Tourism has staged a comeback as lots of Filipinos are on a revenge travel mode to make up for the lost time in the past three years which was sidelined by the pandemic.
Major property management firms JLL Philippines and Colliers Philippines painted a rosy picture as the hotel industry is experiencing a rebound as manifested by the influx of tourists.
“Post-pandemic recovery of hotels in Metro Manila is accelerating, with 4 million tourist arrivals in the first nine months of 2023. This is nearly double the 2.65 million tourist arrivals from February to December 2022, and near the Department of Tourism [DOT] year-end target of 4.8 million. Tourism Secretary Christina Frasco stated that these arrivals have already contributed P316 billion [$5.7 billion] to the economy,” said JLL Philippines in its third quarter report posted on its website.
“The reinvigorated hotel sector remains as one of the most vibrant property segments in the country. Foreign arrivals are likely to breach the Department of Tourism’s target for 2023 while the domestic market continues to lift occupancies and daily rates. The return of business travelers and in-person corporate events have also been propping up the demand for meetings, incentives, conferences, and exhibitions [MICE] facilities,” said Colliers Philippines research director Joey Roi Bondoc.
During a lean season, JLL Philippines observed that Q3 2023 hotel occupancy levels saw a slight decline of -6 bps quarter-on-quarter to 70.3 percent, while room prices had incrementally increased. On the supply side, hotel stock is expected to rapidly expand with an additional 6,400 rooms by 2026, which are mostly located in Quezon City and Pasay City.
Although prices remain below pre-pandemic levels and supply expansion is in motion, JLL Philippines pointed out that government initiatives and good economic performance in cities that have a significant share of future supply may boost occupancy levels and demand.
As the economy opened up simultaneously with the lifting of restrictions on public activities, occupancy rate for economy, midscale, and luxury hotels posted consistent growth above 60 percent since Q4 2021. In total, these segments take up 64.8 percent of future stock.
“The outlook on the hospitality sector’s recovery remains optimistic as hotels slowly regain momentum with promotions, government initiatives, and increased tourist arrivals,” JLL Philippines said.
Bondoc also expressed optimism stressing that the enhanced leisure sector will continue to expand given the record-high supply of new keys in 2023. To accommodate the future growth, he urged the stakeholders to seize opportunities by (1) building more MICE facilities to maximize the return of in-person events; (2) developing more homegrown hotel brands or acquiring foreign ones; and (3) aligning programs and offerings with the Tourism department’s refreshed strategy.
Spreading goodwill
As the hospitality sector benefits from the tourism rebound, Seda Residences Makati is sharing their blessings by spreading goodwill and the love especially to the underprivileged. The hotel recently celebrated its Annual Christmas Tree Lighting Ceremony, signifying the beginning of the festive season.
The management said the event holds a special significance as Seda Residences Makati once again collaborated with Seda Hotels’ charity partner Smile Train, an organization dedicated to providing cleft repair surgery and comprehensive cleft care to children in need.
The lighting of the Christmas tree not only symbolizes the start of the Christmas season but also kickstarted the hotel’s charity campaign for Smile Train.
Guests and attendees are invited to contribute to this noble cause and make a difference in the lives of children around the world.
Adding to the hotel’s festive decorations is the newly unveiled Gingerbread Tower, meticulously crafted in the likeness of Seda Residences Makati—complete with a whimsical fondant display of restaurants and shops at the mall below the hotel. The yuletide masterpiece features intricate sugar and chocolate creations showcasing the dedication to craftsmanship and detail that Seda Residences Makati is known for.
During the same event, Seda Hotel Makati also honored its valued partners during the Annual Client Appreciation Night for their important contribution in its success throughout the year.
Moreover, the event also honored top corporate accounts and online travel agency partners. Long-time clientele from embassies and multinational groups, representatives of other Ayala Corp., subsidiaries, and special guests from local government agencies and the Department of Tourism were also present.
Moreover, the month-long celebration of the Christmas holidays at Seda Residences Makati include exciting offers for both rooms and dining outlets: Holiday Countdown Buffets; A gingerbread-making contest for kids; Christmas and New Year’s Eve room packages.