CEBU, Philippines — While hoteliers have lauded the efforts of the Provincial government in providing affordable credit facilities for rehabilitation, the Hotel Resort and Restaurant Association (HRRAC) is also calling on local government units (LGUs) to grant real estate tax renewal incentive to affected properties.
In an interview with HRRAC president Alfred Reyes, he said that each property has their own prerogative to access credit line for repairs and renovation, depending on which bank is offering the most attractive rate.
“We already sent the list of banks to our members. But it all depends on them if they avail of a loan or not,” said Reyes.
What is pressing now, he emphasize is the response of the LGUs in granting real estate tax renewal incentives to properties, which have been severely affected by the typhoon.
So far, he said Mandaue City government has offered 20 percent discount for real estate tax to affected properties and also other industries, “We are still waiting for Lapu-Lapu City and Cebu City for response.”
Weeks after the typhoon, Governor Gwendolyn Garcia convened players in tourism sector in Cebu, banking institutions dive shops and centers, sites and destinations, and DOT-accredited restaurants and have obtained Certificate of Compliance from the Province, as part of Garcia’s Enhanced Countryside Development Program to aid in the rehabilitation of the province’s tourism sector.
Garcia specifically asked the Philippine Veterans Bank, Development Bank of the Philippines and Land Bank of the Philippines to create a dedicated financing window for the tourism industry and offer loan financing with an interest rate not higher than five percent per annum.
Garcia requested the banks to make financial assistance as accessible as possible and ease the payment terms that they usually impose on their clients on normal times “because (where we are now) is not normal times.”
Reyes said HRRAC members are thankful for the Governor’s move, but decisions either to borrow from these banks depend on management decision of each property.
The hospitality sector in Cebu lost at least P3 billion in property damages due to typhoon Odette.
At least four big resort properties on Mactan Island declared temporary closure in the next 12 to 18 months to give way for repairs and renovations.