The government must create a clear definition and national regulations on alternative, non-hotel accommodations in the country to catch up with tourism revenues of its Southeast Asian neighbors, a report by the Asian Development Bank, or ADB, said.

An ADB report this month shows listings of apartments, condominium units and villas for use of tourists in the region have grown 19 percent each year since 2018.

In the Philippines, online listings of these alternative accommodations have risen to 63,700 from 40,500 and generated a revenue worth $221 million last year.

Meanwhile, Indonesia has seen 68,400 of these accommodations and attracted $752 million in revenue a year ago.

The ADB points out Indonesia achieved that growth level by having a clear definition of alternative accommodations which encouraged agencies to craft related regulations and owners to register their business with the national government.

Consequently, ADB said Indonesia attracts a bigger share of tourists who want to fully immerse in the local culture as alternative accommodations are found in small communities, unlike hotels in business districts.

The ADB adds Indonesia makes tourists feel safer as the national government has data from these accommodations, which then allows it to inspect them easily.

"According to the Ministry of Tourism and Creative Economy Law No. 4 of 2021, all accommodation types are required to apply for a permit with the national government, via the Online Single Submission," the ADB said.

Unregulated accommodations

In the Philippines, on the other hand, some alternative accommodations may not be regulated by the national government.

"Accommodation types that do not fit into an accreditation category, such as home sharing in condos, are still required to apply for a business license from the local government units, even if they cannot obtain Department of Tourism  accreditation," the ADB said.