Hospitality News Hotel, a Manila-based publication, mentions that between the last quarter of 2015 and the end of 2018, the Philippines hotel industry will add 15,741 for international branded chains. International chains represents two third of all registered accommodation in the country.
The magazine estimates that until 2020, the total number of added rooms should surpass 20,000. The peak for hotel opening should be in 2016 as over 5,000 rooms are scheduled for opening. Accommodation demand is on the rise due to a combination of various factors:
– A new tourism dynamic with a very effective marketing campaign (“It’s more fun in the Philippines”) which helped boosting total foreign arrivals from 3.5 million in 2011 to 5.36 million last year and likely 6 million visitors in 2016. According to data from the World Tourism and Travel Council (WTTC), total foreign arrivals should hit 8.02 million by 2025.
– Improving infrastructure. The pace of development is still slow but progress can be noticed. New highways have been developed or opened, port infrastructures improved while a string of new airports projects are taking place (Manila NAIA terminal 1 renovation; Clark, Cebu, Puerto Princesa and Davao air terminal expansion; Bohol and Boracay new airports).
– Rising income stimulates domestic travel demand. In the last three years, the Philippines GDP has been expanding at a faster pace than most other Southeast Asian nations. Average annual GDP growth stands at over 6%.
The hotel chain with the largest portfolio of rooms is AccorHotels (1,511 units) followed by Starwood (1,500), Dusit International (1,033), Marriott International (1,022) and Hilton Worldwide (699).