Philippines' retirement villages set to become hotspot for tourists

By Satish Gupta | eTN Asia
International chains such as Hyatt Group and Hilton Group are soon expected to finalize their investments in Philippines' retirement sector.
Retirement villages as a concept is gaining momentum in Philippines. Such villages are being referred as the next tourism hotspot and a major potential source of steady dollar inflows.

Baguio City, Clark, Subic, Tagaytay, Cebu and Davao have been identified as key locations for retirement communities. There are properties being offered by the Philippine Deposit Insurance Corp., Philippine Tourism Authority, Subic Bay Metropolitan Authority, Bases Conversion Development Authority, Social Security System, Government Service Insurance System and other government agencies.

It is being acknowledged that senior officials of the US-based hotel operators Hyatt Group and Hilton Group will visit the Philippines by year-end or early next year to scout for possible investment opportunities in the retirement sector.

Edgardo Aglipay, chairman of the Philippine Retirement Authority, according to Manila Standard Today, said the two groups would look at fields of cooperation with the agency.

"They will look at our facilities and the properties that we are offering [as possible locations]. Their intention is to put up retirement villages in the country," he said. Aglipay reportedly said Hyatt and Hilton, had also ventured into retirement homes. "Old buildings in the US are being taken over by Hilton and Hyatt to be converted to retirement villages. They have expanded from just catering to tourists, who only stay for a limited time, [unlike} retirees stay for the remainder of their lives."

It is being felt that basic healthcare facilities within these communities, however, will be the decisive factor in luring this new breed of tourists.

Another report stated: "Many foreigners, among them Japanese, Americans and Europeans and balikbayans are dying to spend the rest of their life in the Philippines, scouting for investment opportunities that could well serve as their retirement home. At an exchange rate of P50:$1, these retirees with a monthly pension of $2,000 or more could live a luxurious life here. They could spend the same amount in Japan or the US but they would not live a life of comfort because of the higher cost of living in their native land."

October 31, 2006   Posted in: Philippines