FOREIGN investors are clearly encouraged to put up hotels and restaurants in the Philippines, with official data showing the growth in net foreign direct investment (FDI) in the sector outpacing the growth in total net FDI.
Data from the Bangko Sentral ng Pilipinas (BSP) showed net FDI in accommodation and food service activities grew by 14.75 percent to US$9.6 million (P540.6 million) from January to August 2022, even as total net FDI dropped by 17.13 percent to $907.46 million (P51.09 billion) versus the same period in 2021.
Prior to the pandemic, net FDI in accommodation and food service activities were recorded at $20.64 million (P1.16 billion) for the full year 2019.
As this developed, Tourism Secretary Christina Garcia Frasco told participants at the recent 22nd World Travel & Tourism Council Global Summit in Riyadh that the Filipino brand of hospitality known throughout the world, not just in the tourism sector but in creating a favorable business climate, should be able to attract foreign investors to set up hotels and resorts in the Philippines.
In a panel discussion on enhancing the livelihood of communities, she stressed that the Marcos Jr. administration has identified tourism as a priority: “This means that any investor that will come to the Philippines can expect the full and unequivocal support of government to ensure ease of doing business, incentives for investments, and the full cooperation of local government units when they put up [hotels in] the destination.”
Distinct Filipino hospitality
She added, “The Filipino people [are] one of the best reasons why you should invest in the Philippines; the Filipino hospitality is distinct around the world. It’s felt wherever you may go, as we are in the accommodation and services sector, in many sectors of the tourism industry.”
She cited Saudi Arabia, which hosted the latest WTTC Global Summit, as an example where investors can see Filipino hospitality at its finest, as it employs “over 800,000 Filipino workers, and therefore investors can expect that their businesses will surely flourish and will have repeat customers.”
Additional data from property developer Santos Knight Frank showed 3,065 in rooms being constructed by various hotels in the third and fourth quarter of 2022. Another 2,059 hotel rooms are in the pipeline from 2023 to 2025.
Frasco also tried to dispel the popular view that Philippine resorts were very expensive. “The inherent advantage of the Philippines is that it has 7,641 islands across our beautiful archipelago, that host many accommodation sectors and resorts, not just expensive ones, but the affordable ones as well. What we have been trying to do is to equalize tourism promotion and development by continuing to develop our key destinations such as Cebu, Palawan and Boracay on one hand, while giving an opportunity for lesser-known destinations to come to the fore, to be developed and lent with the expertise of the Department of Tourism and its attached agencies.”
More tourism awards
Meanwhile, the Philippines picked up more awards and recognition from travel organizations and publications.
In a news statement, the DOT said the Philippines was recognized anew as the World’s Leading Country at the Uzakrota Global Travel Awards 2022 by Turkish travel organization Uzakrota, after its first win in 2020. In second and third place were Malaysia and the Dominican Republic, respectively.
The Philippines also racked up 13 awards in US-based Scuba Diving Magazine’s 2023 Readers’ Choice Awards, including the top honors for Shore Diving. The country ranked second in Macro Life, Cavern/Cave and Grotto Diving, Beginners, Photography, and Best Value categories; third in Wreck Diving, Snorkeling, and Health of Marine Environment; fourth in Wall Diving and Advanced; fifth in Best Overall; and ninth in the Big Animals grouping for the Pacific and Indian Ocean cluster.