The Department of Tourism (DOT) has announced that it has exceeded its target of 4.8 million foreign arrivals, with over five million visitors recorded by December 12. This remarkable turnaround has led Leechiu Property Consultants (LPC) to assess the industry’s performance as ‘better than expected.’

This year’s remarkable resurgence in tourism is also largely driven by the resilience of domestic travel where it played a crucial role in addressing potential challenges from key international source markets, notably China and Japan.

LPC stated in the report that, “Despite uncertainties in these external markets, the country’s focus on boosting internal tourism significantly bolstered the industry’s stability and growth.”

2024 is anticipated to be the year in which broad indicators in the global tourism industry (tourist arrivals, flight capacity and hotel occupancy rates) finally recover from pre-pandemic levels. Key trends for the forthcoming year, emphasizing the need for innovative strategies to navigate the ever-evolving landscape should harness the tourism sector’s maximum potential.

While the DOT initial target of 4.8 million international arrivals in 2023 underscored recovery, “Aiming for the 2024 target of 7.7 million international tourists will pose a more significant challenge,” said Alfred Lay, LPC Director for Hotel, Leisure, and Tourism.

Lay said South Korea has returned to about 72 percent arrivals while China only recovered 15 percent. Philippines, Thailand, Vietnam and Indonesia were all equal in witnessing the fairly low recovery rates from Chinese inbound guests but the country was still able to breach its 2023 target.

“The 7.7 million is a very interesting target and I’m very interested to see what happens next year, to see if the Philippines has the ability to generate two million new arrivals,” he added.

LPC said more investments are needed in the sector in terms of hotel accommodations. An exciting development is the growth of Tourism Foreign Direct Investments (FDIs). Over the past year, there has been a notable increase in foreign investors recognizing the Philippines as a prime investment opportunity. This trajectory will likely persist through 2024, propelled by the robust expansion of the tourism sector, untapped markets, proactive government initiatives, and collaborative opportunities and partnerships. These factors collectively position the country an attractive destination for FDI in the tourism sector.

“Initiating these investments within the next year is critical to fortify international tourism beyond 2027. Currently, a development pipeline is in place, with nearly 15,000 new hotel rooms expected to be delivered within the next five years, primarily concentrated in Metro Manila,” it said.

The government is poised to launch the National Accommodation Standard (NAS) and the Philippine Hotel Industry Strategic Action Plan (PHISAP) within the coming year. Led by the Department of Tourism (DOT) and the Philippine Hotel Owners Association (PHOA), these initiatives aim to furnish the hotel industry with a strong foundation and guidance for tourism expansion.

“With an ambitious target of 12 million foreign tourist arrivals by 2028, there’s a pressing need to ramp up hotel investments over the next four years to accommodate the expected surge in tourist numbers,” it said.

LPC eagerly anticipates the establishment of the Maharlika Fund, following President and CEO Rafael Jose Consing Jr.’s nomination of tourism-related infrastructure as one of its four investment pillars.

The prioritization of projects such as the New Manila International Airport in Bulacan, the rehabilitation of the Ninoy Aquino International Airport, the Laoag International Airport Development project, and the upgrade of the Laguindingan Airport is deemed a “strategic move” according to LPC. These initiatives hold significant potential to bolster the tourism sector and are therefore viewed as essential endeavors.