The Philippines experienced a significant boost in international tourism in 2024, with 4.08 million visitors arriving by September. This marks a robust recovery for the tourism sector. As the country aims for 7.7 million visitors by the end of the year, this resurgence opens up profitable opportunities for real estate investors seeking to take advantage of the increasing demand for tourism-related properties.
The tourism sector boosts real estate demand in the Philippines
The tourism industry in the Philippines has experienced a significant recovery, generating ₱ 362 billion ($6.46 billion) in receipts from January to August 2024, marking a 111.17% increase compared to 2019. As international tourists return to popular destinations, there has been a surge in demand for rental properties, hotels, and other tourist accommodations. This increased demand presents opportunities for real estate investors to consider short-term rentals, vacation homes, and hotel developments in key tourist areas such as Boracay, Cebu, and Palawan.
The country’s strong tourism revenue is making it an appealing destination for short-term stays and long-term investments, further bolstering the real estate market.
Expanding tourism creates investment opportunities
The Department of Tourism (DOT) is aiming to broaden its portfolio by providing distinctive and immersive travel experiences. This move toward experiential tourism is intended to appeal to a more varied range of international visitors, positioning the Philippines as an attractive location for real estate investors to establish boutique hotels, eco-resorts, and experiential lodging options.
As the Department of Tourism (DOT) continues to promote these new tourism concepts, investors can take advantage of serving a growing audience seeking memorable, high-quality accommodations. This shift in tourism strategy complements opportunities in sustainable and luxury real estate development, which are increasingly appealing to global tourists.
Domestic travel growth adds to real estate potential
The Philippines is experiencing a rise in domestic tourism, in addition to attracting international visitors. Events like the Philippine Travel Mart (PTM) are promoting local travel by offering discounted travel packages and showcasing emerging destinations. This presents an opportunity for real estate investors to consider developments in lesser-known areas within the country, as more Filipinos are venturing to explore their own country.
From coastal developments to urban properties near major tourist attractions, the increase in domestic tourism is creating new opportunities for real estate investment in emerging markets in the Philippines.
Real estate growth is driven by tourism recovery
The Philippine real estate market is set for continued growth as the country solidifies its position as a leading tourist destination in Southeast Asia. As the tourism sector is on track for a full recovery, there will be an increased demand for both commercial and residential properties.
Investors who want to take advantage of the increasing number of international visitors and domestic travelers should focus on prime locations for hotels, serviced apartments, and short-term rentals. The momentum generated by the tourism industry’s financial recovery provides a positive forecast for real estate development and long-term investment in the Philippines.
