Beyond Numbers: Culture, Purpose, Innovation Drive the Conversations at the Philippines Hotel Summit 2025
Tourism Secretary Christina Garcia Frasco. Photo by the Department of Tourism.
Philippine tourism is on a steady rise. But this time, it’s more than numbers. It’s about sustainability, cultural pride, and innovation shaping the country’s hotel industry. In her opening remarks at the Philippine Hotels Industry Summit 2025, Department of Tourism (DOT) Secretary Christina Garcia Frasco laid out the steps necessary to elevate Filipino hospitality, from eco-conscious practices to digital solutions.
Placing Sustainability at the Core
“Sustainability remains at the heart of our efforts to boost the Philippine hotel industry,” Secretary Frasco began.
These aren’t just words. The ASEAN Green Hotel Standards have already recognized over 60 Philippine hotels for their environmentally responsible practices.
DOT has pushed further. New enhancements to the National Accommodation Standards mandate proper waste segregation, the use of reusable drinking containers, the integration of renewable energy resources, and the overall conservation of energy use in hotel and resort operations.
"These developments align with our goal of creating a hospitality industry that prioritizes efficiency without compromising guest comfort," declared Secretary Frasco.
Building a Filipino Identity
Sustainability is only one part of the equation. Secretary Frasco introduced a unique initiative called the Filipinization Labeling Program. This program champions Filipino culture as a brand differentiator, encouraging accommodation establishments to showcase local architecture, culinary traditions, music, performances, and art.
“By weaving our national heritage into the guest experience, we enrich our industry's authenticity while driving community engagement and economic development,” she said.
Training That Delivers Results
Excellence, grounded in Filipino hospitality, continues to elevate the industry. The Filipino Brand of Service Excellence is a training program that embodies this commitment. Since 2022, more than 269,000 tourism workers have been trained in the art of service that is "globally competitive but always authentically Filipino."
This endeavor was lauded internationally, garnering the Training Program of the Year Award at the GovMedia Conference and Awards 2024 in Singapore. Secretary Frasco praised the sector’s collaboration in adopting the program, remarking, "Excellence in service defines the Philippine hospitality brand."
Enhancing Experiences with Modern Solutions
Secretary Frasco also reinforced the role of digital innovation. The enhanced Travel Philippines app offers visitors a wealth of region-specific information while the Hop-on Hop-Off Bus Tours mobile app modernizes city tours and offers guided tours in selected destinations.
The Department has also established partnerships with platforms like Klook to expand the market reach of Philippine tourism offerings.
Inclusive Tourism, Bigger Opportunities
DOT is advancing inclusivity with its Muslim-friendly and halal tourism initiatives. Secretary Frasco invited the hotel industry to join this initiative, citing that the segment is one of the fastest-growing and most highly valued worldwide.
"This approach not only accommodates a growing segment of international travelers but also affirms our collective effort to extend genuine Filipino hospitality in the most inclusive way possible.
The Department has launched several initiatives to boost the country's appeal as a halal and Muslim-friendly destination. One notable effort is the issuance of Memorandum Circular No. 2024 – 0003 or Amended Guidelines Governing the Operations and Recognition of Muslim-Friendly Accommodation Establishments. This circular establishes standards for accommodations, restaurants, and services tailored to meet the specific needs of Muslim travelers.
“This approach not only accommodates a growing segment of international travelers, but also affirms our collective effort to extend genuine Filipino hospitality in the most inclusive way possible.”
In December 2024, DOT recognized Megaworld Hotels and Resorts (MHR) as the first Filipino hotel chain to achieve 100% Muslim-Friendly Accommodation Establishment (MFAE) certification.
Marhaba Boracay, a first-of-its-kind Muslim-friendly cove to cater specifically to Muslim families and travelers
MHR’s Savoy Hotel Boracay offers Muslim-friendly accommodations, featuring prayer areas, Qibla directions, and prayer mats in the rooms. Guests can also enjoy halal dishes during their stay.
Photos by Savoy Hotel Boracay
A Snapshot of Industry Growth
The Philippines welcomed over 5.9 million international visitors in 2024. Secretary Frasco pointed out that although the numbers are lower than some ASEAN neighbors, the spending per visitor was notably higher. International visitor receipts hit a record PHP 760 billion, a 126% recovery from the pandemic.
Travelers are staying longer in the Philippines, with average stays increasing from 9 nights in 2019 to 11 nights. “This has also allowed the Philippines to rise above its competitors in terms of tourism spending per capita at USD 2,073.”
Secretary Frasco also reported that the World Travel and Tourism Council ranked the Philippines number one in domestic tourism in Southeast Asia, valuing it at over USD 66.2 billion.
"Most importantly, these numbers have translated to what matters most: jobs and livelihood for our fellow Filipinos. Tourism employs approximately 16.4 million Filipinos all over the country in direct and indirect employment. These numbers paint a very clear picture. The Philippines boasts a robust domestic tourism base and a high-yielding international market, an ideal combination that assures stable demand for hospitality investments."
Rethinking Hotel Expansion: Unlocking Growth in Lesser-Known Destinations
Expanding into secondary and tertiary locations creates new growth opportunities and reshapes the hospitality industry. In the panel discussion Rethinking Hotel Expansion: Tapping into New Opportunities Beyond Popular Tourist Spots, industry leaders shared insights on balancing the challenges and benefits of such ventures and the crucial role of sustainability for long-term success.
“Rethinking Hotel Expansion: Tapping into New Opportunities Beyond Popular Tourist Spots” panel. From left: Moderator Garry Garcia (Regional Director of Operations & Development - Philippines at Swiss-Belhotel International), panelists Alfred Lay (Director of Hotels, Tourism & Leisure at Leechiu Property Consultants), German Paulo de Mesa (Design Innovation Director at Palafox Associates), Fenady Uriarte (Director of Development at Cross Hotels & Resorts), and Chris Cho (Vice President Development Singapore, Philippines, Japan, Korea and Maldives at Accor). Photo by Escom Events.
The Costs of Expanding to Uncharted Areas
Alfred Lay, Director of Hotels, Tourism, and Leisure at Leechiu Property Consultants, highlighted the economic realities of hotel development in emerging destinations.
Land value challenges
“Land values at the moment are quite exorbitant. They’re not grounded in the realities of how much it costs to build a hotel, operate, and project returns compared to other investment vehicles,” he explained. This disconnect makes building hotels from scratch challenging in new locations and raises concerns about the environmental and social costs of overvalued land acquisitions.
High-risk environment
Lay emphasized the importance of weighing risks carefully and connected these difficulties to broader economic trends. “You definitely want a strong spread versus some of the other outcomes out there. If equities offer a 10% to 12% return, hospitality has to deliver more because you’re taking on greater risks.”
The long game
Early investment in underdeveloped locations can yield success, as seen with projects like Shangri-La’s ventures in Mactan and Boracay. However, Lay stressed the importance of conducting thorough market studies and feasibility assessments to avoid failure in underdeveloped destinations.
Key Considerations for Development
Chris Cho, Accor's Vice President of Development, highlighted three pillars of successfully expanding hotels into new areas.
Location
Before deciding to go ahead with a hotel investment, you must ensure you have the right location.The right brand
Don’t be overly ambitious. Not every location can sustain a five-star luxury resort. Be realistic with your brand’s positioning.Market targeting
The market you’re trying to cater to is critical. A mismatch between the brand and market demands can spell disaster.
Fenady Uriarte, Director of Development at Cross Hotels & Resorts, brought a fresh perspective by focusing on immersive, community-driven experiences.
She shared examples of successful projects in which properties became destinations themselves, drawing travelers who value novelty and culture as much as luxury.
“Our properties allow travelers to engage directly with communities, whether planting rice alongside locals or supporting local crafts,” Uriarte explained.
Cross Hotels & Resorts offers guests a variety of immersive community-based activities, including rice planting, traditional crafts, cooking local delicacies, and scenic cycling adventures. Photos by Kaura Bali.
Designing for Durability and Sustainability
German Paulo de Mesa, Design Innovation Director at Palafox Associates, highlighted how sustainable design principles can make developments more viable in emerging areas.
Community-centric development
A hotel’s success is directly tied to the success of the community in which it is built. Projects must respect and elevate local people and their environment.
Smart analysis, not just smart technology
De Mesa clarified, “Smart design doesn’t mean solar panels or new materials. It means thoughtful insight and data-driven decisions.” This approach ensures designs align with local context and practical needs rather than trends.
Long-term resilience
“The most sustainable building is the one you don’t demolish,” he noted, explaining that projects built for durability serve both the planet and investors by reducing long-term costs.
His example of their project in Siargao, where a small resort became a typhoon relief hub, showcased how sustainable design can provide both hospitality and community value.
“We have to design hotels not just for aesthetics but for resilience,” he said, emphasizing flexibility and mixed-use components to maximize functionality.
Revitalizing Domestic Tourism: Hotels Driving Local Travel
Hotels that are carefully developed and managed can contribute significantly to economic growth and local tourism. This concept was emphasized during the summit's panel discussion on domestic travel, where experts shared practical strategies for encouraging community involvement and crafting unique guest experiences.
“Revitalizing Domestic Tourism: The Role of Hotels in Supporting Local Travel” panel. From left: moderator Joey Bondoc (Research Director at Collier), panelists Kash Aristotle Salvador (Director of Development, Philippines at Accor), Bastien Touzeau (Regional Vice President - Development for Indonesia, Malaysia, the Philippines at Hyatt International Asia Pacific Ltd.), and Jeremiah "Jem" T. Pampolina (Chief Sustainability Officer|Chief Compliance Officer, VP - Investor Relations & Corporate Planning at Sta. Lucia Land Inc.). Photo by Escom Events.
Partnering with Local Governments and Communities
Strong connections with stakeholders on the ground are fundamental to building meaningful projects. Jeremiah T. Pampolina, Chief Sustainability Officer and VP of Investor Relations and Corporate Planning at Sta. Lucia Land Inc., described how their projects depend on close partnerships at every level of governance.
Working hand-in-hand with Local Government Units (LGUs)
“You have to be in that community. From the governor down to the barangay captain, even the councilor, that’s how our country is. You give value first before you ask,” Pampolina said, emphasizing their "hand in glove" relationship with stakeholders.
Building local ecosystems
Sta. Lucia builds residential developments that complement their hotels by creating jobs and boosting local economies. Pampolina noted, “When you contribute to the growth of the province, they give back.”
Bastien Touzeau, Regional Vice President - Development for Indonesia, Malaysia, the Philippines at Hyatt International Asia Pacific Ltd., echoed this community-centered approach. “Our presence benefits not just the operator or owner but also the local community. We buy local, we hire local, and we introduce our guests to experiences they may not have thought of before,” he said.
Touzeau also highlighted Hyatt’s global program, RiseHY, which has committed to hiring 10,000 young people by the end of 2025. “We focus on youths who don’t have access to education or employment. It’s our way of giving back to the communities surrounding our hotels,” he explained.
Culinary Innovation as a Tourism Magnet
As Kash Aristotle Salvador, Director of Development (Philippines) at Accor, pointed out, food is important in encouraging travel and longer stays. Food concepts drive people to travel and explore new destinations,” Salvador said, explaining how unique dining options add value to properties.
Food offers more than sustenance; it becomes a cultural experience. Well-curated F&B (food and beverage) options allow hotels to showcase local flavors, traditions, and innovation. For travelers, exploring a hotel’s culinary offerings often becomes a reason to visit or stay longer.
Salvador noted the impact this can have on property revenues, with “around 25% of income coming from F&B.” Travelers often plan their visits around trying new and unique food offerings, adding more depth to their experience.
Hyperlocal Engagement
When talking about connecting with local guests, Touzeau shared how aligning with everyday habits can spark interest. “We started communicating through Viber rather than WhatsApp because that’s what resonates with Filipinos,” he remarked. This shift wasn’t just about convenience; it reflected cultural understanding.
Filipinos use Viber more widely in their personal and professional interactions. Hyatt’s willingness to adapt showed their commitment to tailoring their engagement to the local market. “Guests appreciated this small change, and it improved engagement,” Touzeau elaborated. By meeting people on familiar platforms, the brand showed respect for local preferences, which naturally built rapport and trust.
At the end of the discussion, Touzeau stressed the importance of measured growth and encouraged developers to remain mindful of the risks of overtourism.
“Grow, yes, but grow with intent. Some places that were incredible years ago are now overcrowded. Build with purpose, ensuring tourism enhances a destination rather than exploits it.”
TL; DR - Key Takeaways:
Thoughtful hotel expansion
Building in secondary and untapped markets requires keen attention to location, brand alignment, and reliable partnerships.
Hotels are encouraged to "build with intent," creating properties that preserve natural beauty, respect local culture, and minimize overtourism.
Collaboration drives success
Strong partnerships with local governments and communities are essential for long-term impact. Sharing benefits ensures mutual growth, as seen in strategies where "contributing to the growth of the province" yields reciprocal support.
Supporting local sourcing, employment, and cultural promotion enhances both the destination and the hotel’s reputation.
The power of culinary tourism
Unique food concepts can transform a region into a must-visit destination. Crafting memorable F&B experiences with local flavors boosts guest spending and extends their stay.
Food innovation connects travelers to culture, making it a key driver for exploration and repeat visits.
Enhancing accessibility
Improved infrastructure and reduced travel costs are key to promoting domestic tourism and making once-overlooked destinations competitive.
Communication strategies tailored to local preferences, such as Hyatt's shift to Viber for Filipino guests, show how small changes can enhance guest relationships.
