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[Cebu] Hotels report slowdown

Wednesday, October 15, 2008 [ sunstar.com.ph ]


LOCAL hoteliers are looking forward to the 6th United Nations World Tourism Organization (UNWTO) International Tourism Forum in Cebu next week when more than 200 foreign delegates are expected to avail of their rooms and services.


Marco Protacio, Hotel, Resort and Restaurant Association of Cebu (HRRAC) president, said the hotel industry in Cebu is counting on international events such as the UNWTO forum, as well as the holidays, to make up for the “slight” decline in revenues.


This decline, he said, can be blamed on the financial crisis in the United States.


“The Cebu hotel industry is affected by it, but not so much (with) hotel occupancy. We lost the upper crust of the market in the form of international business travelers who spend for higher room rates,” he told reporters at the sidelines of the grand launching of SM City Cebu Northwing last week.


Protacio, also Waterfront area general manager for Visayas and Mindanao, said hotels get domestic travelers but they (domestic guests) do not avail themselves of higher room rates that are preferred by international business travelers.


“(This is why) we have become conservative in our projections for 2008. But it’s not so bad. I believe that this is only temporary but for how long, I do not know. People will always travel, whether for business or leisure. We are hoping that one day, they will come back,” he said.


Common problem


Protacio, who recently attended a board meeting for hotel general managers, said other hotels in Cebu share the same experience in the light of the US financial crunch.


The US is the second biggest tourist market in the country, accounting for 19 percent of total inbound traffic, according to the Department of Tourism (DOT).


In a statement, the DOT said the number of Americans traveling to the Philippines will slow down in the second half of this year.


The forecast prompted local hoteliers to develop new markets such as Russia, India and some countries in Europe.


The DOT has identified Russia and France as top market sources of high-spending visitors and India as a fast emerging market.


While the local food industry is not affected by the US crisis, its stakeholders continue to expand their markets to include Moscow and Poland, which are considered “promising” areas for food exports.


“Food is still something people can afford to buy. We are not so worried about what is happening, unless the whole world is affected and a depression is looming,” said Justin Uy of Profood International Corp. (NRC)

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