Islands Group sets 2011 capex budget at P50M

CEBU, Philippines - Expressing upbeat projection of Cebu’s tourism industry in the next few years, the Islands Group of Companies is allocating at least P50 million to P70 million capital expenditure (capex) for 2011.

Islands Group president and chief executive officer (CEO) Jay P. Aldeguer said that the capex will be spent on the expansion of its existing subsidiaries, such as establishment of the phase 2 project of the Talima Adventure Park, opening more Islands Souvenir stores in the country, and a new venture that will be announced early 2011.

The company put its strong confidence on the tourism industry’s dynamism, despite the occasional hitches, and problems, saying “there are only few industries that the Philippines can excel—these are BPO [Business Process Outsourcing] and tourism.”

Although, Aldeguer admitted that the Philippines still has to work double time in achieving its full potential in the tourism market, he said when the private sector will continue to invest on tourism and put its confidence in the sector despite problems, “the government is going to make tourism work.”

Next year, the company is going to add more Island Souvenir stores across the country, including five franchise stores that will be opened in the first half of 2011 in Baguio and Palawan.

Currently, there are a total of 98 Island Souvenir stores nationwide. Today, aside from offering traditional souvenir shirts, and other items unique to its host-destination, the company enjoys the sustained market dynamism of it’s “I love (heart)” personalized shirts that now continues to offer innovative designs and concepts.

“The ‘I love [heart]’ personalized shirts is still picking up since we introduced this campaign in early 2010, because we continue to offer another facets of the promo,” Aldeguer said.

Also, the company is going to spend in acquiring eight island hopping boats, for its Island Banca Cruise operation, as this particular operation registered good performance, despite threats of weather unpredictability, and other calamities.

In May of this year, the Group spent P30 million for the creation of Cebu’s first water island-based water adventure park at Barangay Talima in Olango Island.

The facility, which spans 1.5-hectare of land and water, will offer both land and water adventure activities from kayaking, rock climbing, “glamour camping,” among others.

A major attraction for the water adventure is the inflatable, which are US-certified for safety. It is ideal for use among children and adults.

By 2011, Aldeguer said Islands Group will start the construction of the Talima Adventure Park phase 2 that will offer more land-based activities to add up to its existing offers.

He said the company is anticipating an exciting year for its tourism-related businesses next year, as the company is going to launch another venture by February, which is going to re-enforce and add excitement its existing business.

Aldeguer on the other hand, refused to provide details of the upcoming new venture, he only said that the new offering will fill in the gap of providing tourism-related services specifically in Cebu.