BRT study may start in March

Updated February 03, 2009 12:00 AM CEBU – If all things go as scheduled, the World Bank-funded study for the Bus Rapid Transport system for Cebu City will start in March. “We hope that WB-PPIAF can procure and engage the consultants by this month so that they can start by March,” Cebu City Planning and Development Officer Nigel Paul Villarete said. In this manner, the World Bank fund agency the Public-Private Infrastructure Advisory Facility study will compliment the local study to be made by the Department of Transportation and Communication by March since it will already be bidded out next week. In last year’s proposal discussion, Villarete said they worked closely with the DOTC in harmonizing the terms of reference of both studies so they will not overlap each other but harmonize the different aspects of the BRT implementation. He said DOTC’s study will be heavy on data generation and analyses on a metro-wide scale in order to understand how different mass transport links and routes maybe envisioned in the future. On the other hand the WB-PPIAF study will identify a concept leading to a preferred option for a potential Cebu demonstration BRT corridor which can be used as the first step in introducing a city-wide formal public transport system for Cebu. A BRT is like the Light Rail Transit but with buses plying the routes instead of trains. It will cut through the cities of Talisay, Mandaue and Lapu-Lapu towards the heart of the South Road Properties. WB-PPIAF is setting aside $355,000, or roughly P16.8 million, in technical assistance for the said study. — Ferliza C. Contratista/BRP (THE FREEMAN)

AboitizLand deems global Pinoys as real estate driver

By Ehda M. Dagooc Updated February 02, 2009 12:00 AM

Despite massive lay offs happening in other parts of the world, which may affect some of the Overseas Filipino Workers (OFWs), real estate developer AboitizLand Inc. expressed sustained confidence over the Filipino global community as sales driver for real estate products in the Philippines.

AboitizLand president and chief operating officer (COO) Andoni Aboitiz deemed the current economic turmoil as "temporary" and that Filipinos working abroad will always have the appetite to invest on properties.

About fifty-percent of AboitizLand's clients for its residential projects are overseas-based Filipinos. Amid the threatening economic situation, Aboitiz keeps his positive outlook that real estate take-up will continue to grow this year.

"We hope that 2009 will just be a bump on the road. At this point, we don't really know how the global financial crisis and displacement of OFWs will affect us," Aboitiz said.

Aboitiz mentioned that the year 2008, was the "best real estate year" for AboitizLand with 50 percent of the sales coming from OFWs and from overseas Filipinos.

However, Aboitiz has not discounted the effect on economic crisis on the real estate business saying, "there will be an effect but hopefully, not a dramatic one. Although we take it one year at a time, we always look at things in the long term basis."

"Real estate, by nature, is a boom and bust industry. Our plan is not to enjoy the boom nor suffer the bust; we want to be as steady and stable as possible," he added.

Luckily, he said AboitizLand's buyers are not speculative, since its projects are targeted to end-users. About 80 percent to 90 percent of AboitizLand's buyers are long-term investors, or the real end users, not the buyers that largely speculate and buy properties only for investment purposes.

As early as now, Aboitiz revealed AboitizLand is already in the planning stage for developments they hope to put up in the next three years.

Currently the company is constructing iMEZ, a five-story building designed for business process outsourcing (BPO) locators, located at the 1.8-hectare expansion area of the Pueblo Verde commercial center fronting the Mactan Economic Zone (MEZ-2) in Lapu-Lapu City, Cebu.

Aboitiz said the company remains bullish in its outlook for Cebu's BPO industry despite conflicting forecasts of the sector.

"Our judgment call is that the BPO is a long-term business. There may be hitches and bumps in the coming months but we have a lot of confidence in the long-term viability and stability of the BPO," Aboitiz said.

Last year, AboitizLand spent P2.3 billion in real estate projects in Cebu, providing new residential and commercial facilities.

The largest capital expenditure of the company was the development of its Urban Village development called "Persimmon", of which P2 billion is going to be spent for the full completion of the project.

The iMEZ project on the other hand, incurred the company at least P160 million for the building construction alone.

Also, AboitizLand opened its phase-2 development of the chic residential project in the Southern part of Metro Cebu called Kishanta. The company invested an estimated P150 million for the horizontal development of Kishanta subdivision expansion.

Travel sector eyes the MICE market

Updated February 02, 2009 12:00 AM

Despite the anticipated slowdown of the international travel industry this year brought about by the looming recession of most major economies in the world, Cebu’s travel industry continues to look at silver linings especially in attracting the so called meetings, incentives, conventions and exhibits (MICE) market.

DOT Undersecretary Phineas Alburo expressed that the MICE market of most surviving economies around the globe such as China, continues to post a strong growth potential for the country’s tourism industry especially Cebu which is starting to be known as a conventions hub in Asia.

He said that China in particular has several multinational companies that can be tapped for their meetings and events especially for their incentives taking into consideration that the country is only within the Asia Pacific region, hence cost will be lesser compared to sending their employees further West.

In another interview, Parklane general manager Cenelyn Manguilimotan said that although they are starting to prepare for the anticipated slowdown in the global tourism industry, they are still focusing their attention to growing their MICE market as there are still many guests from different sectors who continue to come in thus far sustaining their business’ growth.

“We are doing a marketing plan for the anticipated decline of tourism and we are taking one step at a time. Right now in reality we are facing a slowdown for the traditional markets but the MICE market is still showing positive signs so we are focusing our attention to attracting this segment some more,” said Manguilimotan.

At this point of global crisis, leisure travel is foreseen to decline tremendously as most travellers in this segment are affected with the slowdown so most are now banking on the MICE market especially in the domestic scene.

Another hotelier, Carlo B. Suarez, assistant manager of the Cebu Grand Hotel said that as a way to survive the foreseen crisis, they have planned to diversify and expand their business looking forward to attracting more clientele especially from the MICE market.

Also Mango Park operator Sergio Lim said that although they expect to do more belt tightening efforts this year as impacts of forecasted effects of the global crisis, they still continue to be optimistic because of the growth of their MICE market.

He said that the MICE market is an important market segment that can sustain the growth of the sector especially at this point of economic uncertainty and volatility.

However, there are other players that are seeing a possible decline of this market segment in line with the foreseen slowdown of consumer spending.

Cebu Travel and Tours Association former president Cecil Sa-a said in a previous interview that corporate travels might go down this year as most companies abroad and domestically are experiencing the effects of the financial crunch brought by the global recession.

However, there are still emerging markets such as China, India and Russia which economies are still thriving amidst the on-going recession and whose tourists continue to come to Cebu.

“The Philippine travel market is getting stronger compared to other markets as we continue to attract throngs of Chinese, Russians and Indian tourists. This year, along with the anticipated slowdown, the corporate market will still be there but it will possibly decline but we should continue with our marketing efforts,” she said. — Rhia de Pablo

International firms plan to buy Coral Reef resort

By Ehda M. Dagooc Updated February 03, 2009 12:00 AM

Two international companies have offered their interest to buy the 36-hectare property in Mactan Island, formerly the location of defunct Coral Reef Resort, now owned by Lucio Tan-led Philippine National Bank (PNB).

Department of Tourism (DOT) chief Joseph Ace Durano said that a Korean company has submitted its formal interest to buy the property, which is expected to eventually settle the ongoing rift with the former Japanese owner.

"Part of the conditions of PNB is for the buyer to absorb the legal concerns of the property," said Durano.

Because of the buyers' strong interest to immediately develop the property, Durano said one of the buyers may agree to take-in the legalities of the resort property at a lower price.

Originally, PNB has pegged the property's price at P800 million, Durano said negotiations are still ongoing. Asking price may lower to P750 million, considering that the approved buyer will have to settle the existing legal problems of the property.

Coral Reef Resort company operators Japanese-led Palm Tree Estate Inc., and Bell Air Golf and Country Club accused the Lucio Tan-led PNB of an illegal foreclosure of the property.

Palm Tree Estate Inc. and Bell Air Golf and Country Club led Kenichi Akimoto was able to secure a loan from PNB in 1997 of P340 million, and second loan of P80 million, for the development of the resort's expansion to build condominiums and exclusive golf club.

The construction of the expansion project started in 1994. The company was granted the loan three years later while the economic crisis hit the Asian region, affecting badly the Philippine economy.

PNB reportedly released the loans in tranches, which crippled the company's ongoing project that time.

In 2006, a China-based group attempted to ink a deal with the PNB to buy the idle Coral Reef Resort property.

The Chinese group supposedly planned to build a medium rise hotel and resort development with convention center, and develop the 9-hole golf course of Coral Reef, however, due to legal constraints, the deal was unfortunately called off.

This time, two multinational companies have expressed interest to buy the property, which is believed to have a huge potential for business.

Durano said as long as the buyer will take in the responsibilities of facing the legal problem of the property, PNB is willing to dispose it.

In a separate interview with Akimoto earlier, he said that the company will not surrender the resort property to PNB. Palm Tree plans to resume operations of the resort, as soon as the legal issues are solved.

Imperial Palace Waterpark declared tourism ecozone

By Ehda M. Dagooc Updated February 02, 2009 12:00 AM

The Philippine government has proclaimed the eight-hectare Imperial Palace WaterPark Resort and Spa in Mactan Island, as the first tourism economic zone in Cebu.

The P4.5 billion condotel project, developed by Korean-led company Philippine BXT Corporation targets to have its soft opening and start partial commercial operation on March this year.

"This is the first tourism economic zone proclaimed by President Gloria Macapagal Arroyo in Cebu, if not in the Visayas," said Philippine Economic Zone Authority (PEZA) director general Lilia De Lima.

During the ceremonial turn-over of the proclamation, De Lima said the development will show to the world that Philippines, specifically Cebu that business is bullish, despite the global economic downturn.

Under Presidential Proclamation number 1681, BXT Corporation automatically avails fiscal perks from the government, such as duty-free importation of capital equipment, and other tax incentives, including the promotions of the Department of Tourism's (DOT) "Live Your Dream" campaign.

DOT secretary Joseph "Ace" Durano said in an interview that other tourism-related projects in Cebu will soon be declared as Tourism Zone, and this will help tourism sector thrive amid the distressed economic situation in the world, while attracting more investors to put in tourism-related projects in the Philippines.

Also, to attract more investments in the tourism industry the DOT and PEZA inked a memorandum of agreement (MOA), to grant special economic zone status to tourism development zone; tourism estates including grant of incentives to registrable activities.

Pursuant to Republic Act number 7916, as amended by R.A. number 8748, tourism development zones/tourism estates may be granted Special Eco-Zone status upon registration to PEZA and issuance of the required Presidential Proclamation.

PEZA however will only consider proposed tourism development zones/tourism estates endorsed by the DOT, consistent with the guidelines created by both concerned agencies.

Tourist-oriented enterprises locating in Tourism Economic Zone (TEZ) may be granted fiscal and non-fiscal incentives provided under RA 7916, as amended.

According to Durano, the Robinson's Land condotel project on Mactan Island called Amisa, and other expansion projects like that of Shangri-La Mactan Island Resort and Spa are now currently applying as TEZ.

DOT and PEZA have identified the list of registrable activities for availment of incentives that will be locating inside the proclaimed TEZ, these are; Deluxe or First Class Hotel, condominium hotels and serviced residences/apartments; AAA class resort; theme park; museum/art galleries; health and wellness facility, sports and recreational center; international convention/trade center and airport, seaport.

Phil. BXT Corporation, the developer of the project, has tapped the services of Imperial Palace Hotel in Seoul, Korea to run and manage the resort. Imperial Palace Hotel is one of the finest in Korea with a vast network in their home country and the rest of the world.

Of the total 556 rooms, 425 room units will be available for sale for investors, and these units will be managed by Imperial Palace Hotel chain.