Proposed rental fees of Baguio Convention Center bared
City Tourism Officer Aloysius Mapalo presented to the city council the revision of the proposed operations manual for the use of the Baguio Convention Center which includes the suggested rental fees of its halls, rooms, and other amenities.
The rental fee of the Full Hall which has a maximum capacity of 2,000 shall be P80,000.00 for a ten-hour use per day; P45,000.00 for a five-hour use per day; and P5,000.00 per hour for extra hour use, rehearsal, and set up.
The rental fee of the Ground Hall which has a maximum capacity of 800 shall be P60,000.00 for a ten-hour use per day; P35,000.00 for a five-hour use per day; and P5,000.00 per extra hour.
The Executive Lounge (25 as the maximum capacity), Executive Boardroom (30 as the maximum capacity), Lobby Receiving Room (50 as the maximum capacity), and Basement Function Room (70 as the maximum capacity) shall have a rental fee of P6,000.00 for a ten-hour per day; P3,000.00 for a five-hour use per day; and P400.00 per extra hour.
The rental fee of the whole basement which can accommodate up to 1,200 individuals shall be P40,000.00 for a ten-hour use per day; P22,000.00 for a five-hour use per day; and P5,000 per extra hour.
Extra charges shall be billed for add-ons such as the use of multimedia projectors and LED video walls, air conditioning, and stationery kits, among others.
Non-government organizations, government agencies (regional and national), and other local government units shall be given a 15% discount on the venue fee for their fund-raising activities supporting beneficiaries with social or environmental impact and/or for social advocacy forums or religious activities which shall not charge any entrance or registration fees to the participants.
City government events that are commercial in nature shall also be charged with a 15% discount on the venue fee. The organizing or lead office of the event must include in their annual budget the item for venue rentals.
All official events or activities of the city government, except those that are commercial in nature, held at the convention center shall be charged with a 50% discount on all fees as long as they are pre-calendared and without prejudice to prior booking commitments to any entity.
The market study presented by Mapalo showed that the proposed rental cost of the Baguio Convention Center is comparatively lower than the rental cost of the Vigan Convention Center which is also an LGU-owned facility.
The proposed operations manual is a proposed amendment to Ordinance Numbered 95, Series of 1995. The ordinance dictates the rental fees of the city-owned convention center.
Under the ordinance, cultural shows, concerts, and banquets held at the convention center shall be charged at P9,000.00 for a ten-hour use while conventions/meetings shall be charged at P6,500.00 for a ten-hour use.
According to Mapalo, the old rental rates are so low that the generated revenue from the operations of the facility can no longer cover its upkeep and operational costs.
In 2020, the city gained only P337,000.00 from two paid events using the suggested rates prior to the declaration of the community quarantine due to the COVID-19 pandemic. There were 49 events that could have amounted to P2,262,420.00, but they were not charged since they were sponsored by the city government.
For this year, the current collection is only P85,000.00 which was gained from two events. The number of events that were not charged is now at 147 which could have translated to financial gain worth P6,316,000.00
From January to May of this year, the current total amount of operational costs is already P1,569,636 which is 18 times higher than the actual collection.
Last year, the city government announced that the convention center will be turned into an economic enterprise once its redevelopment is finally realized.
Mapalo said, based on the financial projections he prepared, an annual net income of 2 million can be gained from the operations of the convention center during a post-pandemic period.
The proposed operational manual has been referred to the Committee on Ethics, Governmental Affairs, and Personal for further discussion and possible consideration of the observations and suggestions raised by the city council members. –Jordan G. Habbiling w/ reports from City Tourism Officer Aloysius Mapalo