The pitch is for tropical paradise: turquoise waters that lap a pristine shoreline fringed by lush, mist-streaked greenery. Philippine property giant Megaworld extolls on its Facebook page the virtues of Palawan island, the largest of a 1,780-island group by the same name that hangs to the left of the island nation in the Pacific. Here, Megaworld is pursuing its most complex project yet, a resort and residential estate that will be the island’s biggest real estate development to date.
On 462 hectares in San Vicente, a quiet, relatively untouched corner of Palawan’s northern coast, known for its rich biodiversity, virgin forests, steep karst cliffs and the longest white sand beach in the Philippines, Megaworld has a 15-year plan to raise a township from among the coconut trees—an ecofriendly addition, it says, to its hospitality, office, retail and residential portfolio that spans the country. When finished, Paragua Coastown will include two 10-story hotels, a residential condominium, villas, a hospital, a school, and wellness-related centers.
Megaworld, owned by billionaire Andrew Tan’s spirits-to-property conglomerate Alliance Global Group, is pouring over 40 billion pesos ($720 million) into the venture—a tenth of what it plans to spend on building townships across the Philippines in the next five years. The company is banking on getting in on the ground floor as the island remakes itself into one of the country’s top tourist destinations. Some 1.5 million people, of which about 650,000 were overseas travelers, visited the island in 2023, nearly twice as many as the previous year, according to government figures, as tourists return to the Philippines post-Covid. (Boracay, the archipelago’s most popular resort island, had over 2 million visitors last year.) “We intend to showcase the best sustainable tourism and green living concepts by developing it into an ecotourism township,” Kevin Tan, Andrew’s eldest son and Megaworld’s executive vice president and chief strategy officer, says by email.
San Vicente is seen as the next frontier in the island’s commercial boom, catching up to Palawan’s other island centers where tourism is flourishing, including its capital, Puerto Princesa City (home to the 8.2-kilometer underground river, a Unesco World Heritage site), and El Nido, a municipality comprised of small islands at Palawan’s northern tip that has in recent years become a playground for backpackers and jetsetters alike. Ayala Land, controlled by billionaire Jaime Zobel de Ayala and his family, has already made inroads as El Nido’s biggest developer, owning the 325-hectare Lio tourism estate along with four other resorts in the town’s smaller islands.
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