Business events players in the Philippine island of Mindanao, whose city Davao is a popular meetings and events destination, are turning to new markets and adoption new business approaches to cope with the slowdown in business this year amid the island’s martial law and continuing war in Marawi.
A business hotel in Mindanao is now pursuing the China market, whose citizens have recently been offered visa on arrival, after suffering from cancellations of business events bookings this year and up to May next year, with some of these events relocated to either Manila or the Visayas.
The general manager of this hotel complained that the ballroom, which used to be very busy, has got only one business event for the rest of 2017 and the hotel’s occupancy slid to 49 to 59 per cent on average.
Dottie Wurgler-Cronin, general manager of Marco Polo Davao, said working together as a cluster and cross-selling with two other Marco Polo hotels in Manila and Cebu helped.
“That’s why we see an uptrend in July-August,” she said.
Agreeing, Frank Reichenbach, general manager of Marco Polo Ortigas Manila, said: “June-July was softer, August-September strong and we picked up some business in Davao”.
For Rajah Tours, reliance on the leisure market has grown as the company sees a dip in business events demand. Company president Jojo Clemente told TTGmice that the only big groups it is handling are the Ambassador/s Tour from the US and the Canada Winter’s Escapade.
Clemente underlined the importance of establishing a perception of peace and order among business event planners and delegates who prefer low-risk destinations.
Industry leaders are thus focusing also on clear communications with source markets.
Cecilia Sanchez, CEO of international event organiser Leverage International, said: “It is really very important to communicate what’s really happening not only from the negative point of view but also from the positive point of view. Balanced reporting. There are negative things happening but there are also positive things that should be interesting to business people.”
Marisa Nallana, secretary-general of the Philippine Association of Convention/Exhibition Organizers and Suppliers (PACEOS), assured source countries: “We recognise their security and risk concerns, but the local government units are doing their best to keep their destinations safe and they are also putting together more attractions to encourage visitors.”
Meanwhile, Philippine industry players are looking forward to the country’s first nationwide business events roadmap which will be unveiled this month to address issues and challenges in positioning the country as a competitive destination, tourism undersecretary Benito Bengzon Jr. disclosed.
Part of the deliverables is an extensive business events data base that’s currently lacking and which will provide strategic direction to both the tourism department and the private sector, he said.
