Philippines looking to grow hotel room supply by 120,000 to more than 456,000 by 2028 – IAG

Headline: Philippines Plans 120,000 New Hotel Rooms by 2028

The Philippines’ Department of Tourism (DOT) has unveiled an ambitious action plan designed to expand the country’s hospitality sector significantly, targeting the addition of over 120,000 new hotel rooms by 2028. This move, part of the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028, aims to cater to the rapidly increasing tourism demand, projecting that annual arrivals will reach 11.5 million by the target year.

Growing Demand for Hospitality in the Philippines

The PHISAP, developed in collaboration with the Philippine Hotel Owners Association (PHOA), emphasizes the critical need for infrastructure upgrades and expansion of hotel capacities across the archipelago. Currently, there are approximately 335,592 rooms in 18,818 hotel establishments nationwide, indicating a shortfall of 120,463 rooms to meet the estimated demand of 456,055 rooms by 2028.

The roadmap outlines high demand in various regions such as Central Luzon, Cavite-Laguna-Batangas-Quezon, Davao Gulf, and the Bicol region, with medium demand noted in areas like Metro Manila and Cagayan de Oro. According to the DOT, "The expected growth in foreign tourist arrivals, compounded by the immense volume of domestic trips made annually, mandates local destinations to increase their capacity in terms of providing a diverse range of product offerings such as attractions and experiences to travelers.”

Addressing the Shortfall

Tourism Secretary Christina Frasco stated, “The PHISAP is more than just a road map; it is a bold vision for a thriving, sustainable, and inclusive future for Philippine tourism.” The document not only outlines plans for expanding accommodations but also emphasizes the importance of fostering public-private partnerships, enhancing human resources development, and strengthening data collection to increase the sector’s global competitiveness.

Despite optimistic growth forecasts, challenges loom. The DOT is ramping up efforts to attract tourists from South Korea, the USA, and Japan, amidst concerns that the Philippines may struggle to meet its target of 7.7 million visitors in 2024. According to Frasco, issues surrounding visa access—particularly for visitors from China—are limiting visitor numbers, with only 4.43 million arrivals recorded as of September this year.

Challenges and Opportunities in the Tourism Sector

Franco, speaking with local media, highlighted the hurdles facing the sector, particularly regarding the stricter visa policies affecting the Chinese market. China remains the Philippines’ second-largest tourism market prior to the pandemic, with 1.35 million visitor arrivals in the same period of 2019, but numbers have dropped starkly to only 260,134 in 2024.

Recognizing the challenges, Frasco remarked, “The DOT, respectful of these realities on the ground, is actively pursuing our top source markets including South Korea, the US, Japan, as well as promising markets, including India.” By diversifying target markets, the Philippines aims to sustain a steady influx of tourists even amid geopolitical uncertainties.

Future Prospects and Community Impact

The implications of the PHISAP extend beyond mere numbers; it promises to improve local economies and enhance the overall travel experience by accommodating a broader spectrum of travelers. Infrastructure development in hospitality is expected to generate thousands of job opportunities across various regions, thus contributing to local economies and communities.

Moreover, the increased capacity is vital for promoting the Philippines as a competitive travel destination, particularly amid rising global competition. With the anticipated growth in tourism and hotel capacity, more travelers will experience the rich culture, breathtaking landscapes, and hospitality that the Philippines has to offer.

Call to Action

With the DOT’s roadmap paving the way for a more robust tourism sector, stakeholders in the industry—ranging from hotel owners to local businesses—are encouraged to engage proactively in the realization of this vision. As the Philippines prepares to welcome record-breaking numbers of tourists, community involvement and support will be pivotal in fostering an enduring legacy of sustainable tourism.

Are you excited about the plans for growth in the Philippine tourism sector? Share your thoughts and insights in the comments below!

For further information about tourism in the Philippines, check out our other articles on Philippine tourism trends and hospitality developments. For more insights about the impact of tourism on local economies, visit VisitPhilippines.com.