Case Analysis 2 South Palms Resort Panglao
Case Analysis 2 South Palms Resort Panglao
Case Analysis 2 South Palms Resort Panglao
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Tourism has become a global phenomenon. Its massive movement of people reaches
virtually every corner of the globe. It has spread itself to the most remote areas of the world and
Bohol is one such example. With its friendly people, historic buildings, cultural events,
high-quality handicrafts, and beautiful natural environment, Bohol has many features that make
it conducive to tourism development. Although Bohol’s cultural attractions and inland areas
attract visitors, the island’s tourism industry primarily focuses on the coast. The island’s main
attractions are its white sand beaches, small offshore islands, diverse coral reefs, and rich marine
life, including large numbers of whales and dolphins. Panglao is a small island in the central part
of the Philippines and is well-known for its world-class beaches and coral reefs. These attract
millions of tourists each year thus providing business opportunities and employment, a
Panglao Island is around 30 minutes away from Tagbilaran City Airport and Seaport. At
the southern part of Panglao sits the South Palms Resort Panglao (SPRP), owned and managed
by the Uy family. The Uy family is considered one of the prominent business leaders in retail,
food, real estate, milling, manufacturing, agri/aquaculture, and trading in Bohol. They own and
manage the Alturas Group of Companies based in Tagbilaran City, Bohol which makes SPRP
SPRP was originally Bohol Beach Club (BBC), the first and most established resort on
Panglao Island. In March 2013, an opportunity presented itself to the Uy family thus making
them acquire 75% of BBC. SPRP was the Uy family’s first foray into tourism. When the Uy
family bought the 45 hectares from BBC, only 9.3 hectares were initially developed for SPRP
giving the family an option for horizontal development. Upon acquisition, the family gave Hope
Uy, 26, the responsibility of overseeing the resort while her 23-year-old cousin, Lolita Uy, was
put in charge of food and beverage operations as well as research and development.
Even with solid expertise in the retail, food, agri/aquaculture, and trading industries, the
Uys found out that the hospitality industry was a definitely unique endeavor and found it
challenging to transition into hospitality let alone transform and brand an existing resort into an
entirely new one. Even though they had to learn everything from scratch they were able to find
help from seasoned management professionals like Fe Ginete – the Sales and Marketing
Manager of SPRP.
From a strategic perspective of Ginete, SPRP envisions itself to be the choice destination
in Central Visayas for family getaways, business, and pleasure as well. When the Uy family
acquired SPRP, it aimed to become the industry leader in the next five years by providing an
affordable and quality beach resort where visitors are given good facilities, amazing service, and
Bohol, at the time of the case, is in the expansion stage of the destination life cycle,
making SPRP's entry into the scene advantageous. Add to this, Bohol is looking at decongesting
traffic in the only existing airport in Tagbilaran City by partnering with a Japanese company to
exciting news for Ginete and SPRP as this project of the government would mean that more
tourists can easily access Panglao and the resorts on the island. However, for Ginete, the feeling
of excitement was fleeting as she knew how much still had to be done to make SPRP the premier
resort in Panglao in time for the 2018 opening of the Panglao International Airport.
This case analysis of the South Palms Resort Panglao generally aims to present the role
of understanding innovation and developing creativity where firms have plans of diversifying
and entering into a venture that is considered to be a first foray in a different industry relative to
the existing ventures it has. It will also determine how SPRP manages to become the top resort in
Panglao by the time the Panglao International Airport opens from the viewpoint of SPRP’s Sales
and Marketing Manager, Fe Ginete. Specifically, it aims to answer the following questions:
1. What is SPRP’s value proposition to its customers and the reason why guests would
prefer SPRP over other resorts in Panglao, Bohol? What is the competitive advantage of SPRP?
2. Which specific marketing channels must be prioritized in the budget and why?
4. Who would be identified as the target market of SPRP? What will be done to attract a
5. What is the suggested SPRP’s long-term vision? Based on the recent developments
on the island of Panglao, how should the resort market itself in the succeeding years?
SITUATION ANALYSIS
Provinces of Central Visayas, which includes Bohol, are exposed to earthquakes, flash
floods, cyclones, landslides, and storm surges. Bohol is more exposed to geological hazards like
earthquakes causing intense ground shaking, liquefaction, landslides, and tsunamis. This is due
to the presence of the East Bohol fault and another fault located in the Bohol Sea going to the
November 2013, typhoon Haiyan (locally known as Yolanda), one of the strongest typhoons ever
recorded worldwide, hit the Philippines. In spite of the typhoon’s extreme wind speeds, most of
the destruction was caused by the estimated six-meter storm surge, which hit the eastern Visayas
and extended one kilometer inland. One month prior to typhoon Haiyan, on October 15, 2013,
Bohol experienced the deadliest earthquake in the Philippines in 23 years. The earthquake
affected the entire Central Visayas region. It lasted 34 seconds and had a magnitude of 7.2. These
disasters killed people and left millions homeless. Houses were damaged or destroyed along with
Following the earthquake in 2013, the Provincial Government of Bohol released the
Provincial Disaster Risk Reduction Management Plan 2014 – 2016. This strategy outlines
disaster risk reduction for the region, which focuses on strict implementation of existing laws
and ordinances and other related issuances; reducing vulnerability and exposure of communities
to all hazards; enhancing capacities of communities and disaster risk reduction councils to reduce
their own risks and cope with the impact of all hazards; increasing disaster risk consciousness
The Bohol Tourism Recovery Plan was also developed for the tourism industry in
response to the earthquake. A collaborative project of the Department of Tourism, the United
Nations World Tourism Organization (UNWTO), the United States Agency for International
Development (USAID), and PATA, developed strategies to market the province, as well as the
development of new tourism products that will strengthen Bohol’s position as an eco-cultural
destination.
Over the years, Bohol has intensified its progress as a prime eco-cultural tourist
destination in the Philippines (Province of Bohol, 2016). Despite global economic and
environmental challenges, the current flow of domestic and foreign tourists, at the time of this
case, signifies stability and constant economic growth, as well as in the upcoming investments
At the time of the case, the province of Bohol formally unveiled its "Visit Bohol 2015"
campaign, a year-round initiative designed to revive the region's tourism after it was severely
damaged by a massive earthquake. This campaign supports the Department of Tourism's (DOT)
"Visit Philippines 2015" initiative, which aims to attract 10 million foreign visitors and 56
Perennially popular for its Chocolate Hills and tarsier sanctuary, today Bohol has raised
its profile internationally as an inimitable ecotourism destination. With the opening of the new
Bohol International Airport on Panglao Island, the tourism boom is propelled through
Unique from other destinations, Bohol offers a myriad of attractions from landscape to
seascape. Advantageous to Boracay, it boasts more than white sand beaches and is home to one
of the world’s best diving sites. Every year, the Bohol Marine Triangle attracts avid divers with
rich marine biodiversity. In addition to biodiversity, it is blessed with geological, cultural, and
heritage assets.
Untouched natural beauties and ecotourism are Bohol’s competitive advantage that
differentiates it from other destinations. With immense tourism growth and developments over
the years, however, there is the risk of over-tourism as was the case in Boracay. Tourism
accounts for 90% of Bohol’s industry. A critical question on the outlook of Bohol tourism lies in
its ability to maintain and sustain the balance that would maintain the dichotomy of sustainable
tourism and its position as a premier ecotourism destination while being cautious of the
environmental degradation resulting from the rapid tourism growth and increasing tourist influx.
Industry Analysis
Unsurprisingly, Bohol has also caught the attention of investors for hotel and leisure
developments. Unlike other commercialized resort destinations, Panglao exudes an idyllic charm
and authentic hospitality from the local communities appealing to travelers who prefer tranquility
and quietness.
facilities in Bohol, specifically in Panglao Island. The Bohol resort market located in Panglao
Island consists mainly of 4-star or upscale properties with at least 50 keys and an average daily
rate positioning above PhP3,800. As of 2012, there were 83 resorts, 137 pension/lodging houses,
Since infrastructural development facilitates the growth of an industry, the surge in the
number of tourism establishments can be partially ascribed to the improving connectivity within
the region. An example of such efforts is the development of the Panglao International Airport.
Resorts are now becoming easily accessible, though most of the roads leading to the barangays
and to the beaches are still dirt roads. The municipality of Panglao is in the continuous process of
improving road networks that facilitate the ease of travel for tourists.
Opening of new high-profile regional branded hotels is expected to uplift the quality of
upscale accommodation facilities in Panglao and help induce new demand with strong brand
affiliations. The rise in the number of resorts in Panglao created a competitive environment
among resort owners. To keep up with the market and sustain its respective market niche, each
resort tries to anchor its brand on a specific competitive advantage to set it apart from other
resorts.
harmonious business relationship with each other. Business owners in Panglao are guided by a
principle that they should consider each other as allies, and not as threats – a concept otherwise
known as coopetition. This holds especially true when it comes to environmental sustainability
Competitor Analysis
SPRP considers The Bellevue Resort, Bluewater Panglao, and Amorta Resort to be its
closest competitors.
Among all four, Bellevue has the largest carrying capacity and can accommodate very
large groups for large-scale events. It has a 700 sq. meter Pavilion Tent. Their lack of villas is
compensated for having 21 large suites. They have 13 Executive Suites, each with an area
between 56-67 sq. meters, and two Junior Suites with an area of 48 sq. meters. The Bellevue
Suite (of which there are five) has a total area of 100-110 sq. meters; while the premier suite, the
lone Presidential Suite, covers an area of 222 sq. meters. Bellevue’s large infinity pool (with a
diving deck and kiddie pool) and official 5-star rating are its main competitive assets.
In contrast, the smallest and most intimate resort is Bluewater Panglao. SPRP believes
that one of the distinguishing assets of Bluewater Panglao is having an established trade name
among the Japanese, who know the resort’s counterparts in Maribago and Sumilon in Cebu.
Apart from having superb facilities, Bluewater Panglao also differs from its competitors by
having lush and manicured tropical gardens. The trees and greenery keep the area cool while
serving as both the view and backdrop of their villas. However, beach access from guestrooms
and villas is the farthest among all four resorts. The beachfront is only 30 meters long and 30
meters wide. Among the four resorts, it has the lowest TripAdvisor rating – mostly owing to the
lack of a beach, high prices, and some problems with food and service.
Amorita Resort has the highest TripAdvisor rating among all resorts in Bohol despite not
having a beachfront of its own. Instead, Amorita banks on its dramatic clifftop location, and
famous Saffron Restaurant. Guests have the best of both worlds, as its location is close enough
from the lively Alona Beach, but far enough to give guests privacy. Thus, the resort is popular
among couples and families. It has also been lauded for great customer service and its tasteful,
modern rooms.
Internal Analysis
At the southern part of Panglao sits the South Palms Resort Panglao (SPRP), owned and
managed by the Uy family. The Uy family is considered one of the prominent business leaders in
retail, food, real estate, milling, manufacturing, agri/aquaculture, and trading in Bohol. They own
and manage the Alturas Group of Companies based in Tagbilaran City, Bohol which makes SPRP
SPRP was originally Bohol Beach Club (BBC), the first and most established resort on
Panglao Island. SPRP envisions itself to be the choice destination in Central Visayas for family
getaways, business, and pleasure as well. When the Uy family acquired SPRP, it aimed to
become the industry leader in the next five years by providing an affordable and quality beach
resort where visitors are given good facilities, amazing service, and fun, enjoyable activities.
In one of their earlier planning meetings, Hope mentioned that they want to allow their
staff to attend to guests at the fastest time possible and for guests to reach the beach with the least
amount of effort. The amount of space assures guests that they will not find themselves bumping
into one another. Guests will not have to pass through the lobby or use an elevator or stairs,
dressed in swimsuits just to go to the beach because the villas are literally by the beach and they
can simply go out of their room and walk directly to the beach.
The transformation of SPRP happened rapidly. Hope Uy, in charge of overseeing the
resort, thought of the resort’s name overnight. To get inspiration for the resort’s design and
features, the Uy cousins relied on internet research and on their own travel experiences locally
and abroad. The architecture of the resort is loosely inspired by what they say in premier resorts
in the country and abroad. They mimicked different designs and added their personal touch. They
decided that the resort’s structure which includes the villas and rooms should be both modern
and tropical. Thus, they designed the resort to have roofs made of cogon grass.
Apart from the many palm trees dotting its beachfront, SPRP also has a short trail that
goes through a miniature man-made forest of young mahogany trees. The cousins also made sure
that the fixtures in the resort were easily movable just in case they decided to renovate or
repurpose the resort. After nine months of intensive redesigning, SPRP opened its doors on
December 1, 2013.
Among all features and amenities, both staff and visitors are unanimous in saying that the
main allure of SPRP is the 750-meter natural powdery white sand beachfront. Coral gardens are
“just a swim away” and further down are marine sanctuaries “teeming with marine life”.
SPRP offers seven different guest accommodation options, summing up to 90 rooms and
villas. Visitors can choose among the Deluxe Garden View, Deluxe Pool View, Deluxe
Beachfront, and Premium Beachfront rooms. There are also three villa options, namely the
Beach Villa, Family Villa, and Panglao Villa. All rooms highlight true Bohol craftsmanship.
Apart from their guest accommodations, SPRP also hosts weddings, functions, meetings,
banquets, and conferences. The larger Green Palm Facility and the Blue Palm Facility both have
a classroom theater and banquet area. Private parties and events can also be held outdoors at the
beachfront or poolside.
SPRP has all the typical resort amenities. There are two dining facilities – the Oceanica
Seafood Restaurant which is the main dining area and where the all-day buffet is served and the
Coast Pool Bar which is close to the beachfront and where they also serve food and drinks. The
food that they serve tries to cater to all dietary requirements and preferences. They have two
pools – both lagoon-shaped. As with most resorts, SPRP has a business center, massage cabanas,
gym, dive shop, gift shop, tennis court, and a travel and tours desk. The Palm Spa is their in-
house spa which provides guests with various rejuvenating services and treatments either in the
The SPRP staff is also trained to impart genuine Boholano hospitality to guests. They
want to encourage repeated visits by offering exceptional experiences to all who come. Ginete
sees no shortage of attractions and activities for tourists beyond the SPRP premises. SPRP
arranges day tours to the most famous tourist spots and attractions in Bohol such as the
Chocolate Hills, Loboc River Cruise, Tarsier Sanctuary, centuries-old churches, and the historic
Bohol Blood Compact Site. They also arrange diving and snorkeling trips to Balicasag Island,
Ginete believes that SPRP gives quite good value to its customers. In Panglao Island, it is
unrivaled in terms of its beachfront. When considering the whole of Bohol, it placed second to
Anda White Beach Resort. Thus, it tries to capitalize on having one of the best stretches of
powdery white sand beaches in the region. However, SPRP acknowledges that its rooms are
smaller than some of its competitors. To compensate, the Uy family is thinking of utilizing a
portion of the remaining 35.7 hectares of land to build additional rooms villas, and other resort
facilities and amenities. Ginete fears, however, that further development will take too long. As a
marketing professional, she prefers high-impact marketing over costly capital expenditures.
Internal Marketing Analysis. SPRP used to be the BBC and given that BBC was founded
in 1984, it has already a well-established brand and somewhat loyal clientele. Because of this the
“renaming” anchoring on “Panglao” rather than “Bohol” was thought to be a good move on the
part of the SPRP team. Although the destination name Panglao is not as well-known
internationally as Bohol, this is a strategy that the SPRP team thought of disassociating SPRP
from BBC. To a certain extent, name-dropping BBC helps locals, tourists, and travel agents
mentally and geographically place SPRP and associate it with the pre-conceived positive
qualities of BBC. Conversely, they also often say that SPRP has bought three-fourths of BBC to
distinguish SPRP.
The abundance of trees within the resort is a feature that is believed to give a sense of
being away from the hustle and bustle of city life. This is supported by the study of Hallig (2013)
read by Ginete which says that resort guests normally want shade after swimming and dislike
walking distances just to get it. A significant number of palm trees are placed close together and
near the beach for this purpose. Because it is located on the south of Panglao Island where there
is a huge concentration of palm trees the property was named “South Palms Resort Panglao”.
Marketing visuals focus on the sprawling beachfront as well as SPRP amenities with a
tagline “Finally, the way a Bohol beach holiday should be!”. SPRP believed that the island-living
concept embodies what a Bohol beach holiday should be. SPRP offers unparalleled pleasure and
relaxation in a secluded paradise unlike other resorts close to Alona Beach which is the “party
enclave” akin to Boracay and an older mature beach destination in the country. SPRP’s value
proposition lies in the relative peace and quiet that the expansive property can give. The
abundance of space gives guests enough space to enjoy their holiday in private. Furthermore, the
place exudes an island-living ambiance as the development is kept to a minimum with no high-
rise buildings, and hotels keeping to the natural beauty of its surroundings making the property
SPRP, to some extent, anchors its branding and marketing on the latest marketing slogan
“Behold…Bohol”. This slogan is believed to capture the Boholano identity that distinguishes it
from other provinces. It projects the tourist destination as a place that exudes a family-oriented
and wholesome eco-cultural vibe. This strategy is done through package tours that feature usual
tourist attractions like the Chocolate Hills complemented by other sets of attractions and
experiences such as adventure, exploration, rides, treks including on-road, coastal, and
geological tours, food tours, souvenir collecting, and local crafts tours among others. Led by the
Provincial Tourism Council (PTC), industry players exhibit their properties, especially those
inherent elements only found in Bohol tourism are showcased in local and international travel
marts.
SPRP allocated a significant portion of its marketing budget to television as they believe
that the most effective marketing activities for locals are watching television and browsing the
internet. These are mostly to airtime on local networks with the exception of a BBC World
Travel segment. Being featured in the high-impact television show “Kris TV” has seen an
Booking.com have served both as marketing and distribution channels making the internet a key
factor in bringing local and foreign tourists to SPRP. Their public relations initiatives are also
doing well through their concerted efforts prior to the formal opening of the property as well as
A mix of locals and international visitors would visit SPRP, however, Ginete believes that
SPRP cannot yet afford to create a niche. Catering to visitors of all shapes, sizes, and cultural
backgrounds would help SPRP understand not only their markets but also who they are as a
These marketing activities would help SPRP establish its brand recall and image in the
minds of prospective and returning guests. There is still more that can be done though and the
STRATEGY FORMULATION
Strategic Alternatives
With a winning formula of white sandy beachfront, rich marine biodiversity, and an
idyllic atmosphere, SPRP’s future as a leisure destination is brightly lit. However strategic
alternatives are still available to move forward from existing conditions. Here are alternatives
that SPRP can take into consideration, especially for its marketing:
Alternative Evaluation
Alternative 1. Entrepreneurial marketing has a strategy of developing a market niche and
a goal of attaining credibility in the marketplace. This marketing would require SPRP to use its
networks from the varied existing ventures its mother company has been operating. Eco-cultural
tourism is the priority thrust of Bohol and keeping in tune with this thrust would also align with
This alternative would mainly focus on ensuring that SPRP identifies its niche which
could lead to increased profit while maintaining the island-living concept. However, this
alternative would only address SPRP’s credibility concerns in relation to its image and would
Alternative 2. Responsive marketing seeks to develop the product market and create
customer satisfaction. This can be attained through structural tourism developments that would
promote innovative changes to the activity offering of SPRP. Based on the strengths of SPRP this
would be manageable but concerns about functional coordination may cause this strategy to fail.
Although SPRP is operated by a prominent business leader in Bohol, this is their first venture
into the hospitality industry that has a seasonal characteristic, unlike the existing businesses that
manage product life cycles. Coupled with sustainable tourism resource use, this strategy would
require a good mix of entrepreneurship and innovation. The Uy family who owns and manage
SPRP would be able to make use of its strengths and tap into the opportunities with the use of
their business networks. An advantage of this strategy is that at every cycle of the business, a
corresponding marketing concern is addressed. This would require SPRP to organize its
marketing into corporate and divisional levels but with the experienced marketing and sales
which attempts to make a low impact on the environment and local culture while helping to
concept for the development of ecotourism initiatives which is aligned with the provincial goals
This alternative would involve the balancing of social, economic, and environmental
goals that would further the vision and mission of SPRP in the long run. This would also help in
mitigating the negative impacts the threats may bring and expand opportunities and the
Alternative Choice
From among these three alternatives, I would suggest that SPRP go for Alternative 3
using diversified marketing with sustainable tourism resource use as the ultimate conclusion after
ensuring that weaknesses, especially in marketing aspects are addressed. Further, because of the
sustainable tourism approach to resource opportunities, SPRP can allot more budget to focusing
on what is most needed at the present time while not disregarding whatever structural
developments it foresees.
STRATEGIC ALTERNATIVE IMPLEMENTATION
Action Items
SPRP is already seen as a resort that provides a product with more value than the
competitors. There is however a need to develop new channels to reach target customers.
Although there is no niche identified for SPRP, because of the confusion with BBC, there is a
need to look for distribution channels beyond the normal word of mouth to develop the
This is now the age of information technology, where a click of a button will give you the
information you need anytime. SPRP can take advantage of this. Promotions can be tailored to
entice customers but because there is no identified niche, SPRP can look into using influencers,
particularly vloggers to promote the resort and attract locals’ attention. With the interesting
content and the boundless influencers, it can be an opportunity to attract new markets while
With vloggers, the creation of digital content is made easier. It is important though that
SPRP has its own digital content so it can build its own personal relationship with its intended
target markets. With constant updating of the content, both website and social media sites, it
helps to build client trust and enhances domain authority. This would also be an avenue for SPRP
to feature special events that are part of its marketing and promotions.
management. The connection with business endeavors that can assist and help in the operations
of SPRP is already embedded in the family local conglomerate business and SPRP can take
advantage by looking into offering activities that are related to these existing ventures like
exposing farm activities in the agri/aquaculture business the Uy family already has. This would
free up the budget since there is no need for structural development within the SPRP but would
offer something different from the usual tourism activities in the province. This is also a less
expensive but more successful means of marketing the resort because the existing businesses of
the Uy family have the resources and can showcase their products as well.
Action Plan
The resort industry is highly competitive, and to stay ahead, SPRP must constantly
innovate, provide excellent customer service, and have a thorough understanding of its target
market. Long-term success can be attained by giving customers a distinctive and memorable
experience. To achieve these here are action plans that SPRP can implement:
Outline the goals that SPRP wants to achieve especially in the marketing aspect and in
Identify the resort’s target audience (keep in mind that the target market is diverse and
Create a content strategy that highlights the resort’s first-rate amenities, benefits, and
distinctive experiences (this could involve producing appealing videos, top-notch photos, and
TripAdvisor or Google. This can be done through guest engagement while they are in the resort
Create an advertising event for the resort where guests and those interested can
compete on who can better portray SPRP’s brand to potential customers in order to gain more
exposure
Inventory existing resort amenities, facilities, and activities to have an idea of what
Work with influencers and content creators who align with the resort’s target audience
and values. The resort’s online reputation can be greatly enhanced by this, drawing in more
Consistent content creation to maintain the resort’s online presence dynamic and
interesting, keep a consistent timetable for content creation. The resort’s offerings and updates
will be displayed through the publication of images, videos, and written content
Improve the resort’s overall aesthetics to have a sustainable competitive edge and to
Slowly add sub-business in the resort (this may be from the existing business of the
family or a new venture) in order to help them stand their own growth against new players and
REFERENCES
Cabal, K. (2014, November 4). Visit Bohol 2015 tourism campaign launched. Rappler. Retrieved
tourism-campaign-air-asia/
Province of Bohol (2016). Provincial Development and Physical Framework Plan 2016-2018.
Provincial Planning and Development Office, Bohol. Retrieved August 24, 2023, from
https://ppdo.bohol.gov.ph/ppdofiles/PDPFP-Bohol_2016-2028.pdf