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DISASTER MANAGEMENT
Hotels deserted in Tokyo amid nuclear scare

Quake-hit New Zealand economy dodges recession
Wellington (AFP) March 24, 2011 - New Zealand's earthquake-battered economy narrowly avoided a double-dip recession as it limped to 0.2 percent growth in the October-December quarter, official data showed Thursday. The quarterly figure, which was in line with market expectations, followed a 0.2 percent contraction in the July-September quarter. Two straight quarters of negative growth would have put New Zealand in a technical recession. Statistics New Zealand (SNZ) said the 0.2 percent growth in gross domestic product (GDP) during the final three months of 2010 meant the economy expanded 1.5 percent in the calendar year. It said New Zealand's economic performance in late 2010 was hampered by an earthquake that hit Christchurch in September, claiming no lives but causing extensive damage.

"Short-term impacts from the September earthquake on GDP were expected due to disruption to infrastructure, and businesses being closed," SNZ said. A second quake hit Christchurch on February 22, wreaking even more destruction and killing an estimated 182 people in a disaster the government has said is likely to cripple growth in the first half of 2011. Even before the earthquakes, New Zealand's farm-reliant economy was struggling to shake off the impact of a recession that stretched from early 2008 to mid-2009. Finance Minister Bill English said the flat quarter not only reflected earthquake damage, but also a rebalancing of the economy as New Zealanders increased savings and paid down debt.

He believed it would bounce back in the second half of 2011 as the NZ$15 billion ($11.1 billion) task of rebuilding New Zealand's second largest city stimulated demand. "There are reasons to be optimistic about growth picking up later this year, despite the devastation and considerable disruption of the second earthquake in Christchurch last month," he said. "New Zealand's commodity export prices remain around record levels, interest rates and inflation are relatively low, the rebuilding of Christchurch will provide a boost to the regional and national economy." English said the Rugby World Cup, to be held in New Zealand in September-October, would also help the economy, attracting tens of thousands of international visitors.

Financial markets reacted positively to the quarterly figures, with the NZX-50 index up 0.3 percent at 3,385.53 in midday trade and the New Zealand dollar rising 0.26 US cents to 74.27 US cents. Analysts said the result ended speculation that New Zealand was again in recession and the figures contained signs the economy was gradually gaining momentum, including a 2.5 percent rise in manufacturing over the quarter. When combined with strong commodity prices and the Rugby World Cup, this should be enough to eventually overcome the "highly negative" short-term economic impact the latest earthquake, they said. "From the perspective of the people who live in the (Christchurch) region it is absolutely disastrous but from an economy-wide perspective it's not going to be enough to knock us off our stride," BNZ economist Stephen Toplis told Dow Jones Newswires.
by Staff Writers
Tokyo (AFP) March 24, 2011
The immense and usually bustling entryway of the luxurious Imperial Hotel in the heart of Tokyo is now dimly lit and nearly empty, save for 15 staff waiting to greet guests who are unlikely to arrive.

Tokyo's hotels have emptied since Japan's quake-tsunami disaster, with some forced to shut down as foreigners flee, locals stay home and businesses scrap meetings and conferences under the shadow of an uncertain nuclear threat.

"Since March 11, everything has changed: seminars, banquets and reservations have been cancelled en masse, especially bookings by foreigners," Uko Komatsuzaki, head of public relations for the Imperial Hotel, told AFP.

"We are usually 80 percent booked at this time of year but right now our occupancy rate is about half that," he said.

"Foreigners are afraid of radioactive fallout; for the Japanese, at least at first, they were afraid of aftershocks, problems travelling to Tokyo and family fears."

The nuclear emergency at the Fukushima power station, 250 kilometres (155 miles) northeast of Tokyo, and the discovery of radioactive particles in the city's tap water have spooked foreign travellers.

The disaster struck weeks before Japan's famed cherry blossom season, usually a tourist draw for those looking to savour a party atmosphere under the pink billows of flowering trees in parks and world heritage sites.

As for local guests, the quake and tsunami -- which have left more than 25,000 dead or missing -- have erased any thoughts of merry-making.

Tokyo's famed neon has been reduced to an eerie gloom amid power rationing.

Weddings are going ahead on schedule due to the months of planning, but the number of attendees is greatly reduced, as some cannot travel and others are themselves survivors of the massive wall of water that hit the northeast coast.

The Shangri-La Hotel, in the capital's Marunouchi business district, has shut its doors until April 16 and put its 300 staff on paid leave.

"We felt that with the logistical difficulties, transportation issues and the rolling blackouts, we were not able to offer our usual standard of service," spokeswoman Maria Kuhn told AFP.

Others like the Grand Hyatt and Park Hyatt in hip city districts, the New Otani near the government quarter, the Mandarin Oriental or the ever-chic Peninsula have also shut down restaurants and bars, or cut back their hours.

The hotels are obliged to cut back on their power consumption, and suffer the indirect effects of the rolling blackouts instituted by embattled Tokyo Electric Power Co., the operator of the Fukushima plant.

Those hotels with a primarily foreign clientele are suffering the most, as Europeans and Americans were the quickest to leave Tokyo in the aftermath of the March 11 disaster and have yet to come back, travel agents say.

"2011 was shaping up to be a brilliant year, an exceptional one with the number of individual tourists sharply up -- we've never seen such a tourist love affair as we've seen in recent months," said Claude Sauliere, the manager of French agency Vivre le Japon.

"The backlash is awful -- I think that 90 percent of the people who were planning to come to Japan this spring will cancel," added the industry veteran, who predicted that cancellations could continue to flow in all year.

The Imperial Hotel's Komatsuzaki shares Sauliere's concerns.

"We fear that foreign tourists won't come back any time soon, especially if the radioactive contamination of foodstuffs gets any worse," he said.

"To try to make up for the shortfall, we're planning on making special offers to Japanese customers, including those who live close to Tokyo."



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DISASTER MANAGEMENT
Japan rebuild may hit $309bn, radiation fears grow
Osaka (AFP) March 23, 2011
Japan on Wednesday said the cost of rebuilding the country after its biggest recorded earthquake could be as much as 25 trillion yen ($309 billion) as a deepening radiation scare hit shares. In the biggest estimate so far, Japan put the cost of the earthquake-tsunami disaster at more than twice that inflicted by the 1995 Kobe quake. The World Bank has said Japan needs up to five years to reb ... read more







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