AXIS Hospitality International

Hospitality Turnover is Our Fault

WHY DO WE LOSE MOST OF THOSE WHO WE HIRE?

The industry must face up to the crisis it faces. In the next five to ten years, the hotels and restaurants in the Western world and in many parts of the developing world will not open since they will not be able to attract enough employees. We will be perhaps as many as 10 million workers short.

They generally start young with or without a secondary or university education and we put them to work with basic or little training on round-the-clock shifts, over weekends, with little or poor supervision, for part-time commitments and an unknown career path. While pay rates are at the low end of the scale compared to other industries, we are slow to shape the future as a vision for their young careers.

How many industries can offer the possibility of 'middle-management' positions within a few short years and senior management within ten, unlimited travel opportunities literally anywhere in the world, possibilities to learn other languages, develop international skills, develop social skills, meet interesting and important people and to emmerse one's career into the associated world of entertainment, fashion and design, in fact to join the fastest growing industry in the world.....tourism.

• Why do we keep these things quiet?
• Why do some 50-60% of hospitality students go into other industries?
• Why do we leave lower middle management in charge of this important new employees?
• Why do we lay them off when business takes a dip?

What must we do?

What can each of us do in this industry?

Spa Standards

INTERNATIONAL STANDARDS ORGANISATION TO DEVELOP INTERNATIONAL SPA STANDARDS

New International Standards for spas around the world? Does it make sense to you that Sweden and Swaziland should 'toe the line' in spa services?

Who will decide whether the standard should be raised to the level of the best in the world or lowered to the level of acceptable? Who decides who is the best in the world and what will they feel like if they are required to reduce their standards and their prices to meet international standards? Who decides what is acceptable? What might be acceptable for a 3 Star customer may not be for a 5 Star customer.

Should national spa standards be superceded by international standards or can a country 'opt out' of the international program? How will the visitor know if the country has opted out or not?

Who pays for the monitoring of these new international standards?

Before we go anywhere on this one.......what actually is a Spa?

spa (spä)

n.

1. A resort providing therapeutic baths.

2. A resort area having mineral springs.

3. A fashionable hotel or resort.

4. A health spa.

5. A tub for relaxation or invigoration, usually including a device for raising whirlpools in the water.

6. Eastern New England See soda fountain.

---

[After Spa, a resort town of eastern Belgium.]

Regional Note: The word spa, taken from the name of the famous mineral springs in Spa, Belgium, has become a common noun denoting any place with a medicinal or mineral spring. Less well known is its Eastern New England sense, "soda fountain," probably an allusion to the carbonated or "mineral" water that is a staple ingredient of many soda fountain concoctions.

Sounds like the International Standards Organisation is just the right body to determine standards for all these definitions!!

Good luck with the establishment of standards for 'fashion' as it relates to spas. When will this madness stop?

ThesaurusLegend:  Synonyms Related Words Antonyms

Noun	1.	spa - a health resort near a spring or at the seaside watering hole, watering place pump room - a pump house at a spa where medicinal waters are pumped and where patrons gather playground, resort area, vacation spot - an area where many people go for recreation Wiesbaden - a city in western Germany; a spa since Roman times
	2.	spa - a fashionable hotel usually in a resort area resort hotel hotel - a building where travelers can pay for lodging and meals and other services playground, resort area, vacation spot - an area where many people go for recreation
	3.	spa - a place of business with equipment and facilities for exercising and improving physical fitness health club, health spa fat farm - a health spa that specializes in helping people lose weight business establishment, place of business - an establishment (a factory or an assembly plant or retail store or warehouse etc.) where business is conducted, goods are made or stored or processed or where services are rendered

RICHARD IVEY SCHOOL OF BUSINESS (UWO)

STRATEGIC REVIEW OF 'SPENCER HALL'

Background

The prestigious Richard Ivey School of Business' Spencer Hall at the University of Western Ontario was owned jointly by the University of Western Ontario and a prominent Canadian bank. Operating as a hotel for Business School students and as a training centre for the bank it was producing significant financial losses each year.

The property needed to be reviewed by a professional and a committee was formed to recruit a consultant for the 'review'. David McMillan was selected and the review included,

1. A full review of the physical facilities.
2. A Financial analysis.
3. A historical Market segment analysis.
4. Owner and user interviews.
5. Competitive review of similar conference facilities.
6. Development of a preliminary Strategic Plan.
7. Presentation to the Committee.
8. Presentation to the University Dean.

Outcome

The facility was upgraded according to the plan and is now managed by a professional conference management company.

10 million hospitality workers needed

Why is it is easier to import a Tomato than a Trainee?

With so many poor, willing and needy un-employed, why do most countries clamp down the borders when there are so many jobs available?

Why give a man a fish..........when you can teach him to fish? Why keep a man at home, poor, inactive and hungry when he could do an honest week's work and feed his whole family?

If national security, native job protection and obsolete bureaucracy are even a small part of the responses to these questions, there are acceptable, secure solutions at hand for at least 10 million families.

For more information, contact [email protected]

CUBAN RESORT RENO

CUBAN FAVOURITE NEEDS RENOVATION

Background.

Marea del Portillo is a remote 100 room resort located on a 'black sand' beach at the foot of the majestic Sierra Maestra mountains in Southwestern Cuba some 90' drive from Manzanillo and a short 12 km drive from Pilon. In the early 90s and during Cuba's 'special period', money was scarce and renovations required hard US currency to acquire the FF & E and construction materials, except cement which was locally available.

Unable to finance these renovations by any other method, the management team, headed by David McMillan needed to develop a creative sustainable formula that would allow the Cubans to use their hard currency for more important uses, like food, petroleum, agricultural spare parts etc.

The Plan

Using the services of a Mexican resort architect, the team scoured the Cuban villages to find materials that could be used in the renovation project and for which hard currency was not necessary and could be paid for with Cuban pesos.

The trips to the countryside uncovered a multitude of excellent products including tiles, wood carvings, metal artwork and frames, cement artifacts and panels and much more.

The team started with the premise that the basic furniture would be built with a cement base and that the ugly white beams  and square columns (prevalent throughout Cuba) would be highlighted by a selection of colourful pastels.

The plan would see a saving in US Dollars of approximately $3 million on that project alone, a concept that is easily translated to many parts of the world.

The Outcome.

The property continues to attract excellent occupancies during the winter season of which close to 60% are 'repeaters' or return guests who return every year and some several times each year.

ULTRA ORTHODOX JEWISH HOTEL & VILLAS

FIVE STAR LUXURY HOTEL & VILLAS JERUSALEM

In anticipation of the upcoming Millenium and the rapid and strong advancement of the Peace Process in the mid 1990s, the owners of a well located Jerusalem property were planning to build a 200 room hotel and 50 luxury Villas and to ensure that it respected all aspects of the Orthodox Jewish faith.

After a process of recruitment in which they sought an appropriate operating partner, the owners decided on David McMillan of Venezia Hospitality, a veteran International Hotelier who had previously opened and operated an Ultra Orthodox Muslim hotel in Saudi Arabia and who was sensitive to the special requirements of owners and religious visitors in this region of the world.

The process of selecting the brand was a delicate one in which the major brands' actual and assumed religious connections were reviewed in detail. This process allowed the owners to assure that the brand under which Venezia Hospitality would operate the hotel would have no undue influence on the 'modus operandi' of this Utra Orthodox property. The final selection of Westin Hotels & Resorts was made after this rigorous review process in which some of the world's largest groups were eliminated.

The process of designing the hotel and support facilities to reflect the special needs of the Orthodox Jewish Community was complex and intricate involving the architects, engineers, manager, brand representatives, rabbis, investors and their advisors.

The Project was ultimately slowed down and then put on hold when the Peace Process was interupted by the assasination of Yitzhak Rabin and the ultimate appointment of  Benjamin Netanyahu.

Hyatt Presidente San Salvador

Hyatt Presidente San Salvador

A most difficult time for the Salvadoreans during a period of strife and killings. Not an ideal climate in which to open a hotel that by contract had to be opened within 60 days of signing the management contract. This was accomplished under chaotic but most enjoyable circumstances, due largely to the team spirit. It had previously been constructed in 100 days by order of the president in order to accommodate an important financial conference.............which ultimately went elsewhere due to the political troubles.

A complex ownership structure existed that saw a 12 or 13 member military Junta or Board supervising the management. Loved the country, loved the people and the British school was great.

China Built but Incomplete in Chongqing

JIXING TORCH HOTEL CHONGQING - FORTY FIVE STORIES BUILT BUT CLOSED

Background.

This majestic 45 storey hotel, apartment complex and retail centre had been built in the new Technological Area of Chongqing, a major metropolis of 30 million inhabitants that had just been deemed as a Special Area by the State giving it the same recognition as a Province.

In 1996, the new owners were looking for a North American group to advise, brand and operate the hotel. The city of Chongqing is the sister city to Toronto, Canada.

The Decision.

The owners are referred to David McMillan who had gained credibility in the Chinese community for his heavy involvement in the opening and launch of the 250 room Montreal Hotel owned by the Chinese State Government........it's only investment of this type in the world at that time. A contract was executed for Pre-Opening Technical Services.

The Outcome.

The site is reviewed in depth and a plan is built involving,

1. Competitive review.
2. Selecting an appropriate brand.
3. Revising the floor plans to meet brand needs and standards.
4. Creating a pre-opening budget & business plan for Year One
5. Defining the FF & E needs.
6. Defining the pre-opening staffing & training needs.
7. Appointing a local (Hongkong) director to represent McMillan.

Ultimately the owners decided that they did not need an International brand and that they would create their own brand.

The hotel is now operated as a JW Marriott.

Hyatt Regency Riyadh

Hyatt Regency Riyadh, Saudi Arabia

The 400 room Hyatt Regency opened without great fanfare in what was then the fastest growing city in the world. As a part of REDEC Centre, the hotel sat on top of a retail pod alongside an Atrium lobby opposite which an apartment tower was developed . Staffed by 27 nationalities drawn from all parts of the world, the hotel enjoyed the pleasure of only one Saudi who handled 'public relations'.

Opening during a highly conservative period in the life of Riyadh and before the diplomatic community moved there, life was considered by most to be tough for expatriats at that time. Most of our team at that time disagreed with that opinion.

The creative management team had a great deal of fun creating innovative 'touches' that were subsequently copied in other areas of the world and in other hotel groups.

Four Seasons Calgary

The First 'Purpose Built' Four Seasons Hotel in the world. 

Opened in conjunction with the Calgary Convention Centre and the Glenbow Museum, the property soon became known for its excellent cuisine and "the finest wine cellar west of New York City". A favourite of Mayor Ed Sykes, the hotel was financed by three levels of government and was a political football in its early years due to the poor performance of the city funded and city marketed Convention Centre.

The hotel pioneered French Service in the Convention Centre which it services and was an excellent design example in which all three components in the building shared services and facilities for mutual economic benefit.

The area in which the hotel was built was not the best part of town in the early years but has since been built up and improved. This challenged the management team to levels of service that personified the Four Seasons image of the future. No small wonder that David McMillan's successor became the President of Four Seasons!!

Chengdu China Repositioning

DATED CITY CENTRE HOTEL NEEDS SOME CAPITALIST TOUCHES

At the crossroads of this capital city of Sechyan (13 million inhabitants), the 500 room Hotel Chengdu had seen better days. It not only needed a complete reno from front to back, it needed to be rejuvenated from the staff up to the management and from the sidewalk to the receiving dock. It did however have enormous potential.

Expansion opportunities also existed on the land to its side and a plan was demanded from David McMillan's Venezia Hospitality and its team.

OUTCOME

The development plan was prepared which included,

1. A competitive review and market positioning 'estimate'.
2. A total renovation estimate.
3. An architectural expansion plan with rough costs.
4. A brand analysis & recommendation.
5. Five year projections.
6. Year One Business Plan

The potential investors decided not to purchase the hotel in spite of the excellent potential and its superb location.

Today, the hotel has been renovated and this is how their operators, Jinjiang describe it,

The centrally-located Sichuan Jinjiang Hotel, with its reputation as a garden-like hotel, totals an area of over 50,000 square meter and 40 percent of which are covered with greenery. The 511-room hotel also boasts suites of distinct styles and the luxurious and elegant Presidential Suite, upscale restaurants, 20 plus bars, the European Garden Avenue a large banquet center with Panoramic views, 10 convention rooms of different specs and patterns, ranging from 38 to 600 square meter, and a full range of comprehensive service facilities, hence nice venues tastefully
laid out for business and pleasure. After a major renovation in 2002, the hotel s facilities and amenities are all the more inclusive of the ingenuity of science and technology of a new century. As the first ever 5-star business and tourist hotel in China s southwest, it has on many occasions been honored as Best Star-rated Hotel of China and one of the 10 Top Hotel of China

Holiday Inn Toronto Downtown

Largest Holiday Inn in the World - Toronto, Canada

The opening of the largest Holiday Inn in the World and Toronto's first revolving restaurant next to the spectacular Toronto City Hall was easy. We hired, we trained, we opened the reservation system and filled it up. It was an event that even attracted Holiday Inn's Founder, Kemmons Wilson, who did not want any of the fancy food but preferred a smoked meat sandwich, which I personally made for him.

A better management team was hard to find anywhere most of whom have stayed in touch over the years.

Kuala Lumpur Hotel Development

MALAYSIAN GROWTH CREATES UNPARALELLED DEMAND

Background

The extraordinary growth in Malaysia was fuelling incredible expansion of the hotel products in Kuala Lumpur in the mid 90s. Venezia Hospitality was contracted to assist the developers to determine the feasibility and choose a brand for e 'new build'  four star property in Shah Alam.

Shah Alam, Selangor's state capital, is a modern township surrounded at its periphery by Kuala Lumpur, Petaling Jaya, and five other major townships including Klang, Bangi, and Kajang. It enjoys a vantage location being ideally located halfway between the national capital, KL, and the viable Port Klang.

Hailed as one of the most well-planned cities, Shah Alam has most of its residential area on one side of the Federal Highway and industrial zones on the other. Hence, Shah Alam has been constructed according to a blueprint drawn up with the environment at the forethought of the planners. It has become a showpiece city of the future, free from the inherent problems of haphazard development and shanty towns found in other major growth centers.

Dominating the entire state capital, this is truly one of the finest mosques to be found anywhere in the world. Completed in 1988, its minarets, at 142.3 meters, are the tallest in the world. Its graceful blue dome is also one of the biggest of its kind. Decorative Islamic calligraphy enhances the dome and main prayer hall, while the overall architecture integrates Malay and Moorish design elements. The mosque's pulpit has been executed in carved timber, a masterpiece of local craftsmen from the state of Kelantan.

David McMillan together with his partner Ted Theobald, one of Asia's better known hoteliers, set about the analysis necessary for this client and their Malaysian advisors, WHS Resources Sdn Bhd. The scope of work included,

1. Review of the competition in the market area.
2. Review of the architectural plans.
3. A review of the brand alternatives.
4. Selection of the most appropriate brand and negotiations.
5. The development of Financial Projections (10 Years) based on current conditions.
6. Creation of a full report of the findings for the developers.

Outcome.

The property was delayed sufficiently due to the devaluation of the Malaysian Ringit and the collapse of the market in SE Asia. We were able to acquire the Master Franchise for the Malaysian Advisors for the brand selected.

TORONTO RE-DEVELOPMENT

PARK PLAZA TORONTO RE-POSITIONING

On the market with no interested buyers, Axis Hospitality's David McMillan decided in the mid 90s that the location was too good to miss and all that was needed was a creative rearrangement of the public space, their oversize balconied North Tower and a clearer more dramatic sense of arrival and positioning with a strong upscale brand.

Fully knowledgeable of the prestigious area and massive potential, there were only a few brand opportunities open.

The work started and it included,

1. Identification of an architect prepared to work 'pro-bono'.
2. Preparation of a Strategic Plan.
3. Preparation & costing of a re-development plan.
4. Preparation of financial projections (5 Years).
5. Determination of a purchase price.
6. Identification of suitable investors.

The investors were found, the purchase was made and the plan was executed.

Today the Park Hyatt Toronto is described as follows,

"Immerse yourself in one of the world's most multicultural cities, as a distinguished guest of Park Hyatt Toronto. Perfectly situated in the heart of the fashionable Yorkville area – encircled by high-end retail stores and five-star restaurants – our downtown Toronto hotel accommodations represent an elite level of luxury, marked by subtle contemporary influence. Enjoy a host of complimentary services within this renowned downtown Toronto Ontario hotel – from car service to high-speed Internet. Rejuvenate your spirit inside our premier spa and salon, Stillwater. Experience the fine art of dining with bistro-style cuisine in Annona or breathtaking views from Roof Lounge. Treat yourself to the most honored and privileged hotel in downtown Toronto, Ontario."

Cuban Resort Opening

CAYO COCO'S EL SENADOR OPENING

Background.

The completion of the 700 room El Senador in Cayo Coco was delayed. There was pressure from the co-owners to open the property before the hotel had been completed and there was much work to be done.

Venezia Hospitality was contracted to assist the co-owners to coordinate the opening and marketing of the hotel in the 6-12 weeks prior to its launch. This included,

1. An in-depth review of the status of the management team.
2. A review of the status of the supplies and equipment.
3. The creation of a sales and marketing plan.
4. The creation of an updated realistic Budget for Year One.

The Canadian managed El Senador offers two hotels in one. Set in a beautiful garden setting, full of Cuban charm and excellent service will be sure to please your needs. The 'Emperador' section features spacious Junior Suites, while 'La Laguna' offers hotel rooms and Villa Rooms with a separate living area, which are built on stilts over a spectacular seawater lagoon and linked by floating walk-ways.

Venezia was subsequently asked to conduct an Investors' Strategic Review of the operation of the property on behalf of the Canadian partners. This in view of the fact that the investment was not reaching the expectations of the Feasibility Study.

This Review included,

1. A Review of the Operating Results.
2. Development of Key Opportunities.
3. A Management 'performance review'.
4. The development of Three Potential Exit Strategies.
5. The development of a professional Business Plan.
6. The development of a European Strategy.

Outcome

The property's results increased significantly in spite of some Cuban interference in the basic cost infrastructure. A clear alternative was identified to assume management of this property. The Canadian co-owners sold their share and exited.

Hotel Santo Domingo

Oscar de la Renta's Hotel Santo Domingo

Opened in 1976, this 250 room, city-centre hotel quickly became the diplomatic choice for all events and the centre for all major social occasions. Linked by ownership to Casa de Campo, the Hotel Hispaniola  and La Romana, this small group created tourism in a country that was in its infancy at that time.

As headquarters to the Miss Universe Pageant in 1977, the hotel enhanced its image as the hot place to see and be seen.

TREMBLANT'S VILLA BELLEVUE

MONT TREMBLANT'S VILLA BELLEVUE TO BE RE-POSITIONED

Background

The Villa Bellevue was dated and tired and in spite of being one of the the only lake properties in this exploding tourist region, was now seriously out of the picture and needed upgrading. The owner was well known in the area and was committed to a serious upgrade. Axis Hospitality was contracted to assist the owner to formulate a plan. The scope of work included,

1. A review of the property and the competition.
2. The development of a design concept that would incorporate a hotel brand and an acceptable restaurant brand.
3. The development of Financial Projections for the various options.
4. The creation of a Development Plan that would assist in the sale of the property.

Outcome

The property was sold and the plan was executed. The public area log cabin is the largest log cabin in Canada and the lakefront facility is a popular alternative destination to Whistler Village.

India's JP Hotels Strategic Review

FOUR INDIAN HOTELS UNDER REVIEW BY VENEZIA HOSPITALITY

Background

A strategic review of 4 properties was required with a view to being purchased by a subsidiary company of the Sultan of Brunei. Two hotel in New Delhi, one in Mussourie and the other under construction in Agra were all visited and reviewed in detail with a view to establishing a purchase price, re-juvenating, re-positioning and adding value.

The review was carried out in 1998/99 and the report presented to the client on the following properties.

The JP Vasant Continental is an international city-centre property that is well-located in New Delhi and which caters to the business traveller .

They descibe themselves today as follows, "An ode to the cosmopolitan culture of Delhi - the Jaypee Vasant Continental unfolds the finest lifestyle experiences for you. An exquisite blend of business and pleasure, it's the perfect place to confer, relax or pamper your senses. Jaypee Vasant Continental, located in the upmarket Vasant Vihar area, strategically close to the Airports and within a 5 km. radius of the Diplomatic Enclave."

The Ashok New Delhi is a hotel that catered to the local business traffic and is located in a busy section of the city.

Described today as follows, "Set in a prime location of Delhi's Diplomatic Enclave, the Ashok is familiar and distinctive landmark, its rose-pink walls and arched and turretted contours setting it apart from the glass and concrete conformity of other hotels. The Ashok Delhi is a profusion of the finest international cuisines. Hotel is also renowned for hosting national and international conventions and conferences.

  The JP Residency Hotel is a magnificent and spacious resort located high up in the gorgeous Hill Station of Mussoorie. Modestly decsribed below, this property has enormous public spaces and spectacular views.

Centrally located, the J.p`s Residency Hotel is  only 45 km  away from the airport and just 3 km away from the city center of Mussoorie. For guests' satisfaction, all of the hotel's 89 guestrooms feature contemporary in-room amenities. Each guestroom has hair dryer and air conditioning. The hotel's guests can also unwind with a variety of recreational activities such as tennis courts and indoor pool. With an extensive list of facilities coupled with good services, this is one of the most recommended accommodations in Mussoorie.

The JP Agra was built overlooking the spectaculour Taj Mahal and this well proportioned convention property is well built, well finished.

Hotel Jaypee Palace is spread over 25 acres of landscaped gardens, in an unbeatable location, near the Taj Mahal. Hotel offers a subtle blend of Mughal architectural brilliance and modern amenities having tree lined sidewalks and dancing fountains. Hotel offers excellent business amenities that range from hosting large conferences for the new world leaders to small meetings.

It was David McMillan's conclusion that these properties would have been a good strategic purchase at the right price and would have required some re-development work in order to add value. A description of the work necessary and the approximate costs were a part of the work that was done for this client.

CUBAN TIMESHARE!

CUBAN CANADIAN RESORTS LAUNCHED

An agreement was reached and a Joint Venture formed for the development and construction of four multi-purpose luxury resorts in Cuba that were to be constructed in Havana (Santa Maria), Santa Lucia, Varadero and Cayo Coco.

Venezia Hospitality was contracted to provide management services to this US$250 million series of projects and David McMillan was appointed as President of the Cuban Joint Venture.

The scope of work included initial contract negotiations, recruitment of a team including architect, engineers, construction company and the development of a construction budget for Phase One.

In addition, a team was assembled for the development of the timeshare infrastructure for which much complicated work was necessary to permit it to function in a North American context with the US Embargo in place.

The financing of Phase One was assembled which included equity and debt financing.

News Release Thursday 8 October 1998, 18:09 GMT

Thursday 8 October 1998 TRAVEL Cuban Canadian Resorts International

CANADIAN/CUBAN COMPANY FIRST TO OFFER VACATIONERS BEACHFRONT TIMESHARE AND CONDOMINIUM UNITS IN CUBA

Toronto, Canada, - For the first time ever, vacationers can now purchase beachfront timeshare and condominium units in Cuba.

Cuban Club Resorts, a joint venture between Cuban Canadian Resorts International, a Canadian-based real estate and development company, and Gran Caribe Hotel Corporation, one of Cuba's largest hotel and tourist companies, will be developing four- and five-star vacation properties in prime beachfront locations in Cuba.

"We are very proud that a Canadian company is the first in the world to launch the timeshare and beachfront condominium industry in Cuba," said David McMillan, President, Cuban Club Resorts, at a news conference held today in Toronto. "We share the same determination as our partners Gran Caribe in ensuring that this new industry is built properly in Cuba."

Cuban Club Resorts plans to build luxury resorts with more than 2,000 units in Santa Maria, Santa Lucia, Varadero, Cayo Coco, and other beach locations over the next 10 years. They will include a mix of timeshare, condominium, and hotel and resort facilities. The cost to build these resorts will be approximately US dlrs 250 million, representing one of the largest business transactions to be completed in Cuba.

Development of Phase One will begin in March 1999, with the construction of 354 units in Santa Maria del Mar, located 18 kilometres east of Havana, and the development of 260 units in Santa Lucia. Prices for timeshare units are expected to start from US dlrs 5,000 for a one-week interval, while condominiums are expected to start at about US dlrs 200,000.

The joint venture was approved in Cuba by the Executive Committee of the Council of Ministers and signed by Prime Minister Carlos Lage on August 25, 1998 in conjunction with the Minister of Tourism, the Minister of Finance, and the Minister of Foreign Investments.

All Cuban Club Resorts properties will be developed to international construction and safety standards. The joint venture agreement has adopted the American Resort Development Association's (ARDA) Code of Ethics, an international standard of conduct for the timeshare industry.

"Cuba is enjoying a phenomenal growth in its tourism industry," said Eduardo de la Vega, Vice Minister of Tourism for Cuba. "By fostering a joint venture such as this, it opens up new market opportunities for Cuba."

Tourism in Cuba is booming. Tourist arrivals have increased from less than 350,000 in 1990 to more than 1.2 million in 1997. In the first eight months of 1998, there were more than 900,000 foreign visitors to Cuba. Cuban tourism officials anticipate two million tourists by 2000, and seven million by 2010. Canada is the largest source of these visitors, followed by Italy, Germany, Spain, and France.

Travel to Cuba is also growing faster than any other Caribbean destination at an average annual rate of 19.3 per cent between 1990 and 1997. This compares to 4.3 per cent for the Caribbean. Tourism has become the major source of foreign currency for the island, generating an estimated US dlrs 1.5 billion in 1997, six times more than in 1990.

"We applaud Cuban Club Resorts and Gran Caribe for their success in working out this agreement," said Gerald Milot, Senior Trade Commissioner, International Trade Centre, Industry Canada. "We are proud that it is a Canadian company that has introduced this concept to Cuba and we believe it will be mutually rewarding for both countries. This is yet another acknowledgement of the excellent relations Canada enjoys with Cuba."

More Canadians visit Cuba than any other Caribbean destination. In 1997, about 170,000 Canadians visited Cuba, as compared to 153,000 for the Dominican Republic, 100,000 for Jamaica, and 91,000 for the Bahamas.

"This is our country's first joint venture of this kind," said Alejandro Escobar, President, Gran Caribe and Vice President, Cuban Club Resorts. "While it is a new concept to us, we see the tremendous potential growth it offers."

Vacation ownership is the fastest-growing sector of the travel and tourism industry. From 1990 to 1995, vacation ownership sales increased by 10 per cent worldwide. There are currently more than 4,700 vacation ownership resorts and 3.8 million vacation club owners worldwide. Cuban Club Resorts will market its properties worldwide, with particular emphasis in Canada and Europe. Arcadia Design Architects of Huelva, Spain, specialists in luxury resort developments worldwide, including Grand Hyatt and Hyatt Regency resorts in Spain, Fiji, Costa Rica, Egypt, Indonesia, and Mexico, has been retained as the design architect.

Arcadia Design will be working on this project with a Cuban group of architects and engineers. Cuban Canadian Resorts International is a real estate and development company formed by a group of Canadian entrepreneurs in 1994. The company's primary business involves developing commercial properties with a focus on the creation of luxury resort properties in Cuba that cater to the baby boom generation. Gran Caribe Hotel Group Corporation has more than 35 luxury hotel and tourism-oriented properties situated throughout Cuba, including the famous Hotel Nacional de Cuba, and the world-renowned Tropicana nightclub and cabaret.

In 1997, Gran Caribe hosted almost 450,000 visitors to Cuba, representing a 40 per cent market share. The Gran Caribe chain consists of four- and five-star hotels located in major cities such as Havana, Santiago de Cuba, Varadero, Cayo Coco, Cayo Guillermo, and Cayo Largo.

Distributed by PR Newswire on behalf of Cuban Canadian Resorts International

ST KITTS NEW DEVELOPMENT

BANANA BAY AS SITE FOR A 200 ROOM WESTIN RESORT & CASINO

Background.

Invited to participate in the pre-opening development and potential management of a new resort at Banana Bay, Venezia Hospitality's David McMillan joined the team and set to work on the land option, the concessions, the concept, the design and the financing of this 200 room resort, casino and culinary centre in this idyllic part of St Kitts.

Status

The work consisted initially of building a team to include partners in the areas of construction and financing. Discussions with potential franchisors to allow Venezia Hospitality as the 'manager' proceeded with three high-end chains interested in the project. Negotiations with the Government for special considerations for a Casino license, expatriot work permits, services to this remote part of the island etc. Investigation of the potential for the property to become a Culinary Centre for Caribbean cuisine and with ingredients grown in St Kitts hydroponically.

The pre-opening plan, 10 year projections, construction costs, FF & E Budgets, management contract and franchise agreement were all put in place and an investor and debt financing was secured.

The investor however postponed the launch of the project when the devaluation of his currency was implemented.

Toronto's Constellation Hotel

AXIS HOSPITALITY TAKES OVER FOR NEW OWNERS

Toronto's 800 room Constellation Hotel was purchased from Regal Hotels and Axis Hospitality was chosen to execute the takeover and assume operation of this convention property close to the Lester B. Pearson International Airport.

David McMillan led the takeover and managed the property during the planning stages of the re-development. This included the assumption of inventories of supplies and equipment, management and staff supervision, establishment of new accounting books and records, relations with the sellers, coordination of future conventions and group bookings, management of multiple partners, coordination of new tenants, participation of coordinating potential new brands, coordinating architect and interior designers.

The project was delayed and the hotel has since been closed.