Practical Motivations for Opening a Hotel Business in the Philippines

In the hotel business, there are a lot of variables to success that may be out of your hands. After all, you can't fully control the flow of tourists or visitors in any location, or stop natural disasters from happening. Of course, you may be able to do some effective marketing to alleviate the situation, but that may only cause tiny ripples to a whole ocean of causes and effects. But however bad these things may seem, these should not really pose as deterrents to putting up a hotel business. What you should be checking for instead are these factors:

The Demand

In any business venture, one of the most significant questions you should ask yourself is "Is there a robust market for this product or service?" In the Philippines, for instance, almost any city or province has famous tourist attractions or natural sights. And since the country has mostly favourable weather all-year-round, it means a steady stream of potential clients for the service industry. Indeed, the country is a prime holiday destination for tourists from all over the world. In fact, the country has already attracted more than 2 million visitors for the first half of 2013 already.

The Location

A hotel business could be quite lucrative not only in metropolitan areas--of which the Philippines has no shortage of, but also in locales with numerous tourist attractions. Yes, there are numerous natural and man-made attractions that draw visitors, both locals and foreigners, to almost any province or region in the country. After all, the country has some of the most beautiful world-renowned beaches and tourist spots. And since the archipelago is composed of more than a thousand islands, it is no wonder that Philippines is one of the prime summer destinations in the world.

The Government

According to a recent survey conducted by Standard Chartered Bank, investor confidence in the Philippine government is rising. In fact, the country's capital beat Jakarta in Indonesia, Bangkok in Thailand, Kuala Lumpur in Malaysia, and Singapore as the frontrunner among leading cities in the South East Asian region. Of the 900 investors in the ASEAN region that were involved in the survey, 74% believe that the Philippines has the best prospects for business. Moreover, investors are confident that the government will continue to see improvements as it continues to keep expenses controlled and encourage more local investments.

The Human Resource

Another favourable factor for business in the country is its great human resource. The Philippines is one of the leading suppliers of trained personnel in the world. One of its biggest industries at the moment is its Business Process Outsourcing. Not only that, compared to other human resource, the country offers investors relatively low labour costs. So yes, the country is a great resource of trained and relatively low cost personnel. This means that compared to other countries, the potential for revenue and at the same time, low overhead expenses in the Philippines is quite high.

Aside from these factors, investors also think that the country's stable government, average housing costs, personal security, and low office lease costs are quite good for business. For instance, you can find an office space for rent in Ortigas or in other locations in Manila at a reasonable cost.

For budding entrepreneurs, among the easiest and hardest questions posed to them when they first set up any kind of business are those that start with the word "why". They can be among the easiest because reasons can be purely personal and may almost always be acceptable however irrational they may be. They can also be the hardest questions because once you do start to contemplate about the pertinent considerations--for you really have to since your venture's success and the return of your investment may depend on them, you may get a lot of mitigating factors that may dampen your resolve in seeing your business beyond the planning stages and through completion. But if you really want to not just be an entrepreneur, but a successful one, then you may want to ask some of the above pertinent questions first; before "taking the plunge", so to speak--especially if you're planning to go into the hospitality industry.

Author Bio:

Regus is a global provider of flexible workspaces, virtual offices, and meeting facilities to businesses of any size and shape worldwide.