Year 2012 brings fresh wave of optimism to Cebu tourism

By Ehda M. Dagooc (The Freeman) Updated December 31, 2011 12:00 AM

CEBU, Philippines - While the tourism sector experienced a “hiccup” in 2011, largely due to leadership transition, the year 2012 brings a fresh wave of optimism among tourism players in Cebu, boosted by the commitment of new Department of Tourism (DOT) secretary Ramon Jimenez –to make tourism as the country’s number one economic “bread and butter.”

Because of this promise, Cebu tourism players are anticipating an exciting tourism business in the province, after-all Cebu is considered as the tourism center in the Philippines.

“The new DOT secretary seemed to know what he is doing. He understands the market well. He is right, the Philippines needs proper pushing and intense promotion utilizing whatever resource we have,” said tourism capitalist Jay P. Aldeguer.

According to Aldeguer because of this commitment and on-track direction to be implemented by the DOT by 2012, Cebu is seen to lead in the tourism growth, as it has been leading in the previous years with or lesser support from the government.

“A lot of investors are looking into tourism now. Exporters are even entering into this profitable and sustainable business. Even those who are not into tourism business are starting to put their money in the sector,” said Aldeguer.

Tourism related employment is expected to surge by 2012, with the opening of more condotels, hotels, Aldeguer said. Likewise, tourism entrepreneurship specifically in the countryside areas will further grow starting 2012.

In fact, a revisit of Cebu’s tourism master-plan to be supported by large business chamber groups in Cebu led by the Cebu Business Club (CBC) will start by early January, in order to re-enforce the tourism advantage of Cebu.

While CBC, is initiating its own tourism master-plan review in coordination with the Research, Education and Institutional Development (REID), as well as other tourism groups like the Hotel, Resort, Restaurant Association of Cebu (HRRAC), the Cebu Chamber of Commerce and Industry (CCCI) also announced its own initiative that will be fully implemented within the first quarter of 2012, called Through the program called “Serbisyo Turismo” or SET.

CCCI will work closely with the Provincial Government, sustaining the successful “Suroy-Suroy sa Sugbo” initiative making it a sustainable program.

With the help of the academe sector, and business players, including experts in marketing CCCI president Samuel Chioson said each town in Cebu province is seen to develop good packaging in their respective tourism attractions.

Part of the plan, is to tap the academe sector and involve the students in the tourism-related courses to take their OJT (on-the-job) training in the different towns in Cebu, helping municipalities and private sector stakeholders to promote products and services.

According to CCCI president Samuel Chioson, Cebu Provincial Governor Gwendolyn Garcia has already vowed to support the project, in fact Garcia already vowed to provide brand-new transportation facility in each municipality to service visiting tourists.

Initially, the CCCI, tourism committee headed by Milagros Espina has already identified pilot municipalities in the province, for the particular project, which will start early next year.

Starting this year 2012, Joseph said Cebu should double its effort to maximize its tourism potential, and that the recommendation that will be submitted to the government, should be pushed seriously by the private sector, in order to pressure the government for implementation and support of “effective” programs and projects that geared towards strengthening the potential of tourism in Cebu.

Joseph added that the group will also tap the Local Government Units (LGUs) for support in the review of Cebu Tourism Master-plan, so that all segments in the society could participate in this initiative.

Under Jimenez’s leadership, he vowed to hit 10-million tourist arrivals by 2016. For next year, the country targets to achieve 4.2-million tourist arrivals.

“If we create the demand and raise the target, we push other agencies to elevate their performance,” the secretary said.

Jimenez added that the planned improvements on the country’s international airports resulted from the demand created by the DOT and the stakeholders in the private sector.

“We have to provide the impetus for change so we have to target a bigger figure,” Jimenez said.

Because of Jimenez’ obvious passion and sincerity to bring tourism to its highest potential, Aldeguer said investors are now re-enforcing their interest to put their investment “baskets” on this promising industry. (FREEMAN)

Outsourcing, manufacturing sectors to create jobs in 2012

(The Freeman) Updated January 02, 2012 12:00 AM

CEBU, Philippines - While the outsourcing sector is considered as the main employment generator for Cebu in the last couple of years and even in 2012, employment outlook for the province is seen to soar this year as the manufacturing sector is expected to rebound.

This means that employment opportunity for 2012 will not only be limited to outsourcing or call center jobs, but will likewise spread to blue-collar job opportunities in the manufacturing sector, said Department of Trade and Industry (DTI-7) regional director Asteria Caberte.

Cebu in particular has to prepare for the influx of manufacturing related investments by next year, that would bring in more employment opportunities, and further boost the economy

“Thailand for now can never be an option, and the Philippines is a better option for investors,” said Caberte.

Although the Philippines still has to catch up in competing with other attractive investment destinations in manufacturing such as Vietnam, among others, “we still have an edge over other countries,” she said.

The good business environment, the streamlining of business processes—which makes it easy for businessmen to transact business in the Philippines, is one of the advantages that the Philippines can take advantage with to re-gain the manufacturing investments, which was dominated by the Philippines years ago.

Aside from manufacturing investments which is expected to flow into the Philippines by next year, Caberte said tourism is also one of the direct beneficiaries of Thailnd’s problem now, while more tourists will re-consider their choice of destination, and again—the Philippines is the closest alternative.

With this, employment in tourism related establishment will also be in demand, providing jobs to more Cebuanos.

Garments, gifts, toys, and housewares, and other sectors in the manufacturing sector are expected to register good growth by next year, Caberte said.

Certainly, the BPO-IT sector will be needing thousands of people in 2012, as call centers, high-value outsourcing firms like JP Morgan and Chase, Accenture, NCR, Lexmark, among others are announcing their respective plans for expansion, said Cebu Chamber of Commerce and Industry (CCCI) chairman for BPO and ICT committee Jerry Rapes.

Contrary to unconfirmed reports, that said call centers and BPO firms have closed operations and got problems in paying their employees, Rapes said BPO/IT players instead are reporting brisk business despite the slack economic plight in the United States and Europe.

In fact, the economic slowdown in these two economic giants in the world provided more opportunities for outsourcing countries like the Philippines, as companies are embracing outsourcing mechanism to cut cost.

“Cebu will still be the top pick among big outsourcing firms. We have the most number of universities and colleges, outside of Metro Manila. Potential supply of manpower is still here, some companies dont mind investing on training than finding manpower requirement elsewhere, and convince them to migrate to Cebu or Manila,” said Rapes.

He said Cebu will still be the preferred investment site, outside of Manila, because those that are in Mindanao and other parts of the Visayas who have potential to work for BPO companies, “wont mind to work and live in Cebu.”

In general, he said the outsourcing sector, despite its own problems and challenges, will continue to grow and will still be needing thousands of people this year. “US started spending money again.”

Cebu’s BPO/IT sector growth will also see a shift to a more higher-value services, in the Knowledge Process Outsourcing (KPO) and ITO (Information Technology Outsourcing), Rapes said.

This means that employment opportunities will be available for highly-educated workforce, such as accountants, lawyers, human resource exporters, marketing consultants, graphic artists, content developers, doctors, radiologists, and other professionals.

CCCI past president and Cebu Holdings Inc. (CHI) president Francis M. Monera said that BPO industry will continue to propel Cebu’s economy being one of the province’s major economic drivers, and is poised to further improve in the coming years.

“Demand for BPO services is expected to surge as more companies abroad seek to implement reduction of operational costs while aiming to achive operational effeciency,” Monera said.

In Cebu Business Park and Cebu IT Park alone, now with over 35,000 workers, a 20 percent increase in workforce (90 percent of which comes from the IT/BPO locators) is expected in 2012. — Ehda M. Dagooc

“This industry [BPO] indeed played a key role in employment generatoion. Plans are underways for us to start construction on a BPO building within Cebu Business Park, as well as third sequel to the eBloc Tower within Cebu IT Park,” Monera said. (FREEMAN)

Cebu economy in 2012: Business sees brighter picture

By Ehda M. Dagooc (The Freeman) Updated January 02, 2012 12:00 AM

Cebu City Skyline. Photo by Ferdinand Edralin
| Zoom

CEBU, Philippines - After failing to attain what had been a 'rosy' outlook for 2011, Cebu's business community is hoping to see the turn-around of the economy at the start of 2012.

This is, however, mainly hinged on what would happen to the economies of the United States and the European Union.

"If the government lets go of its spending in 2012, it could push more economic activities. What happened in 2011 was-money of the government intended to pump prime the economy was being held. And yet, Cebu in particular continued to hold its leadership in economic growth in the country," said Cebu Business Club (CBC) president Gordon Alan "Dondi" Joseph.

While the government's expected spending on infrastructure projects is seen to boost the country's economy in 2012, Joseph said Cebu may not be able to fully enjoy this "economic pump-priming" as most of the Private-Public Partnership (PPP) projects are to be implemented in Luzon area.

Although, there is continuous confidence and positive anticipation for 2012's entry to real "economic turn-around" specifically for Cebu, Philippine Retailers Association (PRA-Cebu) chairman Jay P. Aldeguer believes that economic growth is also threatened by calamities and many other factors.

According to Aldeguer, the tourism, real estate, and Business Process Outsourcing (BPO) sectors are still the "bread-winner" industries for Cebu in the "Year of the Dragon."

"We are expecting a better year for 2012, but also we are preparing for volatile growth because of the crises being faced by United States and Europe," said Cebu Chamber of Commerce and Industry (CCCI) president Samuel Chioson.

What is needed to push the gear to economic strength for Cebu in 2012, despite external threats, is to strengthen expertise in achieving "inclusive growth," that will not largely depend on external inflows, but growth derived from local industries such as tourism, Joseph said.

Department of Trade and Industry (DTI-7) regional director Asteria Caberte projected that employment opportunities for Cebu in 2012 will rise to its highest level, not only prompted by the new investments and expansion in the BPO industry, but also because of the anticipated transfer of some manufacturing companies from Thailand to the Philippines.

Caberte said, Cebu in particular has to prepare for the influx of manufacturing related investments by 2012 that would bring in more employment opportunities and additional economic activities.

"Thailand for now, can never be an option, and the Philippines is a better option for investors," said Caberte.

She added that although the Philippines still has to catch up in competing with other attractive investment destinations in manufacturing such as Vietnam, "we still have an edge over other countries."

The good business environment and the streamlining of business processes-which makes it easy for businessmen to transact business in the Philippines, are just among the few advantages that the Philippines has.

Aside from manufacturing investments, Caberte said tourism is also one of the direct beneficiaries of Thailand's problem as more tourists will reconsider their choice of vacation and leisure destination.

The garments, gifts, toys, and houseware as well as other manufacturing related sectors are seen to register good growth in 2012, she said.

Economist Bernardo M. Villegas, of the University of Asia & the Pacific (UA&P) believes that Cebu will gain further economic momentum in 2012 largely fueled by BPO, tourism, manufacturing, agri-business, creative industries, logistics, and others.

"Cebu is very lucky because it has a good mix of sunrise industries," the well known economist said referring to the good positioning of Cebu to thrive economically, amid the country's fragile economic condition.

Likewise, Cebu is seen to leverage on its four "Fs" strength -- food, fashion, furniture and fun -- which is closely linked with tourism and entertainment.

Exports, which used to be one of the region's "bread-winners" is still going to face challenging future-at least in the first few months in 2012.

"Exports will be very difficult, that is why most exporters are now shifting or diversifying into real estate," Villegas said.

Despite this bright outlook for Cebu, Villegas emphasized the threat that the province faces that could hamper its drive to achieve unprecedented growth in 2012. He said that the threat of power shortage should be addressed immediately and given utmost attention.

The reality now, Villegas said is a lot of companies and businesses are going out from Metro Manila, and consider in transferring elsewhere. One of the most attractive sites is Cebu.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric N. Mendoza said the Cebu business community is anticipating for the big projects of the government and hopefully it could trickle help boost economic activities down in the Southern part of the country, Cebu included.

Although, there is a general positive outlook for 2012, with real estate expected to double its dynamism in Cebu, with the increasing flow of investments in BPO, and upbeat tourism figures, Mendoza said Cebu is still cautious of the possible effects of the economic downturn of the European zone, and the under-recovered US economy.

CCCI chairman for Information Communication Technology (ICT) Committee Jerry Rapes said BPO companies operating in Cebu are expected to hire more people in 2012, while new big names in world's BPO/IT and Knowledge Process Outsourcing (KPO) are looking at the province as top pick for an offshore site.

Cebu was declared by Tholons as an "Emerged BPO Destination in the World" 2011, but it needs to immediately address the manpower resource problem.

At present, the BPO/IT sector in Cebu is employing around 60,000 people. This number is seen to double or triple even within a year or two, if quality manpower is available.

CCCI past president Francis O. Monera also said that BPO industry will continue to propel Cebu's economy being one of the province's major economic drivers, and is poised to further improve the coming year/s.

"Demand for BPO services is expected to surge as more companies abroad seek to implement reduction of operational costs while aiming to achieve operational efficiency," said Monera, who is also the president of Cebu Holdings Inc. (CHI), the developer of Cebu Business Park and Asiatown IT Park.

Monera reported that in the Cebu Business Park and Asiatown IT Park, there are over 35,000 workers.

"This industry has indeed played a key role in employment generation. Plans are underway for us to start construction on a BPO building within Cebu Business Park, as well as the third sequel to the eBloc Tower within the I.T. Park."

With this development, Monera said, the players from the private sector, the academe and the local government have collaborated to improve human capital to increased the manpower pool via proficiency/certification, retraining, and jobs-skills matching programs. There are also intensified programs that support infrastructure and tourism service to strengthen the investment climate in Cebu.

Significantly, as Cebu sees tourism as its "star" economic driver for the province, Aldeguer, who also a tourism capitalist, said players in the sector are expecting that the new leadership of the Department of Tourism (DOT) would set the proper direction for the industry.

The Philippines, in general, according to Aldeguer, needs proper pushing and new DOT secretary Ramon Jimenez seemed to get what needs to be done.

The aggressive push of tourism, however, needs to address the problem of infrastructure in order to be successful, Aldeguer said. — /NLQ (FREEMAN)

The Role of Private Equity in Real Estate Markets in Asia Pacific

The Role of Private Equity in Real
Estate Markets in Asia Pacific

• The private equity share of real estate
transactions in Asia Pacific is approximately
11%
• Of the future money raised to be deployed, the
bulk will head for China
• The most liquid markets in Asia Pacific are
Hong Kong and Singapore
• Australia will continue to be a sought after
destination for private equity capital with
the rise of private equity funds in real estate
markets.
This report takes a look at their activity in Asia
Pacific over the last four years to answer the
following questions:
• How much private equity raised will be
allocated to Asia Pacific real estate?
• Where will each fund spend this money?
• What does this tell us about the future
deployment of the capital currently being
raised?

Matching capital raised to capital spent
The data for capital raised and capital spent is
well matched in Australia, which is not surprising
because according to Jones Lang LaSalle's Global
Real Estate Transparency Index 2010, Australia
is the world's most transparent real estate market.
For Hong Kong, more equity was raised than was
spent, while the converse was true in Singapore.

This highlights the fact that, for investors, the two
cities may be a substitute for each other, meaning
if a fund is unable to secure assets at attractive
prices in one market, then that capital is deployed
in the other. The mismatch between funds raised
and spent in these markets over the past few
years, may be indicative of the rapid escalation in
capital values seen in Hong Kong’s recovery.
Japan, which has the biggest market overall, had
a rough match against our estimate of USD 19.8
billion raised against USD 22.0 billion spent. As
the largest market in the region, Japan attracts
a considerable share of global and pan-regional
funds, partly accounting for the excess in funds
spent over the period analysed.

The country that did not match up well in our
analysis was China. It was estimated that countryspecific
funds plus China’s allocation from global
and regional funds would provide about USD
20.0 billion for deployment, but our records on
investment by private equity players show direct
transactions completed in commercial real estate
was in the order of just USD 3.4 billion.

To establish where the rest of the money may
have gone, land and residential transactions by
these 175 funds in China were examined and
refined, with the assistance of our local market
experts and using the data from Real Capital
Analytics. USD 4.9 billion of land transactions
and USD 800 million of residential transactions

READ MORE CLICK HERE

CB Richard Ellis to Manage AppleOne

Monday, September 19, 2011

Apple One Properties, Inc. appointed CB Richard Ellis (CBRE) Philippines as property management consultants for AppleOne Tower from construction phase to actual operations. AppleOne Tower is a mixed use condominium development set for completion in 2012. The project is now 70% completed and is located at the heart of the Cebu Business Park, Cebu’s commercial and financial district.

Asked why the developer chose CBRE Philippines, AppleOne Properties, Inc. (API) Vice President for Operations Yvet Andalis said, “We will only settle for a company which has a proven and tested reputation in the industry.”

Rick Santos, CBRE Chairman and CEO shared, “Our partnership with AppleOne Properties, Inc. is an affirmation of our support to the Cebu real estate sector. We believe that this property market uptrend will continue to aid the country in positioning itself as a BPO/IT destination.”
CBRE is the world’s largest commercial real estate services firm with over 300 offices in 50 countries worldwide. In the Philippines, CBRE has been the leading real estate services provider and has the most comprehensive portfolio of offerings to investors, developers, and occupiers—global corporate services, commercial/office leasing, BPO/call center solutions, residential sales and leasing, research & consultancy, valuation and advisory, capital markets, and asset services.

“We want only the best available service for AppleOne occupants. It is only befitting to have experts manage the upscale property in the most strategic financial location in the city,” said Andalis.

AppleOne Tower is the flagship project of AppleOne Properties Inc. (API), a homegrown company in Cebu with close to 20 years of experience in real estate development. It is 16-storey high and is a Philippine Economic Zone Authority (PEZA) accredited building.

AppleOne Tower is located right next to the first truly international hotel – the Marriott and is only a few steps away from the Ayala Terraces and the colorful Ayala Center that offers great shopping, varied dining experiences and exciting entertainment. It is close to offices of major corporations, financial establishments, banks, telecommunication companies, shopping and entertainment centers. Public and private transportation are conveniently available at all times around AppleOne.

The 48 office units of AppleOne are designed to meet the basic requirements of global offices – making it ideal for business and knowledge process outsourcing companies (KPOs), which is currently the industry with steady growth reports.
“We are extremely excited to be involved with this project. It is definitely unique in its mixed-use nature, and is in one of the best locations that can be had in Cebu. With the processes, people, and systems the developer AppleOne Properties, Inc. and CBRE will be providing, locators can be confident of having world class, reliable services. We intend to help keep AppleOne a premier address for many years to come,” said Lui Matti, executive director of CBRE’s asset services group.
Aldrin Almario, CBRE associate director added that, “The strategic location of the property and the integrity of its developers make very good business sense to partner with AppleOne. AppleOne is definitely perfect for KPO’s and BPO’s. The facilities and the surrounding community easily support the nature of the business.”

The office floors of AppleOne Tower have maximized office space and are also available for fit-outs as needed. It has a hotel-like lobby entrance that leads to three high-speed elevators for offices with one of them as the dedicated private elevator for the residential levels. It also has an al fresco café that will be open 24 hours. Split-type air conditioning system, high capacity telecommunication system which allows flexible voice/data transmission, a fiber optic backbone and 100% back-up power provides support to all office operations.

Moving in next year at the AppleOne Tower are the following companies: Equicom Group, Standard Insurance Co., ASEEC, VICHEM Coating & Chemicals Inc., JS Medical & Diagnostic Clinic, One TD Ventures Inc., Abacus, Nordep Philmed Inc., Archiglobal Inc. and Sta. Ana Consultancy Firm.

Taking charge of the project management and quality control of AppleOne Tower is Apollo S. Enriquez Engineering Consultancy. AppleOne Properties has also contracted the services of Archiglobal Incorporated and J.C. Amarga Architectural Office, which prepared the interior design layout of the lobby and the residential units.