Cebu hotel remain attractive
By: K.J.R. Liu
Business World December 11,2008
CEBU CITY’S hotel and leisure sector is expected to benefit from an expected surge in foreign tourists following the terror attack in Mumbai and political chaos in Thailand, a property consultant said.
And while the slowing global economy might have made other countries less attractive to tourists, the country’s oldest city has yet to feel the effects of the crisis.
“The current slowdown in global tourist travel as a result of the worldwide economic recession has been acknowledged by market commentators, but it’s tough to spot evidence of a slowdown in Cebu,” CB Richard Ellis (CBRE) Philippine General Manager Trent Frankum said.
Meanwhile, CBRE Chairman Rick Santos said Cebu is is well positioned for growth, with hotels at their maximum capacity and the right infrastructure in place.
“The Philippines should continue to firm up its position as a major tourist destination in Southeast Asia,” he added.
The Tourism department has cut its foreign tourist arrival target this year to 3.1 million from 3.4 million, or flat growth because of the global slowdown.
Despite the change in outlook, Mr. Santos said the country’s tourist spots would likely benefit from the recent chaos in Thailand and India. “Recent developments in Thailand and India are anticipated to give Philippine tourism that much needed extra push to draw in more tourists for the winter season,” he said.
“What is important is to make sure that if they do come to the country, they are provided with ease of access via world-class airport facilities to their destinations and adequate hotel accommodations all year round,” he added.
Late last month, armed men stormed different establishments, including high-end hotels, in Mumbai, India’s financial district. The attack, said to be the country’s deadliest terrorist act in 15 years, left about 200 persons, including tourists from Europe and North America, dead.
Meanwhile, Thai protesters seeking to oust their prime minister shut down Bangkok’s international airport terminal last month, forcing officials to cancel all flights.
Mr. Santos said the construction of new airport facilities increasing capacity would encourage travelers to visit local tourist sites. This has also encouraged investments in the hotel and resort industry in Palawan, Bohol, Cebu and Davao.
Ramon Jose E. Aguirre, Colliers International research manager, said he expected the country’s tourism industry to grow this quarter. “The fourth quarter is usually the peak season for the hotel and leisure sector,” he pointed out. He also noted that local leisure expenses are cheaper than Hong Kong and Singapore.
