Tourism has traditionally been a key sector in the Philippines, reflecting the country'sreputation as an attractive destination. Rising tourist numbers will buoy demand foraccommodation. However, many of the major domestic and international hotel groups appear slightlyreluctant to improve their presence in the area. Small, independently owned properties will continue toflourish. In addition, while inbound tourism is set undergo significant growth over 2017-2021, we highlightthat this growth will remain contingent on a significant reduction in terrorism risks. While the governmentis keen to improve marketing of the country to the international market, security concerns pose significantdownside risks to our growth outlook as they are a major deterrent for international visitors, particularlythose coming from North America and Europe.
Key Updates And Forecasts
Terrorist attacks can occur on a wide territorial basis but are generally more frequent in southern regionswhere separatist insurgencies are ongoing, with kidnapping posing a particular risk to foreigners.
Criminal activity occurs throughout the country but is more likely to affect operations in Manila. Lookingahead, it will be difficult for the government to encourage tourism to the less established potential touristareas of the country due to prevailing security risks. In 2017, there continued to be ongoing armedconflict between government forces and militants in Marawi City, Mindanao. Martial law is in placeacross the whole of Mindanao until the end of December 2017. All travel to western and centralMindanao and the Sulu archipelago remains dangerous due to terrorist activity and clashes between themilitary and insurgent groups.
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