Expanding Operations at Philippine Airports: Joint Venture Between Gokongwei and Gotianun Capitalizes on Growing Travel Trend
Joint Venture Proposes Modernization of Provincial Airports in Philippines
A significant development in the Philippines' infrastructure sector has been proposed by a joint venture between JG Summit Holdings and Filinvest Development Corporation. The partnership, part of the Gokongwei and Lopez groups respectively, has submitted a proposal for the modernization and expansion of provincial airports in Bicol, Davao, and Siargao.
The proposed project aims to upgrade these key regional airports, which are popular tourist destinations, to support tourism and economic growth. If approved, the modernization will help boost commerce and tourism in these areas, particularly Siargao, a renowned destination for surfing, and Davao, home to Mount Apo, the country's highest peak and a habitat for the endangered Philippine Eagle.
The project for Siargao Airport includes the construction of a new passenger terminal building, set to begin in August 2025. The plans call for quadrupling the airport’s capacity, expanding pre-departure seating from 200 to 750 passengers and adding six additional check-in counters. The project employs modular construction techniques to be completed within eight months, enhancing comfort and convenience for travelers.
The joint venture's proposal covers the modernization and expansion of the three airports as a bundled project, subject to thorough assessment and negotiation under the Philippine Public-Private Partnership (PPP) Code (Republic Act No. 11966).
The initiative reflects the government’s push to decentralize airport development beyond Metro Manila, aiming to modernize provincial airports to accommodate increasing air traffic and stimulate regional economic development. The project aligns with priorities from President Ferdinand Marcos Jr. to improve infrastructure to boost tourism and trade in regional areas such as Siargao.
JG Summit Holdings and Filinvest Development Corp, two of the Philippines’ leading conglomerates, are known for significant investments in infrastructure and real estate. The joint venture currently operates the Clark International Airport, north of Manila, in partnership with Singapore's Changi Airport Group.
Filinvest Development, founded in 1955 as a small financing company, has grown into one of the country's largest conglomerates with interests in banking, sugar, power, and real estate. JG Summit, a conglomerate founded in 1954, has interests in airlines, food and beverage, banking, petrochemicals, and utilities. The heirs of Filinvest Development's founders have a combined net worth of $800 million, while Lance, the president and CEO of JG Summit, and his sisters have a combined net worth of $1.8 billion, placing them at No. 14 on the list of the Philippines' 50 Richest.
The modernization and expansion of these airports are currently under review by Transportation Secretary Vince Dizon. Aboitiz Equity Ventures runs the Mactan International Airport in the central Philippine island of Cebu, and the duo is seeking to expand their airport operations beyond their current ventures. Bicol is home to Mount Mayon, a volcano known for its perfect cone.
This news marks a significant step forward in the Philippines' efforts to improve its airport infrastructure, with private investors playing a crucial role in the modernization and expansion of key regional airports. If approved, the project is expected to have a positive impact on the tourism and economic growth of the regions involved.
Sports enthusiasts visiting the Philippines may soon find it easier and more convenient to travel to popular sports destinations such as Siargao, known for its world-class surfing spots, and Davao, home to various sports facilities like the Davao Football Stadium. With the proposed modernization of these provincial airports, the joint venture between JG Summit Holdings and Filinvest Development Corporation aims to support the growth of sports tourism in these regions.
The modernized airports, slated to accommodate increasing air traffic, can potentially attract both local and international sports events, further boosting the economic growth and tourism of these areas. For instance, the upgraded Siargao Airport, with its planned expansion, could cater to an influx of surfing enthusiasts from around the globe, contributing to the vibrant sports culture of Siargao.
