Cebu in the Philippines faces calls to diversify its tourism offerings after a disappointing year, according to industry experts.
At the recent Philippine Tourism and Hotel Investment Summit 2024 organised by the Philippine Hotel Owners Association (PHOA), an STR presentation revealed that while Cebu’s hotel rates boomed this year, it is still lacking in inbound demand.
STR data showed that Cebu is still lacking in inbound demand
STR senior director Asia Pacific, Jesper Palmqvist, further explained that occupancy rates were down to 56 per cent year-to-date in May, a big drop from the 78 per cent in 2018.
“Even if rates are back to historic levels, there’s just not enough international or domestic travellers – it’s a competitive reality as well in South-east Asia, with Phuket and Bali, for instance, growing quickly.”
Addressing the issue, Palmqvist said “diversity is key”, not just for Cebu but for the Philippines. “There is no one single market that replaces the Chinese market,” he opined.
China used to be Cebu’s biggest and the country’s second biggest inbound market, but instead of easing visa restrictions to encourage this market to return, the Philippine government further tightened its visa policies for Chinese visitors.
Palmqvist noted there are clear instances in South-east Asia showing that relaxing visas for Chinese helped tourism levels, as well as airlift, return fairly quickly. He pointed out there seems to be a deeper issue, as the country is missing the mark on its tourism priorities.
Concurring, C9 Hotelworks managing director Bill Barnett said that for Cebu, “it’s a lot about airlift and visas – you cannot stay there if you cannot get there”.
He emphasised: “The Philippines tends to brush off alternative markets like Russia, India and the Middle East… as they want Americans and Europeans.
“The issue is visa agreements – and the Philippine government is asleep at the wheel of tourism. They need to diversify the tourist mix, (which is) a big issue for legacy markets like Baguio, Cebu, and Boracay.”
Cebu in the Philippines faces calls to diversify its tourism offerings after a disappointing year, according to industry experts.
At the recent Philippine Tourism and Hotel Investment Summit 2024 organised by the Philippine Hotel Owners Association (PHOA), an STR presentation revealed that while Cebu’s hotel rates boomed this year, it is still lacking in inbound demand.
STR senior director Asia Pacific, Jesper Palmqvist, further explained that occupancy rates were down to 56 per cent year-to-date in May, a big drop from the 78 per cent in 2018.
“Even if rates are back to historic levels, there’s just not enough international or domestic travellers – it’s a competitive reality as well in South-east Asia, with Phuket and Bali, for instance, growing quickly.”
Addressing the issue, Palmqvist said “diversity is key”, not just for Cebu but for the Philippines. “There is no one single market that replaces the Chinese market,” he opined.
China used to be Cebu’s biggest and the country’s second biggest inbound market, but instead of easing visa restrictions to encourage this market to return, the Philippine government further tightened its visa policies for Chinese visitors.
Palmqvist noted there are clear instances in South-east Asia showing that relaxing visas for Chinese helped tourism levels, as well as airlift, return fairly quickly. He pointed out there seems to be a deeper issue, as the country is missing the mark on its tourism priorities.
Concurring, C9 Hotelworks managing director Bill Barnett said that for Cebu, “it’s a lot about airlift and visas – you cannot stay there if you cannot get there”.
He emphasised: “The Philippines tends to brush off alternative markets like Russia, India and the Middle East… as they want Americans and Europeans.
“The issue is visa agreements – and the Philippine government is asleep at the wheel of tourism. They need to diversify the tourist mix, (which is) a big issue for legacy markets like Baguio, Cebu, and Boracay.”