Tourism Luxury Tourism in Philippines: A Magnet for Investors

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The Philippines is rapidly becoming a hotspot for global investors, thanks to its burgeoning luxury tourism sector and attractive investment offerings. The Department of Tourism (DOT) highlights this trend as a promising avenue for high returns, drawing interest from international stakeholders eager to capitalise on the nation's growing allure.

 

DOT Secretary Christina Garcia-Frasco has credited the rise in foreign interest to recent legislative incentives, infrastructure improvements, and increasing demand for hotel accommodations. The CREATE More Act, which offers tax breaks and other incentives, has been pivotal in positioning the Philippines as a desirable destination for both leisure activities and long-term investments.

 

Projections show that hotel room demand could soar from 335,000 to 456,000 by 2028. This anticipated increase is supported by significant efforts to expand airport capacities in key regions like Manila, Cebu, and Bohol through public-private partnerships.

 

The Philippines has implemented several measures to further boost tourism. New direct flights from Air India and visa-free entry for Indian tourists aim to simplify access, while the introduction of a Digital Nomad Visa caters to remote workers seeking a tropical office.

 

Additional initiatives include plans for a VAT refund scheme for visitors and the Special Resident Retirees’ Visa, designed to attract long-term travelers and retirees. These measures showcase the country’s commitment to delivering a seamless and appealing experience for international visitors.

 

The robust response from India has been particularly noteworthy. Anita Gupta from Taj Hotels expressed keen interest in expanding luxury offerings in Manila, acknowledging the city’s potential as a gateway for high-end travel in the region.

 

Local investor sentiment echoes this optimism. Raj Uttamchandri of The Farm at San Benito has seen his investment multiply tenfold over the past five years, owing to government support and the strong growth trajectory of the tourism industry. He believes the Philippines will remain a top tourism investment destination for the coming decade.

 

With its strategic approach, the Philippines is appealing to a diverse range of visitors. From Gen Z digital nomads to over 55,000 foreign retirees, the country offers something for everyone. The emphasis on safety, high-quality service, and profitable investment opportunities makes the Philippines an attractive prospect.

 

Secretary Frasco highlighted the unique blend of leisure and investment tourism, emphasizing the Philippines' readiness to welcome a diverse global audience. The country's reputation for hospitality, alongside its favourable economic policies, is expected to sustain its growth trajectory and keep international investors interested.

 

As the Philippines continues to lure international investors and tourists, maintaining this momentum will be crucial. Continued improvements in infrastructure, combined with innovative tourist-friendly policies, are vital to staying competitive in the regional tourism market.

 

The strategic steps taken by the government and the enthusiasm shown by foreign and local investors alike suggest a bright future for the Philippines' luxury tourism sector. By capitalising on its natural beauty, cultural richness, and now a welcoming business climate, the Philippines is set to not only boost its economy but also redefine its position on the global stage.

 

  Adapted by ASEAN Now from Manila Bulletin 2025-08-13