INVESTORS are positive about the medium- and long-term growth outlook of the Philippine hospitality sector, a new report showed.

In the 2024 Philippine Hotel Investment Outlook Survey, 89 percent of the respondents, comprising hotel owners and operators in the Philippines, said they have a “positive outlook” about the overall hospitality industry for the next one to three years.

Confidence was even more robust for the long term, with 95 percent of respondents believing the industry would thrive beyond the next three years.

“While the pandemic initially halted many hotel developments and the high cost of capital has put others on hold, investors in the Philippines are now ramping up efforts to initiate new hotel projects,” the report read.

This shift, it said, comes as demand rebounds and supply shortages emerge in various destinations across the country.

The survey, conducted by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants, was released during the 1st Philippine Tourism and Hotel Investment Forum Summit at the New World Makati Hotel on Friday.

The respondents represent more than 10,000 keys in the industry, spanning properties across major cities and market segments in the country.

Meanwhile, the survey also showed that investors still have “mixed feelings” about the short-term industry prospects due to inflation driving up the costs of transportation, goods and services, all of which impact both tourists and hotels.

“With hotels only beginning to resume full operations in 2023, investors are still working to recover from pandemic-related losses. This period also presents an opportunity for operators to address shifts in guests’ demands and preferences,” the study read.