Key infra projects to help sustain tourism growth
The completion of several key infrastructure projects in Cebu was deemed crucial in further boosting the attractiveness of the province as a tourist destination.
Seen as significant infrastructure projects include the Mactan-Cebu International Airport (MCIA) Terminal 2 project; the Cebu-Cordova Bridge; and the proposed Bus Rapid Transit system, which is one of the priority projects of the Duterte administration.
In a statement, Colliers International Philippines said that the upgraded airport terminal alone should help entice more foreign airlines to mount direct flights to Cebu.
“Cebu serves as the jump-off point to other Visayas and Mindanao destinations, hence the need to expand its airport’s capacity,” Colliers said.
GMR-Megawide Cebu Airport Corp. (GMCAC), the firm behind this public private partnership project, had said that the MCIA Terminal 2 was on track for completion by June 2018. The MCIA expansion is expected to increase passenger capacity to 12.5 million, from the current 4.5 million.
Cebu may also attract more tourists over the medium term given the completion of other key projects that will considerably ease travel within the city and its environs.
Other factors seen to boost Cebu’s tourism industry include the approval of the Asean Multilateral Agreement in Air Services; and its emergence as a meetings, incentives, conventions and exhibitions (MICE) destination.
“With growing interest in Cebu as a MICE destination, we encourage developers to apportion a bigger space for conference rooms and other similar facilities,” said Gerard Padriga, general manager of Colliers International’s Cebu office. Last year, Cebu-based Gaisano Capital Group launched the 1,500-seat Mactan Island Convention Center.
“Cebu’s rising attractiveness as a tourist spot and growing competitiveness as an investment destination should support a 15 to 20 percent growth in tourist arrivals over the next 12 months,” Padriga added. This should sustain hotel occupancy between 65 and 70 percent in Metro Cebu in 2017.
The continued surge of tourists will meanwhile provide impetus for developers to ramp up construction of hotels and resort-oriented condominium projects, according to Colliers Philippines.
Currently, developers have lined up projects due to be completed over the next few years. The Ascott Limited is planning to open Citadines Cebu City in 2019 and Somerset Gorordo by 2021. Ayala is building a Seda Hotel to be completed in 2019, while Double Dragon has disclosed plans of building Jinjiang hotels in the city, Colliers said.
Other notable projects include Rockwell’s Aruga resort; Duros Land’s 23 Minore Park Hotel; Grand Land and Dusit International’s Dusit Princess Hotel; and Megaworld’s hotels under the Belmont brand, it added.
