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British tourists are among a growing band of people of other nationalities outside Southeast Asia who are discovering the Philippines as a new holiday destination.

John Scott, from hotel investment specialist Asset Property Brokers, said: “Tourism is growing in the Philippines thanks to a combination of natural beauty, friendly culture and highly competitive costs.

“But this success has led to a shortage of high quality accommodation.

“To address this, the government has embarked on measures to increase overseas investment in the hotel industry, including investor tax breaks in its tourism economic zones.”

The nation archipelago, with over 7,000 islands, is already popular with tourists from surrounding countries such as Korea, which in 2008 contributed 19 percent of total visitor numbers, Japan with 11 percent, and China providing 5 percent, according to the Philippines Department of Tourism.

During 2008 there were 87,422 visitors from the UK, representing an increase of 10 percent compared to the previous year. But this growth was outstripped by those from the Middle East, India and the Russian Federation. The number of Russians increased year-on-year by a staggering 34 percent – the highest, while visitors from the UAE grew by 29 percent and from India 14 percent.

Asset Property Brokers has properties available at Blue Coral Resort and Spa, Mactan Island, within 30 minutes of Cebu airport, the Philippines’ second busiest airport. Among many attractions the island boasts reef diving, golf and powder white sand beaches.

John added: “Mactan is one of the first areas to benefit from tourism economic zone tax breaks, with 12 percent VAT removed. Also the increase of tourists from new markets means less reliance from a few sources, reducing risk and helping to boost future occupancy rates.”

The five star beach resort offers 140 properties, ranging from £63,425 studios to £182,750 three-bedroom poolside villas.

The resort has a guaranteed 80 percent occupancy level, on a rolling five year contract, providing returns of 14.4 percent to 20.9 percent, depending on the property type. Guaranteed 60 percent non-status developer finance is available.  Owners are entitled to 20 percent or around ten weeks’ free stay a year.