The Philippines is located deep within the Southeast vicinity of Asia. Positioned favorably at the warm foothills of the urbane western world and the great Orient. It is made up of a cluster of about 7,000 islands; its three major islands are Luzon, Visayas, and Mindanao. However, the extent at which the Philippines is reachable is not limited to only the three major islands. Its unmatched geographic location has made the Philippines the commercial, cultural and intellectual hub of Asia over the course of time backed by the development of trade and commerce. This is an exponential reason why the Philippines has proved to be an excellent location for investment in various industries. Here are the 7 best-performing industries in the Philippines to invest in.
1.) Travel and Tourism
The Philippines takes pride in its scenic beauty and lavish tourist destination. Some of the most popular places are Bohol, Boracay Island, Aklan, and El Nido. The Department of Tourism announced that the figure of foreign tourists’ visitations hit a whopping 6.6 million in 2017, that is an 11% increase as compared to the preceding year, 2016. For 2018, the Department of Tourism has projected the figure to rise up to 7.4 million. A big chunk of the GDP was occupied by returns in the travel and tourism sector. With an increase in growth, comes increased demand. Specifically, demand for services, packages, offers, facilities, accommodations, trips, transport, food and beverages, cafes and dining areas and other related tours and travel related services. The numbers speak a true fact, and the fact is that the travel and tourism sector in the Philippines is a smoothly functioning system which provided a significant amount on returns on investment (RoI).
The Philippines has predominantly always been an agrarian economy. The Philippine Statistics Authority (PSA) announced that agriculture, forestry, fishing, and other such activities have accounted for 9.3% of the country's total GDP, in the last quarter of 2017. The growth rate is 2.4%. If this momentum is maintained throughout the next year, the investments made by the investors will reap into fruitful returns. Being a tropical country, the Philippines holds a massive agrarian land mass, extending to 9.7 million hectares of fertile soil suitable for crops like rice, coconut, pineapple, mango, paddy, sugarcane, corn, maize, cassava, coffee, tea, bamboo, banana, and cacao. Moreover, the country also produces healthy poultry and livestock.
3.) Real Estate
As the population keeps increases, there will always be demand for property and spaces. Real Estate is an industry in which investors can hardly ever go wrong with. In the Philippines, it is a fairly sustainable market with substantial momentum and an attractive potential for high returns as investors can access a whole market of home seekers, students, young professionals and of course ever-growing families and households. But what earned the real estate industry a spot on this list is the voracious amount of annual foreign direct investment it receives; a very blatant indicator of just how alluring this industry is to foreign investors.
Ever since the last decade, Business Process Outsourcing or BPOs have been one of the fast-paced and rapidly expanding industries in the Philippines. BPOs have emerged as the top contributors to the Filipino economy. The Information Technology and Business Process Association of the Philippines (IBPAP) has forecasted that the BPO industry is bound to generate a revenue of 40 billion USD, produce 7.6 million direct and indirect jobs within the sector, and account for 15% of the aggregate global outsourcing market. Thus, making the BPO industry a flourishing sector to invest into.
The retail industry in the Philippines is thriving due to the current inflation rate. The aggregate rate of purchase and consumption among consumers are still high adding on to the need for the budding retailing stores. Statista, an online market research portal, suggests that retail sales will maintain its pace at which it is growing over the due course of the next 5 years and result in a 5.5% increase by the end of this year. A multitude of shopping malls, retail outlets, department stores, and convenience stores will continue to spring up in various cities and towns in the Philippines and carry on being a profitable investment for investors.
The Department of Trade and Industry (DTI) has recently stated that the Filipino Government is opening up the construction industry to foreign investors with the idea that these investors can potentially become local contractors by providing them construction permits. Thus, this is an ideal time for foreign direct investors to invest in the construction sector. The PSA has reported a growth of 16.1% towards the end of 2018. Taking part in the infrastructural development of the country will ensure its rise into becoming an infrastructure hotspot for Filipino engineers as well as foreign investors.
The healthcare industry is accelerating at a substantial rate. The total health expenditure grew by 8% in 2017, which was worth 712 billion Php. Its overall contribution to Philippine's GDP was 4.5%. In fact, an average, each Pinoy spent about 6,791 Php exclusively on healthcare in 2017. Two prime indications of the rate of healthcare system advancement in the Philippines are the acquisition of multiple hospitals by Metro Pacific Investments and the incline in the availability of options in the HMO industry.
Thus you can see that the Philippines turns out to be a booming platform for the above-mentioned industries. Incorporating a business in a foreign land turns out to be much easier with the presence of a helping hand. Business Setup Worldwide is a consulting company. We specialize in helping out entrepreneurs and firms with by providing updated and firsthand knowledge about company incorporation in different locations all across the globe, with the basis of revised and up to date information about the business environment. To know more, contact us – we’d be happy to help!