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PD LANDS SHARE OF $125M CDC
ACCOUNT
The
Centers for Disease Control and Prevention has awarded its
$125 million National Youth Media Campaign to Publicis Dialog
and sister agencies Saatchi & Saatchi and Frankel.
The campaign's goal is to promote healthy lifestyle among
"tweens" (kids between nine and 13).
Via PR, advertising, promotion and grassroots activities,
the campaign will stress the importance of exercise to children
and their influencers-parents, teens, coaches and others.
Rose Ann Anschuetz, in PD's Chicago office, will handle
the PR portion of the account, according to Andy Hopson,
president of Publicis Dialog in the U.S.
"She is a trained child psychologist, and managed a
number of youth marketing campaigns," he said. "She
will do a wonderful job."
The win, according to Publicis Groupe CEO Maurice Levy,
validates his "holistic marketing" approach, which
uses various communications tools to reach consumers.
SACHS SUCCEEDS HOOG AT H&K
London-based MaryLee Sachs, 42, succeeds Tom Hoog as president
of Hill and Knowlton USA on Jan. 1 after an "exhaustive
search," according to CEO Howard Paster.
The 15-year H&K veteran has been in charge of worldwide
marketing communications. She'll be returning to her native
U.S.
Hoog, who announced his resignation plans earlier this
year, will become a non-executive chair, and work part-time
on a number of projects. The chief of staff to former Senator
Gary Hart ran Hoog and Assocs., a political consulting firm,
before joining H&K in 1993.
Paster also promoted Gene Reineke, executive managing
director of the firm's central region, to the new post of
USA COO. The 45-year-old executive was chief of staff to
former Illinois Governor Jim Edgar. He specializes in crisis
management, economic development, government relations and
regulatory affairs.
Reineke will remain GM of H&K/Chicago.
Chris Dobens,
chief cultural officer at Magnet Comms. stepped down from
his post last Friday after a dozen years in the marketing
communications business. He says he has no plans and no
plans to make any plans at this point. Rob Coburn succeeds
him.
WRIGLEY NAMES GOLIN/HARRIS
The Wm. Wrigley Jr. Co., leading marketer of chewing gum
and related products and which is moving into healthcare
and mint products, named Golin/ Harris International as
its first corporate PR firm.
Co-finalist was Edelman PR Worldwide. The announcement
was made Sept. 26 by Christopher Perille, senior director
of corporate communications at Wrigley. The co-finalists
were informed of the decision Sept. 24.
The final group of four contenders included BSMG Worldwide
and Ogilvy PR Worldwide.
Bill Wrigley, 35, became CEO of the company in 1999 following
the death of his father.
The company gets praise from analysts for its large market
share in the chewing gum category, its return on investment,
and having no debt.
Wrigley advertises heavily and keeps public comment to
a minimum. Bill Wrigley's only interview since becoming
CEO has been with Forbes.
GCI SHUTTERS YEAR-OLD BOULDER
OFFICE
GCI Group has closed its eight-member Boulder (Col.) high-tech
office because it believes the "weak economy shows
no short-term signs of improving."
CEO Bob Feldman said clients that were handled from the
one-year-old Boulder office (Storagetek and netLibrary)
will be serviced from San Francisco. Boulder resident Diane
Gleason, who heads GCI's technology practice, will continue
in the post.
Kamer, Kafafian
depart
Larry Kamer who joined GCI in 1999 when he sold his high-tech/PA
firm, Kamer-Singer & Assocs., to GCI, has decided to
leave. Kamer had been handling PA duties. His former partner,
Sam Singer, left GCI last year.
Lori Kafafian, who joined GCI 16 months ago from Ketchum,
is also exiting. She was head of worldwide human resources.
Feldman calls Kafafian's departure especially tough for
him because he personally recruited her.
DOW CORNING'S CARMICHAEL
TO VISA
Barbara (Barie) Carmichael, 53, VP/chief communications
officer for Dow Corning, has joined Visa U.S.A. as executive
VP of corporate relations.
She will handle all corporate communications, media relations,
PR and PA duties. Carmichael also will sit on Visa's executive
management committee and report to Carl Pascarella, president
and CEO.
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PR BILLINGS COULD SINK 10%,
SAYS BERGEN
The World Trade Center
disaster dealt a major blow to New York City's $792 million
PR industry, which had already been reeling thanks to a
sinking economy, according to Jack Bergen, president of
the Council of PR Firms.
"It's like a freight
train hitting a brick wall," Bergen told The New
York Times, which noted that last year was the greatest
ever for "flackery, hoopla and hyperbole."
The Council reported
that PR chalked up $4.2 billion in estimated billings nationally,
the highest ever-and in New York City, the industry grew
24% in 2000. Bergen also told The Wall Street Journal
that "clients are apprehensive," and that there
is "no precedent for what we're engaging in right now."
Bergen worries that industry
revenues could be down five to 10% for this year.
Since Sept. 11, reporters
and news producers "haven't been interested in writing
stories that have nothing to do with the crisis," Bergen
told the Times.
In New York, Bergen said
many PR people "are having a difficult time focusing
on their work, because they've seen a tragedy in which their
friends have been killed, and many have been pulled out
of buildings during bomb scares."
Bergen has advised PR
firms to instruct companies "how to express to their
community how they feel about this," he said in the
Times. "We suggest that they can donate to appropriate
charities, and take out newspaper and magazine ads,"
said Bergen.
Bergen Faced
Three Pitches
Bergen told this NL that
he is "personally frustrated" that he did not
convey the point of "PR's importance during a time
of crisis."
Both papers approached
him with three angles: examples of pitching mistakes made
by PR pros following the attacks; the comments by some PR
people who feel their work is now irrelevant or trivial,
and how the industry is suffering due to the rough economy
and the attacks.
He applauded Howard Rubenstein,
who was quoted in the Times piece. He told reporter
Glenn Collins that he assembled his 200 staffers following
the attacks to tell them "that they are more relevant
today than ever."
Bergen said the Council's board held a session to discuss
how they can build morale among staffers and what they can
do to "jump-start" their businesses.
Bergen feels the time
is ripe to resume contact with the five key audiences of
PR, which he lists as customers, employees, investors, communities
and governments.
PRSA STICKS WITH CONFERENCE
PR Society of America is moving full speed ahead with
its national conference in Atlanta to demonstrate confidence
in the U.S., support the travel industry, and to obtain
wisdom from the top-flight speakers scheduled to appear
from Oct. 27-30, said CEO Kathleen Lewton in a five-page
letter sent to members.
Though PRSA could cancel the event and minimize its financial
risk, to do so would give in to the terrorists, she wrote.
If Americans "do not support the travel industry,
that industry will be in peril."
She wrote: "America from its very beginnings has
been a country of travelers, from the pilgrims who came
to our shores in boats, to the pioneers who made their way
in wagons across the fruited plains to the Rocky Mountains,
to the astronauts who flew through the heavens.
"We have always taken our freedom to travel to the
farthest reaches of this beautiful land as a right."
PR pros, she reminded members, always rise to the occasion
in times of crisis. "We can never step back, we can
never demur, we rarely even have the chance to ask for a
moment to reflect or grieve."
Lewton knows PR counselors appreciate the value of modeling
behavior to help shape public awareness and beliefs. That's
why "we need to step forward and be the models to help
rebuild public confidence in travel, in the economy, in
the U.S. and in life."
Lewton understands that sticking with the conference is
a gesture in a way. "And who knows better than PR people
the significance and the power of a symbolic gesture in
a time of crisis," she wrote.
Makes Pitch
for New York
The PRSA head noted that the World Trade Center attack
dealt a huge blow to New York's tourism business. She enouraged
members to either visit New York or convince others to do
so.
"The city is still here-albeit changed in a way that
we will never forget, but New York in October is the best
time of year," she wrote.
Noting that "The Music Man" has just announced
that it is closing, Lewton warned that others are barely
hanging on, but can't do so for very long.
"If you want NYC to be the New York you remember,
help us keep it alive. Pick up the phone and pitch this
story to local media," she urged.
Local media are "covering the ruins and the tragedy;
we need them now to begin covering the vibrant city that
is still here!"
B-M, KAMBER, OGILVY PITCH
$400K D.C. CTR.
Burson-Marsteller, The Kamber Group and Ogilvy PR Worldwide
are the "big national firms" expected to pitch
the Washington Convention Center PR/ad account, Tony Robinson,
director of PA at the WCC, told this NL.
He said about 40 firms attended the "pre-proposal
conference" on Sept 13. The firms face a Sept. 28 deadline
to submit final proposals for the account, which will bill
in the $400,000 range.
A new convention center will open in March 2003, and will
be the largest building in D.C. with 2.3 million square
ft. of space, enough to fit the Sears Tower inside.
The Convention Authority projects the site will attract
2.5 million visitors a year, and pump more than $1.4 billion
a year into the local economy.
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NYFWA TO HOLD
'FINANCIAL FOLLIES'
The New
York Financial Writers' Assn. will hold its annual lampooning
show, "The Financial Follies," on Nov. 16 as scheduled.
The Board
of Governors voted unanimously at a special meeting on Sept.
24 not to cancel either the show or the formal dinner, which
will be held at the Marriott Marquis Hotel in Times Square.
The board's
vote came after several members had asked that the show
be cancelled out of respect for the victims of the Sept.
11 terrorist attacks. Many of the victims worked for financial
firms, which had offices in the World Trade Center.
The show's
producers have agreed to revise some parts of the script.
A skit, which poked fun at Mayor Giuliani's marital problems,
was dropped.
The annual
event is the association's top revenue producer, with tickets
costing $300 a piece.
Several
PR firms buy entire tables, which sit up to 10 people. Morgen-Walke
Assocs. bought 14 tables to lead all companies at last year's
Follies.
The NYFWA
also disclosed it has a balance of $392,215 in checking
and savings accounts as of Sept. 20, 2001. The group has
345 members.
ONLINE NEWS ASSN. TO MEET
The Online News Assn. will hold its annual conference
and awards banquet on Oct. 26-27 in Berkeley, Calif. The
conference will be held at the Claremont Resort on the Univ.
of California campus. The meeting is open to all interested
parties.
Rich Jaroslovsky of The Wall Street Journal, who
is president of ONA, said during this difficult period when
many conferences are being cancelled or postponed, the ONA
board chose to stay with the original conference dates.
"Now, more than ever, it is important for us to realize
the overwhelming impact on, and value we contribute to the
media landscape every day," Jaroslovsky said. "Members
of the online new community need to come together and reflect
on the tremendous changes in our industry."
Walter Mossberg, personal technology columnist for the
WSJ, will deliver the keynote address at the conference,
which will focus on the Internet as a primary source of
news.
The ONA has more than 700 members, composed of news writers,
producers, designers, editors, and photographers who produce
news for the Internet and other digital delivery systems,
as well as academics and others interested in the development
of online journalism.
The Society of Professional
Journalists will hold its national convention as
scheduled on Oct. 4-6 at the DoubleTree Hotel in Bellevue,
Wash.
The Society of Environmental
Journalists will hold its annual conference on Oct.
18-21 on the campus of Portland State Univ. in Portland,
Ore.
Registration for the conference, which is still open,
can be made through the SEJ office at 215/884-8174.
UPSIDE MAG TO CONTINUE PUBLISHING
Upside Magazine, San Francisco, has secured financing
from MCG Capital of Arlington, Va., and will be able to
continue its publication and schedule.
The magazine will be operated by UMAC, which, together with
MCG, acquired the magazine through foreclosure of Upside
Media Inc.
Ed Ring was named CEO. David Bunnell, previously CEO/editor
of Upside, will be editorial director, and Jerry
Borrell will be editor-in-chief.
AMERICAN STYLE GETS NEW EDITOR
John Driscoll was named managing editor of American
Style magazine, a consumer lifestyle publication read
by more than 200,000 collectors of American craft art.
Driscoll will also serve as managing editor of Niche
magazine, a trade publication for craft retailers
He had been editor of a group of weekly newspapers that
are published by Chesapeake Publishing's Southern Maryland
Newspaper division.
Both quarterly magazines are published by The Rosen Group,
Baltimore.
KELLY NAMED EDITOR OF YM
Christina Kelly, previously executive editor of YM
magazine, was promoted to editor-in-chief.
She succeeds Annemarie Iverson, who joined Seventeen
as editor-in-chief, replacing Patrice Adcroft.
Kelly joined YM about a year ago from Jane,
which she helped launch, as well as the now-defunct Sassy
magazine.
YM is owned by G+J USA and Seventeen is published by Primedia.
CHICAGO TRIBUNE NAMES D.C.
CHIEF
Vickie Walton-James was named Washington, D.C., bureau
chief of the Chicago Tribune.
She replaces James Warren, who was recently appointed
deputy managing editor/features for the paper.
Walton-James, who was deputy bureau chief, now becomes
associate managing editor of Washington news.
PEOPLE
Peter Herbst
was named editor-in-chief of Premiere magazine, succeeding
Michael Solomon.
Herbst will keep his title as associate editorial director
of the parent Hachette Filipacchi Magazines.
Neil McLaughlin,
who was managing editor of Modern Healthcare, was
named acting editor of the Chicago-based publication, which
is published by Crain Communications. Clark
Bell, who was editor of MH, was promoted to publishing
director of Crain's Modern Physician.
(Media
news continued on next page)
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MEDIA
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DJ TO REPORT ON RECOVERY EFFORTS
Dow Jones has begun publishing
a free weekly newsletter, called Rebuilding Wall Street.
Richard Levine, managing editor of Dow Jones Newswires,
said the publication, which will be e-mailed to subscribers,
will draw on the reporting of Wall Street Journal
staffers, who are covering the recovery from the World Trade
Center attack in minute detail.
He said the newsletter
will provide coverage of the human, commercial and political
aspects of the story. It will focus on news and information
of relevant topics, including trading operations, real estate,
security, and communications, as well as stories about the
companies affected by the disaster.
Subscriptions can be
obtained at DowJones.com.
ANTI-WAR PAPER IS PUBLISHED
The first issue of Peace News was published Sept.
28 in San Francisco.
The idea for the paper originated with Allen Cohen, publisher
of the Oracle, a leading anti-Vietnam war paper,
and John Bryan, who worked at daily newspapers and was managing
editor of the L.A. Free Press. They bumped into each
other the day after the World Trade Center attack at the
Mission District bookstore, where Bryan works.
The two said the purpose of the paper is to express concern
about further violence and the erosion of civil liberties
in America.
The 12-page broadsheet features articles from a who's
who of contrarian commentators including Michael Moore,
Noam Chomsky, Lawrence Ferlinghetti, Dian di Prima, Paul
Krassner, Ron Kovic and cartoonist Spain Rodriguez.
Future editions of Peace News are doubtful, according
to The San Francisco Chronicle.
MEDIA GETS HIGH MARKS FOR
COVERAGE
Journalists have received wide praise for their coverage
of the terrorist attacks. Nine in 10 people responding to
a Pew Research Center poll said the media's coverage has
been good or excellent. The majority, 56%, said coverage
was excellent.
Pew's own studies during the past 16 years have shown
the sagging reputation of the media. For example, only 35%
of respondents to a poll this summer said news organizations
generally get the facts straight, down from 55% in 1985.
Asked which TV network did the best job covering the story,
CNN was first at 24%, followed by ABC at 14%, Fox News Channel
at 12% and NBC at 11%, according to Pew's study of 1,200
adults, which was conducted from Sept. 13-17.
Alfred Larkin Jr.,
54, was named to the new position of senior VP of general
administration and external affairs for The Boston Globe,
overseeing PR and the Boston Globe Foundation.
PLACEMENT TIPS
InsiderAdvantage,
an Atlanta-based consulting firm, is launching two online
newsletters that will cover political and business issues
in Florida and South Carolina.
Gary Reese, a former speechwriter for Gov. Roy Barnes,
is editor-in-chief of the newsletters. He can be reached
at 770/432-3267.
Conde Nast Traveler
is adding information about cancellation policies,
travel insurance and other timely travel topics as the result
of the terrorist attacks.
Tom Wallace, editor-in-chief, who became editor of Traveler
as the Persian Gulf war began in 1991, said travel returned
to normal before the end of that calendar year.
He is not sure how travel magazines, which may face heavy
ad losses, will fare this time.
He said Traveler will keep the annual readers' choice
poll as the November cover story.
USATODAY.com
has begun publishing three new e-mail newsletters
and redesigned its flagship e-mail newsletter "Daily
Briefing."
The content of the new e-mail newsletters are:
"Tech"-A
daily report of the latest "Hot Sites," "Gadget
Guides," "Answer Desk," tech stock news,
and breaking tech news.
"Books"-A
weekly e-mail (Thursdays) including "Hot Type,"
an original column written by Tara McKelvey, covering the
latest book gossip. The newsletter also has book excerpts
and reviews, a link to USA Today's Top 150 best-sellers
list and the latest chapter from USAToday.com's
Open Book series, a collection of original novellas.
"Auto Track"-A
weekly report (Fridays) by USA Today auto writer
James Healey, "Test Drive" columnist, with the
latest auto reviews, top news from the auto industry and
eveything elese "Under the hood."
Medialink Worldwide,
New York, has been granted a U.S. patent for NewsIQ Technology.
NewsIQ automatically generates transcripts of TV newscasts
nationwide on a real-time basis and aggregates the content
into a searchable, user-friendly online database.
Scholastic
has started a free weekly Internet radio program
for students in grades 3-8.
The 10-minute show, which made its debut on Sept. 24,
can be heard each Monday via the Internet from the "News
Zone" pages of Scholastic.com.
The show, which focuses on news and feature reports, is
hosted by Florence Barrau, who is host of "New York
Kids," a live weekly program on WNYC radio in New York.
The first program covered news items related to the terrorist
attack.
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COMMERZBANK DOWNGRADES
UBM
Commerzbank,
London, has downgraded United Business Media from "hold"
to "reduce," citing declines in advertising at
CMP, its major U.S. publishing and Internet company, and
declines in volume at PR Newswire, a major source of its
profits.
UBS Warburg,
London, in an opinion published Sept. 17, also downgraded
UBM, lowering its rating from "buy" to "hold."
It cited the "worsening environment for many of UBM's
activities."
The Commerzbank
analysis was published in early September, before the World
Trade Center attack.
Commerzbank
said UBM has cut 700 jobs or 9% of staff to reduce costs
but also said this might cause "depressed staff morale."
UBM (NASDAQ:
UNEWY) is now around $6, its lowest point since 1994. It
was as high as $22 in 2000.
It has switched
in the past couple of years from being a major owner of
consumer TV and newspaper properties in the U.K. to having
75% of its business in the U.S. in trade publications, research,
and news release distribution.
Two Firms
Own 5%+ of UBM
UBM announced
Sept. 14 that FMR Corp., owner of the giant Fidelity investment
house in Boston, now owns 5.65% of UBM or 18.9 million shares,
up from a 4.51% interest.
FMR also
owns 567,100 shares or 9.9% of Medialink, which UBM is attempting
to buy. UBM made an offer to the Medialink board last month
to buy all of its 5.8 million shares for $5 each. The Medialink
board was cool to the offer, passing a "poison pill"
defense plan.
The price
of Medialink rose from below $2.50 to nearly $5 in reaction
to the bid but it has recently declined to $3.50, indicating
some investors no longer believe UBM will pay $5 a share
for the company or believe that Medialink's defense has
been successful.
Also a major
owner of UBM is Franklin Resources, investment company,
which now has 23.2 million shares or 6.9% of the 334M total.
This was announced by UBM in a "Schedule 10" notification
Sept. 5 via PR Newswire.
Concerned
About Conferences
Warburg
said it is concerned about "ongoing weakness"
in high-tech advertising and CMP's exhibitions and conferences
business. The events make up about 20% of UBM's operating
profit (excluding its Internet operations), with the U.S.
events business accounting for 10% of the total, it said.
Warburg feels that with corporate travel being cut, "there
is a real risk" that exhibition attendance will suffer
and exhibitors will cut their outlays.
UBM, responding
to this comment, said that none of its exhibits or conferences
have been cancelled.
Concern was also expressed about the volume of PR Newswire's
press release business, which is 90% U.S. based and has
a 26% operating profit (excluding UBM's online operations).
Warburg said PRN is "driven by new product launches
and corporate announcements."
Commerzbank
said it "continues to have reservations about PRN,"
noting that UBM itself said news distribution activities
have been affected by the downturn in new issues and mergers.
It is also concerned about market research volume.
UBM paid
$920M in stock for CMP, based in Manhasset, N.Y., or nearly
double its sales. CMP's flagship publication, Information
Week, was off 45% in ad pages to 910 for the second
quarter. Pages of all CMP publications were down 15% in
the first half to 18,771.
CMP Closes
HDI Show, Magazine
CMP cancelled
its HDI Expo in Phoenix Sept. 24-27 (which drew 2,000 attendees
last year) and is folding the four-year-old monthly HDI
magazine.
Ron Daniels, publisher of the magazine and director of HDI
Expo, confirmed he has left the company. He was based in
Atlanta.
HDI-Online
(HDI stands for "high-density interconnect") says
in a letter to "friends and colleagues" that HDI
Expo has been "indefinitely postponed" because
of the "tragic events of Sept. 11 as well as the inability
of our exhibitors and attendees to travel."
Nigel Main,
press contact at UBM, confirmed that the show and magazine
have been suspended.
He confirmed
reports on the UBM message board on Yahoo! that there will
be further layoffs at CMP.
B&L FOCUSES
ON OGILVY
Ogilvy PR
Worldwide has picked up the six-figure Bausch & Lomb
account, according to Jerry Warner, marketing director of
the $1.8 billion eyecare company. The firm beat out a local
Rochester agency and a "boutique" shop, he told
this NL.
Warner cited
Ogilvy's healthcare and consumer marketing skills as the
reasons why it won the business.
Ogilvy will
handle B&L's ophthalmic and ocular nutritional products
lines of business aimed at the professional and retail markets.
B&L,
in July, reported that second-quarter earnings tumbled 80
percent to $6.8 million on a nine percent sales dip.
It also
announced the return of former CEO Bill Waltrip as chairman.
That move was made to allow CEO Bill Carpenter to "focus
his full time and attention on improving the operating performance"
of B&L.
GREBEY HEADS
PR AT SIEMENS
Clarence
(Bud) Grebey, who once was VP-global communications at Levi
Strauss, is now VP-PR at the U.S. arm of Germany's Siemens
AG.
He will
handle media relations and issues management from the electronic
giant's American headquarters in New York.
Grebey's
last PR post was at Webvan Corp., where he handled the corporate
and brand communications for the one-time high-flying cybergrocery
store that went belly-up.
He also
served as director of corporate communications for Kenetech
and as press secretary for former Congressman Richard Ottinger.
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PR OPINION/ITEMS
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It's
time to get back to business, is Jack Bergen's advice
to the PR community that has been holding back some media
pitches because it fears those messages will be swamped
by the investigation of the terror attacks to the impending
war against terrorism that is being orchestrated by the
Bush Administration. The Council of PR Firms chief urges
members to "jump-start" their PR campaigns. Those
that delay actions will find themselves at a competitive
disadvantage, he warns. Some PR people feel the media may
belittle the importance of PR during this time of national
crisis. PR, however, should be front and center in any crisis.
In Bergen's mind, PR is as relevant as ever-maybe even more
so now- as the public grapples with terror in the U.S. President
Bush, in a way, echoed that point. He cited information
as a key element in tracking down and ripping up terror
networks. The war against terror will not be fought from
the sky or with heavy weaponry. There may not be any battles
that will boost both morale in the U.S and ratings for CNN.
The impending war will be about obtaining information about
people and financial links. Information is a currency that
is well-known to PR people.
How many terrorists
were wiped out today? It will be impossible to figure
out who is winning the "secret" war against terror.
There won't be any scorecards like there were in the Persian
Gulf slaughter conducted by the first President Bush. The
Pentagon will not issue grand pronouncements that the victorious
U.S. forces have knocked out columns of Afghan tanks, like
it did about Iraqi forces during the Gulf war. It is going
to be hard to maintain current patriotic fervor over news
that a five-member terror cell in places like France, Kenya
or Illinois has been wiped out. President Bush is now riding
high in the polls with approval ratings in the 90 percent
range. His father also enjoyed high ratings following the
Gulf War. Those numbers soon plummeted with the economy,
and the realization the mission to wipe out Saddam Hussein
was not completed. It's unlikely that President Bush will
ever be able to declare victory over terror.
"Moving forward,
as we must." That is the headline that Kathleen
Lewton, PRSA's CEO, used on her five-page memo to inform
members that the Atlanta conference is still on to demonstrate
the importance of the right to travel. The PRSA head is
a woman of her words. She flew to Cleveland following the
terror attacks to meet with that chapter. Lewton plans to
visit San Antonio, Austin, Detroit, Seattle and Los Angeles
before the Oct. 27-30 conference. Then she is off to San
Diego, San Francisco, Salt Lake City and Minneapolis. Lewton
also plans personal trips to the U.K. and Hawaii. In her
view, travel is a way to "affirm life." She believes
that it is the best way to pay respect to the people who
lost their lives to the terrorists.
The airlines suffered
a black eye by groveling for their Washington bailout,
and then complaining that they weren't receiving funds fast
enough. Michael Noer, of Forbes.com,
is appalled by the "spectacle of some of corporate
America's top executives lining up in the corridors of Washington,
D.C., hats in hand, begging for freebies like scruffy men
on a soup line." Airline executives were champions
of government deregulation during the 1980s. Now when the
chips are down, they crawl to Washington for a bailout.
Who are they bailing out? It's definitely not the 100,000
workers that have already been laid off in the aftermath
of the attack. It's not just the airlines that are looking
for government protection. The insurers have asked for help.
"The list of industries waiting to feed at the public
teat is growing almost by the hour," wrote Noer. The
Bush Administration is said to be listening to bailout plans
from steel companies, travel agents and car rental companies,
he wrote. Some firms may go belly-up. That is the "essence
of dynamic market capitalism," wrote Noer. "If
left more or less alone, stronger industries will emerge
from the rubble of the World Trade Center," according
to his Forbes.com
piece that ran Sept. 27.
Travel will rebound,
according to the World Tourism Organization. It noted that
travel rebounded rather smartly following the Persian Gulf
War. That situation, of course, is a lot different from
today when travel is down because four aircraft were hijacked
and their passengers were killed along with thousands others
on the ground. The WTO says travel was up about three percent
prior to the terror attacks, down from the torrid 7.4 percent
from the millennium year. The WTO predicts travel will grow
two percent this year to the $476 billion mark. If terror
is contained to one part of the world, WTO feels its impact
will be less. U.S. outbound traffic represents 13 percent
of the global travelling market.
Hats off to ASTA. The
American Society of Travel Agents has shifted its Nov. 6-11
World Travel Conference from Seville to New York City. The
board decided it was impossible to hold an overseas conference
in wake of the terror attacks on New York and Washington,
D.C. "In its hour of need, the travel industry is coming
together to support New York City," said Richard Copland,
ASTA CEO. NYC Mayor Rudy Giuliani has encouraged people
to visit the city and spend as much as possible. Christyne
Nicholas, president of NYC & Co, the city's tourism
promotional unit, hopes other groups will follow ASTA's
lead.
--Kevin McCauley
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