RLC in talks with prospective partners

(The Freeman) Updated September 28, 2009 12:00 AM

CEBU, Philippines - Robinsons Land Corporation (RLC) is now in talks with three international resort chains for a possible partnership on the resort development component of its upscale coastline condominium project, the Amisa.

RLC assistant vice president for leisure and retirement Trina B. Cipriano said the company is now talking with international hotel and resort chains to clinch a partnership deal with RLC to kick off the resort development within Amisa considering the strong takeup of condo units and the growing interest from both the local and international markets.

RLC topped-off its first 14-story Tower A, over the weekend, which has a total of 130 condominium units, which as of this writing, are already sold.

Cipriano said the company is very meticulous in choosing the right resort chain partner to complement the property’s high-end positioning and something that will add value to the entire project.

The eight-year Gokongwei-led development project Amisa will be constructing the hotel component in the next one or two years, depending on the market takeup of its condominium unit offering.

Amisa is so far the biggest property development ventured into by the company in Cebu, although it has also invested on several pocket-projects such as the Robinsons Cyber Gate at Fuente Osmeña, among others.

Amisa is designed to have six residential condominiums featuring Australian Gold Coast architecture that offer breathtaking views of the beach, sea and Cebu’s coastline.

It will also have a five-star hotel with amenities, an entertainment center, two pools, tree-lined walks and nooks, pocket parks, and open spaces that lead to a pristine white sand beach, and sports activity areas.

The resort development was conceived to allow its users to enjoy an active interaction with nature while preserving and enhancing its environment. The concept of the towers soaring above the rest of the natural site takes advantage of the picturesque views.

Despite the global economic distress, Cipriano said Amisa has attracted buyers especially from the Southern Philippine market, thus the advance pre-selling of the 18-storey Tower B, which has yet to start construction by the first half of 2010. The Tower B will have 155 condo units.

The building of other high-rise structure that will complete the projected total of 800 condominium units will start units in the first two towers will be completely disposed.

The planned resort that will occupy over a hectare of the sprawling development is part of the five-star mixed-use development of RLC in Mactan Island, including the establishment of over 800 condominium units.

The Gokongwei Group is also known in Cebu for its other properties including the Robinsons shopping mall in Fuente Osmeña, the Midtown Hotel, Robinson’s Supermarket at the Banilad Town Center, and the Blue Coast subdivision in Mactan, and Aspen Heights in Consolacion among other affiliate businesses.

Cipriano said RLC was able to build the vertical development at the area ahead of schedule owing to the positive performance of the project, in terms of market interest.

In an earlier interview with JG Summit Holdings Inc., president and chief operating officer (COO) Lance Gokongwei, he said that the company is looking at expanding its land bank in Cebu to prepare for more projects in the next few years.

RLC is among the most profitable business of JG Summit Holdings Inc., with its 18 malls, 23 residential subdivisions, 22 residential condominiums, six office buildings and three hotels.— Ehda M. Dagooc

Australia renews ties with Banilad development center

(The Freeman) Updated March 23, 2009 12:00 AM

CEBU, Philippines - Australia has reaffirmed its commitment to assist the development needs of the Philippines by renewing its financial support to the Banilad Center for Professional Development (BCPD).

Through the Australian Agency for International Development (AusAID), the Australian government pledged to continue its financial support to BCPD aimed at doubling the capacity of the institution, which implements a poverty-alleviation program for young women of low-income families.

BCPD provides these women with technical and vocational training, industry experience and employment through the help of AusAID’s NGO Cooperation Program (ANCP).

Australian Ambassador to the Philippines Rod Smith, during the recent appreciation event, reassures BCPD of continued support stressing that the Australian government will remain a strong partner of the Philippines.

Smith said the Australian government is the country’s second largest grant provider with an average annual fund budget worth P4 billion earmarked for development assistance including educational support, economic reforms, governance, assistance in infrastructure, and programs that collaborate with communities, NGOs and industries.

“The Australian government wants to reach communities and contribute to the development of these communities. We hope that through our support, we will be able to assist those who need assistance and prop up the people from disadvantaged communities,” said Smith.

Smith noted the great achievement of BCPD in achieving its goals of providing technical-vocational training to deserving students.

“BCPD is an example of an effective project that showcases the partnership between governments, NGOs and the private sector. They provide 100 percent stroke rate in employment for their students and they contribute to the development of the tourism industry in the country as a whole,” said Smith.

He said that the Philippines’ tourism potential is very strong and as a staff-resourced intensive industry, it needs to provide support and training to its stakeholders and BCPD is able to help in the endeavour of creating an internationally competitive industry through supplying quality and trained students into the industry.

In 2005, Reledev Australia Limited, an Australian registered NGO partnered with ANCP funding which enabled BCPD to develop its competency-based training (CBT) for the skills needed in the hotel and restaurant services in Cebu’s booming tourism sector.

ANCP has been funding the program for four years already enabling the institution to provide training for some 300 young women from Cebu and neighbouring provinces, said BCPD director Mary Anne Ruiz.

BCPD started in 1990 offering general informal training programs such as cooking, sewing and home-related services.

Now, the institution now teaches six areas of competencies which include: bartending, housekeeping, commercial cooking, front office, baking and food and beverage services which are demanded by the hospitality industry.

During the same event, the Department of Tourism, though DOT chief Joseph Ace Durano, also pledged support to BCPD by handing P2 million to enable the institution to accommodate more students at the same time 20 new grants were also given to replace the 20 scholarships that were given last year. — Rhia de Pablo

Study reveals major shift in IT development, growth

By Ehda M. Dagooc (The Freeman) Updated September 11, 2009 12:00 AM

CEBU, Philippines - While network and internet infrastructure companies are investing money to provide connection even to the remotest place in the Philippines, IDC-Digital Universe study revealed that a fundamental shift in the areas of information growth, security, compliance and management is seen in the next few years.

The IDC study revealed that over the next four years, the number of information-generation technologies and interaction will increase dramatically. Mobile users will grow to 600 million in four years time, as more people will become Internet heavy users.

Non-traditional IT devices such as wireless meters, automobile navigation system, industrial machines, RFID (radio frequency identification) readers, and intelligent sensor controllers, will grow by a factor of 3.6.

Because of the increasing high-technology generation, interactions between people via email, messaging, social networks, and others, will also grow dramatically.

Moreover, more of the world’s economic stimulus efforts will also increase the amount of digital information created, the result of increased access to broadband communications, electronic patient recorders, smart electric grids, smart buildings and autos.

By 2012, IDC projected that 850 million people will buy and sell products and services on the Internet and twice as much, Internet commerce will take place versus 2005.

Also in the same year, Internet commerce will become a US$13 trillion industry, mostly involving sensitive business-to-business commerce.

Meanwhile, the Philippine Long Distance Telephone Company (PLDT) earlier announced that it is spending a total of P27 billion in expansion investments, including its plan to roll out “fiber-to-home” technology in the middle of this year, and its ultimate goal in providing “broadband-for-all.”

The company incurred P25.2 billion in capital expenditure in 2008. This year, despite the volatile economic conditions, PLDT is increasing its capex allocation by P3 billion more.

“The 2008 capex level reflects PLDTs continued investment in the business, an outlook sustained in our forecasted capex of P27 billion for 2009. We are looking beyond the near-term uncertainty and positioning for the long-term when global situation stabilizes,” said PLDT president and chief executive officer (CEO) Napoleon L. Nazareno

The introduction of “fiber-to-home” technology will provide Filipinos with much reliable and faster internet connection. Although this may cost a little higher compared to ordinary connection, it is considered as the “ultimate” in fixed line infrastructure.

PLDT, the largest telecommunication provider in the Philippines, reported that Internet traffic has grown at least 80 percent year on year since 2006. Broadband subscriber based continued to grow robustly, and approached one million by year-end.

Total broadband and Internet service revenues for the company grew 45 percent to P11 billion in 2008, which now represents eight percent of consolidated service revenues from six percent in 2007.

Spa chain expands via "build-to-sell" concept

By Ehda M. Dagooc (The Freeman) Updated June 08, 2009 12:00 AM

CEBU, Philippines - As the Spa and wellness industry in the country continues to post promising prospects, spa chain Body & Sole is embracing a unique expansion concept via build-to-sell (BTS) strategy.

Cebu-based Body & Sole brand, which is the largest spa chain in the country, recently created another subsidiary company to focus on its expansion plan called “Body & Sole Express Corporation,” this is to offer a different expansion model, which has been proved to be successful in other industries like the 7/11 chain of convenience stores.

In a press conference, Body & Sole president Johnie Lim said that unlike the typical franchise strategy, wherein dealings with the franchisee will take longer, the BTS concept on the other hand, will give an interested investor an “instant business” by buying an outlet of her choice.

Lim, together with a Manila-based partner, will start this concept at its new outlet located in Ortigas in Metro Manila that will be up for sale once the company will be able to set up and run it for a while and after a buyer can take over.

According to Lim, the company is planning to build about nine outlets all over the country, mostly in Metro Manila, and some parts of Luzon that will adopt the BTS model.

“This is for people who have the money and want to start a new business instantly or immediately without having to worry of the facility and outlet construction, and other hassles,” Lim said.

In the BTS concept, Body & Sole will have the outlet run commercially, and immediate take over of the business will be done, after the investor buys it.

Although, Body & Sole will continue its franchising business, Lim said the introduction of BTS will give investors another choice in operating a “branded” Spa outlet immediately.

Part of the contract, under the BTS model, is to retain the Body & Sole brand, and owner must uphold the service standard adopted by the chain including the pricing of its services, among others.

The company on the other hand, still gets a royalty fee from the buyer, Lim said.

Lim’s Body & Sole has now over 40 outlets nationwide. Majority of these branches are managed by franchisees.

A single outlet for instance, will be sold at least for P1 million (all-in), “in the following day, after the buyer pays, he can already run the business. That’s the beauty of this concept.”

The company on the other hand will not build an outlet that will cost over a million pesos, as this is targeted for the small entrepreneurs, while bigger ticket investors could opt to take the franchising scheme.

In franchising, he said while the franchisee pays the franchising fee, he still has to invest on construction of the outlet and other legal and documentary processes. The BTS on the other hand, business turn over is faster, Lim said.

Lim mentioned that this strategy will be adopted by the company outside of Cebu, as he described Cebu’s Spa industry as “saturated.”

He said there is no room for expansion in Cebu. But, there are a lot of promising areas around the Philippines for this kind of business.

He mentioned that OFWs (Overseas Filipino Workers) for instance, who want to get into business back home can immediately invest on the BTS model for less hassle and faster return of investments (ROI).

Filinvest Land partners with global hotel chain

By Ehda M. Dagooc (The Freeman) Updated May 28, 2009 12:00 AM

CEBU, Philippines – Filinvest Land Incorporated partners with international hotel chain Aston Hotels & Resorts for the management of its condotel and resort businesses in Cebu in the next few years.

If the deal will materialize, it will be the first hotel and resorts that will be managed by the international chain in the Philippines, said Filinvest vice president for Visayas and Mindanao operations Tristan Las Marias.

For over 60 years, Aston Hotels & Resorts has been a leading provider of hotels, condominium resorts, villas and cottages specifically in Hawaii, and other countries like Indonesia, Darlington, among others.

Filinvest will be opening its triple-A resort village by the end of this year, and targets to start its condotel operation of Grand Cenia Condominiums by first quarter of 2011.

In a press conference, Las Marias said that the company’s partnership with Aston Hotels and Resorts will solely be management deal, and that names of both properties the Grand Cenia and Seascapes will be retained.

Aside from its investments in residential projects in Cebu, the Gotianun-led real estate giant is spending P5.5 billion only for the two projects, the Grand Cenia Condotel and the Seascapes Resort village on Mactan Island.

The company has earmarked P4 billion for the development of high-end Seascapes, which will provide 280 casitas to add the resort accommodation facilities of Cebu, and exclusive residential or vacation homes.

Filinvest is spending P4 billion for the 12 –hectare ultra high-end resort town, of which exclusive residential lots, apart for the resort operations.

The Grand Cenia, on the other hand, a condotel located adjacent to the Cebu Business Park (CBP), is a 25-story condotel building that will be providing a total of 450 hotel rooms that will also be managed by the Aston Group.

Filinvest, is investing P1.5 billion on this condotel project which completion date is targeted by early 2011.

Excluding its investment put in its leisure group in Seascapes, Filinvest Land has already spent P5 billion in real estate developments in Cebu in the last three years. Combined, the company has put up close to P10 billion in investments in the last few years.

Currently, the company is also building an enclave of medium-rise-buildings (MRB) called One Oasis in Mabolo area, which provides a cluster of MRBs or nine to 10 five-story buildings within the 3.5 hectare development.

Aside from these new ventures, Filinvest is also expanding its existing subdivision projects in Metro Cebu, such as the 5-hectare expansion of Corona del Mar subdivision in Talisay, and the four-hectare additional house and lot offering of the Mactan Tropics subdivision.

Although the company was recently involved in the controversial deal with Cebu City government-developed South Property Road (SRP), Las Marias said Filinvest maintains its strong confidence of Cebu economy, fueled by the bullish tourism and real estate industries.

“We are not overly aggressive, but we are trying to position ourselves and we want to be there when the economy fully recovers,” he stressed.

Filinvest Development Corporation, is one of the largest developers in the Philippines, developed close to 2,000 hectares of land in the last four decades, shopping centers, it also engaged in different businesses like banking (East West Bank), and projects like shopping centers, central business districts, high-rise offices, and condominiums, recreational farms, leisure clubs, industrial estates and an information technology park.

Exporters shift to other marketing partners, strategies

By AJ de la Torre (The Freeman) Updated November 25, 2009 12:00 AM

CEBU, Philippines - The Philippine Exporters Confederation is eyeing on partnering with other countries outside Asia in order to grab a bigger market for the export industry.

During the Sector Export Marketing Plans presentation in Cebu recently where different industries showed their strategies in coping with the economic crunch and plans to intensify their efforts for their respective industries, Philexport chairman Paterno Dizon said that since the start of the crisis where the industry was greatly affected, they have tried to shift in marketing strategies.

Philexport is the umbrella organization of export companies in the country.

Dizon said that there were a lot of challenges for the industry but they knew that it was important to find other opportunities for the export sector.

He said that part of the changes they made was shifting marketing partners where from China and India, they also focused on Japan.

Dizon explained that part of the key facts in opening new markets is looking for potential partners which would be a big help for the companies especially those that had their products exported in countries that were greatly affected with the economic meltdown.

According to Dizon, negotiations are also going on with Australia and new Zealand but then they are still going back to the Asian market wherein Dizon said 70 percent of the export goes to the East Asian countries.

Aside from opening possibilities for other export partners, Dizon said that another key fact in opening new markets is on the production of big volumes.

“Manufacturers should address the sustainability of their supplies,” said Dizon who said that as for now, orders are still slower compared to the previous years but are ready to show some progress.

Jay Yuvallos, the president of Philexport Cebu said that they see a bright future ahead and that “there is no way but up.”

Yuvallos said that SEMP would be a good way to further help the industries and that they are happy that the industries are committed to do revisions and adjustments to address the changes in the market.

Five sectors presented their SEMP namely, the Cebu Health and Wellness Council, Cebu Furniture Industries Foundation, Cebu Gifts, Toys and Housewares Foundation, Fashion Accessories Manufacturers and Exporters and the Seaweed Industry Association of the Philippines.

The Cebu Health and Wellness Council shared that there are a lot of strengths that the industry has in order to successfully promote Cebu as one of the best destinations for health and wellness services and facilities.

They emphasized on Cebu’s location being an advantage wherein 50 percent of the received tourists come to Cebu and stay here without going to other provinces.

CHWC shared that despite the lack of coordination that they see among the key players which is one of their constraints, they believe that they could overcome it in time.

The industry believes that through the Republic Act 9593 or the Philippine Tourism Law, they have an idea on the government support that they would get. Also, they see the big help that they are getting from the travel operators in Cebu who have been very supportive of their measures and have also done their own initiatives to help the industry.

Hotel chain reports decrease in revenue

By Ehda M. Dagooc (The Freeman) Updated November 23, 2009 12:00 AM

CEBU, Philippines - Gatchalian-controlled Waterfront Philippines Inc. (WPI) and subsidiaries reported a slight decrease of its total revenue in 2008, as compared to the previous year from P1.96 billion in 2007, to P1.95 in 2008.

“[The year] 2008 has been one of the most challenging years in our industry, as it has been for every other player in the tourism and hospitality area. The global economic crunch came rather unexpectedly and it has brought with it the obvious implications for international travel, tourist spending and leisure spending in general,” said WPI chairman Renato B. Magadia.

Hotel operations generated a revenue of P1.85 billion, with rooms contributing 36 percent or P700.66 million, with F&B (food and beverage) putting in a share of 32 percent or P627.40 million.

Revenue per available rooms rose to P1,444 from the previous year’s P1,423, reflecting an increase of 1.45 percent.

Waterfront Cebu City Hotel and Casino accounts for 37 percent of total revenues while Manila Pavillon Hotel brought in a close 35 percent share.

Waterfront Airport Casino and Hotel in Mactan Island generated 13 percent of revenues. While Waterfront Insular Hotel Davao contributed seven percent and G Hotel provided three percent contribution to the company’s overall revenue.

Based on the 2008 annual report of the publicly-listed WPI, consolidated room revenues stood at P700.66 million. Average occupancy rate was at 59 percent with group average room rate at P2,400 in 2008 reflecting a revenue per available room of P1,444.

The F&B business of the company continue to be a source of its considerable revenue contributor.

WPI’s F&B revenues generated P627.54 million, making up 32 percent of hotel-gross revenue.

“Midyear, we braced ourselves for tough times as we watched travel and tourism data take the unfavorable plunge, and the possibility of a global recession loomed over our heads,” Magadia said in his chairman’s report.

He said the company’s outlook in 2008 went from optimistic to conservative. “Lesser tourist arrivals in the country meant lesser revenue. Worsening conditions in the global airline industry also meant that there was no guarantee of a steady stream of flights to assure us of an international clientele. Indeed, difficult times were at hand.”

Because of the crisis, Magadia said there was also a drop in business travel and leisure spending, as companies cut down on their travel expenses and as affluent travelers tended to hold off on luxury spending

“We have felt the repercussions not just in our main operations but also in our individual subsidiaries and service outlets,” he said.

However, he stressed that the company is far from being overcome by undue fears brought about by the widespread uncertainty and continuing talk of the crisis.

“The most important things you can have in a crisis are resolve and resilience: the will to weather the storm, and the ability to adapt and innovate. I believe this is what has kept Waterfront hotels formidable no matter the odds,” he said.

With new projections expecting the global economy to bounce back by 2010, Magadia said the company is encouraged by the prospect of better days.

“We continue to strive and innovate, and take advantage of the hidden opportunities that may emerge from the crisis. Perhaps it is well that we’ve been through tough times, so that we might revisit our strengths and keep moving on with the invaluable knowledge we’ve gained,” he said.

WPI’s subsidiaries include Waterfront Citigym & Wellness, Inc., Waterfront Food Concepts, Waterfront Management Corporation, Waterfront Entertainment Corporation, Mayo Bonanza Inc., and Waterfront Promotion LTD.

BOI grants perks to 8 projects worth P1.66 billion

By Ma. Elisa P. Osorio (The Philippine Star) Updated November 25, 2009 12:00 AM

MANILA, Philippines - The Board of Investments (BOI) has given tax breaks to eight new projects with combined investments of P1.661 billion.

The government grants fiscal and non-fiscal benefits to investment that fall under the Investments Priorities Plan (IPP).

Five of the eight projects are mass housing projects.

Filipino owned Phoenix Petroleum Philippine Inc., filed an application for the construction and operation of a P615-million facility with distribution and marketing operations for petroleum products.

For this project, the firm has started building five tanks with a total capacity of 48 billion liters. The firm will market and sell petroleum products on a wholesale basis to its Luzon retail station, companies and industrial users in CALABARZON and Metro Manila. The project is located in Davao.

Another Filipino company Philippine Hydro Inc filed an application to establish and operate a P120-million water treatment facility. The company will install a 10- kilometer pipeline that will supply clean potable water to government owned Norzagaray water district.

Singaporean firm Philippines Auto Components Inc. will invest P59.49 million on a new line in its existing plant in Laguna. The firm is a wholly owned subsidiary of Denso Singapore.

The pointer parts will be exported to Japan, China and Spain and will be used for the Toyota Corolla, Yaris, Camry and Vitz. This part is a very important one because it indicates the status of the car in terms of speed, temperature and others.

Filipino-owned Shelter System Development Corp. filed an application for a P70.253-million low cost economic housing units in Lipa City Batangas dubbed San Antonio Homes.

The project entails the development of 1.7 hectares of land and the construction of 250 units. A total of 116 new employees will be hired once commercial operations start January next year.

Fifth Ave. Development Corp. will build a mass housing facility called P189-million Residencia Edades Condominium in Lahug Cebu.

The project involves the development of 802 square meters of land for the construction of a 12 story building with over 200 housing units.

Federal Land Inc. invested P279 million for the development of a mass housing condominium in Marikina City dubbed Marquinton-Toledo Tower. The project involves the development of 3,293 square meters of land.

Communities Isabella Inc received tax breaks for a P232 million project tagged Camella Isabella. This involves the development 204 housing units.

Household Development Corp. invested P97 million on a mass housing project in Antipolo named Crestwood Subdivision. A total of 85 housing units will be built.

Cebu bound to attract KPO investments, jobs

By Ehda M. Dagooc (The Freeman) Updated November 02, 2009 12:00 AM

CEBU, Philippines - After Cebu successfully etched its name as one of the world’s preferred investment sites for Business Process Outsourcing (BPO), especially for voice services, the province is now expected to attract another segment in the outsourcing industry, the Knowledge Process Outsourcing (KPO).

Business Process Association of the Philippines (BPAP) former chairman Bong Borja said Cebu could leverage on attracting this high-level outsourcing service especially that Cebu is now working at making the MBA hub in Southern Philippines.

Borja, currently the chief executive officer of call center giant Aegis People Support, said that although the BPO voice service still has a huge room for growth in the next few years, the huge KPO market is expected to greatly augment the employment generation as well as the investment revenue of the province.

KPO is an emerging segment in the outsourcing sector that the Philippines has yet to penetrate. This market is currently dominated by India.

This middle and higher level outsourcing service will need professionals such as financial analysts, people who have degree and masters in human resource management, accountants, among others.

KPO is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.

Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff.

KPO firms, in addition to providing expertise in the processes themselves, often make many low level business decisions—typically those that are easily undone if they conflict with higher-level business plans.

The profile of people being hired to serve within KPO service companies are more diverse than just being drawn from technical IT services – these are people with MBAs, and medical, engineering, design or other specialist business skills.

KPO delivers higher value to organizations that offshore their domain-based processes, thereby enhancing the traditional cost– quality paradigm of BPO.

The central theme of KPO is to create value for the client by providing business expertise rather than process expertise. So KPO involves a shift from standardized processes to advanced analytical thinking, technical skills and decisive judgment based on experience.

“These are the very expensive or high-paying type of outsourcing. I believe we have the talents and raw ingredients to attract the KPO market,” Borja said.

Although some existing outsourcing companies in the Philippines already cater to KPO jobs, Borja said “we have only done a small number of KPO works,” and it still has to be improved.

In an earlier interview with British Ambassador to the Philippines Peter Beckingham, he encouraged industry players to work on positioning the Philippines as the preferred KPO destination in the world, most especially for companies in the United Kingdom.

Beckingham said knowledge outsourcing is one of the BPO sectors that will make the Philippines as the preferred offshore site for British companies; this aside from the traditional call center operations that are also growing.

He said it is much cheaper to do research works in the Philippines, rather than doing it in London.

“India obviously still has far more investment,” Beckingham said but the influx of British BPO firms is expected in the Philippines, as the country has gained popularity among companies in the UK.

He mentioned that some BPO or KPO companies realized that Philippines offers more competitive workforce equipped with infrastructure that is at par with that of Bangalore (India).

Cebu could learn from Hawaii's tourism blueprint

(The Freeman) Updated November 24, 2009 12:00 AM

CEBU, Philippines - In order to sustain and further improve its tourism advantage, Cebu should get support and learn from Hawaii in terms of effective tourism blueprint.

Cebu Investments and Promotions Center (CIPC) managing director Joel Mari S. Yu said that Cebu should take advantage of the Hawaii government’s interest, especially from Honolulu Mayor Mufi Hannemann, to forge a stronger relationship between Cebu and Honolulu.

“We should learn how they were able to promote Hawaii [in terms of tourism]. We have the same attraction, unlike Paris, France and other well known destinations,” Yu said.

In 1994, the Cebu government forged a partnership with the Honolulu government, and one of the primary concerns was to learn from Hawaii, on how to formulate an effective tourism promotion blueprint.

However, Yu said the planned partnership was not successful because of the political transitions. Now, Yu hopes that the tourism private sector will lead in getting technical support from Hawaii.

“You see, Hawaii and the Philippines have the same attraction — sea, climate and the sun. We should learn from them,” Yu said.

In his recent visit to Cebu, Hannemann urged Cebuanos and the prime movers of the tourism industry here --- both government and private sector --- to re-enforce the partnership between Cebu and Honolulu which was started by Cebu City Mayor Tomas Osmeña over a decade ago.

“We can develop strong partnership together. Don’t just learn from our successes, but ask us why? We can help,” Hanneman told Cebuanos during his visit in Cebu as part of the 21st Trade Mission to the Philippines organized by the Filipino Chamber of Commerce of Hawaii and the Honolulu local government.

Today, the tourism industry in Honolulu is a US$2.5 billion industry, providing over 500 thousand jobs.

Despite its success in the tourism trade, Hanneman said his government is continuously pursuing projects that will further develop the tourism industry in Hawaii, investing further in infrastructure and sustainability projects.

“There a lot of opportunities for us to learn from each other,” Hanneman said.

While Cebu and Honolulu had already forged sister-city agreement years back, Hanneman said it is also high time for the business sector in both cities to forge strong linkages.

Recently, the Cebu Chamber of Commerce and Industry (CCCI) and the Filipino Chamber of Commerce of Hawaii signed a memorandum of agreement (MOA) for stronger linkage.

CCCI chairman for Trade Missions Nelson Bascones hopes that CCCI will be able to immediately connect with the Filipinos based in Hawaii and the Honolulu local government in order for Cebu to learn from them most especially in the area of tourism promotion. — Ehda M. Dagooc

Cebu to overtake India in attracting high-value non-voice BPO investments

(The Freeman) Updated November 25, 2009 12:00 AM

CEBU, Philippines - The Philippines is seen to overtake India in capturing the non-voice outsourcing investments in the next few years, as long more active promotions will be started highlighting the capability of the country to accept high-value BPO jobs.

Cebu, in particular, is moving towards attracting the non-voice BPO investors which will provide high-salary opportunity for professionals in different fields of expertise.

Cebu Investments and Promotions Center (CIPC) managing director Joel Mari S. Yu said that while Cebu has already made its name as the preferred location for voice-related BPO investments, it has to focus its promotions on inviting the high-value BPO investments in the Knowledge Process Outsourcing (KPO).

“We have to prove that we are more competitive than India in terms of quality and quantity. Right now, the Philippines is best for voice BPO, but there is bigger market in the non-voice segment,” Yu said.

KPO is the emerging segment in the outsourcing sector that Philippines has to yet to penetrate. Currently, this market is dominated by India.

This middle and higher level outsourcing service will need professionals such as financial analysts, people who have degree and masters in human resource management, and accountants, among others.

Cebu, on the other hand, has slowly attracted the software development investments, as it has proven to the existing software development companies, that talents here are far more competitive than that of India.

In a separate interview with Willem-Geert Lagemaat, chief executive officer of Lighthouse Holdings B.V., a new software development company recently opened in Cebu, he said that the firm found out that it is much easier to work with Filipino software developers than Indian.

Lagemaat said it is more difficult to deal with Indian software developers compared to Filipinos. “Culturally, it is easier to connect with Filipinos. The Philippines has long relationship with Europe and America. It did affect how people act and react.”

The Dutch outsourcing firm recently opened its software development and data processing facility in Cebu, its second facility in Asia.

According to Lagemaat, Cebu has huge potential to attract more outsourcing firms such as software development because of its impressive and easy to deal with pool of talents.

Compared to Indians, Filipinos can communicate well with foreign bosses, also Filipinos can easily adjust with the culture-difference working with foreign clients.

Lagemaat mentioned the “90 percent problem” often experience by outsourcing companies based in India. He said Indian developers can complete job assignment 90 percent on time, but can’t usually solve the remaining 10 percent of the job.

Inability to communicate well with their foreigner bosses is one of the problems faced by outsourcing firms based in India, Lagemaat added.

For his part, Commission of Information and Communication Technology (CICT) secretary Ray Anthony Roxas-Chua said that the industry is now focusing on diversifying into the higher value-added non-voice services, such as software development, which will provide higher paying jobs to Filipinos. — Ehda M. Dagooc

Waterfront seeks P2 billion for loan restructuring

By Zinnia B. Dela Peña (The Philippine Star) Updated November 25, 2009 12:00 AM

MANILA, Philippines - Gatchalian-led hotel operator Waterfront Philippines Inc. plans to borrow up to P2 billion for the restructuring of its loan with the Philippine National Bank and the renovation of its hotels.

In a disclosure to the Philippine Stock Exchange, Waterfront said its shareholders approved a board resolution authorizing the company to apply for loans of up to P2 billion.

Waterfront earlier remitted P826 million to the Philippine National Bank as complete payment of its outstanding obligation provided under their court-supervised compromise agreement. This brought the total amount paid by Waterfront to PNB to approximately P2.9 billion over the last eight years from the original loan amount of P780 million in 1997.

The original loan doubled its peso amount upon conversion as a result of the devaluation of the peso

The compromise deal forged in Nov. 21 prevented the foreclosure of the 562-room Waterfront Cebu City Hotel & Casino, the biggest in Cebu City and Waterfront’s flagship property, and the 167-room Waterfront Airport Hotel & Casino Mactan.

Part of the loan will be used to upgrade the company’s hotels in Cebu City, Mactan City, Davao City and Manila.

Shareholders also approved a plan authorizing Waterfront to convert up to P600 million of its advances to Waterfront Cebu City Casino Hotel Inc. into common shares of Waterfront Cebu City Casino Hotel Inc. at par value.

The settlement of the outstanding loan will allow Waterfront to focus on improving its hotel facilities and building inroads into new and emerging tourist markets.

Hong Kong Adopts Guidelines on Property Marketing

By JONATHAN CHENG

HONG KONG – Notoriously aggressive marketing tactics for Hong Kong residential property that helped turn the 46th floor of a landmark development into the 88th floor will soon be toned down.

Under new government guidelines, real-estate developers here will have to clearly state the floor number and square footage of condominium units in their sales materials.

"The government is deeply concerned about some recent sales tactics in the first-hand uncompleted residential property market and confusing market information," a government spokesman said Friday. "The new measures will further enhance the transparency of transactions ... and the clarity of property information."

Associated Press

New guidelines in Hong Kong require developers to clearly state the floor number and square footage of condominium units, after one builder represented the 46th floor of a landmark development, shown above, as the 88th floor.

Last month, blue-chip developer Henderson Land Development Co. said it sold a unit in its luxury condominium, 39 Conduit Road, for about US$56.6 million. The unit, which was marketed as sitting on the 68th floor of the building, was actually on the 44th floor.

The building's floor numbering plan skipped scores of numbers deemed to be inauspicious (those containing the number four, for example, which sounds like a Chinese word for death) and highlighted the ones considered lucky (such as ones containing eight, which sounds like a word for prosperity). The top floor of the 46-story building is called the 88th floor.

Now, the government says developers will have to "set out the floor numbering information clearly" in the front of their sales brochure.

The government also focused on how big developers say an apartment is. Typically, Hong Kong's developers include each unit's share of the public hallways, air conditioning units and the gym and spa in quoting its gross floor area to homebuyers. Developers don't always report the so-called "saleable," or usable, square footage of the apartment -- which includes only the unit itself, plus any extra balcony or utility areas.

Under the government's new measures, which it announced Friday in conjunction with the Real Estate Developers Association of Hong Kong, developers will have to show the per-square-foot price of individual flats, using saleable area.

At 6,158 square feet, the apartment at 39 Conduit Road sold for US$9,200 per square foot. After stripping out the extras, the condo is only 4,671 square feet, which works out to over US$12,000 per square foot.

A Henderson spokeswoman said that the developer would comply with any guidelines issued by the Real Estate Developers Association. Previously, Henderson Chairman Lee Shau Kee said the numbering of 39 Conduit Road was a response to market demand.

Under the government's new arrangements, developers will also have to disclose information about primary market transactions more quickly, within five days instead of the current period of one month.

CIPC: SRP management body underway

By Ehda M. Dagooc (The Freeman) Updated November 13, 2009 12:00 AM

CEBU, Philippines - South Road Properties (SRP) will soon install a Project Management Authority, and this idea is not new, as stressed by the Cebu Investments and Promotions Center (CIPC).

CIPC managing director Joel Mari S. Yu made this pronouncement following the statement made by opposition leaders Jonathan Guardo and Mary Ann de los Santos that SRP should be managed by an overseeing body like a management authority in order to have transparency in any transaction.

Yu said that the Mayor has already understood that the City-owned zone should have a project management agency, “We know that already, but it’s only a matter of time when the project management authority will be installed.”

CIPC is commissioned by the Cebu City government to promote the 300-hectare SRP, which is considered as the largest revenue generator of the City in the next few years, making Cebu City as the wealthiest LGU in the Philippines.

“It will come,” Yu said referring to the installment of a project management authority.

According to Guardo and de los Santos, a professional project management Authority should be installed in order for SRP to take off, and pursue transparent negotiations with investors, thereby contributing actual revenue to the City.

They said that because of the existing conflicts of the current Cebu City government with other Local Government Units (LGUs), the City has lost significant revenue generation.

SRP could have generated actual revenue for the City, if not of the current political conflict with other local government units (LGUs).

On the other hand, despite the unending controversies attacking the Cebu City developed South Road Properties (SRP), real estate giant Filinvest Land Inc. (FLI) has vowed to pursue with its P25 billion project at the area.

FLI vice president for the Visayas and Mindanao Tristan Las Marias earlier said that the company intends to break grounds at the SRP project early next year.

By year-end, FLI targets to finish the master-plan for the entire 40-hectare lot that is covered by its joint venture with the Cebu City government.

The multi-residential development, he said will give Cebu City another landmark that will have an international flavor, as well as attract the local investors.

Under the contract of the FLI-Cebu City joint venture, the development master plan for the property is to be approved by the City Council within 10 to 12 months after the contract signing last February.

He said Filinvest has commissioned the services of foreign consultants and international master planners for the development design.

“We want the development to have an international flavor to sell it not just locally but also internationally,” said Las Marias.

As of this point, FLI has not committed a name for the project yet, he said adding that as per the company’s commitment to the City Council, the development will be mainly multi-residential type with medium rise buildings, condominium units.

BPO sector keenly awaits Cebu's MBA hub outlook

By Ehda M. Dagooc (The Freeman) Updated November 16, 2009 12:00 AM

CEBU, Philippines - Business Process Outsourcing (BPO) industry players hope that Cebu will fast track its plan in positioning itself as MBA (Masters in Business Administration) hub in Southern Philippines, in order to attract higher level outsourcing investments.

Business Process Association of the Philippines (BPAP) former chairman, and chief executive officer (CEO) of Aegis PeopleSupport, applauded Cebu City Mayor Tomas Osmeña’s vision to make Cebu as “MBA Hub.”

According to Borja, the Mayor’s plan is seen to suit well the City’s bid to attract the new wave of outsourcing investments, which is the Knowledge Process Outsourcing (KPO), of which salary standard are much higher than the voice-outsourcing service like the call center.

Currently, investment banks in the US, and analysis jobs requirement in the Wall Street are being outsourced, and the Philippines has the capacity to capture this multi-million-dollar industry, as long as it has enough manpower pool.

Positioning Cebu as an MBA Hub, would well serve the City or the province’s bid in becoming the number one emerged outsourcing destination in the world, he said.

Earlier, Osmeña announced to BPO players here his plan to establish the first

University of the Philippines-MBA school designed solely for the call center agents or BPO workers, wherein schedule of classes will be adjusted depends on the convenience of the students.

“We will create brain-drain to the SRP,” Osmena said explaining that with the establishment of first UP-MBA school SRP will create a community of “bright” manpower pool to the SRP that will draw BPO investments to the area.

The Cebu City government will officially turnover a five-hectare property within SRP to the University of the Philippines-Cebu to establish the MBA school in the area. UP, on the other hand, is allowed to get industry partners to invest for the facility in the next three years.

The Mayor said that Cebu has recognized its weakness in providing good manpower supply to BPO investors, this is in the lack of middle-management or supervisory and managerial pool. Thus, the creation of the MBA school at SRP.

With this, Osmena said professionals will no longer consider call center agents as “dead-end” jobs, as it now provides after-work school “offering them a future”.

Meanwhile, an Australian investor expressed interest to partner with local institution to put an international MBA school in Cebu, to help arrest the problem of mid-management manpower pool that concerns Business Process Outsourcing (BPO) industry here.

Michael Burdette, chairman and director-finance for Tech Growth Solutions Cebu Inc., said that he currently on talks with local businessmen to venture an International MBA school here, so that Cebu will be able supply the much needed managers and supervisors for the BPO sector.

Burdette said he is willing to invest in a school facility that will also tap international MBA instructors in partnership with existing universities or colleges here.

“Cebu has huge potential for BPO investments, compared to other places in the Philippines, like Manila. Cebuanos are intelligent, hardworking, your tech sector is good,” he said stressing that establishment an immediate establishment of an international MBA school may further push up Cebu’s position as BPO investment magnet.

He said his investment here in Cebu, which provides backroom services for clients all over the world, is meant for long term, the reason why he is serious in working with local traders to fund or put up world-class MBA school here.

BPO sector keenly awaits Cebu's MBA hub outlook

By Ehda M. Dagooc (The Freeman) Updated November 16, 2009 12:00 AM

CEBU, Philippines - Business Process Outsourcing (BPO) industry players hope that Cebu will fast track its plan in positioning itself as MBA (Masters in Business Administration) hub in Southern Philippines, in order to attract higher level outsourcing investments.

Business Process Association of the Philippines (BPAP) former chairman, and chief executive officer (CEO) of Aegis PeopleSupport, applauded Cebu City Mayor Tomas Osmeña’s vision to make Cebu as “MBA Hub.”

According to Borja, the Mayor’s plan is seen to suit well the City’s bid to attract the new wave of outsourcing investments, which is the Knowledge Process Outsourcing (KPO), of which salary standard are much higher than the voice-outsourcing service like the call center.

Currently, investment banks in the US, and analysis jobs requirement in the Wall Street are being outsourced, and the Philippines has the capacity to capture this multi-million-dollar industry, as long as it has enough manpower pool.

Positioning Cebu as an MBA Hub, would well serve the City or the province’s bid in becoming the number one emerged outsourcing destination in the world, he said.

Earlier, Osmeña announced to BPO players here his plan to establish the first

University of the Philippines-MBA school designed solely for the call center agents or BPO workers, wherein schedule of classes will be adjusted depends on the convenience of the students.

“We will create brain-drain to the SRP,” Osmena said explaining that with the establishment of first UP-MBA school SRP will create a community of “bright” manpower pool to the SRP that will draw BPO investments to the area.

The Cebu City government will officially turnover a five-hectare property within SRP to the University of the Philippines-Cebu to establish the MBA school in the area. UP, on the other hand, is allowed to get industry partners to invest for the facility in the next three years.

The Mayor said that Cebu has recognized its weakness in providing good manpower supply to BPO investors, this is in the lack of middle-management or supervisory and managerial pool. Thus, the creation of the MBA school at SRP.

With this, Osmena said professionals will no longer consider call center agents as “dead-end” jobs, as it now provides after-work school “offering them a future”.

Meanwhile, an Australian investor expressed interest to partner with local institution to put an international MBA school in Cebu, to help arrest the problem of mid-management manpower pool that concerns Business Process Outsourcing (BPO) industry here.

Michael Burdette, chairman and director-finance for Tech Growth Solutions Cebu Inc., said that he currently on talks with local businessmen to venture an International MBA school here, so that Cebu will be able supply the much needed managers and supervisors for the BPO sector.

Burdette said he is willing to invest in a school facility that will also tap international MBA instructors in partnership with existing universities or colleges here.

“Cebu has huge potential for BPO investments, compared to other places in the Philippines, like Manila. Cebuanos are intelligent, hardworking, your tech sector is good,” he said stressing that establishment an immediate establishment of an international MBA school may further push up Cebu’s position as BPO investment magnet.

He said his investment here in Cebu, which provides backroom services for clients all over the world, is meant for long term, the reason why he is serious in working with local traders to fund or put up world-class MBA school here.

When Is a Real Estate Agent a REALTOR®?

A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world's largest professional association. The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics.

Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry.

Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice.

Working for America's property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members.

Check out the Public Awareness Campaign television and radio spots that encourage consumers to rely on the expertise and integrity of REALTORS®.

The NAR advertising campaign runs February through November on network and cable television and network and satellite radio, helping consumers understand the real value of working with REALTORS®. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS® are the experts of residential and commercial property transactions.

Analysis of Stock Market vs Real Estate Investing

Have you ever wondered, how does investing in stock market compares with real estate investment? Well they both have their merits and demerits and are suitable for different sections of people.

While stock market is accessible to mass retail investors and is far more liquid, real estate investment requires more upfront commitment and may not be liquidated that easily.

Stock investing and real estate investing have the same basic financial objectives. People invest money in both to make money from growth and/or income. Growth through price appreciation (increase in value or market price) is where you really make the big bucks.

Here we have tried to compare these investment options from a very objective perspective and have considered both these avenues from pure investment vehicles.

For simplicity, we have assumed that both stock and real estate investment grow at same rate of 10 percent per annum. Further, same amount of investment at same periodicity is considered in both the options. The time horizon for investments to mature is taken to be 5 years.

Suppose you decide to buy a real estate house valued at 50 lacs by taking maximum i.e. 85 percent financing. This means you put 7.50 lacs as down payment and rest spread out as equated monthly installments at 9% reducing rate of interest for a period of 15 years, which comes out to be Rs. 43,106 per month. Further an additional Rs. 385,000 would be required for covering registration of your house property and loan processing costs. An additional cost of maintenance of house property at the rate of 1 per cent per annum of the value of the house is considered.

You on the other hand invest the same amount of Rs. 7.50 lacs in stock market index fund i.e. 7.50 lacs starting investment and a regular investment of Rs. 43,106 per month during the investment period.

After acquiring your house property, you decide to rent it out at prevailing annual market rent of 2 to 3 percent of the property value to start the income stream. Although you can get dividends in stock investments, we have kept it out of consideration as dividend rates and assurance of dividends are not guaranteed. Further, dividends are paid out on the face value of the stock rather than on the market value of single share of that stock.

At the end of 5 years, you decide to sell off your investment in both these asset classes. The net value in real estate investment means the realized value after repaying the balance loan amount.

Stock Investing vs. Real Estate Investing

Let’s compare the profitability of these investment options.

Year	Invested Amount	Stock Investment	Real Estate Investment
		Net Value	Net Value	Income	Costs
Year 1	1,267,276	1,370,190	1,414,042	156,000	438,250
Year 2	517,276	2,055,323	2,146,086	168,000	59,000
Year 3	517,276	2,812,197	2,953,109	186,000	65,000
Year 4	517,276	3,648,327	3,842,805	210,000	71,667
Year 5	517,276	4,572,010	4,823,658	234,000	79,083
Total Value	3,336,380	4,572,010	4,823,658	954,000	713,000

Particulars	Stock Market	Real Estate
Total Investment (Amount Invested + Costs)	3,336,380	4,049,380
Total Amount Realized (net value + Income)	4,572,010	5,777,658
Return	37.04%	42.68%

Stock investing: The stock investment would generate a return of 37.04 percent in 5 years. Over the long term the stock market provide a return close to 10 percent plus per year. In this example our assumed growth rate was 10 percent per annum, plain and simple.

Real estate investing: The real estate investment yielded a return of 42.68 percent in 5 years. You may however decide, not to rent out your property but in such case your returns may also drop considerably as the costs involved in maintaining the property will have to be borne by you as out of pocket expense. Although, we have assumed a 10 percent per annum growth in property prices, however, real estate has shown far greater appreciations in the past. Investments in property is considered a safer bet when it comes to investing as you are investing in a “real” asset.

Investment Liquidity

Most important differences in these two investment options is liquidity. Selling a property can be costly and time consuming. On the other hand, stocks offer high liquidity, meaning that you can sell a stock investment quickly and easily with low costs.

This difference is critical, as you need to have a very high holding capacity in case you are not able to sell your real estate investment at the desired price.

Further, Real estate properties require active management, and lack good liquidity as an investment. Although, active management is required if you are investing in individual stocks and have not invested in an Index fund (as in this example) or have taken the Mutual Fund route to invested in stock market.

Awareness is the key to maximize returns

You and I both know that when you invest money to make money your success really depends on how well you know and play the game, no matter what arena you invest money in. For example, if you are good at selecting, improving, managing and financing real estate properties you can do much better than the above example.

You can also make over 10 percent a year in stock investing if you know how to invest in the stock market. The problem for most of us is that we don’t know how to invest in stocks, we are uninformed. Hence, stock investing for most of us is a risky business.

On the other hand, traditionally many of us are comfortable with real estate investing because we are more familiar with real estate market (we see it every day and better understand the factors that affect the real estate prices around us). Real estate properties have historically gone up in value without many violent downswings. The stock market usually experiences a greater degree of volatility.