Ayala Land sees bigger potential in tourism
Few industries play as naturally to the Philippines’ strengths as tourism.
The country already boasts of pristine beaches and rugged mountains, along with a culture that warmly welcomes visitors. Filipinos are traveling more, while diverse destinations give hospitality companies plenty of room to build products for different kinds of trips and travelers.
But for Mariana Zobel de Ayala, senior vice president and group head of Leasing and Hospitality at Ayala Land Inc., the bigger challenge lies on turning those strengths into more economic activity.
“I really feel we have a right to win in tourism,” she said in an interview with Inquirer Property.
That confidence is driving Ayala Land’s hospitality push, though Zobel de Ayala sees growth as more than simply adding hotels. She is looking at where travelers are going, how they spend their time, which price points remain underserved and what brands can meet those needs. In the long term, she is even considering exporting Filipino hospitality.
While it may seem like a lofty idea, it highlights the fact that the Philippines already has strengths other markets spend heavily trying to build.
A case for tourism
Zobel de Ayala believes the country’s advantage begins with Filipinos themselves.
“We have naturally hospitable people, so even without training, even without the upskilling, it’s in our nature to host and welcome people,” she explained.
She sees something unusually Filipino in the enthusiasm with which people receive foreign visitors, an openness that gives the country a strong service culture even before formal hospitality training enters the picture.
The country’s geography adds to that advantage, with its stunning natural destinations that give the Philippines a strong foundation for tourism. All these make a strong and solid case for giving the sector a bigger role in the country’s growth over the coming decade, especially as other established industries face new pressures including geopolitical tensions and artificial intelligence, among others.
Growing with the market
Ayala Land, however, remains realistic about where the market stands today.
While the property giant has potential hotel sites in Makati, Arca South and Circuit, along with another property in Mactan Island, Zobel de Ayala pointed out that international arrivals have not recovered as quickly as they expected. Domestic travel, while it remains active and attractive, is meanwhile a different market.
“We’re just being quite thoughtful about our growth in hospitality. I think our aspirations and hope are significant, but it’s no secret that international arrivals have not picked up as fast,” she said. “We’re using this chance to reflect and temper our rollout.”
Still, Zobel de Ayala remains bullish on tourism, but the company is now matching new investments more closely with actual demand and with the travelers each brand is meant to serve.
Different trips, different hotels
In Ayala Land’s case for example, it has brands like Seda and Huni.
Seda is Ayala Land’s strongest homegrown hospitality brand, serving business and leisure guests in cities and tourism destinations. Zobel de Ayala said Seda still has room to grow, with its appeal rooted in a familiar, full-service experience for its guests.
Huni, meanwhile, is positioned as a more affordable option for adventure travelers who spend most of their day exploring. She cited La Union, Siargao and Bohol as examples of destinations where the concept could work, while clarifying that these are not announced locations.
Addressing the gap
But there is also that gap in the middle, according Zobel de Ayala, between accessible accommodation and the luxury end of the market.
“We feel that there are other segments that are underserved in hospitality,” she added.
Citing a third-party study, she pointed to the roughly $200 to $400 range, a segment that markets such as Thailand have developed more extensively. She sees this space eventually “being interesting for the Philippines” as well.
At the other end of the spectrum, Ayala Land is preparing for the return of Mandarin Oriental Makati, Manila, which is scheduled to open to the public on Dec. 14, restoring a luxury brand long associated with the city.
Its opening further broadens Ayala Land’s reach across the hospitality market. Huni caters to more practical travelers, Seda serves business and leisure guests, while Mandarin Oriental adds to its roster of international luxury offerings.
No doubt, the Philippines already has much of what it needs: strong destinations and a culture known for welcoming visitors. The challenge now is to give those strengths the scale, investment, infrastructure and hospitality products they deserve, and Ayala Land is ready to help make that happen.
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