Hotels, resorts expect to earn over US$10M

About US$10 million is expected to be generated by Cebu's hotels and resorts in the upcoming ASEAN Summit come December 9 to 13, 2006.

This estimated amount is based on a conservative calculation of over 10,000 guests that will arrive in Cebu, not only in the proper five-day event, but including earlier meetings that will be held in Cebu in the preparation for the Summit.

Hotelier and general manager of Cebu Parklane International Hotel Ray Fuentes said each guest is expected to spend an average if not a minimum of US$200 a day, only for the accommodation and food expenses, excluding other expenses for shopping, tours, among others.

The ASEAN Summit preparation was the highlight of yesterday's discussion during the formal launching of "888 News Forum at Parklane" a weekly forum spearheaded by DOT, National Association of Independent Travel Agencies (Naitas), and Cebu Parklane International Hotel.

According to Roa, prior to the main event that is scheduled on December 9 to 13, there will be 32 meetings to be held in Cebu, this include an international business leaders' meeting that will be held at Waterfront Cebu City Hotel and Casinos, and other events related to the ASEAN Summit.

Roa said the Philippine government is only spending on the accommodation for the head of states, but the members of the delegations in each country, will have to spend for their own accommodations.

The US$10 million expected to pour into Cebu's economy is only calculating the basic need of each delegate, which is only the accommodation and food, the amount is expected to double as delegates will have to go to other services like shopping, spa, tour, wining, and dining.

In the Metro Cebu area, which covers cities of Talisay City, Cebu City, Mandaue City and Lapu-Lapu City, there are only a little over 6,000 rooms that will be able to accommodate the delegates.

There are 16 participating countries in the ASEAN Summit each head of state is expected to bring over 100-member delegation. About 2,000 are expected to come from different media organizations in the world.

Roa said that the impact of the ASEAN Summit that will be held in Cebu will be felt by Cebuanos in the long term. It will help the positioning of Cebu as an international vacation hub, and that tourism will be well benefited in this event.

Roa added that these ASEAN Summit participants are not ordinary people, they are expected to spend more than what a usual tourist is spending.

At least six hotels/resorts are already identified to be the hosts of top-notch head of states. According to Roa, although room shortage is a problem in Cebu, the ASEAN Summit accommodation committee has already made arrangements to hotels of the bookings.

Province-wide, including resorts located in countryside, like Pulchra, Alegre, Badian Island, resorts in Bantayan Island, Malapascua, and others, Cebu has over 9,000 hotel and resort rooms.