Tourism prospects looking up

Dusit Thani Manila general manager Prateek Kumar is absolutely gung-ho about tourism in the Philippines, with several new hotels popping up especially in Makati’s business district. New players include the luxurious Raffles and Fairmont hotels whose location right in the heart of Ayala Commercial Center make them very convenient to visitors, with shopping and dining as additional attractions. Then there’s also the Holiday Inn Makati located in Glorietta, with a few more soon to see construction at the Fort in Taguig like the Grand Hyatt and Shangri-La. 

No one will argue the importance of the tourism sector’s contribution to the country’s economy, with many even saying it is the key that would unlock the Philippines’ economic future. But the lack of hotel rooms has been one of the reasons why foreign visitors have opted for other Asian countries as destination. Prateek also noted the huge potential coming from the Entertainment City project in Parañaque, with the mixed-use concept of the hotel-casino-resort projects sure to draw in more visitors.

One of them is the Solaire Manila hotel resort and casino bankrolled by “Ports King” Ricky Razon and whose construction is now in full swing, in time for its expected opening early next year. In fact, Solaire Manila recently conducted its second job fair, with over 4,000 various positions needed to man the hotel, gaming center, restaurants and other facilities in the huge, 16-hectare casino-resort complex. Naturally, the local governments of Parañaque and Pasay welcome the Entertainment City project which is being touted as the next biggest thing in Asia as far as gaming and entertainment is concerned. 

The Philippines is targeting 10 million tourists by 2016 and despite some hiccups, the prospects are looking good. Prateek says an even greater surge can be expected once the Category 2 rating by the US Federal Aviation Administration is lifted since it will allow local airlines to expand flights to more destinations in the US and Europe. Other than limiting the flights of local carriers a Category 2 rating has also resulted in European travel agents shying away from the Philippines since travel insurance companies either refuse to cover flights to the Philippines via local carriers, or raise the premium for travel insurance coverage. 

One other point raised by Prateek has to do with the plan of Philippine Airlines president Ramon S. Ang to construct a new airport to decongest the Ninoy Aquino International Airport. Connectivity is important – something that the planned airport which will just be 15 minutes away from Manila will solve, making flying in accessible. Now if those two points are addressed, then the Tourism department’s projection of 10 million visitors by 2016 can easily be surpassed, the hotel executive said. 

Prateek Kumar certainly knows what he is talking about given his extensive experience in the luxury hotel industry, having worked for the Raffles Group, Starwood and the Renaissance Group prior to joining the Dusit Group which, incidentally, is looking at expanding its presence, eyeing a couple more hotels in the country.

DTI reacts

Trade Undersecretary and Board of Investments head Tito Panlilio, who is the point man that organizes the participation of businessmen for President Noynoy Aquino’s presidential trips abroad, reacted to our Sept. 27 column titled, “Have $3,000, will travel with PNoy.”  Tito clarified that the $3,000 is an estimated amount that would cover the costs for the transfers, accommodation, dinners and other activities they are planning to conduct for the President’s five-day official visit to Australia and New Zealand, pointing out that these countries in the itinerary are not exactly cheap, unlike the other presidential trips.

Tito added that similar to the past presidential trips, businessmen would get a refund for any unspent amount from the proposed $3,000 participation fee which is exactly what happened in past official business trips. And while participation will be by invitation only, he explained that the invitation has been extended to several major business groups in the country that include the Philippine Chamber of Commerce and Industry, Philippines, Inc., Makati Business Club and the Management Association of the Philippines – with the clear understanding that these businessmen/participants are also prepared to shoulder their own hotel and airline expenses.   

Tito Panlilio’s explanation is therefore crystal clear. 

In any case, there has really been a heightened interest in the Philippines among foreign investors who are looking at potential businesses in the country, and one of the industries being eyed specially by Australians is the mining sector which has been a major contributor to the Australian economy. 

Spy tidbit

In spite of the slowdown and the struggle with stagnant prices in the global real estate industry, high-end luxury projects in the country such as the Trump Tower Manila at the Century City continue to be attractive with almost all of its 220 units already sold, with a significant number of the units taken by Singaporeans, Europeans and Americans.

Century Properties is certainly on a roll with close to 90 percent of the units in its four flagship projects namely Century City, Azure, Acqua and The Residences at Commonwealth City already sold. Construction for Gramercy Residences also in Century City is expected for completion by year-end while several more developments for the next three years are in the pipeline.

The very liquid property developer (over P10 billion in cash) is also branching out into the retail business via its Century City Mall, with the planned five-story building (with a gross floor area of 50,000 square meters) expected to rise by 2013. 

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