HOTEL ACCOMMODATIONS

BASIC INDUSTRY INFORMATION MAJOR PLAYERS

2015 Revenues
The Philippines is an archipelago of roughly 7,641 islands, Hotel Chain (Php Million)
Rank
naturally blessed with pristine sandy beaches of white, pink, Sureste Properties, Inc.
10,527 212
gray and brown, and dappled with active volcanoes that are a (Bloomberry Resorts / Solaire Resort & Casino)
sight to see. Located within the center of global marine Makati Shangri-La Hotel & Resort Inc. 4,694 464
biodiversity, these islands are home to exotic wildlife, colorful EDSA Shangri-La Hotel & Resort Inc. 2,093 835
fauna and flora, parched with centuries-old churches, forts and Manila Peninsula Hotel Inc. 1,677 994
walled cities that are testaments to the country’s long history, Top Gross Revenue Earners in 2015 (Source: 2016 Top 1000 Corporations, BusinessWorld)
including UNESCO World Heritage Sites. Tourists enjoy vibrant
fiestas, anywhere-bargain novelty and branded shopping, PERFORMANCE
cosmopolitan and fine dining, and many more remarkably 2016 2015
exciting attractions. And with good reason, The Philippines is Foreign Arrivalsa 5,967,005 5,360,682
now considered a favoured and emerging tourism destination,
Hotel Investmentsa Php 6.547 Billion Php 3.657 Billion
recently brought about with its successful hosting of APEC (BOI-registered)
2015, Miss Universe 2016 and the ASEAN 2017 - 50th Hotel Rooms 55,638* 43,515
Anniversary. The Tourism Accommodation facilities segment Total No. of Rooms 289,649* 216,088
underwent an expansion in room capacity since 2012 in order Total Tourism
to absorb market growth, with total number of accredited 5,224,000 4,971,000
Employment
rooms reported by the DOT recorded at 289,649 by end 2016. Accommodations 1.756 million 1.743 million
Employment (33.61% of Tourism) (35.06% of Tourism)
2016 DOT Accredited Accommodation Establishments Occupancy Rate** 66.08% 66.95%
TDGVA Total GDP Php1,243.474 Bil. Php1,093.433 Bil.
No. of No. of
Region % Share RANK Contribution (+13.7%) (+14.8%)
Establishments Rooms
Region 4-B 267 206,051 71. 14% 1 Top Foreign Markets 2016 Top Spenders 2016
NC R 150 32,708 11. 29% 2 1. Korea 1,475,081 (24.72%) 1. Korea Php74,099.34 Million
Region 7 197 14,100 4. 87% 3 2. U.S.A. 869,463 (14.57%) 2. U.S.A. Php34,358.20 Million
Region 6 115 5,308 1. 83% 4 3. China 675,663 (11.32%) 3. Japan Php16,384.10 Million
Region 4-A 122 5,248 1. 81% 5 4. Japan 535,238 (8.97%) 4. Australia Php12,062.54 Million
Region 9 85 3,410 1.17% 6 5. Australia 251,098 (4.21%) 5. China Php11,638.71Million
Region 3 61 3,347 1.16% 7
Region 10 56 3,185 1.10% 8 Top Foreign Tourist Destinations (2016)
Region 1 204 2,960 1.02% 9 1. Cebu 1,875,51 8. Davao del Sur 125,455
Region 2 159 2,687 0.93% 10 2. Boracay Island 868,7665 9. Laguna 96, 705
Region 5 96 2,661 0.92% 11 3. Pampanga (+Clark) 710,645 10. Batangas 60, 735
Region 11 45 2,618 0.90% 12 4. Camarines Sur 495,978 11. Benguet (+Baguio) 59, 286
CAR 86 2,330 0.80% 13
5. Albay 440,796 12. Zambales (+SBMA) 45, 820
Region 12 54 1,757 0.61% 14
6. Palawan 386,084 13. Davao del Norte 40, 452
Region 13 56 1,181 0.41% 15
7. Bohol 266,313 14. Iloilo 33, 866
Region 8 7 98 0.03% 16
Total (Top 15 Destinations) 5,504,429
TOTAL 1,760 289,649 100% ALL Destinations 7,026,255
Region 4-B1, majority in resorts, now provides the most in Top Domestic Tourist Destinations (2016)
accredited absorptive capacity for overnight staying tourists. In 1. Cebu 2,288,571 8. Iloilo 1,213,098
2016, it had 206,051 rooms (71.14%), followed by NCR1 with 2. Camarines Sur 1,915,148 9. Laguna 1,209,243
32,708 rooms (11.29%), then Region 72 with 14,100 rooms 3. Zambales (+SBMA) 1,812,665 10. Davao del Norte 976,614
4. Davao del Sur 1,751,568 11. Rizal 919,625
(4.87%), Region 61 with 5,308 rooms (1.83%), and Region 4-A1
5. Albay 1,376,881 12. Pampanga (+Clark) 902,219
with 5,248 rooms (1.81%) complete the top 5 rankings. For the
6. Benguet 1,330,605 13. Boracay Island 813,302
entire Philippines, of all types of accommodation facilities, the
7. Batangas 1,213,521 14. Bohol 731,915
DOT has granted accreditations, renewed annually, to a total Total (Top 15 Destinations) 19,173,461
of 482 hotels (55,638 rooms)2. ALL Destinations 35,304,340
Foreign Visitor Profile
Description 2016 2015
Mode of Travel 98.79% (air) 1.21% (sea) 98.7% (air) 1.3% (sea)
1 Region 4-B : (MIMAROPA) Oriental & Occidental Mindoro, Marinduque, Romblon and Average Age 38.64 years 41.62 years
Palawan provinces; NCR : National Capital Region or Metro Manila; Region 7 : Cebu, ALoSb (nights) 9.29 9.89
Bohol and Negros Oriental provinces; Region 6 : Marinduque, Oriental Mindoro, Occidental
Mindoro and Palawan provinces; Region 4-A : (CALABARZON) Cavite, Laguna, Batangas ADEc (US$) 100.23 107.44
and Quezon provinces. Purpose Holiday (57.9%) Friend/Kin (8.7%) Holiday (56.4%) Friend/Kin (8.8%)
2 A new 5-star rating system project assisted by the Asian Development Bank and the Travel Arrangement Independent (90.2%) Package (9.8%) Independent (93.6%) Package (6.4%)

Government of Canada has been introduced. The same system is used by Belgium, Visit Frequency First (46.6%) Repeat (53.4%) First (43.5%) Repeat (56.5%)
Denmark, Greece, Italy, Malta, Netherlands, Portugal, Spain, Hungary, Germany, Austria,
Switzerland, Great Britain and Ireland. * DOT-Accredited Accommodation Rooms ** in Metro Manila hotels only
a – January-to-October 2017 foreign arrivals increased 11.54% over the same period
in Prepared by:4,908,017
2016 from Infrastructure and Services
to 5,474,310; BOI Industries Service (ISIS): –2015
Tourism Investments BOI =
As of December
PhP4,833.21 Million; 2016 = Php7,627.06 Million; Php6,302.92 Million 2017
Page 1 of 3
b – Average Length of Stay c – Average Daily Expenditure
Seasonality of Foreign Tourist Arrivals Tourism Direct Gross Value Added (TDGVA), 2006-2016

Of the Tourism Characteristic Products (TCP) defined in the

From 2012 to 2016, foreign tourist arrivals have consistently
registered highs during the peak months of January, February, July
and December, with total annual growth at 9.07%, 9.56%, 3.25%
and 11.31% Year-on-Year.
Hotel Occupancy (Metro Manila)
Philippine Tourism Satellite Account (PTSA), for 2016,
accommodations (23.1%) followed by shopping in general (11.3%),
miscellaneous TCPs (11.2%), transport services (10.7%),
entertainment and recreation (9.1%), travel agencies and other
reservation services (7.1%) and food and beverage services (3.9%)
provided the bulk of direct value-added contribution to the
economy, producing over 70% of all TDGVA economic activities
since 2011.

WAGES

Accommodation and Food Service Activities, as of July 2016

Hotel Personnel Average Monthly Wage Rates
Accountants and Auditors Php21,885.00
Accounting and Bookkeeping Clerks 13,705.00
Receptionist and Information Clerks 11,560.00
Service Crew 10,841.00
Housekeepers and Related Workers 10,906.00
Cooks 12,470.00
Waiters, Waitresses and Bartenders 10,953.00
Helpers and Cleaners 10,323.00
Unskilled Workers except Janitors,
9,449.00
Source : DOT Messengers and Freight Handlers
From 2006 to 2016, Metro Manila hotel guests chose to stay more SOURCE : PSA Occupational Wages Survey 2016
in De Luxe hotels as shown with occupancy rates indicating a
relatively flat & steady linear trend vis-à-vis the more downward- Air Service Agreements (2017)
sloping trends for other hotel types. As of end 2017, 69 air services agreements were entered into by
Metro Manila (Number of Rooms) the Philippines. As of 2017, the country grew seat capacity 221%
Classification since 2010, as total entitlements reached 269,640,904 with
1988 2016 % Change
DE LUXE 3,841 7,458 +94.17% Philippine carrier allocations growing to 141,648,832 seats from
First Class 1,048 964 -8.02% just 64,395,344 in 2010.
Standard 867 4,598 +430.33%
Economy 1,068 440 - 142.73%
TOTAL 6,824 13,460 97.25%

As a whole, hotel occupancy rates growth trend in Metro Manila

had been in relative decline even with an increase of 6,636 rooms
(+197.36.6%) by the end of 2016. Comparing globally, Metro
Manila’s hotel occupancy of 66.1% in 2016 vis-à-vis the rest of the
world3, can be described as “similar with the rest of the world”.

3
It is only 0.7% off from Asia-Pacific’s 67.8%, better than the Americas’ 65.8%, a mere 1.6%
below Europe’s 68.7%, and significantly better than the Middle East/Africa’s 60.27% level of
occupancy; though just 0.5% below Southeast Asia’s 67.6% mark for the year 2016. ~~
Source : STR Global Limited – “Global Hotel Review (Media Version)” – Performance for the
Month of July 2017.

Prepared by: Infrastructure and Services Industries Service (ISIS) – BOI

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As of December 2017
INDUSTRY ROADMAP SECTORAL BINDING CONSTRAINTS
• Infrastructure and logistics
The Philippine National Tourism Development Plan (NTDP) • Room gaps in identified tourism destinations
provides the strategic framework and action plans for the MAJOR PLAN OF ACTIONS
further development and growth of the industry. Among the major programs included in the NTDP are the following:
1. Improving access and connectivity:
Vision, Goals, Targets • Rapidly expand capacity of secondary international airports
• Expand connectivity between Philippines and its key
The DOT achieved its targets of 5-5.5 and 6 million foreign growth markets
tourist arrivals in 2015 & 2016, exceeding average stay of • Implement a strategic access infrastructure program
9.2 nights (actual=9.29), and surpassed spending Php4,383 between secondary international airports and strategic
or US$97 per day (actual=US$100.23). The updated NTDP destinations
2016-2022 projects 12 million foreign tourists and 89 2. Developing and marketing competitive tourist destinations and
million domestic tourists by 2022. products:
• Implement a sustainable tourism destination infrastructure
Philippine Advantages program
• Develop diversified tourism products that engage local
 Abundant natural resources / Diverse & unique tourism communities
attractions • Implement a PPP-based mandatory tourism enterprise
 Diverse cultural heritage accreditation system and facilitate tourism investment and
 Unparalleled hospitality and excellent customer lower cost of business
service • Safeguarding natural and cultural heritage and vulnerable
groups
 Highly skilled and English-proficient manpower pool
• PPP-based marketing strategy and action plan
3. Improving tourism institutional, governance and human
Government Support
resource capacities:
 Enabling laws/policies • Institutionalize roles and responsibilities of DOT and LGUs
 Plans/Programs/Strategies – related to roadmap • Develop a competent well motivated and productive
tourism workforce
implementation
• Improve governance in the area of safety, security and in
 Market, technical and R&D support dealing with tourists
 Incentives
Top Investment Opportunities:
The anticipated growth in international visitor arrivals and domestic
Tourism-Related PPP-Projects travel movements is expected to create a corresponding increase in
capacity requirements and demand for new products, facilities and
Project Name Status
services such as the following:
Cavite-Laguna (CALAX) Expressway Project 56.16% (as of November-2017)
Daang Hari-SLEX Link Road Project Opened July 25, 2015 1. Tourist Accommodation Establishments
C-5 Modern Bus Transit System Project Approved (June 2015) 2. Tourist Enterprise Zones development
Integrated Transport System (ITS) – South Pre-Construction Activities 3. Health and wellness, and retirement facilities (e.g. spas, tertiary
Terminal Project (Awarded - January 2016) hospitals, ambulatory clinics, villages)
PPP Terminated 4. Tourist transport services for land, sea and air travel
Dev’t and O&M of Bacolod-Silay Airport
(for ODA & GAA funding)
5. Convention and exhibition facilities or “Meetings, Incentives,
Dev’t and O&M of New Bohol (Panglao) Airport ‘- do -
Conventions and Exhibition” (MICE) facilities
Dev’t and O&M of Davao International Airport ‘- do -
Dev’t and O&M of Iloilo International Airport ‘- do - Niche Market Opportunities:
Dev’t and O&M of Laguindingan Int'l Airport ‘- do - 1. Nature-based tourism
Laguna Lakeshore Expressway-Dike Project Failed Bidding / Deferred 2. Sun & Beach tourism
Pre-Construction Activities 3. Cruise & Nautical tourism
LRT Line 1 Cavite Extension and O&M
(Common Station ceremony) 4. Cultural and Education tourism
LRT Line 2 Operation & Maintenance (O&M) Under Review by NGA
5. Leisure & Entertainment tourism
(Ortigas-Taytay) LRT Line 4 Project Under Review by NGA
6. Diving and Marine Sports tourism
LRT Line 6 Development and O&M Under Review by NGA
Mactan-Cebu Int’l Airport Passenger Terminal 75.52% as of October 2017 Industry Associations
Metro Manila Skyway Stage 3 31.56% as of September 2017
Metro Rail Transit (MRT) Line 7 10.35% as of October 2017  Tourism Congress of the Philippines
NAIA Development Project NEDA Approved (Sept-2016)
 Philippine Hotel Owners Association Inc. (PHOAI)
NAIA Expressway Project (Phase II) Operational (December 2017)
 Hotel & Restaurant Association of the Philippines (HRAP)
NLEx-SLEx Connector Road Pre-Construction Activities
 Hotel, Resort and Restaurant Association of Cebu Inc. (HRRAC)
O&M Commuter Line for PPP
 Philippine Tour Operators Association of the Phils. (PHILTOA)
North-South Railway Project (South Line)
(March 2017)
 Philippine Travel Agencies Association Inc. (PTAA)
37.98% Complete
Southwest Integrated Transport System (ITS)
(5-November-2017)

Page 3 of 3 Prepared by: Infrastructure and Services Industries Service (ISIS) – BOI
As of December 2017