The Philippines’ international arrivals remain disappointingly low compared to our ASEAN peers. The country has yet to breach pre-COVID figures, while Malaysia and Vietnam have more than surpassed their respective pre-pandemic international arrivals. In our view, boosting the country’s tourism sector is important as it is a property segment that can help generate more employment opportunities in the countryside. More tourists mean more hotel investments across the Philippines. The private sector cannot do it alone, and the government needs to fulfill its role in plugging gaps and enticing more long-haul and high-spending foreign tourists to visit the Philippines.
In 2026, Metro Manila will record its biggest hotel completion since 2018. From 2026 to 2029, about half of new hotel completions across the capital region will have foreign brands, including Mandarin, Dusit, Canopy, and Moxy. Philippine developers remain aggressive in partnering with foreign hospitality brands.
Domestic market stokes hotel demand
Colliers Philippines believes that domestic travelers continue to prop up hotel occupancies and daily rates, especially in key hubs including Metro Manila, Cebu, Cagayan de Oro, Davao, and Clark in Pampanga. The staging of briefings complementing the ASEAN Summit 2026 in Cebu, Bohol, and Manila should boost the Philippine government’s efforts to lift the country’s stature as a MICE destination in the region.
In our view, the government should focus on expanding and diversifying the Philippines’ leisure demand base, with some countries from Europe and the Middle East being the ‘low-hanging fruits’. Overall, we believe that developers should further explore the feasibility of offering conference halls and meeting rooms, as well as consider partnering with foreign hospitality brands to help raise Philippine tourism’s competitiveness.
The public sector, on the other hand, should continue improving the country’s infrastructure network–from roads to airports–to ensure ease of travel and to accommodate more local and international travelers. An intensive public-private sector cooperation is crucial in improving the country’s travel and tourism competitiveness.
Maximize tourism department’s latest initiatives
In our view, hotel operators should be mindful of the government’s latest programs aimed at attracting long-staying and high-spending foreign tourists. Hotel operators should be on the lookout for tourism policies aimed at propping up hotel occupancies and expenditures within and outside Metro Manila. The Philippine government, for instance, has introduced visa-free entry for Indian and Chinese nationals.
In addition, new international flights have been launched from key and emerging markets such as Russia, Palau, Canada, and India. In our view, hotel players should also target long-haul and high-spending tourists, including those from a number of European and Middle Eastern markets.
Complement hotels with MICE facilities
Colliers sees several in-person events driving demand for meetings, incentives, conferences, and exhibitions (MICE) facilities. We believe that in-person events such as pharmaceutical product launches, property exhibits, bridal fairs, technology-related trade fairs, and travel & tourism expositions propel take-up for MICE and accommodation facilities.
Colliers believes that this year will be a turning point for the Philippine government’s efforts to promote the country as a regional MICE hub. The Philippines is hosting the 48th and 49th ASEAN Summits. As part of the conference, Cebu and Bohol hosted this year’s ASEAN Tourism Forum, ASEAN Travel Exchange, and other key meetings, with the ASEAN Leaders’ Summit to be held in Cebu. Manila is also scheduled to host related events in November.
We encourage developers with hotels near major convention centers to partner with event organizers and to offer customized packages (e.g., discounted room rates, shuttle services) that appeal to MICE delegates, including businessmen attending high-profile trade conferences.
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