Marco Polo Davao ceases operations due to Covid-19

Photo by Macky Lim
Photo by Macky Lim

WITH the collapse of the tourism industry brought by the coronavirus disease (Covid-19) pandemic, Marco Polo Hotel Davao has decided to indefinitely cease its hotel operations effective June 15, 2020.

When it opened in 1998, the 245-room Marco Polo Hotel Davao became the tallest building in Davao City until the entry of high-rise office and residential towers in the mid-2010s.

The hotel was historic for not only being the only five-star accommodation facility in the city but for also serving as host to major events and being visited by Philippine presidents. It was the venue for conferences and weddings in various sectors. It also played a role in the development of the tourism sector in Davao City.

The hotel was busy with activities every day.

However, with the Covid-19 pandemic, flights have been canceled, borders have been shut, community quarantine has been implemented, and people have been ordered to stay at home. It was dark days ahead for the tourism sector.

Francis R. Ledesma, president of Halifax Hotel Davao Inc., told SunStar Davao that they implemented measures to ensure that the hotel will still be able to operate. Halifax Hotel Davao Inc. owns the hotel.

"Wala naman, nagscale down ka unya furlough, no work no pay, ubos na yung leave, what to do [next]? Anybody would say, unsa naman ang sunod ani? Murag dili na ta maka move forward ani? (We scaled-down, implemented furloughs, leaves have run out, what do we do next? It seems like we will not be able to move forward) That's the reason why we just bite the bullet," he said.

But Ledesma said the decision for the indefinite cessation of hotel operations is not merely a financial decision -- it is to take care of their people.

“It is an indefinite cessation of hotel operations and because of the challenges -- the collapse in the market -- the first thing in our minds is to take care of our people,” he said.

Some 270 hotel workers -- from top-level management to the hotel staff -- are affected by the decision to cease operations.

“Rather than completely lose our capability of taking care of our people and our obligations, we chose to do this,” Ledesma said.

Ledesma added, “It is very sad. more than anything, it is not just the financial fall but it is really an emotional fall.”

The company has released separation pay to the employees that they will be letting go of. He said those who are qualified under the retirement plan received a generous amount.

“Kamo mag halong mo ayaw mo pataka'g palit og iPhone. Ayaw mo pataka'g gasto. Diha lang na (We told them to take care and not use what we gave them to purchase unnecessary things. Save it). You can open up something or start something. Ang uban nag-sulti magdelivery sila. Ayaw pakalit kalit dira (Some of them told us they will start a delivery service. We told them to not rush things). Sit tight and evaluate how you want to move forward,” Ledesma said.

At present, there are still several guests staying at the hotel. Around five to eight percent of the total number of rooms are being occupied by guests who were stranded and employees of business process outsourcing firms.

Ledesma said there will still be around 25 employees who will continue to attend to their needs until the last guest leaves.

After June 15, they will continue to maintain the hotel but not as regular during normal operations. There is also some equipment that has to be maintained while the hotel remains closed. Security will also continue to man the hotel.

“You have to take care of the properties. Hoping that at some point, it will be viable to do something meaningful there. Whether in this manner or some other way,” Ledesma said.

As to the future of the hotel, it is uncertain.

“We still remain prayerful. But as to what will happen next, we really don't know. We will be defined by what comes our way,” Ledesma said.

Outpouring support

Davao City Chamber of Commerce and Industry (DCCCI) president John Carlo Tria said in a statement that he "expressed admiration for the public reaction" on Marco Polo's indefinite cease of operation.

"I note the outpouring of love for the hotel that has become a landmark and symbol of the city on social media by both patrons and former employees. I hope that it can return to operations sooner rather than later," Tria said.

He said there is a need to reexamine operations in light of the Covid-19 pandemic.

He added this underscores the importance of the tourism and hotel sector and that it employs almost five million individuals across the country.

Tria said it may take longer to recover even after quarantine is lifted, since people may not want to travel or congregate in groups for some time.

"Nonetheless, as a chamber, we are working closely with various tourism stakeholders through our tourism task force to determine ways forward to recovery such as special financing and other programs, and innovations that will require adjustments in business models online marketing and other methods," he said.

Rudolph Ian Alama, Philippine Information Agency writer and SunStar Davao columnist, said the hotel has been a partner of the Davao media for many years.

Alama was a moderator of the defunct weekly Club 888 media forum at the Eagles Bar of the hotel.

"Through Club 888, I was a witness to that long and nurturing synergy between MPD and the media community in Davao City," he said in a Messenger interview.

Claudette Jung, a telephone operator of the Front Office Department of Marco Polo, shared how memorable her working experience in the hotel was for a year.

"The experience I had with the hotel is something that I will remember for a really long time. Although I haven't worked as long as many of my co-associates have, I already had so many wonderful memories there. I did not even notice that I had been working for Marco Polo Davao for over a year," Jung said in an interview.

She said the management is "very kind" to have prioritized the well-being of its employees before anything else.

Following the announcement, she said they were given separation pay.

While she said she was saddened by the news, she said she is still grateful to the management for allowing her to work in a five-star hotel.

Girlie Mae Junsay Malalis, a former Marco Polo employee for almost four years, recalled how the hotel became her official training ground as an on the job trainee (OJT) until she was immediately absorbed as an employee after graduation.

During her tenure, she worked as a housekeeping order taker and sales coordinator until her resignation in December 2018.

"Marco Polo has been my greatest training ground since I graduated, we all (hoteliers) can't deny how this 5star hotel honed the skills of each employee from managers to its casuals (rank n file). [sic]," Malalis said in an online interview.

Currently, she is working in another hotel.

She admitted that her current employment is also struggling, just like Marco Polo since the Covid-19 pandemic hit the entire country.

"It didn't come to me as shocking due to this pandemic. Tourism is the most affected industry. I just didn't anticipate that it would stop its operation sooner than later. I'm saddened by the thought of my former workmates. It's never easy to walk away from the company which molded you," she said.

She also said the management made the right decision, and it is for the betterment of their workers.

Potential quarantine facility?

Davao City Mayor Sara Duterte-Carpio said in a radio interview that she is aware of the hotel's plan months ago, but she said it was still a confidential report.

While she did not react to the hotel's closure, she said she will be communicating with the management to consider making the hotel as a Covid-19 quarantine facility.

"I wonder if musugot, kung musugot ang Marco Polo Davao mahimong quarantine facility (I wonder if the Marco Polo Davao management would allow us to convert their hotel into a quarantine facility)," Duterte-Carpio said via 87.5 FM Davao City Disaster Radio.

The mayor bared the plan as the city is still short of bed capacities for its quarantine facilities.

She said that at present, the city has 14 isolation facilities with more than 600 bed capacities. This is still short of the targeted 1,000 bed capacity as recommended by the health officials.

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