrich) and Mr. Don Dickhens paid a visit the hotel.

Yokohama -- The Kanagawa Newspaper invited a panel of four people, three economists and academics and GM, Mr. Nejat Sarp to write an industry column for every 6 weeks for a year starting February 1st. . . Banquet Sous Chef, Mr. Shinichiro Imoto won a bronze medal in the

preliminary competition of BOCUSE D'OR 1999. The final competition will be held in Lyon every other year. The qualification for attending this competition is 10 years of experience

as a professional chef and a recommendation from the member of Bocuse D'or Committee. The theme for this year's competition was 'pigeon'.

Johor Bahru -- The Pastry team was hard at work for the last few days before the Hari Raya

Aidilfitri making lots of beautiful cakes decorated with intricately designed mosques. The hotel presented cakes to the Chief Minister, State Secretary, and the Mayor. Other companies and individuals ordered numerous cakes for various VIPs. The beautiful white mosques with

blue domes were made of sugar.

Dhaka -- Events held at the hotel included the North South University convocation, Eid Fashion and award giving ceremony and the Iftar party by the Hotel Agrabad. . . Nobel Laureate economist Professor Amartya Sen from India stayed during a three-day visit to Bangladesh.

Pangkor -- December saw the best GOP in the history of the resort with a 94% occupancy over a 10-day period between Christmas and New Year with FIT guests from 20 countries around the world.

San Francisco -- Celebrities included singers Boy George, Tina Arena, James Taylor and Joey McIntyre, Sinbad (comedian / actor) and celebrity Chef Paul Prudhomme. . . Hotel newsmakers were associates at the Reception Desk whose upsell for the year totalled US$109,280 with Ray Marks alone contributing $19,245. 405 new PCI members were enrolled in 1998 with US$844,948 total contribution from PCI members.

# # # # # # #

Opportunities are usually disguised as hard work, so most people don't recognise them.

……..Success is to render more and better service than is expected of you.

KL -- The hotel held a Break Fast, Christmas and New Year celebration for associates in the Pacific Ballroom. The event is a triple celebration as it integrates the present Ramadhan season, the Christmas merriment and the start of the new year, 1999. GM Christo Diamandopoulos playing Santa Claus also joined in the breaking of the fast.

Manila -- The Associate Care Committee has taken total responsibility over the management of the Dream Team Café, the associate cafeteria. They are responsible for reviewing the service and the menu served at the cafeteria. . . GM Andrew McBurnie, has now started holding a monthly meeting with all the Team Professionals.

KLIA -- Managers and the associates jointly participated in "dodol" (Malay delicacy made of brown sugar, coconut and rice flour.) making. The most difficult part in dodol making is the mixture has to be stirred at least 12 hours non –stop to harden it and get the best result. . . A Branding Care Committee has been formed to ensure all collateral or signage’s being printed in the hotel adhere to the corporate standards. This is to maintain the corporate branding initiatives for a consistent Pan Pacific brand look. . . The Associate Care Committee created the opportunity for associates to sell goodies for Hari Raya to fellow associates.

Vancouver -- Over 350 children with their parents attended the Brunch with Santa complete with an illusionist who conjured Santa onto the stage through a fireplace. On Christmas morning, each associate received a bag containing a lottery ticket, nuts, candy and a small favour as well as Christmas wishes from Genio Pirri, (Mgr of Education & Development.)

Pangkor -- The team presented 8 two-hour presentations on the 1999 Business Plan and Operating budget to all associates to share with everyone the resort's goals, placing emphasis on Caring without Compromise goals. Shirllay presented the new Earn as You Learn scheme to all associates, also the sales Team Associates Referral Sales programme.

Malacca -- Balachandran, (Operations Manager - Property Care) went out of his way to send 2 guests home after a New Year function held at The Pacific Ballroom, Level 6.

Vancouver -- The new Service One department has been launched with the name Guest Services. . . Over 100 associates received training on Fidelio in line with the installation of the system in December.

Bangkok -- Effective February, the health club and massage rooms will be re-branded The Spa and operated by an outside company. New treatments to be included are Swedish massage, mud wraps and aromatherapy. The hotels team of masseurs have undergone intensive training to learn the new skills.

Glenmarie -- Aaron Cheng, (Sous Chef - Kites Restaurant) was commended by a long stay guest on his person attention to taking a food order, cooked, served & then checked that everything it was satisfactory.

Mauna Lani -- In January, the hotel's Spa will undergo a major makeover and re-open in February with new services.

Pangkor -- On New Year's eve, 450m guests celebrated in the Golden Oriole Bar/Lounge with live entertainers. The highlight of the evening was the Phantom of the Opera cabaret performed by Charlie Smith and Robyn Tallon from Australia.

Yokohama -- Christmas stockings filled with candy were hung on the doorknob of every guestroom at midnight on December 24th. It was a surprise gift to our guests started last year. . . A special New year's event was held in the lobby on the 1^st and 2^nd of January included a traditional Dragon dance and rice-cake making show. Rice-cake is made by kneading glutinous rice and water. This procedure was demonstrated to guests who were also invited to participate in making the rice-cake and served them on the spot covered with red been jam or soybean flour.

Malacca -- Saffron offered a traditional Buka Puasa menu for guests starting at RM 30nett per person while children eat at half price. . . A special Valentine's menu at RM69.00nett per person. Couples enjoying the meal will also receive an attractive Mystery Gift.

San Francisco -- The New Year's Eve party at PACIFIC served two seatings with an average check of US$90.26. In addition, the banquet department handled a large party in the ballroom and a wedding in the Terrace.

Manila -- The hotel celebrated its first New Year’s Eve Party with a live band, PASSAGE, at the Pacific Lounge. The Elite Dineplex showcased the different cuisine from their restaurants, which delighted the guests that night. The 21^st Floor gave a very spectacular view of the fireworks all over the city at the stroke of midnight, ushering in 1999.

Yokohama -- A Special Valentine's Day Menu will be offered from February 11-14^th at

Cafe Tosca. This dinner course will be Yen 6,000. In Japan, this date is the date when girls can declare her love to boys, which means that many girls will be treating this special dinner to her sweetheart.

Dhaka-- The Café Bazar will be renovated after 18 years service. A new menu and dining concept will be introduced upon the reopening in March 1999. . . The Christmas celebrations saw the Children's Pool party graced by Santa Claus and entertainment for the children included magicians, games and food.

Kota Kinabalu -- The Waves Pool Bar offers fishing enthusiasts a fishing rod and bait.

Mauna Lani -- Family time has taken a new concept where families can now enjoy and evening together but not in a restaurant. The team has created a "pa ina ohana" where several outdoor options are available for dining.

Johor Bahru -- The hotel lobby was converted into one large lobby lounge at New Year's

Eve and was choc-a-bloc full for the countdown. As the countdown began, the lobby lights were dimmed and all attention was on a spotlight which on the last count focused on a neon-light display of '1999'. Then the crowd went wild as balloons and streamers showered down upon them. Truly a welcome fit for the last year of the millennium!

Pangkor -- The new Pacific Terrace Dining launched in December saw approximately 35 covers a night with average check of RM90. Feedback from guests has been encouraging. . . The Christmas and New Year period produced the best F&B results in the resort's history.

Local high school dropouts cut in half.....

KL -- The sale of the RM99 nett Vouchers began on December 10, 1998 and to date the hotel team has sold all 500 vouchers worth 2,000 room nights. . . A Christmas cocktail was held on December 23, 1998 for long staying guests as well as the British Airway crew. . . The double bonus points offer for Explorer Club members has been extended till the 28^th Feb. 1999. . . As part of the year end festivities, Christmas hampers were distributed to top supporting clients and also to editors of various publications.

San Francisco -- The New Year's eve saw outstanding room sales of an average rate of US$274.19.

Malacca -- Lye Pay Fang and Kimberly Ku, (Business Development Managers) will be in Singapore to visit their corporate accounts during the last week of January.

Mauna Lani -- The team is gearing up for the 10^th Annual Senior Skins game, which will see gold legends Raymond Floyd, Hale Irwin, Arnold Palmer and Jim Colbert participating.

Kota Kinabalu -- Jonathan Badman will attend the ATF tradeshow in Singapore. . . Gerald Hendrick will attend the AIME show in Melbourne.

Singapore -- The hotel held the "BIG CITY NIGHT" with a spectacular firework display to countdown to 1999. To usher in the New Year, two contingents of the Singapore Boy’s Brigade Pipes and Drums as well as the Kitchen Band marched through the various levels of the atrium. . . To build rapport with Club One members, a Basic Skincare and Make-up Techniques was conducted by Ms Linda Teo, Director of Carrie Models Agency. Door gifts sponsored by Carrie Models Agency were presented to all.

Whistler -- January is the month for the World Cup freestyle championship. Also underway is the Nike Snowboard championship. New Year's eve saw the Whistler village packed with thousands of celebrants.

Manila -- Adriatico Square at The Pan Pacific Manila offered wholesome fun for the entire family this recent Christmas season. Clown routine acts, question & answer games, balloon sculpture, ventriloquist acts, magic tricks and dance were featured. Evenings became more magical as varieties of artists paint, sing, act and dance the spirit of Christmas. . A Holy Mass was held on Christmas Eve at the Conference Suite of The Pan Pacific Manila. It was well attended by in- house guests and hotel associates.

Whistler -- The hotel has a great December with the highest room rate in Whistler at C$320. . . A new restaurant with function rooms has opening atop Whistler mountain. This new facility now allows people to ski before and after their meetings. . . The ski season has started well. Occupancy has been good and is expected to maintain until April.

KLIA -- The Business Development Team managed to secure the EVA AIRWAYS to stay in the hotel. The crew began the New Year at the hotel. The team welcomed them with garlands and a big welcoming banner.

Yokohama -- The highest Ferris wheel in the world will be reconstructed in March in Minato Mirai 21 area. This Ferris wheel will be 112.5m height with 100m diameter and seats 480 people in 60 wagons. This clockwork wheel will have a special firework illumination with sound effect every hour. This Ferris wheel will be the highest till "London Eye" in London is

completed at the end of this year with 135m diameter. . . A Bridal Fair was held in January with attendance of about 503 couples. Kitchen Tour, Fashion Show, Gospel Wedding Demonstration and Food Tasting were held at the fair. The Kitchen Tour was especially well. This resulted in 53 tentative bookings.

Glenmarie -- To generate more revenue for the hotel, the team has developed some new methods to promote the hotel to :

a) Offering special rates to real estate agents - to assist in capturing expatriates who are looking for a short-term stay arrangement while deciding on permanent home.

b) Joint efforts with sister properties to promote the 1999 PPHR Fun Trail event, using Glenmarie as the venue for the flag-off.

c) Glenmarie has been selected as a supporting/selected hotel for 2 major events this year, the Formula One Grand Prix in October and the World Cup of Golf 1999 in November. Packages offered for these events are promoted through local agents and airlines.

d) Working with Pangkor, promoting to overseas wholesalers, to use Glenmarie either before or after their stay in Pangkor.

e) Joint promotions with Pangkor to selected market wholesalers for promotions during the summer and winter periods.

f) Promoting golf clinics with travel agents - packages to attract golf beginners

g) Supporting Glenmarie Golf & Country Club's efforts in working together with the Australian Institute for Golf Management, where a residential package will be offered to attract overseas students to Malaysia

h) Sale of the PPHR Malaysia RM99.00nett vouchers to the public.

i) With the 'No Regret Policy', offer guests affordable rates for both F&B and room accommodation.

j) Offering our incentive programme, Explorer Club, to new members in corporate companies, encouraging them to utilise all participating hotels.

Malaysia -- The Johor state attracted more than RM4.4 billion in new industrial investments during the first 10 months of 1998, of which 86.3 per cent or RM3.8 billion were foreign investments. Topping the list was the United States, with RM3.2 billion committed during the period reviewed for five chemical and chemical-related industries. The biggest of the American investors was Dow Corning Corp - a petrochemical group -, which had committed to invest RM3.1 billion in Johor.

The next biggest investor was Japan, with investments totalling RM271.1 million. Singapore, which maintained first spot among foreign investors for three consecutive years, was in third placing last year with new manufacturing projects worth RM206.1 million.

"The situation here is very promising. Most of the projects approved by the Malaysian Industrial Development Authority (MIDA) are already in various stages of implementation," said MIDA Johor branch director, Abdul Rahman Bachik.

Vancouver -- A strong first quarter is expected in the Conventions market but sees increasing competition and aggressive rate positioning in the corporate market. The sales teams has redefined their geographic territories and market segment responsibilities to give more focus on increasing the corporate FIT business over the low season.

Malacca -- The STAY 3 PAY 2 PACKAGE offers :

RM 198nett (weekday night. - minimum of 2 nights, 3rd night free) in Superior Room with of breakfast for 2 or RM 218nett (weekend night - minimum of 2 nights, 3rd night free) in Superior Room with of breakfast for 2 or RM 220nett per night, Superior Room with breakfast for 2. Valid until 30th June 1999. . .

The golf package offers weekday - Golfing Single : RM 260nett per pax, Double : RM 190nett per pax, Double (Non-golfing Spouse) : RM 140nett per pax. On weekend, Golfing Single : RM 320nett per pax, Double : RM 230nett per pax, Double (Non-golfing) : RM 170nett per pax

Vancouver -- A BC Residents & Seattle Bed & Breakfast rate has been developed to generate activity for the first quarter. The Five-Diamond Valentine's Day package has also been well received.

Manila -- The No Regrets Policy is being implemented. Rooms are charged at US$ 70.00++ (Room Only)

KL -- A special rate of RM216 nett is being extended to guests who are currently staying at sister properties. Before leaving for home, they can stay in KL to do their very last minute shopping. The package includes deluxe room, breakfast for two and one-way shuttle to Sogo Shopping Complex. . . The D.A. Package at RM216 nett per room per night (single/twin share) offers buffet breakfast and free meal worth RM48 per day, non-accumulative. Valid until February 28, 1999.

Yokohama -- The Memorial Invitation Package for all wedding couples from January 3-March 31 offers the following benefits: 1) Choice of breakfast or lunch, 2) Late check-out till 1 p.m., 3) newspaper . . .The Golden Age Package offers parents of wedding couples from January 11-March 31 : 1) Japanese Kaiseki dinner(In-room dining available), 2) Breakfast(In-room dining available), 3) Round sea bus ticket to Yamashita Park from Hotel 4) Late check out till 12 p.m. 5) Newspaper. These two packages will be promoted by direct mail. . . A neighbourhood package offers residents of Tokyo, Kanagawa and Chiba prefectures a rate of 9,800++ for two including complimentary breakfast., valid from Jan. 12 - March 31 for weekdays only. Proof of identification needs to be shown at check in.

Whistler -- The Recovery package includes accommodation in a studio or one bedroom suite, breakfast for 2, a choice of body care treatment e.g./ soothing body polish, aroma bodywrap, sunsource bronzing or aromatherapy stress relieving body massage. . . The Christmas package was a great success. Beside the traditional Christmas dinner, all rooms were decorated with ornaments and a small Christmas tree each.

KLIA -- The Community Care Committee organized an airport tour for kids from "Rumah Keluarga Kami". They were treated to light refreshments and later took part in fun kitchen activity organized by the chefs like making gingerbread bread followed by a McDonalds lunch. After lunch they tour the airport (including the satellite building).

Yokohama -- A total of 2172 Christmas Charity gifts were delivered to 36 orphanages throughout Kanagawa area to approximately 1500 children during Christmas season.

KL -- It has been the tradition of the hotel to present the King with a cake during the Hari Raya, and this year is no exception. During a ceremony held at the Balai Rong Seri in Istana Negara, the team presented a 40kg suji cake depicting the festivities of Hari Raya.

Singapore -- Associates visited the Convalescent Home, which houses abused children. The hotel’s Sports & Recreation Club sponsored toys for all the 36 children and also presented a donation of S$1000 cash to the home. The group treated the children with a McDonalds’ lunch. . . The Christmas With A World Of Care programme was organised to raise funds for the National Kidney Foundation through a host of fun charitable activities – tossing coins for wishes at the Fountain of Good Wishes, adopting a bear for $20, ordering charity cocktails, donating money for "close-up" magic performances and sculptured balloons. Instead of printing Christmas cards, a donation was made to NKF. Even the sale of tickets for the "Big City Night" countdown meant a contribution to help 1,300 NKF patients requiring dialysis treatments.

Malacca -- The team welcomed 100 orphans and 40 single mothers of Malacca to a Buka Puasa treat at The Pacific Ballroom recently. The event was jointly sponsored by HAWA - Hal Ehwal Wanita Melaka. . . A total of RM500 collected from the Once Upon A Christmas Wish Tree O project will be donated to Cancer Hospice for the terminally ill in Malacca.

Dhaka -- A donation programme to collect clothes for adults and children saw sister hotels and the Singapore corporate office and Tokyu Hotels sending garments for the needy. The boxes containing donations were [presented to guardians of orphanages and other institutions.

Johor Bahru -- When the hotel discovered that 82 orphans from the Darul Hanan Home in Pasir

Gudang did not have shoes for the Hari Raya Aidilfitri celebration; the team knew what had to be done. The hotel sponsored a shoe-shopping spree where the orphans spent two hours trying on shoes at the shopping centre adjacent to the hotel. The smiles on the children's faces as they strutted away with their new shoes, were proof that the hotel had done just the right thing.

The hotel did not print any festive greeting cards this year and the funds for the spree were obtained from the amount saved.

Bangkok -- 20 children from the Duang Prateep Foundation were invited to the hotels Christmas party. Associates volunteered to assist in the party. . . The hotel organised a "Monk ceremony" for the 5^th anniversary, offering food, money and other items of necessity to 9 monks.

Pangkor -- About 40 children attended the Christmas party organised by the Pandy Panda Kids Club. 12 children from the LifeLine Diamond Home for abused children were special guests.

Vancouver -- The money collected in the water fountain will be donated to the Union Gospel Mission, a local organisation who feeds, clothes and assists the homeless.

Vancouver -- The new bin system of recycling in the hotel has been put into place with different bins of paper, plastic, glass etc.

New Year’s Speech from the President

Happy New Year

Below is the summary of this year’s objectives.

1999 will be the fourth year of our long-term 5 years business plan. Until now we are not far off from the plan due to the low interest rate and the stable income from our railway business. There will be 2 more years and we would like all of you to continue their effort to achieve this plan. Also for those department who have difficulty achieving the business plan we would like them not to give up but to get close to the original plan as possible.

Due to economic situation in Japan, company profit has decreased which lead to refraining from spending in capital expenditure. At the same time employment problem caused cutback on salary and made consumption very weak. Together with this decrease in export, which was supporting the business condition made the situation serious. But we can not just cry over these economic situations around the world.

There are a lot of companies who are maintaining their business. These companies either focus their people, material, money and other resources to one field or technically have the lead against other company. These companies are showing their strength during this difficult time. They will continue to grow and the gap between those companies that can not convert from the old management style will become bigger. It might be that they are from a different specialty and the same way might not be suitable for our company but there must be a way to improve our business in difficult times like this.

For each department we would like you to move away from the old way of doing business and study ways to create new products and operational process with innovative ideas. At the same time we would like you to control the cost and acquire competitive strength. Consumption is still very slow but if we can create "items" or "service" that people desire, it will give us a good result.

Administration department should make an object to drastically change their work process in order to cut down cost and make every effort to work efficiently. Also always think how you can support the operating departments.

We realize that people are the wellspring of business development. In order for our company to continue business with vitality, in accordance with our management policy, which is to "value individuality and make the most of each person", we must put the policy into practice and pull out all employees individuality and potential. At the same time we must look into harmonizing the individual progression and treatment by changing the qualification system and the salary system.

For our company to succeed it is crucial that we look into the existing system and rectify the problems in order to motivate all employees and pull out their potentials.

Now a day the environment condition is getting worse and we must minimize our bad effect against the environment while doing business. In order to put our Group Policy "Create a beautiful living environment" and "Manage in harmony with the natural environment" into place, last year we have organized the "Environment Activity Promotion Committee". They will be the main body to examine ways to do business without harming the environment. We have asked all departments to grapple with the problem but we would like all employees to also think and practice what they can do as an individual.

This year our business will suffer in a business condition we have never experienced before but we must unite to overcome this difficult time towards the new age. We long for everybody to make an effort and show the challenging spirit "Tokyu" used to have.

Tokyu Corporation Overseas Division

Please contact us at kazuyoshi.shimojima@tkk.tokyu.co.jp if you have any questions.