Stakeholders push MICE incentives

CEBU, Philippines — Cebu’s hospitality industry is urging the government to treat tourism as a strategic economic priority and establish subsidy and incentive programs that could help the province compete with neighboring destinations for high-value meetings, incentives, conventions and exhibitions (MICE).

“We will not stop asking,” said Josef Chiongbian, general manager of Savoy Newtown Mactan and trustee of the Hotel Resort and Restaurant Association of Cebu (HRRAC), during the pilot episode of The Freeman’s business conversation series, “BizTalks,” held Wednesday, August 19, at Seda Ayala Center Cebu.

Chiongbian said Cebu is losing potential MICE business to destinations such as Singapore, Thailand and South Korea, where governments provide financial incentives to event organizers to attract large international gatherings.

In some destinations, government-backed programs cover portions of entertainment, airfare and other event-related expenses, while others provide direct cash incentives, he said.

“These are the things we have been asking for several times. We will not stop asking,” said Chiongbian.

The appeal comes as Cebu’s hotel operators contend with softer tourism demand, higher fuel and operating costs, and intensifying competition from both domestic and international destinations.

Mia Singson-Leon, HRRAC president and general manager of Crimson Resort & Spa Mactan, said the industry entered 2026 on a strong footing but has since faced headwinds from the fuel crisis and geopolitical tensions, which have affected both international and domestic arrivals.

August has shown signs of improvement, she said, but the industry remains cautious about the months ahead.

For instance, Chiongbian said Savoy Hotel Newtown Mactan, a 547-room property, was operating at about 50 percent occupancy, a level he described as “good enough” under current conditions but still below the industry’s aspirations.

For large hotels with extensive room inventories and convention facilities, MICE business is particularly important because a major event can boost occupancy not only at the host property but also at surrounding hotels and businesses.

Mice seen as Economic Multiplier

Industry leaders said MICE should be viewed as more than a hotel business, as large events generate spending across transportation, airlines, restaurants, retail, tourism services and local suppliers.

Singson-Leon said the economic impact also extends to businesses supplying hotels with food, linens, toiletries and other services.

For Waterfront Cebu City Hotel and Casino, one of Cebu’s major MICE accommodation providers, general manager Ali Banting said the province has strengthened its position as a MICE destination through improved air connectivity and the emergence of new convention and exhibition facilities.

The industry is also working to position Cebu as a destination capable of hosting larger international events. MICE stakeholders have begun actively bidding for major conventions and distributing promotional materials across markets in Southeast Asia.

But the executives said government support is needed to make those efforts more competitive.

“Promoting the destination is one thing,” Banting said. “We also need to make the destination competitive.”

That means addressing infrastructure, transportation, safety, connectivity and the overall cost of doing business, he said.

Government Incentives Sought

The hospitality sector wants the Philippine government to develop a formal incentive framework for MICE events similar to programs offered by competing destinations in Asia.

Aaron Manalang, cluster general manager of Seda Hotels Cebu and HRRAC trustee, said HRRAC and other industry groups have raised the issue with the government several times, but a comprehensive national program has yet to emerge.

He said government and private-sector stakeholders should jointly craft an incentive program that could help Cebu win large international events. Such a program may require legislation and budgetary support, the industry leaders said.

Singson-Leon said Philippine hotels already offer their own incentives to event organizers, but government participation could significantly strengthen Cebu’s ability to compete internationally.

The industry is particularly concerned about the widening cost gap with destinations such as Thailand and Vietnam, where tourism support and incentives can help offset expenses for major events.

“Our operating costs are rising faster than our average rate,” Singson-Leon said, warning that Cebu’s hotels risk becoming less competitive if costs continue to rise without corresponding growth in room rates.

Infrastructure remains critical

The industry also called for faster improvements in power, water, transportation and connectivity as Cebu prepares for a larger tourism and MICE market.

Singson-Leon said Cebu needs more direct international flights and easier visa access to attract higher-value travelers. Metro Cebu’s traffic situation also remains a concern, particularly for conventions that require delegates to move between hotels, venues and tourist attractions.

Power reliability is another issue. Hotel operators said outages can sharply increase operating expenses because properties must rely on generators at a time when fuel prices remain elevated.

Manalang said generator use can substantially increase utility costs, creating a ripple effect that eventually puts upward pressure on room rates and other services.

The industry also warned that water supply must keep pace with Cebu’s rapid development.

Manalang said Cebu needs to align its economic growth with investments in power and water infrastructure to ensure that future hotels, convention facilities, businesses and residents have adequate supply.

‘We sell the destination first’

The executives stressed that the industry’s competitiveness ultimately depends on Cebu itself. Hotels cannot market their properties in isolation, Manalang said.

They have to sell Cebu as a destination first, with individual properties benefiting from the resulting visitor demand. That makes government investment in infrastructure, safety, transportation and connectivity critical.

For Singson-Leon, safety and security — including cybersecurity — also need greater government attention as hospitality businesses face increasingly sophisticated online scams targeting travelers and hotel customers.

The industry leaders said Cebu has the potential to capture a larger share of the regional MICE market, particularly as new convention and entertainment facilities come online.

But they warned that infrastructure alone will not be enough.

For Cebu to turn its growing MICE capacity into sustained economic growth, government and industry must work together to make the destination more competitive and provide incentives strong enough to persuade event organizers to choose Cebu over rival Asian destinations.

For Cebu’s hospitality leaders, the message to government is straightforward: tourism can drive growth, but the destination needs stronger policy support to compete.- FPL (CEBU NEWS)