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Blog Post

Cebu City hotels’ occupancy rate drops amid COVID-19

March 14, 2021 Uncategorized

CEBU CITY, June 17 (PIA) — Hotel occupancy rate in Cebu City has taken a dive amid the COVID-19 pandemic after the lockdown implemented by the government has severely affected the local tourism industry. 

Travel for leisure has been suspended for over three months now following Pres. Rodrigo Duterte’s declaration of a public health emergency in March. 

Of the total 41 hotels under the Hotel Resort Restaurant Association of Cebu Inc. (HRRACI), 37 are currently open.

About 70 to 80 percent of the operating hotels are commissioned by the Business Process Outsourcing (BPO) companies. 

During the “Peer Talks 3” initiated by the Regional Development Council-Social Development Committee (RDC-SDC), HRACCI President Carlo Suarez said the BPOs “gave an occupancy boost during the first part of the enhanced community quarantine (ECQ).” 

However, this would not sustain the hotels’ operating expenses especially with some BPOs having ended their hotel servicing contract on May 15, 2020. 

Suarez also shared that hotel operations under the “Tourism COVID Normal” are dependent on the opening of borders, travel agencies and tour operators, and meetings, incentives, conferencing, exhibitions (MICE) businesses. 

Prior to the COVID-19 pandemic, the hotel industry in Cebu City was enjoying high occupancy and revenue per average room (REVPAR). 

HRRACI is currently trying to come up with a set of guidelines for contactless methods of handling guests. 

The association’s member hotels and restaurants are also complying with health and sanitary protocols. (poc/PIA7)

source https://pia.gov.ph/news/articles/1044990

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