- Despite falling short of government targets, international tourist arrivals in the Philippines grew by 9.2% in 2024, boosting the hospitality market and contributing significantly to the country’s economy.
- The hotel occupancy rate in Metro Manila increased in 2024 due to strong demand from both leisure and corporate guests, and room rates are projected to rise further in 2025.
According to JLL, the Philippine hospitality market demonstrated resilience and growth in 2024, significantly contributing to the country’s economy. Despite not meeting the government’s target, international tourist arrivals reached 5.9 million in 2024, marking a 9.2% year-on-year growth. Consequently, tourist receipts increased to over PHP 760 billion, surpassing the pre-COVID level of PHP 600 billion.
Metro Manila’s hotel occupancy rose to 83.2% in the fourth quarter of 2024 due to strong demand from leisure and corporate guests, particularly during the holiday season. Group bookings for corporate events and staycations increased occupancy levels across different segments. Room rates also rose, reflecting the strong occupancy, and are expected to increase to around PHP 8,300-8,400 per room per night by the end of 2025.
Between 2025 and 2029, Metro Manila is expected to see an influx of approximately 2,300 new rooms, with Makati CBD, Pasay City, and Parañaque City accounting for about 54% of this new supply. Foreign operators such as Marriott International, The Ascott Limited, Okura Nikko Hotels, Raddison Hotel Group and Polaris Holdings Co., Ltd. will manage around 82% of the new stock.
The Philippine hospitality market is poised for additional growth, with tourist arrivals predicted to continue rising due to a global recovery in the hospitality sector. This trend is expected to boost hotel occupancy in the long term as business and leisure guests continue visiting the country. Consequently, room rates are likely to increase due to this demand recovery. Overall, the Philippine hospitality industry remains an attractive market with substantial potential for sustained growth in the future.
