The Department of Tourism (DOT) and the Philippine Hotel Owners Association (PHOA) are shooting for a “globally competitive” hotel industry, targeting to reach 456,000 in room keys by 2028 in their newly launched hospitality sector roadmap.

In a ceremony Wednesday, the DOT and PHOA jointly released the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028 that outlined the need to accelerate infrastructure upgrade and expansion of hotel rooms across the country.

The roadmap also listed proposed measures to enhance the sector’s global competitiveness through the strengthening of data collection, development of human resource and promotion of public-private partnerships.

Based on the PHISAP, the country has to catch up with the room gap of around 120,463 by 2028 to enable the “baseline scenario” in the National Tourism Development Plan (NTDP) 2023-2028.

Under the NTDP, international arrivals are projected to reach 11.5 million in 2028, translating to increased demand for hotels. In the same year, the PHISAP forecasts the demand for rooms climbing to at least 456,055.

At present, the current room supply is at 335,592 from a total of 18,818 accommodation establishments across the country.

“The expected growth in foreign tourist arrivals, compounded by the immense volume of domestic trips made annually, mandates local destinations to increase their capacity in terms of providing a diverse range of product offerings such as attractions and experiences to travelers,” the roadmap read.

“In relation, the number of rooms made available to guests must also be increased to meet the demand for higher arrivals,” it added.

Based on key findings, the “high room demand” is projected in destinations in Central Luzon; Cavite-Laguna-Batangas-Quezon; Davao Gulf and coast; and Bicol region.

Meanwhile, it sees a “medium room demand” in areas of Cotabato-Sarangani; Metro Manila and Rizal; Surigao-Dinagat Islands; and Cagayan de Oro coast and hinterland, requiring interventions from stakeholders in the next five years.

In an interview, PHOA Executive Director Benito Bengzon Jr. said creating demand is crucial if the country wants developers to invest in emerging destinations.

“The hotel owners will build where there is demand and therefore government and private sector have to work very closely to create the demand, whether it is in existing or emerging destinations,” he said.

Bengzon said hotel owners should be given a say on where the air routes would be established.

Tourism Secretary Christina Frasco affirmed the DOT’s commitment to working with the hotel sector in contributing to its overall growth.

She also discussed government efforts such as the establishment of green lanes for strategic investments, the improved Public-Private Partnership (PPP) law, the expanded CREATE (Corporate Recovery and Tax Incentives for Enterprises) law, and PPP initiatives to enhance airport facilities and transport services.

“The PHISAP is more than just a road map — it is a bold vision for a thriving, sustainable, and inclusive future for Philippine tourism, outlining the pathways to develop world-class accommodations while ensuring that facilities are accessible to a broad spectrum of travelers,” Frasco said.

“By fostering collaboration between the public and private sectors, PHISAP seeks to address the evolving demands of tourism in a way that is both innovative while being inclusive,” she added.

In Southeast Asia, the Philippines lags behind Vietnam, Thailand, and Indonesia where the number of rooms ranges from 718,000 to 780,000.

Based on the biennial Accommodation Capacity Survey (ACS), Central Visayas has the biggest number of accommodation establishments at 2,607, followed by the Cordillera Administrative Region with 2,376, and the Ilocos Region with 1,895.

The National Capital Region has the highest number of rooms with a total of 60,812, followed by Central Visayas with 50,944.

The five-year roadmap, which took almost a decade in the making, is designed to enhance the competitiveness, sustainable development, and expansion of the Philippine hotel sector.

“From an investor’s perspective, we need to have a clearer picture of the destinations where market demand is projected to be strong. We also need to have a deeper understanding of the type of amenities and services that different travel segments are looking for so we can plan accordingly,” PHOA President Arthur Lopez said.

“The PHISAP will be the essential instrument and reference for us to make informed decisions.”

In 2023 alone, the DOT said 51.4 percent of the PHP508.8 billion in tourism investments came from the hotel sector.

It also contributed at least 16.2 percent to the PHP2.09 trillion tourism direct gross value-added in the same year and employed 23.3 percent of the 6.21 million workers in the tourism industry. (PNA)