FROM 75th place in 2021, the Philippines has climbed to 69th place in the World Economic Forum’s 2024 Travel and Tourism Development Index.
The United Nations World Tourism Organization noted positive developments in Philippine tourism recently. However, some areas still need improvement to enhance its attractiveness compared to other countries.
“It means that there is a lot of place for improvement. I think it’s very good to know that there are other countries in the region slightly doing better. It’s a good reference point for you to check what they are doing better, what they are doing differently. The government should definitely look into it,” according to Peter Janech, Coordinator, UNWTO – Innovation, Education and Investments Department.
Lack of hotel accommodation in Philippines remains a challenge—DOT
The Department of Tourism acknowledges that there is still much to be done to improve the tourism sector and attract more tourists.
Tourism Secretary Christina Garcia-Frasco highlighted one of the challenges: the lack of tourist accommodations or hotels in the Philippines.
In data shared by Frasco from the United Nations World Tourism Organization, the Philippines is lagging behind Vietnam, Thailand, Indonesia, and Malaysia in terms of available hotel rooms.
DOT, PHOAI to focus on attracting more hotel investors to PH
With the Philippine Hotel Owners Association Inc. (PHOAI) as a partner, the DOT is now focused on encouraging more investors to build additional hotels in the Philippines.
To advance this initiative, PHOAI organized the Philippine Tourism and Hotel Summit 2024 to explore the country’s significant potential for hotel investment.
“Based on ASEAN data, we still need to catch up in terms of the number of rooms. That’s why this summit is very timely because we are inviting our investors and current owners to further expand in the Philippines and to provide more opportunities for tourism development in our destinations in the Philippines,” said Sec. Christina Garcia-Frasco, Department of Tourism.
“Our commitment is to help the government, help the dot expand the inventory and improve the quality of the facilities and services in the accommodation establishment over the country,” stated Benito Benzon Jr., Executive Director, Philippine Hotel Owners Association Inc.
Benzon expects that in the next four years, the PHOAI will develop fifty-five hotel projects that will add 15,000 rooms to the country’s inventory.
Most of the hotels to be built will be in Bohol, Cebu, Palawan, Iloilo, Cagayan de Oro, Siargao, and Bicol.
Benzon said that these projects are a good indication of investors’ high confidence in the Philippines.
“Investors see opportunities across the country. And this is one advantage that the Philippines has. We have a wide range probably a longer list of destinations that we can offer to our visitors,” said Benzon.
According to the 2024 Philippines Hotel Investment Outlook Survey Report, hotel developers are most interested in investing in Bohol, followed by Metro Manila, Cebu, Siargao, and El Nido.
The DOT is now focusing on developing the Philippine hotel industry strategic plan to expand and improve the industry.
One of the focuses is hotel investment in tourist destinations.
“The objective is not only that we continue to invest in our well-known tourist destinations but rather also to open up tourism opportunities sa iba’t ibang isla ng Pilipinas. With 7,741 islands over 80 provinces, there are so many opportunities for tourism infrastructure development,” added Frasco.
According to DOT data, tourism investment in the country reached p509 billion in 2023, up 34.3% compared to 2022.
The accommodation sector contributes the most to tourism investment in the Philippines.
