Tourism officials hope weak dollar will lure Europeans
Canada, the United Kingdom, Venezuela and Germany were the top four countries of origin for international travel to Florida in 2001.
06/14/03
By LAURA LAYDEN, lllayden@naplesnews.com
Vacation may not be all they ever wanted.
But it's what many Americans want this summer, and that's helping to boost the local tourism industry here at a time when business is at its slowest.
Since the start of the slow season in May, some local hoteliers say they have seen more tourists coming here than they expected.
The Edgewater Beach Hotel in Naples had one of its best Mays ever this year.
May was also good for the Marriott's Marco Island Resort.
"I think it's just that people are tired of not taking a vacation and they are just saying, 'You know what? I need to get away,' " said Laurie Cardenuto, the Marriott's director of marketing.
This year, hoteliers and other industry watchers are expecting a much better season than last year's.
Last summer — the first once since the Sept. 11, 2001, terrorist attacks on the United States — was one of the slowest local hoteliers have seen in years. The threat of more terrorist attacks kept many people closer to home. A sluggish national economy and rainy weather here only dampened the picture.
Now the U.S. economy is stronger and that's one of the reasons Americans are expected to travel more this summer.
Local hoteliers already have noticed more people driving here from other parts of the state, such as Orlando, Tampa, West Palm Beach and Miami. Some are also seeing more bookings from European travelers, a trend they link to the strengthening of the euro against the dollar.
The euro hit a record high of $1.19 on May 31. And though its value has dropped since then, it could grow in coming months, encouraging more Europeans to come to Southwest Florida.
Europeans typically travel between the months of June and August. So there is plenty of opportunity for more to come here this summer, said Jack Wert, executive director of the Greater Naples, Marco Island and Everglades Convention and Visitors Bureau.
"We should see an upward trend in some international visitors, with the improvement in the euro and the weakening of the dollar," he said. "That makes us a better bargain."
At the current rate of about $1.18 for their currency, Europeans would pay about $168 a night for the same hotel that in Europe would cost $200. Likewise, a $1.50 cup of coffee would cost them $1.26 in the United States.
Scott Shoenberger, managing director for LaPlaya Beach & Golf Resort in North Naples, said with the war in Iraq considered over, he's optimistic that more foreigners will travel here in June, July and August. He's especially bullish on the European market because of the increase in the euro's value.
At one time, Europeans accounted for 13 percent of the hotel's business in the off-season, Shoenberger said. That dropped to about 6 percent last year in the aftermath of the Sept. 11 terrorist attacks, but there are hopes it will reach 10 percent this year, he said.
"It should be a relatively good off-season for the Naples market from the European standpoint," he said.
In May, the hotel's business was up 52 percent over the same month last year. Shoenberger said it was in part due to more European visitors.
Even in season when room rates were running about $400 a night, about double what they are now, more Europeans could be spotted at the LaPlaya. The hotel recently got a $54 million facelift and that could be part of the reason for the increased interest from Europeans and other foreigners, Shoenberger said.
"I think it helps that we are new," he said. "We are the new kid on the block."
Shoenberger and other hoteliers also have noticed more visitors coming from the United Kingdom this year, and, if that trend continues over the coming months, it will give another much-needed boost to the tourism industry this summer.
Suya Davenport, director of leisure sales for The Registry Resort and Edgewater Beach Hotel in Naples, said her hotels have been seeing more visitors from the United Kingdom and it's one of the reasons the Edgewater hotel had one of its best Mays, she said.
The LaPlaya also has seen an increase in visitors from the United Kingdom.
"In the case of the United Kingdom, I think that some of the international problems (with terrorism) have worked in our favor," Shoenberger said. "The English people feel safer coming to the United States than they would going to a resort destination in Europe."
Any increased interest from foreigners comes as welcome news to local hoteliers.
For the past two years, European travel to Southwest Florida has been off because European currency has been so weak and German visitors have been scarce because of economic problems in that country. And then, of course, there was Sept. 11.
"The dropoff in foreign travel was seen long before 9-11," said Walter Klages, an economist who heads Research Data Services in Tampa and tracks visitor numbers in Lee and Collier counties. "It simply accelerated the problem because it created the perception of a personal risk in travel no matter where you went."
When foreign travel to the United States is down, it's felt across Florida because it has become such a large part of the state's tourism market.
In 2001, Florida surpassed New York in foreign tourists, attracting more than 7 million overseas visitors. That made it the No. 1 state for foreign travel.
Canada, the United Kingdom, Venezuela and Germany were the top four countries of origin for international travel to Florida in 2001.
While an upturn in foreign travel may boost tourism here this summer, it's the travel patterns of Americans that should have an even bigger impact.
The travel industry estimates that Americans will take roughly 275 million leisure trips this summer, about 2.5 percent more than last year. While many have yet to make up their minds where they want to travel, they are expected to take more driving vacations and that should benefit this region.
It's the drive market that local hoteliers target anyway this time of year, primarily Floridians who live within five or six hours of Southwest Florida.
Shoenberger estimates that more than 70 percent of the tourism business in Florida is generated by Floridians in the summer.
Floridians helped boost business for local hotels Memorial Day weekend, resulting in strong occupancies. And that trend is expected to continue throughout the off-season.
Robert Colantonio, general manager of the Hampton Inn in Bonita Springs, said he's seen a lot of Florida residents checking in over the past two months, coming from such places as Tampa, Orlando and Miami.
In May, his hotel's revenues were up 15 percent more than during the same month last year.
"In our case I think it's a result of the marketing we've done for this hotel, specifically," Colantonio said. "We have some packages and other things that we have offered to Florida residents and to local businesses. That is where our increase has come from."
Colantonio is not as optimistic as some other local hoteliers about foreign travel this summer. Last year, the Hampton Inn saw very little business from foreigners and Colantonio doesn't expect that to change this year.
He thinks European and British travelers will be more likely to stay at more upscale hotels, such as The Registry Resort or The Ritz-Carlton, Naples.
"Certainly properties on the beach are the first choice," he said. "We are further back from the beach. If they can get a good rate at the beach, why stay two miles away?"
Even without foreign travelers, Colantonio predicts this off-season will be much better than last for his hotel.
There are many signs in the local industry pointing to the start of a recovery from Sept. 11.
In April, tax collections on hotels and other lodgings were up 16 percent over the same month last year, said D.T. Minich, executive director of the Lee Island Coast Visitor and Convention Bureau. He said May was a strong month for many Lee County hotels in part because there were a lot of weddings. Weddings are something his bureau has been working hard to attract.
Despite the positive outlook for the off-season this year, the Lee Island Coast Visitor and Convention Bureau plans to tap emergency funds and will spend more money on marketing than usual. That's because there is increased competition from other markets.
"The Keys are spending an additional $500,000 to attract Floridians," Minich said. "They are one of our biggest competitors. I would not be spending this money otherwise. It's like we have been backed into a corner."
While there are a lot of bright spots in the local tourism industry right now, there are still a lot of concerns about the future. And most still don't expect this year to be as good as 2000 — before the terrorist attacks on the World Trade Center and Pentagon.
"No, we're not quite back to the peak levels of 2000," Klages said. "But we are certainly doing better than we did last year."
He doesn't expect a full recovery until next year.
Venezuelan Authorities, Government Supporters Clash
<a href=www.voanews.com>VOA News
14 Jun 2003, 01:39 UTC
Venezuelan authorities have fired tear gas to disperse dozens of government supporters who tried to disrupt an opposition rally in a Caracas slum. At least 14 people were injured.
Riot police and national guard troops took action Friday as pro-government demonstrators pelted them with rocks, bottles and firecrackers in the Petare neighborhood. Ambulances evacuated patients from a nearby hospital amid thick clouds of white tear gas.
While authorities clashed with the supporters of President Hugo Chavez, a block away opponents demanded a referendum on his rule. The opposition center-right COPEI party organized Friday's protest to call for President Chavez to leave office.
The trouble comes less than one month after unknown gunmen fired on an opposition rally in another impoverished area, killing one person and leaving 17 people injured.
Political tensions over the Chavez government have troubled Venezuela for months. Scores of people have been killed in street clashes and violence since April of last year when the president survived a brief coup. In December, Mr. Chavez's opponents began a nationwide general strike in a failed bid to force him to resign and call new elections. The walkout ended in February.
Chavez critics accuse him of leading Venezuela toward economic ruin and trying to model the oil-rich country on communist-run Cuba. President Chavez blames the economic downturn on the failed strike. Venezuela's Central Bank says the economy fell 29 percent in the first three months of the year.
Venezuelan troops battle demonstrators
Associated Press
Caracas — Venezuelan troops fought pitched street battles Friday with supporters of President Hugo Chavez who tried to disrupt an opposition rally in an impoverished area of the capital considered a government stronghold.
At least 14 people were injured.
Troops in armoured vehicles arrived at the scene while Chavistas, as the president's supporters are known, fought back, throwing bottles, rocks and firecrackers at security forces.
They also looted a nearby police station after tearing down the walls with sledgehammers and metal rods.
Hundreds of national guard troops and police in riot gear launched tear-gas grenades to disperse more than 100 rowdy government backers.
Columns of black smoke rose from tires burning in the street and mingled with thick clouds of white tear gas.
Gunfire from unknown sources wounded one police officer and three civilians, said Caracas Fire Chief Rodolfo Briceno.
At least 10 people were slightly hurt by flying objects, he added.
The tear gas forced the evacuation of 25 children from a nearby hospital.
Ignoring government warnings violence could erupt, opposition parties called the rally as part of a series of events in Caracas slums to make a case that Mr. Chavez's traditional support among the poor has evaporated.
Interior Minister Lucas Rincon pleaded with march organizers to take the protest to an area where there would be less potential for violence.
"We alert the population to the security risks that this act carries," Mr. Rincon said in an address to the nation late Thursday.
"This isn't about impeding a political act. It's about taking it to a less risky one."
Hours before the planned protest, dozens of Chavez sympathizers burned tires in a plaza on the only route to the opposition's chosen site - an eastern Caracas street beneath hills covered by red-brick shanties.
The protest came three weeks after unidentified gunmen killed one person and wounded 10 at an opposition march in a poor neighbourhood on the city's west side. No one was arrested.
"A truly dark story has repeated itself. We had said this was the least appropriate place to stage this demonstration," said Vice-President Jose Vicente Rangel.
The opposition COPEI party refused to cancel the protest, insisting it wouldn't be intimidated by what it called government-sponsored violence to silence dissent.
Mr. Chavez denies those allegations.
He counters opponents constantly provoke chaos to justify the ouster of a democratically elected president.
The president was briefly ousted in an April 2002 coup and defied demands he step down during a ruinous two-month general strike that collapsed in February.
Early Friday, federal police sharpshooters stationed themselves on rooftops overlooking the protest site.
The city government dispatched another 3,000 officers to patrol the streets.
At the protest three weeks ago, police snipers fired at public-housing buildings where the shooting apparently originated.
Political violence has killed more than 50 people in Venezuela over the last year, mostly during clashes between pro- and anti-Chavez forces.
The country is deeply divided between those who adore Mr. Chavez as a champion of the poor and those who revile him as a power-monger trying to remodel Venezuela after Cuba's socialist system.
Mr. Chavez's foes are demanding an internationally backed referendum on his rule later this year, insisting it's the only way to restore stability to Venezuela, a key oil exporter to the United States.
First elected in 1998, Mr. Chavez pushed through a new constitution in 1999 that paved the way for his 2000 re-election to a new six-year term.
BRAZIL- Efforts are adding up
BY MARIA VICTORIA VALDES-RODDA -Granma International staff writer-
According to the Folha Agency, there was great support in San Paolo for Lula’s recent contribution to the 8th National Congress of the National Union of Brazilian Workers (CUT). This information corroborates the latest results of a poll regarding widespread popularity throughout the country for its leader five months after his investiture and despite initial hints of concern.
Lula stated at the last G-8 meeting that his Zero Hunger Program should be considered at worldwide level with the active participation of the rich countries.
During the meeting, the president – who is particularly identified with work-related problems – outlined an inventory of economic and financial topics, without leaving out the difficulties that he has encountered up to now. These include, he said, the complexities of achieving pre-election promises, although he was adamant that Brazil would once again prosper.
"You cannot judge how a child will grow up when she is still at her mother’s breast, and this is what is happening to us just a few months after the new government took power," he stated, frankly alluding to his counterparts and other political adversaries.
However, Luis Inacio Lula da Silva once again urged increased efforts and admitted that attaining the dream of a better nation will take time, "something that should not and cannot scare anyone."
Shortly after participating in the above-mentioned meeting with workers and the business sector, Lula took part in a debate with intellectuals who demonstrated similar concerns and also asked where the country was headed.
María Vitoria Benevides, a distinguished political expert, stated: "the soul of the nation will return when Lula assures us all that the economic policy is ready to change."
One of the principal doubts surrounds the materialization of the Zero Hunger Program that, while showing signs of appearing, is still insufficient.
"When Lula talks of projects, we know that he’s on the side of the people and this instils us with optimism, " the specialist emphasized.
The latest national survey reveals that 78% of Brazilians approve of the president’s undertakings during April and May although, Prensa Latina revealed.
Amongst the concerns that need to be resolved, economic growth, stimulating exports, job creation, and wage increases appear as priorities. Without a doubt, another of the most questioned challenges for the executive is the definitive approval by Congress (which already has support from the governors of the 26 states) of making pensions and retirement funds subject to taxation.
"The pension funds policy cannot change to prejudice people, but to improve the lives of pensioners. We are reaching a moment for discussion and rightly so, in order to bring about a pension funds policy that will guarantee the rational use of those monies," Lula highlighted when outlining his intentions last April 30 in parliament.
Housing Minister Antonio Patocci, author of the controversial measure, maintained that it was inevitable as, according to him and as reported by ANSA, there is no tangible possibility of reducing tax burdens.
Brazil has an anticipated social provision deficit of $30,000 million USD, implying that intended reforms cannot be put off, so as to avoid an eventual collapse in this sense. Nevertheless, certain renowned parliamentary voices within the ruling Workers Party are resisting the proposal to tax retirement funds and pensions. Once again Lula will have to explain, convince and do his sums.
More oil discovered in Brazil
PETROBRAS, the major state-owned oil company, announced on June 5 that the country now has a new crude reserve estimated at 500 million barrels, after the discovery of three deposits in the northern oil zone of Cuenca de Campos, off the southern coast of Espíritu Santo state, the BBC revealed.
At depths of 1,473 meters and 1,535 meters these underwater wells were detected following exploratory expeditions along the continental shelf of the above-mentioned region.
From now on, according to a Petrobas report, this discovery, together with other areas currently being prospected (Jubarte and Cachalote), ensures that the so-called South American Giant can count on a potential reserve of 2.1 billion barrels of crude, meaning that it now comes second to Venezuela in terms of oil volume.