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Market Research Report
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1005627

Market Entry - Tourism and Hotel Industry in the Philippines - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Published: | Mordor Intelligence Pvt Ltd | 125 Pages | Delivery time: 2-3 business days

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Market Entry - Tourism and Hotel Industry in the Philippines - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
Published: May 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 125 Pages
Delivery time: 2-3 business days
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  • Description
  • Table of Contents
Description

Tourism is an important sector for the Philippine economy. In 2019, the travel and tourism industry contributed 12.7% to the country's GDP. Good travel and tourism policies enable millions of international visitors annually. Tourist arrivals to the Philippines slumped by 73% during the seven months of 2020, giving the country 1.3 million visits, according to a Philippines News Agency report.

The Philippines lost around PHP 400 billion (over USD 8.3 billion) in tourism revenue in 2020 due to the sudden fall in tourist arrivals amid the COVID-19 pandemic. In the Philippines, the government closed the airports in Luzon on March 20, as part of the Enhanced Community Quarantine (ECQ) that started on the island on March 16. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. In other countries, travel restrictions and measures started as early as January of this year and have impacted Philippine international tourist arrivals. Domestic tourists, on the other hand, also limited their travel due to fear of contracting COVID-19. The Department of Tourism reported that international tourist receipts in the first quarter of the year declined to PHP 85 billion, 36% lower than the revenues in the same period last year.

The Philippine tourism sector accounted for approximately 4% of the total economy and planned to double the figure by 2019 by improving infrastructure, accessibility, health and hygiene, as well as enhancing online promotional marketing strategy, leading to opportunities in the upcoming markets. The government also revised its visa-free access policy in 2015 to attract more foreign tourists. Famous tourist destinations like island groups of Luzon, Visayas, and Mindanao have already seen a large influx of investment in recent years, especially in the upper end of the market, leading to excessive supply, promoting the establishment of the hotel industry.

Key Market Trends

Overall Growth in Foreigners' Spending

Total expenditures by foreign tourists have been on the upswing in the Philippines. A foreign visitor typically spends USD 1062 per trip compared to USD 800 a few years ago. The average daily expenditure of foreign tourists in the Philippines was USD 109.65 and average length of stay by foreign tourists in the Philippines was 9.05 nights in 2018. Revenue from foreign visitors, so-called inbound tourism, now ranks as the Philippines' third-largest export; it has surpassed data processing, which ranked third two years before. About one-quarter of tourists' expenditures were allocated for accommodation, a share that has been growing in recent years; meals and shopping take up the next largest shares.

New Gateways and Improving Infrastructure

Transforming domestic airports into global gateways for the country has facilitated growth in international visitors, of whom 99% arrive by air. Upgrades to airports in Davao City and Iloilo City in the past few years have enabled direct charter flights from Singapore and Hong Kong. Clark serves scheduled flights from Doha, Hong Kong, Kuala Lumpur, Macau, Seoul, and Singapore, as well as domestic destinations. Renovations to Legazpi City's Bicol Airport, 470 km south of Manila, were expected to enable direct charter flights from China in 2016. The airport will open up the Bicol region, its national park, the active volcano, and whale shark sight-seeing. Meanwhile, long accustomed to serving both scheduled and charter flights from throughout East Asia, Mactan-Cebu Airport, in 2016, was slated to begin receiving long-haul flights when three Philippines Airlines begin flying between Cebu and Los Angeles, California. More direct international flights to Cebu, Boracay, and Davao are also on the way.

Competitive Landscape

The report covers major international players operating in the tourism and hotel industry in the Philippines. In terms of market share, few of the major players currently dominate the market. However, with factors such as technological advancements and service innovation, infrastructure development by local government and other facilities is attracting businesses and tourists.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 55590

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS AND DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 PESTLE Analysis
  • 4.5 Impact of COVID-19 on the Market

5 MARKET DEMAND ANALYSIS

  • 5.1 Socio-economic Demand
  • 5.2 Demographic Strengths and Weaknesses
  • 5.3 Spending Pattern
  • 5.4 Target Market Identification

6 MARKET SEGMENTATION

  • 6.1 By Type
    • 6.1.1 Business Tourism
    • 6.1.2 Vacation Tourism
    • 6.1.3 Eco-tourism
    • 6.1.4 Cultural Tourism
    • 6.1.5 Adventure Tourism
    • 6.1.6 Event Tourism
    • 6.1.7 Cruise Tourism
    • 6.1.8 Medical Tourism

7 MARKEY ENTRY

  • 7.1 Market Entry Strategy
    • 7.1.1 Types of Entry Modes by Market Entry Objectives
    • 7.1.2 Competition Analysis
      • 7.1.2.1 Porter's Five Forces Analysis
      • 7.1.2.1.1 Threat of New Entrants
      • 7.1.2.1.2 Bargaining Power of Buyers/Consumers
      • 7.1.2.1.3 Bargaining Power of Suppliers
      • 7.1.2.1.4 Threat of Substitute Products
      • 7.1.2.1.5 Intensity of Competitive Rivalry
      • 7.1.2.2 Market Share
      • 7.1.2.3 Strategies Adopted and Recent Events
    • 7.1.3 Pricing Strategy
    • 7.1.4 Supply Chain Analysis
      • 7.1.4.1 Trade (Import-Export)
      • 7.1.4.2 Distribution Network and Retail Analysis
  • 7.2 Market Entry Administration
    • 7.2.1 How to Register a Company- Flowchart
    • 7.2.2 Registration Process
      • 7.2.2.1 Ministries Involved
      • 7.2.2.2 Criteria and Conditions
    • 7.2.3 List of Forms and Documents
    • 7.2.4 Product Control Guidelines by the Government

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

9 DISCLAIMER