Club Intramuros Golf Course, the 23-hectare, par 66 golf course in Manila run by the Philippine Tourism Authority, is probably the most prized possession of the tourism body. The privatization of its operation, along with that of Kan-irag Golf Course in barangay Busay, Cebu City, now appears imminent to shore up PTA’s finances.

Tourism Secretary Joseph Ace Durano was explicit in his statement to Malacañang reporters the other day when he announced the plan to privatize the operation of Club Intramuros to assist the national government in financing its swelling budget deficit.

Club Intramuros has been a losing proposition, receiving an annual subsidy of P40 million from the PTA. Durano earlier complained that of the P1.1-billion budget of the PTA, about P700 million were spent as subsidies to Club Intramuros and other assets. Only P300 million went for tourism infrastructure.

The tourism chief estimates that the PTA could generate revenues of at least P2 billion from privatization of the golf course.

The privatization of Club Intramuros’ operation, he says, will be similar to the arrangement forged with Ayala-led Manila Water Co. Inc. in the development of the Boracay water system. A private company will likely handle the management and operation of Club Intramuros, with PTA sharing in the revenues of the golf club operations over a specified contract period.

“The development and operation of the Intramuros golf course will be turned over the private sector for a number of years, depending on the agreement,” a Tourism official confirmed.

Beach resorts, hotels

Two other golf course assets of the PTA may follow Club Instramuros’ example. These are the Kan-irag Golf Course in barangay Busay, Cebu City and Zamboanga Golf Course, an 18-hole, par 72 championship course, near the Zamboanga City international airport.

“We are now resolving legal issues to sell these properties. When we privatized the Boracay water system which was an asset of PTA, that generated for us close to P1 billion in investment,” Durano said.

Other assets up for sale are the popular Argao Beach Club in Cebu, Balicasag Hotel in Bohol, and Leyte Park Hotel and McArthur Park in Leyte.

Sulo Hotel addendum

The office of Ambassador Felimon “Ka Imon” Cuevas called up to clarify that the realtor himself, and not his brother, former justice secretary Serafin Cuevas, who led the negotiations to acquire Sulo Hotel from owner Leandro “Biboy” Enriquez.

A source also clarified that the Cuevas Group of Companies bought the three-star hotel in Quezon City for P435 million, slightly lower than P450 million as reported in this column last week. He added that 70 percent of the hotel employees, who would be made to retire effective by the end of this month, had received generous separation benefits.

Sulo Hotel employees received the notice of the impending management takeover early this month and were told of the grim news that the new owners planned to retain only 30 percent of the current staff.

Biboy, who inherited Sulo Hotel from parents Modesto and Trinidad Diaz Enriquez, had long advertised the sale of the hotel after piling up a debt of P195 million to Philippine Trust Co.