PTA to sell Argao resort, Kan-irag golf course
By Cris Evert Lato
Cebu Daily News
First Posted 11:38:00 07/18/2008
The tourism department will privatize or sell two tourism facilities in Cebu, which are among eight tourism facilities and idle 40 real estate properties under the Philippine Tourism Authority (PTA).
The Cebu tourism facilities are the Argao Beach Club and the Kan-irag Golf Course in barangay Busay, Cebu City. A PTA property in Moalboal town is also being put for sale.
The properties being put on sale include Boracay Water System, Zamboanga Golf Course, Club Intramuros in Manila, Balicasag Hotel in Bohol, and Leyte Park Hotel and McArthur Park in Leyte.
“These properties are owned by the national government. After Martial Law, properties which are considered to have tourism values were given to the Department of Tourism (DOT) through PTA,” Tourism Secretary Joseph Ace Durano told reporters.
Durano was in Cebu yesterday to award the certificate of entitlement to 20 scholars of the Banilad Center for Professional Development under the Turismo-Mismo program of the DOT.
Durano said operating and managing these properties is not the primary mandate of the PTA.
“The policy really is to privatize (ownership of these facilities and properties) through private operations if not sell the property so that PTA can carry out its primary mandate of building infrastructure,” he said.
“PTA has no capability of managing hotels or resorts because what we have are accountants and engineers,” said Durano, who sits as PTA board chairman.
“The policy really is to privatize (ownership of these facilities and properties) through private operations if not sell the property so that PTA can carry out its primary mandate of building infrastructure,” he said.
Durano said that the PTA is giving subsidy to these facilities.
Club Intramuros has a yearly P40 million subsidy from the PTA.
He said of the P1.1 billion annual budget of the PTA, 70 percent or P700 million is given to subsidies for these properties while only P300 million of the budget goes to building infrastructure.
Other properties however such as the Balincasag Hotel is not given subsidy by the PTA since its earnings are enough to support operations but it does not have enough money for capital outlay or for improving and building infrastructure.
Durano said joint ventures are viable ways to “dispose” these properties.
Under this arrangement, PTA will still be the owner of the property but another entity will operate and manage them.
He reported that at least three hotel and resort operators are interested to operate Balicasag Hotel while the Metro Gaisano Group is interested to rent Argao Beach Club.
He said in June, they invited Ayala-led Maynila Water Corp. to operate the Boracay Water System.
“So every year, we have no loss. The subsidy we give will now be spent on infrastructure projects. Since it’s privatized, they can absorb the cost of operations and on top of that, they’ll just pay us (PTA) royalty (as owners of the property).”
“Even if it’s not lucrative at least we’re not spending money anymore,” Durano added.
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