Why improving tourism’s competitiveness is crucial for PH property

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.

Source: Philstar

Iconic hotels return as tourist arrivals hit 2.9M

The real estate market maintained its growth momentum in the first half of 2025, bolstered in part by a resurgence in tourism and strong demand across the office, industrial, and residential sectors, according to Santos Knight Frank’s latest market report.

Tourism receipts saw a notable boost, supported by the return of iconic hospitality brands, including Sofitel in Cebu and InterContinental in New Clark City. The resurgence of these landmark hotels, along with government-led initiatives such as tourism tax refunds and visa-free entry for key markets, has driven tourist arrivals to 2.9 million in the first half. Luxury hotel rates surged 11 percent, with Taguig commanding the highest average nightly rate at P14,991. High-end developments like Accor-Megaworld’s Mercure and Banyan Tree’s entry in New Clark City further signal confidence in the sector.

Net office absorption hit 192,000 sqm in H1 2025, driven primarily by the BPO sector expanding within Metro Manila. Taguig posted the lowest vacancy rate at 15 percent and the highest average asking rent at P1,248/sqm/month, surpassing the Metro average by 21 percent. A total of 158,000 sqm of new supply entered the market, with over 403,000 sqm more expected by year-end.

Manila was ranked 9th globally in Knight Frank’s Q1 2025 Prime Global Cities Index, with residential prices up 5.5 percent year-on-year. Prime villages like Forbes Park and Dasmariñas posted double-digit price growth, reflecting ongoing demand driven by limited supply.

In the industrial segment, CALABARZON and Central Luzon continue to attract foreign firms in manufacturing, logistics, and pharmaceuticals. Rental rates range from P230 to P290/sqm/month, offering competitive options for multinationals.

The opening of Smith & Wollensky at BGC’s Finance Center highlights the increasing presence of premium global brands, further validating Metro Manila’s growing appeal as a luxury retail and dining hub.

As foreign and local investments continue to flow, the Philippine real estate market demonstrates both resilience and opportunity across sectors — from the return of legacy hotels to the steady rise of industrial parks and luxury developments.

Source: Context

Tourism contributes 8.9% to Philippine GDP in 2024

The share of the tourism industry in the Philippine economy rose to a five-year high of 8.9% in 2024, the Philippine Statistics Authority (PSA) said on Thursday.

Tourism direct gross value added (TDGVA) — an indicator of the economic contribution from tourism-related activities — jumped by 11.2% year on year to P2.35 trillion last year, preliminary data from the PSA showed.

However, TDGVA growth was slower than the 49.9% surge logged in 2023 and the slowest annual growth since the 10.3% expansion in 2020.

Despite the slower growth, the share of TDGVA to the economy rose to 8.9% in 2024, the highest share since the 12.9% recorded in 2019.

By industry, country-specific tourism characteristics goods – shopping accounted for 21.8% of the total with P512.68 billion. It was followed by miscellaneous services (20.2% share or P476.23 billion) and accommodation services for visitors (18.4% share or P432.9 billion).

Domestic tourism expenditure, which includes resident visitors’ spending within the country on a domestic trip or as part of an international trip, grew by 16.4% to P3.16 trillion last year.

Outbound tourism spending reached P345.68 billion in 2024, rising by 37.5% from P251.35 billion in 2023.

Inbound tourism expenditure, meanwhile, inched up by 0.4% annually to P699.99 billion.

Total employment in the tourism sector grew by 6.1% to 6.75 million in 2024. Tourism accounted for 13.8% of the total jobs in the country in 2024.

The majority of the tourism-related jobs were centered on miscellaneous activities. The health and wellness sector employed 1.83 million, accounting for a 27.1% share.

The accommodation and food and beverage sector had 1.69 million workers (25% share), while passenger transport had 1.67 million workers (24.7%).

Reinielle Matt M. Erece, an economist at Oikonomiya Advisory and Research, Inc. said easing inflation helped boost tourism spending last year.

“Lower inflation relative to 2023 and better economic conditions in the country may have encouraged tourists due to better prices,” he said.

Inflation averaged 3.2% in 2024, cooling from the 15-year high of 6% in 2023.

Last year, the Department of Tourism recorded 5.95 million visitor arrivals, falling short of its 7.7 million target.

“While Philippine tourism has made substantial progress — particularly in revenue generation — it hasn’t achieved full recovery in terms of visitor numbers, and the pace of recovery appears to be slowing in early 2025,” Leonardo A. Lanzona, Jr., an economics professor in Ateneo de Manila University, said.

Mr. Erece is optimistic that tourist numbers will improve this year.

“The strong domestic economy can also be a positive factor in improving local economies and their respective tourism potential,” he said.

Source: Business World