Quality as business strategy, Raffles & Fairmont grand opening, Ayala to build 4,000 new hotel rooms in three years

Of course great hotels have always been social ideas, flawless mirrors to the particular societies they service. —Joan Didion

For the first time in two decades, on Feb. 7, Makati City welcomed new luxury hotels with the grand opening of the 32-suite Raffles Hotel and 280-room Fairmont Hotel by the Ayala Group. They’re located across the street from the Greenbelt malls. Makati Shangri-La Hotel opened in April 1993, located across Glorietta mall.

A ‘coming-out party for the Philippines’

Raffles of Singapore and Fairmont of Canada are globally renowned luxury hotel brands, and their opening — after four years of construction — is a major boost to Philippine tourism. Microtel Inns & Suites (Pilipinas), Inc. president Jose Mari del Rosario said, “I would say this grand opening of Raffles and Fairmont — it’s a coming-out party for the Philippines after a generation. The time of the Philippines has come. For the two prestigious foreign hotel chains to put their money here, this is symbolic, in tandem with the Ayala Group. Even if you have all the money, but if foreigners don’t want to open here, you can’t do anything.”

The festive black-tie grand opening extravaganza was attended by guest of honor, Tourism Secretary Ramon “Mon” Jimenez. Also present were numerous VIP guests from government, the diplomatic corps and the business sector, such as Finance Secretary Cesar Purisima (who says the Philippine economy is going to sustain high growth) and others.

Welcoming Secretary Mon Jimenez and the guests were Ayala Corporation chairman emeritus Don Jaime Zobel de Ayala and his wife Bea Zobel, Ayala Corporation chairman Jaime Augusto Zobel de Ayala, Ayala Land chairman Fernando Zobel de Ayala, Ayala Land president Antonino Aquino, Raffles Hotels and Resorts president Peter French, Fairmont Hotels and Resorts president Jennifer Fox and Raffles and Fairmont Makati managing director Tom Meyer.

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‘Quality is not the objective, it is the strategy’

In his well-received speech at the Raffles and Fairmont grand opening ceremony, Tourism Secretary Mon Jimenez issued a thought-provoking challenge, not only to the tourism industry but to the whole Philippine economic sector as well — raise the bar in terms of quality, don’t just focus on price. Here is his speech:

“A few days ago, I was at a meeting with people in the tourism business when someone brought up one of the more contentious issues around Philippine tourism. There is a growing complaint that we are too expensive.

“My response surprised many of them. I said: ‘Price is always relative. If you are high-priced, make sure you are worth the premium. If you aren’t worth the premium, drop your price or upgrade your offering.’ That is all: Quality is always the right way to go.

“The two brands we welcome today are exemplars of the very comfortable fit between quality and price. It is a paradigm that has significance, not just for Philippine tourism, but also when you think about it, for the whole Philippine economy.

“You mention the name Raffles and a rush of images flood your mind. High tea in an elegant setting reminiscent of an era when luxury was just another term for the way high tea should be done. Billiard rooms. Foie gras brunches.

“You drop the name Fairmont and you see a grand mansion at the top of a hill, flags waving majestically over the driveway. And, closer to Manila, elegant rooms that look out over a dynamic city that handles the deafening roar of traffic.

“Makati, the Philippines, is now the proud site for this legendary pair of brand leaders. As you can imagine, the same people that visualized the rise of this city as the pride of urban development in the Philippines, they have made yet another astute business decision.

“Yes, some people know how to be worth the premium. Some people know that quality is not the objective; it is the strategy.

“Our special devotion to quality will be the key to tourism growth for the Philippines. I’ve said it before and I will say it again: Raising demand is the easy part of our job. The hard part is to be worth the trip, to be worth the attention, to be worth the price.

“President Benigno Aquino III is a genius at calling a spade a spade. He never fails to remind me that we know we’re ready for a real tourism boom when we are not merely visited once but twice, when people not only come but come back.

“Tough job I have. Tough job we have. Good thing we know how to have fun while we’re doing it. Congratulations, Raffles. Congratulations, Fairmont. Thank you for joining in the fun.”

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4,000 New hotel & resort rooms in three years

In an exclusive interview with The Philippine STAR just before the Raffles and Fairmont Hotels’ festivities started, AyalaLand Hotels and Resorts Corporation president Jose Emmanuel “Junie” H. Jalandoni said, “We are targeting to open 4,000 hotel and resort rooms within three years all over the Philippines.”

He added: “In December last year, we opened Seda Hotel in Bonifacio Global City, then before the new year we opened Seda Hotel Cagayan de Oro. In March 2013, we will open Seda Hotel Davao. We are soon also opening Holiday Inn & Suites atop the new Glorietta in Makati. We are bullish about Philippine tourism and our economic future.”

The original brand name of the Ayala Group’s affordable urban lifestyle hotels was Kukun, but changed in late 2012 to Seda — derived from the Spanish word for “silk.”

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Camille Villar to take MBA in Barcelona

Camille Villar, only daughter of billionaire Senator Manny Villar and senatorial bet Cynthia Villar, is going this week to Barcelona in Spain to take up her master’s in business administration (MBA).

Former banker Cynthia Villar said: “If given a choice whether to bequeath money or education as our inheritance for our children, without question I would choose to give them the best education. Money can be lost, but education will always be with you. We should invest in the education of our youth.”

The two sons of UP alumni Manny and Cynthia Villar — Paolo and Mark — both studied at the Wharton School of the University of Pennsylvania. Other alumni of this school include Department of Interior & Local Government Secretary Mar Roxas, Senator Bongbong Marcos, Lance Gokongwei of JG Summit Holdings, George T. Siy of Marie France, and Andres Soriano III.

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