Leaving bad standards behind 

The Department of Tourism has set its target for 2023: 4.8 million tourist arrivals, which is almost double last year’s numbers. Tourism Secretary Christina Frasco is clearly hopeful for Philippine tourism’s comeback, and her optimism is shared by President Ferdinand “Bongbong” Marcos Jr., hailing the “resumption of normal tourism activities.”

With our country’s breathtaking beaches, diverse wildlife, stunning landscapes, ocean adventures, cultural and culinary delights and the warmth and hospitality of the Filipino people (with a high level of English-speaking proficiency), the Philippines is truly an ideal tourist destination.

To add to our encouragement, released this week was February 2023’s inflation rate from the Philippine Statistics Authority, which eased (albeit ever so slightly) for the first time in six months. 

It’s probably too early to say that the stars are finally aligning in our favor. But a dear friend of mine – a 20-year veteran of the travel and hospitality industry – claims that recovery is already on the horizon, regardless of what the signs say.

What we do need to look out for, according to her, isn’t luck or signs, but “risky and bad standards” that can leave us exposed after dealing with unavoidable circumstances.

This called to mind the sad experience of Plantation Bay Resort & Spa, which is one of a dear friend’s favorite destinations in Cebu. Sadly, the resort is now embroiled in a legal battle with its insurance company, instead of being given the help it was promised in return for faithfully paying years of premiums.

It was December 2021 when the 11.4-hectare resort in Mactan Island found itself in the path of Super Typhoon Odette, which left in its wake sheer devastation. Plantation Bay, of course, filed for an insurance claim through its active policy, which also had an “Instant Payment” clause included.

Under the Insurance Code, companies are required to settle reasonable claims within three months. The Insurance Commission (IC), in fact, addressed insurance companies right after the calamity with a directive to expedite and prioritize its payments to victims.

But after more than a year since Typhoon Odette, Plantation Bay has only received P80 million out of their P540-million claim. Moreover, their insurance company wants the resort to sign an Absolute Release Waiver, once they release the “remaining” funds.

How much more money is the insurance company willing to release? Only P94 million, which means that they want Plantation Bay to absolve them of all responsibility, after making them wait for more than one year, and paying only one-third of the claim.

This is a frightening scenario for tourism investors. Imagine having spent years paying dues and premiums, only to find yourself unprotected when you need it the most. Indeed, at a time when business needs to be reignited, such an example of alleged bad faith is undeniably discouraging for potential investors, and the current administration’s efforts of recovery and branding the Philippine economy for foreign investors.

Thankfully, I checked online and saw that Plantation Bay has once again picked up performance and has even recalled employees furloughed during the pandemic. Full rebuilding may take a few more years, but with how the resort has staged its comeback despite the insurance snafu, I am hopeful that they will find a way to succeed.

As with Plantation Bay, recovery is well in sight for the tourism industry and the business landscape. But this time, hopefully, we’re leaving bad standards and all its risks behind us.