ACCOMMODATION and dining players in Cebu are ramping up cost-efficiency measures and market diversification efforts as rising geopolitical tensions in the Middle East threaten to push up operating expenses in the coming weeks.
The Hotel, Resort and Restaurant Association of Cebu (HRRAC) said its members are bracing for increases in fuel, electricity, and retail prices—particularly food and beverage costs—by strengthening internal controls and operational resilience.
HRRAC president Mia Singson-Leon said industry players are intensifying energy-saving initiatives, improving supply chain efficiency, and minimizing waste to cushion the impact of higher input costs. Establishments are also revisiting contingency plans to enable faster responses to potential disruptions.
Despite these headwinds, hotels and resorts are maintaining aggressive sales strategies, with a growing focus on Asian and Pacific markets. Singson-Leon said the group is leveraging newly available short-haul flights to Cebu, which are seen as safer, more convenient, and cost-effective options for regional travelers.
She added that the shift in market focus is expected to help sustain visitor arrivals and support occupancy rates, even as global uncertainties weigh on travel demand.
At a recent industry discussion, Singson-Leon said the sector is closely monitoring whether shifting travel patterns could benefit regional destinations.
“With all the disruptions, we are hoping for a possible shift in the market,” she said, noting that travelers—particularly from East Asia—may increasingly opt for shorter-haul trips within the region instead of long-haul routes.
Cebu Pacific president and chief commercial officer Alexander Lao echoed this outlook, highlighting the industry’s focus on identifying opportunities amid uncertainty.
“Looking at the opportunity in every crisis, there could be a Southeast Asian opportunity for us,” Lao said, noting that traditional routes between Europe and Asia often pass through the Middle East, which could influence travel behavior.
Airline data also point to resilient demand despite geopolitical concerns. Industry officials cited continued strong booking activity even as global headlines highlight the ongoing conflict.
In the United States, major carriers such as United Airlines have reported sustained travel demand while shifting capacity toward trans-Pacific routes, including expanded services to Asia and increased flights to Manila and other regional destinations.
This trend suggests some travelers may be rerouting trips away from affected corridors, potentially boosting intra-Asia and trans-Pacific travel.
Industry stakeholders said these developments could provide a “silver lining” for Southeast Asia as tourists reconsider destinations and prioritize closer, more accessible locations.
While uncertainties remain, both airline and hotel operators said they are cautiously optimistic that evolving travel patterns could support regional tourism growth in the near term. / KOC