Philippine Hotels to Add 40,000 Rooms in 5 Years Amid Tourism Recovery

The Philippine hotel industry is poised for significant expansion, with an estimated 40,000 new rooms expected to be added across 150 hospitality projects over the next five years, according to the Philippine Hotel Owners Association (PHOA). "In the next five years, we’re expecting over 150 hotel projects to be rolled out. That will add another 40,000 rooms," said PHOA Executive Director Benito C. Bengzon, Jr. on the Money Talks with Cathy Yang program on One News. He added that this expansion aims to enhance the country's competitiveness by offering more options to clients, thereby boosting tourist arrivals. Foreign tourist arrivals reached 4.11 million in the first eight months of the year, a 3.7% increase from the previous year, according to the Department of Tourism. However, Mr. Bengzon noted that international arrivals remain below pre-pandemic levels, which saw around 600,000 to 650,000 arrivals monthly. The long-haul tourism market has been particularly affected by the ongoing Middle East conflict. "There’s some hesitation to travel long distance, including to the Philippines, among tourists coming from the Middle East," Mr. Bengzon stated. He also anticipates a slowdown in arrivals from Europe, which often uses Middle East hubs as transit points. To mitigate the impact of rising airfares due to the crisis, tour operators are innovating, including the revival of caravan tours utilizing land transportation. In contrast, the short-haul market, encompassing tourists from South Korea, Japan, and China, has been a bright spot for arrivals. Maria Lourdes Flor Japson, President of the Philippine Tour Operators Association (PHILTOA), highlighted the importance of attracting visitors from these markets, especially from within the Association of Southeast Asian Nations (ASEAN). "I think it’s good to consider also cross-marketing or joint collaboration with fellow ASEAN countries. Because the Philippines and other ASEAN countries have a lot in common," Ms. Japson said. She also emphasized the need for tourism companies to be more creative in packaging offerings, exploring emerging markets such as health and wellness, education, and volunteerism.