A Time To Build, a Time To rehabilitate - Composed of 7,641 islands (the official count was updated from 7,107*), the Philippines has - TAJARA Leisure
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I n s i d e r
T h e P h i l i pp i n e g u i d e
f o r h o t e l , p r o p e r t y, a n d
Issue No.5 | 2018
tourism development
Cat’s
eye
A Time To Build,
a W a tc h l i s t
on tourism
A Time To Rehabilitate
and property
market
C omposed 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
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
arrivals. The biggest obstacles in attracting foreign tourists to the country are poor infrastructure four years. Currently, more than 70 hotel projects
and inadequate access—making it expensive and difficult to travel to and within the country— are in the pipeline in anticipation of the estimated
which President Duterte is addressing aggressively through his proposed Build! Build! Build! arrival of 10 million foreign tourists by 2020, as
program. well as an increase in domestic tourists.
This ambitious agenda will see $160B to $180B go into implementing 75 flagship projects, More international hotel groups are opening
including six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four in the Philippines. Grand Hyatt, Mandarin
seaports. If successful, Build!Build!Build! will generate more jobs, encourage countryside Oriental, Sheraton, Westin and Hilton are just
investments, and make the movement of goods and people more efficient, possibly ushering some of the global brands opening in the next two
in a “golden era” of economic development. to three years. Property developer Megaworld is
With this effort, the Department of Tourism is confident that it can double the number also poised to bring in Marriott’s Ritz-Carlton into
of foreign tourist arrivals and increase tourism revenue by 90 percent by 2022. This program the country.
is also a worthy complement to the hospitality boom the Philippines is presently enjoying. Sudden growth of homegrown brands. Ayala’s
Hotel pipelines over the next five years show a rapid construction of hotels and mixed- Seda Hotels is opening seven properties over the next
use developments throughout the country by both local and foreign investors. With so three years. Filinvest’s Grafik Hotels are now ready
much going on at the same time, one has to wonder if we have enough trained laborers to for roll-out. Maverick hotel brands like Discovery
complete all these hospitality and infrastructure projects and the skilled service providers Group, Bellevue, Astoria, and Hennan Resorts are
once it all opens. building a series of lone hotels in key cities and resort
Another pressing concern is the possible impact this rapid development will have on the destinations.
environment. A strong economy is sustainable only if it integrates economic, social and
Branded Residences: the marriage that
environmental well-being. As of printing, the government is a few days away from making
works. With rising prices of real estate, we’re seeing
a decision on whether to temporarily or completely shut down popular beach destination more hotels integrated into branded residences,
Boracay to allow for the island’s rehabilitation due to environment problems, and if so, some with leaseback options. It’s no longer just
for how long. But Boracay is far too reliant on tourism to take such extreme measures— a luxury play—we have seen a roll-out of upper
the negative impact a closure will have on the labor force and the economy does not bear and mid-scale projects as developers seek higher
repeating. Plus, we risk turning foreign travelers to other island destinations like Bali and premiums on residential sales and less property
Phuket instead of other places in the Philippines. What also happens to hotel and business management while addressing the needs of its
owners who have abided by environmental and zoning laws? Should we all consider them buyers for quality construction, design and service,
collateral damage? along with potential investment returns in case of
Whether or not a Boracay closure takes place, the government still needs to find a balance resale or from a rental pool.
between rapid infrastructure development and protecting the island’s natural resources—and
Hostel hybrids emerge in Southeast Asia.
that of the country’s remaining 7640 islands. Not just for backpackers, the new hostels or
Regardless of the outcome, Boracay’s present situation can be a reference point as well “poshtels” are a hybrid between hotels and hostels
as a cautionary tale of what not to do, but it can also be a case study for the creation that offer private and dorm rooms with chic design
of innovative solutions that promise the ultimate reconciliation of environmental and and social experiences for today’s millennial travelers.
economic progress. Generator Hostels and Meininger led the reinvention
Cyndy Tan Jarabata of hostels in Europe. The trend is now spilling over into
Asia with Lubd in Thailand, 5 Footway Inn in Singapore
*According to the National Mapping and Resource Information Authority or NAMRIA in 2016 and Junction Hostels in the Philippines.
tourism indicators In focus:
Boracay
Top 5 Boracay, along with Cebu, and Palawan, were
VisitorArrivals named the best islands in the world by the Conde
januar y- D e c emb er 2017 Nast Traveler’s Readers’ Choice Awards 2017.
Boracay ranked first in the survey, while Cebu and
Top 3 Busiest Airports Palawan placed second and third, respectively. More than
n the Philippines 300,000 travelers took part in the survey.
Despite this recognition, Boracay, famous for
2017 its long, wide beach and powder-like sand was
recently targeted by President Duterte, who called
01 Korea 02 China 03 USA 01 Ninoy Aquino it a cesspool, due to the island’s inefficient sewerage
1,607,821 968,447 957,813 International Airport system. Several beachfront establishments have
(Manila) - 42,022,484 also been accused of violating easement rules. The
interior, environment and tourism departments have
02 Mactan-Cebu recommended the closure of Boracay for one year to
International Airport facilitate its rehabilitation.
(Cebu) - 10,050,940 Despite these environmental issues, two casino
operators—Macau’s Galaxy Entertainment Group and
03 Francisco Bangoy Resorts World Manila—are coming in, while another
International Airport major hotel group—Double Dragon’s Hotel 101—is
04 Japan 05 Australia
584,180 259,433 (Davao) - 1,933,832 opening in the island.
Palawan
Total Tourist Arrivals Total Tourist Arrivals Apart from ranking third in the list of Conde Nast
Januar y – D e c emb er 2016 Januar y – D e c emb er 2017 Traveler’s best islands in the world, Palawan was
also cited by a New York-based magazine as one of the
6.6
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
Million 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
9.8 %
and performing arts.
from 2016 M ACTAN , CEBU
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
Increasing Chinese Market P30 billion worth of investment will be poured into
South Koreans may have remained the Philippines’ developing a 28.8 hectare township called the Mactan
top tourism market in 2017 with arrivals at 1.6 million Newtown Center by MegaWorld, which will have
(Boracay and Cebu being the most popular destina- luxury condominiums, cyberpark, hotels, retail and
tions), but Chinese tourists are fast catching up—ar- entertainment centers.
rivals showed a 43% growth from 2016. DOT attributes Major hotel development projects are expected to
this to improved relations between the Philippines be completed in the next few years, including The
and China, added air routes and the Visa Upon Arrival Sheraton Cebu Mactan Resort and Residences (2019),
(VUA) option for Chinese nationals. Dusit Thani (2019), Filinvest’s Grafik Resort Mactan Cebu
DOT projects 7.4 million foreign tourist (2020), and Aruga Hotel by Rockwell (2021). Holding
company Udenna is also building Emerald Casino Resort,
arrivals for 2018.
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.
Hotels in the Pipeline hotel names LO C A T ION KEY s TARGET OPENING DATE Metro Manila Grand Hyatt Manila BGC, Taguig 461 Feb 2018 Seda Hotel BGC Tower 2 BGC, Taguig 342 2018 dusitD2 The Fort BGC, Taguig 245 2018 Seda Arca South FTI Complex, Taguig 265 2018 Hotel 101-Fort BGC, Taguig 606 2020 Hop Inn Alabang Muntinlupa City 168 Jul 2018 Lub d Makati Avenue, Makati 230 Feb 2018 Seda Suites City Gate Medical Center, Makati 293 2019 Seda Circuit Makati Makati 255 2019 Mandarin Oriental Manila Makati 275 2020 Somerset Salcedo Village Salcedo Village, Makati 270 2021 Somerset Valero Makati Salcedo Village, Makati 184 2021 Citadines Benavidez Makati Legaspi City, Makati 145 2023 NÜWA Hotel (Formerly Crown Towers Hotel) City of Dreams, Parañaque 254 Jan 2018 Hop Inn Asean Aseana City, Parañaque 196 Apr 2018 Westin Manila Bayshore Resort World Bayshore, Parañaque 600 2018 Seda Bay Area Aseana City, Parañaque 350 2019 Hotel Okura Manila Bayshore Resort World, Parañaque 380 2020 Holiday Inn Express Newport City, Pasay 712 Mar 2018 Savoy Hotel Manila Newport City, Pasay 684 2018 Citadines Bay City Central Business Park, Pasay 212 Q2 2018 Hotel Okura Manila Resorts World Newport City, Pasay 191 Q4 2018 Hilton Manila Resorts World Newport City, Pasay 357 2019 Sheraton Manila Resorts World Newport City, Pasay 350 2019 Ascott DD Meridian Park Meridian Park, Pasay 350 2021 Hop Inn Tomas Morato Quezon City 167 Dec 2018 Seda Hotel Ayala North Exchange Quezon City 312 2019 Grafik Cubao Cubao, Quezon City 300 2022 Citadines Greenhills Manila Greenhills, San Juan 280 2022 CALABARZON/Tagaytay/Batangas Quest Tagaytay Tagaytay 165 Q2 2018 B Hotel Nuvali Sta Rosa, Laguna 100 2021 Dusit Princess Lipa City, Batangas 152 2021 Baguio/La Union/Pampanga Holiday Inn Baguio City Centre Holiday Inn Baguio City Centre 185 2018 Bellevue Baguio Bellevue Baguio 37 2019 dusitD2 San Juan Resort dusitD2 San Juan Resort 174 2019 Microtel by Wyndham Microtel by Wyndham 135 Q4 2018 Quest Plus Pampanga Quest Plus Pampanga 250 Q4 2020 Palawan Seda Lio in El Nido, Palawan El Nido, Palawan 153 Q4 2018 Cebu/Bohol The Henry Panglao Bohol 40 Q4 2019 Bellevue Bohol 2 Bohol 150 2020 Seda Cebu Business Park Cebu Business Park, Cebu City 301 Q3 2018 Dusit Princess Cebu North Reclamation Area, Cebu City 295 2018 Citadines Cebu R. Duterte St., Cebu City 180 Q1 2019 Seda Central Bloc Cebu I.T. Park, Cebu City 214 2020 Lyf Cebu City Base Line Center, Cebu City 180 2021 Somerset Gorordo Cebu Business Park, Cebu City 155 2021 Hop Inn Cebu Cebu Business Park, Cebu City 214 2021 Holiday Inn Cebu Cebu Business Park, Cebu City 180 2021 TRYP by Wyndham Cebu City 250 2021 Sheraton Cebu Mactan Resort Mactan Island, Lapu-Lapu City 250 2019 Dusit Thani Mactan Cebu Mactan, Lapu-Lapu City 271 2019 Emerald Resort and Casino Mactan Island, Lapu-Lapu City 834 2020 Crimson Suites Mactan Mactan Island, Lapu-Lapu City 228 Q4 2020 Grafik Mactan Mactan Island, Lapu-Lapu City 322 Q4 2020 Rockwell Aruga Resort Mactan Island, Lapu-Lapu City 300 2021 Microtel by Wyndham Mactan Mactan Island, Lapu-Lapu City 180 2021 Holiday Inn Mactan Seagrove Mactan Island, Lapu-Lapu City 200 2022 Boracay Crimson Resort Station Zero, Boracay 192 Feb 2018 Hotel 101 Resort-Boracay Boracay New Coast 1001 Q4 2020 Iloilo/Bacolod/Dumaguete Marriott Courtyard Iloilo Business Park, Iloilo City 316 May 2018 Citadines Iloilo Iloilo City 120 2019 Seda Capitol Central Bacolod City 154 Jan 2018 Quest Hotel and Conference Center Dumaguete City 180 Q4 2020 Davao dusitD2 Hotel Lanang Business Park, Davao City 120 Q4 2018 Microtel by Wyndham Davao City 80 Q2 2019 Hotel 101-Davao Davao City 519 2020 Citadines Riverside Davao Davao City 250 2021 Dusit Thani Lubi Plantation Gulf 162 2021
Market Updates: What’s in and what’s hot
HOT: Cebu’s MCIA to open HOT: Tourist spending up
Terminal 2. Mactan Cebu
International Airport’s new terminal will
40 percent Visitor receipts
surged 40.71 percent in the first 10 months
about tajara
finally be unveiled in the Q2 of the year. of 2017, driven by the influx of higher-
The new terminal will encompass a total spending Chinese tourists into the country.
space of 65,000 square meters, and will Based on DOT’s data, visitor receipts from
increase the Cebu airport’s passenger January to October 2017 amounted to
capacity to 12.5 million. P274.35 billion, up from P194.97 billion
in the same period last year. In October
HOT: Conde Nast alone, visitor receipts jumped 88.67 percent
Traveller names to P31.12 billion from P16.5 billion in the
Boracay, Cebu and previous year. The average daily expenditure
Palawan the world’s best for this month stood at P6,862.03. Chinese
islands of 2017. tourists largely contributed to the growth
The popular Philippine destinations were in visitor receipts, as China bagged the top
named the world’s best islands in 2017 in spending market for the second consecutive
Conde Nast Traveller’s Readers Choice month, with receipts amounting to about
Awards. Votes were garnered from P9.95 billion for October. Korea followed
300,000 travelers worldwide. China, registering around P9 billion worth TAJARA is a leading hospitality
of spending. The US placed third with consulting and development
Forbes Travel Guide cites 12 almost P2.48 billion spent, followed by company in the Philippines
PH hotels among the world’s Taiwan with an estimated P2.28 billion working with clients throughout
Asia. Its in-depth knowledge
best. The prestigious Forbes Travel spending and Japan with P1.50 billion.
and experience in mainstream
Guide cited 12 Philippine properties In addition, the average length of stay of
and emerging destinations guide
in the 2018 Star Awards. Three hotels tourists in the country was recorded at 7.87
owners and investors in making
were given five-star ratings, namely: nights. Average per capita expenditure
strategic decisions and provide
Marco Polo Ortigas Manila Sky Tower of visitors for the month of October was local intelligence to facilitate
at Solaire Resort & Casino and Nüwa pegged at P54,004. the projects’ development
Manila. Fairmont Makati, Hyatt City of process. TAJARA handles rollout
Dreams Manila, Nobu Hotel Manila, Oversupply in the Philippines’ plans for independent and chain
The Peninsula Manila, Raffles Makati, booming casino sector is hotels taking on the projects’ full
and Sofitel Philippine Plaza were each thriving. Overinvestment in the development cycle from acquisition,
given a four-star rating, earning praise for Philippines’ thriving casino sector can technical services, marketing,
their impeccable facilities and excellent become a reality as investors chase lucrative hotel operator selection, project
service. Makati Shangri-La and Pan returns in Asia’s fastest-growing gaming hub management, pre-opening and
Pacific Manila also received a nod with a after Macau and Singapore. The government asset management.
“recommended” rating. hopes to draw millions of foreigners to Cyndy Tan Jarabata has diverse
casino resorts in Entertainment City, a experience extending 20 years
Andrew Tan to bring Ritz- 100-hectare area that aims to mimic Las in the hospitality, leisure and
Carlton Hotel to Philippines. Vegas and Macau. residential development. She heads
Tycoon Andrew Tan is set to bring business development, acquisition,
in the Ritz-Carlton hotel brand to PAL planning P20 billion operations and asset management.
the Philippines, rebranding the addition to NAIA Terminal 2.
existing Maxims Hotel, an-all suite Philippine Airlines is planning to build
accommodation at Resorts World Manila, a P20 billion passenger terminal to
to appeal to the increasing number of complement its hub at the Ninoy Aquino
casino high-rollers, such as Taiwanese International Airport (NAIA) Terminal 2.
and Chinese players, coming into the The projected 89,000 square-meter terminal
country. will be designed to handle 12 to 15 million
passengers annually, and will include multi-
More economy and budget level parking for 1,000 vehicles, a new cargo
For hotel development and
hotels in the Philippines. terminal, and ground service facilities.
hospitality consulting,
The Erawan Group Plc., Thailand’s leading contact us:
hotel developer, is allotting P4 billion to HOT: 4 PH international
build 12 to 15 hotels under the Hop Inn airports recommended
Cyndy Tan-Jarabata
Brand in Metro Manila and Cebu over the by travelers as Top 25 Best
president
next five years. The company is opening Airports in Asia in 2017.
cj@tajaraleisure..com
a hotel in Aseana, in Alabang and another The list, published by Sleeping in Airports in
+63917 8387238
in Quezon City this year. Similarly, Red October 2017, cites the international airports
Planet Hotels is planning to open five in Iloilo, Mactan-Cebu, Davao, and Clark
more hotels across the country this year, as among the Best Airports for Overall
increasing the total number of Red Planet Experience based on the following criteria: Tyrone Tan
hotels to 18. Local brand Go Hotels is set comfort (gate seating and availability of rest vp for project development
to open four more properties across the zones); services, facilities and things to do; tyrone@tajaraleisure.com
country. Double Dragon Properties Corp. food options; immigration and security; +63917 5603885
has just broken ground on Hotel 101-Fort customer service; cleanliness; navigation
at Bonifacio Global City and is expected and ease of transit; and sleepability (for
to open other 101 hotels in Davao, Bohol airport stays by choice or due to layover or Tel: +632 8242231
and Boracay by 2020. weather delays). www.tajaraleisure.comYou can also read
