AGGRESSIVE hotel development in Metro Manila and other highly urbanized areas in the country is seen to persist in the second half of the year which should create more job opportunities in the hospitality sector.
According to a report published by real estate consultancy firm Colliers International, approximately 3,300 new hotel rooms in Metro Manila were completed by the end of 2014, bringing the hotel room stock to beyond the 20,000 mark.
The report noted that despite the increase in tourist arrivals in the first five months of the year, which reached 2.2 million, hotel occupancy rates in Metro Manila still declined by 62.2 percent as of June 2015.
Colliers said the decline was mainly caused by the increasing number of new hotels and the prevalence of direct flights from international locations to provincial destinations such as Cebu and Davao, which makes stops in Metro Manila unnecessary.
Some of the hotels that opened this year were the Hyatt City of Dreams and Nobu hotel, which had soft openings in December 2014 but officially opened on Chinese New Year’s Day in 2015; and the Marriott Newport City grand ballroom, which can accommodate 4,000 guests.
Despite a slowdown in hotel openings in the first half, a more bullish performance in the second half is expected from the hospitality development sector as several new hotels are expected to open.
These include two five-star hotels in Fort Bonifacio, namely the Shangri-la at the Fort and the Grand Hyatt Manila; and two Accor hotels, namely Novotel Araneta Center and the Mercure Ortigas Center.
Ryan Chen, director of development for Asia Pacific of Dusit International, said that opening new hotels creates new job opportunities in the hospitality sector.
Dusit International recently announced that it will be opening two projects in Davao, the Dusit Thani Residences and the dusitD2 Hotel. Dusit Thani Residences will be a serviced apartment development.
Chen said they will be “tapping the local labor force to service the properties in line with our global quality standards.” He said they will be hiring hotel staff and crew who will be trained by the international hotel brand.
Chen noted that the luxury projects will help boost tourism in the Davao area and give local entrepreneurs an opportunity to cater to a more diversified tourist market.
The Davao-based projects are set for turnover by 2018.