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Saturday, April 08, 2006
Room shortage in Cebu will remain a dilemma
The “room situation” in Cebu will continue to be tight, but the strong demand will encourage expansion of the industry, said Tourism Secretary Joseph “Ace” Durano in an interview this week.
“Creating the demand is a lot easier than catching up with the supply because naturally, it takes two years from groundbreaking to opening (a hotel). So it will continue to be tight,” he said.
But the support of the private sector is a good sign of the supply chain that is “stretching along with the demand”.
“I don’t want to preempt a lot of new investments. But there will be a lot of new announcements regarding new investments in the hotel and accommodation industry,” he said.
He said the ongoing negotiation between the Philippine National Bank, which now owns Coral Reef, and a foreign investor for a 1,000-room integrated resort, is a development to watch out for.
“The private sector is doing its share to stretch its existing capacity. For example, in a few months time, Plantation Bay was able to open 20 new rooms. I feel that the supply chain is more flexible than we imagine,” he said.
The tourism industry injected over P150 billion into the country’s economy last year, he said, adding that the sector is expected to earn P200 billion to P250 billion this year.
“It’s not the collection of the government but it’s tourists’ money spent on shopping, food and beverage and other services like spas,” he said.
He added that direct employment in the industry last year reached 887,000 and 2.2 million including indirect employment.
“That’s why tourism is the most efficient generator of employment because for every foreign tourist, one job is created. If arrivals increase by 14 percent this year, although we hope for more, it will also increase employment in the country,” he said.
He added the Department of Tourism (DOT) continues to promote destinations that are “underuti-lized,” like Davao.
“Davao has an airport like Cebu and they have rooms but are underutilized. So we’re pushing Davao. In Cebu, it’s really just a matter of sustaining the demand and helping the private sector facilitate (and hasten the entry of) new investments,” he said.
While the DOT central office will concentrate on international promotions, Durano said its regional offices are tasked to work with local government units for domestic promotions.
Some P48 million for domestic promotion given by the Congress have already allocated to the regional offices to promote tourism areas in their areas, he said. (ALC)
For Bisaya stories from Cebu. Click here. (April 8, 2006 issue)
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