Tourism is the next big thing in the country’s real estate market as the country’s meager share in the vast international tourism market leaves much room for growth, according to the chief of property consultancy firm Jones Lang LaSalle (JLL) Philippines.
“The hotel sector is undergoing rapid evolution, very rapid. There are about 15,000 hotel rooms today, we are going to double that in the next three years,” said JLL’s David Leechiu, speaking in a property briefing conducted by BPITrade.com last week.
Leechiu estimated that about 12,400 rooms will be completed from 2013-2017, about half of which will come from the Entertainment City complex in Parañaque City.
He said the rest would come from projects such as those in Makati City, Ortigas Center in Pasig, Bonifacio Global City in Taguig, and Newport City in Pasay.
The JLL country chief stressed the need for two- and three-star hotels in the growth corridor spanning Quezon City, where there’s a dearth seen in the business hotel segment, all the way to Laoag, Ilocos Norte in northern Luzon.
Leechiu said three segments—the stretch to northern Luzon from Ortigas Center in Pasig to Clark, Pampanga; from Clark to Baguio City; and from Baguio to Laoag—were particularly in need of such hotels.
Of the total international tourism receipts of $1.075 trillion in 2012, the Philippines’ share was a mere $3.82 billion.
Similarly, the country’s total foreign tourist arrivals in 2012 numbered only 4.2 million, less than 1 percent of the total tourist arrivals of 1.035 billion worldwide.
Aside from the hotel sector, Leechiu took note of the growth expected in the office market, with 8.5 million square meters in new supply going on stream from now till 2016 across the various business districts in Metro Manila. In terms of future supply, Bonifacio Global City has the biggest area at 900,000 sqm.
“Assuming that the Philippines posts a stable fiscal position and good credit standing by 2013-2014, we may expect other demand drivers (like financial services and insurance companies) to create an additional demand of anywhere from 20,000 sqm to as much as 100,000 sqm of office space from non-BPO (business process outsourcing) traditional offices,” he said.
This property briefing was one of several events organized by BPItrade.com, the online stock brokerage of Bank of the Philippine Islands, to “provide an additional service to clients so that they broaden their outlook on investments,” said Ricky Liboro, director of BPItrade.com. “There is more about the stock market than conglomerates and consumer stocks. There are other sectors, too. We want to see if there are opportunities in these other sectors,” he said.