By Jomarc Angelo M. Corpuz, Special Features and Content Writer
The Philippines is known for its beautiful beaches, rich culture, and hospitable citizens. These features have made the country a hot spot for international tourists looking for a tropical paradise. Due to its natural landscape, tourism has become an integral part of the Philippine economy contributing 8.6% to its gross domestic product.
Meanwhile, the real estate market in the Philippines is projected to reach a value of more than $6 trillion in 2024. This is partly due to more Filipinos realizing the value of investing in properties, a surge in demand for affordable housing due to increasing urbanization, and a growing middle class.
Converging these two important sectors is an emerging industry called property management that benefits not only Filipinos looking to make a profit on their real estate investments but also tourists searching for accommodation during their stay in the country.
Property managers provide daily supervision of residential, commercial, or industrial real estate by a third-party contractor. Working for the owners of these investments, they manage and screen potential tenants, maintain their properties, as well as market and advertise to possible lessees.
In an email interview with BusinessWorld, Filipino hospitality group Discovery Hospitality’s Senior Vice-President and Head of Sales and Operations Lynette Ermac gave an overview of the present state of tourism-focused property developments in the country.
“Property developments in the Philippines are very promising. Despite the challenges posed by the pandemic, the industry continues to improve. The insights from that experience have provided us with a multitude of inspirations that have prompted new local management companies to develop new hospitality concepts and boutique properties,” she said.
Ms. Ermac also noted that while the influx of these new players benefits the industry and communities by enhancing tourist experiences and building sustainable developments, eventually they may outnumber big names, which can affect international travelers who are less adventurous when it comes to accommodation.
The COVID-19 pandemic adversely affected tourism in the Philippines, ending 11 years of consecutive growth when it broke out, slashing the country’s revenue from the industry by more than 61% from P2.5 trillion in 2019 to barely over P970 billion in 2020. This decline was felt in multiple sectors including property management and its effects are seen in the industry to this day.
“The property management industry has demonstrated resilience and innovation by adapting services to meet the diverse needs of tourists. For Discovery Hospitality, we have always curated experiences that would be of interest to our guests, and the recent global challenge has only encouraged us to reinforce this through digital transformation, strengthened personalized experiences, and diversified immersive travel offerings,” Ms. Ermac said.
Another way that Discovery Hospitality has adapted to the pandemic is by pivoting its organization to various allied businesses and shared services such as analytics, industry insights, and its celebrated thought leadership to help investors build life-changing brands.
Ms. Ermac also mentioned that government policies and regulations have helped shape the tourism property development landscape in the country.
“Quality and sustainable development have been fostered by initiatives such as the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and the Department of Tourism’s accreditation standards. Both have guaranteed the safety and quality of our local tourism products, thereby bolstering the country’s tourism credibility,” she said.
Despite these initiatives, Ms. Ermac also stated areas of improvement where local governments and other agencies can help propagate the growth of the property management industry.
“There is a challenge with different local government units having different policies and fees that could affect the progression of these developments. Streamlining systems like new development processes, green building policies, and improving infrastructure connectivity in less accessible tourist destinations could also further develop the industry,” she said.
With a portfolio of properties in Boracay, Palawan, Samal, Makati, and Ortigas, Discovery Hospitality’s group of hotels and resorts provides authentic experiences unique to the destination and balances preserving local culture and catering to international tourists.
“As a Filipino homegrown brand, it is our purpose to be the iconic symbol of Filipino hospitality and to be a key player in the industry globally. With this comes the balance of preserving local culture at our core. In all of our products and experiences, we make sure to incorporate and highlight local traditions, craftsmanship, and cuisine to foster authentic connections with the community,” Ms. Ermac said.
She also assured potential clients that their developments are woven together with the cultural and environmental context of each destination by cultivating relationships with local communities and stakeholders. Ms. Ermac also emphasized the importance of their staff, whom she recognized as ambassadors of the local way of life.
The company’s developments have more than just given tourists a comfortable stay in their destinations; they have also provided employment opportunities, stimulated local economies, and helped promote infrastructure development in the area.
“At Discovery Hospitality, ensuring the development of our communities is part of our corporate values. All of our actions and business decisions, from supporting local businesses to conducting training and development programs, and participating in community service initiatives contribute to the responsible and inclusive growth of the region,” Ms. Ermac said.
Aside from the local community, Discovery Hospitality is mindful of the environment as well. Eco-friendly actions such as single-use plastic consumption, constructing a desalination plant for alternative water supply, and protecting the marine sanctuary through various initiatives were taken by the company to preserve local communities’ homes and the surrounding nature reserve.
With the country offering an abundance of beautiful and vibrant cultures for exploration, there is cause for optimism about the future of tourism-focused property developments in the Philippines. In this regard, Ms. Ermac shared some of the challenges and opportunities that await the industry.
“There are numerous opportunities ahead that we can seize to showcase our renowned Filipino hospitality. The challenge is to ensure that every development prioritizes environmental sustainability at all times, thereby preserving our customs, traditions, and the beauty of these destinations. In addition, we can simplify local government unit policies to improve business efficiency and facilitate the ease of implementing activities that improve the overall tourism experience,” she expressed.
Driven by the country’s beauty and its constantly growing real estate segment, property management in the Philippines presents a promising avenue for growth in local communities and the economy in general. As the new industry continues to expand, both the tourism and real estate sectors are poised to thrive and contribute to the nation’s economic and cultural vitality.