This project aims to develop a resort-themed eco-lodging destination on the scenic island of Guimaras, Philippines, specifically designed for independent-living retirees seeking a peaceful, tropical lifestyle. The development will offer long-term lease accommodations set within a nature-rich environment, supported by wellness, hospitality, and lifestyle services that enhance comfort, health, and social connection. We are seeking $2.3 million in equity investment to fund land development, construction of residential and shared-use facilities, engineering and architectural design, landscaping, procurement of fixed assets, staff training, working capital, and contingency reserves. This capital, together with a 14,000 sqm seafront parcel contributed as land equity, will fully support the establishment of the project’s core infrastructure.
The proposed project is a long-term eco-lodging development located on the island of Guimaras in the Philippines. This venture is designed for independent-living retirees—primarily from North America, Europe, and returning Filipino migrants—seeking a peaceful, tropical, and cost-effective lifestyle. The development will feature resort-style units available for extended lease, supported by services such as housekeeping, wellness facilities, social programming, and access to on-call healthcare. The aim is to create a vibrant, comfortable living environment that allows residents to enjoy the beauty of island life while preserving their independence.
The market of retiring expatriates from North America and Europe is expanding rapidly, driven by aging populations, rising living and healthcare costs, and the pursuit of a more affordable and fulfilling lifestyle abroad. In the United States, approximately 4.18 million individuals are expected to reach retirement age in 2025. This trend is projected to continue, with over 4.1 million Americans retiring annually until 2027. (source: ReutersFinancial Times) Canada is also witnessing a notable rise in its senior population. As of 2023, there are about 7.6 million Canadians aged 65 and older. Projections indicate that this number will exceed 11 million by 2043, representing approximately 25% of the country’s total population. (source: CTV News) In Western Europe as of early 2024, over 20% of the European Union’s population is aged 65 or older, with countries such as Italy, Portugal, and Bulgaria reporting the highest proportions (source: euronews). Projections indicate that by 2050, the share of individuals aged 65 and above in the EU will rise to approximately 30%.
Continuation……Market Description
Retirement Income and Affordability Abroad Retirement income and savings are key considerations for individuals planning to relocate overseas. According to SmartAsset and Edward Jones, average retirement savings in the U.S. are as follows: Ages 45–54: $313,220 Ages 55–64: $537,560 Ages 65–74: $609,230 Ages 75+: $462,410 In addition, the average monthly Social Security benefit as of early 2025 stands at $1,976 (Social Security Administration). When retirees relocate to countries with significantly lower living costs, this income can support not only essential expenses such as housing and healthcare but also leisure and travel. Healthcare Cost Comparisons Healthcare is a primary factor influencing retirement destination choices. In the United States, a healthy 65-year-old couple is projected to require approximately $315,000 for healthcare expenses in retirement—exclusive of long-term care (source: Fidelity).
Continuation……Market Description
Considerations When Retiring Outside their own Countries Retirees from North America and Europe typically weigh several key factors when selecting a retirement destination: Cost of Living – Preference for countries where retirement income stretches further.Healthcare – Access to affordable, high-quality medical care and insurance options.Climate – Warmer, milder climates with clean environments and outdoor amenities.Safety – Low crime rates and stable political conditions are essential.Residency Options – Retiree-friendly visa programs.Language & Culture – English-speaking environments and active expat communities ease adaptation.Property Ownership – Legal rights to own property and simplicity of purchase process.Infrastructure – Reliable utilities, internet, and proximity to airports and transport hubs.
The retirement community will offer up to 15 eco-friendly lodging units of approximately 60 sqm in size each, available for both short- and long-term leases. Each unit will feature a private balcony with beautiful views of the sea and surrounding nature, creating a peaceful tropical living environment. Residents will have access to services such as housekeeping, optional meal plans, wellness facilities, concierge support, and healthcare coordination. In addition, the community will host island-based activities and cultural programs, promoting an active, healthy, and fulfilling lifestyle in a relaxed seaside setting.
This is a start-up project in its development and funding phase. The business will be formed as a corporation under a joint venture between two key parties: the equity investors and a local landowner. The investors will contribute $2.3 million in capital and hold a 70% ownership stake as preferred shareholders. Meanwhile, the landowner will contribute a 14,000 sqm parcel of land worth USD 300K at current market value for a 30% equity stake as a common shareholder. The land will remain under the landowner’s name and be leased to the corporation, ensuring mutual benefit and long-term partnership alignment.
The resort-themed retirement project is designed to attract independent living minded retirees from North America and Europe, particularly those seeking a sustainable, nature-focused retirement lifestyle. The target demographics are as follows: Demographics Description Age Group Primarily targets retirees aged 55–75 who are active and independent, with a secondary market of 75–85-year-olds who may need minimal support features Geographic Origin Attracts retirees from North America and Europe seeking affordable, warm-weather retirement options, as well as returning Filipino expats looking for comfort and familiarity Marital Status Includes both singles (often widowed or divorced) seeking community, and couples looking to enjoy a shared, relaxed retirement lifestyle. Income & Financial Profile Focuses on middle to upper-middle-income retirees with stable pensions or passive income, typically earning between $2,000 and $6,000 monthly, making the Philippines a cost-effective choice
Continuation …..Target Market
Lifestyle Preferences Appeals to those who value independent but maintenance-free living, eco-conscious design, wellness activities, social interaction, and the option for trial stays before full commitment Education & Background Generally well-educated, retired professionals with global exposure who seek a meaningful, engaging retirement experience Tech & Communication Readiness Digitally literate retirees who rely on strong internet access for staying connected, managing finances, and engaging in remote or part-time work
The community will be located in the island of Guimaras province in the Philippines. Located just off the coast of Iloilo City, Guimaras Island offers the perfect mix of peace and accessibility. The resort-style retirement community will be nestled in a beautiful cove property in the quiet town of Nueva Valencia, in the southern part of the island. Surrounded on multiple sides by clear coastal waters yet fully accessible by land, this unique site creates a natural sense of serenity and seclusion. Nearby are small islands, beaches, and fishing grounds that add to the area’s laid-back charm and provide opportunities for island-hopping, boating, and local immersion. The clean air, friendly locals, and easy access to Iloilo’s hospitals and urban conveniences make Guimaras an ideal retirement destination for those seeking nature without isolation.
While the Philippines is an attractive destination for retirees, very few communities are truly built with foreign retirees in mind. Some developments like Tagaytay Highlands, Camaya Coast, and upscale condominiums in Metro Manila and Cebu do offer independent living, but they often: · Focus more on large-scale luxury than comfort or community feel · Target wealthy local buyers rather than foreign retirees · Lack key retirement-friendly features like wellness services or onsite support · Are based in busy urban areas, not ideal for those seeking peace and nature This highlights a strong opportunity for smaller, resort-style communities in peaceful locations like Guimaras Island, where retirees can enjoy a simpler, health-oriented, and nature-rich lifestyle.
To stand out from competitors, the project will emphasize a distinctive combination of lifestyle, flexibility, and value-added services: · Unique Island Lifestyle: Tranquil, nature-rich surroundings with low population density offer a refreshing alternative to crowded urban retirement hubs. · Flexible Residency Options: Membership or lease-based arrangements eliminate complex property ownership issues. · Healthcare & Wellness Access: Partnerships with local providers ensure easy access to medical and wellness services tailored for retirees. · Competitive Pricing: High-quality amenities at lower costs. · Special Resident Services: Includes on-request concierge assistance, scheduled transport to key destinations within Guimaras and nearby islands, private transfers to ferry terminals and airports, curated excursions and leisure activities, and support with bookings, local tips, and general resident needs—all designed to enhance comfort, convenience, and the overall retirement experience. · Supportive Government Policies: Potential benefits from tourism and retirement-focused programs like the Philippine Retirement Authority.
The marketing approach will emphasize digital outreach, strategic partnerships, community engagement, and value-driven messaging. Digital Marketing and Online Presence We will implement a robust digital strategy to reach our international audience: · Website with SEO Optimization: A professionally designed website with high-ranking keywords related to retirement in the Philippines, tropical living, and independent senior living. The website will feature virtual tours, cost comparisons, resident testimonials, and visa information. · Google Ads and Retargeting: Geo-targeted ad campaigns aimed at users in the U.S., Canada, and Europe researching overseas retirement options. · Social Media Marketing: Platforms such as Facebook, Instagram, and YouTube will be used for storytelling, lifestyle content, and targeted advertising. Short videos and photo essays will highlight the unique experience of living in Guimaras. · Email Marketing Campaigns: Capture leads via newsletters and nurture them with a sequence of informative emails offering community updates, lifestyle content, and invitations to visit or attend webinars. .
Continuation….. Marketing Approach
Strategic Partnerships Collaborative efforts will amplify marketing reach and credibility: · Retirement and Relocation Consultants: Partnerships with consultants and relocation advisors specializing in overseas retirement, including SRRV-accredited agents. · Overseas Real Estate Brokers: Offer referral incentives to brokers in North America and Europe with clients seeking international properties. · Healthcare and Insurance Providers: Collaborate with health insurance firms catering to expats to offer bundled service options. Expat and Diaspora Outreach The project will engage directly with international and Filipino expat communities: · Overseas Filipino Groups: Tap into community associations and consulate events in major cities abroad. · Expat Clubs and Forums: Participate in discussions, offer educational content, and sponsor events through platforms like expat Facebook groups, and online forums. · International Expositions: Represent the project at senior expos and lifestyle fairs in the U.S., Canada, and Europe.
Continuation….. Marketing Approach
Local Engagement and Experience Marketing On-site efforts will create meaningful, first hand experiences: · Trial Stay Program: A mid-term stay package (1–6 months) allows retirees to experience the community before committing long-term. This is ideal for retirees still deciding on a final relocation destination. · Referral Incentive Program: Encourage current residents and guests to refer fellow retirees through attractive incentives. · Partnerships with Local Resorts and Tour Operators: Collaborate on cross-promotional offers for travel and trial stays in Guimaras and Iloilo. Brand Positioning and Messaging All marketing communications will emphasize: · Affordable tropical living with modern amenities · Low-maintenance, nature-integrated lifestyle with eco-conscious features · Warm, community-driven environment reflecting Filipino hospitality · Flexibility for seasonal or trial-based living, catering to transitional retirees
Continuation….. Marketing Approach
Sales Tools and Lead Management · Interactive Online Platform: A lead-generating website with inquiry forms, chat support, and downloadable guides. · Webinars and Online Consultations: Monthly live Q&A sessions hosted by staff and residents to build trust and answer questions. · CRM System: A dedicated customer relationship management platform to track prospects, follow-up activity, and sales conversions. This multi-tiered approach ensures strong visibility, targeted outreach, and high-quality lead nurturing to fill units with residents who are aligned with the project’s vision and lifestyle offerings. The strategy is designed to convert interest into long-term or seasonal residency, establishing a thriving, engaged retirement community in Guimaras.
This business is poised to be highly profitable due to several unique advantages. First, competition in the Philippines for retirement communities specifically designed for active foreign retirees is extremely limited, especially in tranquil, non-urban settings like Guimaras. Second, global trends show a growing number of retirees relocating to tropical, affordable countries with English-speaking populations—criteria the Philippines, and particularly Guimaras, meet exceptionally well. Third, the independent-living retirement model is significantly less capital-intensive than assisted living or nursing homes, allowing for higher operating margins and easier scalability. From a financial standpoint, the project demonstrates robust profitability over a 5 year period, with revenue growth rate (CAGR) exceeding 26% on average yearly, a net profit-to-revenue ratio greater than 45%, and an investor capital payback period of approximately 11 to 12 years. These metrics outperform industry benchmarks and indicate strong long-term return potential for equity investors.
The project is looking to raise USD 2.3 million in equity from private investors. The landowner will contribute a 14,000 sqm vacant lot, valued at USD 300,000, as equity in a joint venture with the investors. The funds will be used for: Land Development: Site clearing, road and pathway construction, soil testing, master planning, and setting up utilities (water, waste, power), as well as building retaining walls, flood prevention, and landscaping. Cottage Construction: Building and furnishing 16 residential units. Shared Amenities: Clubhouse, pool, gym, medical/wellness area, common areas, and parking. Equipment: Includes two vehicles, solar panels, air conditioning, medical and gym equipment, water pump, CCTV, and a power generator. Operating Setup: Covers marketing, sales, staff training, representation costs, and contingency funds.
The resort-themed independent living retirement community will offer 15 cottage units for lease. Prospective residents can choose from flexible leasing options with discounted rates for longer commitments. The standard monthly rental for trial purposes is USD 2,800, and a weekly rental option is available at USD 750 per week for those who prefer short stays without long-term commitments. To encourage long-term occupancy, discounted monthly rates will be provided for residents who commit to 6, 12, or 24-month leases. As this will be a member only retirement resort, there will be a membership fee of $3,000, which grants access to all resort-style amenities, social programs, wellness services, and other services.
This start up project proposes a boutique, resort-style retirement community in Guimaras Island designed for independent-living retirees from North America, Europe, and returning Filipino migrants. The community will offer eco-friendly cottages for lease, paired with services like wellness programs, concierge support, housekeeping, and on-call healthcare. Located in a scenic, non-urban setting near Iloilo, the development offers tranquility, nature, and accessibility. The market opportunity is strong due to the lack of retirement communities tailored for foreign retirees in the Philippines. Unlike large urban developments and upscale condos in the major cities, this project emphasizes comfort, community, wellness, and affordability in a peaceful island setting. Up to 15 cottages will be offered to members for short and long term leasing, with shared facilities and nature-integrated design. Target residents are retirees aged 55–75 with stable incomes, global exposure, and interest in tropical, low-maintenance living. Structured as a joint venture, the business seeks a USD 2.6 million equity infusion— approximately USD 300K in land contribution from the landowner (30% stake) and USD 2.3M in capital from investors (70% stake). Funds will cover land lease, construction, amenities, staff, and marketing. The marketing strategy includes digital campaigns, expat outreach, trial stay programs, and international partnerships. Profitability projections show a 45%+ net margin, 26% CAGR, and capital payback in 11–12 years—highlighting strong potential for long-term returns in an underserved niche.
EquityAmountDescription Investor Equity Contribution USD 2,263,207 For construction, furnishing, pre-opening, and working capital Landowner Equity 360,336 Vacant lot 13,933 SQM in size TotalUSD 2,623,543 Investor Cash Infusion + Land
Land Development ItemEstimateNotes Site Clearing and Earth Works USD 41,379 Clearing, levelling, and soil preparation Access Roads and Pathways 140,000 Paving of resort roads, drainage run-off management Soil Testing and Engineering Studies 2,000 Geotechnical studies to determine soil stability Architectural and Eng Design and Plan 137,931 Comprehensive build plans Utility (Waste, Water, Power) 275,862 Water supply lines, Electrical grid setup (transformer, cabling, solar options, Wastewater treatment system Retaining Walls and Flood Prevention 206,897 Required for sloping or coastal areas, Erosion control and foundation reinforcement Landscaping and Greenery 68,966 Planting trees, shrubs, grass, setting up irrigation systems Total: Land DevelopmentUSD 873,034
continuation ……Cost Breakdown
Cottage Construction ItemEstimateNotes Cottages USD 794,483 16 cottages of 60 SQM each. Incl. materials and labour Interior Furnishings 27,586 Furniture, appliances, décor Total: Cottage ConstructionUSD 822,069 Shared Amenities and Facilities ItemEstimateNotes Clubhouse and Common Area USD 112,069 Community hall, lounge, dining area Swimming Pool & Recreation Area 34,483 Pool, leisure spaces Gym Area 12,069 Fitness center Medical and Wellness Area 25,862 SPA, medical clinic Parking Area 12,069 Parking lot, shuttle service Total: Shared AmenitiesUSD 196,552
continuation ……Cost Breakdown
Equipment ItemEstimateNotes Vehicles USD 86,207 VAN and Service Pick up Solar Panel System 25,862 Solar panel equipment Air Conditioning 17,241 Air conditioning units for each room Medical Devices and Tools 12,069 Test and other emergency medical devices Gym Equipment 4,310 Tread mill, weights Back up Water Pump System 5,172 Emergency pump to include water tank CCTV System 5,172 Security cameras Power Generator 8,621 Power Generator electricity back up Total: EquipmentUSD 164,655
continuation ……Cost Breakdown
Operational Setup and Working Capital ItemEstimateNotes Administrative & Office Setup USD 8,621 Office equipment, software, initial supplies Travel, Representation 8,621 Air fare, representations Marketing and Sales Budget 34,483 Branding, advertising, website Staff Training 17,241 Initial hiring, salaries Contingency and Working Capital 137,931 Reserved for unexpected expenses Total: EquipmentUSD 206,897
All following occupancy rates over a five year period are used as a basis for projections and analysis. This approach accounts for the expected ramp-up period as the resort gains recognition and customer trust. YearOccupancy RateRooms Occupied (out of 15) 1 60% 9 2 65% 10 3 75% 11 4 80% 12 5 80% 12
The primary sources of revenue for the retirement community include: Rental Income: Long-term leasing of residential units and short-term stays for prospective members. Membership Fees: One-time or annual fees granting exclusive benefits and priority access. Other Service Charges: Revenues from space rental. (Not included in projections are revenues from special healthcare services, resident guest dining, wellness programs, excursions, and other services). Year 1Year 2Year 3Year 4Year 5 Rental Fees (USD) 293,328 327,305 388,990 427,370 440,191 Membership (USD) 27,000 30,128 35,805 39,338 40,518 Others (USD) 6,000 7,416 7,638 7,868 8,104 Yearly Total 326,328 364,849 432,433 474,576 488,813 5 Year TotalUSD 2,086,999Note: Annual 3% increase in rent and membership fees
Occupancy Threshold YearOperating Expenses (USD)Threshold (%)No. of Rooms (out of 15) 1 235,966 48% 7 2 241,865 48% 7 3 247,911 48% 7 4 254,109 48% 7 5 260,462 47% 7 Payback Period on Investor Capital Y1Y2Y3Y4Y5 Net Income (USD) 90,362 122,984 184,522 220,467 228,351 Accum. Net Inc (USD) 90,362 213,346 397,869 618,335 846,687 Investor Capital USD 2,263,207 Payback Period *11.2 years * Assuming annual income continues at USD 228,351 beyond the 5th year
Continuation …….Break-Even Analysis and Return on Investment
IRR (Internal Rate of Return) Project Y0Y1Y2Y3Y4Y5 Cash Funds (USD) -2,263,207 228,294 351,278 535,800 756,266 3,268,130(*) IRR by Y522.08%Note: (*) includes business residual value of $2,283,512 + year 5 cash funds Annual and Cumulative ROI (Preferred Equity Investors) Y1Y2Y3Y4Y5 Guaranteed Returns(*) (USD) 158,424 158,424 158,424 158,424 158,424 Annual ROI 7% 7% 7% 7% 7% Guaranteed Returns Accummulated (USD) 158,424 316,849 475,273 633,698 792,122 Acummulated ROI 7% 14% 21% 28% 35% Note: (*) based on investment of USD 2,263,207
Using the 5-year cash flow and profitability data, two key scenarios are assessed: Scenario 1: Occupancy Rate Variability Occupancy rates are projected conservatively at 60%, 65%, 75%, 80%, and 80% for Years 1-5. However, variations in occupancy can significantly impact cash flow and profitability. Lower Occupancy (10% Decrease) § A 10% drop in occupancy reduces rental revenue by approximately USD 32K to USD 48K per year. § Income from operations by year 5 drops down 47% to 41%. § Funds remaining in Year 5 could decline from USD 985K to approximately USD 779K, affecting liquidity. Higher Occupancy (10% Increase) § A 10% increase in occupancy boosts revenue by USD 32K to USD 48K annually. § Net income improves, allowing for a break-even period of approximately 9-10 years instead of 11-12. § By Year 5, cash reserves could exceed USD 1.1 Million, creating more opportunities for reinvestment.
Continuation….. Sensitivity Analysis
Scenario 2: Operating Cost Fluctuations Operating expenses are projected to grow from USD 236K in Year 1 to USD 260K in Year 5, but external factors could alter these figures. Cost Increase (10% Higher Expenses) § A 10% rise in costs results in an additional USD 23K–26K in expenses per year. § This reduces net income, prolonging the break-even period by close to 2 years. § By Year 5, cash reserves could shrink to around USD 860K, lowering financial flexibility. Cost Reduction (10% Lower Expenses) § A 10% reduction in expenses saves USD 24K–26K annually. § This accelerates the break-even point to approximately 9-10 years. § By Year 5, cash reserves could increase to USD 1.1 Million or more, improving reinvestment potential.
Off Season Impact on Profitability and Cash Flow (5 Year Projection) The off-season period during the rainy months from August to October may result in a temporary dip in revenue due to reduced visitor traffic. To sustain occupancy and encourage bookings during these quieter months, the resort may implement targeted discount strategies: up to 60% off on room rentals, 50% off on club memberships, and 50% off rentals for restaurant and wellness spaces. Monthly Revenue Projection over 5 Yrs with Off Peak Seasons
Continuation.…..Off Season Impact on Profitability and Cash Flow (5 Year Projection) 5 Year Net Income EBITDA with Off Peak Seasons
MetricProjectIndustry StandardsRemarksCAGR26.08%10% – 18%Revenue growth each year on averageROE32.27%12% – 20%Efficiency of generating profit using investor equityNet Profit to Revenue Ratio28% – 47%12% – 18%Indicates the long-term health and appeal of the businessYear to Year Profit Growth27%15% – 30%Shows how much profit grows each yearOccupancy Threshold48%70% – 85%Minimum occupancy to cover costsPayback Period11.2 years8 – 12 yearsBased on still conservative occupancy ratesIRR (Project)22.08%12% – 18%Rate of return before splitting of profits to investorsIRR (Equity Investor)12.73%10% – 12%Compared to other retirement resorts1.2% – 4.5%Compared to bank deposits
This project adopts a Land Lease + Joint Venture Structure between the landowner and a group of investors to jointly develop and operate a resort-themed retirement community. A corporation will be created to manage and operate the project, and both parties—landowner and investors—will hold equity interests in the corporation according to their contributions.
The investors contribute USD 2.3 million for land development, construction, pre-operating expenses, furnishings, and working capital. In return, the investors receive 70% ownership of the corporation. The landowner contributes 14,000 square meters of prime land, appraised at approximately USD 300,000, as equity in exchange for 30% ownership of the corporation. The landowner retains legal ownership of the land and leases it to the corporation for a monthly or annual rent under a 25-year renewable lease agreement.
The landowner receives Common Shares, which carry voting rights and entitle the holder to 30% of distributable profits, after preferred shareholder returns are paid. The investors receive Preferred Shares, which do not have general voting rights but are granted protective rights on major corporate matters.
Preferred shareholders are entitled to a guaranteed 7% annual return, paid monthly based on their USD 2.3 million investment. Preferred shares include: · Priority return of capital and unpaid returns in the event of company dissolution, sale, or bankruptcy. · Redemption Rights after Year 7, allowing buyback at par value plus accrued returns, subject to board approval and solvency conditions. · Access to financial statements, company updates, and notice of major corporate actions.
If the company generates net income after preferred shareholder distributions in any year, only 30% of the remaining profit shall be distributed to the common shareholder (landowner). The remaining 70% will be retained as working capital or reserve for future operations. In the event of a sale of the business, proceeds will be shared 70/30 between investors and landowner, reflecting their ownership proportions.
The Corporation shall have a three-member Board of Directors: One director nominated by the Landowner; One director nominated by the Investor; One independent director mutually agreed upon by both parties. In the event of a tie in decision-making, the vote of the independent director shall act as the tie-breaker.
Preferred Shareholder Return Annually Guaranteed on USD 2,263,207 InvestmentUSD 158,4247% Investor IRR (Internal Rate of Return) Estimate Y0Y1Y2Y3Y4Y5Funds Available (USD)-2,263,207158,424158,424158,424158,424158,424IRR* by Year 512.73%* Based on (1) Preferred Return of $158,424/year and (2) business residual value computed at $2,283,512
Investors will have multiple exit options, including a corporate buyback after 7 years, potential resale of equity to new investors, or recovery through asset-backed liquidation at the end of the term. To protect investor interests, the project includes strong legal safeguards such as a detailed shareholder agreement covering rights, obligations, and dispute resolution; a secured and government-registered land lease; and full transparency through audited financial statements, third-party asset valuations, and regular reporting.
Competitive Landscape The resort-themed retirement community in Guimaras Island in the Philippines will operate in a niche market that combines senior independent living with hospitality services. However, competition exists in several forms: · Existing Resorts & Hotels: While these establishments do not primarily cater to long-term retirees, they may attract short-term expatriates or semi-permanent retirees who prefer flexible lodging arrangements over a full-service retirement community. · Emerging Retirement Communities: There is growing interest in the Philippines as a retirement destination, with developments in nearby areas like Iloilo and Cebu. These may offer similar services with different pricing and amenities, affecting market share.
Continuation..…..Competition and Demand Fluctuations
· Local Housing & Rental Market: Some retirees may opt for traditional real estate investments, such as purchasing condominiums or renting local houses, instead of committing to a membership-based or leased retirement community model. · Alternative Retirement Destinations: Competing retirement hubs such as Thailand, Malaysia, and Vietnam may attract potential clients due to their established expat-friendly policies and retirement visa programs. Demand Fluctuations Several factors could impact the demand for retirement living in Guimaras Island, potentially affecting occupancy rates and profitability: · Seasonal Variations: Retirees from North America and Europe may have seasonal preferences, choosing to reside in the community during winter months but leaving during summer, leading to fluctuating occupancy. · Economic Conditions: Global economic downturns or recessions may reduce disposable income for potential retirees, affecting their ability to afford membership or long-term stays.
Continuation..…..Competition and Demand Fluctuations
Government Policies & Retirement Visas: Any changes in the Philippines’ Special Resident Retiree’s Visa (SRRV) policies, taxation on foreign income, or real estate ownership laws could influence demand from international retirees. Health and Safety Concerns: Natural disasters, pandemics, or concerns about medical accessibility on the island could deter retirees from committing to long-term residency. · Currency Exchange Rates: A weakening USD, CAD, or EUR against the Philippine Peso could make the cost of living in Guimaras less attractive for foreign retirees.
Continuation..…..Competition and Demand Fluctuations
Mitigation Strategies due to Competition and Demand Fluctuations To counter these risks, the project will: · Differentiate by offering exclusive, all-inclusive services such as healthcare partnerships, wellness programs, and customized senior living experiences. · Diversify revenue streams by allowing short-term rentals for tourists during low-demand periods. · Implement flexible pricing models to attract both seasonal and year-round retirees. · Engage in international marketing efforts to build a consistent pipeline of retiree applicants. · Develop strategic partnerships with local healthcare providers and government agencies to ensure long-term viability.
Land Ownership and Lease Agreements Foreign retirees cannot directly own land in the Philippines, which may limit investment appeal. The retirement community must comply with regulations by either offering long-term lease agreements or forming partnerships with local entities. Ensuring the land title is free of encumbrances and legal disputes is crucial for securing investor confidence. Business Registration and Compliance Operating a retirement community requires compliance with national and local government regulations, including: · Business registration with the Securities and Exchange Commission (SEC) or Department of Trade and Industry (DTI). · Local permits and licenses, such as Mayor’s Permit and Barangay Clearance. · Environmental compliance, ensuring sustainable land use and waste management practices align with local environmental laws.
Continuation….Regulatory and Legal Considerations
Immigration and Visa Regulations The community’s target market consists of foreign retirees who will require appropriate visas. The Philippine Retirement Authority (PRA) oversees the Special Resident Retiree’s Visa (SRRV), which provides long-term stay benefits. Any changes in visa policies could impact residency demand, requiring active engagement with the PRA to stay updated. Taxation and Financial Regulations Understanding taxation policies is essential for financial planning. Key considerations include: · Corporate taxes on business income. · Property taxes on the land and infrastructure. · Withholding taxes on foreign investors receiving dividends. · Potential tax incentives for eco-friendly or tourism-related projects. Labour Laws and Employment Regulations The project will employ local staff for maintenance, hospitality, and healthcare services. Compliance with Philippine labour laws—including minimum wage requirements, employee benefits, and fair work conditions—is necessary to prevent legal disputes and maintain a good reputation.
Continuation….Regulatory and Legal Considerations
Mitigation Strategies To address these legal and regulatory risks, the project will: · Partner with local legal experts to ensure full compliance with land use and business regulations. · Secure long-term lease agreements that align with foreign retiree needs. · Work closely with the Philippine Retirement Authority to facilitate visa applications. · Explore tax-efficient structures to maximize investor returns. · Maintain transparent and ethical labour practices to ensure compliance and community goodwill.
Impact of Inflation Inflation can significantly affect the project’s operational costs, including wages, utilities, and maintenance. Key risks include: · Rising Construction Costs: Inflation may increase material and labor costs, impacting the initial development budget. · Higher Operational Expenses: Ongoing costs such as food, utilities, and healthcare services may rise over time, reducing profit margins. · Reduced Purchasing Power: Foreign retirees on fixed incomes may find their purchasing power diminished if inflation outpaces cost-of-living adjustments in their home countries. Foreign Exchange Rate Fluctuations Since the project primarily targets retirees from North America and Europe, foreign exchange rate volatility presents a financial risk: · Weaker USD, CAD, or EUR against PHP: If the value of retirees’ home currencies depreciates against the Philippine Peso, the cost of living in the community may become less attractive, affecting occupancy rates. · Revenue and Investment Impact: If the project collects fees in foreign currency, exchange rate fluctuations may reduce revenue consistency. · Supplier and Service Costs: The cost of imported goods and services may fluctuate based on exchange rates, impacting operational efficiency.
Continuation….Economic Risks: Inflation and Foreign Exchange Rates
Mitigation Strategies To address these economic risks, the project will: · Implement Price Adjustments: Regularly review pricing strategies to align with inflation and maintain sustainable profit margins. · Offer Localized Pricing Options: Allow retirees to pay in both foreign currency and Philippine Pesos to minimize exchange rate risks. · Diversify Revenue Sources: Introduce additional revenue streams such as healthcare partnerships, tourism services, and event hosting to buffer against economic downturns. · Monitor Currency Trends: Engage financial experts to manage currency risk and implement hedging strategies where applicable. Establish Cost Controls: Optimize operational efficiencies by negotiating long-term contracts with suppliers and leveraging local resources to minimize cost fluctuations.
The months from August to October typically represent a softer travel period in the region due to seasonal weather patterns, during which a temporary dip in visitor arrivals may occur. To maintain steady occupancy and ensure consistent revenue, strategic off-season initiatives will be implemented that position the resort as a year-round destination for both short-term guests and long-stay retirees. Key strategies include: Seasonal Pricing and Promotions To make the resort more attractive during the off-peak season, we will implement a tiered discount structure designed to encourage both short- and long-term bookings. Monthly lease rates will be offered at 40% to 50% lower for bookings that fall within the months of August, September, or October. These discounted rates will be promoted well in advance to encourage early reservations and longer stays. Additional promotional packages may include extended-stay benefits, complimentary wellness services, or bundled meal plans to add more value to each booking. Targeted Experiences and Resident Engagement The resort will offer curated activities tailored to the interests of retirees during these months, such as indoor wellness workshops, hobby clubs, cooking classes, and cultural experiences. These enhancements help create a fulfilling lifestyle for residents regardless of seasonality and reinforce the resort’s appeal as a year-round retirement destination.
Continuation….Off-Season Strategies for Sustained Occupancy and Revenue
Local and Domestic Market Campaigns Marketing efforts will emphasize “staycation” and wellness-themed retreats designed to appeal to Filipino professionals, early retirees, and wellness seekers looking for a peaceful, scenic getaway within the country. For example: Weekend Wellness Getaways: 3-day, 2-night packages with yoga sessions, healthy meal plans, and spa treatments at promotional rates. · Remote Work Retreats: 7-day packages with strong internet access, co-working spaces, and optional workshops for productivity and wellness, targeting local digital nomads or corporate groups. · Cultural Discovery Weeks: Special packages for retirees from Manila, Cebu, or Iloilo that include heritage tours, cooking classes, and farm-to-table experiences, highlighting the unique charm of Guimaras. These experiences offer local and regional travelers a compelling reason to visit during the quieter months, helping to stabilize occupancy even when international travel may slow.
Continuation….Off-Season Strategies for Sustained Occupancy and Revenue
Flexible Lease Terms for Prospective Long-Term Residents To encourage long-term stays and attract future residents, the resort will offer trial residency programs and short-term lease options during the off-season. For example: · One-Month Trial Stay: Prospective retirees can lease a unit for 30 days at a reduced rate (with 40–50% discount) to explore the lifestyle, amenities, and community. · 3- to 6-Month Flexible Leases: Designed for snowbirds or individuals considering semi-permanent relocation, these leases allow guests to experience life at the resort without the pressure of a long-term commitment. · Convertible Lease Options: Guests who choose a short-term lease and later opt to extend to a full-year term will have a portion of their short-term rent credited toward their long-term lease deposit. These initiatives not only promote higher occupancy during the off-season but also serve as an effective conversion strategy—turning seasonal visitors into long-term residents, while demonstrating the resort’s flexibility and strong value proposition.
