Hotel owners oppose proposed legislated daily wage hike

Hotel owners oppose proposed legislated daily wage hike
April 22, 2024

The Philippine Hotel Owners Association (PHOA), with 60 member companies that own 206 operating hotels across the country, has expressed its opposition to the proposed legislated daily wage hike ranging from P150 to 350 currently under deliberation at The House of Representatives.

Representing a substantial sector of the hospitality industry, the association has highlighted concerns about the potential adverse effects of this wage increase on the tourism and hotel sector in the Philippines.

“The industry is still grappling with low tourist arrivals, decreased room occupancy rates, and subdued revenue generation compared to pre-pandemic levels,” Arthur Lopez, PHOA president declared.

In his letter addressed to House Speaker Martin Romualdez, PHOA President Arthur Lopez acknowledged the significance of enhancing workers’ welfare. However, he underscored the fragile condition of the industry in the wake of the Covid-19 pandemic.

“Tourism numbers and revenue figures are struggling to recover,” Lopez revealed. He added that the timing and potential repercussions of a blanket wage increase will have a negative impact on the hotel industry.

“What is needed is a strategic and sustainable approach to economic recovery, “ said Lopez. He urged policymakers to consider the unique challenges faced by the tourism and hotel sector in the current climate, stating that the wage adjustment decisions should be entrusted to the regional tripartite wages and productivity boards.

Lopez also added that there is a need for more comprehensive initiatives encompassing education, training, and business environment improvements to foster long-term growth and job creation.

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