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Philippines: Hotels turn focus on domestic market amid China travel ban

MANILA, Philippines — The country’s hotel market is pushing for more domestic-centered marketing initiatives amid the temporary China travel ban, an industry group said.

Hotel and Sales Marketing Association (HSMA) president Christine Ibarreta said hotels are currently experiencing a 20 percent to 40 percent booking cancellation rate.

“But we do have to accept this fact…,” Ibaretta said in a text message to The Star.

“Thus, we push for domestic travel with cooperation with other industry players like airlines,” she added.

On Sunday, President Duterte issued a temporary travel ban from China and its Special Administrative Regions, Hong Kong and Macau, in order to contain the spread of the novel coronavirus (nCoV).

The travel ban refers to the “entry of any person, regardless of nationality, except Filipino citizens and holders of Permanent Resident Visa by the Philippine Government, who within 14 days immediately preceeding arrival in the Philippines has been to China and its Special Administrative Regions.”

Tourism Secretary Bernadette Romulo-Puyat acknowledged earlier that foreign arrivals are expected to drop with the implementation of the temporary travel ban, but emphasized that safety is of utmost priority.

“The DOT will step up its marketing and promotions efforts in other source markets to compensate for the expected decline in Chinese travelers,” Puyat told The Star.

“We are committed to supporting our partners from the private sector while our health authorities are addressing the situation,” she added.

The tourism chief emphasized that visitors who do not fall under the restrictions set under the temporary travel ban from China are still welcome to visit the Philippines.

Colliers International Philippines research manager Joey Roi Bondoc said earlier that the Metro Manila hotel market is projected to post lower occupancy rates this year due to the nCoV scare.

“We are likely to see a sub-70 percent occupancy from at least 70 percent we projected earlier,” Bondoc told The Star.

“This will affect our tourist arrivals. Note that they (Chinese) are our second largest market,” Bondoc said.

China remains the country’s second largest source market of foreign arrivals, with at total of 1.6 million Chinese arrivals from January to November 2019.

It is also the second largest spending tourist market, with visitor spending at $163.61 million from January to September 2019.

Bondoc said foreign arrivals from other source markets are also expected to dip given the global health scare.

Foreign arrivals from January to November 2019 reached 7.4 million, a 15.58 percent rise from the same period a year before, according to data from the Department of Tourism (DOT).

Under the National Tourism Development Plan, the Philippines is targeting foreign arrivals to reach 9.2 million this year.

Puyat emphasized that the safety and well-being of the tourists and citizens will always be the priority over numbers.

“While the DOT is mandated to encourage, promote, and develop tourism as a major socio-economic activity, at this time our first priority is ensuring the health, safety, and well-being of all,” Puyat said.

“We strongly urge the public to stay informed and abide by the suggested guidelines issued by our health department to minimize risk and help stem the spread of the coronavirus. For your safety, we ask for your full cooperation and understanding at this time,” she added.

Source: https://www.philstar.com/business/2020/02/04/1990106/hotels-turn-focus-domestic-market-amid-china-travel-ban