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Island Resorts

The Philippines is made up of 7,107 islands (only 2000 are inhabited); each island
offers a rich biodiversity ranging from tropical rain forests, mangroves, and coral reefs to
mountain ranges, world class beaches, beautiful islands and a diverse range of flora
and fauna. There is increasing interest in investments in island resorts. Coron Islands
in Palawan is a good example of recent environment friendly resort development.

General Tourism/Business Visits and Hotels

The hotel industry in the Philippines is expected to see a continued growth over the next
five years, although a decline in hotel occupancy rates in the first half is
forecasted. Hotel occupancy rates in Manila slipped to an average of 68 percent in the
first half of 2016, lower than occupancy rates the previous year, however still better than
in other ASEAN countries. Hotel chains continue to pursue their respective expansion
projects. The Filinvest Group is increasing its hotel portfolio in both Alabang and Cebu,
plus the Filinvest Group’s Chroma Hospitality, that focusses on hotel management
services, is investing P2.6 billion (US$52 million) for two Canvas brands – a 228 room
Canvas Hotel in Cubao, and a 185 room Canvas Hotel in Mactan. Additionally, Filinvest
is introducing a Crimson Hotel in Boracay, Quest Hotels in Dumaguete and Tagaytay. It
is planned that these hotels will open between 2018 and 2019. Chroma Hospitality is
also looking to expand in Pasig, Quezon City, Batangas, Cavite, Laoag, Baguio, Cebu
and Davao.

Another leading investor, Ayala Land plans to launch the Seda hotel chain across the
Philippines over the next five years. This will be in addition to Seda Hotels currently
located in Bonifacio Global City, Cagayan de Oro City, Davao City and Laguna. Ayala
Land are planning 2,000 new hotel rooms by 2018, and 6,000 hotel rooms by 2020. Red
Planet, formerly Tune Hotel, is also planning to expand in the Philippines over the next
five years. The rebranded hotel currently has 10 hotels, and plans to have 20 hotels in
the Philippines over the next five years.

Along with the anticipated 7 million foreign tourists this year, there are approximately 50
million domestic tourists. Obviously, the continuing improvements in infrastructure
such as airports, roads and rail transport systems is seen as the key that can unlock the
Philippines potential for tourism growth. Research has also found that tourists
constitute 79 percent of total hotel guests outside Metro Manila.
Yachting and Sailing

Tourism in the Philippines has grown steadily during the last few years. There are
increasing numbers of sailing enthusiasts looking for sailing and yachting experience
amongst the Philippines archipelago. The only way to get to many of the Philippines
islands is by sea, and many of the islands are inhabited. Palawan is one of the
favourite destinations for those yacht and sailing enthusiasts. The main ports where
charter boats can be rented, are Puerto Galera, Boracay, Coron, Puerto Princesa, and
Cebu.

The industry of yacht chartering in the Philippines is still in early stages. The yachting
and sailing fleets available for rent are mainly composed of privately owned boats, and
skippered by the owners who want to share the sailing experience in the Philippines.
The priority destinations tend to be Boracay, Puerto Galera, Palawan, Subic Bay, Cebu
and Bohol, with other destinations becoming popular.

More generally, Southeast Asia is fast emerging as the yachting hub of Asia, with
industry watchers highlighting the potential in markets like Thailand and
Indonesia. However, there is not a large yachting culture in Asia, despite the region’s
growing wealthy population. Currently only 4.3 percent of the world’s super yachts are
Asia-based, despite the region boasting a large number of high net worth
individuals. For general information, a super yacht is typically at least 25-30 meters in
length.

The countries that have the highest potential in yacht growth are Thailand, Indonesia,
the Philippines and Malaysia. This is due to the natural beauty of the islands, existing
yacht clubs, a viable and strong tourism industry, as well as a strong expat community
who have a history and support for yachting.

Scuba Diving

The Philippines have the most species in the least space of anywhere in the planet. Out
of the planet’s 500 coral species, more than 400 are in the Philippines. The Philippines
is at the center of the world’s Coral Triangle, and host to a very rich marine biodiversity,
the whole Philippine archipelago can be considered a dive location.
There are over 100 identified diving spots across the Philippine islands that are rich in
corals and marine species. The Philippines is currently working at tapping a larger
share of the world’s diving market. The current figures for foreign dive tourists in the
Philippines is expected to be 200,000 in 2017. Previous figures released by DOT were
59,572 in 2010, 89,911 in 2011 and 126,200 in 2012. The biggest markets were South
Korea, USA and Germany.