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Resort developer blames EU crisis for sales drop

Posted on June 11, 2012 11:43:20 PM [ BusinessWorld Online ]

RESORT DEVELOPER Boulevard Holdings, Inc. saw sales last month drop by more than a fifth as the euro zone crisis reportedly hurt tourist arrivals, a disclosure to the local bourse yesterday showed.

The latest performance dragged down full-year results, leaving Boulevard Holdings to close its fiscal year ending in May with a 12% drop in sales.

“Our Fridays Boracay subsidiary has been affected by less tourist arrivals from Europe due to the crisis. In particular, our bellwether German clients have decreased,” Boulevard Holdings said, referring to its hotel unit, Friday’s Holdings, Inc., which operates in Boracay Island, Aklan.

For May 1 to 31, the company’s consolidated sales of products and services declined by 23% to P8.66 million a year ago.

The company, which also operates a branch in Puerto Galera, thus saw sales fall by 12% to P129.40 million for the full fiscal year ending in May.

The company’s latest financial statement was not immediately available.

Economies that form the single-currency European Union (EU) have been in the spotlight lately, amid ongoing debt woes in Portugal, Italy, Greece, and Spain.

Nevertheless, Boulevard Holdings expects an improvement in next year’s sales, banking on the traditional resilience of the local tourism sector.

“We view this as temporary, and we hope to recover next fiscal year. As all research has empirically shown, tourism always bounces back,” the company said.

Boulevard Holdings told BusinessWorld last February that it planned to further expand its Fridays hotel brand to locations such as Palawan. It also plans to launch a hotel in Cebu in line with targets of establishing of one Fridays boutique hotel per year until 2016.

Boulevard Holdings, for instance, has been scouting for foreign and local partners to develop its 3,000-hectare Puerto Azul resort in Cavite province.

The company failed to close a separate long-term venture for an existing golf course and hotel spa site within Puerto Azul last November, when Korean-based Resom Resort Co. Ltd. withdrew from a possible partnership, preferring to invest in a Subic hotel resort instead.

Boulevard Holdings shares rallied by 4.17% to 15 centavos yesterday from 14 centavos at its previous close. -- Franz Jonathan G. de la Fuente
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