Study: Hotel sector rises as foreign, local tourists embark on travel anew


TOURISM is back on its feet as the country begins to welcome new foreign tourists and domestic travelers are getting out and exploring again after being stuck at home for the past two years due to lockdowns that have impacted hotel occupancy and leisure spending in nationwide.

Based on the latest report from Colliers Hospitality Insights, hotel occupancy in Metro Manila averaged 47 percent in the first half of 2022, up from 44 percent in the second quarter of 2021.

Average daily rates (ADRs), on the other hand, rose 5.4 percent from 4 percent in the two reporting periods.

“The Philippines are beginning to attract tourists back to their shores. We are seeing an increase in arrivals from abroad as improving consumer confidence drives the domestic market,” said Joey Roi Bondoc, Colliers Philippines associate research director, during their webinar on Thursday.

Citing data from the Department of Tourism (DOT), he revealed that the number of foreign arrivals hit 814,144 from January to June this year, a whopping 1,299 percent increase from the 58,177 international tourists booked a year ago.

The growth in foreign arrivals could be attributed to the easing of travel restrictions for foreigners from February 10, including the removal of Covid-19 testing requirements before entering the country.

This surge in tourism in the country was also due to the gradual return of business travel, particularly among investors conducting due diligence.

The growing willingness of local guests to spend their leisure time is likely to have supported the strong demand in the staycation market from April to June.

According to Colliers’ study, the Metro’s tourism surge has been coped well with a robust accommodation supply, with the delivery of an additional 834 new rooms to the total stock in the first six months of this year following the expansion of the Kabayan Hotel (307 rooms) in Pasay City, Lime Resort Manila (305 rooms) and Hop Inn opened in Ortigas CBD (231 rooms).

With the DOT anticipating 2 million foreign arrivals by the end of 2022, up from 163,879 last year, the hotel sector’s recovery will continue in the second half, providing a solid base for 2023 and beyond.

Because of this, the professional services and investment management firm forecasts that year-end occupancy will surpass 50 percent, driven by holiday-related spending and the return of Filipino workers from overseas.

Colliers also expects ADRs to increase 8 percent for the full year, supported by growth in foreign arrivals and domestic market expansion.

This could be done with an estimated 1,830 rooms coming online by the end of 2022 as Red Planet Hotel The Fort (245 rooms) and Lansons Place Hotel (250 rooms) are among the hotels set to be completed soon.

With the ongoing vendetta, the average completion of rooms is 2,650 per year through 2024, with the Bay Area and Quezon City accounting for more than 60 percent of new supply, including upcoming openings of foreign-branded hotels, namely Ibis, Pullman, Lansons Place, Westin and Mandarin Oriental.

“Economic growth in Q1 higher than expected [first quarter of] 2022 and further easing of travel restrictions should support the sector’s recovery beyond 2022. However, hotel operators should consider the opposite effects of rising inflation and peso depreciation,” Bondoc said.

He also advised them and other stakeholders to prepare for the gradual resumption of MICE or meetings, incentives, conferences and exhibition events; Create flexible packages for business and leisure travelers; and leverage the efforts of both the public and private sectors to attract foreign tourists, while improving the country’s tourism infrastructures such as airports and expressways.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *