Tourism set for stronger rebound in 2026 – Leechiu

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

December 13, 2025 | 12:00am

MANILA, Philippines — Leechiu Property Consultants (LPC) expects a stronger rebound in 2026 for the Philippine tourism sector on the back of improving international connectivity, robust domestic demand and renewed public–private coordination.

LPC cited sustained domestic travel, an expanding hotel pipeline, improved flight connectivity and enhanced promotional efforts as among the drivers that will accelerate recovery of the sector next year.

Further, long-term investment interest is expected to grow as infrastructure and policy reforms reshape opportunities across the hospitality and leisure sectors.

LPC said domestic travel continues to anchor the industry, boosted by rising household spending and sustained business travel and MICE (meetings, incentives, conferences and exhibitions) activity.

For 2025, average hotel occupancy is projected to reach 60.17 percent, slightly higher than the 2024 average of 59.62 percent.

LPC said the increase demonstrates resilient room demand even amid weaker foreign arrivals.

In terms of hotel pipeline, LPC said the country is set to add 12,249 keys across 50 projects in 2026, reflecting strong developer confidence in long-term tourism fundamentals.

Metro Manila will continue to lead supply additions, but significant growth is also seen in Cebu, Palawan, Baguio, Boracay and Davao.

LPC said the upcoming hotel pipeline shows a balanced spread across regions, with upper midscale hotels emerging as a favored segment due to lower development costs and faster investment returns.

It said local hotel brands are also expanding to cater to evolving traveler preferences.

LPC’s projected tourism sector recovery is likewise supported by streamlined visa processing, particularly for the Chinese market, as well as expanded long-haul and regional flight routes.

LPC said these improvements underpin expectations of stronger international demand by 2026, especially toward the latter part of the year when the full impact of these initiatives is anticipated to take effect.

It said that the Department of Tourism’s restored P1 billion promotions budget for 2026 is likewise expected to boost significantly global marketing efforts, complemented by private sector insights.

The full benefits of the increased promotional budget are seen materializing toward the end of 2026 and into 2027.

However, LPC said the allocation remains below the levels seen in competing destinations.

“We expect inbound foreign arrivals to grow steadily in 2026. The rollout of e-visas for Chinese travelers, expanding flight routes and a more diversified tourist mix are all supporting recovery,” LPC director for hotels, tourism and leisure Alfred Lay said.

“A softer peso is also making the Philippines more competitive, and with private investors now taking a larger role in airport operations, connectivity is set to improve. Growth will be modest, but the trajectory is unmistakably upward,” he said.