Although fewer tourists were visiting North Korea in late 2017, Sandeep Sangha, 36, from Melbourne, Australia, made the trip in November and said it was a "fascinating" experience. Photo courtesy Sandeep Sangha
Although fewer tourists were visiting North Korea in late 2017, Sandeep Sangha, 36, from Melbourne, Australia, made the trip in November and said it was a "fascinating" experience. Photo courtesy SandShow more

North Korea tourism operators see numbers nosedive amid growing tensions



One of the leading organisers of tours to North Korea says business has plummeted by at least half since June amid tensions between the US and the rogue state.

Simon Cockerell, general manager of Beijing-based Koryo Tours, said the slump in visitors to the Democratic People's Republic of Korea compared to last year was because of three factors.

"The first half of this year numbers were strong but from around June, with the increase in tensions, the September ban on US travellers and the Otto Warmbier case, there has been at least a 50 per cent drop in numbers, and that is a conservative estimate."

Tensions have been building up since US president Donald Trump took office in January, with the former businessman vocal in his criticism of North Korea's nuclear programme and Pyongyang stepping up the frequency of its missile and nuclear tests. Mr Trump escalated his attacks during his debut address to the United Nations in September, calling out the "depraved regime" of Kim Jong-un for human rights abuses and describing the North Korean leader as a "Rocket Man" who was "on a suicide mission for himself".

Mr Trump also referred to Warmbier, an American university student who visited North Korea in January 2016. Warmbier had been out drinking in Pyongyang with other members of his tour group, customers of Young Pioneer Tours, a North Korea travel specialist based in Xian, China, when early on New Year's Day he was caught trying to steal a propaganda banner from a restricted area of the hotel he was staying in.

The 21-year-old was arrested and eventually sentenced to 15 years' imprisonment with hard labour for trying to take the banner. He was released in June after 17 months when North Korean officials said he had fallen into a coma after contracting botulism and taking a sleeping pill. Warmbier died shortly after arriving back on US soil. In a post mortem US doctors could not rule out botulism as cause of death.

On September 1 the US state department imposed a ban on citizens travelling to North Korea.

Mr Cockerell, a Briton who has made 168 trips to North Korea, said 20 per cent of Koryo's customers were from America.

Dylan Harris, founder of Lupine Travel, a North Korea travel specialist  based in England, said his company has also seen a drop in business this year. "Particularly the second half of the year, we have seen large numbers of people cancelling trips," he said. He blamed the increased tensions, the Warmbier case and travel warnings issued by the British Foreign Office.

The US ban on travel to North Korea had a high-profile consequence this week as former NBA star Dennis Rodman was stopped from making a sixth visit there. Rodman, who has met North Korea's leader twice, said Mr Trump should appoint him as a peace envoy to the country. "I've been trying to tell Donald since day one: 'Come talk to me, man. I'll tell you what the Marshal wants more than anything. It's not even that much,'" Rodman told The Guardian newspaper.

Whether Rodman will be given a role as freelance US diplomat remains to be seen, but on Tuesday the secretary of state Rex Tillerson signalled a shift in policy towards North Korea. He said the US was ready to start exploratory talks "without preconditions", but only after a "period of quiet" where Pyongyang refrained from nuclear or missile tests.

The secretary of state also made clear that the goal of such talks would be full nuclear disarmament, arguing that containment was not an option as North Korea would try to earn much-needed money by selling its nuclear weapons on the black market.

Despite the tensions, tourists continue to visit North Korea. Sandeep Sangha, 36, from Melbourne, Australia, went on a six-day tour in mid November. "We found the trip fascinating," he said. "The part that surprised me the most was the people. With the exception of the devotion to their leader, these people were all much like us".

Scot McCulloch, 27, from Scotland, who also visited in mid November, said it was one of the best places he had been to and would go back "in a heartbeat".

"Being there blew my mind," he said. "No one realises the beauty of this country, and it has such a sad history, which it is still suffering from."

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

4) The campaign uses the hashtag  #donate_hope

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

Ruwais timeline

1971 Abu Dhabi National Oil Company established

1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants

1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed

1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.  

1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex

2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea

2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd

2014 Ruwais 261-outlet shopping mall opens

2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies

2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export

2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.

2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery 

2018 NMC Healthcare selected to manage operations of Ruwais Hospital

2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13

Source: The National

About Tenderd

Started: May 2018

Founder: Arjun Mohan

Based: Dubai

Size: 23 employees 

Funding: Raised $5.8m in a seed fund round in December 2018. Backers include Y Combinator, Beco Capital, Venturesouq, Paul Graham, Peter Thiel, Paul Buchheit, Justin Mateen, Matt Mickiewicz, SOMA, Dynamo and Global Founders Capital

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

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The Laughing Apple

Yusuf/Cat Stevens

(Verve Decca Crossover)

 

 

THE SPECS

Engine: 2.0-litre four-cylinder turbo

Transmission: eight-speed automatic

Power: 258hp at 5,000-6,500rpm

Torque: 400Nm from 1,550-4,400rpm

Fuel economy, combined: 6.4L/100km

Price, base: from D215,000 (Dh230,000 as tested)

On sale: now

COMPANY%20PROFILE
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What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

WRESTLING HIGHLIGHTS
Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

First Person
Richard Flanagan
Chatto & Windus 

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