As we’ve mentioned before, one of our goals is to nurture and expand the ever-growing entrepreneurial scene that’s been popping up in Davao City, Philippines in the last 12-18 months. We’ve seen an explosion of growth in this area and are hearing from and meeting more and more people that are coming to the city to get their business or freelancing careers started. This post will be dedicated to them and will be a reference post we can use to share with those looking to come to this city and get started. This post will be added to and updated over time, providing entrepreneurs the best information they can find about getting started and building a business in Davao City, Philippines.
Note: This is a bit of a break from our typical or traditional posts. Please feel free to skip this one if it doesn’t apply to you, but we’re hoping it will stand as a great resource for the network we’re looking to build locally.
Our Growing Community in Davao
I’ve mentioned a short-list of expats that are here and looking to build their businesses and I thought I’d give a brief introduction and explain who they are, what they’re working on, etc.
Justin and Joe – Yours truly! We are both Americans and have a small outsourcing company we run through TryBPO.com and are building a separate project regarding niche websites here at AdSenseFlippers.com.- John Paul and Matt – Young Australians, running a small outsourcing company through RemoteWorkmate.com and setting up a virtual job board for VA’s at VirtualJobs.ph
- Daniel – American running a small outsourcing company with a few direct clients. Also working on niche and authority site creation and monetization.
- Damian – An accomplished freelancer and sales professional who works regularly on oDesk but is looking to build a team in the Philippines to provide offshore sales funnel and account management services.
- Alex – An American that recently joined us in Davao. She’s just getting started in her freelancing career and is looking to keep costs low as she begins to grow her business.
- Jaymie – Young professional from the UK that works with his partner out of China and a few VA’s in Davao, providing services for an ecommerce platform.
- Scott – American that works primarily in the FOREX niche and works on product creation, info products, and coaching.
There are other foreigners in Davao looking to build their business, but these are the people we network with here on a regular basis and we’ll add to the list as the community continues to grow.
Business Resources In Davao City
Eventually, we’d like to build this section out even further to include all of the paperwork you need to create and setup a business here in Davao City. We’ll be gathering the required documents and posting scanned versions of them here in the future.
In the meantime, we wanted to leave you with some useful links, tools, and resources to help you as you build your business and continue your entrepreneurial journey in Davao:
Doing Business In Davao and Entrepreneur.com in Davao – These are currently the best step-by-step resources regarding setting up a company or business in Davao City. Neither currently have the forms you need to begin the process and we think the timelines given are EXTREMELY aggressive, but these will definitely help to get you started in setting up your company here.
American Chamber Of Commerce Davao – This group has been around for many years in Davao but have just recently begun a campaign to attract more foreign investors and business owners to the city. We decided to join in December, 2011 with the intention to assist them in providing assistance and advice in promoting investment and business opportunity here.
Blinque Tech Electronics (and their FaceBook Page) – Getting all of your electronics needs in Davao can be a bit of a pain in that there aren’t many one-stop shops that specialize in that here. Luckily, we’ve come across these guys and have had FANTASTIC service from them in setting up multiple offices, getting our computers serviced, etc. Highly recommended.
Housing Options In Davao For Entrepreneurs
There are quite a few suitable accommodations across a wide range of budgets available for business travel in Davao City. Below we’ll give you a brief run-down on places we’ve stayed and had friends, acquaintances, and guest stay at here in Davao.
0-2 Month Visits
Marco Polo – High-end, full-service hotel. The best in Davao. If you’re here for a short stay, are less comfortable traveling abroad, or are worried about security this is probably your best choice. You’re looking at $100 – $150 per night, depending on season, promotions, etc.- Apo View – A Tier 2 hotel that will meet most needs for business travelers visiting the city. Before the Marco Polo, this was the best hotel in town but is now showing some wear and tear and is in need of some renovation. Reasonably priced at $60 – $100 per night.
- Pinnacle Hotel – Another Tier 2 hotel in Davao. The hotel itself seems to be much newer and nicer on the outside and in the common areas, but we found the rooms to be sparsely furnished. They didn’t have great long-term stay deals when asked. $50 – $80 per night, depending on the room selected.
- Legaspi Suites – Smaller (20 rooms) mid-range Tier 3 option. The rooms are clean and the hotel is smack in the middle of downtown which makes it easy to walk to places, catch taxi’s, etc. The rooms are $30-$70 and easily negotiable directly with the hotel. They DO offer some pretty good longer-term deals for people, but staying there more than 2 weeks may leave you wishing you had a bit more in the room.
- Ecoland Suites – Newer budget accommodation very close to our place. It’s right across from SM Mall which is quite convenient, but a good 15 minutes from downtown. The rooms are clean, but small. The hotel has a 24 hour cafe and patio on the second level. They don’t offer long-term discounts, but you may be able to work something out. Priced at $20-$30 per night.
REALLY cheap options – There are a ton of options that are $5 – $20 per night and the value and cleanliness of these places will vary greatly. You’ll also have to put up with things like dormitory-style living, shared bathrooms, etc. If this is more of what you’re looking for, we would recommend one of the cheaper options listed above for the first week and then seeking out these really cheap rooms and hotels once you’re on the ground so that you can find a place that meets your needs as far as amenities, cleanliness, privacy, etc.
2-6 Month Visits
While Davao City offers some excellent accommodations when compared to most Western countries, you’ll find that the city’s a little less accommodating to those passing through with a mid-range length of stay. (3-9 months) The real problem is “cash-flow”…or the amount of money you’ll have to pay upfront for only staying a few months. Many houses or apartments will require a 3 month deposit, first month’s rent, and a 6 month contract at a MINIMUM before allowing you to move in. (12 month contracts are likely.)
This can be a bit rough on cash-flow for an early entrepreneur without much business to speak of. If you’re looking for a really cheap place to come and work to get your business off the ground, we would recommend one of the hotel options listed above and then asking around locally once you’re here.
6+ Month Visits
There are plenty of resources online pointing to houses, townhouses, and apartments available in Davao, but you might find when you’re here it’s much more difficult in that the information is not always updated, the places have some serious downsides, getting around from one to another via transportation can be a pain, etc.
- $150-$400/month range – Small but clean apartments for rent that might be a bit away from the more popular areas of town. These places will typically have a mix of western amenities along with local amenities. Running water, electricity, etc. will be included.
- $400 – $800/month range – Higher-end apartments or townhouses and smaller houses will fall into this range. Most of the options here are in great communities, but you’ll want to make sure it’s not too far outside the main areas of the city.
- $800 – $1,500/month range – Mid to high-end houses can be found in this price range. The houses might include 3 bedroom family homes to 6 bedroom mini-mansions. Some business owners will setup work/live situations in the large houses in the price range. The problem with the high-end options is that most of them are pretty far away from the main parts of the city.
We have some Real Estate friends that were EXTREMELY generous in taking us around to view a ton of available properties when we first arrived and have offered their services to others that have come to Davao more recently. It’s convenient in that you give them a price range and general requirements, they’ll set an appointment for you, and will then be able to pick you up and drive you around, place to place, to help you find the perfect place for you.
They went even further than that for us, helping us furnish our (supposedly) furnished place here in Davao and getting us completely setup for a fee. They’ll give you the low-down on the landlords, neighborhoods, and pretty much anything you want to know about the property as best they’re able. Feel free to contact us and we’ll be happy to put you in touch.
Internet Options In Davao City
There are two main providers for internet services in Davao City, SMART/PLDT and GLOBE. It can take some time to get internet services setup here, so when you first arrive it’s recommended you pick up a SmartBro or Globe Tattoo for internet services (easily found in any mall), which utilizes the cell networks to give you access. (Those are both quite slow, but passable for basic email, skype text, etc.) You’ll find the DSL lines to be considerably slower when compared to the US, but tolerable for basic tasks and web applications. The cost is around $35-$40/month.
Personal Resources Around DavaoThere are some great coffee shops with free WiFi popping up all over Davao City. The top places would include Bo’s Coffee, Bluegre Coffee, Green Coffee, Chicco Di Cafe, and the newest is our own Starbucks! Unfortunately, we’ve found the WiFi at Bo’s to be quite slow and Starbucks is still to new/busy to be an effective place to hang out and get some work done. We recommend checking out the Green Coffee on Torres or Chicco Di Cafe in Bajada for the strongest internet connections and a decent place to sit back and knock out some work.
Cost Comparison – We’re often asked how much this or that costs here in the Philippines and Davao specifically and wanted to show you this GREAT purchasing power comparison resource we came across. Generally speaking, anything that is labor intensive (massage, maid services, etc.) is much cheaper in the Philippines and in Davao City specifically, but things like electronics tend to cost a bit more because of the out-of-the-way location for shipping the goods.
Safety – In our experience, much of what the media says about Davao comes across as quite alarmist. We’ve found Davao EXTREMELY safe when it comes to pickpockets, muggings, scammers, etc. (Much safer than Manila or Cebu when it comes to petty crime like this) We’re regularly out at all hours of the night and haven’t come across any real problems. There are certain dangers that come with any international travel and you should keep your wits about you, but I can safely say Davao City is probably safer than many major cities in the US. That being said, there are definitely places in Mindanao you should probably avoid and others areas you absolutely DO NOT want to go to under almost any circumstances. Still, the mayor (old and new!) have done a good job of keeping the city quite safe for tourists and visitors, albeit with some controversy.
Transportation/Travel In And Around Davao City, Philippines
The local transportation (like much of the Philippines) is the Jeepney and costs around $0.20 per trip. The Jeepneys have regular routes that are painted on the sides and can be a bit difficult for someone new to the city to figure out. You’ll most likely pay around $0.60 to get from one side of the city area all the way to the other side (Bangkal to Damosa, for example) but the real problem here is the amount of time it takes. (Anywhere from 1 to 2.5 hours, depending) Good for the experience of riding in one, but a terribly inefficient form of travel.
Taxi’s are our transportation of choice. The same trip listed above would cost approximately $4.50 and can be done in around 30-50 minutes, depending on traffic. (Davao is quite large geographically) I’ve found the taxi drivers in Davao to be EXCEPTIONALLY honest when compared to other cities and you should have no problem getting to anywhere you need to go as there are a ton of taxi’s available. (Except when it’s raining!) If you’re going somewhere that’s quite out of the way and you might have trouble finding a taxi back, negotiate with the driver and most will be willing to wait for you as it means a guaranteed fare back to the main parts of town.
Personal Vehicles – I’m a bit biased here, but I DEFINITELY don’t recommend driving yourself around Davao. Most of the driving here would be extremely confusing for foreigners and very hard to navigate. The locals seem to do quite well with each other, but there are bound to be mistakes and we’ve seen some pretty nasty accidents around town. Most of the foreigners that drive themselves and have been here for more than a couple of years have been in at least one accident.
NOTE: We looked into buying cars, hiring drivers, etc. While it would be nice to have a personal driver, the cost and utility just didn’t seem worth it and taxi’s seemed the better route to take. We know a few locals and foreigners that have gone this route and their driver typically doubles as a bodyguard. My personal opinion there is that unless you are a celebrity or part of the 00.1% of top-end business people a bodyguard is highly unnecessary and probably stands to put MORE of a target on your back! (If you’re reading this I’m almost 100% sure you don’t fit into either of those categories mentioned!)
Food Options In Davao
I’ll expand this section a bit further later, but some other local bloggers like Ria Jose and Blogie cover this topic quite well in Davao, actually. Check out DavaoDeli, DavaoFoodie, and DavaoFoodTrip to find some great information on the restaurants in town. In addition to the local bloggers mentioned above, you might also like to check out a guy known as “Mindanao Bob” who runs the Mindanao Magazine and LiveInThePhilippines.
One of the things I LOVE about SEAsia in general is the street food. In places like Thailand, Vietnam, Singapore, etc. you’ll find that some of the BEST restaurants or food options are from street stalls or tucked away restaurants you’ll have never heard of. Unfortunately, most foreigners find the street food options in the Philippines less than desirable. Aside from the unsafe health conditions of the food, it’s just not all that great. Still, if you’re here and brave you should definitely try some Balut (aka duck abortion!) or the Davao specialty, Durian. (I think it smells like rotten feet and tastes only slightly better…but so many SWEAR by it, I may be wrong?) While the street food is not so hot, there are some delicious dishes available you should check out, so don’t let me scare you off!
That being said, Davao has some AMAZING fruit options available. From amazingly fresh and delicious mangos, pineapples, and bananas to the more exotic fruits like Dragon fruit and Pomelo, you won’t be hurting for delicious fresh fruit on a daily basis. If you do venture around the city, make sure to stop by some of the fruit stalls and sample some of what they’ve brought in from the provinces.
As I mentioned, I’ll be adding more to this page in the weeks and months to come and will primarily use this as a resource for those looking to visit or setup their business in Davao.
