07 August 2010

SBMA awards beach property

The Subic Bay Metropolitan Authority (SBMA) has awarded the management of a 5,600-square meter prime beach area here to a Filipino firm, Brighterday Subic Ltd., Inc. (BSLI).

SBMA deputy administrator for Business Raul F. Marcelo said this will boost the potentials of the “All Hands Beach Resort” as a world-class beach facility and turn it into a revenue-generating asset.

All Hands is one of SBMA’s tourism facilities formerly operated by the Freeport Service Corporation (FSC) under a facilities management agreement that was pre-terminated by both parties.

The pre-termination was prompted by the cesssation of the FSC’s business operations due to “irreversible financial losses,” said Marcelo.

The financial problems of FSC affected its management of All Hands, which failed to meet the standards of the Department of Tourism (DOT) last year, he said.

“Now that the resort has reverted to its owner, which is SBMA, it is incumbent upon the agency to ensure that the development and management of All Hands (beach resort) would meet DOT standards,” Marcelo explained.

Records show that while FSC operated several tourism facilities in the Freeport under a management contract with SBMA, it was never able to fully remit SBMA’s share of the earnings from these facilities, All Hands included.

Moreover, these FSC-operated tourism facilities slowly deteriorated due to FSC’s inability to institute the necessary maintenance programs.

The SBMA Board of Directors approved on June 18 this year the proposal of BSLI to develop and maintain the whole beach area and the facilities of All Hands in accordance with world-class standards.

According to Marcelo, BSLI has pledged to invest P10-million within five years to immediately uplift the status of the beach resort.

Under the management agreement, the revenues from entrance fees will go to SBMA while rental earnings from cottages, pavilions, nipa huts and other facilities will go to BSLI.

This means an estimated P 12 million in annual revenues for SBMA.

SBMA took over the beach resort Tuesday (August 3), deploying cashiers to man the entrance and other personnel to temporarily run the facility preparatory to the turn over to the new operator.

BSLI’s development plan on All Hands include the construction of drainage facilities, a sewerage system, 30 concrete Mediterranean-type beach cabanas, retaining walls for sand protection; conversion of existing pavilions into function halls, and the rehabilitation of the present 10 overnight cottages into 20 world-class Mediterranean-inspired cottages.

Existing facilities to be overhauled include plumbing, showers, restrooms and dressing rooms. Safety facilities, life guard towers, light facilities are set for improvement. Landscaping works for the entire beach facility will also be undertaken. (SBMA Corporate Communications)

Photo: All-hands beach property