Damaged resorts in Cebu Province may get loans from gov’t banks

This is Hermit’s Cove now after Typhoon Odette ravaged central and southern Cebu nearly three weeks ago. The famous tourist spot in Aloguinsan town remains closed until further notice, the Provincial Tourism Office reported. | Photo by Cebu Provincial Tourism Office

CEBU CITY, Philippines — Resorts in Cebu Province that sustained damages from Typhoon Odette will have a chance to rebuild again.

Governor Gwendolyn Garcia said that the Capitol is in negotiations with the Landbank of the Philippines (LBP), Development Bank of the Philippines (DBP), and the Philippine Veterans Bank (PVB) to provide loans to resorts that were badly hit by the typhoon.

This is a way to rehabilitate the tourism industry in the province which sustained over P112 million losses because of the typhoon from various famous tourist destinations including Kawasan Falls in Badian, diving spots in Moalboal, and Bojo River, and Hermit’s Cove in Aloguinsan. 

READ: Damage in Cebu province’s tourism industry: P112 million and counting

Garcia said that the banks have agreed to provide the loans to the resort owners not only for rebuilding but also for expansion, at possibly low interest of only 5 percent per annum.

“I asked that the interest rate will not be higher than 5 % per annum, and the banks have, in principle, agreed. They say they will look for special funding just for this. I also asked for a reasonable grace period within a certain term, that you only pay for the interest. You don’t start paying yet the capital. So, they are also amenable to that,” said Garcia.

The Capitol plans to hold a one-stop-shop at the Social Hall soon for the banks and resort owners for this loan so that both sectors can meet and negotiate the loans.

This way, the banks don’t have to travel to every resort just to get the requirements from the resorts, and resort owners do not need to seek appointments to get advice or consultation on their loan applications.

Prior to that, the resort owners must also send in their applications to the Provincial Tourism Office as a Technical Working Group (TWG) will be assessing their applications within three to five days before forwarding these to the banks.

The Capitol will announce the start of the application period.

“Initial computation of this, we are hoping by the second week of February, the loans they applied for will be ready for release to our resort owners for they can immediately start work on damages,” said the governor.

Qualified resorts must be accredited by the Department of Tourism (DOT) and they must have a certificate of compliance (COC) from the Capitol as proof of their compliance to Executive Order No. 20 and 20-A.

These orders detail the requirements for resorts on capacity, events, activities, personnel, and guests.

Garcia said that all resorts in Cebu may avail of the loan because the loans do not only apply for damages and rebuilding but also includes expansions such as the adding of more rooms or more amenities.

“These loans will be on very easy terms. It may be that they don’t even need to mortgage their land or property. The banks are looking for the best means,” she said.    /rcg

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