High-end resort groups eye Balicasag venture

Three reputable resorts have plans of putting up a high-end resort at the Balicasag islet in Panglao, Bohol, this according to the Philippine Tourism Authority.

PTA chairman Joseph Ace Durano said that the Shangri-La Group, Banyan Tree Resorts, and Maribago Blue Waters, have already expressed interest to go into a joint venture with PTA, or buy the government-owned Balicasag property.

“These [resorts] groups are interested in Balicasag, but they have yet to go through the process,” Durano said.

PTA owns and manages a resort facility in Balicasag, of which Durano described as “still earning”. However, as part of the government’s thrust for privatization, PTA wants to dispose all its properties and assets for infrastructure project expenses.

Although, to sell is the primary option of PTA in these kinds of deal, he said there is a possibility that a joint venture deal will be pursued for Balicasag Islet resort operation.

Located off Panglao Island in Bohol, Balicasag Islet is a 25-hectare land. The island’s crystal blue waters provide a clear, vivid view of its corals, fishes and other marine life.

According to Durano, these two international resort chains see the potential of the islet because of its famous attraction for diving.

PTA, he said is now working to dispose its properties nationwide to come up with enough budget for infrastructure development.

 “We have so much estate including hotels and resorts for disposals,” he said.

 He said these properties would translate into a good amount of money to be used to improve infrastructure, rather than maintain the idle properties and spending at least P700 million subsidies a year for these PTA-managed and owned facilities and estates.

Of the P1.1 billion annual budget of PTA, only P300 million is set aside for infrastructure project, the rest or P800 million is spent to subsidize for maintenance and operations of these properties.

At present, the Balicasag Resort operation is earning enough only to break even with operational expenses, Durano said.

If the Shangri-La group will be able to get the property, it would be the third Shangri-La resort facility in the Visayas, next to Boracay and Mactan, Cebu.

Maribago Blue Water Group meanwhile is the operator of Sumilon Resort in the southern tip of Cebu.

Banyan Tree Group, on the other hand is the operator of five-star and luxury resorts in other countries, such as in Phuket, Thailand.

PTA has however, received several proposals from private entities that expressed interest to some of government-owned properties, but nothing has reached a purchase deal yet, all are only for “leasing” deals.