No takers yet for PTA properties

CEBU, Philippines - Investors who are looking for good tourism related investments should start looking at properties up for sale by the Philippine Tourism Authority (PTA), this as PTA properties in Cebu and Bohol have no takers yet.

PTA chairman Joseph Ace Durano downplayed impressions that acquiring state-owned properties could be hassle and laced with bureaucratic red tape, saying “we just disposed and turned over some PTA-owned properties like in Tacloban and Boracay.”

Durano specifically mentioned the Argao Beach Club as a good property, which investors should consider very seriously.

Aside from focusing on Mactan Island, Durano said Cebu has ample areas that can be developed as tourism destination to be established with accommodation facilities, or other tourism related structures.

“There are a lot of options that investors should consider. We are proving them wrong in thinking that government-owned properties are difficult to acquire,” Durano said.

Of the total 40 estates and eight operating tourism-related entities, three of which are located in Cebu, and one in Bohol that are open for “outright-purchase” deal to interested investors, he said.

As of this moment, interested investors of these properties are inclined for lease agreement, which is not in line with the government’s thrust for privatization.

The huge property formerly Argao Beach Club, the over 100-hectare PTA-owned Kan-Irag estate in Cebu, and also in Moalboal are being opened for sale to capitalists, especially those who wanted to develop an integrated retirement village or other related projects.

Aside from the Kan-Irag property, the Moalboal, and Argao Beach Club have no major problems, only some glitches on entitlement, informal settlers, which can be settled easily by the government once, interested buyers will come in.

The Kan-Irag properly which was initially developed by the Gotesco Group about 10 years ago, is facing legal battle, as the PTA is fighting to get back the its ownership.

There are now a number proposals submitted by different interested developers for these properties, including the Balicasag Islet in Bohol, but Durano said all the proposals offering a “lease-only” deal, but not property buy-out.

According to Durano, the PTA Board has decided to sell the properties, or go into joint venture with a private entity, in order to generate financial revenue, for the use of tourism infrastructure which is now the primary program of the government.

Of the P1.1 billion budget of PTA a year, only P300 million is left for infrastructure project, the rest or P800 million is spend to subsidize for maintenance and operations of these properties.

With the active stance of the government to dispose the PTA-owned properties, Durano assured that potential buyer, or investor shall not be confronted with so many documentary requirements.

Despite the government’s call to encourage investors to consider these PTA-owned properties, there are still no final takers especially for Cebu and Bohol.