Waterfront to meet econ rebound with expansion

CEBU, Philippines - The tough competition among City hotels in Cebu, and the introduction of newer facilities have prompted Waterfront Cebu City Hotel and Casino to embark on a multi-million-peso renovation program by the third quarter of this year.

“We already got the go signal to finalize our third wave renovation program,” said Waterfront Hotels general manager for Visayas and Mindanao Marco Protacio in a press conference.

The renovation program will reinforce the hotel’s leadership in attracting the Meetings, Incentives, Conventions/Conferences and Exhibitions (MICE) market in Cebu, which is now affected by the global recession.

According to Protacio the hotel, which is owned and managed by the Gatchalian-controlled Waterfront Philippines Inc. (WPI), will improve the facilities of the hotels with the renovation of the lobby, standard rooms, and establishments of more support facilities such as Urban Spa, Call Center, more function rooms, gym, among others.

Protacio admitted that the MICE market for Cebu has declined in the last few months while companies have streamlined or postponed their conferences and events because of the crisis.

Although the MICE market in Cebu is still in “pretty much” stable level, but he said Cebu is “missing some big conventions.”

“Because of economic reasons, the budget of big companies for conventions and conferences are put on hold, even big firms’ parties. People are holding on to their money now,” Protacio said.

Nevertheless, Protacio said Waterfront Cebu City Hotel and Casino is preparing for the rebound of MICE market especially in next year’s national election and expecting to grow as much as 40 percent for its MICE bookings and occupancy.

Hopefully, he said Cebu will have good MICE bookings these coming peak months from September-October and November, while the economy is showing recovery.

He said Waterfront has decided to renovate, after the last renovation during the ASEAN Summit in 2006, while more new hotels have come up and Waterfront will also have to keep up with the competition.

For City Hotels, Protacio said Cebu is no longer suffering from room shortage saying “we have more than enough rooms.” That is why the industry has to put their hands together and strengthen the strength of Cebu as MICE destination.

The 561-room flagship hotel of WPI, is now running at an average of 67 percent occupancy rate, a little percentage decrease from last year’s the same period.

However, Protacio said Waterfront is still performing above the average industry rate which is at 60 percent to 65 percent.

The additional 500 City hotel rooms that opened in Cebu City this year, has also pose a challenge for the industry players to improve the marketing of Cebu as MICE destination.

In 2007, Waterfront Cebu City Hotel and Casino, its flagship property contributed a p732.4 million revenue to the WPI, a 39 percent share from the company’s total revenue income for that year.