The ongoing conflict in the Middle East is beginning to cast a shadow over the tourism sector in Central Visayas, with significant impacts on travel demand and hotel operations. According to industry stakeholders, hotel operators in Cebu are anticipating occupancy levels to drop to between 50 percent and 60 percent as bookings weaken and cancellations increase due to uncertainties linked to the regional disturbance.
Weakening Bookings and Industry Response
In a recent statement, Mia Singson-Leon, president of HRRACI, highlighted that resort bookings are already showing signs of softening, while city hotels may face even lower occupancy rates as travel demand slows. To mitigate these effects, at least 22 hotels and resorts in Cebu have introduced promotional packages, including discounted room rates, "staycation" offers, and "workcation" deals aimed at attracting local and regional markets.
Government and Stakeholder Coordination
Gelena Asis-Dimpas, officer-in-charge regional director of the Department of Tourism-Central Visayas (DOT 7), emphasized that the industry is adopting a "measured and calibrated" approach. This strategy focuses on sustaining operations and protecting jobs amidst the slowdown. DOT 7 recently convened stakeholders to align responses as booking cancellations began to affect transport operators, hotels, and tour providers across the region.
Tourism officials have reported a broader decline in visitor spending in Central Visayas, exacerbating the challenges faced by the sector. In Bohol, Joanne Pinat, head of the Tourism Office, noted rising transport costs, such as higher ferry passage rates and land travel fares, which are adding further pressure on demand. OceanJet has announced the cancellation of select Visayas trips as part of its fuel contingency plan, following continued increases in fuel prices.
Rising Travel Costs and Market Shifts
Despite some international routes, including flights by Qatar Airways, continuing operations, cancellations on select routes have contributed to uncertainty in long-haul travel. In response, tourism players are pivoting their marketing efforts toward Asia-Pacific markets, including China, South Korea, Taiwan, Singapore, and Malaysia. They are also sustaining participation in trade events and recalibrating long-haul campaigns to adapt to the changing landscape.
Protecting Livelihoods and Developing New Strategies
Stakeholders have agreed that protecting livelihoods should remain the top priority during this crisis. Industry and government are coordinating with agencies such as the Department of Labor and Employment, Department of Social Welfare and Development, Department of Trade and Industry, and the Technical Education and Skills Development Authority to provide alternative employment and reskilling opportunities for affected workers.
Julie Alegrado-Vergara, co-chair of the Cebu Provincial Tourism Council, proposed initiatives such as promoting longer stays in single destinations to reduce travel costs and developing new tourism products, like a northern Cebu gastronomy circuit. These efforts fall under the Central Visayas Tourism Coordination and Resilience Network, which is aligned with the national government’s Uplift program aimed at supporting livelihoods, industries, and supply chains during the crisis.
Opportunities for Upskilling and Future Growth
Industry groups have pointed out that the current slowdown could also serve as an opportunity to upskill workers. Expanded training under the Filipino Brand of Service Excellence program and increased practical learning for students in tourism-related fields are being implemented to enhance workforce capabilities. This proactive approach aims to build resilience and prepare the sector for future recovery and growth.
