In August, once again we had the same hotels in North America achieving their budgets - Whistler, San Francisco, and Vancouver, whilst our KL hotel exceeded budget in occupancy and Mauna Lani just missed its profit goal. Business over there in general is very good, however we also acknowledge the effort that the teams have put in. In Asia, we are pleased to see that both Yokohama and Palau also achieved their respective budgets as well.

In Yokohama, I am very glad that the budget for revenue and GOP has been achieved. This provides good motivation for the team who has made a commitment to create a revenue management mindset. Although the month of August was the summer vacation period, which meant that the hotel was busy, the team has been able to control the occupancy and average rate to attain the best possible results. I recognise the great effort and urge the team to keep up the good work.

In Palau too, Congratulations are due. After the recent Round Table of Talent held at the resort, the team has had a new lease of life, there is much more enthusiasm and excitement that we hope will continue. Congratulations to both hotels.

The process of planning for the new millennium started with business plan 2000 which shows us the direction and steps that will be taken to achieve success in the next year. This is then followed by the setting of the budget.

Before we go into this process, I must point out that out track record in forecasting gives me great cause for concern. The actual results when compared to forecast figures usually show a discrepancy. I am very concerned about our ability to forecast accurately.

Naturally when setting budgets, we are hopeful and positive thinking and hope to set high targets, however we must also set achievable and realistic targets. The gaps that we have seen this year have caused us in the current business environment.

Before anything else, I ask all hotels to ensure that the proper focus and attention is given to forecasting for the next three months - October to December. I expect the variance between actual and forecast figures should be within a 2.5% plus or minus. This accuracy is very essential for doing business.

Please clarify your forecasting process and ensure that it is properly conducted and should there be any uncertainties or lack of knowledge or understanding, please contact the corporate team for verification. We must all work as a team to make it work.

In the past, targets were set with the corporate teams' input, however I ask that each hotel must raise any concerns for achievement of the target before the conclusion. Please express any concerns and discuss details, as the budget figure that is set MUST be achievable goals. In 1999, it seems that the budget was not realistic for the majority of our hotels and this is very unfortunate. Therefore, in the last 6 months, we have asked you to achieve forecasted figures instead of the budget figures.

There should be a commitment by both the hotel team and the corporate team on a set of budget figures that are achievable that we all can succeed together. In the year 2000, I do not expect to see this same scenario happening again.

The last General Manager's meeting was held in early 1997. Before the year 2000 starts, we would like to clarify our target for the New Year so that from January 1, 2000, we can all make a flashing start.

For the last two years, we have been very reactive in taking steps under very difficult circumstances. I would like to change our business atmosphere and the trend of stagnation to a more dynamic approach for Pan Pacific Hotels and Resorts. At the same time, in the last few years, Pan Pacific has created a very good people culture but we are still lacking in the creation of a sales culture or mindset amongst our associates.

Therefore, we decided to combine the General Manager and Directors of Sales meeting to create this sales culture in our company. The meeting will be held on the 5^th - 8^th December 1999 in Yokohama with the purpose of growing our business through developing a sales mindset. The meeting will feature the four core disciplines working hand in hand on the sales development, enhancing guest experience through service and growing our people to support the goal.

We selected Yokohama as a venue because the Japanese market is an important market for many of our hotels and the dates set are just after the JATA trade show which will be held in Tokyo and which some of you may be attending. We would like to capitalise on this opportunity. It is my belief that 80% of the energy or work must be done before the meeting by the participants. The meeting proper will serve to be a confirmation of the pre-work.

This meeting in Japan is reasonably expensive and hotels are experiencing tough times financially, therefore I ask that all participants travel to the meeting on economy class tickets in order to save money and negotiate for special rates wherever possible. Please look out for further details from the organising committee with regards to the meeting.

To inculcate the sales mindset, I ask all teams to determine what needs to be done and how to go about reaching the goal. The top management must set the example by initiating and participating in sales calls to clients of the hotel. This includes the corporate team as well.

I am pleased to announce the appointment of Desmond Acheson as the new General Manager of The Pan Pacific Manila with effect from October 11^th, 1999. Desmond is currently the General Manager at The Pan Pacific Lodge Whistler. Whilst a new General Manager is appointed for Whistler, the daily leadership guidance will be provided by Don Dickens.

Thank you.

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San Francisco -- Vergel Maranda, one of our personal valets's cross-trained with the butlers in Manila while he was home on vacation in the Philippines. He found it an eye-opening experience and returned with many valuable service ideas.

KLIA -- All Managers and Associates were put through a re-orientation programme featuring core modules like Absolute Care, Competencies, Emergency Procedures and re-focusing on the mission statement. . . The Medic Squad members went through a two-day refresher course at the Airport Fire & Rescue Station . They were also given a tour of the control tower. . . The hotel recently welcomed twenty-eight new associates. Cik Noor Raha Bahari (Director of Operations - People Innovation) and En Mohamad Halim Merican (Hotel Manager) were among the new comers. . . The Please, Please Me campaign was launched on the 20th of September as a communication tool within all areas of the hotel to compliment an Associate or Manager to improve operations and save cost. A personal concern could also be voiced out using this communication tool. All Please, Please Me merit cards will be put into a lucky draw for ten awards worth RM100.00 each every month. . . The Sports Club organized the first Bowling Open Championship at the Nilai Springs Golf & Country Club. Mohd Riduan (Technical Services) was the champion for the day.

Mauna Lani -- Training sessions conducted included Culinary Hazard Awareness Class, Workplace Harassment Seminars, Hazcom/Bloodborne Classes and new-hire orientation program. . . Other activities included Housekeepers Week and Aloha Week.

KL -- New associates participated in a 2-day Orientation - (Malaysia Host) to familiarize them with the hotel's facilities, services and knowledge in the hospitality industry. . . Associates received fire-fighting training. . .Associates and team leaders were trained on basic Supervisory Skills.

Yokohama -- A Grooming and Service Manner Training will be conducted by JAL Academy weekly. The all-day sessions see associates concentrating on practicing positive behavior manner, as well as learning warm polite but friendly way of talking. . . All 101 kitchen associates attended a fire and safety training. Session were conducted in the kitchen area, during the quiet period for half an hour each. . . Wanchai (from Bangkok), Eamon, Steven, Joanne (from Singapore), Jennifer (from Manila), Julia (from KL) spent time to cross observe the hotel operation after the Tokyu Study Tour. . . The hotel invited Mr. Mamoru Hiromi, a very well known sommelier in Japan and also in cigar industry (as distributor of Davidoff). He spoke on how to enjoy Cigar. This provided the F&B associates an opportunity to learn more about the product, as at Jack's bar, a selection of cigars is offered.

Palau -- The Associate of the Month for September was Leoncio Leong (Storeroom), and our Supervisor of the Quarter is Lilibeth Saquilayan. Congratulations to both of them. . . Consolidation and prioritizing of the issues raised during the Round Table of Talent has been finalized and presented to the Executive Committee Members. Cooperation and positive signs were the vibes felt during the initial discussion of the issues where 3 items were selected to be worked on. Continued meetings will be forthcoming, and already we expect good results, which will help our Resort.

Bangkok -- 35 associates from various departments spent three hours learning how to handle disciplinary action. . . To enhance the image and grooming standard of guest contact associates, a make up session was conducted.

Dhaka -- Associates attended fire fighting and safety procedure training class conducted by the Chief of Security. . . Associates of all departments attended English and F&B classes at the Career Development Institute. . . All Management & Associates from all departments attended In-house re-orientation – Agenda 2000 conducted by head of the departments. Other training sessions conducted included computer classes and Basic English. . . The hotel celebrated its 19^th Anniversary on September 26 and observed World Tourism Day on September 27, 1999. On these two occasions, 50% discount on certain services at different outlets of the hotel was offered to the valued guests. For the World Tourism Day a weeklong Solo Painting Exhibition by a promising artist Ashraful Alam Paplu was held at the lobby area of the hotel. Honorable Minister for Civil Aviation & Tourism and Housing & Public Works Engineer Mosharraf Hossain, inaugurated the exhibition.

Pangkor -- Star of the Month for September went to Rahmah BT Abu Bakar (F/O) - Front of House, & Mohd Zamri b Abd Razak (Maintenance) - Heart of the House. . . All People Innovation and Canary Café Associates did a spring-cleaning of the Canary Café. . . The play-off "9-A-Side Inter Department Football" between the Management Team and the Housekeeping & Recreation Team was held. . .A "Thank You Dinner" was given to Committee members of the Associates Annual Staff Party (Millennium Night) at Teluk Dalam Resort. Certificates of appreciation were given by Judy Yeoh (Acting PIE Manager). . . Judy Yeoh attended a seminar on "Disciplinary Procedures" organized by the MEF in Kuala Lumpur. She then gave a detailed brief on the subject to all Department Heads.

Glenmarie -- An associates reading corner was set-up in the People Innovation Department to encourage associates to read during break times. Publications and reading materials (for light

and serious reading) were donated by associates. . . 11 associates from Front Office and Food & Beverage attended the 2 1/2 day Customer Service in the Next Millennium program.

IN SEARCH OF EXCELLENCE

Anybody who thinks they are a leader and doesn't have anybody following them is just out for a walk. (John Maxwell)

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All of us must become better informed. It is necessary for us to learn from others' mistakes. You will not live long enough to make them all yourself. (Hyman G. Rickover)

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It is not enough to be busy; so are the ants. The question is: What are we busy about? (Henry David Thoreau)

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I don't know the key to success, but the key to failure is trying to please everybody. ( Bill Cosby)

San Francisco -- Mary Roman is the new Director of Guest Room Services. Mary comes with a wealth of experience as Executive Housekeeper from hotels like The Mandarin Oriental and Heritage Hotels in Manila, opening two hotels in Beijing, the Yangtze New World Hotel in Shanghai and most recently The Argent in San Francisco. . . Ann Berryman is the National Sales Manager for the Eastern Region. She has 1½ years as National Sales Manager for a Conference Center in the resort/ski town of Teluride, Colorado and 3 years as Group Sales Manager for Meadowood Resort in the Napa Valley. . . Lily Deleon of the Guest Room Services department was promoted to from Personal Valet to Team Leader

KL -- Chan Lai San is the new Marketing Communications Manager. Lai San was with the Glenmarie team since pre-opening and left two years ago to become Marketing Communications Manager at the Dynasty Hotel before rejoining Pan Pacific Hotels and Resorts.

Vancouver -- Tammy Benton is the new Sales Services Manager, Darcy Stoddard is Senior Banquet Captain, Masa Mabuchi is Chef Garde Manger and Anthony Abate is Restaurant Manager.

Pangkor -- Emily Tan joined as Sales Manager. She is responsible for covering corporate accounts. Prior to this, she was with Travel Shoppe covering corporate accounts for 5 years.

Glenmarie -- Devon Nadarajah joins as the new Banquet Manager. He was previously from the Sheraton Chain.

San Francisco -- Once again our associates in Reception broke their previous upsell record, this time with a total of $23,239, more than $4,000 over the previous month. Kristine Woo led the team with $4750, followed by Manuela Kavanagh with $4195 and Myra Howay with $3300. . . Celebrities for the month included singer Barry Manilow; Kenny Loggins Band; Mr. H. Lim, 2^nd Minister of Finance of Singapore; the band 311; artist Peter Max; Indian musician Ravi Shankar; the Vancouver Grizzlies basketball team; rock group Sting; singer Aaron Neville.

KLIA -- The Petronas Formula 1 Malaysian Grand Prix generated a week of record-breaking events for the hotel. The hotel was 100% in occupancy with an average rate of RM554.96. . . In conjunction with Formula One many activities were organized, e.g. exotic cars and remote control cars were displayed at the lobby, a Ferrari Souvenir shop was set up and cultural dance was staged at the lobby nightly for 3 days. Other activities include a "Kent Future Kul" party at KLIA Rooftop B and a shopping bazaar – Malaysia Exotic Fest – at the sky bridge. . .Most of the Formula 1 superstars stayed in the hotel including Mika Hakkinen, Michael Schumacher, Eddie Irvine, David Coulthard, Ralf Schumacher, Jackie Steward and Marc Gene. . . The Food and Hotel Malaysia 1999 (FHM `99) exhibition was held at Putra World Trade Centre recently. The hotel team participated in the Salon Culinaire competition with Mohd Badrul Hisham Che Halim (Kitchen) emerging as winner of a gold medal for Practical Cooking/Apprentice Main Course. Certificates of Appreciation were awarded to the five Chefs who competed in the Salon Culinaire.

Vancouver -- Movie actor Tim Robbins is staying at the hotel for two months. . . The Five Sails Restaurant won the Vancouver's Best Fine Dining Award, voted by readers of Where magazine. Misaki Japanese Restaurant was runner up in the Best ethnic Dining category.

Dhaka -- The hotel team created a record in Bangladesh by producing the largest birthday cake (weight 100 kg!) for a valued client. Journalists and Photographers were invited to view and photograph the cake displayed at the Grand Ballroom. . . The world renowned West Indies Cricket Team was on a 10-day visit to Bangladesh and stayed at the hotel. During their stay in Dhaka, they played 3 day Matches and 1 day matches against the Bangladesh Cricket Team. . . The Annual General Meeting (AGM) of Al Baraka Bank was held at the Grand Ballroom attended by 800 guests. . . National Day of Saudi Arabia was observed with a Grand Reception for 400 local and foreign dignitaries at the Grand Ballroom organized by the Embassy. . . National Bengali Daily Newspaper "Janakantha" organized a Reception and Award Giving Ceremony with 1000 dignitaries in attendance.

KL -- Sheila Majid, the Malaysian jazz queen who was to sing three songs at the Manhattan Jazz Quintet Concert in PWTC, used the hotel suite for a day. Ms Majid was welcomed by several of our associates and a large bouquet of flowers was presented to her upon arrival.

Yokohama -- International Menopause Society World Congress on Menopause saw doctors and scholars from all over the world gathered in Yokohama to attend the Congress. Most of them stayed at the hotel. The hotel became a Melting Pot of many different cultures and countries such as UK, Australia, Italy, Sweden, Finland, France, Belgium, Denmark, Spain, Germany, Poland, U.S.A, China, Israel, Indonesia, Ukraine, Hong Kong and Japan. Associates who can languages other than Japanese put on badges shaped in the different national flags to indicate what language they are capable to speak. . . Fuji Television, Japan's major TV Station started a new Drama Series for this autumn season, which most scenes of the story in the first episode were taken inside the hotel. Broadcast of the story saw a 15% audience rate, approximately 15,000 million viewers nationwide. . . Mr. Kabaya, one of our young and potential bartender in Jack's Bar, was selected to compete in the final at The Suntory's Cocktail Competition. Out of two thousand four hundred and sixty nine applicants, he was one of the 8 selected.

Mauna Lani -- Meetings and Conventions Magazine had awarded The Mauna Lani Bay at the 1999 Gold Key award for the 8^th consecutive year.

# # # # # # #

Say No, then Negotiate.

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A Business is too big when it takes a week for gossip to go from one end of the office to the other.

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My decision is Maybe - and that is Final.

Yokohama -- At the General Associates Meeting, GM Nejat reported on the business success in August. This was followed by a speech by Mr. Umehara who mentioned that looking at the faces of the associates, the sparkle that used to be in their eyes, their dreams and hopes towards PPHY seemed to have diminished through these 2 years since opening. He advised the team to refresh their minds again.

Pangkor -- GM and Judy conducted 6 Associates Communication Presentations to update the team on the past 8 months’ results and the future forecast targets plus New Projects and Special Events till the Millennium.

Vancouver -- The annual opinion survey was completed by 467 associates. Scores in 10 out of 11 categories saw an improvement. . . 14 associates sat for the Management Skill Builder examination. All exceeded the pass mark of 80%.

KLIA -- Although the hotel was running full in an extremely busy week, GM Lloyd Daser received favorable comments from the Ferrari team who stayed at the hotel, including compliments such as "your associates are so wonderful…your people never stop smiling…nothing I ask for is too much trouble…in all my years of racing, all over the world, this is the best hotel we’ve ever stayed in"!

San Francisco -- The 2000 Zagat Survey has listed the PACIFIC restaurant, as #1 in Pacific Rim cuisine, the first time in the top 40 in the city, and one of the top three hotel restaurants. "Still one of the city’s best kept secrets, this quiet downtown Pacific Rim-California oasis tucked away in The Pan Pacific Hotel shines with terrific cuisine proffered in a gorgeous room by a cadre of smart waiters; it all adds up to one class restaurant, a real sleeper where it shouldn’t be this easy to get a reservation."

Yokohama -- A special Christmas Eve dinner is planned in the ballroom, which will be transformed into a Winter Wonderland. Guests will enter the ballroom through a tunnel and find themselves in a world of white snow. Bar counters made of small white log houses, seats in booth style for more privacy. Tickets will be sold at 19,990 JPY including champagne and other beverages. . . . . Now as an annual event, a Halloween Fair was held at our New Italian restaurant Cafe Tosca. During the fair a great orange pumpkin was placed in front of the restaurant for a "Weight Guessing Contest".

Glenmarie -- The Traveller's Palm Fun Pub organized A Caribbean Night where guests were clad in Caribbean attire and the entire pub decorated as according to the theme. In-house band, Next Genes with X-Cite band (from Caribbean Island) took center stage entertaining guests with a wide repertoire of Caribbean songs. Activities include the Limbo Rock competition and Best Dressed Male & Female. . . In conjunction with the Formula One (held in Sepang), the fun pub hosted a Formula One Bash to welcome participants and spectators of the Formula One. Three bands entertained guests throughout the night with Rock, ballad, cha cha, evergreen, country and western, pop to the oldies. . . The Glen lobby lounge offers special imported beers during the same period.

Bangkok -- The Millennium package is available from 15^th December to 15 January 2000.

KLIA -- The sales Team secured another technical crew to stay at the hotel – Atlas Air. It is an American Cargo airline company based in New York. They are in contract with MASCargo to fly their shipment within South East Asia for 3 years.

Yokohama -- The Christmas Package Plan "Pan Pacific Millennium Christmas Dream" is available from December 23 to 25. This Package includes a night in an Executive Twin or Executive Suite Room with breakfast, dinner, and a surprise gift upon arrival out of the following three. Special Christmas cocktail delivery to the room, upgrades to experience a night in our Pan Pacific Suite or Atlantic Suite. The rate ranges from 20,000 to 55,000 per person for twin occupancy.

KL -- The hotel hosted lunch/dinner and site inspection for the following: New Horizon Holidays, Australia; RSO Los Angeles and travel agents from US; Elbie Thomas of Escape Holidays; Ted Fullelove of Coast to Coast, London; Middle East travel agents / MAS. . . The hotel was designated Official Hotel for Food Hotel Malaysia (FHM) ‘99 in September. . . Dee Dee Pok and Christine Fong went on a sales trip to Singapore to cover corporate and travel agents and also to promote the S$63 promotional vouchers. . . Fax blitz to corporate companies to promote School Holiday Package, with a rate of RM188 nett plus free storybooks. . . Organized an outing to the Forest Research Institute of Malaysia for 30 top producing Explorer members. . . Christopher Lee met with the Belgium Ambassador to discuss the World Road Congress Conference. . . Christopher Lee attended Cash In Rebate programme talk organized by Synergy Card (M) Sdn Bhd. . . Christopher Lee met with Tim Waldron of Conference and Incentive Travel from London. . . Christopher Lee and Azahar Ahmad met with ResCom associates for high tea to discuss sales issues and ways to increase room nights from October 1999 till February 2000. . . Christo Diamandopoulos and Christopher Lee met with the Deputy Managing Director of Iran Air HQ, General Manager and Station Manager of the Malaysia office. . . Christopher Lee and Wilson Lum attended farewell dinner for Mr. Javad Rostami, Station Manager (Malaysia and Singapore) of Iran Air. . . Christopher Lee was interviewed by TV3, a Malaysian television station, on a special report on tourism in Malaysia. Programme was aired over TV3’s News Hour on September 26, 1999 at 11 p.m.

Mauna Lani -- The upcoming 2^nd Annual Executive Cup will include over 85 golf club champions whilst the 11^th annual Senior Skins at Mauna Lani will feature Jack Nicklaus, Arnold Palmer, Tom Watson and Gary Player. . . The Aloha Special promotion continues to do well and has been extended to mid-December.

Pangkor -- The Soccer 7s International knockout tournament for local groups was held recently. . . Teekay went on a sales trip to Singapore together with 8 other sales persons from sister properties to blitz corporate companies selling the S$63 vouchers. . . Paul participated in the inaugural ITA in Hong Kong. . . Extended weekday offers (1 night comp, next night @ RM140 room only) to about 500 participants of slogan writing contests of Fun Trail and Que Viva La Fiesta.

"Think revolution, not evolution" Richard Sullivan, Senior Vice President, Home Depot

"The only sustainable competitive advantage comes from out-innovating the competition." James Morse, management consultant.

"Wealth in the new regime flows directly from innovation, not optimization; that is, wealth is not gained by perfecting the unknown, but by imperfectly seizing the unknown" Kevin Kelly, "New Rules for the New Economy"

Yokohama -- Another shopping mall has recently opened in the Minato Mirai area. The brand new "Jack Mall" consists of toy store "Toys 'r Us", "Sports Authority", and the first night club in this district "Gas Panic".

Malaysia -- The Culture, Arts and Tourism Ministry has decided to streamline tourism events throughout the country from next year. The Minister Datuk Abdul Kadir Sheikh Fadzir mentioned that all states would also be required to organize programmes at the same to ensure co-ordinate publicity. The Minister also mentioned that the ministry's officials, state executive councilors who are in charge of tourism and state ministers will discuss the matter.

(The Star Publications (Malaysia) Berhad, dated October 13, 1999)

Bangkok -- The Bangkok Gems and Jewellery Fair was held at the Queen Sirikit National Convention Centre.

Palau -- October 1st was the 5th Independence Day in Palau. One of the events was an executive race where members of the Executive Branch, National Congress, States' Governors and other executives of various organizations competed in a relay race. PPR Managers formed a team to compete with the other mentioned executives. The PPR team made it to the 3^rd place.

San Francisco -- Associates raised $240 for the Juvenile Diabetes Foundation for its annual "walk" last month.

Bangkok -- The 1999 Youth Career Development Program has been completed with a total of 35 graduates. The hotel employed 4 of the 35 in Housekeeping and Heights Café. The Graduation ceremony was held at the Sheraton Grand Sukhumvit Hotel.

Yokohama -- The great earthquake which struck Taiwan on September 21 turned into a great tragedy.2,322 were killed and 8700 were injured. The team gathered total 167,000 Japanese Yen donation to send over.

Dhaka -- The hotel was awarded a crest for its outstanding Contribution in Community Service. The award was given to the hotel by the Lions Club International District 315A during a function organized to mark the foundation of the International Association of Lions Club on October 8, 1999. . . Mr. Rashed Maksud Khan, Lions District Governor, lauded the contribution of PPSH. He Said that PPSH have been working for maintaining areas and also helping poor orphans of the locality by adopting them for taking care of their education, health care and vocational training. . . Receiving the award the General Manager of PPSH thanked the Lions Club authorities and said PPSH will always support Lions in Community Service as it had done in the past. He also wished good luck to the Lions towards helping the less fortunate in society.

Pangkor -- 35 Children from PDK Seri Purnama Handicap Social Welfare (Sabak Bernam) visited the resort for a day trip.

Vancouver -- Susan Alley and Eugenio Pirri were guest lecturers at the Human Resources Management program at the University of British Columbia.

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IN TOUCH

THE PRESIDENT'S REAL MESSAGE FOR OCTOBER

ACHIEVABLE BUDGETS

For the year 2000, we ask all hotels to forecast an achievable budget after seeing the huge discrepancies between budgeted figures and the actual achievements in 1999. However, there seems to be some misunderstanding of the concept of achievable budget.

My intention of achievable budget in 2000 is to create a budget that has a distinct and clear logic that the whole team can achieve throughout the whole year. Through achieving this budget, we are then able to aim at our guiding star, which is our 3-5 year projection. We have to establish a strategy on how to achieve this long-term goal and year 2000 must be the foundation year.

We have to review our whole style of work and determine if what we are currently practising is the best way for the long-term. By the end of 1999, I would like to ask all of you to review your everyday work style and environment and determine how to be more efficient and productive. What style of work must we practise that would lead us to success in the year 2000 and beyond.

Within each area, we need to see how to integrate functions and disciplines to ensure we are able to achieve our budgets, with the primary objective of fulfilling our guests wants and needs. We must work hard at creating a sales oriented culture and mindset within all our hotels and business units and create ways to encourage all associates to contribute towards a sales mentality. I ask that you all think of the different and creative ways to be more aggressive and effective in this area.

In the year 2000, we will have to experiment and learn from trial and error whilst creating a new style of work. We need aggressive 3 - 5 year goals and clear strategies on how we will be able to achieve these goals and the year 2000 mission should also to be the launching pad towards this goal. To obtain support and understanding for this mission, we must share with our hotel owners the mission that next year is the foundation year for achieving our long-term goal.

THE PAN PACIFIC WAY

I have received feedback from associates who have expressed that some form of confusion is present with regards to the perception of the Pan Pacific way and in some instances there are abuses of this understanding.

Unfortunately, the Pan Pacific Way of doing work has sometimes been used as an excuse not to offer a full commitment to ones job. One example is when an associate uses the reason of family commitment as a reason why he/she is not able to work after 5p.m. I do not deny that a 9 am to 5pm does exist, however in the hospitality industry, we expect our associates to work with the guest in mind, therefore sometimes some flexibility is required. When there is a need to work beyond the regular hours, we must show the commitment and do it. Of course in some situations where family needs come first, i.e. a parent is needed at home to take care of a sick child or spouse, and then it is perfectly understandable.

There is a need to strike a happy balance between family and doing our job to the best of our ability. When business requires more attention, then family life must be sacrificed temporarily. I feel it is an issue of balancing of priorities.

In another example of the abuse of the term "free rather than control", it is again an issue of balance. To freely give authority to someone to do a job or project, we must determine that the person has the skill and responsibility to perform the job. Parents for example would not give a knife to a child to sharpen a pencil unless they know he/she can handle the knife safely. It is not an issue of age or background, rather the issue of responsibility and skill.

I see many cases where managers' throw the ball to associates without first making a clear evaluation of the associates skills and capabilities. By doing this, instead of helping an associate to grow and learn, we might be setting him or her up to fail. Managers have to educate and teach associates, but ultimately the main responsibility still lies on the managers' shoulders.

At the same time, associate must have a hard working mentality to earn the credibility from your managers; respect and credibility must be earned and not freely given.

Free also does not mean taking action by your own standards or preferences. In Pan Pacific Hotels and Resorts, we have a framework that we all work within. This framework is the core standards of our company, and to succeed as a company, we must first achieve the core standards. We have recently issued the Absolute Care standards for Operations, when the set is completed will cover all the four core disciplines. There standards must be followed and will lift us as a company that practices the international standards of service and delivery. It is important for all hotels to achieve these basic core standards after which you can add on additional services and offerings.

The Pan Pacific Way is not an excuse to be used for personal gain and comfort; it is a style of work that will help us achieve our goals as a team and company.

GUEST AND ASSOCIATE SATISFACTION

Through the budget discussions with many hotels conducted so far, we clearly recognise that guest and associate satisfaction scores have shown clear improvement. It is very encouraging to see this, as it is a reflection that effort has been put into it.

Last year, there were six hotels that did not achieve the benchmark of 8.5 but since then, we have seen improvements in Johor Bahru which moved from 7.4 to 8.5, Pangkor went from 7.9 to 8.1, KLIA 8.3 to 8.8 and Singapore from 8.4 to 8.7. The hotels which consistently achieve 9 and above are Manila, San Francisco and Whistler. KL has improved from 8.8 to 9.2 which is also commendable. I am encouraged by the results and would like to say "Well done and keep up the good work".

I am also pleased that our associate turnover is one of the lowest in the industry, this is very encouraging. Many of our hotels have conducted associate satisfaction surveys and those that have not will be conducting them soon. To be successful, we must perform well in guest, associate and owner satisfaction. I think we have been quite successful in addressing both guest and associates, but face a challenge with owner satisfaction where to succeed, we must achieve our financial budgets. In the year 2000, we will strive to balance all three.

PEOPLE MOVEMENT

EJ MacEwan has for the last 2 1/2 years made The Pan Pacific Sonargaon Dhaka a very exciting hotel and motivated and encouraged the whole hotel team to be real professionals, leading to a change of perception of the hotel in our company. EJ is now the new General Manager in The Sari Pan Pacific Jakarta and we look forward to him repeating his performance and making the hotel one of the most exciting hotels in Jakarta, in spite of the challenging local conditions.

Desmond Acheson leaves Whistler with a legacy of a hotel that truly is multi-functional and an advocate of the Pan Pacific way of doing work. Desmond himself was involved in many duties, helping to park cars, check in guests, answer telephones and others. He made a success of using the Pan Pacific way of work to lead and work with the team in Whistler, I am confident that he will be able to lead the team in his new home, Manila to a refreshing start and achieve greater heights.

Thank you.

Has the Tokyu Group Philosophy permeated among everybody?

The New Tokyu Philosophy was announced on September 1^st, 1997. It as been two years since then and although the economic situation is looking better, the Tokyu group is still undergoing difficulties. Has the Tokyu Group Philosophy, the guideline for "Company Management" and "Action Steps" been practised? In order for us to reconfirm the importance, we have checked the permeation among our group.

In November 1997 we did a survey about the permeation of our new philosophy. The conclusion then was that we were at a "preparation stage before take-off". As a matter of fact, during these two years Tokyu Group and companies have issued presentation booklets, portable booklet to carry around, guide book for the group executives, posters, videotapes as a tool for permeation activities. But because the economic situation has not recovered, there are some comments like "how can a philosophy help us during this difficult times". Tokyu Corporation Presidents Office (The core body of the Tokyu Group Corporate Philosophy Planning Committee) thinks that the Group Philosophy is still at its permeation stage.

According to the Presidents Office the public relations activities are divided in to three stages. Stage A is "Correct understanding of the Philosophy". Stage B is "Exchanging opinion between associates about the Philosophy and create a active working environment". Stage C is "Implementing the philosophy and sharing the same path towards achieving our vision". We as a group are still at stage A.

ACTIONS TAKEN BY TOKYU CORPORATION

Tokyu Corporation has changed their organisation structure according to the philosophy. They handed out the five tools mentioned above and showed all the managers videotape and conducted classes. Education and human resources changed their systems to fit our philosophy. The change made by the education department clearly showed the importance of our people to become independent. To be in line with our Guideline for Action, the new human resources system appeals to all our associates the need to change our mindset and actions.

Customer Satisfaction Promotion Committee and the Environment Activity Promotion Committee are two new sections established based on the philosophy. July this year these two sections became departments in order for our group to share the information and to work on the issues together.

For our group associates, our philosophy is still just knowledge. The mindset has not reached a stage where the philosophy can be put into action. We must continue to communicate the philosophy. For instance we are asking our associates to print our philosophy on their business cards and thinking of conducting a survey to find out how well the philosophy is permeated.

TOWARDS A BEAUTIFUL AGE

As the introduction of the Group Philosophy there is "We hold this philosophy in common as we work together to create and support the Tokyu Group". The president’s office of Tokyu Corporation emphasises that this intention is very important.

The philosophy was decided together with the group and as long as you are with the group and work for the group, we can not say, "It’s not my problem". People might say that philosophy will not generate revenue, but we need the philosophy as the bases when we do business.

If you would like to know anything about Tokyu Corporation please e-mail me at:

kazuyoshi.shimojima@tkk.tokyu.co.jp