Hotel keys in pipeline (LEECHIU PROPERTY CONSULTANTS INC.)
The Philippines, a perennial favorite for sun-seekers and adventurers, is not resting on its laurels. While the archipelago nation consistently charms with pristine beaches, a rich cultural heritage, and warm hospitality, the ambition is clear: to ascend to the ranks of the world’s premier tourism destinations.
The 2024 Travel & Tourism Development Index (TTDI), a comprehensive assessment by the World Economic Forum, offers a roadmap for this upward trajectory. The Philippines has made notable gains, climbing six spots to 69th place overall, and ranks 6th out of the 8 Southeast Asian countries in the report. Yet, regional rivals like Thailand, Malaysia, and Indonesia still hold a significant lead, ranking at 47th, 35th, and 22nd place, respectively.
Strengths and challenges
Price competitiveness remains a key advantage for the Philippines, scoring 5.57 out of 7 in this critical category. However, the report reveals a pressing need for investment in tourist services and infrastructure, where we received a score of 1.55.
Leechiu Property Consultants recorded approximately 24,267 keys across 87 hotel projects throughout the country until 2028. Despite this substantial number, the anticipated influx of both domestic and international travelers in the coming years may put a strain on the existing supply of accommodations and facilities, presenting a significant opportunity for hotel investments.
Developers have traditionally focused their hotel investments on established locations like Metro Manila, Cebu, and Boracay. However, we’re seeing a noticeable shift toward emerging tourist destinations such as Bohol, Siargao, San Vicente, and Siquijor. These up-and-coming spots, which have been experiencing a steady rise in visitor numbers, present early and promising opportunities for investors.
Areas for growth
To capitalize on its strengths and address its shortcomings, the Philippines must focus on several key areas:
Economic resilience: Navigate inflationary pressures with strategic pricing to maintain the allure of affordability.
Infrastructure investment: Attract significant investment in hotels and tourism-related infrastructure to meet growing demand and avoid capacity constraints.
Key collaborations: Forge stronger partnerships between the public and private sectors to drive innovation and ensure the sustainable growth of the tourism industry.
The path forward
The Philippines’ significant reliance on tourism for economic growth underscores the importance of continued progress in this sector. While the country has made commendable strides, the 2024 TTDI provides a blueprint for strategic action.
By addressing these challenges head-on, the Philippines can confidently position itself as a global tourism powerhouse. It’s not just about catching up, it’s about setting a new standard for a truly exceptional travel experience.
The author is a Researcher for Hotels, Tourism, and Leisure at Leechiu Property Consultants Inc.