Fellow Stockholders,
We began our fiscal year with hope for recovery from the tourism downturn that cloaked the region after the 9/11 tragedy. Without wanting of aspiration for higher goals, we decided on modest targets.
Here, in this report, we sketch in firm strokes the challenges that faced us in the past year and how management responded to maintain stable growth for our company, which is our responsibility to our shareholders.
We are glad to report that, despite the difficult operating conditions that marked 2002, our company experienced encouraging results in our financial performance, particularly in our hotel operations.
It is worthy to note that we made inroads in the organizational streamlining and systems upgrading which we started two years ago. Significant here are the institutionalization of the Salute Loyalty and the Indulgence Plus programs, which were designed to encourage bulk buying and repeat business for our rooms, and the setting up of the Opera platform, an integrated software system that helps us efficiently manage our inventory and facilitate productivity.
A result of these developments is captured in the company’s consolidated income statement. Despite the industry’s gloomy conditions, you will note that 22% and an increase in gross operating profit by 21% from last year’s. occupancy rate for this year was an encouraging 58%; a 7% increase from our occupancy rate of the year before.
These positive numbers we attribute very significantly to an aggressive and targeted marketing drive in strategic markets in the Asian region, the expansion of our marketing network of regional travel agents and a constant effort to improve our hotel amenities and to enhance our service. Management continues to look at our company as a masterpiece in progress. Thus, our continuing endeavor towards higher levels of quality at par with the world’s best.
Externally, we made sure that Waterfront Philippines maintained its commitment as a corporate citizen in the communities where our hotels are located. Our advocacies continued to revolve around children and youth welfare and development. We are also continuously improving our relations with the local governments.
In the year ahead, we intend to take aggressive strides to paint a dynamic picture of growth for or company. As a matter of fact, we continue to scout for new hotel properties that will facilitate our expansion in new markets and, at the same time, expedite our company’s growth. This year, we took a majority interest in a Manila-based property that offers the same standard of service.
We remain determined to follow the strategic plan we have set to remain resilient in these turbulent times. Like a painter with his vision of reality, we see a rosier future for the tourism industry and for Waterfront Philippines, Inc.
This report, therefore, is a celebration of our business partners, our peers at work and you, our shareholders, for your trust and confidence in your company’s management. Thank you. Let us, as a collective, paint the future that is ours.
RENATO MAGADIA
CHAIRMAN OF THE BOARD, OPERATIONS
PATRICK C. GREGORIO
PRESIDENT
REXLON T. GATCHALIANN
EVP-HOTEL