Why jack up hotel rates?

DFA official laments ‘expensive’ hotel rooms in Cebu

Undersecretary Laura Del Rosario – Office of the Undersecretary for International Economic Relations (OUIER), Department of Foreign Affairs, Chair for the APEC Senior Officials’ Meeting. (CDN PHOTO/CHRISTIAN MANINGO)

A call to unite Cebu behind the successful hosting of the Asia Pacific Economic Cooperation (APEC) meetings in August to October came with an unexpected lament.

Why are hotels rates in Cebu so expensive?

At least three hotels were identified by a senior government official as having jacked up their rates, and stirring complaints from foreign delegates.

“Why is Cebu doing this?” asked Foreign Affairs Undersecretary Laura del Rosario, who gave an “APEC 101” briefing for government information officers and local media at the Capitol social hall in the morning.

“Delegates are complaining to my office that some hotels have raised their rates by 120 percent of published rates,” she said.

She cited an example of a hotel room that cost P5,800 a day  on Aug. 5 but was raised to P13,350 as an ÄPEC rate for a booking on the days of scheduled meetings of ministers and working groups.

Del Rosario appealed to the Department of Tourism (DOT) to urge   hotels to  “be reasonable” and show a “conscience” since 3,000 delegates are expected to come to Cebu for this premier gathering of economic and trade officials of 21 APEC economies.

“Don’t treat us like tourists.  We are bringing the peak (season) to Cebu,” she said, as well as a golden opportunity to show the world the best of Cebu.

She worried that delegates would have the impression that Cebu was taking undue advantage of the global event.

“Not all delegates are rich. They have to travel on government budgets too. Are you supposed to spend that much knowing it’s your government’s money?” said Del Rosario, undersecretary for international economic relations,  who  is chairperson of the APEC Senior Officials Meeting.

Del Rosario said she was surprised that the rates of some accredited Cebu hotels were even “more expensive” than in Sofitel,  a luxury hotel in Manila.

EMERGENCY MEETING

Ambassador Marciano Paynor, director general of the APEC 2015 Philippines National Organizing Council (NOC), flew to Cebu yesterday to deal with the situation.

His visit to the Governor’s Office was not announced in the forum, but reliable sources said he was  busy contacting hotel management representatives.

Acting Gov. Agnes Magpale said an emergency meeting was scheduled at 6 p.m. to discuss this.

The closed-door meeting held at Radisson Blu was attended by DOT Regional Director Rowena Montecillo; Lito Maderazo as overall coordinator of the APEC Cebu Organizing Committee,

Lapu-Lapu tourism commissioner Hembler Mendoza and top representatives of various hotels, including Radisson Blu, Marco Polo Plaza, and Marriott Hotel.

According to Maderazo, the hotel managers explained that “they have answered the questions of the NOC” about their rates and that a written report was submitted to the national organizers led by Paynor.

Maderazo  said the matter of rate fixing was explained as “an ïndustry practice”.

“When the demand is greater than the supply, the price will increase,” he said.

Maderazo said the local committee cannot impose price changes on hotels, and can only ask hotels to understand the context of  APEC.

REPUTATION

Undersecretary del Rosario, in a later interview, said APEC organizers did not encounter complaints from delegates of hotel overpricing in other venues in Boracay or Iloilo.

She raised a red flag, saying the high cost of accommodations may damage  Cebu’s reputation.

“Perhaps, then, the motto of the DOT will not be ‘It’s more fun in the Philippines’ anymore, but ‘It’s more expensive in the Philippines, especially in Cebu,” she said.

Some hotels in Cebu, including those accredited by APEC, earlier announced an expected increase in rates in time for the meeting dates.

However, September is not normally a peak seasons for hotels, according  to tourism industry sources.

Cebu expects 3,200 delegates to be coming in and out of the island from Aug. 22 to Sept. 6 for the Third Senior Officials’ Meeting (SOM3).

Problem

Del Rosario said delegates did not have problems with hotel rates in Boracay where they held the second SOM in May during peak summer season or in Iloilo.

Prices ramatically increased in Bali, Indonesia, back 2013 when it hosted the APEC CEO Summit.  However, Del Rosario explained that since Bali, like Boracay, is an island, delegates didn’t have a hard time going from one point to another.

“But here (in Cebu), if you are far, it will take you two hours to get to the meeting venues. They would like to go to cheaper hotels but they might miss their meetings because of the traffic here,” she said so are “forced” to book hotels near the venues.

There are eight delegated city hotels for APEC, of which four are appointed venues for around 90 technical meetings, namely, Marco Polo Plaza Cebu, Waterfront Cebu City Hotel and Casino, Cebu City Marriott Hotel and Radisson Blu Hotel Cebu.

Some is lined up for Aug.22 to Sept.6; Structural Reform Ministerial Meeting on Sept. 7 to 8; and the Finance Ministerial Meeting on Sept. 10 to 11; while scheduled meetings on transportation and energy haven’t been announced yet.

Provincial Information Officer Ethel Natera confirmed that a meeting was held to discuss  the problem and that hotel representatives informed the COC that they already forwarded their statements to the APEC National Organizing Council, headed by Paynor.

“With regard to prices, I cannot give a reply on behalf of the hotels,” said Natera.