Colliers is expecting that hotels in the Philippines will complete some 3,900 rooms – a record-high for developers, as they ‘anticipate the projected recovery in global travel’ in 2023.
The group is further anticipating the construction of 2,120 rooms annually between 2023 and 2025, a sharp increase from the 720 rooms completed yearly between 2020 and 2022.
‘We expect more foreign-branded hotels opening in the next 12 to 36 months. From 2023 to 2025, about 44 percent of the new supply are likely to open in the Bay Area, Makati CBD and Ortigas CBD’, notes the agency.
The increase is set to be driven by the recovery in foreign and local tourist visitation, more modern airports and the growing propensity for spending on leisure.
In addition, average daily hotel rates are expected to have risen by 15 percent in 2022, ‘after recording a cumulative drop of 20 percent in 2020 and 2021’. The expectation is that daily rates will ‘continue to improve in 2023 following the projected rise in local and foreign tourists’. The rates are likely to be driven by an attraction of ‘more international travelers, especially the long-haul and high-spending ones’.
Expectations are for domestic tourism to jumpstart the market.
However, foreign travel is continuing to rise, with 2 million foreign tourists recorded as of mid-November 2022, far ahead of the nation’s 1.7 million target. The top source markets for the country were the United States, South Korea and Australia.
Foreign visitors generated some $1.7 billion in visitor spending during the February to September 2022 period, a strong increase on the $8.4 million registered just a year prior.