ROOM supply in Metro Manila is reaching an all-time high and is exerting downward pressure on rates, but hoteliers are confident that the market will be able to absorb the increase and generate extra demand.
More than 4,000 rooms are slated to come on stream by this year-end, across all market segments.
Commenting on the likelihood of a price war, Gordon Aeria, general manager of Hotel Jen Manila, said: “There will be a slight pressure on rates but overall, I’m cautiously optimistic that there will be growth in tourist arrivals coming from the increasing awareness about the Philippines in the international market, more flights coming in, and a lot of things happening now in Manila than three years ago.
“These positive attributes will in some way offset oversupply. They will bring in the leisure and business travellers.”
Eugene Tamesis, director of sales and marketing, Raffles Makati and Fairmont Makati, said: “In a way, (the oversupply) complements the room demand into the city, since these new hotels are actively promoting the destination and expanding the marketing reach.”
Bruce Winton, general manager of Marriott Manila, which is adding 228 rooms towards this year-end, said the new rooms would be used to meet increased demand after the Marriott Grand Ballroom opens in May.
The hotel is not seeing the impact of increased hotel supply in Manila as it presently has no competition in its location near Manila’s international airport, though a Hilton and a Sheraton will open in the next few years.
At the same time, a travel consultant who declined to be named said the new hotels will ease the relatively high room rates in the city, leading to more realistic pricing and preventing shortages especially during peak season.
