DOT checks on car rental arrangement

From overpricing of rent to the kinds of car available for rent for Asean Summit delegates, the Department of Tourism has tackled these matters to make sure that car rental firms in Cebu would not take undue advantage over the visitors.

Tourism undersecretary Phineas Alburo, in a recent forum on the DOT preparations for the summit, said the DOT would be inspecting these firms and their cars-for-rent and only those that have passed the criteria would be issued vehicle passes.

There were complaints that operators of cars-for-rent have taken advantage of the event and jacked up their usual rates.

It was learned that shipment cost of new cars, increase in insurance rates for bigger coverage as required for accreditation, uniforms for drivers, purchase of radio equipment, and cost for a 24-hour operation have caused the rental rate hike.

Alburo however said the rates here are even cheaper than in Manila. A 10-hour rent of a sedan in Cebu costs P4500 but in Manila, for the same car and duration, it is P4750. A van in Cebu can also be rented for 10 hours at P7000 but one could have it in Manila for P9500, he said.

"But if a company charges US $1000 per day for a vehicle, then that is something else," Alburo said.

The tourism official said that, due to the absence of a large car rental company in Cebu that could provide the transport needs of embassies, the Cebu Association of Car Rental Companies (CarCom) have moved to address this demand.

Alburo said there are only 400 cars-for-rent available in Cebu but most of these are sedans, of Nissan and Toyota brands, which could not meet the needs of embassies for high-end cars like Mercedes Benzes.

Embassies are to choose which company they want to provide them the cars-for-rent, which means that they could even get cars from firms that are not CarCom members, Alburo clarified.

The advantage of CarCom, however, is that it could replace any rented car that has bogged down. It would have a garage near the Shangri-la Hotel in Mactan operating in a 24-hour basis, according to Alburo.

Alburo thanked also Thompson Lantion, chairman of the Land Transportation Franchising and Regulatory Board, for approving the shipment of luxury cars from Manila to Cebu.

These cars would be issued temporary franchise permits for the duration of the summit. - Wenna A. Berondo/RAE