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SMEs in accommodation and food sectors face competition

Small and medium enterprises engaged in hotel, bed and breakfast, restaurant and food service sectors have benefited largely from the continuous growth of Philippine tourism with the rising number of visitors that hit 7.1 million in 2018, up by 7.65 percent from the previous year.  

The sector, however, is facing new challenges from disruptive and technology-based players such as on-demand lodging, short-term rentals and online booking agencies that put local players at risk of competing for tourist dollars.

In a survey conducted by SGS Philippines, it was revealed that three main issues posed a threat to the continued growth of the tourism sector, namely: the entry of new players in the market; retention of skilled employees; and the lack of up-to-date marketing competency.

SMEs in accommodation and food sectors face competition
Michelle Tapia, head of strategy, innovation and transformation at Globe myBusiness talks before SMEs and other stakeholders who attended the Breakthroughs: Tourism conference.
Cognizant of these problems that hounded the tourism stakeholders, Globe myBusiness is empowering the industry, particularly SMEs, through digitalization. This is to help them sharpen their competitive edge against the new entrants, help them understand the causes of attrition so that they can improve their retention rate and enhance their marketing capabilities to be able to expand their market share and boost their businesses.

As a major provider of basic telecommunications services to the business community, Globe myBusiness positions itself as a partner in the success of SMEs in the tourism industry by providing them with the right technology and digital solutions.

“We are committed to empower small and medium businesses to thrive despite the challenges they encounter day-to-day by helping them use innovative technologies as a business advantage,” said Michelle Tapia, head of strategy, innovation and transformation at Globe myBusiness.

“For the tourism industry, we’re not only helping them understand digital disruption but enabling them to take advantage of it in creating the future of travel and tourism through talks on the changes and trends in their business environment and a visioning workshop to create the future of the tourism industry,” she said.

Globe myBusiness conducted the Breakthroughs: Tourism conference which was attended by various tourism stakeholders led by Tourism Secretary Bernadette Romulo-Puyat. 

Puyat said that in 2018, tourism receipts amounted to $7.8 billion, which was 14.7-percent higher than the previous year, with the industry contributing 12.2 percent to the gross domestic product.

Employment in tourism was estimated at 5.3 million, or 13.06 percent of the country’s total employment picture.

Puyat said all these developments happened despite losing about 500,000 tourists when Boracay, one of the country’s top tourist island destinations, was closed for several months due to rehabilitation.

Topics: Small and medium enterprises , SMEs , accommodation , food sectors
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