Hotels, resorts appeal for local tax holiday

·1 min read

TO HELP the hospitality sector cope with the losses incurred during Typhoon Odette (Rai), the Hotel, Resort and Restaurant Association of Cebu (HRRAC) is appealing to local government units (LGUs) to grant a tax holiday as it needs extra capitalization to pursue major rehabilitation and repair works.

HRRAC president Alfred Reyes on Monday, January 3, 2022, said 50 percent of HRRAC members alone had already incurred P4 billion worth of damage due to Typhoon Odette. He expects the figure to go up to an estimated P4.5 billion once the remaining members get to submit their post-typhoon damage reports.

“We are asking our LGUs to consider giving us a tax holiday during these challenging times,” he said, referring to the renewal of the mayor’s permit and payment of real estate property tax that tourism establishments fulfill every January.

HRRAC has already drafted a letter to the local chief executives of Cebu.

Reyes reiterated that the hospitality sector was already reeling from the blow of the Covid-19 pandemic when Typhoon Odette’s wrath added injury to the already bruised industry.

“Then there’s another O—the Omicron variant that is posing a threat to tourism,” he said.

The month of December is supposed to be a banner month for the hospitality sector.

“Occupancy was going up until Typhoon Odette happened. Now business is in bad shape,” Reyes said.

Three big resorts in Mactan—Shangri-La’s Mactan Resort and Spa, Dusit Thani Mactan Cebu and Crimson Resort Hotel and Spa—have temporarily stopped accepting guests due to major rehabilitation.

But Reyes said they aim to gradually open their doors in time for the Holy Week or earlier depending on the progress of the rehabilitation.

HRRAC has 75 members.

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