Rise in hotel rates ‘normal’

CEBU, Philippines - The Asia-Pacific Economic Cooperation national organizing council said it sees no irregularities in the rise of hotel rates in Cebu, concurring that what was earlier deemed “excessive” hotel rates are actually aligned with the hotels’ global network standards.

"We have been informed that certain accredited hotels for the Senior Officials' Meeting scheduled to be held in Cebu in September have quoted significantly higher rates. We have verified that such rate-setting is market-driven and is aligned with rates charged by hotels that are part of their global networks," Ambassador Marciano Paynor Jr., director general of the APEC 2015 NOC, said in a statement.

The statement was in response to the collective explanation report of Cebu hotels on the alleged exorbitant rates posted by some establishments, some by as much as 120 percent from earlier published rates.

The hike in hotel rates in Cebu was disclosed by Foreign Undersecretary Laura del Rosario, who last week briefed government officers and local media about APEC.

Del Rosario said when some delegates checked the published rates online last August 5, a superior room at the Radisson Blu went for P5,800; a deluxe room at Marco Polo Plaza at P4,530 and the same room class in Marriott Hotel costs P5,000.

But, when the delegates tried to book on the dates of the APEC meetings, the same rooms now cost P13,500; P11,000 and P13,800, respectively.

Nine hotels have been accredited for the delegates of the Cebu ministerial meetings here starting this month to September, but there are also 30 more hotels to choose from.

“The conference venues were chosen in accordance with international standards and the list of accredited hotels was drawn up to provide participants a wide range of choices,” read the NOC statement.

Lito Maderazo, APEC Cebu Organizing Committee overall coordinator, explained the matter of rate fixing was explained as “an industry practice,” citing the rule on supply and demand. He said they cannot impose price changes on hotels, but can only ask hotels to understand the context of APEC.

Paynor assured that those who opt to stay in hotels other than those used as conference venues will be provided shuttle services for their convenience.

Supply  and  demand

"Wherever you go, when there is demand of a product or a service, prices will go up. It’s a natural reaction. There is nothing alarming about it," said hotelier Robert Lim Joseph.

Joseph, who is also chairman of the Network of Independent Travel Agencies said that hotels, as a business, should make sure that they get the right return of investment, considering that they invested heavily to prepare for the APEC.

Joseph further explained that preparations for the country's APEC hosting, including accommodations, were planned way ahead in 2012.

"We should also understand that these hotels will also block off their rooms from their regular guests. What if there is no-show? Who will pay for rooms?" Joseph said.

“Rescue operation”  okay

Meanwhile, Cebu Archbishop Jose Palma subscribes to the government’s initiative to “rescue” mendicants from the streets leading to APEC and 2016 International Eucharistic Congress gatherings. But he reminded government officials to place them in safe places as well as reaching out to them in a “better way.”

He clarified rescuing them does not mean that the government and the Church are ashamed of them, stressing that poor should neither be rejected nor forgotten. 

“I trust that the government must have discerned but ayaw ikauwaw. On the other hand kun naay pamaagi nga matabangan sila to have more safe areas to stay than streets which are not the best venue for them. I subscribe to that,” he said.

Cebu will also play host to over 3,000 delegates from APEC member-economies starting August 22 to September 6 for the third Senior Officials’ Meeting. Four ministerial meetings are also set to be held in Cebu. These are on structural reform (September 7 to 8), finance (September 10 to 11), transportation (October 8 to 10), and energy (October 12 to 14). —/BRP (FREEMAN)