456,000 hotel rooms needed by 2028 to meet tourism demand, says TIEZA

As the tourism sector continues its upward trajectory, the current “positive crunch” in hotel room supply signals more than just a challenge, but a golden window for stakeholders to invest in long-term, tourism-driven strategies that will define the future of Philippine hospitality and unlock the industry’s full potential.
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MANILA, Philippines — In a sit-down discussion, Anchor Land President Elizabeth Ventura, Chamber of Real Estate and Builders' Associations (CREBA) Vice President Andy Manalac and Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Assistant COO Karen Mae Sarinas-Baydo talked about the growing shortage of hotel rooms across the country, driven by a sharp rise in both business and leisure tourism.

The Department of Tourism (DOT), in collaboration with the Philippine Hotel Owners Association (PHOA), has launched the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028 to directly address the increasing hotel room gap and support sustainable tourism growth.

This initiative comes in response to the rapid rise in both domestic and international tourism arrivals, which has outpaced current accommodation capacity in key destinations nationwide. 

The PHISAP outlines a comprehensive roadmap to guide public and private sector investment, encourage the development of new hotel infrastructure, and enhance service quality in line with global standards.

By tackling the projected shortfall of over 450,000 rooms by 2028, the plan not only aims to meet growing demand but also positions the Philippines as a more competitive and resilient tourism destination in Southeast Asia. 

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. 

To meet this diversifying demand, the need now extends beyond traditional hotels to include modern, flexible accommodation models that cater to both leisure and business travelers, especially those with longer stay requirements.

In response to these projections, PHISAP presents a proactive step toward transforming the Philippine hospitality industry into a more robust, adaptive and globally aligned sector—one that can effectively support the country’s broader tourism and economic development goals in the years ahead.

Philippines as a tourism powerhouse in Asia

As the tourism sector continues its upward trajectory, the current “positive crunch” in hotel room supply signals more than just a challenge, but a golden window for stakeholders to invest in long-term, tourism-driven strategies that will define the future of Philippine hospitality and unlock the industry’s full potential.

“Our vision is to position the Philippines as a true tourism powerhouse in Asia by building world-class infrastructure, strengthening investor confidence, and delivering high-quality experiences for every traveler from arrival to departure,” Sarinas-Baydo said.

To this, she added “We encourage both local and foreign investors to take a closer look at the Philippines today. With major infrastructure projects underway and strong government support, the foundation is set for high-yield, future-ready investments.”

Echoing this vision, leading property developer Anchor Land has demonstrated strong support by strategically adapting to shifting market demands.

As one of the country’s preferred developers, Anchor Land is helping bridge the accommodation gap through tourism-focused developments that cater not only to the growing number of leisure travelers but also to business visitors seeking modern, well-located accommodations. These projects reflect a deep understanding of both market needs and the economic promise of emerging districts.

“At Anchor Land, we harness the potential of rising destinations by building properties that reflect their long-term value. We also recognize that tourism comes in many forms. While leisure travelers continue to seek memorable experiences, we’re also addressing the needs of business visitors who demand convenience, comfort, and accessibility, as well as those who are in town for medical, wellness, or educational purposes,” Ventura expressed 

Flexible-use properties as a smart approach

Thoughtfully designed, multidimensional spaces are quickly becoming the gold standard in property development. “It is important for accommodations to support the many ways people live, work, and play. Whether serving as a short-term rental, a wellness retreat, or a long-stay residence, flexible-use properties offer unmatched utility and investment potential,” Ventura said.

As lifestyles continue to shift, these types of assets ensure greater occupancy and resiliency. Take for example serviced residences—these developments seamlessly combine the comforts of home with the amenities of a hotel, catering to business and leisure travelers, digital nomads, and extended-stay guests alike.

With adaptable layouts, functional in-room features, and concierge-level services, they exemplify the evolving expectations of today’s tourists and tenants. 

“Apart from offering flexible stay terms, our developments respond to the growing demand among travelers for self-contained, professionally managed accommodations that go beyond the traditional hotel experience. Guests increasingly value the ability to cook their own meals, enjoy more spacious living areas, and maintain a sense of routine while away from home. Ultimately, these features translate to a more comfortable, personalized, and convenient stay,” Ventura highlighted.

Copeton Baysuites in Bay City Manila

When it comes to premier investment areas in the Philippines, Bay City stands out as a clear frontrunner. Dubbed “Asia’s Little Las Vegas,” this vibrant district is a dynamic hub of growth and opportunity, buzzing with commercial activity, world-class entertainment, leisure destinations and thriving business centers.

As an emerging hotspot in the country’s economic and tourism landscape, it offers a compelling mix of lifestyle, connectivity and long-term investment potential. 

Copeton Baysuites is an upscale development purposefully master-planned across three distinct towers: the highly exclusive West Tower and the rental-ready North and South Towers. Strategically designed to embody the sought-after bay lifestyle, this premier property stands out as one of Anchor Land’s most compelling investment offerings within the tourism district.

Built to provide low-density living for affluent families and top executives, the West Tower highlights expansive layouts, sleek and sophisticated furnishings, and ultra luxe amenities that complement the vibrance of the district.

Atop the tower is an exclusive collection of inner penthouse apartments, which features floor-to-ceiling windows that offer distinct views of the cityscapes, living and dining area adjacent to an enormous pentagonal balcony, and a private access to the executive lap pool. 

Meanwhile, the North and South towers sport spacious cuts of studio-type and two-bedroom units for buyers yearning to experience comfort and convenience. Apart from operational efficiency, owner-investors can fully maximize the passive income potential that comes with owning rental-ready residences in these two towers.

With hotel standard configurations, well-appointed indoor and outdoor properties, and a central location that draws in high foot traffic on a daily basis, guests are expected to regularly come in whether they are traveling for leisure, business or wellness. 

By combining hospitality-grade living with flexible-use design and professional property management, Copeton Baysuites delivers a compelling value proposition: a future-proof investment for unit owners and a superior stay experience for guests. 

 

Tap into tourism-driven property investments. Visit www.anchorland.com.ph.


Editor’s Note: This press release is sponsored by Anchor Land. It is published by the Advertising Content Team that is independent from our Editorial Newsroom.



 

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