Investing in Philippine Golf Courses: A Rising Opportunity

Just a few years ago, the idea of the Philippines as a golf tourism hotspot might have seemed far-fetched. Today, the sentiment has changed dramatically. Government officials have positioned golf tourism as a strategic pillar of national development, seeing it as a way to attract high-value travelers and spur development. “Golf tourism represents a promising frontier for the Philippines,” said Tourism Secretary Christina Garcia Frasco at the country’s first Golf Tourism Summit, noting a proactive push to develop this niche as part of the tourism portfolio. The Department of Tourism even created a dedicated office to oversee golf tourism – a first in Philippine history – signaling official commitment to this sector.

This surge is no coincidence — it aligns with a broader travel rebound and infrastructure boom. The country is enjoying a broader travel rebound and infrastructure boom. New airports and highways have cut travel times to scenic areas once considered remote. Nowhere is this more evident than Clark. Clark’s upgraded international airport has direct flights from across Asia and the Middle East. Within a half hour’s drive are over a dozen quality golf courses, with three more under construction. “Clark is set to become a major international golf destination. It has all the ingredients,” says Mark Siegel, managing director of Golfasian, Asia’s largest inbound golf tour operator. He notes that many golf travelers who normally flock to Thailand or Vietnam are now looking for something different – and finding it in Clark’s mix of accessibility and affordability.

Beyond Clark, other regions are also catching investors’ eyes. Cebu, in the Visayas, has long had a few established courses, but is now being positioned to lead a “revival of golf tourism” in the central Philippines. In the cooler highlands south of Manila, Batangas and Cavite offer panoramic settings near beach towns and lakes – prime spots for combining golf with resort living. These regions are seeing new projects that combine world-class golf with beach clubs, vineyards, and luxury residential estates.

Big Players, Bold Plans: From Tycoons to Global Brands

Major Philippine conglomerates and international investors are driving the country’s golf development boom. A prime example is business magnate Manuel “Manny” Villar, the billionaire developer behind Vista Land. Villar is building an 18-hole championship golf course as the crown jewel of Villar City, a massive 3,500-hectare “megalopolis”.

Up in Clark’s New Clark City, another ambitious development is underway: the Hann Reserve, a 450-hectare ultra-luxury estate being built by Hann Development (led by Korean investor Daesik Han). The estate will include three 18-hole courses designed by golf legends Nicklaus, Faldo, and K.J. Choi, plus multiple five-star hotels (such as Banyan Tree and Westin), a casino, an international school, and even a public nature park. The price tag? Estimates top 4 billion dollars for full build-out.

Other major Filipino developers are also in the game. Megaworld’s Global-Estate Resorts Inc. (GERI) recently announced Lialto Beach and Golf Estates in Lian, Batangas – a 150-hectare seaside property that will include an eco-friendly 18-hole course surrounded by a residential village. The company has earmarked 5 billion pesos (roughly 90 million dollars) for Lialto’s first phase over 10 years.

From Groundwork to Greens: What It Takes to Build a Golf Resort

Behind every dream golf resort is a daunting development process. It starts with a lot of land. A standard 18-hole championship course typically requires on the order of 60 to 80 hectares of terrain. That doesn’t include extra space if you plan to add villas, hotels, or other amenities. Many developers therefore look to the outskirts of cities or emerging provinces where land is still available – areas like Pampanga (Clark), Tarlac, Batangas, or estates outside Cebu.

Land acquisition alone can consume nearly half of the total project budget. Prices vary widely by location: in central Luzon provinces like Pampanga or Tarlac, raw land suitable for development might fetch anywhere from 800 to 5,000 pesos per square meter (depending on proximity to infrastructure) – roughly 15 to 90 dollars per sqm. A 100-hectare site could easily start at around one billion pesos, depending on location. It’s no wonder one of the first moves many developers make is forming joint ventures or securing financing partners to bankroll the land purchase.

Then comes the task of actually designing and constructing the course – a blend of art, science, and engineering. Top-caliber golf architects are often hired to ensure the layout isn’t just challenging but also takes advantage of natural contours and views. Developers also invest in landscaping and earthworks: shaping the landscape, constructing greens and bunkers, and installing proper drainage and irrigation systems. In tropical Philippines, heavy monsoon rains mean drainage is critical – a modern course might spend 50,000 to 100,000 dollars on drainage systems alone to keep fairways playable year-round.

Add to this the clubhouse and facilities – often luxury structures with restaurants, pro shops, spas, and locker rooms rivaling five-star hotels. A clubhouse can cost anywhere from a few thousand dollars per square meter to build, easily running into tens of millions for a large, opulent center.

All told, building a single new 18-hole golf course with a clubhouse can cost anywhere from 1.5 to 2.5 billion pesos (approximately 30–50 million dollars), according to industry estimates. And that’s a conservative range. Ultra-luxurious projects with multiple courses (like Hann Reserve’s 54-hole plan) can soar far higher. It’s a heavy lift financially – but the potential pay-offs come in multiple streams.

Earning Its Keep: Revenue Streams and ROI Strategies

How do investors plan to make money back on these massive developments? The answer lies in diversified revenue streams and long-term plays. Firstly, there’s the direct golf income. A well-run championship course can host tens of thousands of rounds per year. At green fees of, say, 3,000 pesos per round (about 50 dollars) for tourist-heavy courses, that’s a significant chunk of revenue. Membership sales provide an even bigger upfront boost: it’s common for new clubs to pre-sell proprietary membership shares – essentially lifetime playing rights – to wealthy individuals and corporations. Pre-selling a few hundred memberships can cover a significant portion of initial development costs – for example, 500 memberships at 1 million pesos each would raise 500 million pesos.

Then there’s the hospitality and tourism angle. Golf resorts in the Philippines are almost always conceived as mixed-use leisure destinations. Green fees alone are rarely enough to sustain the business, so developers aim to create an ecosystem of spending. Resort hotels on-site cater to visiting golfers. These guests pay for accommodation, meals, spa treatments, and guided tours. Many golf resorts also market themselves as event venues – hosting weddings, conferences, and tournaments. A high-profile tournament can bring in not just publicity but also sponsorships and broadcast fees.

Perhaps the biggest financial driver, however, is real estate development. Almost every new golf project doubles as a real estate play. The formula is tried and tested globally: build a beautiful course, then capitalize on the surrounding land by offering premium home lots or villas. Philippine developers have embraced this model. In Batangas, Megaworld’s Lialto estate will include a residential village where lot owners effectively have a golf course in their backyard. Similarly, in Clark’s Mimosa and upcoming Hann Reserve, you’ll find plans for villas, condominiums, and even branded residences whose buyers are attracted by the idea of a verdant, recreational environment at their doorstep. These property sales can be immensely profitable. A luxury villa on a golf estate can fetch tens of millions of pesos, meaning that selling a few dozen homes could cover the cost of building the course.

Finally, investors consider exit strategies and long-term value. Some developers aim to operate the resort for the steady cash flow and even form their own hospitality brands. Others target long-term gains through future asset sales, REIT listings, or strategic joint ventures. For example, Filinvest Corporation acquired the Mimosa golf and hotel complex from the government in 2016 and has since been expanding it. The property’s value has undoubtedly increased with the addition of new hotels and malls on-site. Down the line, we might see more deals where established golf resorts are sold to international hotel chains, real estate investment trusts (REITs), or even professional golf operators, allowing the original investors to cash out handsomely. In some cases, developers might also tap the capital markets – one prominent golf resort operator, Hann, even floated the idea of an IPO to fuel its expansion.

Challenges and Prospects: Is the Bet Paying Off?

These projects are capital intensive and require patience – it may take 5 to 7 years (or more) to turn profitable. There are also environmental and regulatory hurdles: securing permits, ensuring sustainable water use for irrigation, and integrating with local communities. However, early indicators suggest that many of these new projects are striking a chord. Demand from golfers – both local and foreign – is rising, and real estate buyers are snapping up properties in golf communities as a post-pandemic preference for open spaces and wellness-oriented living grows.

Industry analysts are notably upbeat. Roy Golez, director for research at Leechiu Property Consultants, points out that the Philippines still has far fewer golf courses than some of its Asian neighbors, hinting at untapped potential. “We have 125 courses; Malaysia has 248, Thailand 315,” Golez noted, emphasizing that developers remain bullish because golf boosts the value of leisure communities and draws tourism. In short, there’s plenty of room for growth.

In conclusion, the Philippines’ golf development boom is more than just a real estate trend – it’s a convergence of tourism, lifestyle, and investment savvy. There are enormous upfront costs and challenges, but for those who manage to deliver a great product, the rewards can be manifold. From Clark’s plains to Batangas’ shores, investors are planting their stakes (and stakes for flagsticks) in the ground, hoping to craft the next golfing paradise.