Philippines Positioned for Surge in Tourism

Colliers is recommending developers in the Philippines line up various hotel projects in order to capture the surge in local and foreign tourists. Dept of Tourism data showed the first 10 months of 2022 recorded 1.9 million arrivals, beating the full year target of 1.7 million. In the first half of 2022, Colliers recorded the delivery of about 830 hotel rooms in Metro Manila, up 58% year on year. From 2022 to 2024, they expect an annual average completion of 2,650 hotel rooms in the capital region, up from the average of 930 rooms delivered annually from 2019 to 2021. About 40% of the new rooms to be completed will carry a foreign brand, a reason why Colliers is emphasizing developers should explore the viability of partnering with foreign brands in order to maximize possible gain in customers. They also believe developers should explore developing fringe areas as well. From 2020 to the first nine months of 2022, they have seen aggressive launches in Manila, Mandaluyong, Pasig, the Makati Fringe, and the Caloocan-Malabon-Navotas-Valenzuela corridor. These submarkets accounted for about 47% of the total condominium take-up in the first nine months of 2022. Colliers recommends exploring the viability of fringe areas for more residential developments as the improved accessibility brought about by the upcoming Metro Manila and Makati Subway should help prop up demand for mixed-use projects in periphe