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If New York’s state budget passes, tourists could wind up paying more for hotels booked through third parties like Liberty Travel, Globus Tours and Travelocity.
The current version of the state budget now winding its way through Albany includes a 20 percent increase in hotel occupancy taxes for travel intermediaries (meaning travel agencies, tour operators and online travel companies). If the legislation passes and the third parties pass this new cost on to their customers, that would mean higher prices for visitors to New York. In New York City, where the current occupancy tax is now 5.875 percent, the tax for third parties would increase by one-fifth to 7.05 percent.
Not surprisingly, the travel industry is up in arms. “This is basically the Connecticut and New Jersey tourism promotion act,” said Andrew Weinstein, a spokesman for the Interactive Travel Services Association (I.T.S.A.), which represents Orbitz, Expedia and other online travel companies. The association has formed a coalition with the American Society of Travel Agents (A.S.T.A.) and the Business Travel Coalition to fight the bill.
If passed, the new tax would be unique, said Colin Tooze, a lobbyist in Albany for A.S.T.A. North Carolina recently passed a similar tax on travel intermediaries, but in this case the tax levied is the same as whatever the hotel occupancy tax is in the given municipality. North Carolina’s law goes into effect Jan. 1, 2011.
A spokesperson for Assembly Speaker Sheldon Silver’s office said that the proposed legislation was intended to close a loophole under which third parties have paid taxes on the rate at which they purchased rooms but not on the higher price they eventually resold them for. Mr. Weinstein of the I.T.S.A. disputed this, saying it was a misconception that travel intermediaries bought blocks of rooms at reduced rates. “Travel intermediaries, whether online or offline, make their money from service fees or commissions, which have never been subject to hotel occupancy taxes anywhere in the country,” he said.
Meanwhile, Albany’s budget process is even more convoluted than the argument over how third-party travel companies make their money. So is this bill even likely to pass? “Things look stalled in Albany,” said Steve Powers, owner of Hidden Treasure Tours in Long Beach, N.Y., and president of the Long Island chapter of A.S.T.A., “but who knows what’s going on behind the scenes?”
If the bill is passed and the cost passed on to consumers, they could avoid the extra fee by booking directly with the luxury hotels. Then again, that would mean giving up on the package deals that tour companies offer.
Source: blogs.nytimes.com
New York State May Increase Taxes on Hotels
Leading Hotels will add 2nd luxury hotel in Singapore by end 2010
Leading Hotels of the World hopes to add 2nd luxury hotel in Singapore by end 2010
SINGAPORE: Hospitality chain Leading Hotels of the World is looking to put its premier brand behind a second luxury hotel chain in Singapore.
It's targeting to have something ready by year end but said the schedule hasn't been confirmed.
The group's network in Singapore currently only has Capella Singapore, a luxury resort on the tourist island of Sentosa.
But around the world, it represents over 450 legacy hotels, resorts and spas.
The Capella Singapore luxury resort, opened in early 2009, spans over 12 hectares on Sentosa island.
It prides itself on having everything high-end, from fine-dining to recreation and health to what it said is one of the most romantic weddings and honeymoon destinations.
Leading Hotels of the World (LHW) said in the first six months of this year, its branding and marketing of Capella has helped the resort generate US$2 million in sales.
That's up 53 per cent on year.
Philip Ho, vice president, Asia Pacific, The Leading Hotels of the World, said:
"What we actually did is create a couple of new initiatives and that included the Leaders Club Reward whereby for every five stays, we give one night free.
“We also increased our sales force here in Asia Pacific. We actually doubled our sales force year over year this year."
Now, the group's eyeing a second luxury hotel in Singapore and looking at the city centre as a possible location.
LHW said the new hotel should be of equivalent quality and as iconic as Capella to offer high-end clients a unique experience.
The group sees opportunities in Singapore due to record tourism numbers, helped by the opening of two integrated resorts.
Asia-wide, it's bullish about Australia, China, India, Taiwan and Japan because of the number of high net worth individuals.
Mr Ho added: "Japan has got half the number of high net worth individuals in the whole of Asia Pacific. There are about 1.2 million high net worth individuals. We anticipate that China and India will accelerate in terms of number of high net worth individuals."
The group generated US$28 million for the some 60 luxury hotels in Asia under its wing in the first half 2010, a 36 per cent increase on year.
Source: Channelnewsasia.com
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New luxury hotel opens on Cairo's Nile
Luxury hotel chain Kempinski has opened the first 5-star boutique hotel in Egyptian capital Cairo, the Kempinski Nile.
Offering 137 rooms and 54 suites, the Kempinski Nile overlooks the banks of the famous river and is the latest hotel to open in the city, which is undergoing something of a tourism boom.
The hotel is designed by French architect Pierre Yves Rochon, who is responsible for parts of the famed George V in Paris and the newly renovated The Savoy hotel in London.
Kempinski says that Rochon's design "represents a masterpiece of contemporary design with attributes that specifically pay homage to Egypt's ancient history."
Guests can choose from four restaurants, one of which has no menu - chefs are on hand to cook all dishes to order on request - and four bars, including a rooftop bar and shisha bar.
The hotel also offers a spa and health club, private balconies, marble bathrooms, a pillow concierge and a butler service for residents.
Recent figures suggest that Egypt is currently seeing something of a tourism boom, helped by the weakness of the UK pound which is making the country more attractive to visitors from Britain specifically.
British tourism to Egypt was up 20 percent in 2009, according to industry figures, and with the addition of new routes to the country from the US by Continental Airlines in 2011, American tourism could be next.
Although Kempinski is the first of the "Leading Hotels of the World" collection to open in Cairo, it could have competition in the next few years - fellow high-end brand Rocco Forte plans to open its property there in 2013.
Source: Independent.co.uk