VISA INTERNATIONAL ANNOUNCES GLOBAL PARTNERSHIP WITH LE MÉRIDIEN

Added Benefits for Visa Cardholders Give Boost to Tourism in Asia Pacific

Visa International and Le Méridien have announced a multi-year strategic marketing partnership, providing the new partners with joint promotional opportunities while offering Visa cardholders added rewards and privileges when selecting Le Méridien properties around the world.

Based on this partnership, currently effective through June 2004, Visa and the 127 Le Méridien worldwide plan to develop proprietary products, concepts, offers, co-op marketing plans and other initiatives, providing Visa cardholders who stay at Le Méridien with a range of benefits and incentives.

“Visa and Le Méridien represent a powerful travel partnership. By aligning with this leading international luxury hotel group, Visa plans to deliver exceptional benefits and service to its cardholders worldwide,” said Tom Shepard, Visa International's executive vice president of Global Marketing Partnerships and Sponsorships. “This strategic alliance is an example of Visa’s continued commitment to provide added value and benefits to our members and cardholders.”

Le Méridien has a current global portfolio of 127 hotels in 55 countries. Through the alliance that Le Méridien has with Nikko hotels, extended this year to include all Nikko hotels, Le Méridien has a total marketing network of 149 hotels in 63 countries and territories.

Visa’s ongoing partnerships with key hospitality players like Le Meridien will provide more value for tourists’ travel dollars when they visit Asia Pacific using their Visa cards.

In Asia Pacific, Le Meridien has 25 hotels in eight countries, while Nikko Hotels has another 40 hotels in 12 countries, including 23 in Japan, two of which will be opened in 2002.

Janet Tan, Director of Travel & Entertainment for Visa International’s Asia-Pacific Region adds, “With such a wide choice of hotels offered by this leading hotel group, the partnership demonstrates the benefits which can be passed on by Visa to cardholders globally, including the 260 million cardholders in Asia Pacific. We also look forward to working with Visa card-issuing banks in the Asia Pacific Region to provide specific and tailor-made programs that give an enhanced service to our cardholders wishing to stay at Le Méridien.”

Such global hospitality partnerships are particularly significant for the ever-growing number of tourists both coming into and travelling out of Asia Pacific. According to statistics from World Tourism Organization (WTO), Asia Pacific has experienced the highest growth rate in terms of both inbound and outbound tourist arrivals compared to other regions in almost two decades. Between 1985 and 1998, the number of tourists visiting Asia Pacific grew at an annual rate of 8.5% against the world average of just over 5%. WTO’s latest preliminary figures for 2000 also showed that Asia Pacific remained the fastest developing tourist-receiving region at a rate of 14.5% compared to the global rate of 7.4%.

The region is also expected to sustain longer term tourism growth. The number of tourist arrivals in Asia Pacific is forecast to reach 397 million in 2020 or 25% of total world arrivals, according to the report Tourism 2020 Vision published by the WTO. During this period, the region is expected to record growth rates of over 5% a year, compared to the world average of 4.1%.

As the region’s economies took off in the last two decades, outbound travel from Asia Pacific has also been accelerating at a similarly robust rate of 8.5% against a world average of 5% between 1985 and 1998, generating a total of 93 million tourists in 1998. Travelers from Asia Pacific will be able to benefit from Visa’s partnership with Le Meridien by enjoying special incentives at the 127 Le Meridien hotels in 55 countries worldwide.

In 2000, Asia Pacific Visa cardholder’s spending during overseas travel saw a positive growth of 15% to around US$15 billion compared to the previous year. Japan, Australia, Hong Kong and Taiwan are Visa’s top outbound travel markets as measured by cardholder spending overseas, with Japan leading at 48% of the total, followed by Australia (13%), Hong Kong (12%) and Taiwan (8%).

Visa cardholder spending by international tourists visiting Asia Pacific countries also increased by 15% in 2000 with Australia, Hong Kong, Thailand and Japan emerging as the most popular travel destinations for Visa cardholders around the world.

“Le Méridien is proud to join forces with Visa International to offer a solid portfolio of luxury hotels around the world, with premium service and overall value that will appeal to Visa’s global network of discerning cardholders,” remarked Norman Bekker, Manager Partnerships, Le Méridien. “Le Méridien is expanding rapidly around the world with an ambitious program which last year saw 19 hotels opening, with a further 19 scheduled to open in 2001 and 2002; or, put another way – 1.5 hotels opening each month somewhere in the world!”

A US$1.5 billion plus turnover company, Le Méridien’s portfolio is a mix of owned hotels and managed properties. The 127 hotels are currently divided between cities (92) and resorts (35). Le Méridien is also the largest single member of The Leading Hotels of the World – with 20 properties belonging to the prestigious marketing consortium.

Alliances with hospitality and destination partners are part of Visa’s ongoing effort in promoting tourism in Asia Pacific and offering the best value for visiting cardholders. Visa has recently signed an exclusive three-year partnership agreement with the Korea National Tourism Organisation (KNTO). There are also ongoing partnerships with national tourism organisations to give added benefits to Visa cardholders. These include collaboration with the Australia Tourist Commission in the “Australia Prefers Visa” programme, with the Tourism Authority of Thailand and Thai Airways for “Discover Thailand with Visa”, and with KNTO in the “Korea Welcomes Visa” campaign. Visa is also the main sponsor and the official card of the Great Singapore Sale for three years from 2001.

Visa has been voted “The World’s Leading Credit Card” for four consecutive years in the World Travel Awards. The benefits of traveling with Visa are numerous. Marketing alliances with T&E industry partners providing for thousands of discounts and special offers, savings on currency conversion, the Visa/PLUS Global ATM Network, more than 22 million acceptance locations, and a 24-hour phone network designed to aid the Visa traveler are just some of the many reasons why travelers have made Visa “the World’s Best Way to Travel.”