By Marinel E. Peroy
The Philippine hotel industry projects ₱250 billion worth of investment in new developments that will create over 57,000 direct jobs and add a total of 40,084 new room keys to the market.
In their 2024 Philippine Accommodation Pipeline Report, the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants (LPC) express optimism and expect substantial growth in the industry.
The report, released during a media conference on Tuesday (Sept. 17) in partnership with Solenergy Systems Inc., tracked 158 planned accommodation establishments to come up with industry observations and insights.
It highlights strong confidence in tourism as the country recovers from the pandemic. It notes the resilience of the hotel sector, with developers increasingly expanding projects across different regions.
Alfred Lay, LPC’s Director for Hotels, Tourism, and Leisure, told THEPHILBIZNEWS that tourism is a vital leg of the Philippine economy.
For instance, while Mindanao is considered “underserved by high-quality accommodation options,” Lay said there’s a prospect to turn it into a business and tourism hub.
“We think that continued economic development there will entice more developers to seek out hotel projects in those regions. There needs to be some branding work there [to be] done by local tourism offices to change people’s minds,” Lay said, noting that safety concerns may be a factor.
Demand sources and diverse market growth
Lay said the country’s main sources of demand are South Korea, Japan, and China, with growing interest from India and Middle Eastern countries.
According to the report, key development areas are Lapu-Lapu City and Panglao Island.
Lapu-Lapu City leads with 4,786 rooms planned across 10 projects, averaging 435 rooms per accommodation. Panglao Island is second with 4,401 rooms across 16 projects, while Boracay ranks third with 3,625 rooms, remaining the top tourist destination in the Philippines.
These developments reflect diverse market growth, as interest increase in upscale and luxury accommodations in tourist hotspots driven by both local and international brands.
In addition to resorts near beaches and casinos, other types of accommodations like condotels, serviced apartments, and branded residences are becoming more popular as market preferences change.
PHOA Executive Director Benito C. Bengzon Jr. said the report provides comprehensive and reliable data, and offers invaluable insights to hotel owners, tourism stakeholders, and government policymakers.
“The report enables them to make informed decisions that would shape the future landscape of our industry,” Bengzon said, as he encouraged more hotel and accommodation providers to participate actively in the initiative.