Can the Obama government buoy tourism and hospitality in tough times?
Industry leaders say that meetings at the White House, at the Fed’s office and Treasury Department have been quite constructive. Policymakers show they want to find the solution but may need a lot of information to forge ahead and catch up. Anecdotal feedback will not work any longer for projects and other developments that have tanked. The government shows it needs to understand how company financial system works before any bailout can be disbursed, yet again.
At the recent American Resort Development Association (ARDA) 2009 convention held in Florida, Jeffrey DeBoer, president & CEO, The Real Estate Roundtable, said their number one objective is to try to get lending going again for solid commercial real estate. His organization is not in the business of smoothing out business risks in Washington but in the business of making policies on risks anticipated on the credit part of the equation. He said he is in charge of creating the reconnect between originating and securitization market back together in order for lending to flow again.
“We value assets of about $6.5 trillion supported almost 50/50 debt and equity of $3 trillion (debt). We have huge amounts of mortgages that mature every year with this year maturing $300-500 billion of loans; and over the next two years, $1 trillion. We think there will be a wave of foreclosures on the commercial side as we’ve seen on the residential side,” he warned.
In answer to the worsening crunch about to plague the commercial real estate or resort real estate, two facilities may offer solution.
The TALF or Term Asset Lending Facility is like a “giant credit card, which provides very attractive financing to investors, private equity groups and hedge funds to come in and buy newly-originated AAA securities backed by a chosen field of assets, according to DeBoer. Launched in October, it is now running well on the consumer side of the lending equation for which it was originally set up on a one-year term. Commercial TALF has been proposed for 5-10 year-term financing vehicle.
“Most loans can now be made, then packaged and sold in a secondary market. It has seen about $10 billion done so far. We’re looking at expanding it to the commercial mortgage backed securities market in the next few weeks, allowing us to price discovery on the AAA’s to know where values are. The theory is that the rest of the capital stock’s spread will start to narrow. On the consumer side, the spread has come down about 400 basis points; we expect the same thing in commercial markets so that when spreads narrow, it will be more attractive to the lenders,” said DeBoer.
The PPIF or Public-Private Investment Fund put together by the government is a vehicle with equal funds of government and private sector equity, which buys legacy securities or loans also known as toxic loans. DeBoer added: “This program will use private capital leveraged with public money which clearly coagulates out of bankbooks. The theory is this can get rid of some of the loans already on bankbooks that can’t be priced. If originations are priced on AAA’s, then we can start to get investor confidence back into the market including refinancing existing loans and new transactions.” However, the main task is to refinance or re-securitize these loans, a tremendous amount of equity will be required.
Certainly today, new facilities and equity proposals are in place that may add up to a system that is now accepted as cyclical, while the market could not loan to the hospitality/ timeshare industry and commercial real estate.
“We are working hard on the international travelers into the US. The US Department of Commerce recent numbers show 650,000 less travelers today than in 2000 (before September 11). This number constitutes 8 years of work alone this month; however 48 million more people traveled around the world. People who buy timeshare and vacations are now shrinking in numbers. A big market that is shrinking because it is getting harder and harder to get visas to the US,” said Roger Dow, president & CEO, The US Travel Association. He said what they care more about is growing the pot - getting a lot more people to travel. After 9/11, involvement of the government has changed tremendously in the business. “Now we are in a situation in which we have policy that gives us the ability to do business or hurt us significantly,” Dow said. The US Travel Association is also focused on sustainable tourism and other tourism issues including getting a handle on the media and advocating for a healthy tourism economy.
He pointed out to that in October, the AIG effect happened. “AIG had a meeting and the press vilified the group as junkets, partygoers, etc. which caused a phenomenal downturn in our market which cost hotels a few million dollars in one month alone,” he said. There’s this rhetoric going around in Washington and the media sensationalizes it, we’ve decided to take action and run an ad on USA Today saying: “Want to lose one million more jobs? Just keep talking. It got us some attention.” Dow said they went to the White House and went over the state of the vacation industry and its impact to the US economy. “President Obama listened and left us feeling he knows where the challenge lies. The President has the greatest opportunity to tell the world during his visits overseas to pitch America to the world. He was engaged. We will keep the pressure on,” said Dow.
Jerry Kilgore, former attorney general (AG) Virginia, partner, Williams Mullen said there will be an increase in activity in every state with consumers who cannot make payments will unload their primary homes or vacation homes. “As we continue to consumer payment problems, we will see an increase in amount of cases in the state attorney general. See the state AG’s sooner rather than later. State AG’s sue for millions of dollars but settle for just about hundred thousand. Let your state AG you will expand in one state,” he said.
DeBoer commented today’s policy-making process is extremely constructive dialogue to find solutions to get the US out of the downturn. He said: “It’s not a confrontational complication like we’ve had on issues on the past. If you do your homework well, show through data how your plan will be good for the man on the street, you may succeed.”
“With the Obama administration, we’ll have a lot of enforcement and challenges with not only the anti-trust arena but also with the consumer side. State AG’s are giddy about the new LCCs and LTCs and states are in a cash crunch right now. They may want to investigate activities in the industry but may not have the resources to do so,” said Kilgore adding there will be a national association of AG’s meeting in DC for consumer protection talks – to partner together in enforcing consumer complaints and violations in the future. Some states that are cash-strapped to take down companies and get more cash into the vacation business.
Dow said he fears the “nibbling away” of his association’s proposal to the federal government in the next 60 days.
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Agha Dilbar
My Open Letter (Blog) has been sent Six Lak (600000) to International Community for the welfare of Humanity till today. I Agha Dilbar authorize Newspapers, Magazines, Internet, to Publish and Radio, T.V. Channels to broadcast this letter all round the World.
Website: http://aghadilbar.webs.com
Dear President Barrack Obama
the Great Leader of the World
I Agha Dilbar have sent Mr. President 100 registered research Letters (1000 new ideas to develop America and to Change the World for Peace and Prosperity)
Through Embassy of USA Islamabad till today and also direct sent these registered Letters to Whitehouse Washington DC 20500.These letters have been written on the guidelines of CHANGE WE NEED. And these letters are about the Common Men Problems of respected American Peoples and their Solutions. To end, Economic Recession, Unemployment and to Finish War, all round the World for Peace and Prosperity. In these letters I have sent one thousand new scientific Planning /Suggestions, about every walk of life for Peace through Friendship Progress and Prosperity all over the World.
My dear Barack Obama, the great leader of the world, my friend, my brother, provide an opportunity to Agha Dilbar to pay an official visit to America, that we two brothers sit together and by halting this horrible war.
In this war 1-million people have died from 9/11 till today, if this war continues, it will become the 111- World War.200-Million people would die, if 111-World War is triggered) can take out 6.5 billion people of the World from abyss of destruction .We two brothers Barack Obama+ Agha Dillbar can put them on the road to Progress and Prosperity through Peace.
Dear President Barrack Obama considers, from 9/11 till today, America has conducted many war operations in connection with War on Terror, resulting the circle of war has spread hundred times. Millions innocent persons have died.
In this war. Many More have been rendered homeless. One Lak (10000) war affected youth joined the army of Al-Qaida and Talban by the help of anti American countries have begun gorilla war in a horrible manner. It is the result of wrong war strategy. I Agha Dilbar desire to solve all above mentioned problems in a meeting with President Barrack Obama by adopting new revolutionary planning by bringing an end to present gorilla war in Iraq, Afghanistan and Pakistan. In the result the World can enter in a peaceful, advanced and progressive world, May it be so.
I Agha Dilbar have a new War Strategy to achieve success through Table Talk between Talban, Pakistan and American Gov. 90% of Talban that are fighting against Pak Army belong from Swat and Tribal Areas of NWFP. I can provide America all realistic facts in such manner that their implementation could convert these Talban into Patriotic Citizens of Pakistan.
In this War Strategy Pakistan Gov will never send his Heavy Artillery, Tanks, Cannons and Air craft in war. In this way 5-million persons will never Displaced. In the end Talban by their will handover, their Weapons to Pakistan Gov, they will come to Table Talk and Suicide Bombing will come to an end in Pakistan. Through this War Strategy Pakistani and American Gov can save expenses on war. Through this planning American and Pakistani Gov can utilize their saving on war budgets for development of Schools, Hospitals, Colonies, Markets, Industry, Roads, Bridges, Dams, Canals of Swat and Tribal Areas of NWFP that are war affected.
Due to wrong war strategies of the American and NATO forces.
The war on terror is getting worst mainly due to use of air craft, tanks, Cannons.
Because nine innocent people are killed for a single terrorist this way in these circumstances thousands
of innocent people lose their life or properties and any other source of income.
In the result many people join terrorist or become suicide bomber. As they think there is no other way to take revenge of the innocents killing of their relatives these are the basic reasons that hundreds of suicides are generated very quickly and easily in Pakistan, Afghanistan, Iraq particularly who further kill thousands of other innocent public.
On account of present war strategy, Billion Dollars are being wasted yearly.
This war can cause Fall of America instead of continuation of war; my best suggestion for America must keep his Supper Power on the World and should conquer the World instead of war, but by his No-1 scientific technology spending on agriculture, industry, trade, education, scientific development and tourism, all round the World. Making an end to Economic Crisis in America.
A new Global Package is being offered for your kind honor. America will have to make complete and final announcement that in future all Multinational American Companies to get free land on 20-years lease and will set up under the BOOT agreement (in undeveloped and poor countries) factories, mills five star hotels, schools, colleges, universities, hospitals, air companies, shipping companies, latest railway, bus transport and steel mills. All these companies will be bound to handover without any cost to under developed and poor countries well as their machinery and transport after 20-yaars.
A new suggestion in connection with Global Peace is offered that in return of export American Agriculture and Industrial Products, will give his 50% prophet to the exporting countries and utilize as Aid on the development of agriculture, industry, trade, education and tourism. This suggestion, making an end to American Economic Crisis and get full support to enhance his Foreign Public Relation
. May it be so?
To make successful American Foreign Policy on Global Level the following planning is put before:
a) America will have to provide free scholar ships at least to ten top master students (in each country) of medical and science in underdeveloped and poor countries of the world.
b) Highly educated and well trained one hundred cultural groups (each group contains 100 persons) will have to arrange one hundred cultural shows for three months in big cities of underdeveloped and poor countries.
c) America will have to arrange exhibitions through his Embassies for his latest products, in the underdeveloped and poor countries .All these mentioned above industrial exhibitions will be arranged continuously for two months. In the above mentioned exhibitions present products will be sold except export order booking. In mentioned above exhibitions, American Cultural Programs will have to arrange and American Traditional Dishes will be kept for sale. In these exhibitions American Tourism Stalls will also be set of.
Following rules and regulations will be undertaken for the progress and prosperity of American students.
a) Among metric, Fsc, Bsc, (eng} .Mbbs, Llb, Ca and diploma holders in all institutions, all those receiving degrees at the state level, ten each from girls and boys by cash prizes will be announced on behalf of the gov during invitation on lunch.
b) For above mentioned top ten intelligent students boys and girls each, tours for different historical and healthy sites will be arranged free of cast.
c) Sport Talent Schools of international level will be set up over the country at the district level, in which students of extra-ordinary sports talent taught from class one to Fsc level.
d) American states gov will announce free transport, free medical facilities and free lunch during education to all school, college and university students.
Minimize the aforesaid differences, which I will deliver to president
the increasing distress and hatred between the Muslim world and America is the major cause of weak relationship on public and government level.
As a sincere friend I have practical suggestions to Barack Obama in my official visit to America.
I request the government of America to allow me to describe (first of all my briefing with president’s advisors). My one thousand plans & ideas for changing the world before one to one meeting with the president Barack obama.thanks
Today we are presenting a new planning in America for the rapid progress in industry.
American government will allow to 50% relief in the following things. Petrol, dizel, electricity,
gas and water bills
For the establishment of new industries in industrial zone American government will allow 25%relief in taxes .
1) Sugar mills, textile mills, Garment Industry
2) Shoes tire tube factory.
3) Milk powder industry, tin pack fruit industry, ornament industry, carpet industry.
4) Frozen fish, chicken beef, and meat industry.
6) Dairy forming, poultry forming, fish forming, cattle forming, fruit forming.
7) Vegetable forming biscuit sweet industry hotel industry.
8) Electronic industry, sanitary industry paint industry.
9) Furniture industry.
10) Steel mill industry.
11) Engine industry.
12) Aero plane industry and shipping industry.
13) Computer and mobile industry.
14) Medicine industry fertilizer industry and insecticide industry.
15) Car, bus truck loader, harvester industry.
I Agha Dilbar have sent Ten Million research Peace Letters to International Community from 9/11 incident till today. This letter is my Great Peace Mission plan which is continued. Present Global Economic Crisis is the result of War on Terror. This Crisis if further accelerates could initiate a 111-World War. Please hear my Voice of Truth; I can save the World, for my Great Peace Mission, with the help of President Barrack Obama, Peace and Prosperity.
The Government of America will announce to provide free home facility to employees after 20 year of service as per following rules and regulations.
1. For providing free home facility to their employees after retirement the government will deduct 2 ½% amounts for their monthly salaries.
2. The government of America will deduct 2 ½% amounts of salaries to the employee and will deposit the same in government treasury which shall be paid to the housing company on allotment of plots.
3. The housing company shall provide beautiful home to the government or non government employee after 20 year of service.
4. The people not acquiring home after 20 year of service shall be paid in whole by deducted total amount from their salaries during their employment.
The government of America should follow the below regulations immediately. For giving facilities to the government and
private employees.
• The employees working in America shall be given pension from the government treasury equivalent to 50%
Of their salaries.
• Such employees who suffer from disabilities shall be given insurance benefits for their whole lives for the government treasury.
And their children of the employees who face death also be paid insurance to their parent’s salary.
• All the employees working in America shall given free transportation, medical facility, food and living during their tenure.
Employees leaving their jobs in America shall be paid given 3 months advance salary.
President Barack Obama will become more popular by taking above action, and industry wills also prosper more in America.
Mr. Barack Obama you are not only the Leader of America, you are Great Leader of the World. In this connection I am waiting for your Email response, dated 2.10.2009.
Please Confirm.
Thank you, God blesses you and God bless America.
Agha Dilbar (founder)
International Revolution Movement
64-neelum block ait Lahore (Pakistan)
Phone: 0092427830084
Cell 03224628349
Email aghadilbar4@gmail.com
Website http://aghadilbar.webs.com/
This Open Letter has been sent Six Lak (600000) to International Community for the welfare of Humanity till today. I Agha Dilbar authorize Newspapers, Magazines, Internet to publish and Radio, T.V. Channels to broadcast this letter all round the World .
I Agha Dilbar challenge with 100% trust that own result of my meeting with Barack Obama war on terror and suicide attacks in PAKISTAN, AFGHANISTAN ,IRAQ And all over the WORLD could be put to an end and due to this great success Barack Obama would be able to rule the America till 2016. And on my return of my official visit from America the world will be set on the way of implementing the CHANGE WE NEED. Live with Dignity and Die with Grace.
It has been extraordinary to read and hear, some of the things I did my decision alone by the voice of God, who called me in my heart.
Mystery of success to rule the World
Peace through friendship progress and prosperity, Excelsior for peace.
Thanks
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Obama cannot 'SAVE' the Travel Industry. The industry has to saveitself from politicians, protectors, and charlatins. When will travel stand up for itself and stop looking for others to solve it's problems. The problem with travel is the industry itself. Afraid to charge adequate fees, afraid to charge adequate margins of profit, afraid of the consumer. Get real if you cannot make a profit why be in the industry in the first place? Tax losses? Dumb? Blind?
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