The hotel industry in the Philippines is grappling with a surge in foreign tourist arrivals, outpacing hotel developments, as reported by Leechiu Property Consultants Inc.
The first quarter saw a remarkable 18% year-on-year increase in tourist arrivals, reaching 1.66 million, the highest post-pandemic single-quarter arrivals. This surge is attributed to additional direct international flights and eased visa restrictions.
However, the industry faces potential hotel supply shortages due to construction delays and high funding costs exacerbated by the economic impact of the COVID-19 pandemic.
Despite the Department of Tourism’s aim for 7.7 million tourist arrivals this year and projected annual growth, the anticipated growth in hotel keys from 2025 to 2028 is less than 1%, potentially leading to increased room rates.
Leechiu anticipates a complete rebound in overall hotel performance by next year, with 24,267 keys in the pipeline across 87 hotel projects in the country.
Source: PhilNews24 | May 2, 2024
