The tourism industry in the Philippines is booming, and starting a resort business in the country can be a profitable venture with the growing economy and increasing number of tourists visiting. However, the process of starting a resort business in the Philippines can be quite extensive and complicated. We will provide you with a step-by-step guide and share all the insider tips for a successful business.
Can foreigners own a resort in the Philippines?
The Department of Tourism welcomes foreign investors who want to start a resort business in the Philippines. Establishing a legal entity within the Philippines is mandatory to own and operate a resort. This is done by establishing a foreign-owned corporation registered under the Securities and Exchange Committee (SEC).
7 steps to start a resort business in the Philippines
Foreign nationals can follow these seven steps to start a resort business in the Philippines.
Step 1: Establish a company in the Philippines
Investors wishing to start a resort business in the Philippines must comply with the guidelines set by the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC) for establishing a foreign-owned corporation. Foreigners are permitted to start a business in the Philippines, either with or without the involvement of Philippine citizens.
Requirements to start a company as a foreigner
If you’re planning to start a company in the Philippines that is fully foreign-owned, keep in mind that there is a minimum investment requirement of $200,000. However, this amount can vary depending on the size of the company. The minimum investment amount can be eliminated or lowered if Philippine citizens own a part of the company. It’s also crucial to note that the investment fund must be deposited in a local bank account and should be readily convertible to assets or cash.
It is essential to have a representative located in the Philippines who can assist you with legal and administrative matters. When starting a company in the Philippines, it is necessary to create a detailed set of by-laws and regulations that clearly define its purpose, structure, and operations.
Step 2: Obtain an Environmental Compliance Certificate (ECC)
Investors planning to start a resort in the Philippines must first obtain an Environmental Compliance Certificate (ECC) from the Department of Environmental and Natural Resources (DENR). This certificate ensures that your building follows all the guidelines and regulations for resorts in the country and helps minimize any negative environmental impact.
Step 3: Perform market research and find the right location
Market research is vital for any business venture. The three critical factors for starting a resort business in the Philippines are:
- Identify your target audience and determine whether you wish to attract families or luxury travelers.
- Make sure to research your competitors and determine what unique features will set your resort apart from them.
- Select the optimal location for the business in the Philippines.
When creating a resort business plan, it is essential to consider the accessibility and proximity to other existing resorts in the area.
Step 4: Buy or build the resort
There are two options for starting a resort in the Philippines. One option is to buy an existing resort, but you may need to spend extra money on renovations or upgrades. The other option is to build the resort from scratch. Though it takes more time and effort, this option gives you complete control over the resort’s appearance.
Step 5: Find staff for your resort
Hiring the right staff is crucial when starting a resort business in the Philippines to ensure excellent guest service. It’s important to build a team with expertise in marketing, customer service, logistics and operations, human resources, and hospitality management. You can also improve the skills of your staff by providing them with training opportunities. This will improve your guests’ service and enhance your resort’s brand reputation.
Step 6: Marketing and promotion
To attract more potential clients to your resort, it’s essential to have a solid marketing strategy that showcases the unique experiences you offer. You can do this by taking captivating photos, creating promotional videos, and writing blog posts that immerse your customers in the local culture and nature of the area. Establishing a solid online presence on various internet platforms and having an effective public relations team that engages your audience is also essential. With these marketing efforts, you can entice potential clients to choose your resort for their next stay.
Step 7: Receive guests
The last step in starting a resort in the Philippines is receiving the guests. Once the resort is ready, you can begin catering to your guests’ requests, creating a comfortable atmosphere in their chosen paradise.
Expert guidance for starting your resort business in the Philippines
Starting a resort business in the Philippines involves various steps, from finding the right real estate to completing company registration. Our experienced team is here to provide comprehensive support throughout the entire process. Whether you need help with legal requirements, property selection, or business setup, we offer personalized assistance tailored to your needs. You can also email us at [email protected] for detailed inquiries and tailored guidance. Contact us today and take the first step towards establishing your successful resort business in the Philippines with confidence!
Frequently Asked Questions (FAQs)
Can foreigners own resorts in the Philippines?
Yes, foreigners can own and operate resorts in the Philippines by establishing a foreign-owned corporation registered under the Securities and Exchange Commission (SEC).
What are the requirements for registering a resort in the Philippines?
The requirements to register a resort in the Philippines include a legitimate company registration and an Environmental Compliance Certificate (ECC) from the Department of Environmental and Natural Resources.
How much is the cost of opening a resort business?
The cost of opening a resort business varies significantly depending on land acquisition, construction, and operational expenses. While the $200,000 minimum investment is a starting point, anticipate any additional investments.
How to set up a resort business plan in the Philippines?
To set up a resort business plan in the Philippines, investors must plan by coordinating with the local Department of Trade and Industry office to check for further instructions and formulate a good business plan. The business plan must include an executive summary, marketing analysis and strategies, operational duties, foreseen risks, and how to cope with them.
