Listed Waterfront Philippines Inc. dived into net loss during the second quarter of the year, after the tension in Southeast Asia caused by territorial disputes, among others, affected the country’s tourism industry.
In its financial statement posted in the Philippine Stock Exchange website, Waterfront disclosed that it posted a net loss of P1.9 million during the April to June 2013 period, compared to the same period in 2012 when it registered a net income of P2.3 million.
“Hong Kong residents’ lack of resolution and enduring negative sentiments continue to affect arrivals from the region and China. Increasing tension in Southeast Asia caused by territorial disputes and other diplomatic differences, has only added to the downtrend of tourist interest in the Philippines,” Waterfront said in its disclosure to the exchange.
“We also experienced a secondary dip in bookings from Europe, with citizens from countries in crisis opting to vacation locally,” it added.
Meanwhile, Waterfront’s income before tax during the second quarter of the year grew to P6.8 million from the P1.5 million it registered in the same period in 2012.
Revenues of the hotel and casino operator for the period was lower at P456.9 million versus the P473.8 million it recorded in the same period last year.
However, the occupancy percentage of the hotel businesses of the firm grew by 5 percent as compared to second quarter last year, while the average room rate expanded by 8.69 percent from the same period last year, mainly due to room promotions offered by the company.
“Since we cannot depend on erratic global economic and political factors, we are creating what I would call “internal catalysts for growth”—self-initiated stimuli that spark profitability in our enterprise combined with innovations that enable us to reach our corporate goals,” Waterfront further said.
“These monumental improvements will help us continue to harness opportunities we encounter; and by stabilizing and enhancing the Waterfront brand, we are then assured of financial strength and dominance in the coming years,” it added.
Earlier this year, Waterfront said that it spent P500 million for the redevelopment of its Manila-based property, the Manila Pavilion Hotel, to magnify its stance on the competition among Philippine hotel industry players.
Waterfront specified that it just completed the secondary phase of its renovation program covering 223 upper floor rooms and suites of Manila Pavilion, adding that the renovation cost of P 500 million was financed from a combination of internally-generated cash and external sources.