Rosy prospects for hotel sector
Megaworld is banking on the popularity of resort destinations in the Visayas with the opening of Savoy Hotel Boracay, according to Colliers.
The sustained influx of foreign tourists is offering hotel owners and operators reasons to be optimistic.
Estimates made by the government and the private sector both point to a double digit growth in international tourist arrivals, which is expected to boost demand for rooms.
The Philippine government has forecasted a 17 percent growth to 7 million foreign visitors this year while Colliers International Philippines sees at least 6.6 million visiting the country, up 10 percent from the 5.97 million recorded in 2016.
The growth of the Philippine tourism sector, according to Colliers, will be sustained by the influx of visitors from traditional markets such as South Korea, United States, Japan, and China. These four economies account for nearly 60 percent of annual tourist arrivals in the country.
Bullish outlook
“Outlook for Philippine tourism remains bullish and this encourages hotel developers to ramp up construction of accommodation facilities throughout the country,” said Chris Wells, Colliers International Philippines’ consultant for hotels and leisure services.
In Metro Manila alone, Colliers expects the addition of more than 4,000 rooms to the hotel room stock this year.
“Despite the projected completion of a significant number of new hotel rooms, Colliers sees occupancy rates in Metro Manila hovering between 65 and 70 percent over the next 12 months,” Wells added.
Hotel occupancy in Metro Manila rose by two percentage points to 71 percent as of end 2016 from 69 percent during the first half of the same year.
Developers are also cashing in on the popularity of two to four star hotels among Chinese, Taiwanese, Korean, and Japanese tourists, Colliers said.
For instance, Double Dragon plans to build five more Jinjiang hotels this year, while Ayala will open its 250-room Seda hotel in Circuit Makati and the 440-room Seda hotel in Quezon City also within the year.
Meanwhile, Megaworld is banking on the popularity of resort destinations in the Visayas with the opening of Savoy Hotel Boracay at Boracay Newcoast, and the planned Marriott Courtyard Hotel at the Iloilo Business Park, Colliers added.
Relations, int’l events
Warming relations between the Chinese and Philippine governments are also expected to result in more Chinese tourists.
“Late last year, the Philippine and Chinese governments signed an agreement on tourism cooperation that includes exploring a possible increase in capacity entitlements in air services, and encouraging airlines to open new flights between Philippine cities in the Visayas and Mindanao and Chinese cities,” Colliers noted.
“This agreement is expected to bear fruit in the next six to twelve months,” it added.
The property consultancy firm further pointed out the spillover impact of the country’s successful hosting of major international events in the past two years such as Asia Pacific Economic Cooperation Summit, the Asean Tourism Forum, Routes Asia, and Miss Universe.
“The successful staging of these events only affirm the Philippines’ viability as a key meetings, incentives, conferences and exhibitions (MICE) destination in the region,” Colliers further said.
