FADING INTEREST: Hotel investors shift from Boracay to Bohol – survey

By Francis Allan L. Angelo

Hotel investors are moving their focus from Boracay to Bohol, particularly Panglao Island.

In a report, Leechiu Property Consultants (LCP) observed a “progressive shift” in investor interest towards Panglao Island in Bohol, El Nido in Palawan, and Siargao Island in Surigao del Norte.

These destinations are increasingly recognized for their untapped potential and rising popularity among foreign tourists, offering compelling investment opportunities.

According to LCP’s Philippine Hotel Investment Outlook Survey, 41% of the survey respondents are exploring hotel development in Bohol, making it the top destination for new investments.

The Philippine Hotel Investment Outlook Survey, conducted from March to April this year, polled more than 10,000 hotel keys in the industry.

A total of 44% of the respondents are owners or owner representatives while 56% are hotel operators. It was released during the inaugural Philippine Tourism and Hotel Investment Summit 2024

FACTORS

The shift is attributed to several factors, including Bohol’s designation as the country’s first UNESCO Global Geopark in May 2023, its proximity to the Panglao airport, and its diverse tourism offerings.

“This period also presents an opportunity for operators to address shifts in guests’ demands and preferences,” the LCP report noted.

Bohol’s popularity among investors has surged due to its comprehensive tourism appeal. Beyond its famous Chocolate Hills, the island offers wildlife encounters, river adventures, pristine beaches, and world-class diving spots.

These attractions, coupled with the logistical convenience provided by more than 70 international flights weekly to Panglao airport, have made Bohol an investment hotspot.

The survey found that Bohol was followed by Metro Manila, with 39% of respondents showing interest in hotel development.

Despite being the main gateway with over 10,000 keys in the pipeline, Metro Manila ranked second in terms of investment interest.

Cebu City and Siargao both garnered 36% interest, while El Nido received 34%, making these areas key growth hotspots alongside Bohol.

GETTING DOMESTIC

The LCP also pointed out a notable trend: Boracay, traditionally the top choice for high-spending foreign tourists, has seen a decline in investor interest.

Now, only 29% of respondents prefer to invest in Boracay, ranking it sixth.

The shift is attributed to Boracay’s increased focus on the domestic market, which has led investors to seek new opportunities in other prime destinations.

Earlier, the Department of Tourism in Western Visayas (DOT-6) attributed the decline in foreign tourist arrivals on Boracay to cuts in direct international flights to Aklan’s two main airports.

“There were cuts in international flights to Aklan. Starting in July, we observed a reduction in foreign arrivals from South Korea since we no longer have direct flights from Jeju in South Korea. They transferred to Bohol,” said DOT-6 Assistant Regional Director Phoebe Zelie C. Areño.

Areño elaborated that, unlike Kalibo International Airport and Caticlan (Godofredo P. Ramos) Airport, the Bohol–Panglao International Airport offers direct access to Bohol Island, making it a more convenient destination for tourists.

“It is direct, and there is no need for foreign tourists to transfer to the island, which brings accessibility for them,” she explained.

“The access to the destinations and the beach area that they want to visit is faster,” Areño added.

According to data from the Malay Tourism Office, Boracay welcomed 214,754 foreign tourists from January to June 2023.

In the same period this year, the island saw 232,865 foreign tourists, with a peak in January and February averaging at least 50,000.

However, the island’s foreign arrivals slowed in April with 35,569 visitors, followed by 29,325 in May and only 23,566 in June.

Korea is the top source of foreign tourist arrivals, accounting for 199,114 of the arrivals in Western Visayas, based on DOT-6 data.

The DOT-6 said they are enhancing product offerings to entice foreign nationals and regain pre-pandemic tourist numbers.

“We are also helping the LGU streamline payments for island access,” Areño added.

Considering the various touch points going to Boracay Island, the DOT-6 urged the Malay LGU to digitize the collection of fees for the island.

“We hope these measures will help us win back tourists by providing easy access to our destination,” she said.

INFRA SIDE

Tourism Secretary Christina Frasco, in her keynote speech at the Philippine Tourism and Hotel Investment Summit 2024 in June, highlighted the “phenomenal performance” of Philippine tourism, noting that the country has seen the “highest tourism growth” in 24 years.

The growth is particularly evident in emerging destinations like Bohol, which are drawing significant investments.

As the infrastructure improves across the Philippines, more tourists are expected to explore various destinations beyond the traditional hotspots.

Once better airports are established in Siargao and El Nido, a lot of Koreans, or a lot of source markets, are moving to different destinations, not just Boracay, LPC said.

Data from the Department of Tourism showed that South Korean tourists have overtaken Americans in terms of arrivals in the Philippines.

As of July, South Koreans made up 26.17% of the total 2.81 million foreign tourist arrivals this year, representing a 17.12% growth from the same period last year.

Despite the positive outlook, challenges remain. Infrastructure development, particularly improving airport facilities in key tourist destinations, is crucial for sustaining growth.

Investors are keenly watching the progress of these improvements, which are vital for enhancing accessibility and attracting more international tourists.