Betting on the mall game

Among the unintended consequences of the Middle East conflict, outbound travel and tourism have dropped drastically. More Filipinos are tightening their belts and opting to stay in the country and travel locally.

Traveling to nearby Hong Kong for a weekend shopping and eating vacation can now be considered a luxury at current prices, even with the availability of low-cost carriers now feeling the pinch as they grapple not only with the high cost of fuel, but even more importantly,  adequately securing availability of aviation jet fuel supply since the Strait of Hormuz remains “closed.”

Unfortunately, the high cost of fuel and the added cost of toll roads are also crimping the local travel plans of most Filipinos.

In the past, at least for me and my husband, we would have no second thoughts about driving up to Tagaytay, Cavite or Batangas for lunch and  spending  some time cooling off, just like most of  Mega Manila residents   who were used to driving out of town, especially since Tagaytay has always been the No. 1 weekend destination from the city center.

Similarly, driving to Bulacan, Pampanga or to Subic was also an indulgence that we would choose to do once a month to break the monotony of just staying in Mega Manila. Fuel prices were reasonable at that time, at least prior to the US-Israel attack on Iran that has triggered this three-month standoff and this global economic meltdown.

Summer, especially now with global warming and the unusually hot weather, is also the time most Filipinos drive to beach destinations in Batangas to the south, and Pangasinan to the north and up to Baguio for a cool weekend  or  a longer summer school vacation, stopping along the way to buy fruits, vegetables, bagoong, dried fish and whatever caught our fancy.

The weekend travelers also helped fuel the second or weekend vacation home for property developers and spurred the growth of mini malls outside Mega Manila.

The negative impact of  the Middle East conflict, however,  is hitting developing countries such as the Philippines more.

And so, the logical alternative, and thankfully so, is our local  malls. I have written several times about how I use the malls as my exercise track, with my  favorites being SM’s Mall of Asia Complex and Megamall, and Ayala Malls Manila Bay where I can easily log in my required daily number of steps while enjoying the cool air-conditioned mall and easily grab a bite, or two, or three while I do my daily routine.

SM Malls is, in my opinion,  the pioneer and leader in developing the mall culture of Filipinos. SM Megamall along EDSA in Mandaluyong was truly a destination when it first opened, bringing the concept of  food establishments and movie theaters within the malls.

But then they brought it up another notch and built the Mall of Asia complex, and which again, in my opinion, is the market leader. Even during the pandemic, the Sy family had the vision to reimagine and expand its MOA complex by building a roof deck football field and walking track! It is now a tourist destination and whenever anyone visits the complex, you will easily be lulled into the sense that Filipinos are in no way struggling with economic difficulties.

According to Tim Daniels, a consultant of SM Investments Corp., part of their commercial plans is to air-condition more of the connecting passageways, which would be a surefire way to attract more visitors.

On the other hand, Ayala Malls Makati still gets the credit for providing the high-end alternative of upscale and luxury shopping, even though SM Malls I believe has been able to wrestle away some of the luxury brands to its malls.

Malls are not just for shopping anymore, they are now prime eating destinations with a varied selection of both fast-food and regular restaurants, movie cinemas,  and community centers as well – where there are weekly themed exhibitions and activities for cosplay, sporting and art events, concerts and even car events in their parking garage.

Vital services such as beauty parlors, massage services, medical esthetic and dental services are available along with the usual shops. Hobbyists are also now able to find space in malls, as well as sports training centers.

Financial services such as remittance centers and banks have now conveniently put up branches in local malls. Government offices have also relocated to malls to better serve the people, providing an all-in-one location with photo and copying services nearby and ample parking space and food establishments to serve clients.

However, other property developers are now betting on the mall game to help prop up the slowing property sector, particularly the residential condominiums and office towers.

In a recent briefing by Robinsons Commercial REIT Inc. president Jericho Go, he acknowledged that the mall culture is ingrained in the Philippines. He also noted that Filipinos with limited resources and are not able to travel as much then turn to the malls.

According to Go, the malls are “the closest we can have to leisure and entertainment,” and people would thus go to malls, and where mall operators, such RLC malls, “hopefully we keep them there, we make them spend...for  graduations... anniversaries, birthday celebrations, baptism, everything, ...that’s why we have a chapel also. We have a chapel in our development. So it’s building community, creating community.”

Another property developer Filinvest Land Inc., in a recent article written by Richmond Mercurio for The STAR’s business section said, “FLI, the listed property arm of the Gotianun Group, sees strong growth prospects for its mall business, with the segment emerging as a major growth engine for the company,” with its president and chief executive officer  Tristan Las Marias saying,  “The mall business is no longer just a defensive buffer; it is a primary growth engine for the group.”