In a recent meeting, the tourism stakeholders in the country have set an ambitious 8-million foreign visitor arrivals annually starting 2016. A report by Business Mirror said that in a consultation, organized by the tourism committee of the Philippine Chamber of Commerce and Industry (PCCI), stakeholders agreed that the target was “achievable.”
Although the tourism industry is confident of meeting this target, the Philippine Tourism Authority has earlier said the lack of hotels in the country’s prime destinations has hampered the industry’s growth.
These factors make the hotel and resort business a profitable and exciting opportunity. According to industry estimates, one in 10 entrepreneurs is looking at opening a hotel or investing in one, driving growth in the hotel business.
However, the fact that the hotel and resort business may just be where the money is should not be reason enough to get into this industry. “The hotel business is not for everybody. Just like in food; not just because one knows how to enjoy good food makes one a good restaurateur,” said Merril Yu, Y&S 1847 Hotel Investment and Development chief executive officer, at the press briefing for the First Philippine Hotel Investment Conference, which will be held on August 20 at the SMX Convention Center, Mall of Asia Complex in Pasay City.
Yu cited five questions to assess one’s readiness in getting into the hotel and resort business:
1.Why would I want to do it?
“You should ask yourself if you want to put up a hotel just because your ego says so, or do you want to profit from it, or just because it’s what everyone is getting into?” Yu said. The hotel business requires huge capital and those who invest in one must be serious in doing business.