Crisis-hit hotel industry still sees growth

The country’s hotel industry has not been spared from the effects of the global economic crisis as less people stay in hotels and serviced residences to make the most out of their hard-earned money.

According to global serviced residence operator Ascott Interanational, occupancy has gone down from last year until the first quarter of 2009, even for hotel companies which primarily serve corporate accounts.

“In terms of occupancy, over the first few months of this year, we’ve seen a decline of about five percent because some corporate accounts, especially in the export-oriented areas have closed,” said Ascott International’s country general manager for the Philippines Arthur Gindap.

Still, Gindap said corporate accounts are what helped the company hold up against the crisis as they tend to stay longer in serviced residences as compared to tourists.

Ascott has four high-end serviced residences in the Philippines, all in the Makati central business district: Somerset Millenium, Somerset Olympia, Somerset Salcedo, and Ascott Makati-the former Oakwood Premiere.

All four service a mix of 90 percent corporate accounts, and 10 percent leisure/tourist customers.

“We plan to maintain that mix for the long-term,” Gindap said.

To cope with the crisis, Ascott International’s sales and marketing director Joanne Golong-Gomez said the group is concentrating on improving its services to add value for their long-staying resident clients.

The company’s “As you like it” service for instance, offers clients the opportunity to customize their rooms, while the Ascott/Somerset Host service assigns a host or server to cater to the clients’ needs during her stay.

According to Golong-Gomez, the company is banking on the continued influx of business process outsourcing clients as growth drivers.

“We’re now looking at tapping other markets such as oil and mining companies, and even pharmaceutical firms,” she said.

The company expressed optimism that recovery will be felt in the latter part of 2009, and is even looking at expansion in the coming years.

For his part, Gindap said Ascott International may bring in its third “budget brand” Citadines as soon as market conditions stabilize.

Ascott International, a member of CapitaLand, is the largest global serviced residence operator in more than 60 cities in Asia Pacific, Europe and the guld region. –abs-cbnNEWS.com