Hoteliers feeling pinch of accommodation glut

CEBU, Philippines - Hotel operators are now feeling the effects of the growing condotel accommodations in Cebu, particularly the declining number of long staying guests.

 "Long staying guests are gone," said Cenelyn Manguilimotan, president of the Hotel, Resorts and Restaurant Association.

Manguilimotan admitted that competition between hotels is tougher now, while newer hotels are being built and while condotel units have also increased.

She said the fast build-up of accommodations in Cebu has outgrown the arrival growth, thus there is a slight surplus of room supply.

The "market squeeze" in Cebu's accommodation industry had been predicted in the last couple of years owing to the surge in hotel constructions within Metro Cebu.

Former HRRAC president Hans Hauri said earlier that hotel players are concerned of the entry of condotel business in Cebu, considering that the city or the province in general is still facing and over-supply of rooms.

However, he said this concern can easily be addressed if tourism stakeholders in both government and private sectors will strengthen their efforts to further promote Cebu as an all-season destination for both business and leisure.

Hauri said although he supports the concept that "room supply should be ahead of the market", Cebu needs to start developing new markets now, specifically in taking advantage of the huge local and international MICE (Meetings, Incentives, Conference, and Exhibitions) market.

According to Hauri, as Cebu room accommodation increased by 60 percent in the last couple of years, stakeholders should initiate efforts to avoid an alarming over-supply of hotel rooms, including the condotel accommodations.

Hauri, who is also the general manager of Marco Polo Plaza Cebu reiterated that there is a dire need for Cebu to attract more travelers, whether in leisure, conventions, and big events, so that hotel industry can sustain the business.

To date, there are close to 5,000 city hotel rooms available in Metro Cebu area, this excludes the accommodation offered by pension houses, and condotels. —(FREEMAN)