Tourism, manufacturing winners in PH’s new land lease extension regime

Philippine lawmakers has approved a landmark policy to almost double foreign land leases from 50 years to 99 years, which is expected to attract substantial foreign investments.

According to Colliers Philippines director for research Joey Bondoc, this will create significant opportunities for the property sector, particularly in tourism and manufacturing, while helping achieve the target of 12 million international visitors by 2028.

Target first half of 2025 

The law could be fast-tracked by Congress, with passage expected within the first semester of 2025, Bondoc said in text message to InsiderPH. 

“I think it was approved on 3rd reading in both  houses. And it's a priority [of President Marcos] so I  guess they will  expedite it before lawmakers get busy with the campaign season,” he said. 

Joey Bondoc 

Colliers PH director for research 

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According to Colliers, the extended lease term is vital for foreign businesses aiming for long-term profitability in the Philippines. 

Hospitality developers are expected to collaborate with international brands to establish resorts and convention centers, supported by ongoing infrastructure upgrades like airport modernization.

"Overall, it will redound to a more competitive market benefiting local consumers. Local players should  eventually benefit given the best and globally-recognized practices to be brought by foreign players to the Philippines,” the research consultancy group said. 

Manufacturing boost 

In manufacturing, the policy is expected to attract global players to set up facilities, prompting the expansion of industrial zones beyond established hubs such as central Luzon and the Cavite-Laguna-Batangas corridor. 

Colliers noted this could create jobs, enhance supply chains, and position the Philippines as a competitive hub in Southeast Asia.

“With more foreign manufacturers, we see property firms expanding their industrial parks and warehouses as they capture demand from these foreign locators,” Colliers said. 

“This should result in a more robust industrial sector in the Philippines and enable the country to attract  multi-billion manufacturing [foreign direct investments], similar to what our ASEAN peers such as Vietnam, Indonesia, and Thailand attract. This should help position the Philippines as a manufacturing hub in Southeast Asia,” it added.