Ambassador Marciano Paynor Jr. yesterday set aside the issue of hiked hotel rates in Cebu, saying the prices had been negotiated months ago for the Asia-Pacific Economic Cooperation (APEC) meetings.
Paynor, director general of the APEC National Organizing Council (NOC), spoke after a brief closed-door meeting with hotel representatives and Gov. Hilario Davide III, who was supposed to appeal to general managers to temper” their rate increases that reached over 100 percent of published rates in some APEC venue hotels.
“I understand why it was raised, in the desire that it can still be lowered. But at this point, all negotiations have been finished because we have been negotiating since six or seven months ago,” Paynor told reporters later.
Paynor said it wouldn’t benefit Cebu as a host to continue highlighting the issue. He made an appeal to set aside the topic until after the conduct of APEC meetings, which will be held in Cebu Aug. 22 to Sept. 11 , then a few days in October before winding up in Manila in November.
The governor’s meeting with general managers of some accredited hotels, including Harolds and Radisson Blu, lasted about ten minutes. Hotel rates were not discussed.
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Paynor briefed the governor before the meeting.
Paynor said rates in 11 accredited hotels in Cebu were spelled out in an APEC 2015 Administrative Circular, which include conference venues and hotel accommodations ahead of the meeting dates to enable delegates to prepare.
Part of the circular, which was shown to Cebu Daily News, reflected rates of about P11,000 to P13,000 a night for high end conference venue hotels like Radisson Blu, Marriott and Marco Polo Plaza.
There were other hotels offering lower rates of P3,500 to P5,000 a night.
Paynor said these rates during APEC dates were approved by the NOC before the circular was sent out. He said the Department of Tourism (DOT) accredits the hotels, but it was the NOC that negotiated the pricing.
Some venue hotels, he said, had to fulfill certain requirements for simultaneous meeting rooms and special facilities.
“We have a range of prices from high to low. The delegates can choose which hotel they want to go to,” Paynor said.
Personal survey
Nine hotels were accredited for APEC meetings in Cebu starting Aug. 22 .
Based on a personal survey, Paynor said he found out that some Cebu hotels are 85 to 90 percent booked during the APEC dates.
He said market forces of supply and demand influence the rates.
Last week, Foreign Affairs Undersecretary Laura del Rosario said her office received complaints from delegates that some Cebu hotels had jacked up rates 120 percent, which would damage the reputation of Cebu’s tourism destination.
Paynor said he understands del Rosario’s position as chairperson of the APEC Senior Officials Meetings.
“I think that for the most part, she was worried that when we have very high hotel rates, the others might not come because it is beyond (their budget),” he said.
Paynor said he did not receive complaints from delegates personally and thinks the complaints del Rosario received were from local delegates.
He said Philippine government personnel who attend conferences only get P800 as a daily allowance based on audit rules.
“That is P400 for the hotel and P400 for food… Even if you are the governor, you will get the same amount,” Paynor said.
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When del Rosario first aired her lament in an APEC 101 briefing in the Capitol last Friday, she said that she had her staff had to struggle with a P3,000 a day budget for a hotel stay.
Policy
On average, a hotel room in Cebu costs $176 per night based on international published rates, said Paynor.
He said delegates have to stretch their budget or use personal funds to cover the gap.
At least 3,200 delegates are expected from 20 APEC member economies.
Paynor said rates in international hotel chains have rates really go up when they are venues for APEC meetings or other big events.
“It cannot be helped. That is their policy,” Paynor said.
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