International visitor numbers fell to 2.54 million from January to May, down 1.2 percent year on year, with South Korean arrivals plunging 19 percent and Chinese visitors down 32 percent, highlighting the slow recovery of inbound tourism.
Domestic tourism drives business
Colliers said strong demand for meetings, incentives, conferences, and exhibitions (MICE) has helped sustain occupancy and room rates despite weaker international traffic.
Average daily rates rose 5.1 percent year on year in the first half, with five-star hotels leading at 9 percent, driven by high-spending travelers and delayed hotel completions that tightened supply.
Foreign brands still ramping up presence
Only 97 rooms were delivered in the first half, with another 1,100 expected this year.
From 2025 to 2027, Colliers forecasts 1,700 new rooms annually, with major foreign hotel brands such as Mandarin Oriental, Citadines, Dusit, Canopy by Hilton, and Moxy Hotels leading expansion, particularly in Bay Area and Quezon City. “
We are seeing a relentless expansion of foreign hospitality brands in the Philippines. The travel and tourism sector has tremendous potential given the projected rise in arrivals and modernization of airports across the country,” said Joey Roi Bondoc, director and head of research at Colliers Philippines.
—Edited by Miguel R. Camus
