“NEW STRATEGIES TO MANAGE CAPACITY WILL BE THE KEY TO SUSTAINABLE GROWTH” MARY GOSTELOW, PRESIDENT GOSTELOW TRAVEL

11/04/2003

At the World Travel & Tourism Summit, Mary Gostelow will moderate a panel discussion, entitled Tomorrow's Choice, which will focus on the management of capacity as a vital step along the road to recovery.

In a statement previewing the session, Mary Gostelow said:

"The panel will look at over-capacity in the supply chain, considered by many to be the main obstacle in stimulating global tourism growth. Can over-capacity be anticipated? It is particularly obvious in some sectors (the mid-market business sector in key cities is already experiencing over-capacity in the hotel industry). Can these sectors be anticipated ahead of time?

Where does luxury travel fit into this scenario? And will the luxury market as we see it now (US and Europe, in the main) be supplemented by, or even replaced by, luxury travellers coming out of, for instance, China, Russia and other outbound destinations? What will luxury require from airliners, cruise companies, hotels and tour operators?

How will the industry cope with such sudden and unforeseen blights as 911, Bali, Mombassa and now SARS? With today's instant communication it is anticipated that such challenges may well increase, and on the microbiological front, scientists and world health officials accept that sudden killer viruses will not only emerge naturally but also spread at lightning speed. How can crisis management be most effective at preparing for the unknown opponent? And how should the entire industry adapt?

And how will our social responsibility ensure better implementation of carrying capacity standards that will not overwhelm such ecotourist destinations as the Galapagos?

Tomorrow will undoubtedly lead to restructuring, which will not work unless it is symbiotic with innovation, both in new products and new business models. This could well mean that destinations that will flourish in years to come will be those that respond quickly to changes in demand, and consistently deliver exciting, quality products that are good value for money.

Such changing business models will require increased public-private sector partnerships and strategic industry alliances Until now, public sector officials have retained responsibility for the overall development of a destination. Is it time for the industry to take this responsibility into its own hands? And why is there less than commendable cooperation between airlines, cruise companies, hotels and tour operators?

Ultimately, this session will seek to identify industry-wide strategies that will help to balance supply and demand effectively, in the quest for sustainable development?

The other panellists will include:

• Geoffrey Kent, Chairman & CEO, Abercrombie & Kent Group of Companies
• Scott Forbes, Senior Executive VP & Group MD, Cendant Europe
• Doug Gollan, President & Editor-in-Chief, Elite Traveller Magazine

The 3 rd Global Travel & Tourism Summit
The 3 rd Global Travel & Tourism Summit is being organised by the World Travel & Tourism Council and will take place on May 15-17 in Vilamoura , Portugal .

The event will be attended by top level company executives and government officials from around the world, and other people involved in the Travel & Tourism industry at the most senior level.

The Summit's main objectives are to help the Travel & Tourism industry to come together to rebuild confidence in the face of war, terrorism, disease and economic slowdown, to turn challenges in to opportunities, to build a vision of 'New Tourism' and initiate a strategy to achieve it.

Other confirmed speakers include Neil Armstrong, the astronaut, the President and Prime Minister of Portugal (Jorge Sampaio and José Manuel Durão Barroso), the Chairmen of American Express (Ken Chenault), Continental Airlines (Gordon Bethune), Marriott International (Bill Marriott), Iberia (Xabier de Irala), Qatar Airways (Akbar Al Baker), Six Continents (Sir Ian Prosser), Starwood Hotels and Resorts (Barry Sternlicht), TUI (Michael Frenzel) and over 30 more top executives of companies of similar stature.

Travel & Tourism is the world's biggest industry, accounting for nearly 200 million jobs, and over 10 per cent of world GDP, more than US$3,500 billion.

For background information on WTTC, please go to www.wttc.org .

For more information contact us at enquiries@wttc.org.