MANY hotels and resorts in the country continue to remain unprofitable, notwithstanding the surge in domestic guests and an increase in their rates.
In an interview with the BusinessMirror, Hotel Sales and Marketing Association (HSMA) president Loleth So said the hotel occupancy of their members in Metro Manila are “surpassing” prepandemic levels, averaging 70-80 percent.
“Metro Manila hotels are doing very, very well. Provincial hotels are taking off but not [at] that level yet, mainly because the cost of flights is very expensive now. So that is kind of slowing the influx towards Boracay, towards Palawan.”
She added, the average daily rates (ADR) of Metro Manila hotels are “very healthy” as well, and back to prepandemic levels.
So explained much of the recovery in the Metro Manila hotels is due to domestic travelers and local MICE (meetings incentives conventions exhibitions) activities. “But the domestic market is highly seasonal. Like for staycations, they only stay during weekends, what happens now to our weekdays? The domestic market is good, but it cannot sustain operations and our expenses. So we really need the global market,” she stressed.
Seasonal market
Thus, in terms of Revenue Per Available Room (RevPAR), most HSMA-member hotels are “still far” from 2019 levels, said So, who is also the Area Director of Sales and Marketing for Megaworld Hotels and Resorts Corp. RevPAR is an important metric in monitoring a hotel’s performance.
According to research firm STR, the RevPAR of Philippine hotels averaged P3,708.30 in 2019. Average hotel occupancy was at 80 percent and ADR at P5,425.49, as per the same data. The Philippines was able to attract a record high 8.26 million international tourists that year.
“What we’re waiting for is obviously China because it’s always been one of the biggest markets,” said So, adding, “that’s why I think the likes of Boracay and Cebu are not picking up yet.”
Latest data from the Department of Tourism (DOT) showed inbound tourists reached 3 million as of July 19, but visitors from China, which used to be the second largest source market for tourists, only numbered 129,077. China ranked fifth among the source market for inbound tourists, which was topped by South Korea. See, “South Koreans ‘loving’ PHL help boost tourist arrivals to 3 million,” in the BusinessMirror, July 20, 2023.
9th Virtus Awards
Under the National Tourism Development Plan for 2023-2028, the DOT wants to put renewed focus on domestic tourism, “strengthening it as the foundation of the national tourism strategy,” and at the same time, diversifying the country’s source markets for international travelers.
Speaking at HSMA’s general membership meeting on Thursday, meanwhile, SM Hotels and Conventions Corp. executive vice president Peggy Angeles underscored the need for the industry to go “beyond the bottomline,” the theme of this year’s Virtus Awards. “In today’s fast-paced and competitive world, it is easy to get caught up in the pursuit of financial success. However, the true measure of excellence lies not only in the numbers but also in the way we connect, nurture, and inspire. It is about the relationships we forge, the memories we create, and the positive influence we leave on everyone we encounter.”
According to awards chair Rose Libongco, the awards “serve as a catalyst for inspiration and growth within our sales and marketing teams. We aim to ignite a fire within each associate, encouraging them to claim new strategies and approaches that work in these unforeseen circumstances.” Up for grabs are awards for Outstanding Sales and Marketing Associate, Outstanding Sales and Marketing Manager, Outstanding Sales and Marketing Leader, and Most Outstanding Marketing Campaign of the Year.
HSMA is the premier organization of hotel sales and marketing professionals in the country with over 140 members nationwide. For more information on the awards, go to hsma.org.ph
Image credits: HSMA
International tourists vital to hotels’ full recovery
Source: News Paper Radio
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