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Rising Number of Foreign Arrivals Will Lower Hotel Rates

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A high number of foreign arrivals in the country projected in the coming years will be more likely to improve the Average Daily Rates (ADR) of hotels in Metro Manila, Colliers International Philippines said.

According to the property services firm, the push to attract more leisure investment by improving infrastructure and implementing sustainability programs should support arrival growth and sustain good hotel occupancy and ADR growth from 2019 to 2021. This is even though Manila is lagging behind its Asian neighbors in terms of tourist arrivals and ADR.

Mixed ADR across Metro Manila

Colliers’ latest quarterly report showed a mixed result of ADR among hotels across Metro Manila sub-locations in the second half of 2018. Three percent growth

Three-star hotels in Quezon City recorded a three percent growth while the four-star hotels posted one percent growth.

On the other hand, hotels in Fort Bonifacio posted a one to four percent increase in ADR during the said period. Meanwhile, a flattish growth was seen in the three- and five-star hotels in the Makati Central Business District.

It was a different case for the hotels within the Manila Bay area which decelerated by about two and three percent, respectively.

Tourism campaign

hotel room

With the opening of more airports and a refreshed tourism campaign, Department of Tourism Secretary Bernadette Romulo-Puyat said that the country is targeting 8.2 million foreign arrivals for this year. The reported figure is about 15 percent higher compared to 2018’s target of 7.1 million tourists’ arrivals.

With a sustained interest from markets such as China, Japan, Korea, US, Australia, and Taiwan, Colliers sees a rising number of foreign arrivals in the country in the next three years.

pool side

It added that such a target might be a daunting task for the government, but the objective will be realized with the help of programs such as cruise tourism, homestays, and Invite-A-Friend.

However, the property firm said that the government must ensure that accommodation facilities across the country are compliant with environmental and local government policies.

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