Ichigo Umehara

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 -- This year we offered our associates their choice of company outing to ensure that everyone had the opportunity to participate. The first was held at Six Flags Marine World and the 2^nd, two days later, was held at Water World. A total of 500 associates and their families enjoyed great food along with the activities of the park. . . Groups of associates have been sent for Windows, Word and Excel training. In addition, Oxygen/CPR training was given to our "first response" team. . . Reorganization of the Entry Court has made the associates a part of the Front Office operation in order to streamline curbside guest service and luggage delivery. The team will operate under the direction of a team leader and Operations Managers. . . Our Guest Room Services department has moved to the 4^th floor from its old B Level location. This move will enable the valets to change into their uniforms and get to their floors more quickly while easing the stress on freight elevators.

Palau -- Financial Controller, Mr. A.B.M. Kamaluddin, held Two sessions of four-hour classes on Budget Preparation. Attendees were managers and lead supervisors. . . A Sports Festival was held for all associates, offering games including volleyball, canoe racing and spin the stick. Congratulations to the Accounting Voiders who voided all opposing teams and conquered the volleyball tournament, the Landscapers Weed Cutters who proved to all spectators that they are the best paddlers in the property, and Rey Dizon who won the spin the stick game. The activities promoted healthy competition amongst the associates and were a good way to promote a healthier lifestyle. . . Congratulations to Kubarii Ruluked who was selected as the Associate of the Month for the month of August.

Yokohama -- Farewell and best wishes to Ms. Moribe, the Executive Secretary who has been with us ever since the opening who left to pursue a new career in another business field. . . Mr. Ishimaru, the Director of Sales in Singapore, conducted a 2-day sales training session for all sales team members. The session included lecture as well as role-plays. . . Fire Chief Mr. Kojima conducted a special fire training session for Kitchen Associates.

Johor Bahru -- Director of People Innovations and Education, Khalid Mat Din; Training Manager, Monica Fernandez; and People Innovations Manager, Wahidah Ismail represented the hotel at the People Innovation conference, which was held in Glenmarie.

Mauna Lani -- Associates were educated on the services of the new Employee Assistance Program (EAP) which is a benefit provided by the hotel to assist associates with problems that may affect their private lives and ability to perform at work. . . The Absolute Care programme was launched at a special general associate meeting where the new benchmarks were introduced. Absolute Care is also shared with prospective applicants upon the completion of the job application and with new hires at the orientation programme.

KLIA -- Three managers from People Innovation attended the PIE Conference held in Glenmarie. Among the important issues addressed were the ‘Absolute Care Culture’ and ‘Competencies".

The hotel has formed a ‘Medic Squad’ comprising trained managers and associates. This team will handle emergency situations. The team members underwent a refresher course on CPR and First Aid by qualified trainers from 'BOMBA'. . . All managers and associates have gone through a re-orientation featuring core modules like Absolute Care, Competencies, Emergency Procedures and re-focusing back on our mission. . . A friendly badminton match was held with Glenmarie at the MPSA badminton court in Shah Alam.

Singapore -- The renovated Pacific Ballroom was recently re-opened for operations. All associates were invited to join in the celebration to mark the opening of the ballroom. After an arousing lion dance to usher in good fortune, Mr. Umehara, GM Steve Halliday and Purchasing Manager Joanne Ler performed the ribbon-cutting ceremony. This was followed by the launch of the "Pledge of Absolute Care" by the GM.

Dhaka -- Training programmes conducted include Fire Fighting and Safety Procedure for 20 associates from Housekeeping Department, Fire fighting and safety procedure training class conducted by the Chief of Security, Col. Zillur Rahman, Medicare class for Food & Beverage, Housekeeping, Transport (F/O) Department associates, English language for associates of all departments, the Second semester of Career Development Institute (CDI) Internal School PPHR – Housekeeping, Re-orientation – Agenda 2000 for all Management & Associates from all departments, English classes for the orphans conducted by Language Manager, Mrs. Shahnaz Kibriya, in-house Computer Session for all Management & Associates from all departments. . . The hotel hosted a Grand Reception to welcome its new General Manager Mr. Hans Gabriel Winsnes and also to wish farewell to out-going GM Mr. Eldridge J.Mac Ewan lll. About 800 local and foreign dignitaries including ministers, diplomats, high civil and military officials, top business executives and the clients were present. Addressing the guests, the new GM said he is delighted and proud to be in Bangladesh and assured that The Pan Pacific would continue to provide the usual excellent high standard of services to its clients. He also shared the hotel expansion plan with the guests. The Reception programme included a musical and dance item, and a raffle draw with 12 prizes including return air tickets to Singapore, Kuala Lumpur, Bangkok, Paris etc with accommodation and breakfast in our sister hotels.

Glenmarie -- Service One & Command Centre Associates were trained on communication flow and introduction of logsheet & administration. . . Glenmarie hosted the PIE conference for the 6 Malaysian properties; Singapore & Jakarta organised by the corporate office. The theme was 'Visualize and Capitalize on the human potential'. All participating properties had an opportunity to host a lunch or dinner with a difference. . . All associates attended a session on awareness of the Y2K bug. . . Associates from various departments participated in the Win, Lose & Draw Competition. 6 teams took part in this competition organised by the special Task Force team.

Bangkok -- 51 associates attended an English Business Writing course. . .44 associates attended an out-of-hotel team building session to stimulate team work and a better team spirit.

KL -- Associates and Managers participated in the Diploma in Hotel Management - Front Office Management to enhance their knowledge in the hospitality industry. . . Associates and Team Leaders took part in the Round Table of Talent - The Original Recipe to increase associates’ and guests’ satisfaction. . . Managers on the other hand participated in Round Table of Talent - The Next Generation. . . People Innovation Education Team Leaders attended the People Innovation Education Conference. . . People Innovation Education and Payroll Associates also attended SMPD Training to gain knowledge on the use of the upgraded SMPD Human Resources computerized package, which is Y2K compliant. . . Team Leaders attended the Train the Trainer session. . . Associates too part in Bomba (fire fighting) training and basic Lotus Skills.

Vancouver -- An associate and family picnic with a jungle theme was held in gorgeous Stanley Park. . . Jil Larson introduced a new training program to the Sales and Reservations team called the Psychology of Pricing to maximize yield and revenue. She will be offering ongoing training programs for Front Office and outlet associates in the benefit of revenue management. . .Kimberlee LoCicero (Asst. Director of People Innovation) gave a special training on safety behavior for 25 members of the safety committee. Her emphasis on safety training has made an enormous impact on the Workers Compensation claims.

Pangkor -- Congratulations to the Star of the Month (August) is Gunaseelan a/l Muthusamy – F/B (Front of House) & Badariah bt Zainon – Maintenance (Golf Course) (Heart of the House). A Beach Birthday Party was held for associates whose birthday falls on the month of May, June, July & August. People Development – Growth Orientation was attended by 7 associates. . . Judy Yeoh (Acting PIE Manager) attended PIE Conference in Glenmarie.

PRINCIPLES TO LIVE BY

It's great to win, but it's also great fun just to be in the thick of any truly well and hard-fought contest against opponents you respect, whatever the outcome. (Jack Nicklaus)

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If you keep doing what you've always done, you'll keep getting what you've always got. (Peter Francisco)

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If you're knocked down, you can't lose your guts. You need to play with supreme confidence or else you'll lose again, and then losing becomes a habit. (Joe Paterno)

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A man is only as big as he thinks he is. There's no limit on what you can do. ( Ben Feldman)

Yokohama -- Ms. Wu-Xioda Ardell from Wuxi, will be in Yokohama for 3 months on Exchange Program. She has shown much enthusiasm on learning the Japanese language, culture and the operation standard in Yokohama.

Johor Bahru -- Abdul Jalil Jaafar, Operations Manager - MIS, assisted in Pangkor for a week.

KLIA -- MIS Manager, Leong Siew Fun also assisted the Pangkor EDP team.

Pangkor -- In the absence of Ding, who has resigned as Sales Co-ordinator, Sunitha (Sales Support Manager from KL Sales Office) has been reallocated to the resort for a 2-month period until a suitable replacement is found.

San Francisco -- Kimberly Nelson, Culinary Institute of America trained chef and former Director of Catering at the SF Ramada, has been hired as Catering Sales Manager, replacing Susan Jaffe who has left. Kimberly will be a strong stand-in for Sue Robbins, Director of Catering Sales who will be on maternity leave for the next three months. . . Troy Gauthreaux and Lily Wong were promoted as Accounting Managers. The Accounting Department is being reorganized along the lines of the "Earn as You Learn" concept with self-directed work teams.

Johor Bahru -- Joseph Chan is the new Director of Operations - Rooms. . . Nor Zihan Kasim has been appointed Operations Manager - Housecare.

Singapore -- Rakesh Khetrapal has been appointed Director of Operations – Business Retention. His main responsibility is to lead the rooms' division team into the new millennium with the focus on "Absolute Care" and exceeding guest expectations. He has 21 years experience with most recently the Imperial Hotel in Singapore and the Oberoi Group of Hotels, Hyatt Regency and Le Meridien. . . Susan Tan is the new Sales Manager, Corporate. She has almost 14 years experience in the hotel and tourism industry. . . Rex Leow is the new Sous Chef for The Third Floor dining room. He brings 10 years’ of culinary experience from the Copthorne Orchid Hotel, Tower Club, Shangri-la Hotel, The Oriental and Marriott Hotel in Singapore.

KLIA -- Mohd Halim Merican joins as Hotel Manager. . . Sharon Wong, Manager IBU Facilitation moves to Business Development as Manager, Sales Admin. 28 new associates attended orientation, which culminated in a graduation ceremony and high tea.

Vancouver -- Cherie Carpenter, formerly Senior Sales Manager has been promoted to the position of Director of Sales. . . Beverley Toy has been promoted from Conference Services Manager to Sales Manager.

Glenmarie -- Azua Jalil joins as the new Director of Marketing Communications. She was previously with The Pan Pacific Hotel Kuala Lumpur in a similar capacity.

Pangkor -- Francis Xavier is the New Recreation Manager. . . Saravanan from KL joins as the new Income Auditor.

KL -- Christine Fong moves from the Malaysian Business Development team to the hotel as Business Development Manager. . . Vijay Kumar has been appointed Security Manager overseeing the KL, Glenmarie KLIA hotels.

RSO -- Maria Dempsey from the San Francisco RSO received her CMM certification in meeting management designation. This is an exclusive group with only a total of 60 people in the world with this designation. Only 24 were selected to be in this year's class after them reviewing hundreds of applications.

San Francisco -- August Upsells totaled an $25,904. Myra Howay lead the team for the 3^rd straight month with 52 room-nights translating into $5,233 directly to the bottom line! Ray marks achieved $4,386 and Jennifer Longueville $3,833. Their tips on how to succeed included listening to the guests and take their cues from what they hear. The magic words are, "What kind of room is it?" That really let’s us sell! If the guest says, "I want a nice room", we know he is interested in something beyond the basic. "If you are interested in a larger room (or a king bed instead of a queen) with a sofa, I can offer a luxury (or deluxe room). The regular price (i.e. rack rate) is such and such, but I can offer it for only an additional $25 (or $50 or $75)." If it is a family, a suite or connecting rooms is offered with space and privacy being stressed. The room’s description is the focus, not the price, and if it is a couple, the man is addressed, as he is more likely to spend the extra rather than the woman. If the guest is an early arrival whose room is not yet available, "If you would prefer not to wait, we do have this room ready right now for only an additional $$." They also talk about a high floor with a view, which is sometimes as interesting to the guest as the upgraded room. If time allows, they offer to show guest the various rooms to help him decide which one he prefers. When the manager is aware an upsell is process, he will help whenever appropriate. A call is always placed to the guest after an upsell, to ensure he is comfortable and happy with his selection. . . September’s Celebrity guests included: Shanice, Tom Petty and groups Insync, Foreigner, Blondie, Live and the Heartbreakers.

Singapore -- On 10 September, a Media Preview and Luncheon was held for about 40 journalists and correspondents to showcase the newly renovated ballroom. The Ballroom is geared to handle the growing popularity of international conventions, exhibitions, major social events, meetings, seminars, VIP banquets and weddings. The unique concept of food and beverage service utilises the combined talents and creativity of five well-known chefs from Keyaki Japanese Restaurant, Hai Tien Lo Cantonese Restaurant, Tuscany Ristorante, Western Cuisine and Desserts. The 5 chefs entered the ballroom seated in two sports convertibles.

Palau -- The resort will house 16 leaders (4 Presidents and 12 Prime Ministers) of the South Pacific Islands during the 30^th South Pacific Forum in late September. The Forum is a very significant event for the Pacific Islands and it is the first time for Palau to host such a grand symposium. Preparations for the largest international event ever to be hosted by Palau is on track in anticipation of the 250 to 300 delegates which includes heads of state of the sixteen independent countries in the Pacific, supporting staff and international media who will attend the event. The forum members are Palau, Federated States of Micronesia, Australia, Cook Islands, Fiji, Kiribati, Nauru, New Zealand, Nieu, Papua New Guinea, Marshalls, Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa. This annual meeting is to discuss political and economic issues.

Johor Bahru -- The hotel was chosen to provide F&B service at the Sultan Of Johor's Palace when His Majesty hosted the Prime Minister, Y.A.B. Dato' Seri Dr. Mahathir Mohamad, during his visit to Johor Bahru in August.

Dhaka -- Four-day Asian Parliamentarians’ Conference for Peace and Co-operation (APCPC) was held in the Grand Ballroom. 200 Parliamentarians and Representatives attended the Conference aiming at making a better world for the next millennium from 36 countries and civil societies. Prime Minister Sheikh Hasina inaugurated the conference. . . Director General of World Health Organisation (WHO) and former Prime Minister of Norway Dr. Gro Harlem Brundtland was welcomed by the new GM. Dr. Gro attended a Reception, accorded to her by Bangladesh Medical Research Council . . The father of the Green Revolution, Dr. M.S. Swaminathan was in Bangladesh for a two-day visit. He is recognised by TIME magazine as one of the 20 most influential Asians of the 20^th Century. . . Embassy of Qatar in Bangladesh celebrated the National Day with 800 local and foreign dignitaries in attendance.

KL -- The famed singer, George Benson, was in Kuala Lumpur for the "George Benson Live in Malaysia" concert held at the PWTC. He chose The Pan Pacific Hotel Kuala Lumpur for his one night’s stay. General manager, Christo Diamandopoulos, several department heads and associates gave him a warm reception.

Vancouver -- Regular guests Mrs. Aline Chretien, wife of Canada's Prime Minister and Cher made return visits to the hotel.

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Committee work is like a soft chair - easy to get into but hard to get out of.

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Even if you're on the right track, you'll get run over if you just sit there.

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Buy low, sell high, collect early and pay late.

Palau -- To prepare for the upcoming South Pacific Forum, all associates will be conducting a general clean up around the gardens and beaches. EXCO and most line associates signed-up in this event that was coordinated by the Green Committee - a true spirit of teamwork within PPR family. . . In return, a savory "Palauan" seafood lunch will be prepared by the Kitchen brigade to treat the hungry cleaners.

Johor Bahru -- It was a 'Fancy & Crazy Night' for everyone at the Annual Associates' Party. Host for the night was Khal Mad Craze a.k.a. Director of Operations - People Innovations and Education, Khalid Mat Din, who set the pace for the night with his jokes and array of crazy costumes. 25 associates received their 5-year award a certificate, service pin and a gift from President, Mr Umehara; Corporate Director of People Innovations, Ms. Lisa Mosher; and GM, Ms Lyndall De Marco. Among the surprises for the evening was a song rendition by Ms Lyndall De Marco and a dance put up by the Steering Committee. Other highlights included the inter-departmental presentation with the Rooms Division winning first prize with their glamorous and hilarious fashion show and dance. Azmi Ahmad (Butchery) emerged as the Karaoke champion. The grand lucky draw prize was a 21-inch Colour TV, while two lucky associates won Santa Barbara Polo & Racquet Club watches worth RM680 each in the Early Bird Draw.

KL -- The monthly associate Gathering saw a new item - a Coca-Cola drinking competition. Each participant was to drink as many bottles of 385ml Coca-Cola as possible within 3 minutes. The winner, Tan Yew Hong from Hai Tien Lo drank 4 1/4 bottles and walked away with a blender. . . The Sports Club organised a fishing trip participated by 20 associates. First prizewinner, Eisa Haron (Health Club) caught a 2.1kg fish, second was Shaifudin Ahmad (Housekeeping) caught a 2kg fish and Nazri Saad (Housekeeping) caught a 1.6 kg fish.

Pangkor -- Mr Ong (Purchasing Manager) is currently co-ordination with Purchasing Managers in the region on prices of common items such as paper supplies and heating fuel. We are currently looking at setting up a representative office in Ipoh, to enable guests to make payments for their holidays, to gain information and promotional flyers of our resort from this office.

Palau -- In addition to existing lustrous greenery and ocean-like fish and shrimp ponds, an added attraction for our guests is a mini-zoo, which shelters several native animals to Palau. You may also find wild ducks that added to the aesthetic beauty of our grounds as they lazily wander nearby the Activity Center fishpond. . . Good comments were gathered from our guests, as they feel rested in the Resort with the sound of the birds and animals amidst the peaceful atmosphere.

Singapore -- To fulfil the "Visions of Our Future" the hotel has embarked on a metamorphosis to add sparkle, elegance, contemporary luxury and hospitality with "absolute care" in order to create a new, exciting and formidable image. The S$5 million renovated Pacific Ballroom is part of our S$20 million renovation plan, which started in 1995. The 805 sqm Ballroom can sit 750 diners or 1200 reception guests. Special soundproof wall panels allow the ballroom to be partitioned into 3 rooms of 224 sqm, 214 sqm and 367 sqm. The programme has seen the completion of 800 rooms and suites, corridors, Pacific Lounge, opening of additional function rooms, the face-lift of Hai Tien Lo Cantonese Restaurant, renewal of the Third Floor dining-room and the opening of Tuscany Ristorante, Atrium Lounge and Aromaz Bakery & Deli. The hotel also offers business partners, guests and meeting organizers a 60-foot yacht for charter. The yacht, "Windsong" may be chartered for fishing, trolling, sail-training, snorkeling, scuba diving, island hopping or picnics. Charters extending beyond two days are available to exotic destinations like Tioman, Bintan, Redang, Anambas, Langkawi, Penang, Phuket and the Andaman Sea. For short trips, the yacht can take 9 to 12 passengers or six persons comfortably for over night trips.

Vancouver -- The Front Office set a record in upsells in August with $75,683 which added $5 to the average rate.

KLIA -- Associates Mohd Yunus Sampeh, Abu Bakar and Sooria provided assistance to an in-house guest from the Maybank BankAssurance Function. Sooria (Security) found the guest who had fainted in the corridor, he immediately contacted Yunus and Abu Baker from Absolute Care and put the guest on the stretcher and carried her to the clinic at the KLIA Terminal. Due to the seriousness of the illness, the guest then had to be brought to the nearest Medical Centre by hotel limousine. They then waited there until the guest was back to her normal condition. The General Manager of the Maybank BankAssurance in their function awarded these 3 heroes the next day.

Dhaka -- The hotel has just introduced a day-use Health Club Membership with the objective of utilizing lean time of health club and to earn additional revenue. There is a choice of 5 days a week or 3 days a week membership between Sunday to Thursday from 6 am to 5 p.m. everyday except ladies hour. The membership fee offers facilities like use of the swimming pool, gymnasium, sauna, steam bath, tennis & squash, hot/cold showers, lockers, towels and professional instructions. Single entry rates are also available. . . The hotel is offering FREE DEMONSTRATION of Carpet/Floor/Curtain Cleaning Services to the clients of Dhaka at Homes, Offices or Institutions. This is the first such service in Dhaka.

Pangkor -- The image of our current lobby will be changed soon. The Chandeliers will be removed (due to safety reasons) and replaced with 4 strips colourful satin cloth

Singapore -- For 1999, Executive Chef Chan Chen Hei and his team from Hai Tien Lo Cantonese Restaurant introduced Martell XO Brandy Lotus Paste beside his ever-popular traditional mooncakes. . . Fresh sardines were flown in from Japan for Keyaki Japanese Restaurant’s "Iwashi" promotion. These sardines are at their peak in September and were prepared in eight different ways to enhance its flavours.

KLIA -- Foster's beer – the official beer for Formula 1 will be on promotion for guests at all restaurants from the 16^th September till 31^st October, 1999 at RM20.00 nett per bottle

Glenmarie -- Traveller's Palm, the resort's fun pub hosted A Tribute to Elvis Presley in conjunction with his death anniversary. An 11-piece band called "LIVING LEGENDS" with impersonator Matt Reza as "Elvis Presley" plus a special appearance by Malaysia's own "Tom Jones" - Mark Slyester were the highlights. A sale of Elvis Presley CD's & beverages with the total collection of RM500 were donated to Taman Megah Handicapped & Disabled Children's Home. . . A new Coffee Corner replaces the old Deli Counter located beside The Glen Lounge. It offers Expresso, Iced Cappuccino, Café Latte & smoothies amongst others. . . The Traveller's Palm organised a once a lifetime celebration on 9.9.99 with activities like a new Filipino band NEXT GENES; an upgraded sound system; special price of RM 9.99 for beers & liquors after 9pm; ladies accorded a free 9999 mocktail; all to coincide with the pub's 3rd anniversary.

KL -- The hotel's Winemaker’s Dinner Chapter XIII saw 43 guests who turned up at the exclusive affair. Cheese lovers would have found the evening to be an extra treat as the theme for the dinner was ‘Hints of Australian Cheese’. Each course served had some form of Australian cheese included, and accompanied by Penfolds Wines. . . In conjunction with the annual Malaysia Fest, the hotel organized a Penang Food and Cultural Festival at the Selera Restaurant. . . September 9, 1999 was believed to be a date abounding in good luck and fortune, so visitors to the hotel on this day had an opportunity to test their luck in accommodation, food or beverage. Guests checking in on this day, having buffet lunch at Selera Restaurant or having a drink in the Lobby Lounge will get to pick a fortune cookie. There were 550 cookies in each category with 99 having a one-of-a-kind offer. Under the accommodation category, the lucky 99 will get to stay for the night at only RM99 nett. In food, the lucky 99 will only need to pay RM19.99 for their buffet lunch and in beverage, the lucky 99 will only need to pay RM9.99 nett for their drink.

Palau -- A special room package was offered to members of our local community during the Labor Day weekend. There was also a live band concert at the Coconut Terrace on one evening with a similar concert held at the sea plane ramp where about 100 fans (young and old) came out to enjoy the reggae music.

Johor Bahru -- 15 members of the Explorer Club attended an exclusive beauty workshop conducted by Elizabeth Arden's Training Manager, Cindy Chang. Themed 'The Whitening Beauty Essential Workshop', the participants were taught the basics of skincare with an emphasis on protecting the skin from harmful ultra-violet rays. This was followed by an interesting make-up demonstration where the participants picked up useful tips on make-up techniques. The 2-hour workshop ended with a personalized consultation where participants had the opportunity to ask questions on their individual problems.

Mauna Lani -- To celebrate the resorts success and to usher in the new millennium, a special "Celebrate Aloha" package offers rates starting at US$295.00 per night staying from October 1 to November 30^th, inclusive of a gift certificate worth US$400. This certificate is valid for food & beverage, retail purchases, resort activities like golf, tennis and spa treatments. Travel partners also get a special rate of US$125 per night during the same period.

KL -- The team hosted lunch/dinner and site inspection for: travel agents from Cairo organised by Malaysia Airlines; Asian Overland/South African travel agent; Amex Trivia Group with RSO Sydney; US representative office from Seoul, Korea; Jilly Steward of the Welcome Trust London. . . As the official hotel for Miss Intercontinental/Malaysia - 14 finalists stayed in the hotel. . . Other events held in the hotel included the IMIIT Conference, British Council Education fair, which also took up 524 room nights, RadTech’99 with 361 room nights. . . Other Activities included a long stay guest cocktail, Co-hosted cocktail reception for British Council, Summer Clearing group, Co-hosted PATA Malaysia and Travel Agents Federation of India (TAFI) meeting and press conference, DOSM, Christopher Lee attended Uruguay’s National Day celebration, he also attended dinner for TAFI delegates organised by MTPB, Ananth Ganesh, Business Development Manager, attended TAFI conference in Palace of The Golden Horses . . . The Star, one of the leading local newspapers celebrated its 28th anniversary recently. The KL, Glenmarie and KLIA hotel teams visited The Star’s office and presented a 5-kg chocolate cake with a congratulatory message from the group.

Yokohama -- A press conference was held to announce the hotel becoming a new member of The Leading Hotels of the World. Exposure was received in major newspapers such as Nikkei, Nikkei Industry, and Kanagawa Newspaper who reported it on their Economic Pages. Reading the article, a young couple has made a booking for their wedding banquet as they have experienced high quality service at sister Leading Hotels around the world.

Pangkor -- A Latino dance lesson was organised for members of the media to officially launch the annual Que Viva La Fiesta to be held on 23-24 October. . . Eugene and Sunitha participated in TAFI (Travel Agent Federation of India) in KL. . . Established a joint promotion with Tangs and American Express in conjunction with the "The Tangs Sale". . . A new Australian Package for 6 Nights/7 Days all-inclusive plus transfers with MAS Golden Holidays was launched to compete with the Penang Resorts. Special RED SPOT Flyer has been produced, backed up by major Ad Campaign to increase market share for Australia. . . GM Bill McNamara will attend the 3^rd Pangkor Region GMs meeting at the Swiss Garden Resort. Berjaya Airlines will be invited to attend next meeting to discuss feasibility of scheduled DASH 7 (48-seater) aircraft service to Pangkor Island. . . . Soccer 7s Tournament will be on 24-26 Oct. Other events coming up for the month at the resort: - Kingfisher Challenge (2 – 3 Oct), Fun-trail Grand Slam (9 – 10 Oct), Que Viva La Fiesta (23 – 24 Oct).

"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"

Malaysia -- An elaborate campaign aimed at wooing foreign tourists to Malaysia will be launched in October. This campaign is a joint effort between the Malaysia Tourism Promotion Board with the Tour & Travel agents. The ministry had set a target to attract 6.5 million foreign tourists to Malaysia by the year 2000. Organisers are preparing various campaign materials, which includes video clippings and commercials on places of interest in Malaysia to be shown to the foreigners. West Asia, India, South Korea, Japan and China are among the targeted countries. (Business Times - September 8, 1999)

Special Domestic Holiday Package -- The Culture, Arts and Tourism Ministry introduce a special domestic holiday package on September 11^th to coincide with the launching of the domestic tourism campaign. The Ministry will ask for discounted rates from tour & travel agents and those offering accommodation to make the tour package more affordable and attractive. (New Straits Times - September 3, 1999)

Yokohama -- A new shopping mall opened its doors in Minato Mirai 21 district. This 6 story building offers 6 different worlds such as Food, Fashion, Sports Outdoor & Hobby, Home Furnishing Interior, Yokohama Broadway, and Business. The Food World resembles a huge American Super Market carrying varieties of food and liquor imported from all over the world. Yokohama Broadway is a floor with the first Cinema Complex in Minato Mirai 21. 100,000 people gathered at this spot on the opening day.

Bangkok -- The 2^nd Bangkok Film Festival was held with a screening of a wide variety of films. The Embassies of India, France and Australia also hosted receptions to celebrate screenings of the films from their respective countries.

Yokohama -- Celebrating the opening of the new "World Porters" shopping mall in Minato Mirai 21, a special package valid for only the opening day of September 10 offered an Executive Twin Bed Room (45,000 JPY) for 9,100 JPY per person. This was promoted on FM Tokyo, a major radio company, broadcasted alive from the Pan Pacific Suite Room. This created an almost full house on that day. . . To celebrate The Bay Bridge's 10th birthday on September 27, a weekday package plan valid from September 27 till October 14 offers a 45,000 JPY Executive Twin Room at the rate of 10,000 JPY per person including a gift of pair of binoculars to enjoy the spectacular view of the bridge glittering in the dark. . . Akasuka is known as the greatest cruise ship(193m) in Japan, which carries 592 guests and 270 crews. Pacific Venus is the second ship (184m) which transports 702 guests and 180 crews through Australia, New Zealand, Hawaii, Alaska, and Japan for this year. The former arrived at Yokohama Port on Sep 16 and departed the next day, as the latter arrived twice Sep 20 and Sep 30 both leaving the next day. To celebrate their arrivals, a package good for the 3 days offers a rate of 9,500 per person inclusive a pair of binoculars.

Singapore -- The Millennium "Big Bang" Package offers a Deluxe Room for two inclusive American Breakfast and Champagne Brunch on New Year’s Day, use of health club facilities and late checkout. On 31^st December, hotel residents will receive free admission to the Hotel’s "Countdown Celebrations and fireworks display, which will take place in our 35-storey atrium. The 20-member Singapore Boys’ Brigade & Drums will perform as they make their way down from the fourth storey. The package is priced at S$280+++ per night (2 nights minimum) or S$240+++ per night (3 nights minimum). For an additional S$20, guests will receive an upgrade to a Panoramic Room while an additional S$30 offers a Panoramic Room with a balcony. Guests can alternatively choose to "live it up" in a Suite for S$160 more. The package is valid only for stays that include 31^st December and is subject to availability.

KL -- The School Holiday Package is priced at RM188 nett where guests get to stay in a Deluxe Room with up to two children under 12 years old sharing room. Children will receive free breakfast and storybooks. Valid from September 1 to 30, 1999.

San Francisco -- Kimberly Banks, Director of People Innovation, has been appointed to the Advisory Board of San Francisco State University School of Hospitality by the Dean of the Business School. A reception will be held in her honor to introduce her to the hospitality students.

Johor Bahru -- 68 packets of blood were collected in a Blood Donation Campaign organised by

the hotel together with the Kiwanis Club, Hospital Sultanah Aminah and the Puteri Specialist Hospital. The donors comprised of associates and hotel guests. . . The hotel sold giant doughnuts, curry puffs, Danish pastries, muffins and croissants at the Special Children's School's annual Charity Food Fair. Associates from the Sales and Marketing Department manned the booth. This is an annual event to help raise funds for the school which provides education to mentally retarded children and children with Down's Syndrome. Though it rained heavily throughout the day and some cars were even flooded, spirits remained high to raise funds for the underprivileged.

Yokohama -- The great earthquake that struck Turkey was a tragedy with 18,000 people killed and 42,000 people injured. The hotel made a contribution of 150,000 JPY and relief supplies to the needy affected by the quake.

KLIA -- The 3 Care Committees has merged into 1 care Committee, the "One Care Committee"(OCC) which was launched on 7 September in the hotel’s Auditorium. All managers and most of the associates were present to witness the ceremony. The first activity organized by the committee was the Managers Appreciation Lunch held at the hotel’s Cafeteria, Tower Café. June, July and August babies were also celebrated during this party.

Kota Kinabalu -- In line our company's Commitment to the Community, the associates have adopted The Bendulu Children’s Home located 80km from the city in the valley of Tambunan, a traditional village well known for its padi fields and bamboo houses. The orphanage houses almost 60 children from nearby kampungs and run by Sister Jane and two other nuns from a local church. Since December 1998, the team has organized a Christmas Party where some of the children got to stay overnight in the Hotel and enjoy the facilities. Through donations collected from associates, Christmas clothing and swimsuits were purchased for the children; a collection of about RM3000 was donated for purchase of food and daily necessities; a Junkyard Sale with all revenue going to the orphanage; before the previous Director of People Innovation Donna Webster left, she donated her own personal belongings i.e. computers, books, video player etc to the home; a team of 10 associates traveled to the home on a mission to help repair damaged cupboard doors, towel racks & toilet doors for the boys’ dormitory, and secondly, to find out what other outstanding needs the home had that we could help meet. GM Marc Hamel and the crew carried out most of the laborious work of repair, which took 5 hours of hard work! The ladies entertained the children with some craftwork – making paper cranes. Other needs were discussed with Sister Jane; an emergency request for some food supplies saw a collection of RM800 from associates within two hours. This was used to buy goods enough for two weeks of meals at cost price. Mr. Hamel personally delivered the goods just in time for the sisters to prepare for dinner. They had only half a chicken and some vegetables to feed sixty children!

Interview with Mr. Yozo Inagaki, President of Tokyu Hotel Chain

Mr. Yozo Inagaki former Vice Chairman of Pan Pacific Hotels & Resorts, was inaugurated as the President of Tokyu Hotel Chain, March this year. The interviewed was about the hotel industry in Japan and restructuring of the Tokyu Hotel Chain. Although the hotel industry in Japan is facing a very difficult business environment, development of new hotels has not slowed down.

1. It has been 5 month since you were inaugurated as President, what is your impression?

I have been in charge of the Pan Pacific Hotels and Resorts for more than 10 years, Tokyu Inn Chain for 2 years and felt that all three companies have a different company climate. Our associates here are to my impression very experienced hoteliers. If we look at the facilities we can not deny decrepitude but the original design of the hotels are outstanding. Business wise the GOP ratios of all the properties are very low and we are losing our competitive edge.

2. What is your short-term goal?

We must change ourselves into a continuous, stable profit generating company and become independent within the Tokyu Group at a very rapid speed. I have been saying this to our people at all occasions. We must change our mindset. We created a "3 years restructuring plan" last October and started to call on for early retirement but reality was very severe and we had to make adjustment this June and recreated the "restructuring plan" which we are implementing now. We can not expect growth in revenue so we had to look into expenses including number of employees. We must reduce total payroll and drastically reform hotels that are not making profit.

Restructuring is not only from the finance side but we must also consider the operation side to make the plan effective. There are old properties and new ones; city hotels and resort hotels and we can not simply look at them together as one. We must consider their characteristics and create a unique strategy for each hotel. Our company’s revenue is generated from each hotel and we can not survive if they can not survive. We need each property to become independent.

3. What is the problem the industry is facing at this moment?

Companies who do not have competitive power will be out of the game. The reason is the downward trend of the room rate. Also decreasing numbers of weddings and weddings becoming simpler. People do not spend as much money as they used to spend. Lastly the banquet reception, especially corporate functions have been reduced due to the economic situation in Japan.

4. What is the problem with the Tokyu Hotel Chain

We are down approximately 10% against last year in total revenue and we can not see the end to this downward trend. This is a problem throughout the industry. We are maintaining relatively high occupancy rate but the room rates are the problem. In order to put an end to this downward trend, increasing the GOP ratio is a pressing need.

We know why our revenue is decreasing every year so our assignment now is to create product competitiveness, cost reduction and strengthening our sales force.

In order to create product competitiveness renovation is essential, and there must be executive decision for the financing. Attractive services and menus, marketing so on is all software that everybody must work together and make an effort.

5. Tokyu Group has many different categories of hotels, is there any why they can collaborate?

We have the Tokyu Hotel Chain, Tokyu Inn Chain, The Harvest Hotels, Tokyu Stay, Le Nessa, other independent hotels and Pan Pacific Hotels & Resorts. I have been thinking for quite some while that we should standardize the brand name as for example "Tokyu Hotels" or "The Tokyu". If we look at it from the marketing side, it would be much easier and effective. We can maintain each hotel characteristics as they are and provide guests with a variety of products. We are using "Tokyu Hotels" in our brochures but we can come together under the standardized brand name and combine the branches, reservation offices, sales and marketing as a start of "Collaboration".

6. Does that mean "Tokyu is One"?

Yes. For example if our guest calls Tokyu Inn they should be able to give you information about all the hotels in our group. This must be a minimum standard. At this moment all we do is transfer reservation calls to the other hotels.

7. After the Hotel at the Cerulean Tower opens wouldn’t there be three Tokyu brand hotels in Shibuya including Tokyu Inn and Excel Tokyu Hotel?

If we think about the district war between other major districts like Shinjyuku, Ikebukuro and Roppongi, need and demand for new commercial facilities and accommodation was very high. This will help Shibuya to bring back its competitiveness. It can be seen as a collaboration of the three hotels but it is also a challenge. If the three hotels can work together and prosper, other group companies like Tokyu Department Store, Tokyu Land and Cinemas who also does business in Shibuya will benefit and the whole group will regain our strength. We consider the hotel at Shibuya our flagship hotel and put in every knowledge and effort to make the project successful.

8. Which hotel is the flagship hotel at this moment?

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

kazuyoshi.shimojima@tkk.tokyu.co.jp