Cowboys pull skiers down Main Street in Steamboat Springs.
Cowboys pull skiers down Main Street in Steamboat Springs.
Cowboys pull skiers down Main Street in Steamboat Springs.
Cowboys pull skiers down Main Street in Steamboat Springs.

Ski trade taps Obama wish list


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ASPEN, COLORADO // It is not just the airlines and the automakers lining up with their hands out. As Barack Obama, the president-elect, works on fixing the ailing US economy, the ski industry has also put forward its wish list. Their highest priority: an economic stimulus package that gets people taking holidays. They also hope Mr Obama's planned spending on the nation's infrastructure reaches the Rocky Mountain region, and they want to see comprehensive immigration reform and concrete efforts to fight global warming and protect the nation's forests. Their demands may sound frivolous in a time of widespread home foreclosures and rising unemployment, but the US$4 billion (Dh14.7bn) ski industry employs tens of thousands of people and keeps many local governments afloat. Similar wish lists have been put forward by beach regions in Florida, another state that depends on tourism. "Recreation is critical to our economy," said Jennifer Rudolf, a spokesman for the marketing and policy group Colorado Ski Country USA. Recently, board members from the Colorado Association of Ski Towns (CAST), which groups 28 towns in the Rocky Mountain west, gathered to prioritise the industry's top issues in the coming year. "Getting our economy going again was on top of the list," said Paul Strong, the organisation's executive director. Just like places in the US Midwest where whole towns are employed by the auto industry, most CAST economies are almost entirely dependent on skiing and other mountain tourism. Steamboat Springs, for example, gets more than 50 per cent of its tax revenue from sales tax, according to Mr Strong. So if tourism takes a dive during an extended recession, the town government there will struggle to fund basic services, such as public transport, schools and hospitals. "This is something we watch very closely," he said. Mr Obama has said he plans to invest billions in the nation's infrastructure to jumpstart the economy. Officials in ski areas said they hope some of that money will come their way. "Transportation is terribly important for us," said Rod Slifer, a former mayor of Vail. "Interstate [Highway] 70 is the spine that services the ski areas, but investment in smaller roads and tunnels through the mountains will also be a great benefit out here." The ski industry is also watching how the Obama administration handles immigration reform, after efforts by the Bush administration to fix the nation's broken system disintegrated in Congress last year. Ski towns and resorts employ large numbers of seasonal workers, many of them foreigners who come to the US on the H2B temporary employment visa. The ski industry got stung in 2008 by a change in federal immigration policy that put a cap on the number of individuals allowed to receive the H2B visa. In the past, returnees to a job would automatically receive a fresh H2B visa, but the new policy meant that nobody got this exemption. Many found reprieve when the economy turned south, hiring Americans who had been laid off. But ski resort officials said there needs to be a permanent solution to the issue. "This problem will return when the economy improves," Mr Strong said. What has the industry most concerned for the long term, however, is global warming. A study out this week by the University of Colorado at Boulder found that the snow pack on Aspen Mountain will retreat more than 200 metres up the slopes within the coming two decades and shorten the ski season by almost a week. The study calculates ski resorts in the Rockies may have to treble their snow-making capacity in the coming decades. "I'm hoping the new president takes the 30,000-foot view," Chris Diamond, the head of Steamboat Springs resort told the Denver Post. "We have got to fix this or we are all done." gpeters@thenational.ae

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Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

RESULT

Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')

SHAITTAN
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