Investors are positive about the medium- and long-term growth outlook of the Philippine hospitality sector, a new report showed.
In the 2024 Philippine Hotel Investment Outlook Survey, 89 percent of the respondents, comprising hotel owners and operators in the Philippines, said they have a “positive outlook” about the overall hospitality industry for the next one to three years.
Confidence was even more robust for the long term, with 95 percent of respondents believing the industry would thrive beyond the next three years.
“While the pandemic initially halted many hotel developments and the high cost of capital has put others on hold, investors in the Philippines are now ramping up efforts to initiate new hotel projects,” the report read.
This shift, it said, comes as demand rebounds and supply shortages emerge in various destinations across the country.
The survey, conducted by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants, was released during the 1st Philippine Tourism and Hotel Investment Forum Summit at the New World Makati Hotel on Friday.
The respondents represent more than 10,000 keys in the industry, spanning properties across major cities and market segments in the country.
Meanwhile, the survey also showed that investors still have “mixed feelings” about the short-term industry prospects due to inflation driving up the costs of transportation, goods, and services, all of which impact both tourists and hotels.
“With hotels only beginning to resume full operations in 2023, investors are still working to recover from pandemic-related losses. This period also presents an opportunity for operators to address shifts in guests’ demands and preferences,” the study read.
Bohol attracts investors
The study also noted that Bohol, specifically Panglao, is fast becoming an attractive destination for investors, with 41 percent of the respondents exploring hotel development on the island.
“This strong attraction is fueled by the increase in tourist arrivals, facilitated by over 70 international flights weekly,” it read.
“Bohol’s diverse tourism offerings, including wildlife encounters, river experiences, pristine beaches, diving spots, farms, and iconic natural wonders like the Chocolate Hills, further enhance its appeal as a prime investment destination in the Philippines.”
In a separate interview, Leechiu Hotels, Tourism, and Leisure Director Alfred Lay said the government should further invest in connectivity and infrastructure to sustain growth in the province.
“I think it’s up to the local government in coordination with the airport authorities to find new routes. Because I think if you could establish new routes in Panglao, that would be very successful,” he said.
Aside from Bohol, the respondents said they are interested in investing in Metro Manila, Cebu City, Siargao, El Nido, Coron, Davao, and Bacolod.
Data from the Department of Tourism showed that the country’s room inventory as a whole is still lower compared to other neighboring states in Southeast Asia.
As of 2021, the Philippines ranks 5th in the region with only 212,373 available rooms, Tourism Secretary Christina Frasco said.
PHOA Executive Director Benito Bengzon Jr., meanwhile, said the association is committed to working with the government to expand this number and improve the quality of the facilities and services in accommodation establishments across the country.
By 2028, he said, at least 50 more hotels are expected to rise in the country, including in Bohol, Cebu, and Iloilo, translating to about 15,000 more rooms in the country’s inventory.
“For sure, we still have a long way to go but what is important (is) you’re seeing the confidence at a relatively early stage because we’re just barely recovering from the pandemic,” he said. (PNA)
