Time to build new hotels

Posted on November 3rd, 2008

THE current turmoil in the global economy—triggered by the credit problem in the United States and aggravated by the spikes in energy and commodity prices—has created opportunities that the Philippines can explore and exploit.

One is the tourism industry. It had been showing strong growth even before the global crises. We breached the 3-million mark in the number of tourist arrivals last year, and now the Department of Tourism (DOT) is targeting 3.5 million this year. So far, the number of visitors continues to grow.

The worldwide financial slowdown has been changing the lifestyles of people even in developed countries.

One of the changes is the taking of vacations in places closer to home—to minimize expenses without foregoing much-needed rest and respite from stress and work.

China, for instance, is emerging as the world’s biggest source of tourists. They would prefer to visit the Philippines, just a few hours away, than the American or European continent.

Nevertheless, we still continue to get a lot of visitors from the United States and we are being noticed by high-end tourists from Europe, who, I understand, are among the big spenders in the Philippines.

According to the DOT, the European markets outpaced the growth rates registered by other tourist sources from January to July this year. Arrivals from the Russia Federation grew 35 percent; France, 26 percent; Spain, 22 percent; and the United Kingdom, 18 percent. The Scandinavian market, comprising Denmark, Finland, Norway and Sweden, recorded a 16-percent jump in tourist arrivals.

That’s one of the opportunities that the global crises opened for us—an opportunity to increase tourist arrivals not just up to the 5-million target for 2010, but possibly even up to 10 million.

But now we hear complaints from tourism officials that we don’t have enough hotel rooms to accommodate more than 4.2 million visitors. We continue to promote our beaches and other attractions, but we don’t have enough rooms for visitors to stay?

We should be happy that our hotels are enjoying high occupancy rates, but it is regrettable when visitors are being turned away because there is no room available. Just imagine the loss of revenues!

This is an example of lack of foresight, but I would prefer to be constructive than to lay the blame on anybody. What should we do?

The private sector has shown what should be done: build more hotels. It is commendable that local property companies have initiated joint-venture projects with foreign partners to build hotels and develop recreation and entertainment complexes.

The government can help. Not by competing in terms of going into hotel construction itself, but by encouraging tie-ups among domestic investors or between domestic and foreign investors in hotel development.

I believe that there are a lot of Filipinos here and abroad who have resources, but they are still unaware of the opportunities in the tourism industry or how to invest. On the other hand, there are local developers that have the competence and capability to build hotels and other tourist facilities, but not the resources to finance such projects.

The government can play the role of matchmaker to bring these developers and prospective investors together.

The incentives are already in place. We don’t have to pass new laws to encourage hotel construction and other tourism-related projects. The biggest incentive to hotel construction is the big demand from tourists waiting to come to the Philippines.

I must stress that tourism is also a multiplier-effect industry. It generates employment and revenue through a chain of related businesses. It is already an important driver for the real-estate industry, which has been booming since late 2004, and that boom has yet to subside, thanks, in large part, to the continuing growth of tourism.

And so, as I said, the global crises have brought some blessings for our country, at least for the tourism industry, but these will come to naught if we don’t exploit them now.

We should not just sit and watch tourists pass us by and go to other countries. We should speed up the construction of hotel rooms and other accommodation facilities for them.

The private sector has launched the initiative, but its resources are limited. The government should provide the boost to make big hotels happen fast!


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2 Responses to “Time to build new hotels

  • 1
    Teng
    January 14th, 2009 07:10

    Dapat i-prioritize at i-expedite ang mga infrastructure projects (para makatulong ma-resolve ang traffic jams sa mga cities) at ganoon din ang priority to open up ang mga airports (NAIA 3, DMIA, Palawan, Bohol, Bicol, Cebu, Ilokos, Davao) para tumanggap ng mga foreign tourists.

    Ngayon palang 2009 magkaroon na ng training ng mga tao – at dapat hindi lang iyong mga bata bata ang i-train para makadevelop pa lalo ng skills para makatulong sa tourism dapat pati na rin iyong mga may edad na rin para naman productive din sila (lalo na iyong ibang OFWs na bumalik sa Pilipinas) tapos puwede silang i-hire. Napakaraming trabaho na puwedeng i-create – para i-maintain ang kalinisan at kaayusan ng kapaligiran.

    Mayroon lang akong napansin sa mga bangkero sa Pagsanjan or sa iba pang mga tourists areas (kahit sa Ferry ng nagcruise sa Pasig River) mayroon pa ring mga Pinoy na nagtatapon ng sigarilyo sa ilog, Dapat ipagbawal ang paninigarilyo na malapit sa dagat, ilog, bay, etc.

    Dapat madalian ang waste water treatment plants sa mga cities (lalo na sa Metro Manila, Metro Cebu, Bicol, Ilokos, Bohol, Davao). Kapag luminis na lalo ang mga rivers and lakes na nasa sa mga cities, am sure hindi lang foreign tourists ang dadagsa pati na rin ang mga local tourists.
    Pag dumami ang mga tourists subsequently maggegenerate din ito ng employment opportunities sa maraming Pilipino.

    Dapat pagibayuhin pa ng media or kahit iyong mga celebrities at mga mayayaman, mga leaders sa atin na i-encourage ang kapwa nila na visitahin ang ibat ibang magagandang lugar sa Pilipinas.

    Kung iyong mga cities natin whether sa Metro Manila man or sa Metro Cebu ay magiging katulad lang at kasing linis at kasing secured ng Forbes Park, Dasmarinas Village, Marikina City – maniniwala ako na dadayuhin talaga tayo ng maraming maraming mga de kalidad na turista. Given na iyong napakarami nating magagandang lugar pero pag nakita naman nila na mausok, hindi malinis ang tubig at hangin sa mga cities natin sa palagay kaya natin babalik pa sila.

    Magkaisa dapat iyong mga maraming mayayaman sa atin at tumulong sa paglilinis ng mga siyudad at makiisa sa pagtulong sa mga organization katulad ng Gawad Kalinga, etc. implementation of CARP para mas maraming farmers ang matutulungan.

    Dapat iyong rates ng mga hotels sa atin dapat very very reasonable and competitive.

    Fire safety drills at dapat compliance sa fire safety standards sa mga hotels at dapat may space sa mga trees and plants ang surrounding ng hotel para attractive. mayroon din dapat magandang view ng city roof man ito ng hotel or restaurant area.

    Sa mga cities dapat may mga parks na mapapasyalan – dapat may mga trees, flowers, at well maintained at manicured landscapes.

    Promote Philippines organic farming.

    Promote Philippines Herbal supplements.

    God bless the Filipinos and the Philippines!

  • 2
    Teng
    January 14th, 2009 07:35

    Pahabol:

    Dapat ipatupad na rin ang pag-gamit ng mga electric tricyles at electric jeepneys sa mga cities para hindi rin dagdag sa pollution.

    Pagtanggal ng mga squatters na malamit sa airports, at sa mga rivers, lakes, and then i-relocate sila appropriately. Kung iyong malalaking company along Pasig river at Laguna bay ay mga nagbubuga ng mga pollutants dapat i-relocate din sila.

    Kailan kaya i-rerelocate iyong mga malalaking oil companies along Pasig river.

    Build bridges between Mandaluyong and Sta. Ana, Mandaluyong and Makati, Pasig and Taguig (as an alternate routes para ma-ease ang traffic sa EDSA), luwagan at i-extend ang existing bridge between Mandaluyong and Makati dapat gawing 8 lanes.

    Dapat iyong mga bus stops (possibly BRT para nakakasakay rin iyong mga disabled) ipatupad lalong lalo na sa mga main roads.

    Walkways and pathways – kaso maraming mga kotse ang nakapark so wala rin dada-anan ang mga tao sa paglalakad at pagbabike.

    Thumbs up kay Mr. Bayani Fernando! Although marami pang dapat gawin.

    God bless the Philippines!



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