Tourism Driving Growth in Philippines
As the country develops the tourism industry in the Philippines this could sustain the growth of the real estate market. The market has steadily grown since the 2008 global financial crisis and has been driven by the growing business process outsourcing industry (BPO), steady streams of foreign exchange sent home by millions of Filipino working overseas, and the ever expanding tourism industry.
The biggest indicator of real estate expansion is the purchasing of office space, which has been beating previous years’ averages. Many BPO companies are acquiring the office space before it is even finished to ensure that they beat out the demand. As stated by Sheila Lobien the director for project leasing, “The occupancy rate in metropolitan Manila is more than 90% on average, while office rent in the financial district is already approaching the high in 2008.” This means good news for the real estate sector as demand increases, the value of properties will likely increase.
The largest grossing activities in the Philippines include the BPO industry generating revenue of $13 billion, while overseas Filipino workers sent home around $21 billion. Tourism is anticipated to be the other component that steers the economy upwards. The Philippines attracted 4.27 million visitors in 2012 which generated $4 billion for the economy, according to the World Tourism Organisation. This number is anticipated to rise to 5.5 million this year, and reach 10 million by 2016. This upward expansion will mean good things for the economy and therefore the property market.
Quotations and Statistics taken from “Tourism will Sustain Philippine Property Sector Growth” by Cris Larano.