A star rating plan for hotels in the Philippines, similar to the ones done for free by travel websites like Expedia, has come under attack by the tourism sector and lawmakers in Manila.
The Philippines Depart of Tourism (DOT) is implementing the plan, funded by Canadian taxpayers to the tune of $7 million dollars.
Cebu third district Rep. Gwendolyn Garcia has filed a resolution urging the Philippine Congress to investigate the implementation of the DOT prescribed star grading system for accommodation establishments.
According to the lawmaker, there are claims that the star rating system implemented by the DOT is only a “waste of time, efforts and government funds.” She said that “several accommodation establishments assail not only the veracity of the results of the star ratings issued by DOT, but also the propriety, necessity and wisdom of the star rating system.”
In a resolution, Garcia said the DOT received a $7.1-million technical assistance grant from the Government of Canada through the Canadian International Development Agency (CIDA) to fund the skills training programs for the private sector, local government units (LGUs), civil society, and DOT agencies, and to implement the new system of accreditation and the development of standards for service quality.
Garcia added that the inquiry is necessary to determine whether the DOT should pursue the star rating system and recommend measures to improve the system if deemed necessary to implement it.
Last September, Cebu-based Plantation Bay Holdings Corp., owner of the Plantation Bay Resort and Spa in Mactan Island, filed a case before the Office of Ombudsman against DOT’s foreign consultants for the “alleged arbitrary and capricious implementation of an unnecessary star grading system for Philippine tourism enterprises.”
“We welcome Rep. Gwen Garcia’s call for an investigation into the DOT’s latest fiasco. The Government of Canada appropriated $7 million to help our tourism industry. Instead of spending it on something useful, our DOT embarked on a grandiose and frankly, stupid scheme to assign star ratings to hotels. This is something almost no other national government in the world does, not even Canada,” said Manny Gonzalez, founder and chief executive officer of Plantation Bay, in a statement.
“Now, we find out that no one in the DOT will admit to knowing how the $7 million was spent. How can that possibly be?...Based on what we have learned, over $5 million of that money was paid, or is due to be paid, to a mystery Australian company. No one knows who owns it,” Gonzales said, according to local media.
“That explains why the DOT is so eager to grade hotels, at a budgeted cost of $10,000 per hotel per night of inspection,” he added.
In its press release last September, the resort argued that the agency wasted millions of dollars for this rating system when entities like Tripadvisor, Expedia, Orbitz, Agoda and other travel sites give ratings of hotels for free. It noted that tourists “believe in their ratings because they represent the collective wisdom of real customers with real opinions on what is important in a hotel.”
Network of Independent Travel and Allied Services Philippines Inc., (Nitas) president Robert Joseph, likewise, welcomed Rep. Garcia’s action on the matter.
“We are happy that we earned support from a lawmaker to shed light on this issue,” said Joseph in a phone interview yesterday.
Joseph said hoteliers and resort owners approached him to complain about DOT’s rating system.
Joseph challenged the agency to be transparent in how the ratings system and criteria have been determined; how the $7.1 million was spent and how they are going to sustain it; and determine the people behind the fiasco. He also questioned how the agency obtained the funding from Canada when it has no government rating system for its own hotels.
For Joseph, who is also a hotelier, the ratings and recommendations should be left to consumers.
“What we want here is for the government to be on constant dialogue with the industry players and that they should be involved when coming up with guidelines. There should be a private-public partnership,” he said.