Saturday, January 26, 2013

Cebu welcomed 10.6% more tourists


SOME two million visitors arrived in Cebu City from January to November in 2012, the latest data from the Department of Tourism (DOT) 7 show.
The arrivals grew by 10.63 percent from the 1.8 million arrivals recorded in the same period in 2011.
Arrivals from the top 10 foreign travel markets totaled 802,371, up by 14.93 percent. Korea led the list with 386,322 arrivals, posting a 10.61 percent growth from 349,266 arrivals in 2011.
Among the key markets that posted significant growth is Russia, whose arrivals grew by 40.21 percent or 10,779 arrivals from 7,688 in 2011. It ranked fifth in the list, overtaking China, which is now in the sixth spot.
The increased number of Russian tourists in Cebu can be credited to the marketing efforts led by Russian Honorary Consul Armi Lopez-Garcia.

At least 487 Russian tourists visited Cebu in September last year. According to the Russian Federation-Philippines, that was by far the largest group that arrived, a significant development in terms of tourism and relations with Russia.
Garcia, in past interviews, said Cebu should attract the Russian market as they are long-staying tourists and are big spenders.
Next to Korea with the most number of arrivals is Japan, whose arrivals grew by 24.30 percent. Japanese arrivals in the first 11 months of 2012 totaled 179,336 higher than 144,275 arrivals in 2011.
This was followed by United States of America with 75,659 arrivals, which grew by 14.20 percent. Australia landed in the fourth spot with arrivals of 24,085, up by 13.61 percent.
Although overtaken by Russia, arrivals from China continued to grow. Their numbers grew by 11.07 percent or 26,597 arrivals.
Other markets that posted strong growth are Germany with 14,588 arrivals, growing at 13.27 percent; Singapore at 11,041 up by 8.55 percent; and United Kingdom, up by 16.01 percent for a total of 13,885 arrivals.
Arrivals from Canada, meanwhile, dropped from 9,996 in 2011 to 9,917 last year.
The DOT announced that the country welcomed some 4.3 million foreign visitors last year, posting a 9.07 increase from 3.9 million visitors in 2011. The agency said this is the first time the number of visitors surpassed four million.
South Korea remained the biggest market and the first to contribute more than one million visitors. USA came in second, with 625,626 arrivals, followed by Japan with 412,474 arrivals.
“Crossing the four-million mark is a feat in itself and puts us well on track to achieve our ultimate goal of 10 million visitor arrivals by 2016,” DOT Secretary Ramon Jimenez in a statement.
He noted that three significant source markets namely, Japan, Taiwan and Russia, an emerging market, have surpassed their target arrivals for 2012.
The country achieved only 93.8 percent of its goal of 4.5 million arrivals last year due to factors like economic and political pressures from traditional markets such as US, Europe and China.
Depsite the challenges ahead, Jimenez remained optimistic that the country would be able to meet the target of five million arrivals this year.
He said the thrust of the agency’s marketing this year is market development, which entails “expanding the potential market for new users and new uses.”
“We will look into segments that we have not thoroughly explored. We will explore more creative executions geared toward sustaining the fun we have started. We hope to have stronger representation and be the part of the future of tourism in Asia,” Jimenez said.

http://www.sunstar.com.ph/cebu/business/2013/01/25/cebu-welcomed-106-more-tourists-264849
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Cebu Pacific flew 11% more passengers in ‘12


CEBU Pacific flew 13.26 million passengers from January to December 2012, an increase of 11 percent over the 11.93 million passengers it flew in 2011.
http://www.mediahub360.com/virtual-tours/robinsons/final/amisa/index.html
Cebu Pacific attributes this increase to the expansion in its domestic and international operations in 2012. It launched direct flights from Manila to Hanoi, Siem Reap and Xiamen, as well as from Cebu to Bangkok and Kuala Lumpur last year. The airline also started direct flights from Iloilo to Hong Kong and Singapore.
This expansion, as well as seat sales and strengthened tourism promotions, led to notable passenger growth in the following international markets: Malaysia (21 percent), Taiwan (22 percent), China (29 percent), Vietnam (30 percent) and Brunei (32 percent).
A total of 10 domestic routes were also launched, paving the way for more air travel in various parts of the Philippines. This includes flights from Davao to Dipolog and from Zamboanga to Cagayan de Oro, routes which were previously served by buses plying 12-14 hour rides.
Domestic passengers from the airline’s Cebu hub grew by 20 percent, while its Davao hub grew by 16 percent.
“It is very fulfilling for us in the Cebu Pacific team to continue giving travellers new destinations, the lowest fares and direct flight options. The Philippines’ momentum when it comes to tourism buzz will be supported by Cebu Pacific’s expansion to more regions in the world,” said Cebu Pacific vicew president for marketing and distribution Candice Iyog.
Cebu Pacific is slated to launch twice weekly Manila-Bali (Denpasar) flights on March 16. It will also launch its long-haul operations with its first Manila to Dubai flight on Oct. 7, 2013.
Lowest year-round fares to Bali start at P3,499, while lowest year-round fares to Dubai are as low as P6,999.(PR)


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Sustained momentum


IF past trends are to be made basis, the National Economic Development Authority (Neda) 7 has reason to believe the economy of Central Visayas grew by six percent “at the very least”.
An economic situation report prepared by Neda 7 Assistant Regional Director Efren Carreon stated that past trends show the region’s growth is faster than that of the national economy.
According to the report, Central Visayas posted 12.5 percent GRDP (gross regional domestic product) in 2010, the highest growth in the country that year, and 7.5 percent in 2011, second to the Caraga’s 9.6 percent growth.
Carreon pointed out that compared with the Philippine economy, which grew by 7.6 percent in 2010 and 3.9 percent in 2011, Central Visayas has consistently shown stronger growth.
“I am glad to report that preliminary indicators suggest that the Central Visayas economy was able to sustain the economic growth momentum realized in 2010 and 2011,” Carreon said.
Carreon said that many leading industries continued to turn in good performances in 2012.
With the Philippine economy growing 6.5 percent for the first nine months of 2012, they are confident that the region posted a high growth for the whole year, citing the last two years showing Central Visayas surpassing the national average.
For Neda 7, industry and services are what drive the region’s economy. Carreon said the sustained expansion of outsourcing and tourism markets fueled the growth of construction, real estate, transportation, retail trade and banking sectors. The high level of consumption among families of overseas Filipino workers is also seen as benefitting the retail trade and real estate sectors.
Retail expansion
Citing a report from the Cebu Investment Promotion Center (CIPC), Carreon said 17 new foreign business process outsourcing companies opened in Cebu, majority of which were from the non-voice sector, a sector that requires high value-added skills.
Aside from the new locators, existing companies like Accenture Philippines and Stream Global Services expanded, providing more employment opportunities in the region.
In retail, store chains expanded operations while Cebu also saw new players joining the retail industry in Central Visayas. These included the new operations of SM Consolacion, Gaisano Grand Mall in Talamban, 7 Eleven, Mini Stop and Wilcon Builders Depot.
Carreon said retailers took advantage of increased consumerism and improved spending capability among residents here, as the purchasing power of consumers has risen due to the availability of well-paying jobs in the BPO sector and the steady remittances of OFWs.
The report also cited real estate and construction as among the sectors that benefitted from the expansion of other industries.
“More and bigger projects were stated in 2012 to support the expansion of the outsourcing, retail trade and tourism industries. The real estate and construction industries benefitted from the steady demand for real property investments from OFWs,” the report said.
The report noted data from the National Statistics Office showing an increasing trend in the number and value of construction projects of hotels, office buildings, stores and residential condominiums.
The Board of Investments also indicated 13 out of 24 projects registered with them in 2012 were for mass housing and hotel construction. The total estimated cost of these projects reached P4.3 billion, representing nearly 10 percent of total investments registered with the BOI in 2012.
Growth of real estate and construction has remained steady in the past two years as both sectors posted double-digit growth since 2010. They are also considered among the key contributors to the region’s economic growth.
Construction was the highest performing industry in 2011, with a growth rate of 21.5 percent while real estate services were the best performing sector at 10 percent.
The report also showed positive figures in tourism, shipping, aviation and exports, although the data available only covered the first half of 2012.


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DOT to explore new marketing strategies


CEBU, Philippines -  The Department of Tourism (DOT) is embarking on a market development thrust this year, which entails expanding the potential market for new users and new uses.


“We will look into segments that we have not thoroughly explored. We will explore more creative executions geared towards sustaining the fun we have started. We hope to have stronger representation and be part of the future of tourism in Asia,” said tourism secretary Ramon R. Jimenez.
Jimenez admitted that it is going to become increasingly challenging to meet the future targets, which is to hit 10 million arrivals by 2016, “but we know that Filipinos are the biggest believers of our slogan. It’s more fun in the Philippines.’
The secretary is confident however, that the country will be able to cross the five million milestones in 2013.
The country, bringing the slogan of “It’s more fun in the Philippines,” ended the year 2012 with a total of 4.3 million foreign visitors, a 9.07 percent increase from 3.9 million visitors recorded at the end of 2011.
The year 2012 marks the first time in the country’s tourism history to surpass the four million visitor arrival mark, said Jimenez.
South Korea set a new all-time high by supplying a total of 1,031,155 visitors or 24.13 percent of the total visitor volume to the Philippines.  Registering 11.45 percent growth from 2012, South Korea remains the biggest market and the first to contribute one million visitors.
The United States of America came in second with 625,626 visitors, equivalent to a 15.27 percent share. Japan ranked third with 412,474 visitors or 9.65 percent of the total inbound traffic.
Other markets consistently providing significant volume and positive growth are China with 250,883 arrivals (5.87 percent), Taiwan with 216,511 (5.07 percent), Australia with 191,150 (4.47 percent), Singapore with 148,215 (3.47 percent), Canada with 123,699 (2.90 percent), Hongkong with 118,666 (2.78 percent), Malaysia with 114,513 (2.68 percent), United Kingdom with 113,282 (2.65 percent), and Germany with 67,023 (1.57 percent). Overseas Filipinos supplied 5.05 percent to the total tourist traffic at 215,943 arrivals, exhibiting a steady growth rate of 4.24 percent.
“Crossing the 4-million mark is a feat in itself and puts us well on track to achieve our ultimate goal of 10 million visitor arrivals by 2016,” Jimenez enthused.
Three significant source markets have also surpassed their respective target arrivals for the year in review. Japan’s actual visitor arrival output of 412,474 is 3.86 percent higher than its target of 397,141. Taiwan surpassed 10.46 percent by registering 216,511 arrivals. Russia, an emerging market, yielded 22.12 percent more than its target of 23,149 arrivals.
The country achieved 93.8 percent of its 4,556,582 visitor arrival goal for 2012. Some shortfalls were felt due to economic and political pressures from traditional markets such as US, Europe, and China.
 However despite a few bumps on the road, all key source markets still registered positive growth for the year. (FREEMAN)


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Cebu tourism players brace for Chinese market rebound


CEBU, Philippines -  While bookings from the Chinese market has started to pick-up in Cebu as the Chinese new year approaches, industry players expressed concern of uncertainty of receiving more bookings from this particular market.

“There is still a degree of uncertainty, issuing VISA to the Philippines [from the Chinese government]. And the question of mobilizing sufficient flights in a relatively short time [17 days left] is a concern,” said Hotel, Resort an Restaurant Association of Cebu (HRRAC) president Hans Hauri.
Hauri, the general manager for Marco Polo Plaza Cebu said that his hotel have received bookings from different groups from mainland China, from Guangzhou Province, Shanghai and Taiwan.
Other hotels in the City reported have good booking status from the Chinese market this year, compared to the almost-zero booking in 2012.
Cebu Parklane International Hotel general manager Cenelyn Manguilimotan said that the hotel has blocked 100 rooms for its Chinese guests that will spend their Chinese New Year vacation in Cebu this year.
According to Manguilimotan the Chinese visitors are booked to stay in 241-rooms from February 10 to 14. Last year, she said the hotel got no booking from this particular market for the Chinese new year season.
Radisson Blu Hotel Cebu director for sales and marketing Ann Olalo reported that the hotel is preparing to host 10 groups to come by batches, on a tour series package that will be brought by the Dong Fang Chartered Flights.
“China market is picking up. February is a good gauge for the market’s come back, starting with the Chinese New Year,” said Olalo in an interview.
Hauri said that Cebu hotels are generally preparing for the Chinese market rebound.
“We are ready to welcome back our friends from China to show them why ‘It’s more fun in the Philippines.’ There will be the Xin Nien Festival at Ayala Center Cebu to celebrate Chinese new year, the start of the water snake,” he said adding that HRRAC-member hotels make special efforts to decorate their lobbies with the traditional colors of red and gold.
“Marco Polo is adding firecrackers, lion-dance, ushering out dragon and welcoming the snake, tossing of the Yee sang for prosperity, sharing red packets/laycees and all the delicacies of the occasion at the Cafe Marco Buffet,” added Hauri.
Prior to the travel ban of the Republic of China government against the Philippines middle of this year, due to “territorial dispute,  the DOT has announced its plan to attract considerable number of Chinese tourist getting a bigger chunk of the 88 million Chinese who are expected to travel outside of their country in the next four years.
According to DOT, the Philippines is counting the Chinese market as one of the top growth drivers for tourism arrivals in the Philippines, while it has seen a significant turn-around of arrivals from China in the last few months. (FREEMAN)


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Regular Cebu-Guangzhou charter flights set


CEBU, Philippines -  Strained diplomatic ties between China and the Philippines may be slowly thawing with the re-introduction of regular charter flights established between the cities of Cebu and Guangzhou within this month.
Starting January 24, 2013, Air Philippines proudly launches its Cebu-Guangzhou flights every Thursday and Sunday; leaving the Mactan airport at 9 pm and arriving at the Chinese city at 11:30 pm. From Guangzhou, the plane departs 12:05 am and lands in Cebu at 2:35 am.
These charter flights will be set at a year-round basis in anticipation of the rising potentials of the Chinese market which seek novel and exciting destinations within the Asian continent.
In addition, Philippine Air Lines has also finalized its daily charter flights between Cebu and Hong Kong from February 10-16, 2013 in commemoration of the Chinese New Year festivities to be feted at selected hotels in the city. 
Passengers aboard the Hong Kong flight originally come from mainland China which utilise Hong Kong as an alternative connecting point to Cebu.
Cathay Pacific will also block off a certain number of seats which have been specially reserved for the Chinese visitors.
These unexpectedly upbeat developments will surely give cheer to the tourism stakeholders in the region since this will serve as a fitting carry-over of tourism arrivals from the Sinulog to the Chinese New Year.
Better yet, Cebu will serve as a jump-off point to other cities and provinces such as Manila, Bohol, Davao, and Boracay in order to share the tourism pie with other visitor hotbeds in the country.
To recall, charter flights between Cebu and Guangzhou were halted for ten months last year due to heated claims of ownership of China and the Philippines over the Scarborough Shoal in the Pacific Ocean.  
Though the ban on flights was lifted last October 2012, negotiations for flight resumption as well as market response has been relatively modest due to the hangover of emotions over the controversial marine property.
“We are doubling our efforts in promoting selected Philippine destinations to the Chinese market. Though feedback was not as positive as before, we feel that we have more than done our part in regaining the trust and confidence of the Chinese,” related Alan Dino, senior vice president of Dong Fang Philippines Leisure Corp.
He acknowledged the role of the Department of Tourism in providing government support in backing up Dong Fang so as to jumpstart the DOT’s targeted number of Chinese arrivals for the year.
This serves as a wake-up call for the DOT, he reiterated, as we embark on a bold move to introduce the tourism attractions and accommodations to the Chinese, our fastest-growing and the world’s most lucrative market.
Likewise, Dong Fang salutes the DOT’s “It’s more fun…” campaign as lively in its approach to several facets in everyday living in the archipelago and unique humorous twists in concept.
Dong Fang also deems it wise to take on a more proactive stance and go on the offensive rather than wait for market feedback. In doing so, the company hopes to create momentum and support from the leading tourism stakeholders for more coordinated efforts and synergy from both the public and the private sectors.
Yet another encouraging development was the fact that the Philippines was named as “Most Romantic Destination” by the Shanghai Morning Post based on a consumer survey as indicated on a front page story of a recent Philippine Star issue.
This may be traced to idyllic Boracay which has long attracted visitors from all over the globe who couldn’t simply get enough of the unique sand quality and the breezy setting; thus garnering several acclaims as the world’s best beach over the years.     
The Philippines was also named “Best Tourist Destination” last January 9, 2013 by the Oriental Morning Post during its annual World Travel-Special Trip Awards.
 Such awards were deemed most timely to complement global accolades and praise due the Philippines for its glowing socio-economic factors such as a strong peso, the healthiest stock market in Asia, topnotcher in economic growth in Asia, and favorable ratings for its top national government officials. 
Dong Fang is a real estate developer and a tourism and leisure company with offices both in Cebu and Guangzhou which has spearheaded efforts in luring in the Chinese market to Cebu and other Philippine destination for the past seven years.  (FREEMAN)


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Thursday, January 24, 2013

Cebu now 8th in outsourcing list


CEBU City moved up one rank in the list of established outsourcing destinations worldwide, according to a study by investment advisory firm Tholons.
Cebu is now ranked 8th in the Tholons Top 100 Outsourcing Destinations Report for 2013, according to the Cebu Investment and Promotions Center (CIPC).
Aside from Cebu, six other cities were included in the list. Manila is now 3rd, moving up from 4th last year. Davao ranked number 70; Sta. Rosa, Laguna, 84; Iloilo City, 93; Bacolod City, 94; and Baguio City, 99.
Availability and quality of workers were among the criteria in selecting the top outsourcing destinations. CIPC estimates that there are about 95,000 people employed in the business process outsourcing (BPO) industry in Cebu.
It also said that the average of 24,000 college graduates produced every year, complemented by skilled young individuals who want to start their careers in the BPO industry, helped Cebu strengthen its reputation as a BPO destination.
CIPC managing director Joel Mari Yu said the improvement is a “big thing” to celebrate in the face of challenges in manpower availability.
“The primary roadblock for Cebu to advance higher is the lack of qualified manpower,” Yu said in a phone interview. “We have good infrastructure, we have demonstrated our capability in almost all IT spectrums, but we fall short in providing the industry with qualified IT/BPO workers.”
Yu said it might take quite a time for Cebu to land on the fifth spot. But he said industry stakeholders are conducting recruitment outside Cebu to address the
industry’s workforce requirements.
Yu said that in 2012 alone, about 20,000 to 25,000 jobs were generated by new companies that set up businesses in Cebu.
Cebu Educational Development Foundation for Information Technology Inc. (Cedf-it) executive director Jun Sa-a said Cebu deserves to be promoted in the 2013 Tholons list as it has proven it could scale and improve the quality of its manpower.
“This is a proof that the Philippines is giving India a serious challenge in this industry,” Sa-a said.
Jerry Rapes, chief executive officer of Exist Global shared the sentiment. He attributed Cebu’s improved ranking to the hard work and collective effort of industry players, government and the academe.
“This is a validation that what we are doing is good but we should not just maintain that standing, we should move forward,” Rapes said in a phone interview.
Rapes said Cebu should not be overconfident as there are larger cities that are cornering a big part of the market and there are cities behind it that are catching up.
“Cebu continues to have challenges to face before it can become the top business process outsourcing destination, especially because the competition in many surrounding areas of Asia is fierce. Cebu will have to work to continue to build its reputation as an outsourcing leader to make it to the top,” the CIPC said.

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RLC to launch 6 new projects


MANILA, Philippines - Robinsons Land Corp. (RLC), the property development arm of tycoon John Gokongwei, will launch six new residential projects this year as it expects stronger demand in the residential sector.
“We hope to launch at least six, a mix of condominiums and subdivisions,” RLC president Frederick Go told reporters on the sidelines of the 16th Outstanding Filipino Retailers & Shopping Centers of the Year awards night.
“In the past, most people thought that our residential business would either be negative or flat,” Go said.
However, sales turned out to be robust, with the residential business seen to outperform expectations this year, he said.
The six residential project launches slated this year in areas like Ortigas Center in Pasig, Manila and Quezon City is already higher than the four projects initially targeted by RLC, Go said.
In its 2012 fiscal year that ended last September, the residential division’s revenues fell five percent to P4.3 billion “due to lower project completion of various ongoing projects.”
To prepare for an expected higher sales, Go said the company beefed up its sales force last year.
RLC operates under four brands: Robinsons Luxuria for the high-end market, Robinsons Residences for condominiums in central business districts, Robinsons Homes for house-and-lot developments in provinces and Robinsons Communities for the middle income segment.
Last week, RLC announced a capital spending of P13 billion this year to take advantage of the sustained property boom. It is higher than the P9.5 billion in the 2012 fiscal year.
Of the capital allotment, two-thirds will be spent for the development of malls, office buildings and hotels while the remaining 33 percent will be taken up by residential condominium and housing projects.
Go said the capital expenditures will be sourced from internally generated cash of RLC, which is also into hotels, malls and office space development and management.
Profits of RLC rose seven percent to P4.2 billion in the 2012 fiscal year. The company has built 32 malls, 33 residential projects and eight office buildings to date.
Apart from its core property businesses, RLC is entering the gaming business. Late last year, it sealed a deal with Japanese gaming tycoon Kazuo Okada to jointly develop a $2-billion hotel and casino complex in the 100-hectare Entertainment City along Roxas Blvd.
Okada’s Tiger Resorts & Leisure Corp. is one of four groups that were granted a license by the Philippine Amusement and Gaming Corp. to operate a casino on a reclaimed land along Manila Bay, which the government expects to turn into the world’s number two gaming destination, ahead of Singapore and Las Vegas and behind only Macau.

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Mactan Island, Cebu Developments

Amisa Private Residences' aerial photo for the 3 of 6 tower condominium complex.Currently, it has 6 hectare master planned development with 210 meters beach front with hotel and entertainment center components. According to information, adjacent lot with an area of approximately 3.5 hectare was acquired as an addition to the estate and will expand the area to 9.5 hectares with an aggregate beach frontage of approximately 350 meters. Beach development will start within the quarter and tower C will start its turn over by 4th quarter of 2013, a year ahead of original schedule which is 2014.

Mactan Island, Cebu along Barangay Mactan and Punta Engano showing upbeat development. This will be the next "leisure and retirement district" in the future

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Inputs and descriptions herein are subject to verification and perspectives are "only" the writer's point of view and initial information gathered and known.

Council wants 6-month moratorium, asks for in-depth study on Citicenter


THE Cebu City Council wants an in-depth study to be conducted before the executive department builds a high-rise condominium project on the lot currently occupied by the Citicenter Commercial Complex in Barangay Kamagayan.
Pending the study, a six-month moratorium should be imposed on the demolition of the families living inside the complex.
During the council’s regular session yesterday, Kamagayan Barangay Captain Celestino Avila said they want 2,000 out of the 7,281 square meters of the Citicenter to be given to them.
He said they will be using it to construct a condominium project for the urban poor families living inside Citicenter.
He said he is also planning to construct a senior citizens’ building, a lying-in center and a park, among others.
However, Councilor Jose Daluz III said that a thorough study should be made first, particularly on the construction of a condominium project for the urban poor.
“The property where the Citicenter is located is identified as a highly commercialized area. Di unya ka-afford ang mamuyo diha (The occupants might not be able to afford it) because of the high value of the lot and then our venture won’t succeed,” he said.
Councilor Margarita Osmeña pointed out to Daluz that Mayor Michael Rama also plans to build a condominium project in the area for the housing program for City Hall employees.
Daluz then said that the same study should be made before such project will be implemented.
“Because if the project would fail, it would just really be a waste of time and money.
Dili lang nato dali-dalion ug implement (We will not do it in haste),” he said.
As for the six-month moratorium, which is being proposed through an ordinance filed by Councilor Alvin Dizon, Daluz suggested that no period should be given.
The moratorium will be lifted once the study on the viability of the condominium project will be finished, he said.
Daluz pointed out, though, that there is really a need to develop and transform the area from being the city’s main red-light district.
Sought for comment about the matter, Rama said no one can stop him if he pushes through with the demolition of the illegal settlers at Citicenter.
The court has also given the City the go-signal to evict the families after it denied the families’ application for preliminary injunction.
Asked when will the City resume the demolition, Rama said it will be soon. He said there was only a delay because of the Yuletide and the Sinulog celebrations.


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MANILA, Philippines - Investments in luxury property developments are expected to rise in Boracay, Cebu and Palawan as the government continues its promotion of these areas as tourist destinations, real estate advisory firm CBRE Philippines said.
CBRE Philippines chairman and founder Rick Santos said in a press briefing yesterday that as the government’s tourism promotions continue and foreign visitor arrivals increase, more investments in luxury developments are expected to be made in tourist destinations of the country.
“With tourism efforts now into full swing, a captive international market for destination properties in Cebu and Boracay will revitalize investment and luxury developments in these areas,” he said.
Liz Silvestre, CBRE Philippines associate director for investments and capital markets said in the same event they are seeing more investments in luxury property developments this year in Cebu, Boracay, as well as Palawan, as these areas are among the top tourists’ picks in the country.
She said many tourists are visiting these three locations not only because of the government’s continuous efforts to promote tourism but also because of special attention from overseas.
With more foreign travelers to these areas, opportunities are available for luxury property developers.
“The direction of investors is looking in to high-end developments in these areas,” Silvestre said.
She said there are property developers indicating interest to invest in these areas, with one even planning to bring a five-star hotel this year.
She declined to name the firms, but cited one recent luxury development in Boracay which is Aqua Boracay by Yoo.
Aqua Boracay is the first branded five-star class resort residence on the Island of Boracay.
Master-planned in a 16,000 square-meter property right across a pristine beachfront, Aqua Boracay comprises a four-story, low-density and low-rise building with 134 one-and two-bedroom luxury apartments, offering residences that are spacious, modern and have a sophisticated design.
Silvestre said that while there is interest to start more luxury developments in the country’s tourist destinations, the government would have to continue investments in necessary infrastructure to attract more tourists to these areas.
“We are seeing plans for refurbishments of airports, but we think the government will also have to start investing in the upgrade of ports,” she said.
Data from the Department of Tourism showed that arrivals to the country reached 4.273 million last year, up 9.07 percent from 2011.
The Philippines aims to attract 10 million visitors by 2016.(Phil. Star)


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Cebu takes off as second-home destination

CEBU, Philippines - Even with less promotion here and abroad, Cebu has taken off as the “second home” destination both for Filipinos and foreigners.
Cebu Investments and Promotions Center (CIPC) managing director Joel Mari S. Yu said Cebu has arrived in terms of positioning as “second-home” destination, considering the fast turn-over of residential products not only in the urban areas in the province, but also in the outskirts or countryside.
According to Yu, Cebu has benefited from the previous programs launched by the Department of Tourism (DOT), the “Live Your Dream” campaign, which was aimed to encourage Filipinos working and residing in other countries, as well as foreigners not just to visit the Philippines, but to make the country as their “second home.”
Although, the program was not sustained due to changed of leadership, Yu said Cebu has slowly reaping the results of the campaign, also attributing the developers’ and brokers’ support for the positioning in joining the promotion to make Cebu as “second home” choice in last few years.
Led by the strong interest from OFWs (Overseas Filipino Workers) from all over the country, the Cebu’s real estate, especially the residential segment has been selling like “hot cakes.”
Yu said this phenomenon of residential real estate boom, will continue as millions of OFWs are now smarter, and putting their hard-earned money in good investment instruments, like real estate.
 According to Yu, there are only two places in the Philippines that have a grip on OFWs real estate investment—Manila and Cebu. While, Manila is also considered as “saturated,” Cebu is a better alternative for “home” investment option.
Yu echoed other economists’ outlook that Cebu’s real estate sector is far from experiencing a bubble.
Yu said that it is not only the “Pinoys” from other provinces, or those working abroad want to have a home in Cebu, but also wealthy foreigners who are lured to the tropical and charming ambiance of Cebu which is an “urban resort.”
Five years down the road, investments in real estate is seen to double or triple in value, Yu said.
In order to sustain its economic growth, Cebu has to invite more people from other provinces to live here.
For this reason, CIPC recently announced its plan to craft an effective program to lure non-Cebuanos to invest and make Cebu as their top second-home destination, to intensify the attractiveness of Cebu in this area.
Though, Cebu is on this track already, it has to strengthen its promotion in order to cope with the robust growth, Yu said  adding that Cebu should move on capitalizing intensively its attractive livability, which offers a very wide range of living facilities from condominiums, full-service apartments, townhouses, and stand-alone residential units.
 “All rich people in Manila have properties in Tagaytay. We should [further] convince people in Manila and in Visayas and Mindanao to make Cebu as their second home,” Yu said.
Cebu as a tropical island that has over 700 kilometers coastline, with average temperature of 22 to 23 degrees celsius  a storm-free island paradise—assuring year-round swimming and golfing weather, endless potential for other leisure activities  while access is made convenient by an international airport and sea port is good enough to attract both local and foreign property investors.
 Besides, he said Cebu is considered as among the safest cities in Asia as attested by low crime rates and high crime resolution statistics.
It is expected that with this development, in the near term, Cebu is seen as a place follow the steps of Paris, Hawaii, Spain, and other famous second home destinations in the world, while property developers now are the right building infrastructure to support this. (FREEMAN) 

http://www.philstar.com/cebu-business/2013/01/24/900566/cebu-takes-second-home-destination

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Cebu tourism logs ‘vibrant’ year


Monday, December 31, 2012
THE past 12 months have been vibrant for Cebu’s tourism industry. Department of Tourism (DOT) 7 Director Rowena Montecillo said that as of September, Cebu recorded 1.7 million in tourist arrivals, up 11.07 percent from the 1.5 million tourists recorded in 2011.
Foreign arrivals to Cebu increased by 13.65 percent while domestic arrivals went up 9.26 percent. DOT 7 is expecting to hit two million tourist arrivals by yearend of 2012.
The relatively stable Asian markets and the combination of increased tourist arrivals and additional rooms were among the growth drivers of the industry this year, according to Hotels, Resort and Restaurants Association of Cebu (HRRAC) president Hans Hauri.
Cebu Pacific, on the other hand, credited the “It’s More Fun in the Philippines” campaign as among the key factors that fueled growth in the industry this year.
“The new ‘wind in the sails’ provided by the tourism campaign speaks directly to the rest-and-recreation-seekers, backed by a tourism product that is inviting, attractive, varied and definitely a proposition to return again to first-time travelers,” said Hauri.
The relative stability of Asia as a marketplace also influenced the growth of the industry. Statistics showed Asia tourists leading arrivals, specifically from Japan, which logged a 24.46 percent growth; Korea, 8.90 percent; and China, 16.33 percent.
Occupancy
Hauri said the 61 percent average occupancy across Cebu shows the stability of the sector. Room supply increased by 11 percent in 2012. Hauri said they expect a 10 percent increase this year with 500 more rooms being built. Cebu City has 141 hotels with 9,335 rooms.
The completion of the 500 rooms is expected to generate up to 5,000 new jobs for Cebuanos, tourism officials said.
Aside from new hotels, Montecillo said new products were also put in place to provide additional attractions.
These include Papa Kit’s Marina and Fishing Lagoon in Liloan, Danasan Eco-Adventure Park in Danao City and the Gabii sa Kabilin or Night of Heritage organized by the Ramon Aboitiz Foundation, Inc. which are generating buzz for being family- and group-oriented recreational activities. Cebu companies also diversified their businesses and ventured into tourism after seeing its potential as a revenue generator.
An example of this is the newly opened Lakwatsa Resto Lounge, which promotes cultural nightlife in Cebu, by couple Wilson and Melanie Ng of Ng Khai Development Corp.
Hauri, who is the vice president of the Tourism Congress of the Philippines for the Visayas, said the airlines were the ones “spearheading the initiatives to drive new business opportunities.”
DOT 7’s Cebu Sales Missions to Singapore and Malaysia led to opening of Cebu Pacific’s new direct route from Cebu to Kuala Lumpur, Malaysia and Bangkok, Thailand.
New additional flight from Cebu to Incheon, Korea via Jeju Air has also helped increase arrivals.
“Cebu remains to be one of the top Philippine destinations, for leisure and business travel,” said Cebu Pacific vice president for marketing and distribution Candice Iyog.
Cebu Pacific flew close to 9.8 million passengers as of September.
Hauri said key drivers for corporate travels are the IT-BPO industry, banking and
financial services, manufacturing, trading and education.
Pharmaceutical and insurance industries were also the key drivers for Cebu’s Meetings,
Incentive, Conference and Exhibitions (MICE) business.
Montecillo said her office also worked with various government agencies, including Department of Public Works and Highways for tourism roads infrastructure; Department of Science and Technology for livelihood projects; Department of Trade and Industry for the improvement of the tourism value chain; Philippine National Police for the Tourism Oriented Police for Community Project; Bureau of Fisheries and Aquatic Resources for the preservation of protected areas; Technical Education and Skills Development Authority for the training of tourism frontliners; Cebu Ports Authority for the proposed DOT satellite office in some ports; and the Commission on Higher Education and Department of Education on educational tours.
Airport expansion
The government, under its public-private partnership program, also opened the bidding for the P8-billion expansion of the Mactan-Cebu International Airport. Conglomerates like Ayala Corp. and Aboitiz Equity Ventures; Metro Pacific Investment Corp. and San Miguel Corp. have expressed interest in joining the bidding.
Hauri, however, cautioned that challenges still remained. The China market, which logged strong arrivals during the first four months of the year, plunged following the conflict over Spratly’s Island.
“It brought the market to a literal standstill,” said Hauri. But he said the decline was offset by increased arrivals from Japan and Korea
The decline of Chinese tourists also affected tourism sub-sectors such as Cebu’s spa industry, according to Spa and Wellness Association of Cebu (Swac) president Johnny Siao.
“This problem with China resulted in a substantial decline of spa customers,” said Siao, noting that Chinese tourists are among Cebu spas’ top clients as they come in bigger groups.
“We truly hope that politics might be put aside and the resumption of a normal flow of travelers can be envisaged,” said Hauri.
In 2012, Qatar Airways suspended direct flights to Cebu because of rising cost and high operating expenses. It was the only link to markets in Europe and Middle East.
Montecillo, however, reported there was no significant impact on arrivals from Europe.
Air rights
Iyog identified limited air rights between countries; the existence of Common Carriers Tax (CCT) or Gross Philippine Billings Tax; and the Federal Aviation Authority (FAA) Category 2 status and International Civil Aviation Organization (Icao) Significant Safety Concern as some of the unresolved industry issues that continue to limit the growth of the industry.
“Expansion or growth is not just about the physical infrastructure but it also refers to air rights between countries. If the air rights between countries are limited then so are the potential clients,” said Iyog.
She said that if the country targets 10 million tourists by 2016, it would need 15 million seats in terms of entitlements. On the other hand, the existence of CCT could “turn away” airline companies. The elevation of air safety status to Category 1 would also allow local carriers to expand operations in other foreign countries.
Philippine Airlines is hopeful that the Category 2 safety status will be upgraded to Category 1 by this year so it could start serving New York City and other major cities in Europe.
Hauri said they want to increase foreign tourist arrivals who are big spenders as they would drive income of people in the industry.
“To that end, we need more air connections from major areas like Europe, the USA as well as Russia,” he said.
Cebu is seen to strengthen its position as the no. 2 airport in the country but s facing challenges from other secondary airports like Iloilo, Bacolod, Bohol, Cagayan de Oro and Caticlan, which are all vying for international connections.
DOT 7 is projecting 2.6 million to 2.8 million tourist arrivals in Cebu by 2013.
“We have all the right instruments in place to make 2013 a better year,” said Hauri.
He referred to growth drivers like air connections, rooms supply, value-rates, promotions campaigns, working committees on improving infrastructure, tourism-focused policies and experienced workforce.
Hauri said recent purchases of new aircrafts by airline companies add capacity to the market. Iyog said Cebu Pacific is planning to grow its Cebu hub this year with the delivery of seven new Airbus A320 units.
DOT 7 is also preparing for a number of international cruise ships to visit Cebu and Bohol and the visit of 500 Japanese English as Second Language (ESL) students for a familiarization tour in Cebu by 2013. She said this will be the first of a series of familiarization tours of ESL students from Osaka, Japan.:
Source: Sunstar Daily