Thursday, December 04, 2008 IT, tourism still ‘bright’
AN official of Ayala affiliate Cebu Holdings Inc. (CHI) yesterday expressed optimism in CHI properties and projects even as several major economies in the world go into recession.
CHI president Francis Monera admitted, though, that many sectors in Cebu and in the Philippines, in general, will be adopting a “wait-and-see” attitude next year as “we don’t know the extent of the (global) crisis.”
“But Cebu has very bright prospects with IT (information technology) and tourism,” he said in an interview following a press conference where CHI announced the grand opening of The Terraces at Ayala Center Cebu and the re-launching of the Cebu City Marriott Hotel on the company’s 20th anniversary on Dec. 15.
Monera said the expansion of the Ayala Center Cebu mall and the continued construction of new buildings at the Cebu Business Park (CBP) and the Asiatown IT Park, both in Cebu City, indicate CHI’s confidence in the local economy. He said the “fast take-up” of Amara North, where lots bear bigger price tags than the earlier phases of the upscale subdivision on the coast of Liloan, is also a positive market indication.
Growth
“Besides, the country’s economy is still forecast to grow; it might be slower but there is still growth,” he said.
General manager Roy Abraham of the Cebu City Marriott Hotel, another Ayala property in Cebu, echoed Monera’s optimism.
Abraham said Marriott continues to see growth in the business process outsourcing (BPO) industry, which would add to the business hotel’s occupancy.
Monera and Abraham’s expression of optimism come at the heels of the National Bureau of Economic Research’s report that the US economy has been in a recession since December 2007 and the International Air Transport Association’s announcement that international passenger traffic has declined in the past two months of this year.
A recession occurs when the gross domestic product, the total output of goods and services, declines for two consecutive quarters.
Monera said the US recession will have an effect on the Philippine economy, “but with Cebu being very resilient, and the Philippines expecting (economic) growth this year, there would still be opportunities. “We’ll have to take advantage of that growth,” he added.
Highest performance
“Cebu has a nice formula with IT and tourism. Aside from growth in the BPO (sector), domestic tourism is good in Cebu,” he said.
He pointed out that CHI’s financial performance this year is the “highest” in the company’s 20-year existence.
Clavel Tongco, Ayala Center Cebu senior division head, said foot traffic at the mall is increasing. Before the opening of The Terraces, she said, the mall accommodated an average of 60,000 people a day.
Tongco also said that car count at Ayala Center Cebu parking spaces alone increased by about 25 percent.
Abraham, on the other hand, said there are two areas in the travel market—tourism and business. He said leisure tourism may be experiencing some cuts amid the global financial crisis, “but business travelers will not go down because they (business people) would want to be in position when the economy makes a rebound.”
Marriott’s renovation is in line with its thrust to become the top business hotel in Cebu. Abraham said most of the hotel’s clients are executives from corporate organizations based in different parts of the country.
Monera and Abraham said that at the risk of sounding insensitive, they see the civil unrest in Thailand and terrorist attacks in Mumbai, India as having positive developments for Cebu.
Abraham said that with the completion of Marriott’s renovation this month, he expects the hotel’s occupancy rate to average at 75 to 76 percent. (LAP)
