Gone are the days when foreigners are unfamiliar with the country’s white sand beaches and diving spots. Today, the Philippines is known all over the world for its rich biodiversity, beautiful islands, and hospitable people. Thanks to aggressive marketing campaigns of the Department of Tourism (DOT), the industry is booming, making it even more attractive to foreign investors.
DOT, in fact, surpassed its target of 6.5 million tourists. Last 2017, there were a total of 6,620,908 international tourists who visited the country—marking an 11% growth from the previous year.
According to the United Nations World Tourism Organization (UNWTO) World Tourism Barometer, the country even exceeded the average tourism growth of Asia and the Pacific (6%) and Southeast Asia (8%).
Indeed, there has never been a more perfect time for starting a business in the Philippines and investing the country’s tourism industry. Just let the numbers speak for itself.
Positive Projections for the Coming Years
There has never been a more opportune time to start a business in the Philippines. Technological advancements make it easier and more affordable for people to travel and experience the world, prompting a travel revolution that the Philippines is taking advantage of.
Based on the current growth in the number of international tourist arrivals in the Philippines, NTDP projects that by 2018, there will be a total of 7.4 million international tourist arrivals in the country.
However, DOT is not resting its laurels on the travel revolution. The government is making aggressive efforts to market the country to increase tourism revenues.
Apart from strengthening the popular “It’s More Fun in the Philippines” campaign, DOT has also implemented a new program, “Bring Home a Friend,” where Filipinos or Philippine expats can get a chance to win a condo unit, a car, or Duty Free GCs by simply inviting foreigners to visit the country.
More importantly, the government is continuously working towards improved air routes, more cruise calls, travel infrastructure development, travel facilitation, and product development to encourage foreign investors to start a business in the Philippines.
Top Visitor Markets
South Korea remains the top market source for tourism in the Philippines, making up almost 25% of the total international tourist arrival in 2017.
Since there has been an improved tie between China and the Philippines, additional air routes, and Visa Upon Arrival (VUA) option, there has been a surge of Chinese tourists last year. China has taken over USA’s spot and is now the top third source of tourists.
Japan, Australia, Taiwan, Canada, Malaysia, Hong Kong, and India are also significant source markets for tourism in the Philippines.
Tourism Investment Opportunities
Starting a business in the Philippines can help the country accommodate the growing number of tourists. The government is incentivizing foreign investment as well under Executive Order No. 63 such as the Special Investor’s Resident Visa (SIRV). Foreign investors can also take advantage of fiscal incentives and exemptions when they invest in tourism-related businesses.
Hotels, resorts, and other accommodation facilities outside Metro Manila need to be built for both domestic and international travelers. Investments in the air, water, and land transport solutions are also welcome to make tourist spots and cities more accessible for travelers.
Another investment opportunity is in building tourism estates outside the metro such that it should be ripe for development of a resort complex including accommodations, food and beverage outlets, convention, sports and recreational centers, commercial outlets, and more.
You can also invest in the conservation, preservation, and restoration of historico-cultural heritage projects that are recognized by the National Historical Institute and/or the National Museum.
Bottom Line
The Philippine tourism industry is another engine of growth that foreign investors shouldn’t ignore. DOT Undersecretary for Tourism Regulation, Coordination and Resource Generation (TRCRG), Alma Rita Jimenez, told investors, “You’ll have the confidence that when you put your resources in our shores, and that you can park your funds with us for a long term because it will give you steady and stable returns.”
Want to start a business in the Philippines? Click here to contact EnterPH today.
References:
http://web.tourism.gov.ph/news_features/dot_high.aspx
http://e-services.tourism.gov.ph:8080/didcs/Static%20Documents/dec2017_table2.pdf
www.visitmyphilippines.com/images/ads/29f161ac6c18c68ec3f85c024c49f50c.doc
http://web.tourism.gov.ph/news_features/MSMEs.aspx
Rocky Chan is a lawyer and business consultant who excels in corporate formation, immigration procedures, and client relations. In the last 7 years, he honed his craft in the field of foreign investment consultancy.
