Airbnb not a threat to Cebu hotels

CEBU, Philippines — The absence of an Airbnb office in the Philippines, coupled with issues on security, make hotels still the primary choice of accommodation among travellers.

Bai Hotel Cebu vice president for operations and general manager Alfred Reyes confirmed that the hotel industry, particularly in Cebu, is not in any way affected by the growing popularity of Airbnb.

Reyes said the online hospitality marketplace will have difficulty in establishing foothold in the Philippines because of the absence of physical presence here, at the same time member service providers have yet to pay taxes.

“Cebu is not yet threatened by Airbnb,” Reyes said adding that accommodation demand in Cebu continues to rise, as travellers prefer to book in reputable hospitality institutions.

Reyes, a seasoned Cebuano hotelier said that Cebu will be hardly affected by Airbnb business as its visitor mix is largely composed of business travellers and families.

“Business travelers and families still prefer to stay in facilities where safety and security is assured,” added Reyes.

Reyes, who now manages the largest city hotel in Cebu, in terms of accommodation, with 668 rooms, joined other hotel and tourism stakeholders in saying that the entry of Airbnb is not a threat to the traditional hospitality business.

At this time, hotels and Airbnb providers co-exist, in fact Airbnb’s presence in Cebu in particular aids the room shortage problem in the city especially during peak seasons.

In recent years, Airbnb has become a disruption in the lodging sector of the hospitality industry.

Likewise, the Department of Tourism (DOT) believes that the online marketplace has yet to disrupt the business flow of the hospitality industry.

In an earlier interview with DOT secretary Bernadette Romulo-Puyat, she said that Airbnb is not yet on the agency’s priority, saying its operation size is still very small.

In fact, Puyat said this service is even encouraged as of this time as tourism continues to grow.

Earlier, the Philippine Hotel Owners Association (PHOA) lobbied for DOT to apply an occupancy tax on Airbnb hosts because they felt Airbnb poses unfair competition for hotels. (FREEMAN)