England Under-20 winger Phillips had his superb displays for the the Seasiders rewarded with a call-up to the Scotland senior squad on Monday, for whom he qualifies through his grandparents.
"I think any of the top teams should look seriously at him because I think he's that good," said Holloway. "With his end product at the minute, I can't see anybody being that much better than him in the England set-up.
"That's how much I believe in him and I'm only saying that because he's doing it. I think the boy is coming on in leaps and bounds."
In the Blackpool Gazette, Holloway added: "What more did Matt need to do to get in the Under-21s at least? He wasn't getting picked and I feel a bit irked.
"My country, I believe, has now lost one of the best players it has ever had. He is going to Scotland. I don't blame Matt at all for that."