Condotel units to add more rooms for tourists

Tambuli Seaside Residences, Mactan Island, Cebu

Cebu will have at least 300 more rooms for tourists when the condominium project in Mactan will be completed in the next few years.

These developed with the interest of most owners of the nearly 500 condominium units of Tambuli Seaside Living projects in Barangay Mactan.

Gerard Tan, Tytans Properties and Development, Inc. president, said almost 80 percent of unit owners in their multi-billion Tambuli Seaside Living project have expressed interest to participate in a condotel concept for their condo units.

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“Many of the unit owners live outside the country. Most of them also bought units for investment purposes and are more interested in income from leasing,” said Tan.

Under the condotel concept, unit owners let the developers manage their property and market it for leasing.

Instead of having it leased monthly, Tan said, they would lease it on a daily basis to cater to transient tourists just like a hotel.

Property management will be handled by a London-based consultancy firm while the developer’s in-house staff will handle hotel management.

One factor that has attracted buyers is the high hotel occupancy rates in Mactan Island all year round, said Tan.

He said income from leasing their units would offset the homeowners’ monthly dues.

Tytans Properties topped off towers A and B with 256 units yesterday as well as broke ground for tower C which has 196 units.

According to HRRAC in a March 30, 2016 report, Cebu has at least 7,000 four star and five star accommodations.

However, the number could reach 10,000 rooms with lower star ratings and other accommodations are considered.

Tambuli Seaside Living, rising on an 11,000-square-meter property which used to host Tambuli Beach Resort in Barangay Buyong, Lapu-Lapu City, is a six-tower mixed-use development with a 200-meter beach front.

It will feature a 5,000-sq.-m. clubhouse, pool and other amenities such as a strip mall.

Tan said the six towers comprise phase one of the development, totaling 1,200 units. He added that they have a “masterplan” for phase two, which will have five towers, but no have no intention to carry it out yet.

He said that around 85 percent of unit owners are locals, most of whom have relatives abroad who convinced them to buy, while the rest are overseas Filipino workers or foreigners based in Hongkong, Singapore, Japan, Australia, and the USA.

Tan said units in towers A and B are set to be turned over by the second quarter of 2017. Units in both towers have been sold out while 93 percent of the units in tower C have been sold.

Montano Ty, Titans Properties chairman, said they plan to roll out the condotel program in the last quarter of next year.

“That is the earliest. We still have turnovers before that. If we are not ready, that’s going to be really bad for us,” he said.

When Tytans introduced Tambuli Seaside Living to the public in 2014, Ty said they were poised to become an investment destination, a second home, and a retirement place.

With powdery white sand and pristine blue waters fronting the property, Ty said they already have an advantage over their competitors.

Tytans Properties will be promoting their project at the 2016 Fiesta in America to be held in New Jersey, USA from August 13 to 14.

Read more: http://cebudailynews.inquirer.net/98642/condotel-units-to-add-more-rooms-for-tourists#ixzz4JIjrVfB3 

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Cebu Daily News:

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”.

http://www.mediahub360.com/virtual-tours/robinsons/final/amisa/index.html

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.

http://www.sunstar.com.ph/cebu/business/2013/01/25/sustained-momentum-264850

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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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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)

http://www.philstar.com/cebu-business/2013/01/25/900953/regular-cebu-guangzhou-charter-flights-set

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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.

http://www.sunstar.com.ph/cebu/business/2013/01/16/cebu-now-8th-outsourcing-list-263262

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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

Disclaimer
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.

http://www.sunstar.com.ph/cebu/local-news/2013/01/24/council-wants-6-month-moratorium-asks-depth-study-citicenter-264491

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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

AboitizLand to spend P8M for next Persimmon towers

CEBU, Philippines - After reaping positive sales performance from its condominium units at the Persimmon, the 1.4 hectare urban village project located in Mabolo, Aboitiz Land Inc., is now on the planning stage of building another two towers that would cost around P8 million of investment.
“We are on the planning stage now. Soon, we will announce the construction of two more towers of Permission,” said AboitizLand vice president for sales, marketing and customer service Pia Mantecon.
AboitizLand president Andoni Aboitiz said in an earlier interview that the company is spending at least P4 million for every tower. Now, Persimmon” has two twin-towers. All the 157 units at Tower 1 are already sold out, while the other tower with the same number of units is currently 40 percent taken.
Last Friday, AboitizLand formally opened the commercial component called “Persimmon Plus” a support facility which offers a total leasable area of 2,200 square meters.
At present, there are already seven merchants operating at “Persimmon Plus,” these include; Mr. Coffee, Happy Roaster Home Furnishing Store, Urban Indulgence Family Organic Spa and Salon, Softwash Laundromat, Cebu Trip Tours, and Flores fashion shop.
The Permission is the first condominium residential project of AboitizLand and is the first integrated urban village in Cebu.
The company announced earlier that it is spending P2 billion this year, to introduce more residential projects in Cebu, including expansions of its existing developments.
Bigger chunk of the capital expenditure (capex) allocation for this year will be poured on the expansion of “Persimmon.” The company will be spending about P400 million for the construction of each tower.
Aboitiz said the company is on the constant lookout available land, for other projects, especially for condominium developments, as it has seen a strong take up of condominium units in Cebu, since the company offered the Towers 1 &2 units to the market.
Part of the expenditure will also be used to construct the commercial segment of its high-end residential project in Talamban—the Pristina North, including the Town Houses component of the chic subdivision.
AboitizLand’s middle-range subdivision project in the Southern part of the City, Kishanta, will also be expanded next year, as take up sales is also starting to gain some ground, he said.
The company expects to complete all the 628 condominium units at 1.4 hectare Persimmon project located in Mabolo area soon.
“[We noted] good performance of [real estate] sales especially in the condominium market. Some years ago we made judgment call that Cebuanos will embrace condo living,” Aboitiz said adding that today, the condo market is hitting very strongly and the projects a more competitive market in the next few years.
“We are studying some areas and good properties [around Metro Cebu] for our future condominium development projects,” he said.

Source: The Freeman Cebu

Cebu City now Asia's top outsourcing city - survey

MANILA, Philippines - Cebu City emerged as Asia’s top outsourcing city, overtaking Chinese cities Shanghai and Beijing, a survey from one of the global outsourcing advisory firms showed yesterday.
Data from strategic advisory firm for global outsourcing and investments Tholons ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China. Three other Philippine cities were included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.
However, the survey showed that Makati City, the country’s leading business district has slipped from the survey as a good BPO destination. Tholons showed that Makati City is no longer in the list of Asian cities included in the Top 50 Global Emerging Outsourcing Countries.
 “It is unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom. The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Makati Vice Mayor Ernesto Mercado said.
He also noted that allied sectors like construction and real estate have also been affected.
“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado explained.
He said the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.
He also said the city government’s business support services have deteriorated, turning off many investors including BPO firms.
 “I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.
He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.
 “Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.

Source: The Philipp;ine Star

Metro Gaisano chain to employ Mandarin-speaking consultants

CEBU, Philippines - Anticipating an influx of Chinese tourists starting this year, the Metro Gaisano chain of department store and supermarkets is preparing to hire Mandarin-speaking sales consultants to specifically attend to this market.
Margaret Gaisano-Ang, whose family owns the Metro Gaisano chain of department stores and supermarket across the Philippines, said that the company recognizes the importance of the Chinese tourists market to the retail sector in the Philippines.
According to Gaisano-Ang, the number one interest of Chinese travelers is shopping, thus they are considered as one of the high-spender tourists to date.
“Shopping here is cheap for them. We are looking for sales people who speak Mandarin because of the Chinese market,” Gaisano-Ang said.
If not, Metro Gaisano chain will train sales people to learn Mandarin, in order to effective communicate with the Chinese travelers, especially that most of them do not speak or understand English.
The expected invasion of Chinese tourists to the Philippines, especially Cebu with the establishment of regular chartered flights from Guangzou to Cebu, is seen to fuel the retail sector.
Gaisano-Ang said Metro Gaisano chain, is taking advantage of this opportunity to immediately install “Chinese-tourists” friendly facilities in their stores, including the provision of Mandarin-speaking sales assistants.
Chinese tourists are not only regarded as “shopaholic” tourists, splurging on shopping, but they are also known as the invest-consumers, who buy bulk of products, for business purposes back home.
A travel expenditure of one Chinese tourist is equivalent to four to five tourists combined. This means, that Chinese visitors spend more than the traditional foreign tourists.
“Chinese [travelers] are either tourists or investors, they buy in bulk, that’s why in Hong Kong we call them ‘invest-consumers,” a Hong Kong based economist earlier said.
Gaisano-Ang, who also owns a travel agency, the Grand Holiday Travel and Tour Inc., said that Cebu is ready to accommodate the influx of Chinese tourists, starting this year.
DOT record showed that in 2004, there were only a total of 32 thousand Chinese travelers visited the Philippines. The figure ballooned to over 200 thousand last year, with the active promotion of the Philippines to attract Chinese tourists in different areas in China.
Each year, an average of 1.5 million to 1.3 million Chinese travels outside their country, large number of these travelers to go Thailand, as it has effectively marketed its tourism attractions to the Chinese market far way ahead than the Philippines.
Record showed that about 1.3 billion Chinese (and growing) is now starting to travel. About 50 million to 100 million can now afford to travel outside of their country, and regarded as the one of the highest tourist spenders.

Source: The Freeman Cebu

Hotel occupancy rate shows positive trend

CEBU, Philippines - Major business hotels in Cebu City see a positive trend in the occupancy rate for the first two months this year, which indicates that the world’s travel market is starting to move up.

Cebu Parklane International Hotel general manager Cenelyn Manguilimotan said that 2010 is a better year, although it is still too early to conclude.

The hotel’s January to February average occupancy rate hit in an average of 65 percent to 68 percent respectively.

Likewise, Cebu City Marriott Hotel registered an encouraging average occupancy rate of 76 percent in the first two months of this year.

Cebu City Marriott Hotel general manager Roy Abraham said in an interview that city hotel business in hotel is now experiencing a positive trend.

“Business is very good for Cebu’s hospitality industry. We normally don’t have this high percentage on the month of February, but it seems that this month is the busiest compared to last year,” said Abraham.

Marriott’s number one foreign guest profile is the American nationals, although domestic guests still the major market occupants of the hotel.

Abraham noted that Chinese nationals, especially those from Mainland China, are an emerging visitor market for the hotel.

“We have noticed a good number of Chinese staying in the hotel this year. We haven’t seen this much Chinese guests in the last year,” he said, adding that Cebu’s hospitality industry is grateful for the efforts of the Department of Tourism (DoT) in pushing for more Chinese arrivals beginning with the direct chartered flights from China to Cebu.

On the other hand, Manguilimotan said Cebu-based hotels are now capitalizing on the bullishness displayed by Cebu’s tourism and business industries by attending international trade fairs and coming up with more value added services for their guests.

Parklane, for instance, has decided to bank on the global meetings, incentives, conventions and exhibitions (MICE) market. This coming March, Manguilimotan will be participating in the Middle East travel road-show conducted by the DoT, which aims to lure visitors from Saudi Arabia, Dubai, Kuwait, among others.

“City-based hotels will benefit more from the Middle East market compared to the Europeans because those in the Middle East love to shop. Given the proximity of the hotels in Cebu to the nearest shopping and entertainment centers, we hope we can take advantage of this market,” Manguilimotan said.

Abraham added that Marriott is also seeing increasing number of Indian visitors, but the transportation accessibility still the major concern among Indian tourists.

A good market to watch out for is the Chinese market, Abraham said adding “we haven’t seen this high Chinese arrival in the last two years.”

Generally, Abraham concluded that business is turning around this year, especially for global travel and this is good for Cebu’s economy in general.

Chartered flights to spur influx of Chinese tourists

CEBU

, Philippines - Thousands of Chinese tourists are expected to visit the different tourism sites in the Philippines with Cebu as the focal destination

point with the recent establishment of a- regular chartered flights organized jointly by Dong Fang Group of China, and Cebu Pacific Air (CEB).
The two entities will start these twice-a-week chartered flights this April 2010 making Cebu as the gateway for Chinese visitors to visit different destinations in Southern Philippines, especially in neighboring provinces of Cebu, Bohol, Palawan and Boracay Island.
Aside from Cebu Pacific, the Dong Fang Group, also inked partnership with Cebu-based travel agency—Grand Holiday Travel and Tours Inc., led by Margaret Gaisano-Ang.
According to Dong Fang Group chief operating officer (COO) Bu Wei Nian the two times a week chartered flights leaving Guangzou (China) to Cebu, there is now a growing interest of Chinese tourists to travel to the Philippines.
In the past two years, he said Philippines has been identified as one of the favorite vacation and leisure destinations among Chinese travelers.
Because of the proximity of China and the Philippines, and the attractive beaches and other come-ons, Chinese have become much more interest of the Philippines as their top pick vacation hub, although Thailand is still the number destination for Chinese travelers at present.
Each year, an average of 1.5 million to 1.3 million Chinese travel outside their country, large number of these travelers to go Thailand, as it has effectively marketed its tourism attractions to the Chinese market far way ahead than the Philippines.
However, he said that with the active stance of the Department of Tourism (DOT) in the Philippines to lure more Chinese tourists to visit to the Philippines, as well as the private sector, Philippines is beginning to gain popularity among Chinese travelers.
Alan Dino, senior vice president for Dong Fang Group Philippines, said that this partnership with Cebu Pacific and Grand Holiday Travel and Tours that will start this coming April 25, will run for a year.
“We are strong on all factors that draw Chinese tourists to a country. We have value-for-money destination packages, pervasive Chinese influences, and visa-upon-arrival for tourists,” said Eduardo Jarque Jr., Undersecretary for Tourism Planning and Promotions.
“We also position ourselves as a prime destination for Chinese couples wanting to have their wedding and honeymoon abroad,” Jarque further said.
Edwin Bautista, Cebu Pacific vice president for sales and marketing, the airline will utilize a 179-seater and 150-seater aircraft to service this Guangzou-Cebu and vice-versa chartered flight program.
Grand Holiday Travel and Tours Inc. president Margaret Gaisano-Ang said that Chinese tourists top three favorite activities once in Cebu aside from sight-seeing are shopping, relaxation (spa and wellness).
But, as the Chinese travelers have matured over the years, they are now also demanding for other adventurous activities, such as diving, among others.
Gaisano-Ang said Cebu’s economy will be well benefited by the influx of Chinese tourists as they are regarded at one of the highest spenders among foreign tourists’ groups.
Economist Nicholas Kwan, Standard Chartered Bank regional head of Research in Asia, earlier said that what is good in attracting Chinese, is they not only traveling as tourists, but also traveling as “invest-consumers” as most of them are shopping in bulk for business back in China.
A travel expenditure of one Chinese tourist is equivalent to four to five tourists combined. This means, that Chinese visitors spend more than the traditional foreign tourists.
“Chinese [travelers] are either tourists or investors, they buy in bulk, that’s why in Hong Kong we call them ‘invest-consumers’,” Kwan said.

Source: The Freeman Cebu