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Internet Edition, October 3, 2001, Page 1

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.


Internet Edition, October 3, 2001, Page 2
   

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.


Internet Edition, October 3, 2001, Page 3
   
MEDIA NEWS/JERRY WALKER
    

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)


Internet Edition,October 3, 2001, Page 4
   
MEDIA NEWS/JERRY WALKER
   

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.


Internet Edition, October 3, 2001, Page 7
   

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.


Internet Edition, October 3, 2001, Page 8
    

PR OPINION/ITEMS

 

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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