Composed of 7,641 islands (the official count was updated from 7,107*), the Philippines has much to offer in terms of natural attractions and destinations. Yet, the country is still lagging

behind neighboring countries such as Thailand, Malaysia and Indonesia when it comes to tourist arrivals. The biggest obstacles in attracting foreign tourists to the country are poor infrastructure and inadequate access—making it expensive and difficult to travel to and within the country—which President Duterte is addressing aggressively through his proposed Build! Build! Build! program.

This ambitious agenda will see $160B to $180B go into implementing 75 flagship projects, including six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four seaports. If successful, Build!Build!Build! will generate more jobs, encourage countryside investments, and make the movement of goods and people more efficient, possibly ushering in a “golden era” of economic development.

With this effort, the Department of Tourism is confident that it can double the number of foreign tourist arrivals and increase tourism revenue by 90 percent by 2022. This program is also a worthy complement to the hospitality boom the Philippines is presently enjoying. Hotel pipelines over the next five years show a rapid construction of hotels and mixed-use developments throughout the country by both local and foreign investors. With so much going on at the same time, one has to wonder if we have enough trained laborers to complete all these hospitality and infrastructure projects and the skilled service providers once it all opens.

Another pressing concern is the possible impact this rapid development will have on the environment. A strong economy is sustainable only if it integrates economic, social and environmental well-being. As of printing, the government is a few days away from making a decision on whether to temporarily or completely shut down popular beach destination Boracay to allow for the island’s rehabilitation due to environment problems, and if so, for how long. But Boracay is far too reliant on tourism to take such extreme measures—the negative impact a closure will have on the labor force and the economy does not bear repeating. Plus, we risk turning foreign travelers to other island destinations like Bali and Phuket instead of other places in the Philippines. What also happens to hotel and business owners who have abided by environmental and zoning laws? Should we all consider them collateral damage?

Whether or not a Boracay closure takes place, the government still needs to find a balance between rapid infrastructure development and protecting the island’s natural resources—and that of the country’s remaining 7640 islands.

Regardless of the outcome, Boracay’s present situation can be a reference point as well as a cautionary tale of what not to do, but it can also be a case study for the creation of innovative solutions that promise the ultimate reconciliation of environmental and economic progress.

T h e P h i l i P P i n e g u i d e

fo r h oT e l , P r o P e rT y, a n d

To u r i s m d e v e l o P m e n T

I s s u e N o . 5 | 2 0 1 8

more, more, more hotels rooms. over 18,000 hotel rooms (50% in Metro Manila alone) are expected to open in the Philippines over the next four years. Currently, more than 70 hotel projects are in the pipeline in anticipation of the estimated arrival of 10 million foreign tourists by 2020, as well as an increase in domestic tourists.

more international hotel groups are opening in the Philippines. Grand Hyatt, Mandarin oriental, sheraton, Westin and Hilton are just some of the global brands opening in the next two to three years. Property developer Megaworld is also poised to bring in Marriott’s Ritz-Carlton into the country.

sudden growth of homegrown brands. Ayala’s seda Hotels is opening seven properties over the next three years. Filinvest’s Grafik Hotels are now ready for roll-out. Maverick hotel brands like Discovery Group, Bellevue, Astoria, and Hennan Resorts are building a series of lone hotels in key cities and resort destinations.

Branded residences: the marriage that works. With rising prices of real estate, we’re seeing more hotels integrated into branded residences, some with leaseback options. It’s no longer just a luxury play—we have seen a roll-out of upper and mid-scale projects as developers seek higher premiums on residential sales and less property management while addressing the needs of its buyers for quality construction, design and service, along with potential investment returns in case of resale or from a rental pool.

hostel hybrids emerge in southeast asia.Not just for backpackers, the new hostels or “poshtels” are a hybrid between hotels and hostels that offer private and dorm rooms with chic design and social experiences for today’s millennial travelers. Generator Hostels and Meininger led the reinvention of hostels in europe. The trend is now spilling over into Asia with Lubd in Thailand, 5 Footway Inn in singapore and Junction Hostels in the Philippines.

Cat’s eyea W a T C h l i s T

o n T o u r i s m

a n d P r o P e r T y

m a r k e T

I n s I d e r

a Time To Build, a Time To rehabilitate

*According to the National Mapping and Resource Information Authority or NAMRIA in 2016

Cyndy tan Jarabata

tourism indicators

IncreasIng chInese Marketsouth Koreans may have remained the Philippines’

top tourism market in 2017 with arrivals at 1.6 million (Boracay and cebu being the most popular destina-tions), but chinese tourists are fast catching up—ar-

rivals showed a 43% growth from 2016. dot attributes this to improved relations between the Philippines

and china, added air routes and the Visa upon arrival (Vua) option for chinese nationals.

dot projects 7.4 million foreign tourist arrivals for 2018.

In foCus:

Januar y – december 2016total tourIst arrIvals

9.8 %from 2016

Januar y-december 2017

01 korea 1,607,821

04 Japan584,180 

05 australIa259,433 

02 chIna 968,447

03 usa 957,813

top 5 vIsItorarrIvals

6.6Million

total tourIst arrIvalsJanuar y – december 2017

01 nInoy aquIno InternatIonal aIrport

(manila) - 42,022,484

02 Mactan-cebu InternatIonal aIrport

(cebu) - 10,050,940

03 FrancIsco bangoy InternatIonal aIrport

(davao) - 1,933,832

top 3 busIest aIrports n the phIlIppInes

2017

boracayBoracay, along with Cebu, and Palawan, were named the best islands in the world by the Conde nast traveler’s Readers’ Choice awards 2017. Boracay ranked first in the survey, while Cebu and Palawan placed second and third, respectively. More than 300,000 travelers took part in the survey.

Despite this recognition, Boracay, famous for its long, wide beach and powder-like sand was recently targeted by President Duterte, who called it a cesspool, due to the island’s inefficient sewerage system. several beachfront establishments have also been accused of violating easement rules. The interior, environment and tourism departments have recommended the closure of Boracay for one year to facilitate its rehabilitation.

Despite these environmental issues, two casino operators—Macau’s Galaxy entertainment Group and Resorts World Manila—are coming in, while another major hotel group—Double Dragon’s Hotel 101—is opening in the island.

palawanapart from ranking third in the list of Conde Nast Traveler’s best islands in the world, Palawan was also cited by a New York-based magazine as one of the 13 places in the world where you can see the “bluest waters.” The tropical paradise got the nod from Travel + Leisure for its “jungle-filled islands surrounded by stunning teal waters teeming with fish and coral reefs.”

Palawan has over 1780 islands and islets, making it ripe for investment and opportunities, especially in el Nido, Coron, Busunga and Nakpan.

Property giant ayala Land Inc. has allotted P11 billion to invest in el nido, transforming the 325-hectare former copra farm Lio into a resort community. After opening the boutique hotel Casa Kalaw in late 2017, Ten Knots is set to open three more hotels: Balai Adlao, Hotel Covo, and seda Lio. Also under development at Lio is Kalye Artisano, an artist’s village that will serve as a platform for various forms of visual and performing arts.

M actan, ceb u the long-established Mactan economic Zone, along with the emergence of new business districts, has made Mactan Island in Cebu a thriving investment hub and renowned center for manufacturing. About P30 billion worth of investment will be poured into developing a 28.8 hectare township called the Mactan Newtown Center by MegaWorld, which will have luxury condominiums, cyberpark, hotels, retail and entertainment centers.

Major hotel development projects are expected to be completed in the next few years, including The sheraton Cebu Mactan Resort and Residences (2019), Dusit Thani (2019), Filinvest’s Grafik Resort Mactan Cebu (2020), and Aruga Hotel by Rockwell (2021). Holding company udenna is also building emerald Casino Resort, the first integrated resort and casino outside Metro Manila, which is planned for completion by 2020.

Mactan is also experiencing an infrastructure boom. Terminal 2 of the Mactan Cebu International Airport (MCIA) is set to open mid 2018, while the construction of the P30 billion Cebu-Cordova Link expressway (CCLeX), the third bridge to connect mainland Cebu and Mactan, is set to start this year. Target completion by 2021.

Metro ManilaGrand Hyatt ManilaSeda Hotel BGC Tower 2dusitD2 The FortSeda Arca SouthHotel 101-FortHop Inn AlabangLub dSeda Suites Seda Circuit MakatiMandarin Oriental ManilaSomerset Salcedo VillageSomerset Valero MakatiCitadines Benavidez MakatiNÜWA Hotel (Formerly Crown Towers Hotel)Hop Inn AseanWestin Manila BayshoreSeda Bay AreaHotel Okura Manila BayshoreHoliday Inn ExpressSavoy Hotel ManilaCitadines Bay CityHotel Okura Manila Resorts WorldHilton Manila Resorts WorldSheraton Manila Resorts WorldAscott DD Meridian ParkHop Inn Tomas MoratoSeda Hotel Ayala North ExchangeGrafik CubaoCitadines Greenhills Manila

calabarZon/tagaytay/batangasQuest TagaytayB Hotel NuvaliDusit Princess

baguio/la union/pampangaHoliday Inn Baguio City CentreBellevue BaguiodusitD2 San Juan ResortMicrotel by WyndhamQuest Plus Pampanga

palawanSeda Lio in El Nido, Palawan

cebu/boholThe Henry PanglaoBellevue Bohol 2Seda Cebu Business ParkDusit Princess CebuCitadines CebuSeda Central BlocLyf Cebu CitySomerset Gorordo Hop Inn CebuHoliday Inn Cebu TRYP by WyndhamSheraton Cebu Mactan ResortDusit Thani Mactan CebuEmerald Resort and CasinoCrimson Suites MactanGrafik MactanRockwell Aruga ResortMicrotel by Wyndham MactanHoliday Inn Mactan Seagrove

boracayCrimson ResortHotel 101 Resort-Boracay

Iloilo/bacolod/DumagueteMarriott CourtyardCitadines IloiloSeda Capitol Central Quest Hotel and Conference Center

DavaodusitD2 HotelMicrotel by Wyndham Hotel 101-DavaoCitadines Riverside DavaoDusit Thani

BGC, TaguigBGC, TaguigBGC, TaguigFTI Complex, TaguigBGC, TaguigMuntinlupa CityMakati Avenue, Makati City Gate Medical Center, MakatiMakatiMakatiSalcedo Village, MakatiSalcedo Village, MakatiLegaspi City, MakatiCity of Dreams, ParañaqueAseana City, ParañaqueResort World Bayshore, ParañaqueAseana City, Parañaque Resort World, ParañaqueNewport City, PasayNewport City, PasayCentral Business Park, Pasay Newport City, PasayNewport City, PasayNewport City, PasayMeridian Park, PasayQuezon CityQuezon CityCubao, Quezon CityGreenhills, San Juan

Feb 20182018201820182020Jul 2018Feb 2018201920192020202120212023Jan 2018Apr 2018201820192020Mar 20182018Q2 2018Q4 2018201920192021Dec 2018201920222022

TagaytaySta Rosa, LagunaLipa City, Batangas

Q2 201820212021

Holiday Inn Baguio City CentreBellevue BaguiodusitD2 San Juan ResortMicrotel by WyndhamQuest Plus Pampanga

201820192019Q4 2018Q4 2020

El Nido, Palawan Q4 2018

BoholBohol Cebu Business Park, Cebu CityNorth Reclamation Area, Cebu CityR. Duterte St., Cebu CityCebu I.T. Park, Cebu CityBase Line Center, Cebu CityCebu Business Park, Cebu CityCebu Business Park, Cebu CityCebu Business Park, Cebu CityCebu CityMactan Island, Lapu-Lapu CityMactan, Lapu-Lapu CityMactan Island, Lapu-Lapu CityMactan Island, Lapu-Lapu CityMactan Island, Lapu-Lapu CityMactan Island, Lapu-Lapu CityMactan Island, Lapu-Lapu CityMactan Island, Lapu-Lapu City

Q4 20192020Q3 20182018Q1 2019202020212021202120212021201920192020Q4 2020Q4 2020202120212022

Station Zero, BoracayBoracay New Coast

Feb 2018Q4 2020

Iloilo Business Park, Iloilo CityIloilo CityBacolod CityDumaguete City

May 20182019Jan 2018Q4 2020

Lanang Business Park, Davao CityDavao CityDavao CityDavao CityLubi Plantation Gulf

Q4 2018Q2 2019202020212021

461342245265606168230293255275270184145254196600350380712684212191357350350167312300280

165100152

18537174135250

153

40150301295180214180155214180250250271834228322300180200

1921001

316120154180

12080519250162

h o T e l n a m e s l o C a T i o n k e y s TargeT oPening daTe

Hotels in tHe PiPeline

TAJARA is a leading hospitality consulting and development company in the Philippines working with clients throughout Asia.  Its in-depth knowledge and experience in mainstream and emerging destinations guide owners and investors in making strategic decisions and provide local intelligence to facilitate the projects’ development process. TAJARA handles rollout plans for independent and chain hotels taking on the projects’ full development cycle from acquisition, technical services, marketing, hotel operator selection, project management, pre-opening and asset management.

Cyndy Tan Jarabata has diverse experience extending 20 years in the hospitality, leisure and residential development. She heads business development, acquisition, operations and asset management.

aBouT TaJaraHot: CeBu’s MCIa to oPen teRMInaL 2. Mactan Cebu

International Airport’s new terminal will finally be unveiled in the Q2 of the year. The new terminal will encompass a total space of 65,000 square meters, and will increase the Cebu airport’s passenger capacity to 12.5 million.

Hot: ConDe nast tRaveLLeR naMes BoRaCay, CeBu anD

PaLawan tHe woRLD’s Best IsLanDs of 2017. The popular Philippine destinations were named the world’s best islands in 2017 in Conde Nast Traveller’s Readers Choice Awards. Votes were garnered from 300,000 travelers worldwide.

foRBes tRaveL GuIDe CItes 12 PH HoteLs aMonG tHe woRLD’s Best. The prestigious Forbes Travel Guide cited 12 Philippine properties in the 2018 Star Awards. Three hotels were given five-star ratings, namely: Marco Polo Ortigas Manila Sky Tower at Solaire Resort & Casino and Nüwa Manila. Fairmont Makati, Hyatt City of Dreams Manila, Nobu Hotel Manila, The Peninsula Manila, Raffles Makati, and Sofitel Philippine Plaza were each given a four-star rating, earning praise for their impeccable facilities and excellent service. Makati Shangri-La and Pan Pacific Manila also received a nod with a “recommended” rating. anDRew tan to BRInG RItZ-CaRLton HoteL to PHILIPPInes. Tycoon Andrew Tan is set to bring in the Ritz-Carlton hotel brand to the Philippines, rebranding the existing Maxims Hotel, an-all suite accommodation at Resorts World Manila, to appeal to the increasing number of casino high-rollers, such as Taiwanese and Chinese players, coming into the country.

MoRe eConoMy anD BuDGet HoteLs In tHe PHILIPPInes. The Erawan Group Plc., Thailand’s leading hotel developer, is allotting P4 billion to build 12 to 15 hotels under the Hop Inn Brand in Metro Manila and Cebu over the next five years. The company is opening a hotel in Aseana, in Alabang and another in Quezon City this year. Similarly, Red Planet Hotels is planning to open five more hotels across the country this year, increasing the total number of Red Planet hotels to 18. Local brand Go Hotels is set to open four more properties across the country. Double Dragon Properties Corp. has just broken ground on Hotel 101-Fort at Bonifacio Global City and is expected to open other 101 hotels in Davao, Bohol and Boracay by 2020.

Hot: touRIst sPenDInG uP 40 PeRCent Visitor receipts

surged 40.71 percent in the first 10 months of 2017, driven by the influx of higher-spending Chinese tourists into the country. Based on DOT’s data, visitor receipts from January to October 2017 amounted to P274.35 billion, up from P194.97 billion in the same period last year. In October alone, visitor receipts jumped 88.67 percent to P31.12 billion from P16.5 billion in the previous year. The average daily expenditure for this month stood at P6,862.03. Chinese tourists largely contributed to the growth in visitor receipts, as China bagged the top spending market for the second consecutive month, with receipts amounting to about P9.95 billion for October. Korea followed China, registering around P9 billion worth of spending. The US placed third with almost P2.48 billion spent, followed by Taiwan with an estimated P2.28 billion spending and Japan with P1.50 billion. In addition, the average length of stay of tourists in the country was recorded at 7.87 nights. Average per capita expenditure of visitors for the month of October was pegged at P54,004.

oveRsuPPLy In tHe PHILIPPInes’ BooMInG CasIno seCtoR Is tHRIvInG. Overinvestment in the Philippines’ thriving casino sector can become a reality as investors chase lucrative returns in Asia’s fastest-growing gaming hub after Macau and Singapore. The government hopes to draw millions of foreigners to casino resorts in Entertainment City, a 100-hectare area that aims to mimic Las Vegas and Macau.

PaL PLannInG P20 BILLIon aDDItIon to naIa teRMInaL 2. Philippine Airlines is planning to build a P20 billion passenger terminal to complement its hub at the Ninoy Aquino International Airport (NAIA) Terminal 2. The projected 89,000 square-meter terminal will be designed to handle 12 to 15 million passengers annually, and will include multi-level parking for 1,000 vehicles, a new cargo terminal, and ground service facilities.

Hot: 4 PH InteRnatIonaL aIRPoRts ReCoMMenDeD

By tRaveLeRs as toP 25 Best aIRPoRts In asIa In 2017. The list, published by Sleeping in Airports in October 2017, cites the international airports in Iloilo, Mactan-Cebu, Davao, and Clark as among the Best Airports for Overall Experience based on the following criteria: comfort (gate seating and availability of rest zones); services, facilities and things to do; food options; immigration and security; customer service; cleanliness; navigation and ease of transit; and sleepability (for airport stays by choice or due to layover or weather delays).

marKet uPdates: WHat’s in and WHat’s Hot

for hoTel develoPmenT and hosPiTaliTy ConsulTing,

ConTaCT us:

tel: +632 8242231www.tajaraleisure.com

tyrone tanvp for project development tyrone@tajaraleisure.com

+63917 5603885

Cyndy tan-Jarabatapresident

cj@tajaraleisure..com+63917 8387238