Cebu hotels lament Sinulog Festival lower occupancy due to vacation home rentals that don’t pay taxes
HOTELS IN Cebu City usually enjoy full or almost full occupancy in the run-up to the Sinulog Grand Parade every third Sunday of January, but not this year. The Hotel, Resort, and Restaurant Association of Cebu (HRRAC) said members’ average occupancy rate is currently at 60%, one of the lowest in recent years. HRRAC President Carlo Suarez said they attribute this mainly to the proliferation of vacation home rentals, which he said are mostly unregulated and do not pay taxes. “Legitimate hospitality businesses follow the rules, pay taxes, and other duties, while an increasing number of rooms are floated online,” he said. Mayor Edgardo F. Labella, on the other hand, said hotels may have themselves partly to blame. “You know, there are already many condos (condominium) and (online booking site) Airbnb competing with the hotels,” said Mr. Labella. He added that some visitors opt to stay with their relatives instead of getting hotel accommodations due to high rates. “That’s why I am really advising hotel owners not to take advantage of the influx of people, make sure your rates are reasonable,” the mayor said. Mr. Suarez denied that hotels in Cebu are bloating their room rates to take advantage of the Sinulog Festival season, noting that their businesses are guided by market forces. — The Freeman