PROPERTY-RESEARCH firm Colliers International Philippines is encouraging developers with massive landbank in Mactan and Mandaue City to pursue resort-oriented projects.
In its latest study, Colliers pointed out that “developing more leisure estates is a practical route for local and national developers trying to capture Cebu’s booming tourism sector.” Colliers advised that potential investors with vast experience in developing integrated communities and are willing to enter Cebu but lack substantial land to develop may firm up partnerships with local developers to strategically expand their landbank in Cebu.
Colliers cited the completion of the Terminal 2 (T2) of Mactan-Cebu International Airport (MCIA) as an added boost to Cebu’s attractiveness as a tourist destination.
T2’s opening also came following the temporary closure of the popular Boracay Island.
City hotels and residential condominiums being offered to the short-lease market are seen to benefit from the expected rise in tourist arrivals. The booming tourism sector is also expected to spill growth opportunities over to other sectors.
Moreover, T2’s expansion should help sustain Cebu’s hotel occupancy between 70 and 75 percent over the next 12 to 36 months.
To capture the demand, Colliers suggested that Cebu build more hotel rooms to house these incoming guests who stay for at least three nights.
“Colliers believes that Cebu has the potential to be at par with neighbouring destinations such as Bali and Phuket in terms of hotel and resort development,” the study said.
At present, Cebu has only a fifth of Bali’s and Phuket’s room count. Bali’s hotel rooms stood at 50,000 vis-a-vis 6.5 million tourists while Phuket, on the other hand, has about 47,475 rooms for its 8.4 million tourists.
Cebu tallied 10,000 rooms with tourists at 4.9 million, which sustained hotel occupancy of 78 percent higher than the 70 percent recorded in 2016.
Aside from developing leisure estates, Colliers also believes that local and national developers can capture opportunities in the booming Cebu tourism sector by bringing in more foreign brands; building more hotels along the nodes of new road infrastructure projects; improvement of loyalty programs; expansion of meetings, incentives, conferences, and exhibitions (MICE) facilities; and integrating health and retirement facilities.
“Given the surge in foreign visitors, Colliers believes that Cebu is becoming a feasible market for internationally recognized accommodation,” it said.
It encouraged local developers with limited experience in operating hotels to team up with foreign brands. This is particularly important for operators that are targeting the high-end (four and five star) market, the study said.
Moreover, Colliers advised developers to leverage on Cebu’s rich history.
This strategy, the firm said, should attract the more affluent travelers that are willing to spend more for unique guest experiences.
“Colliers believes that developers should explore other historical structures in Cebu City, Mactan, and Mandaue that could be redeveloped into hotels and other accommodation facilities,” the study said.
The research firm also advised developers to complement their hotels with MICE facilities as Cebu is becoming a popular choice for major international events and to strategically acquire parcels of land near public infrastructure projects that are planned to be implemented over the next two to four years. (KOC)