ON THE SOAPBOX: Jean-Claude Baumgarten, President and CEO, World Travel & Tourism Council

Jean-Claude Baumgarten (67) could be considered an Air France veteran but between spells with that airline he has been involved in a number of industries including mutual funds and insurance.  His last tenure with Air France started in September 1993 as Vice-President for the Americas and Asia.  In February 1996 he became Executive Vice-President of Corporate, International & Industry Affairs.  From December 1997 until July 1998, prior to leaving the airline, he held the position of Advisor to the Chairman.  In October 1999 he was appointed President and CEO of the World Travel & Tourism Council.

I clearly remember starting life at the World Travel & Tourism Council (WTTC) ten years ago.

Since then technological change and advances in transport and communication have made the world more accessible to more people.

Higher incomes and increased leisure time in industrialised countries contribute to growing tourism demand.  As countries develop, the aspiration to travel increases among its residents.  China and Eastern Europe are examples of the improvements in freedom of movement not achievable even ten years ago.

One thing that remains unchanged however is my dedication to promoting the message of WTTC’s mission: the importance of Travel & Tourism, one of the largest industries in the world. 

Regrettably, this message is yet to come across fully.  While the Chinese and Brazilian governments and the European Commission have recognised that Travel & Tourism is one of the key pillars to economic growth, the UK and other individual countries have a long way to go to realise the magnitude of this industry that creates 235 million jobs and accounts for 9.2% of the GDP globally.

At our Global Travel & Tourism Summit in Beijing leaders of the industry in particular identified airport security measures, ineffective air traffic control and airline routes, restrictions on airport expansion, unfair taxation such as Air Passenger Duty, visa policies and prohibitive legislation as barriers to tourism.

The ash cloud crisis was also handled badly by governments.  While they were initially right to take precautionary measures, restrictions were undertaken without proper consultation with those most affected.  Tourism is now being hit with a double whammy: the loss of business as planes were grounded and now the cost of reimbursing passengers.

In light of such events WTTC plays a crucial role in advising governments of the benefits Travel & Tourism brings to their country; jobs, wealth, environmental sustainability and social development.  The industry has a comparative advantage in that its start-up and running costs can be relatively low compared with many other forms of industry development.  It is also often one of the few realistic options for development in many regions.

Unfortunately, the UK is not alone in creating barriers to tourism growth.  Germany is to impose an air travel tax of up to US$1.3bn a year from January; the Maldives Government is considering the same.  While the recent tourism speech by UK Prime Minister, David Cameron, is a good step forward, it is far past time given the £115bn profits Travel & Tourism contributes to the UK economy.

Often the barriers facing the tourism industry are related to insufficient clarity, and poorly thought policies over regulation imposed by governments.  This is why we believe the private sector needs to be consulted on to help manage the future growth of the industry so as to minimise its impacts on the environment and host communities whilst maximising the benefits it brings in terms of jobs, wealth and support for local culture, and protection of the built and natural environment.

We are already doing great work.  Our recently launched Best Practice Gateway, is one example featuring advice and data on good practice across the industry, helping other businesses and destinations in their sustainable practice. 

Therefore, we call on all governments and the European Commission to re-examine their policies towards the industry.  To achieve the goals and challenges set for the Travel & Tourism industry as it continues to grow requires a strong partnership between governments, national tourism authorities, trade unions and the private sector.  All stakeholders now need to share the responsibility for Travel & Tourism’s future.

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Beijing hotel

SHANGRI-LA HOTELS AND RESORTS has confirmed the opening of China World Summit Wing Hotel Beijing, located on the top floors of the capital’s latest landmark, the China World Tower.  With unrivalled views this is the hotel group’s sixth property in the city and it soars to just over 1,000 feet (330m) in the heart of the Central Business District.  China World Summit Wing Beijing features 278 guest rooms including 29 suites on levels 64 to 77.  From level 79 upward, including an observation deck on level 81, China World Summit Wing Beijing features the city’s highest dining and entertainment venues.  The hotel offers a lifestyle sanctuary with a 24-hour gymnasium and an indoor infinity swimming pool on level 78, as well as CHI, Shangri-La’s signature spa brand and Beijing’s highest spa retreat.  The third floor houses the Summit Ballroom, the largest pillar-free ballroom in a deluxe hotel in Beijing.  Additional facilities include a rooftop Pine Garden and a 95-seat auditorium. www.shangri-la.com

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British Airways 777 incident

BRITISH AIRWAYS had a narrow escape from what would have been a potential disaster at St Kitts in the Caribbean on 26 September last year, according to a report published by the UK Air Accident Investigation Board (AAIB).  A Boeing 777 took off from the wrong runway after the flight deck crew mistook the holding point/intersection, reducing the take-off by 695m to just 1220m, little more than London City Airport.  BA local ground staff on board, two of just 89 passengers, did notice the problem but the aircraft was already on the roll by then.  The aircraft took off safely.  Blame has been contributed to both the operating crew and the airport authority, a trainee handling the aircraft movement. www.aaib.gov.uk

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Continental and United

US JUSTICE DEPARTMENT officials have approved the proposed merger between Continental Airlines and United Airlines, creating the world’s largest air carrier.  The company will be headquartered at United's Chicago offices.  Continental boss Jeff Smisek will become Chief Executive while United's Glenn Tilton takes on a non-executive Chairman’s role.  A provision of the merger is that both airlines will have to relinquish slots at Newark New York to budget carrier Southwest Airlines.  Both airlines are members of Star Alliance and are already working towards effecting the merger.  In the UK, Continental is currently based at Horley near Gatwick, while United’s headquarters are on the Southern Perimeter Road at Heathrow.  Continental’s operational focus is New York whilst United offers both Chicago and Los Angeles. www.continental.com www.united.com

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Four Seasons Park Lane gets ready

PARK LANE LONDON will return to something like normal in terms of hotels next February when the 5-star Four Seasons re-opens after a complete four-year re-build.  Once called the Inn on the Park, the 192-suite establishment is sited at the Hyde Park Corner end of what is London’s most prestigious hotel neighbourhood located between Hyde Park and Buckingham Palace.  Details released to date indicate that the property will be dazzling in terms of design, service and technology.  Reservations for next year are now being taken. www.fourseasons.com

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London's Crossrail project looks OK

CROSSRAIL, the mammoth project to build a new largely London underground rail link from west to east via the West End and City, is set to survive the wave of government spending cuts according to reliable reports.  Other projects, including the Thameslink, north to South, considered by some to be just as important, could be axed although work has already started at Blackfriars, Farringdon and London Bridge stations.  Transport Minister Philip Hammond is expected to make an announcement in October. www.dft.gov.uk/pgr/rail/pi/crossrail

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OnAir in-flight mobile and internet service to Egypt

EGYPTAIR has used the opportunity of the delivery of an Airbus A330-300 on its Cairo – London route to introduce the OnAir phone/internet service, becoming only the second Heathrow airline to feature the facility.  Oman Air has successfully offered the facility since the beginning of the year with a number of other carriers expected to follow suit shortly, including Arabian Airlines, Emirates, HK Airline, Libyan Arab and Saudi.  A further aircraft is scheduled to be equipped in “coming months”. www.egyptair.com, www.onair.aero

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ON TOUR: Saigon (or officially Ho Chi Minh City)

What does Ho Chi Minh City mean to you?  Do not be muddled up with Hanoi, 1,000 miles to the north and the capital of the People's Republic of Vietnam, a Communist state.

Ho Chi Minh City is of course the current name for Saigon.  Saigon is a westernised version of a traditional Vietnamese rendition and is still the title of the river that runs through the city.  And it is what the locals call it too!

Vietnam is the easternmost country on the Indochina Peninsula in Southeast Asia.  It is bordered by the People's Republic of China (PRC) to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east. 

Independent of China, Vietnam was colonized by the French in the mid-19th century.  They stayed for 100 years before being unceremoniously booted out leaving a nation divided politically into two countries.  Fighting between the sides continued during the murderous Vietnam War, ending with a North Vietnamese victory in 1975 and defeat for the South and their US allies.

In 1986, the Communist Government instituted economic and political reforms and began a path towards international reintegration.  Its economic growth has been among the highest in the world in the past decade.  These efforts have resulted in Vietnam joining the World Trade Organization in 2007.  What is amazing is to visit Saigon today and find little or no resentment to the Americans, and many leftovers from the French occupation.  The Vietnamese are a happy and hard working people very quickly catching up with the 21st century.

Cruise ships call at Phu My about 50 miles from Saigon and if you are on a shuttle bus it is likely you will be dropped off at the Rex Hotel, made famous during the Vietnam War when its conference room hosted a daily press briefing derisively named The Five O'Clock Follies by cynical journalists who found the optimism of leading US military officers to be misguided.  Its rooftop bar was a well known hangout spot for military officials and war correspondents and it is still a good place to view the city and have a drink.  The bar area even has two swimming pools adjacent.

Vietnam Airlines is a thoroughly modern carrier with a 70 aircraft fleet including Airbus A330 and Boeing 777s for international services.  The domestic services are flown on Airbus 320 series with a high quality on-board service.  The city airport dates from the 1930s, is within 15 minutes of the city centre, but is due to be replaced by a new facility currently under construction.

Ho Chi Minh’s history goes back to the mid-1600s, when it was a fishing village under Cambodian Khmer control.  Its strategic location on the Mekong River Delta quickly made it an important trading centre.  The French occupied the city in 1859, hoping to exploit commercial opportunities all the way to the Mekong’s headwaters.

The heart of Ho Chi Minh City is a truly fascinating and bustling place to explore.  As Vietnam’s most cosmopolitan centre it has a racially mixed population and a myriad of national monuments, including many colonial structures such as the Notre Dame Cathedral completed in 1876, the French Colonial Post Office and the aforementioned Rex Hotel.

The colonial part of town is home to the Museum of History, housing crafts and other local items displayed in chronological order.  Another landmark, the Reunification Palace, is an historical structure that was formerly the Presidential Palace of the Republic of South Vietnam.  The significance of this monument is as a symbol of the ending of the war.  The grounds here are very beautiful, and the building today is still used for state occasions.  Visits can be made but do check the opening times.

The district of Cholon dates back to the 18th century.  A bustling part of town with crowded streets, the name Cholon literally means 'Great Market', as evident by its bustling marketplaces.  In the centre is the Palace of Seven Congregations, dedicated to the Empress of Heaven and the Military Palace of the Seven Congregations, where the General Chinese Association is held.

There are numerous places of worship of almost every denomination.  The city’s Chatham Church is where Vietnam’s President Diem was assassinated in 1963. 

If you visit Ho Chi Minh City hire a trike rickshaw.  You will have to negotiate the rate for one hour but it is great fun.  Offer the hard working pedal pusher a little more to go faster.  You can be certain you will somehow stop at a local ‘factory’ selling ceramics, artwork and footwear, much of dubious origin with well known labels. 

Vietnam is slightly smaller than Germany, but has a population of 86m as against 82m.  Intel, the computer chip manufacturer has just built an enormous factory costing US$1bn.  It is not a backward country, and is part of the tiger economies of South East Asia. 

A trip to Ho Chi Minh City is a real eye-opener.

Don’t expect much help from the Vietnamese Tourist Board.  Even the London Embassy could not get any sense out of them.  They might even have marketing/PR representation in the UK but if so these people have not shown themselves to AERBT or its Editor.  Perhaps this might change at WTM.  It is certainly a country worth visiting.

Malcolm Ginsberg

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