MANILA — A recent survey reveals strong investor confidence in the medium- and long-term growth of the Philippine hospitality industry. The 2024 Philippine Hotel Investment Outlook Survey, which gathered insights from hotel owners and operators across the nation, found that 89 percent of respondents are optimistic about the industry’s prospects over the next one to three years, with confidence increasing to 95 percent for growth extending beyond three years.
According to Philippines News Agency, the report released during the 1st Philippine Tourism and Hotel Investment Forum Summit at the New World Makati Hotel on Friday, the positive outlook is bolstered by an uptick in new hotel projects and increased demand. The survey, conducted by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants, indicates a rebound from the initial pandemic slowdown and recent challenges posed by high capital costs.
While investors are optimistic about the medium- to long-term future, the survey noted some reservations about the short-term outlook due to inflationary pressures affecting transportation, goods, and services, which in turn impact both tourists and hotel operations. “With hotels only beginning to resume full operations in 2023, investors are still working to recover from pandemic-related losses,” the report stated.
One notable finding from the survey is the rising interest in Bohol, particularly Panglao, as a key investment destination. Forty-one percent of respondents are considering hotel developments there, driven by increasing tourist arrivals and over 70 international flights arriving weekly. Bohol’s diverse tourism offerings, such as wildlife encounters, river experiences, and iconic sites like the Chocolate Hills, are highlighted as factors enhancing its investment appeal.
Leechiu Hotels, Tourism, and Leisure Director Alfred Lay emphasized the need for further investments in connectivity and infrastructure to support sustained growth in regions like Bohol. He suggested that establishing new routes in Panglao could be particularly successful, urging local government coordination with airport authorities to achieve this.
In addition to Bohol, the survey identified Metro Manila, Cebu City, Siargao, El Nido, Coron, Davao, and Bacolod as other preferred areas for investment. Despite the optimistic projections, the Philippines still lags behind its Southeast Asian neighbors in terms of room inventory, ranking fifth in the region with 212,373 available rooms as of 2021, according to Tourism Secretary Christina Frasco.
PHOA Executive Director Benito Bengzon Jr. shared plans to increase the number of hotel accommodations, projecting the rise of at least 50 new hotels by 2028, which would add approximately 15,000 rooms to the national inventory. “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,” Bengzon remarked.