THC 1

MACROPERSPECTIVE OF TOURISM AND PERSPECTIVE

MODULE 10
Tuesday

TOURISM INDUSTRY IN THE PHILIPPINES

General Tourism
Business Visits and Hotels
o The hotel industry in the Philippines is expected to see a continued growth
over the next five years, although a decline in hotel occupancy rates in the
first half is forecasted.
 Hotel occupancy rates in Manila slipped to an average of 68
percent in the first half of 2016, lower than occupancy rates the
previous year, however still better than in other ASEAN countries.
 Hotel chains continue to pursue their respective expansion projects.

o The Filinvest Group is increasing its hotel portfolio in both Alabang and
Cebu, plus the Filinvest Group’s Chroma Hospitality, that focusses on
hotel management services, is investing P2.6 billion (US$52 million) for
two Canvas brands – a 228 room Canvas Hotel in Cubao, and a 185 room
Canvas Hotel in Mactan.
 Additionally, Filinvest is introducing a Crimson Hotel in Boracay,
Quest Hotels in Dumaguete and Tagaytay.
 It is planned that these hotels will open between 2018 and 2019.
Chroma Hospitality is also looking to expand in Pasig, Quezon City,
Batangas, Cavite, Laoag, Baguio, Cebu and Davao.

o Another leading investor, Ayala Land plans to launch the Seda hotel chain
across the Philippines over the next five years.
 This will be in addition to Seda Hotels currently located in Bonifacio
Global City, Cagayan de Oro City, Davao City and Laguna.
 Ayala Land are planning 2,000 new hotel rooms by 2018, and
6,000 hotel rooms by 2020. Red Planet, formerly Tune Hotel, is
also planning to expand in the Philippines over the next five years.
Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
  The rebranded hotel currently has 10 hotels, and plans to have 20
hotels in the Philippines over the next five years.

o Along with the anticipated 7 million foreign tourists this year, there are
approximately 50 million domestic tourists.
 Obviously, the continuing improvements in infrastructure such as
airports, roads and rail transport systems is seen as the key that
can unlock the Philippines potential for tourism growth.
 Research has also found that tourists constitute 79 percent of total
hotel guests outside Metro Manila.

Yachting and Sailing

o Tourism in the Philippines has grown steadily during the last few years.
 There are increasing numbers of sailing enthusiasts looking for
sailing and yachting experience amongst the Philippines
archipelago.
 The only way to get to many of the Philippines islands is by
sea, and many of the islands are inhabited.

 Palawan is one of the favorite destinations for those yacht and

sailing enthusiasts.
 The main ports where charter boats can be rented, are
Puerto Galera, Boracay, Coron, Puerto Princesa, and Cebu.

o The industry of yacht chartering in the Philippines is still in early stages.

 The yachting and sailing fleets available for rent are mainly
composed of privately owned boats, and skippered by the owners
who want to share the sailing experience in the Philippines.
 The priority destinations tend to be Boracay, Puerto Galera,
Palawan, Subic Bay, Cebu and Bohol, with other
destinations becoming popular.

o More generally, Southeast Asia is fast emerging as the yachting hub of

Asia, with industry watchers highlighting the potential in markets like
Thailand and Indonesia.
 However, there is not a large yachting culture in Asia, despite the
region’s growing wealthy population.
Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
  Currently only 4.3 percent of the world’s super yachts are Asia-
based, despite the region boasting a large number of high net worth
individuals. For general information, a super yacht is typically at
least 25-30 meters in length.

o The countries that have the highest potential in yacht growth are Thailand,
Indonesia, the Philippines and Malaysia.
 This is due to the natural beauty of the islands, existing yacht clubs,
a viable and strong tourism industry, as well as a strong expat
community who have a history and support for yachting.

Scuba Diving
o The Philippines have the most species in the least space of anywhere in
the planet.
 Out of the planet’s 500 coral species, more than 400 are in the
Philippines.
 The Philippines is at the center of the world’s Coral Triangle, and
host to a very rich marine biodiversity, the whole Philippine
archipelago can be considered a dive location.

o There are over 100 identified diving spots across the Philippine islands
that are rich in corals and marine species.
 The Philippines is currently working at tapping a larger share of the
world’s diving market.
 The current figures for foreign dive tourists in the Philippines is
expected to be 200,000 in 2017.
 Previous figures released by DOT were 59,572 in 2010, 89,911 in
2011 and 126,200 in 2012.
 The biggest markets were South Korea, USA and Germany.

Medical Tourism
o Medical tourism in Philippines is a rapidly growing market.
 In 2015, the Philippines was ranked eighth among the top medical
tourism destinations globally, according to the International
Healthcare Research Center and the Medical Tourism Association
(MTA).

Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
  Patients arriving in the Philippines for medical tourism, come mainly
from East Asia (China, Japan, Korea, Taiwan), USA, Australia, and
increasingly from Europe.

o The Philippine Government’ Departments of Tourism (DOT), Health

(DOH), Trade and Industry – Board of Investments (DTI–BOI) have
combined for a joint programme to promote Philippine medical tourism.
 This informal partnership has resulted in a programme that
identified five major priorities in the medical travel sector – tourists
who come for wellness services; medical tourists, who need low-
acuity medical procedures; medical travelers, who need more
complex procedures; international patients, including overseas
Filipino workers, including retirees; accompanying guests, and
immediate next of kin.

o To date, medical tourism in the Philippines caters to approximately 80,000

to 250,000 patients or clients annually.
 Currently, 62 hospitals around the country are now internationally
accredited, and to date, five Philippine medical institutions, the
Asian Hospital and Medical Center (Muntinlupa City), Makati
Medical Center (Makati City), St. Luke’s Medical Center (Bonifacio
Global City and Quezon City), and The Medical City (Pasig City)
have been certified for international medical care and treatment.

o A 2014 study reported that the Philippine medical tourism industry

generated US$145 million in 2014.
 Among the factors cited in the survey included competitive price for
health and wellness services, high standards of healthcare
provided in internationally accredited hospitals and English
speaking healthcare professionals.
 The Philippines proximity to major international hubs, along with
good tourism destinations for recovery periods were also factors.

Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/