A group of restaurant owners of Davao City revealed on Friday that the number of restaurants in the city has dwindled.
Benjie Lizada, president of the Restaurant Owners Association of Davao City, Inc. (RestoDC) and restaurant sector representative to the Tourism Council of Davao City, revealed that from the total 889 restaurants from the period of January-December 2019, only 658 restaurants are still in business in Davao City as of October 2024.
Lizada’s family operates Harana, Sarung Banggi, Taps and new events place, Tio Noning’s while her sister operates Bistro Rosario in Davao City.
He said many restaurants have opened in Davao City but several have also folded up after months of operation.
“But if you check them sometimes they survive only for how many months magsarado naman sila,” Lizada said during the Business Matters media forum at Hukad, Ayala Malls Abreeza.
Aside from lack of customers, Lizada cited the proliferation of Airbnb and online platform among the reasons that several restaurants in Davao City opted to close or cease operations.
During the Covid-19 pandemic three years ago, RestoDC members grappled with the mushrooming of unregistered food service providers, mostly using social media as a marketing platform, who have taken the opportunity presented by the lockdown.
“The problem with food providers is they take 30% of our sales. Most people think, mababa lang pero malaki yung 30%,” Lizada said.
Lizada said RestoDC has roughly 25 active members, mostly homegrown owned restaurants with around 75 brands.
“Mostly ang owner has two or more brands like kami – Harana, Sarung Banggi and Taps,” he said.
Another concern of restaurant sector, according to Lizada, is the proliferation of the fake Person With Disability (PWD) identification cards as it will also affect the operations of the restaurants.
Senator Win Gatchalian recently urged for the investigation on tax leakages caused by the proliferation and unscrupulous use of fake PWD identification cards so holders can avail of a 20% PWD discount and value added tax (VAT) exemption.
Restaurant owners in Manila have also raised concerns over losses sustained due to the use of fake PWD IDs. Restaurant owners have claimed that over the recent years, there has been a significant increase in sales made to PWDs from only 5% to 30%.
“We are also concerned with fake PWD cards. There is a proliferation of fake PWD cards. Malaki din ang tama sa amin nito that is why we are coordinating with RestoPH in Manila and recently I asked for the consensus of our members kung sasali kami sa Davao Chamber of Commerce and Industry, Inc. para nationwide ang approach dito sa PWD fake cards,” he said.
Lizada clarified that the restaurant sector accepts valid PWD cards only.
“If its (PWD card) valid, walang problema,” he said.
Lizada also mentioned that restaurants were also affected when former President Rodrigo Duterte stepped down as conferences that were usually held in Davao City during his presidency were also gone.
Based on the data shared by Lizada, generally from a total of 3,198 registered tourism-related establishments and businesses in 2019, there are a total of 2,201 establishments or down by 997 as of Oct. 2024: from 889 restaurants, they’re down to 658 (minus 231); tourism related establishments, 1,196; from a total of 306 accommodations were down to 219 plus 176 Airbnb; 164 travel and tours in 2019, there are 90 still operating; for ticketing office, there were 192 but in Oct. 2024, 80 are still operating; spa, 156 but in Oct. 2024, 94; resorts, 54 but 29 still operating; tourist transport operator (sea) 100 but in Oct. 2024, only 26 remains; tourist transport operator (land) 20 but in Oct. 2024 there are five only; there were 25 tour guides in 2019 compared to this year’s 23; professional congress organizer, four but in Oct. 2024, there were only three; and souvenir/gift shops, 94.
“But I am still hopeful kasi gumagawa naman ang city government of Davao ng mga steps to get back the tourists kasi ang number one problem nawalan tayo ng tourists. Na double whammy pa tayo ng pagpasok ng Covid,” he said.
Lizada said their sector slowly gaining ground for the first time of this year during the Duaw Dabaw festival in June this year.
He also said that the city’s hosting of MICE (meetings incentives conferences exhibitions) last year also helped the city’s restaurant sector.
Lizada said MICE committee had a meeting two months ago to find ways to get tourists to come to Davao City.
He also said that MICECon is looking at a facility similar to the World Trade Center.
“Because people do not come to Davao for tourism like Panglao and Siargao, they come here for conferences and side trip na lang yung mga golfs. Even then the city last year accepted the Technical Working Group output of the Tourism Master Plan,” Lizada said.
Lizada was referring to the Tourism Master Plan of Davao City crafted by Arch. Felino Palafox, Jr. of the Palafox Associates, which is an intensive situational analyses consisting of multi-sectoral appraisals of the City’s tourism profile alongside in-depth workshops between department heads, local stakeholders, and barangay representatives, the plan includes a strategic tourism framework, new tourism circuits, priority development areas, and a new brand for Davao City’s tourism and marketing strategies.
