The Department of Tourism (DOT) is pushing for the expansion of the country’s hotel industry to accommodate the increasing number of visitors and strengthen the Philippines’ position as a leading travel destination.
Speaking at the 2nd Annual Philippines Hotel Industry Summit on Feb. 26, DOT Secretary Christina Garcia-Frasco noted that while the country’s visitor arrivals remain lower than some ASEAN neighbors, the steady influx of tourists has significantly boosted local hotels and businesses.
To address the growing demand for accommodations, the DOT, in partnership with the Philippine Hotel Owners Association, has launched the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023–2028.
Frasco also underscored the strength of domestic tourism, citing the World Travel and Tourism Council’s (WTTC) valuation of over $66.2 billion, which continues to drive employment and business expansion nationwide.
To attract more investments, the DOT has pushed for the tourism sector’s inclusion in the Strategic Investment Priority Plan (SIPP) and is advocating for its reclassification under tier three to secure stronger government incentives.
The department is also working to expand the list of eligible tourism enterprises under the SIPP to encourage participation from major developers and small-scale investors.
As part of efforts to promote balanced development, the DOT has facilitated the removal of locational restrictions for tourism projects, opening more areas across the country to hotel investments.
Under the newly signed CREATE More Law, the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is offering fiscal and non-fiscal incentives for hotel developments within tourism enterprise zones (TEZs).
Frasco reaffirmed the Marcos administration’s commitment to fostering an investment-friendly climate for the hospitality sector to ensure stable returns for investors and sustained industry growth.
She also encouraged hotel industry leaders to take part in key tourism initiatives, including the arrival of the Michelin Guide, the hosting of the Terra Madre Asia Pacific, and the 2026 ASEAN meetings, which are expected to further elevate the country’s global tourism profile.