Holidaymakers who use plastic are paying the price for banks losing out on penalty overdraft fees. By Harriet Meyer

Travellers heading overseas over the Bank Holiday weekend should think twice before using their credit or debit card abroad.

Holidaymakers paid banks and building societies more than £700m in charges for paying by plastic overseas last year, according to independent statisticians at moneyfacts.co.uk.

While many travellers find credit and debit cards are a convenient way to pay while away, this comes at a hefty price if you are hit by an array of hidden charges. These include foreign currency loading fees, transaction fees, and cash machine withdrawal fees.

Bank profits are under pressure from court rulings against penalty overdraft charges and credit card default fees. So they have been pushing up charges elsewhere.

For example, earlier this month Clydesdale raised the loading fee on its credit card by a quarter point to 2.75 per cent , while last month Lloyds TSB increased the foreign loading fee when using its debit card overseas by 0.24 of a percentage point to 2.99 per cent .

A loading fee is charged by the card issuer when you use your credit or debit card overseas for a purchase or to withdraw cash. Typically this equals 2.75 per cent of the transaction value. So if you spend £1,000 on your card on holiday you could be charged £27.50 in loading fees alone.

In addition, a transaction fee may be charged on overseas purchases using a debit card. For example, these can add £1.50 to the cost of a single purchase with Halifax debit cards overseas.

Making a trip to the cashpoint will not enable you to escape these fees. When withdrawing cash, you face a loading fee in addition to a cash withdrawal fee.

Take the Lloyds TSB debit card, which now charges a 2.99 per cent loading fee and 1.5 per cent fee for overseas cash withdrawals. So a customer withdrawing £1,000 abroad would pay almost £45 extra, in the form of a £29.90 loading fee and a £15 withdrawal fee.

If you use a credit card, the withdrawal fee is even more expensive, at around 2.5 per cent , and you face a higher rate of interest on your debt.

Rob Kenley, head of cards at Moneysupermarket.com, warned: "Never use a credit card to withdraw money from a foreign cashpoint, because you will be charged a cash withdrawal fee, loading fee, and a higher rate of interest than your normal annual percentage rate (APR)."

Another consideration is that any interest-free period that applies to purchases made on the card does not apply to cash withdrawals, so you will start racking up interest immediately.

To see if you might fall victim to unnecessary charges when using your card, read the summary boxes in card leaflets. Our table outlines the cost of making a purchase or cash withdrawal for €100 using a variety of major credit and debit cards.

If you want to use a debit card abroad which does not charges these fees, open a Nationwide Flex Account to benefit from a card that does not charge loading, cash withdrawal or transaction fees.

Whether in the UK or abroad you will always be charged around 2.5 per cent for withdrawing cash using a credit card. Neither Nationwide nor the Post Office levy overseas loading fees on their cards for purchases or withdrawals.

Mr Kenley added: "Another provider to consider is Saga, which does not charge a loading fee on its credit card when it is used in the European Union."

Another factor for holidaymakers to beware of while abroad is known as a 'dynamic currency conversion', which is becoming increasingly common with foreign retailers. Rather than the card being billed in the local currency, the shop, hotel or restaurant is given the choice of converting the sum into sterling.

In theory, this allows customers to choose whether to pay in the local currency of the country they are in or their own currency. Mr Kenley said: "Never pay for a foreign transaction in sterling. You should politely decline a retailer who offers you this option as exchange rates are up to 3 per cent higher than those used by Visa or MasterCard."

Other options for taking money abroad include travellers' cheques and currency. Commission-free deals are commonplace, but you need to consider the exchange rate on offer to work out how good a deal it really is.

One alternative is to use prepay travel cards such as the one recently launched by Barclays, as these are free of the various charges on purchases - although you may have to pay to buy the card in the first place, and there is a mark-up on the exchange rate when loading it. These prepay cards look like credit cards and carry the Visa, MasterCard or Amex logo, but are loaded with either US dollars or euros. A small fee of around £2 will usually be charged when using them at cashpoints.

Andrew Hagger from moneyfacts.co.uk said: "Prepay cards can be an attractive way for younger people to pay for travel, with parents able to top up the card from home and also limit the spending available.

"As they are not linked to your bank account, the risk of identity theft is reduced if the card becomes lost or stolen."

The cards can be topped up over the phone or online. Some have chip and personal identification number (Pin) security and all can be frozen if lost or stolen.

Mr Hagger added: "Whichever method you choose, make sure you are aware of any costs which may be charged, but equally as important make sure the method suits your needs, the country you are travelling to, and always have a back-up in case of theft."

Case study: a flexible friend

Alexandra Stokes was keen to avoid unnecessary bank charges and maximise her holiday spending cash – so she opened a Nationwide Flex Account.

Britain's biggest building society is the only credit and debit card provider not to charge hidden fees on customers who use them overseas. Mrs Stokes, 25, a part-time primary school teacher from Benson, Oxfordshire, pictured above with her six-month-old daughter Eleanor, takes regular short holidays around Europe, and recently returned from a week in Britanny.

She said: "After looking at other providers it seemed better to go with Nationwide, as it doesn't impose hidden charges like the banks. I was particularly aware of these, with all the news recently surrounding the various fees banks levy and the litigation going on. I wanted to use a provider which is open and transparent."

As Mrs Stokes already has a mortgage with the building society, it was a simple process to open the account. She said: "There are lots of expenses with a baby daughter and it's good to know what is being spent while we are away, rather than have a nasty shock when the statement arrives."

Ryanair, one of the pioneers in charging passengers for checking in their luggage, is going a step further with plans to charge passengers for using the airport check-in desk.

The Irish no-frills airline, which carried more than 45 million passengers in the past year, said yesterday that it would charge passengers an additional £2, or €3, if they chose to use the airport’s check-in facilities.

Customers will be able to check in free only by using the internet and taking only hand luggage. Ryanair currently charges its passengers £2 to check in online, or £4 for a return booking, but will scrap the online fee from September. Those who check in online will also be granted priority boarding rights.

Ryanair said it hoped that the new fee, which will apply for all bookings made on or after Thursday, September 20, would encourage its passengers to check in online. A spokesman said that only “a small proportion” of passengers use the service currently, which allows passengers to confirm their flight details and print a boarding pass.

He said that the charge reflected the cost of providing the facilities at the airports Ryanair used.

Passengers with reduced mobility, or who are blind or visually impaired, are required to check in at the airport, as are passengers travelling with infants and groups of more than nine people.

The airline already charges passengers £5 for every bag that they take on their flight. The charge applies to each leg of a journey. Passengers with bags weighing more than 15kg (33lb) must pay an extra £5.50 for each kilogram above the limit. While those charges do not apply to hand luggage, current Department for Transport rules restrict passengers to just one item each.

Ryanair introduced its luggage charges in March 2006, four months after its rival, Flybe, introduced similar charges. In February this year British Airways admitted that it would charge passengers extra if they split their baggage allowance into two or more bags.

Ryanair’s latest move comes just weeks after the Office of Fair Trading (OFT) acted to reveal the actual cost of the “£1 fare”. The UK competition body’s actions were driven by airlines, including Ryanair, that advertise low fares, only for additional fees to be added to boost the fare that is actually paid. The OFT demanded that all fixed, non-optional costs must be flagged up before the customer agrees to pay for their ticket.

The new check-in charge is unlikely to be covered by the OFT’s move because the customer could avoid the fee by flying without baggage and by checking-in online.

Drought-hit Portugal has asked the European Union (EU) for aircraft to fight forest fires raging across the nation, a fire service spokeswoman says.

Officials have asked Brussels to supply amphibious planes and helicopters, and are awaiting a response.

About 3,600 firefighters are battling nearly 50 fires on Saturday amid Portugal's worst drought on record.

The most serious fire is near Pampilhosa da Serra, in central Portugal, and is being fought by about 200 men.

The blaze reignited on Friday after firefighters struggled for five days to put it out.

Forest fires have burned about 134,500 hectares of woodland, the forestry service estimates.

At least 13 people have died from fires this year, 10 of them firefighters.

Several European Union countries are sending firefighters and equipment to Greece to help fight hundreds of forest fires that have killed at least 49 people.

Earlier, Greek Prime Minister Kostas Karamanlis declared a nationwide state of emergency.

He said action was being was taken "to mobilise all means and all forces" to put out the worst fires in a decade and help those affected, mostly on the Peloponnese peninsula.

A spokeswoman for the Greek embassy in London, Menya Papadopoulou, has described the firefighting operation.

"We're getting help from France, from Italy, from Spain, Germany, Holland, Cyprus," she said.

"Of course whatever water-dropping planes arrive tonight, most probably they will not be able to operate as night makes things more difficult."

Mr Karamanlis has pointed the finger at arsonists for starting the fires in areas hit hard by summer droughts and multiple heatwaves, and said his Government would "do everything in its power to find and punish those responsible".

Firefighters say 22 fires started after nightfall on Friday (local time), and Mr Karamanlis says that "could not have been a coincidence". Four people were arrested on Saturday on suspicion of deliberately starting fires.

Bodies recovered

Thirty-nine bodies have been recovered since Friday near the village of Zacharo in the Ilia region of the western Peloponnese, including those of a mother and her four children, aged five to 15.

These included the charred remains of two groups discovered on roads in the mountainous area inhabited mostly by the elderly in winter but a popular family holiday destination in summer.

Four others were found on Saturday near the village of Leondari in the central Peloponnese region of Arcadia.

Six more perished on Friday on the Mani peninsula, a tourist haven in the southern Peloponnese, including four holidaymakers and a volunteer fireman from a heart attack.

From midday on Saturday (local time) onwards, flames fanned by strong winds began spreading through the region, with evacuations ordered for about 10 areas, firefighters said.

The army and health ministry say tents, sleeping bags and other supplies are being sent to house those left homeless by the fires, and schools have been commandeered.

"It's chaos. Generations of work have gone up in smoke," said Vassilis Viglas, 65, who had returned to the now devastated village of Artemida for the summer.

More than 800 firefighters, along with about 400 soldiers, supported by 11 planes and seven helicopters, are attempting to stop the spread of the flames in the area.

Help from EU

Greece's EU neighbours have responded to appeals for help from Athens. France has sent four Canadair specialised firefighting aircraft, Spain two and Italy one. Sweden has also offered to send an aircraft.

Germany, the Netherlands and Norway have dispatched helicopters.

France has also dispatched 60 firefighters, and Cyprus firefighters and fire trucks.

Another fire also started on a mountain near Athens, but firefighters are in the process of bringing it under control. A convent has been evacuated there.

Another blaze has broken out in Keratea, north-east of the capital, and is moving towards the seaside resort of Lagonissi.

On the island of Euboea, north-east of Athens, firefighters have been battling a blaze since Friday night. Evacuations have been called for in four different areas.

Greece has been battling multiple forest fires since June, fanned by three heatwaves, the latest this week, and months of drought. Tens of thousands of hectares have gone up in smoke.

There is no respite from the heat in sight. The temperature is forecast to hit a high of 36 Celsius on Sunday in the Peloponnese, with winds of around 20 kilometres per hour fanning the flames.

The high value of the pound against the dollar is deterring US visitors to Britain, with figures for the three months to June showing a 6% fall in arrivals from North America compared with last year.

This follows a 4% drop in the first quarter, with the exchange rate stuck above $2 to £1.

The heightened security at airports since last August, and consequent queues and delays, may also be having an impact on the total number of visitors to the UK, which is down 3% to 8.1 million in the quarter.

A spokesman for national tourism agency VisitBritain confirmed: "The exchange rate is biting now."

Forward-booking figures from trade organisation UKinbound also suggest falling demand.

UK holidaymakers are leaving themselves open to identity theft by letting their guard down when they go abroad, a new survey has found.

A telephone survey of more than 2,000 people, commissioned by financial services company Capital One, discovered 45% don’t use safes provided by hotels and leave passports and personal documents out in the open where they can be stolen.

A further 34% said they keep their passports on them at all times while 20% prefer to hide them in their hotel room, but not in the safe.

The Identity and Passport Service confirmed that last year alone 300,000 people lost or had their passports stolen.

Professor Martin Gill, a criminologist at the University of Leicester, said: “I’m not sure many of us would leave our iPods or wallets lying around our apartments and hotel rooms, yet people seem to forget that passports and personal documents could be worth far more to fraudsters.”

Capital One principal managing director Sanjiv Yajnik added many criminals were now targeting passports and other personal information that can then be used for financial fraud.

He added: “Holidaymakers may return home to find accounts set up in their name, transactions they know nothing about on their bank statements or activity in their name that they are unaware of.”

An ABTA spokeswoman said agents could help fight fraud by reminding customers of the need for vigilance while abroad. She added the ABTA-backed Family Safe Holidays website allows customers to securely register information such as their passport numbers before they go abroad.

She said: “Also for insurance purposes people need to look after their valuables as they won’t get a payout if they don’t use the hotel safes.”

Lawyers representing more than 870 holidaymakers who fell ill in the Dominican Republic are confident of winning compensation.

Law firm Irwin Mitchell is representing more than 750 customers who recently stayed at the Bahia Principe Hotel, and a further 70 who stayed at its sister hotel, the Gran Bahia Principe.

All the complaints involve gastroenteritis-type sickness following stays at the hotels since April. Partner Clive Garner, head of the law firm’s international travel litigation group, said he was confident the tour operators will settle before the case is heard. He said the island had experienced problems since 1997.

Manchester-based law firm Pannone is representing 50 clients of First Choice and Thomas Cook who stayed at the island’s Riu Merengue, Occidental Grand Punta Cana and Dominicana hotels, and reported similar symptoms.

Pannone head of travel law Andrew Morton suggested it was only a matter of time before the travel firms settled the claims.

He said: “You have to force them to do it and the only way to do that is to be part of a big group.”

However, Federation of Tour Operators director-general Andy Cooper expressed confidence the tour operators would not have to compensate holidaymakers as the main source of the outbreak was believed to have been brought in by a guest and many of the complainants only suffered symptoms for about 24 hours.

Cooper said: “There are strong grounds for defending this case."

None of the operators would comment, due to the legal action, but confirmed they were directing clients away from some of the affected properties.

The Foreign and Commonwealth Office has said there are no reports of British casualties in Peru following the earthquake on Wednesday that killed 400 people and injured 1,000.

Despite around 61,000 British tourists visiting the country a year, none was affected by the earthquake, which measured 7.9 on the Richter scale and mostly affected the cities of Ica and Pisco which are 100 miles south of the capital Lima.

Road travel in the province of Ica has been severely disrupted while the Panamerican highway has also been damaged north of Pisco, causing the suspension of local bus services.

The FCO is not advising against travel to the country. However, it has closed the British Embassy in Lima, where the earthquake was also felt, as a structural check of the building is undertaken.

For emergencies outside of office hours call either the FCO Response Centre in London on 020 7008 1500 or the British Embassy Duty Officer in Peru on +51 1 9751 7123.

The tumble in financial markets across the globe has hit travel firms at a particularly bad time.

On Thursday the value of London's main FTSE 100 index fell more than at any time in the past four-and-a-half years. It slumped 4.1%, or 250 points, to end at 5,859, with sharp losses echoed across Europe and Asia.

Thomas Cook's shares were launched on the London Stock Exchange during June at 333p. They have since lost nearly a quarter of their value and now stand at 259p.

At the end of June, Thomas Cook Group saw its combined businesses reduce their pre-tax seasonal losses by €25.4 million to €293 million for the six months to April 30 2007, and cut their operating loss by €22.9 million to €323.1 million. It also began to talk to staff about cutting up to 2,800 jobs.

Meanwhile, First Choice's shares have fallen from 360p at the beginning of June to 260p yesterday, a fall of around 27%.

In mid June, First Choice Holidays reported its losses rose from £76.5 million to £82.5 million year on year for the six months to April 30, hit by £146 million of acquisitions spend and increased fuel and airport passenger duty costs.

Marriott Hotels is top renovate more than half of its UK hotels at a cost of £120 million.

It's the biggest single investment to date by the hotel chain in its UK four and five-star properties. In total 38 properties are involved in the project, due to be completed by 2008. Work will be carried out in two phases.



Rooms will incorporate four design schemes - country club, urban, international and bespoke. Meeting areas and ballrooms will also get a makeover and in some properties health clubs, restaurants and lobbies will also be revamped.

In London nearly £10 million will be spent on the Marriott Hotel Regent's Park, including work on its exterior with modern wrought iron and glass balconies added. The rooms, restaurant, leisure club, bar and entrance will be upgraded.

The Marriott Dalmahoy Hotel and Country Club has already enjoyed a £3.3 million new look for its rooms and restaurants.

Director of marketing communications Roger Binks said: "The programme is reinforcing Marriott's commitment to its customers."

Yesterday the Guardian reported that passengers at Heathrow were largely sympathetic to the aims of the Camp Against Climate Change protest.

Surprising? Not necessarily. On the same day DEFRA released some research that seems to echo the newspaper's report.

In a survey of public attitudes to the environment, DEFRA asked whether people who fly should bear the cost of the environmental damage that air travel causes.

44 per cent strongly agreed or tended to agree, while
31 per cent strongly disagreed or tended to disagree
When it came to feeling guilty about short haul flights, things were slightly different. Only 17 per cent strongly agreed or tended to agree.

So respondents generally don't feel guilty about flying, but do want to mitigate its effects.

In the light of that, supporting a protest against Heathrow expansion while queueing at Heathrow doesn't seem so strange.

Keeping checking our log of the key protest stories from the mainstream media. The main development this morning is an escalation of tension in the camp after a failed break-in by police.

When the OFT granted Ryanair extra time to comply with instructions to include non-optional extras in advertised prices, it became inevitable that consumers would for a time be faced with an uneven playing field.

Thirteen budget carriers have now complied with the OFT's instructions, and it is only Ryanair and Aer Lingus who still advertise 'misleading' fares.

As I said a few days ago, none of this has come as a shock to the trade (see image; click it for an explanation).

But what about consumers?

The potential for confusion is obvious - especially as some compliant carriers are not emphasising that the price you see is the price you pay.

EasyJet and Monarch's homepages seem to make no mention at all of the changes, and Flybe has only a small text link.

So it's good that OFT consumer protection group head Mike Hanley has made things explicit, warning consumers to 'be wary' of Ryanair prices.

Consumer readers take note: until it becomes compliant (which should be by Febrauary 2007) Ryanair's prices may not be as competitive as they look.

Accused con-man Lou Pearlman had a visit recently at the Orange County jail from Orlando timeshare mogul David Siegel.

Siegel says they're friends and figured all the others had abandoned Pearlman because of his troubles. He said Pearlman insists he's innocent and wasn't running from the law or hiding out in Bali because everyone knew where he was.

Siegel said Pearlman is hoping to negotiate a release from jail on bond.

Pearlman is charged with bank and mail fraud and accused of ripping off millions of dollars from investors.

The introduction of timeshare property developments and the corresponding legislative framework to Dubai could bring back the city’s early days of property market frenzy, according to the world’s largest shared ownership company RCI.


RCI Middle East Managing Director Nick Turner argued the Dubai property market was becoming increasingly competitive and the days of dramatic profit returns for investors were fast disappearing.

Based on the company’s research, the introduction of timeshare property, a form of shared vacation property ownership, to the market in early 2008 would spark the return of the red-hot Dubai property market’s early days, he said.

Shared ownership

“For the first time, investors can incorporate various elements of use within their development including shared ownership,” he said.

Department of Economic Development Deputy Director-General for Executive Affairs Ali Ibrahim said Dubai had created an ideal platform for established destination marketers which had already led to significant international investment from both the tourism and real estate industry.

“In addition, we are also witnessing the birth of the local timeshare market with companies coming forward to set up timeshare projects in Dubai and the UAE,” Turner said.

“Given the current rate of growth of the tourism sector, we expect timeshare to soon become a very important segment of Dubai’s tourism development and contribute, in turn, to the growth of the economy.”

First opportunity

It will be the first opportunity for developers and investors to take advantage of timeshare property in Dubai although it has been available in other Middle East countries, including Egypt and Lebanon, for about 10 years.

About five million people own timeshare property worldwide and Turner said estimates put the potential value of the pending Dubai timeshare property market at $1.2billion by Middle East and international investment.

That would double with the inclusion of a secondary timeshare market - fractional timeshare property which is asset-linked and gives the client part ownership in a property and the possibility for re-sale of their share.

In a market that was escalating out of the reach of ordinary “mum and dad” investors, Turner said timeshare property would open up the market once again.

“Dubai is an appealing destination,” Turner said. “The market has become more competitive with many developers in the UAE and other GCC countries hopping on to the bandwagon.”

Turner said discussions had taken place with other GCC countries and about 30 developers were expected to commence projects incorporating timeshare which could comprise 30 per cent of the Dubai property market within 18 months.

Timeshare property previously carried with it concerns of illegal practices because of loopholes when it was first introduced in Europe and the Department of Economic Development has worked with international exchange companies to draft appropriate legislation.

Law for timeshare

“We are currently in the final stage of drafting the law for timeshare,” Ali Ibrahim said. “The purpose of the legislative framework is to regulate and standardise practices related to the timeshare business model in accordance with international standards.”

Ibrahim said the laws would ensure transparency of contracts.

“Our objective is also to generate awareness of issues related to timeshare practices and to safeguard consumer interests while permitting further growth in Dubai’s fast-growing shared ownership real estate and hospitality sectors,” he said.

Business guideines

“The authorities will, therefore, propose guidelines on the way vendors conduct their business, by examining their marketing methods, off-premises contacts, cancellation procedures, contracts and other issues relating to the industry’s business practices,” he added.

Turner said part of the attraction and the expected popularity of timeshare property to the Dubai market was the changing identity of Dubai investors to people making purchases based on their sentimental feelings towards Dubai.

“If you have to pay Dh3-4 million on a Dubai apartment it’s a higher risk,” he said. “But there’s less risk involved if you’re paying Dh200,000 for timeshare.”

Turner said the company’s research indicated that investors from the GCC would be greatly interested in the Dubai timeshare property because they have an attachment to the area, followed by the United Kingdom and northern Europe where the concept was widely accepted, and finally the Asian market.

The concept of fractional timeshare was expected to be particularly popular with GCC countries. “It’s an emotive purchase,” he said. “They’ve bought into the destination of Dubai.”

Ibrahim reinforced this by saying, “The concept of foreign vacations that include minimal changes in personal lifestyle choices is very attractive and will encourage people to travel abroad more often,” he said.

The regulatory structure and actual regulations will be finalised later this year and will probably involve several more meetings with the private sector before actual implementation.

THE Beacon Island timeshare resort – which closed on July 21 for renovations to the interior – reopened on Saturday afternoon.

General manager Jeff Rosenberg said: “The refurbishment of the interior has gone well.”

He said the Beacon Island had first opened in September, 1972. This was the first time in 35 years that it had closed its doors. However the renovations were necessary, he said, and improvements had been carried out.

The boilers have been modified to increase the supply of hot water and a new private automatic branch exchange has been installed.

The focus of the renovations has been to give a whole new look to the interior of the ground floor and the restaurants.

The atrium has two enormous palms, under which guests can take coffee.

The reopened resort will be officially launched on Monday, August 27.

Some Buffalo Days visitors are getting more than they bargained for from a vacation giveaway held last weekend.

Both IPSCO Place and the Regina Police Service are investigating a prominent contest that promised free trips to Florida and the Bahamas.

Winners say the vacation company uses their credit information to charge hundreds of dollars in hidden fees.

"A significant number of our patrons likely entered this draw," said Mark Allan, president of IPSCO Place. "We're asking everyone who did so to take extra caution."

The contest was a prominent aspect of the Buffalo Days exhibition, with large entrance bins set up at the main entrance. The draw, which attracted thousands of entries, did not mention visitors paying for any portion of the trip.

Police are now investigating a possible unauthorized use of credit card information belonging to a 26-year-old Regina woman. A caller informed the woman she had won the vacation, but then immediately asked for financial information.

"She was then asked to provide her credit card information to secure the vacation," said police spokeswoman Lara Guzik Rostad.

Once this data was given, the woman was told the conversation would now be recorded and that a $600 fee was being charged for the trip. The company also refused to cover the cost of the plane tickets and warned additional fees may be levied once in Florida.

Since the exhibition closed last week, Allan said IPSCO Place has received 10 complaints from visitors about the draw. Organizers were approached by a promotions firm about the contest several weeks before Buffalo Days, he said. IPSCO screens all participants and the draw appeared legitimate.

"Obviously we would never knowingly tarnish our name or the goodwill of our customers," Allan said.

The Buffalo Days contest was run by the resort and timeshare division of the Bluegreen Corporation, a Florida-based Fortune 500 firm. The company has a satisfactory rating with the Better Business Bureau, though it has received 337 complaints since 1966. Calls to the company's Florida-based head office were not returned.

Notably, New Brunswick RCMP investigated Bluegreen after a similar draw drew complaints at the East Coast Women's Expo in February 2006.

According to the Better Business Bureau, vacation giveaways are common practice for timeshare companies. The businesses use the contests so people commit to a vacation, add fees to help cover the costs and then use the trip as a selling tool.

Both IPSCO Place and police are asking Buffalo Days visitors to use caution when handing out personal and banking information over the phone. With more than 188,000 visitors attending Buffalo Days, Guzik Rostad said it is likely a large number of Saskatchewan residents could win "free" vacations.

"Anyone who entered Buffalo Days and entered this should take care."

Group RCI, the global leader in non-hotel leisure accommodations, today announced they would be hosting their first Leisure Real Estate Symposium in India. As reported by the World Travel and Tourism Council (WTTC), India is expected to be the third fastest growing country in the world in travel and tourism demand over the next ten years. That growth potential, coupled with the 19.8% increase in the number of Indians living in India with financial assets of more than US$1 million, vs. 6.5% growth worldwide*, are important factors that lead to the selection of India as the venue for the Group 2007 Leisure Real Estate Symposium: India, Riding the Wave of Growth.

Day one of the event will feature Peter Giamalva, president of NorthCourse Leisure Real Estate Solutions, who will lead an educational forum offering attendees information from the ground up on the development of various leisure real estate models, including: fractionals, destination clubs, condo-hotels and traditional timeshare. In addition, profit models for each of the various areas will be presented and discussed. Closing out the day, will be a panel discussion of the latest information on legal issues of developing in India. The event also provides participants with ample opportunities for networking and the development of strategic business partnerships.

Day two of the event will open with a key note address from Ken May, chairman and chief executive officer of Group RCI, stressing the importance of aligning development plans with the Indian government's strategic objectives of positioning tourism as a national priority and expanding India's competitiveness as a tourist destination.

To be held August 23 to 24, at the Taj Palace Hotel in New Delhi, India, the two-day symposium aims to help owners, developers and operators of leisure real estate learn about the latest leisure real estate models and have the opportunity to be part of lively panel discussions and question and answer sessions with industry experts.

"The market for leisure real estate, continues to grow globally and should gain further momentum over the next few years," said Kenneth May, chairman and chief executive officer of Group RCI. "In particular, India and Asia are showing some of the greatest potential for growth. The success that our clients have had in developing shared ownership leisure properties in India has led us to believe that there is tremendous value in showcasing India as a country, not just as an attractive destination for tourists but also as an opportunity to explore new formats in the leisure real estate space."

Police say a man who worked in the spa at Powhatan Plantation was the ring leader in last week's theft of 18 flatscreen televisions worth up to $30,000 from the timeshare property.

Fully seven people have been implicated in the crime so far. Four of them are in custody at the Virginia Peninsula Regional Jail, and 10 of the televisions have been recovered.

The thefts took place between 11:50 p.m. on Aug. 7 and 8 a.m. the next morning. Three televisions each were taken from six units at the Ironbound Road resort.

Andre Reid, 20, Ashley Oblein, 19, and Demetrius Ammons, 21, have each been charged with six counts of grand larceny and six counts of breaking and entering. Nikitta Booker, 18, has been charged with one count of grand larceny and one count of breaking and entering.

Three other suspects: Thaddous Kelly II, 18, and twin brothers Khristopher Wright, 22, and Kenneth Wright Jr., 22, are still at large. All three are wanted on six counts of grand larceny and six counts of breaking and entering.

Police investigators said that Ammons, who was an employee at the timeshare's spa, organized the theft. All of the suspects knew each other prior to the burglary.

An investigator said that the suspects apparently made two trips to Newport News to transport the 18 televisions, which ranged in size from 27 inches to 42 inches.

Ammons was stopped by police on Route 199 near Brookwood Drive about 2:25 a.m. on Wednesday for speeding and was issued a ticket. The investigator said that was consistent with the timeframe police believe the thefts took place.

Newport News Police are credited with providing a tip that cracked the case.

During an unrelated investigation, Newport News Police spotted a flatscreen television in a Newport News home. They suspected it might be linked to the thefts in James City.

Between Friday and Monday, James City investigators recovered 10 of the 18 Panasonic and LG televisions.

Two televisions were found in a pawn shop in Newport News. Three more televisions that were sold from the pawn shop were found in two homes in York County. The remaining televisions that have been recovered were found at various locations in Newport News.

Booker was arrested on Saturday. Ammons and Oblein were arrested on Sunday. Reid turned himself in at the jail Tuesday.

The investigation continues to determine if any other suspects may have been involved in the thefts.

For many residents in Bonner and Boundary counties, Bonner Community Hospice workers are the people they turn to when they or a loved one are facing the end of life.

Bonner Community Hospice has been working to ease the end of life transition since 1985. Over the years, hundreds of patients, family members and friends have found the support they need through Hospice care and programs.

The concept behind hospice is not new; it has been around since medieval times, when the word referred to a place of refuge or solace for pilgrims or others in need. In modern times, it still refers to a refuge, but a refuge from the fear, loneliness and grief associated with terminal illness and death.

Those who work and volunteers at Bonner Community Hospice utilize a team approach to provide full, comprehensive care for patients and their families. Physicians, nurses, social workers, chaplains, volunteers and others work together to ensure the optimum quality of life when curative measures are no longer considered helpful.


With an emphasis on pain management and palliative care, patients are made as comfortable as possible, while being treated with the care and dignity that they deserve. In Hospice, family members and caregivers have someone to turn to when they need questions answered or just need someone to talk to.

The people who make Hospice programs possible are some of the most courageous people you will ever get the chance to meet. They have experienced difficult and sometimes heart-breaking situations and do not shy away, but instead gather their strength to help the next person, the next family in need.

A couple of years ago, the community of Blanchard lost a loving couple with a passion for golf. Charlie and Gene Blanchard were a fun-loving couple who retired to the Stoneridge Golf Resort community. When Gene became ill, the Blanchards and their family relied on the care and personal touch of Bonner Community Hospice employees and volunteers.

For the third consecutive year, there will be a fundraising golf tournament in memory of the Blanchards that directly benefits other Hospice patients residing in Bonner and Boundary counties. The Stoneridge Golf and Timeshare Fundraiser Mini-Golf Tournament will be held at Stoneridge Resort on Saturday, Sept. 6. This promises to be a fun event with a round of mini-golf at the Stoneridge course, followed by dinner, prizes, karaoke, and dancing. Cost is $35 per person, and this includes green fees, putter and dinner event after the tournament.

To further their fundraising efforts, the Stoneridge Golf and Timeshare team has put together a raffle, with the grand prize being a four-night houseboat vacation on Shuswap Lake, British Columbia. To purchase tickets for $5 each, or five for $20, please call Kathryn at 265-1185.

A soldier's work environment is hot, dusty and dangerous.

Far from home, and a far cry from the natural beauty of Pagosa Springs, Colorado. "If I were coming home from there, it's a place I'd love to spend a week at. You know, just relax," said Dale Chase of Manitou Springs.

Chase's getaway for 12 years is a timeshare condo in Pagosa Springs. It’s space he's now giving up for those putting their lives on the line every day. "I think it'd be really nice for them to have a place to go for vacation, once or twice a year," he said.

Leo Pacheco is making sure the connection happens.

"This is part of rehabilitation that facilitates part of their healing," said the Executive Director of the Beacon Hope Outreach Center. BHOC is matching donated timeshare properties with returning men and women in uniform who'll come home and find all expense paid r-and-r waiting in almost any location.

"The timeshare lets them get down to any resort area, Orlando, Disneyworld,” Pacheco said.

Military families are nominated on the Beacon of Hope website, where others can also sign up to say thanks with a donation. "The amazing thing is everyone who's contacted us says this is our way of giving back to our troops," said Pacheco.

It is a little break, dale said, for those handling a large and dangerous job. "The more troops they get on vacation, it'd be something great for them."

BHOC has taken donations and nominations for the past six weeks. Some soldiers will take their vacations this fall. Most will take theirs next year.

Levitt Corp. will not become a BFC Financial Corp. subsidiary.

The Fort Lauderdale-based homebuilder said it received a notice from BFC Financial Corp. terminating the merger agreement the two companies entered into in January.

The cancellation comes less than a week after Levitt (NYSE: LEV) announced its second quarter loss of $58.1 million, and as the real estate market shudders in South Florida and across the country.

Levitt's board said that, in light of the termination, it will go ahead with a previously announced $200 million Class A common stock rights offering.

BFC said it plans to participate in the offering.

BFC (NYSE: BFF) is controlling shareholder of both Levitt and Fort Lauderdale-based bank holding company BankAtlantic Bancorp (NYSE: BBX).

Levitt has a 31 percent stake in Bluegreen (NYSE: BXG), a Boca Raton-based owner and operator of timeshare resorts.

Levitt shares were down 75 cents, or 20 percent, to $3 in morning trading. The 52-week high was $15.44 on Jan. 31. The 52-week low was $3.62 on Aug. 14.

Almost a year on from closing, Divi Tiara Resort still stands closed up and unsold, with the parent company citing a lack of direct airlift from the US as a major problem.

Mark Steward, vice president of sales and marketing with parent Company Divi Resorts said they have looked at putting more money into the Cayman Brac resort and reopening, but because of a lack of direct airlift between the US and the Brac, they have not done it.

“We continue to evaluate where we are with Divi Tiara,” he said. “But we keep coming back to the fact that monetarily it’s going to be very difficult to make money there with the airlift issue”.

Former Divi Tiara dive shop employee Craig Burhart is renting the dive shop on the Tiara property and running Indepth Watersports from there. “Craig is doing a good job of maintaining the property,” Mr. Steward said. “He’s keeping the beach there clean and the property is generally in good shape.”

The price on Divi Tiara stands between US$9 and $11 million.

Divi Tiara Resort was one of two hotels on Cayman Brac when it closed in September with the loss of 37 jobs. Economic reasons were cited for closure of the 51–room resort, including problems with airlift.

Mr. Steward said that all those who have been interested in buying the resort have found airlift just as difficult an issue.

Although Cayman Airways has jet service from Grand Cayman to Cayman Brac Thursday through Sunday, it is direct air service that is needed from the US, said Mr. Steward. Cayman Airways also services the island a number of times a day from Grand Cayman with its Express service, but travelling aboard the small twin otter planes is not something guests want to do, he said.

Sister Islands MLA Julianna O’Connor–Connolly said direct airlift from the US is absolutely essential for Brac tourism.

The main reason behind Cayman Airways was to get tourists here and it has done this to a large extent for Grand Cayman, she said. However, she said it is now time to shift focus to Cayman Brac where, with a steady schedule of flights directly from the US, and good solid marketing, it could be a success.

Mr. Steward said Tiara is not something they have forgotten about.

“We’re not dead. We’re continuing to try and see what options there are,” he said. “On a daily basis we think of Tiara and what we can do with it.”

Mr. Steward also said that Divi Resorts had approached American Airlines for an AA Eagle 50–seater to come into the Brac twice a week from the US, but they were turned down.

A spokesman at AA, which has serviced Grand Cayman for over 15 years, said they are always looking for new opportunities to serve new destinations, as the markets require. “Nevertheless, we might not be able to cover all the markets at the time,” said a statement.

Mr. Steward said, “What we need is a nice sized plane, and by nice sized I mean a 737, to fly into Cayman Brac and back to Miami three times a week,” adding that this should be a non–stop flight. “You do that, then you open up a huge ability for this property and for other condos and properties to develop,” he said.

Mr. Steward added, “We need three times a week because Americans take short trips not week–long ones. Two times could work if it were a Saturday and Wednesday.”

But VP Commercial with Cayman Airways, John Wrightington said the idea isn’t feasible.

“Put the properties of Cayman Brac together and you don’t have enough room stock capacity to substantiate a 737 airplane”.

He said he could see that they could fill 40 to 50 seats on a 737 (which has about 120 seats) on a Cayman Brac to Miami leg of a flight in the peak season, when the plane would need to be nearly full on such a short flight to be cost efficient.

Mr. Wrightington said that to keep such a route sustainable an airplane the right size would be needed to fly from Miami or Tampa to the Brac.

A 50–seat turbo prop, which can get from Grand Cayman to Miami in an hour and a half, could be the answer. Or a 50–seat or 70–seat jet could work also, he said.

He also noted that the airline needs to increase the amount of capacity for the twin otter flights from Grand Cayman to Cayman Brac.

New pilots will need to be recruited and it is difficult to get pilots for twin otter planes, he said.

It’s also difficult to recruit crews to the Cayman Islands as they perceive it as being expensive, said Mr. Wrightington.

The airline’s goal is to get to eight or nine frequencies a day by November, if new pilots are acquired. Once they get the schedule proposal approved they will begin the recruitment drive, he said.

Meanwhile, at Divi Tiara’s timeshares the renovations are now completed on all 12 units. The timeshare members are having their meals and enjoying the pool facilities at the Brac Reef Beach Resort, said Mr. Steward.

A MOTHER-of-four left out of pocket by a Suffolk travel firm spoke of her anger last night after its directors were acquitted of duping customers into paying for trips that never materialised.

Kevin Tull, 29, Mark Tull, 28, and Matthew Rigden 22, were all cleared by a jury yesterday of conspiracy to defraud following a three-week trial at Ipswich Crown Court.

The men had been directors of Lowestoft-based Fly By Travel Promotions Ltd which invited customers to sign up to a platinum option for a subscription fee of £39.99.

This entitled them to a seven-day holiday including flights and four-star accommodation in Spain, the Canaries or the Balearics.

But the prosecution claimed that out of 1,120 holidaymakers, only 23 received their holidays and the rest were left out of pocket by £140,000.

Last night Vanda Bennett, 43, who lost £160 through the scheme and was a witness in the trial, told of her anger at the verdict.

“I'm disappointed and I'm sure a lot of other people will be. It doesn't seem right,” she said.

“It's still negligent behaviour to run a business so badly that people are out of pocket. I'm angry there is no regulation in place that controls this sort of trade.

“It's frightening they could become directors again. I think there is something wrong if people are allowed to do this and start up again the next day.”

Mrs Bennett, an Oxford University student from Stony Stratford, Milton Keynes, said she had signed up to Fly By's offer on behalf of her two teenage sons, her husband and herself in August 2003 after attending a presentation on timeshare properties.

The student said she later received a letter asking her to choose four dates in which her family could travel.

But after the initial correspondence, the mother said she heard nothing more from the company for a year.

“All the dates started to go past and nothing happened,” she said.

“I started hassling them saying we were approaching the final date we gave them and have heard nothing at all.”

Mrs Bennett said eventually in late October 2004 the family was contacted by Fly By saying a holiday to Tenerife was available at the beginning of November.

But just five days before they were due to fly, the family was told by the company the holiday could not go ahead.

“It was a huge disappointment. We were all excited,” said Mrs Bennett.

“We had to cancel a concert they were looking forward to. It's wicked to promise someone something and then cancel it, especially with kids.

“After that, I wrote an irate letter to them because I felt we were being ripped off. That was the last I heard. We still haven't had our holiday.”

Kevin Tull, of Walmer Road, Lowestoft, and fellow directors Mark Tull, of Henley-in-Arden, West Midlands, and Rigden, of Windsor Road, Lowestoft, have always denied the charges against them.

During the trial, Kevin Tull told the jury he wanted to “get as many people away on holidays as possible”.

Defence barristers told the court the firm had been “bogged” down by a “large degree of incompetence” but had not defrauded customers.

The court was told the firm ran into trouble when it was unable to book cheap tickets with airlines because it was not bonded.

After the jury returned its verdict yesterday, Judge Neil McKittrick praised the efforts of Suffolk trading standards which investigated the case.

He said: “I would like to commend the preparation of the case in terms of the work done by many people in trading standards who have produced a case which I'm told is about 12,000 pages of work.

“It has been a detailed investigation and a carefully prepared case.”

Mrs Bennett said last night she would not take civil action to recover the money she had lost.

“I just think we'll write the money off and put it down to experience,” she said.

“There is no such thing as a free lunch is all I would say.”

As elected officials in Fort Erie and Niagara Falls urge the province to secure the long-term future of their respective gaming sites and racetrack, area MPP Kim Craitor encourages the two communities to plead their case at Queen's Park with one voice.

"We need to get together and take our concerns to Queen's Park as one powerful, regional team," said Craitor, the day after proponents of a $300-million plan to rejuvenate the Fort Erie Race Track called on the provincial government for a commitment by month's end to ensure the town hosts live racing next year.

Slot revenue, profit margins and patrons to the track are down significantly due to issues such as increased competition from gambling parlours on both sides of the border.

To make matters worse, the Ontario Racing Commission has accelerated the deadline for horsemen to file their race dates and times for the 2008 season to Aug. 31, from October in previous years.

Mayor Doug Martin said the amount of money being generated for the horsemen is not enough to provide the number of dates necessary to make the facility attractive to horsemen for next season.

He fears the town's racing population could relocate to competing sites due to decreasing purse monies and race dates if the situation doesn't change quickly.

"That would be an unacceptable alternative," said Martin.

"The absence of live racing would be an absolute disaster for the Town of Fort Erie."

Craitor has also fielded requests from Niagara Falls city councillors recently, who are putting the heat on provincial candidates - with an election looming - to secure the long-term future of Casino Niagara.

The government is being pressured by both municipalities to reach a long-term lease agreement extension for the track and Casino Niagara, between the Ontario Lottery and Gaming corporation and the respective owners of the two sites.

Canadian Niagara Hotels owns the Casino Niagara building, while the Fort Erie Race Track is owned by Nordic gaming, which is a wholly-owned subsidiary of El-Ad Group (Canada) Inc.

The OLG is the provincial agency that manages the racetrack slots in Fort Erie and the casinos in Niagara Falls.

"It would be advantageous for the town and the city to get together on a political level and have discussions with the province and say, 'Look, here is what we want, here is what we are proposing not just for the viability of our municipalities, but also for the betterment of the Niagara region as a whole,'" said Craitor.

Martin said he is prepared to "meet with anyone, anywhere, anytime, as long as we can come up with a solution.

"The problem we're seeing is that revenues have declined to the point that the cost-sharing currently in place is not sufficient enough for the owner's to pay the expenses to maintain the facility," he said.

"The horsemen are only taking back $5 or $6 million, but the province is still getting their $60 million."

In 2001, purses in Fort Erie came in at $20.1 million, while so far this year, the figures stand at $10.3 million, according to a recent report by The Horsemen's Benevolent and Protective Association of Ontario. The projected number for 2008 is $8.8 million. Live racing dates have dropped to 84, from 108 back in 2001.

The town and its Economic Development and Tourism Corporation have met on different occasions with representatives from Nordic gaming and El-Ad, the OLG and members of the provincial government.

Together, they discussed a proposal to build a 350-room hotel, a massive entertainment complex and a 2,500-unit timeshare/condo development on the existing racetrack property.

Project proponents have argued the company needs to change the formula for how revenues and expenses from the facility are divided before the proposal could really start to take momentum.

Jim Thibert, general manager of the EDTC, said the revenue-sharing model currently in place divides revenue between the province, which receives 70 per cent, the horsemen, which receives 10 per cent, the landowner and track, which receives 10 per cent and the town, which receives 3.5 per cent.

The Fort Erie Race Track, one of two thoroughbred horse racetracks in Ontario, opened in 1897.

The opening of provincially owned slots operations at 16 racetracks in Ontario in the late 1990s breathed new life - and injected new revenue - into the financially unstable horse-racing industry.

Jim Cronin, director of public affairs for OLG, said the 70 per cent share of revenue the province receives from slots at the facility in town is somewhat deceiving.

"Since we opened the slot facility in Fort Erie back in September 1999, over $344 million in economic benefits have gone back into the community, including the direct slot payments to the racetrack, horse people and the municipal government," he said.

Cronin said during that time frame, the OLG has paid $109-million in salaries and benefits at the site.

"A big chunk of that 70 per cent goes into operating costs. And since the slots opened in Fort Erie, the town has received over $27 million as part of the revenue-sharing model."

Cronin said the revenue-sharing model developed by the provincial government between the corporation, slots facilities and the race-horsing industry across Ontario has been drafted with a "one-size fits-all" policy to maintain a level of consistency.

Conservative MPP candidate Bart Maves questions what he called a "blanket and cookie-cutter" approach.

He said the government and the OLG need to be more flexible and "do whatever it can to make sure the Fort Erie Race Track remains open and successful.

"There is no doubt in my mind that Fort Erie is in a difficult position - they have suffered a devastating decline in revenue and every business and location is different," said Maves. "The government obviously fails to recognize that."

As Grand Bahamians anxiously await the predicted October completion of the Royal Oasis deal, the Bahamas Hotel Catering and Allied Workers Union (BHCAWU) is once again speaking out for ex-workers of that resort to get monies which they say are owed to them.

The supplication was made yesterday by Lionel Morley BHCAWU second vice president on behalf of the workers who claimed they received nothing when the resort closed down.

Pointing out that the union understands that the present administration "inherited" the situation left in place by the former government as it relates to the Royal Oasis deal, Morley says there is no excuse for them to "turn the other way."

The former government, he said, was "derelict" in their duties to negotiate in the best interest of the people.

"It was quite irresponsible for the government then to think that once they have taken care of the lion's share of the employees, the rest of the employees' concerns would just go away or the situation would just die a slow death," he said, adding that the workers are not alone in their struggle because the union will fight for them to the very end.

"We will seek whatever recourse or measures there are necessary to ensure that this matter is resolved amicably and reasonably so that all parties concerned can be satisfied."

The resort was shut down in September 2004 after twin hurricanes struck the island. The closure displaced some 1,300 employees.

In May 2005, government paid out $5 million of the $6.12 million owed in redundancy pay to 900 displaced Royal Oasis workers eight months following the resort's closure.

Those workers signed a deed of agreement designed by the Ministry of Labour and the remaining $1.12 million, which according to government needed Parliament approval, was promised in "short order."

A reported 650 workers whose total payout package amounted to under $11,000 or less were paid in full while those entitled to more than $11,000 received 50 percent of their money.

A total of 900 displaced workers took the package, but others who disagreed with the amount purported to be owed to them opted to fight for what they rightly deserved.

Not long afterwards, the resort property was placed on the market and, following several expressed interests and two serious bidders, government expects closure of a deal in October.

The Harcourt Group has stated that it will not be responsible for any past debts accrued by the prior owners or other companies previously invol-ved with the Royal Oasis.

Harcourt won the bid back in April, beating out newcomers World Investment Holdings to purchase the 427-acre property which includes the towers, country club, timeshare units and two golf courses.

Morley explained that he and the union would like to see the new government review the circumstances under which the first set of workers were paid and for them to make all the necessary adjustments as appropriate.

Nearly two weeks ago Minister of State in the Ministry of Finance Zhivargo Laing revealed that there was no arrangement left in place by the previous administration concerning the payment of the Royal Oasis workers, but said that payment to the former workers for the remaining $1.12 million, "is under consideration, but that can only flow in relation to the closing of this deal."

Plans to create one of the largest casinos in the Caribbean has gotten a $65 million infusion that will be used to revive a bankrupt resort along this island’s famous Eagle Beach. The funding for KL Holding Co.’s vision comes via the issuance of senior secured notes to institutional investors. KL is affiliated with the Gillmann Group, owned by Las Vegas gaming mogul Fred Gillmann, who has been personally involved in securing the Aruba assets.
Winning control of the complex required KL Holding to first prevail at an auction held last month to purchase the assets of Playa Blanca, the former owners of La Cabana Villas Timeshare Resort and the Royal Cabana Casino. The $50.3 million bid then led to the notes being issued to pay for acquisition, renovation and marketing of the complex. KL ultimately hopes to sell 15,000 timeshare units as a result of upgrades to the properties.

La Cabana includes a 362-room timeshare and hotel consisting of two five-story buildings and a pair of four-story buildings, as well as a shuttered 48,000-sf casino and a restaurant currently operating as a temporary gaming center. The latter portion will soon revert to restaurant space, while the remainder will be restored to create a state-of-the-art gaming, entertainment and showroom facility. The value-add strategy, which envisions the resort becoming a regional leader for casino action, will include an overhaul of the condominiums. According to KL, the units will be recast in a “Caribbean contemporary” design and will have American-style amenities upon completion.

The first of the so-called ABC islands off the Venezuelan coast, Aruba has emerged as a leading tourist destination during the past decade, and the timeshare option has grown in popularity. Besides the island’s popularity itself, the buyers note that Eagle Beach has received a consistent ranking as one of the top 10 beaches in the world.
La Cabana Villas also garners international cache, and has been a popular destination for US tourists, but company officials acknowledge the need for changes to compete with other resorts in the country. In the past two years, more than a dozen high-profile resorts on the island have announced renovation or expansion programs, plans backed by such operators as Holiday Inn, Hyatt Regency Marriott and Wyndham. The total amount being invested approaches $200 million. Aruba’s government, meanwhile, has pledged more than $230 million to modernize its airport and other infrastructure on the island, which is about 75 square miles in area.

As you pack your bags and plot your escape from the miserable British "summer" we're having this year: the security - long or short term - of your personal travel data is probably the last thing on your mind. And thanks to a much trumpeted deal between the EU and the US, even if it was a consideration in your travel plans, it is now out of your hands.

Last month, a settlement was reached in the long-running dispute between the US and the EU over sharing financial and travel data. The decision has generally been presented as a success for the EU in moderating the US's demands for data. A closer look at the situation with respect to travel data tells a different story.

The data in question takes the form of what are known as "PNRs" – the passenger name records that are generated when a travel booking (flight, hotel, car rental) is made. The exact information contained in these varies, but it typically includes identifying information about both the traveller and the person or agency who bought the ticket and the itinerary. But they may contain a considerable amount of additional information, such as who in a company is allowed which perks, and whether or not a traveller is authorised to use the company limo.

Privacy advocates, in particular Edward Hasbrouck, a San Francisco-based expert on the travel industry, have maintained for a long time that travel data, more than many other types of data, is particularly sensitive. Your travel records can reveal who you travel with and how often, how many beds you sleep in (and therefore your sexuality), who buys your travel tickets, and sometimes even, through the special meals you order, your medical condition or religion. A government couldn't ask these things directly without creating a public outcry. But, Hasbrouck also notes, PNRs may reveal considerable information about third parties, such as the company or agency employees who buy your ticket.

The sell-out
Despite the EU's data protection laws, which require data processors to show us our files and give us the chance to issue corrections, it can be very difficult to get a look at your PNR data. Even if you do, it can be difficult to understand. Last year, I tested this out by asking US Airways and Galileo, the customer reservations service it used to handle data, for a look at my PNR. Galileo responded promptly by post with a copy of the information. US Airways itself, however, refused to show anything beyond a simple receipt for the ticket and said: "Because of security concerns the PNR is a company document not released to passengers." The company ignored further communications. The third parties whose data is included in such records are even less likely to get anywhere.

The agreement announced last week will do nothing to change this situation.

"The recent agreement is a complete con," says Gus Hosein, a Fellow at the London School of Economics and of Privacy International. Despite negotiators' claims that they had protected the rights of Europeans by reducing the number of data fields demanded from 34 to 19, "what the Americans and Europeans cunningly did is dupe the entire population by taking the list of 34, dropping two, and then taking less lines on the page. They merged items on one line".

Beyond that, the agreement allows the US to use the data for purposes other than fighting terrorism and lets the US keep the data for at least seven years, possibly 15. "It could even go beyond that." It was, he says, "a failure of the entire process. Europeans have no clue how to negotiate with Americans."

Lock, stock and two smoking passports
But in future such negotiations may not even take place. More sinister for the long term, says Hasbrouck, are provisions of the Open Skies treaty that have been largely overlooked in the rush to praise the treaty's potential for opening up better competition between US and European airlines. Hasbrouck points in particular to article 8, which requires signatories to the treaty to comply with the "recommended practices" of the International Civil Aviation Organisation.

Because international treaties take precedence over national law, this article effectively transfers considerable authority to the ICAO, an unelected body with only limited input from outside the travel industry and law enforcement. The ICAO then becomes the arbiter of such decisions as requiring RFID or biometrics in passports and other travel documents, or specifying what data is encapsulated via RFID and how widely it's shared.

Under such a system there can be no public debate and any negotiating that's done will be through the ICAO, which in the past has generally been thought to be a conduit for policies that the US wants but can't necessarily get through Congress. Previous attempts at this type of data gathering, "Total Information Awareness" and the proposed airline security system CAPPS-II, met with public opposition and were cancelled, at least in name.

Yet, says Hosein: "The Department of Homeland Security has managed very quietly, through the back channels, to take the system as originally designed for cargo and apply it to people. We have no idea how effective it will be – and the EU just became complicit with it."

You look a bit dodgy to us...
We know, he says, that the US is not just using the data to match prospective travellers against a list of "bad people". Instead, they are "taking the data and running algorithms on it. They're not saying which algorithms. They decide who is a high-risk passenger and who isn't. What they do once they've processed the data is create a profile. You can't access, affect, or view your profile whether you're a citizen or not. You have no influence in deciding whether or not you are a threat".

There is no question that this is not the data protection regime that Europeans signed up for – running those algorithms would be illegal in Europe. Why the EU has been so willing to abrogate its own policies is unclear. Hosein believes it's in response to promises to extend the visa waiver programme, but that any promises the US makes to do so are unlikely to bear fruit.

"Congress likes to look tough on borders and foreigners," he says.

The thing is that data protection is like the starship Heart of Gold ("Be the envy of other major governments"). If the US collects all this PNR data... well, why shouldn't the EU have it, too? And once the data is there, why not use it for general law enforcement? The overall result is a massive expansion in government profiling of all of us – and a significant diminution of our ability to do anything about it.

The Florida Coalition for Preservation was glad to hear that the developer of the Briny Breezes, Fla., redevelopment plan, Boca Raton-based Ocean Land Investments, has pulled out of the multimillion dollar deal to jam the tiny, hurricane-prone barrier-island community with multiple high-rise towers housing 900 condominium units, 300 timeshare units, a 349-room luxury hotel, restaurants, retail shops, parking facilities and a yacht marina.

"This encouraging news clearly shows that irresponsible dense overdevelopment on storm-prone barrier islands that overstresses infrastructure is unacceptable," said Coalition Chairman Tom Evans. "Any responsible redevelopment at Briny Breezes must be compatible with the surrounding community. Every independent analysis showed that, from the very beginning, this proposal was doomed because it failed to pass that fundamental test."

Evans, a former Congressman who authored the Coastal Barrier Resources Act of 1982, noted that the Coalition, established to defend Florida's barrier islands from falling victim to irresponsible development, supports expansion of the Act to prevent taxpayers from subsidizing new construction on barrier islands that dangerously stresses infrastructure.

"Our mission is not over. If we remain diligent, this initial victory should set a positive precedent for future developments in Florida," Evans added, noting that the end of the deal comes a month after the Florida Department of Community Affairs issued a report critical of the massive, high-density plan to redevelop Briny Breezes.

"We support redeveloping Briny Breezes and stand ready to work with the people of Briny Breezes to help develop a plan that is compatible with the surrounding communities and does not overly stress the area's infrastructure," Evans said. "We believe Briny Breezes will eventually be redeveloped. When that happens, we hope the future developer learns from the mistakes made during this episode and works with the surrounding communities and the Coalition from the beginning to craft a responsible and innovative plan that would make everyone proud. Perhaps, even the present developers will want to start again, from the beginning, with a new proposal."