Manpower woes plague Cebu’s hotel industry

WHILE Cebu’s hotel industry is now seeing a sustained increase in occupancy since the return of international tourists early last year, hoteliers are also facing a prevailing challenge: manpower.

And their biggest competitor—cruise lines, among others.

There is an “insufficient supply” of hospitality workers in Cebu, as those who left the industry during the Covid-19 pandemic have since found new careers in other industries, while others pursued high-paying tourism jobs like those in cruise lines, according to Mia Singson-Leon, executive vice president of Hotel, Resort and Restaurant Association of Cebu (HRRAC) and general manager of Quest Hotel & Conference Center.

Leon said on Tuesday, June 27, 2023, that several hotel workers will eventually seek greener pastures abroad while some find work in the outsourcing industry here, which also pays better.

To cope with the short supply, Leon said hoteliers are forced to hire applicants even if they don’t meet the standards of the company and train them for up to three months. She said Quest, for example, keeps on hiring and training people.

“This year, we started to improve our hiring,” she said, noting that they have adopted a strong training program for their workers.

Challenging task

While manpower isn’t a problem for Plantation Bay Resort and Spa, Paige Ginete, who heads the resort’s marketing and communications, said on Friday, June 30, that hospitality recruitment has become more challenging.

“We are competing against cruise lines,” said Ginete. “Because they are now accepting fresh graduates and the pay is high.”

The number of employees at Plantation Bay is close to its pre-pandemic count of 400. The resort prioritized rehiring those it had to let go during the pandemic. Old and new employees underwent new training under the new normal, especially since post-pandemic travelers have new demands.

Operating even during the pandemic has allowed Seda Ayala Center Cebu to keep its workers.

“We did not have this kind of issue since we did not close and even our casual staff returned to work. I know it’s an issue for some. Some reasons for the shortage are due to cruise ships,” said Gwen dela Cruz, the hotel manager.

In a separate interview, HRRAC president Alfred Reyes said the shortage of hospitality workers is already an old issue, noting that the industry felt it as soon as travel restrictions were lifted.

“Tourism-related businesses, especially hotels, have been in a crisis to hire enough people. And this isn’t only a Philippine issue. It’s a worldwide issue,” said Reyes in an interview Friday.

He explained that local hotels are affected since they did not have on-the-job trainees and new graduates did not have experience. Hoteliers also face the challenge of losing workers to business process management firms that offer generous income packages.

“Working in our industry requires a lot. You’ve got to have the passion, the willingness to sacrifice, and of course, be hospitable,” said Reyes. “So now it depends on how your brand as a property would be able to convince even those with non-hospitality courses to join you. You’ve got to have a strong human resource department to effectively execute strategies.”

Recovery

But while the industry has been facing this challenge for quite some time, Leon reported that the recovery of hotels is on track as foreign guests have since come back, and the industry is trying to lure meetings, incentives, conferences and exhibitions (Mice) activities to Cebu.

It was early last year when Cebu reopened to international tourists after direct flights to and from Cebu were re-launched post-pandemic.

Leon said while the industry has welcomed the return of Korean, American, European and Australian tourists, they are still waiting for the return of the Chinese and the Japanese.

Before the pandemic, tourists from Japan and China accounted for most of the international arrivals to Cebu, along with the island’s top market, the Koreans.

“We are doing well although we haven’t reached the peak in occupancy yet because the Chinese aren’t back,” said Reyes.

But industry-wide, Leon said hotels are continuously seeing higher occupancy because of the return of foreign guests and the stable local market. Quest Hotel, for instance, now attracts new emerging markets, such as travelers from Israel and groups of foreign persons with disabilities.

“We (the hotels) continue to work with the Department of Tourism to push Cebu as a destination once again,” she said.

Cebu has recently been hailed as one of the top travel destinations preferred by Filipinos, according to the recent Pahayag 2023 Second Quarter Survey released by Publicu Asia on Thursday, June 29.

Cebu landed the third spot with nine percent of respondents choosing the province. Notably, Cebu stood out as the preferred destination among Visayans, with a significant 21 percent of respondents from the region expressing their interest in visiting the province.

The survey, conducted from June 7 to 12, had 1,500 respondents randomly picked across five geographical areas in the country — National Capital Region, North Central Luzon, South Luzon, Visayas and Mindanao.

According to the survey, Palawan emerged as the most preferred travel destination, with an impressive 23 percent of respondents expressing their desire to visit. Baguio City came second followed by Cebu, Siargao, Boracay, Batanes, Bohol and Davao.

Upgrade investment

Moreover, as Quest anticipates the full recovery of the industry and the return of Mice events, Leon said the hotel’s management is investing some P200 million to upgrade all its facilities.

Quest Hotel is operated by the Filinvest Group in partnership with Chroma Hospitality.

The upgrading, which will be done in phases, is expected to be completed in three years, starting with soft renovation in identified areas.

During the Covid-19 pandemic, Quest was one of the hotels in Cebu that never closed as it served as a quarantine hotel for returning Filipinos and temporary housing for outsourcing employees. The hotel business was also sustained by its food and catering services, which until now continue to drive its revenue growth. (CSL, KOC)