The Gokongwei Group’s Robinsons Hotels and Resorts (RHR) is poised to capitalize on what it expects to be a stronger growth for the country’s tourism industry in the coming years, fueled by measures implemented by the government.
RHR senior vice president and business unit general manager Barun Jolly said the country’s tourism industry is expected to further build momentum with the help of the government’s pro-tourism initiatives.
‘The Philippines has still not recovered from 2019 to now, in terms of net arrivals. However, net tourism receipts have increased. For us, as a hotel, we’ve always been leading the market. So we are well above 2019 numbers,’ Jolly said.
‘And we have seen that pretty much starting quarter two last year. The growth has been quite good, particularly in terms of high spending on food and beverages. People are willing to pay more for rooms. So it’s been very strong,’ he said.
Data from the Department of Tourism showed that the Philippines has recorded 3.96 million foreign arrivals from January to August.
‘And I think right now, it’s not about sustaining. I think the momentum will only get bigger and better in the times to come because the government has taken a couple of very pro-tourism measures, which, as you know, will take time to show results. But once they show results, the momentum gets even higher,’ Jolly said.
Jolly cited visa-free entry for Indian tourists and value-added tax (VAT) refund as among these major pro-tourism measures.
‘India, which is one of the largest outbound markets globally, is going visa-free for the first time for the Philippines. Starting the third quarter this year, it’s visa-free. Starting October this year, we have five weekly flights from Delhi to Manila,’ Jolly said.
‘These two things did not exist until last year. And you’re talking about a market that’s 1.4 billion, out of which, easily, at least a couple of hundred million travel every year. So it’s really big. It’s a huge win. I’m quite thankful the government has taken a step in that direction,’ he said.
Jolly said that RHR, for its part, is ready to welcome Indian tourists and cater to their unique food requirements, noting that the company’s big hotels already offer Indian food items as an option.
‘Just like the travelers from the Middle East, Indian tourists’ food requirements are very specific. Our teams are already trained. A couple of our major flagship hotels have Indian chefs on staff. Our menus have that offering. So we are quite attuned to it,’ he said.
Jolly said that the VAT refund is also a positive boost to the country’s tourism industry.
The Philippines became VAT-free for foreign tourists earlier this year with the signing of the implementing rules and regulations for Republic Act 12079, or the VAT Refund for non-resident tourists.
‘You see, for an upper-up segment and for a luxury segment, VAT refund can be a big saving. And it drives a lot of tourism in markets like Japan. So as time moves on, you will see a lot of people also travel to the Philippines, not just for wonderful beach destinations, but also for shopping,’ Jolly said.
‘And I see especially India, Indonesia and Vietnam, these three markets choosing the Philippines because of VAT refund as a shopping option,’ he said.
RHR is a diversified hotel group with six homegrown brands and four international brands in its portfolio. It has 31 hotels in 20 locations, with 5,100 room keys.
To capitalize on the industry’s momentum, RHR is aggressively expanding its portfolio with the addition of 1,300 room keys over the next three to four years. The company plans to introduce its homegrown luxury and ultra-luxury brands to more locations across the country.