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:

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)

http://www.sunstar.com.ph/cebu/business/2013/01/24/cebu-pacific-flew-11-more-passengers-12-264644

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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”.

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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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)

http://www.philstar.com/cebu-business/2013/01/25/900950/cebu-tourism-players-brace-chinese-market-rebound

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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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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.

http://www.philstar.com/business/2013/01/24/900336/rlc-launch-6-new-projects

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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.

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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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)

http://www.philstar.com/business/2013/01/24/900345/cbre-sees-increase-luxury-property-devt-tourist-areas

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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

Vista Land sets 22 new projects under Camella brand

MANILA, Philippines - Capitalizing on strong demand for affordable housing, Vista Land & Lifescapes Inc. has lined up 22 new projects this year under the Camella brand, translating to 17,500 new units located all over the country.
In a statement, Vista Land said the move is aimed at further cementing Camella  Homes & Communities’ dominant position in the affordable housing segment and boost its total portfolio to 97 projects nationwide.
Camella president Maribeth Tolentino said these new projects will be put up in various areas in Mega Manila as well as in key provinces and cities outside Luzon such as Cebu, Iloilo, Tacloban, Cagayan de Oro, Davao and Gen. Santos.
“We are leveraging the bigness of Camella, in terms of geographical reach, land banking, contribution to group sales, number of houses built and other key attributes, to achieve two aims more effectively. One is to be the first choice of home buyers on the basis of long-term satisfaction based on enduring quality and value. The other is to achieve higher levels of financial and operational efficiencies, and thus profitability,” she said.
Tolentino said the company, which has been providing value for money homes in master-planned communities for over 30 years, is targeting overseas Filipino workers who want to buy a house of their own.
Vista Land has earmarked P10 billion for capital expenditures this year for the launch of 30 new projects and landbanking activities. This would bring the group’s total number of projects to 157 , widely dispersed in 19 provinces and 46 cities and municipalities
Vista Land has built the largest number of homes among all local developers, a total of more than 200,000. Other companies under its wing include Brittany, which builds high-end communities; Crown Asia, focusing on the mid-range category; Communities Philippines, which develops projects in the provinces; and Vista Residences, the newly launched company and brand name which consolidates all of the group’s residential condominium projects.

Source: The Philippine Star

GMA inks land titling, tax info sharing laws

TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.
Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.

"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.

It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.

The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.

Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.

While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.

Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.

It amended Commonwealth Act 141 or the Public Land Act.

The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.

It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.

Landowners, however, will only be given titles as long as the land will be used for commercial purposes.

Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.

"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday.

Source: Businessworld Online

Consumers warned vs low-quality cement

IMPORTED cement now being used in construction projects in Metro Manila is substandard and
was brought into the country without proper clearance from the government, a consumer
advocate warned.
“Cement imported from Vietnam is now being used without the required Import Commodity
Clearance [ICC] from the Department of Trade and Industry [DTI],” said Adrian Sison, a lawyer
known for his proconsumer advocacies.
Before an ICC is granted, the commodity being imported has to pass certain quality tests to
ensure that it will not endanger consumer welfare and safety, Sison explained.
Sison said an importer has already used the cement in a construction site on Tatalon Street,
Ugong, Valenzuela City, without any ICC. What is worse, he said, is that there are reports that
the cement used failed the quality test that the DTI conducted.
The cement bags, he pointed out, are also without the proper markings required by the DTI to
guide consumers on the product’s proper use. This enables the government to track the identity
of the manufacturer, who can be held accountable for any problems arising from the cement’s
use. These bags are also not in the 40-kilogram bags as required by law.
Sison pointed out that the cement in question was stored in a place different from what is being
claimed, thus making government monitoring of this particular cement shipment
difficult—constituting a third violation, the lawyer said.
Sison alerted the DTI of a similar cement importation in May last year. He is now again calling
the attention of the department to look into what he noted are violations of the law, as well as
DTI trading rules, in order to protect consumer welfare and safety.

Source: The Businessmirror Online

Real estate loans rise in ‘09

UNIVERSAL, commercial and thrift banks increased their exposure to the real estate sector in 2009 by extending more loans, central bank data showed.
Data released on Friday showed that total exposure of these lenders to the real estate sector reached P393.6 billion as of December, up by 9.4% from the previous year.

Universal and commercial banks accounted for almost three quarters of the total, while thrift lenders accounted for the balance.

“The additional exposure came primarily from real estate loans, which rose [by 9.67% year-on-year] to P383.7 billion,” a statement from the Bangko Sentral ng Pilipinas (BSP) explained.

“Investments in [debt and equity] securities issued by real estate companies also expanded by 1% to P9.9 billion.”

Total real estate exposure as ratio of banks’ total loans excluding loans they made between themselves rose to 14.47% from 13.96% from a year ago.

But Victor J. Asuncion, director for research and consultancy at CB Richard Ellis Philippines, Inc., downplayed the figures, pointing out that while loans to the real estate sector have been growing, the rise has been tempered by other funding sources available to developers.

“Real estate developers, if they can help it, don’t want to borrow from banks anymore... because loans that have floating rates make their borrowing costs more volatile... [Bank loans] are still a part of funding sources, but no longer the primary one,” he said.

Mr. Asuncion added that property companies prefer to fund projects with equity, bonds or from pre-selling projects, and the share of bank loans as a funding source could go down with the introduction of real estate investment trusts or REIT, a company that pools funds and invests these in properties.

Central bank data also showed that real estate loans for construction and development of commercial properties accounted for nearly three-fifths of total real estate loans at P221.1 billion, while the balance was granted for the construction or improvement of residential units by individual borrowers.

Of total real estate loans granted by universal and commercial banks, 73.7% or P203.1 billion were directed to commercial projects, while the balance of P72.6 billion went to residential purposes.

Thrift banks lent out P90 billion to finance the acquisition, improvement or construction of residential units for households, and provided only P18 billion for commercial real estate loans.

Soured real estate loans rose to P23.18 billion from last year’s P22.83 billion, but as percentage of total real estate loans, slid to 6.04% in December from 6.53% a year ago because of a higher growth in loans.

In February, BSP Deputy Governor Diwa C. Guinigundo said monetary authorities may further limit banks’ exposure to the real estate sector from the current 20% of total loans as a way of controlling excessive foreign capital flows that may stoke an asset price bubble.

The deputy governor noted that the central bank had done this before when it limited banks’ exposure to the real estate industry to 20% from 30% after the Asian financial crisis in 1997.

He said that while an asset bubble is unlikely to emerge in the Philippines, this policy tool is available to the BSP in case a slower than expected recovery in developed markets prompts investors to seek higher yields in emerging economies.

Source:  Businessworld Online

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