HSMA turns to domestic tourism to boost hotel occupancy

A hotel industry association said on Monday that it aims to recover from the impacts of the Middle East war and boost the occupancy rate by focusing on domestic tourism offerings.

“With the high operating expenses now, electricity going up, gasoline going up, and all, the profit margins of hospitality, of accommodations, are affected,” Hotel Sales and Marketing Association (HSMA) Philippines President Loleth G. So told reporters on the sidelines of an event.

“We have to work harder, we have to really build the occupancy of the hotel not only occupancy, but of course also the average rates of the hotel,” she added. “So that we can really rebound in terms of profitability of our hotels.”

The HSMA official noted that hotels currently face the effects of the “slowed down” influx of international visitors due to the war that broke out on February 28.

“I wouldn’t say it has decreased but the pace really slowed down since February 28 because the airlines had flight cancellations,” Ms. So said. “That’s why we’re turning into domestic tourism now just to be able to augment the gap of the arrivals.”

Bookings from inbound tourists in HSMA hotels declined from 40% during the pre-pandemic period to about 20% after the Middle East crisis.

“That’s how big the drop was for global because we lost a lot when Dubai closed the airport because obviously it’s a gateway from Europe,” she said. “To go around is a totally different story and more expensive for the travelers.”

Latest data from the Department of Tourism (DoT) showed that visitor arrivals reached 2,955,014 as of June 17, led by the United States with 591,569 tourist arrivals.

While international arrivals climbed by 6.16% from the same period last year, Tourism Secretary Maria Bernardita “Dita” Angara-Mathay said domestic tourism struggles to compete with neighboring countries on pricing.

“They go to Vietnam and Thailand, their numbers are high because they are landlocked, crossing their borders are counted,” she told reporters on Monday in mixed Filipino and English.

“Unlike us, we’re archipelagic that’s why it’s understandably more expensive, that’s why we’re doing our domestic campaign,” she added.

Under the “Discover More to Love” campaign, DoT will introduce curated, discounted travel packages from local tourism stakeholders, including HSMA. Discount rates for member hotels under HSMA may range from 50% to 70%.

“We have adjusted to that just to make sure that we really become more competitive to the domestic market,” Ms. So said.

HSMA currently has partner hotels in major tourist hubs like Manila, Boracay, Cebu, Palawan, and Davao. — Almira Louise S. Martinez