Friday, June 27, 2025
Philippine hospitality is experiencing an exciting revival, particularly within Manila, its vibrant capital city. Thanks to huge infrastructural developments as well as foreign tourist inflows on the rise, Philippine hotels find themselves on a growth trajectory set to benefit MICE (Meetings, Incentives, Conferences, and Exhibitions) travel. Hotel room supply will increase with an addition of 2,680 rooms by 2025, according to a recent report published by Colliers, driving the industry’s growth and supporting the country as a hub of choice as a MICE hub.
In 2024, the Philippines saw nearly 5.95 million tourist arrivals, marking a positive but cautious recovery in the aftermath of the global pandemic. While the country has not yet reached its pre-pandemic tourist arrival targets, this number represents a steady comeback, and the impact on the local economy has been significant. Tourism spending reached a record PHP 760 billion, a noteworthy figure that has positioned the Philippines as a leader in Southeast Asia when it comes to per-visitor expenditure.
This surge in spending not only reflects the growing appeal of the Philippines as a leisure destination but also highlights the increasing importance of business travel and MICE events, which have become essential components of the country’s tourism ecosystem. The rise in MICE activities, particularly in Metro Manila’s business districts, has been vital to the recovery of the hospitality sector, as corporate events contribute a substantial portion to the overall demand for hotel rooms.
A critical factor in this expansion is the improvement in the country’s infrastructure. According to the Colliers report, developers are encouraged to focus on emerging destinations across the Philippines, especially in light of the newly approved 99-year land lease law. This new regulation, which is moving through the legislative process, is expected to attract foreign brands and create more integrated leisure hubs. The presence of foreign hotel chains will not only increase the diversity of available accommodation options but also help develop new business travel infrastructures that are tailored for MICE events.
This legal shift, combined with ongoing improvements to the country’s transportation networks and the creation of more modern convention facilities, will provide a fertile ground for future investment. As such, both local and international developers are being urged to collaborate with governmental authorities to identify key areas for growth, particularly those near major airports and transportation hubs.
In response to the evolving landscape, foreign hotel brands are stepping up their expansion efforts in the Philippines by partnering with local developers. Leading international hospitality names such as Dusit, Wyndham, Accor, Marriott, and The Ascott Group are actively establishing a stronger presence in both established and emerging markets across the country. These partnerships aim to create more upscale hotels and convention facilities that can cater to the growing demand for MICE events.
The collaboration between foreign brands and local developers is expected to drive the creation of integrated tourism-centric townships and convention venues that will significantly boost the Philippines’ position as a top destination for international conferences and events. Moreover, the ongoing integration of land lease extensions and the development of Real Estate Investment Trusts (REITs) are anticipated to provide additional momentum for the tourism and hospitality sectors.
The demand for hotel rooms in Manila has seen a significant uptick, with occupancy rates reaching 64% in the latter half of 2024. This marks a continued upward trend in the region’s hotel market, fueled by both leisure and business travel. The increase in Average Daily Rates (ADR) by 2.7% year-on-year further underscores the health of the hospitality sector. As more international travelers and business delegates flock to the city for MICE events, hotels are experiencing higher demand across various categories, particularly those offering premium services.
However, despite the growing demand, the availability of new rooms has been somewhat limited due to delays in construction. This has created a challenge for the hotel industry, as the demand for accommodation often outpaces the pace at which new properties are coming online. Fortunately, the situation is expected to improve by 2025, when the 2,680 new hotel rooms are slated to open, primarily in key areas such as Makati and the Bay Area. These developments will go a long way in addressing the shortage of hotel rooms in the capital, thereby offering more options for MICE attendees.
Interestingly, outside of Metro Manila, hotel occupancy rates have soared. Destinations such as Clark and Cebu have seen occupancy rates climb between 70% and 80%, driven by growing interest in these regions as alternative MICE destinations. As the Philippines continues to diversify its offerings, the demand for hotels in other key cities will likely keep pace with the rising demand for Metro Manila’s accommodations.
Manila’s long-term outlook for its hospitality market, particularly in the MICE sector, is positive. Colliers is forecasting occupancy of hotels will remain constant throughout 2025 with a moderate increment of ADR by about 3%. Such an increment would be a result of a constant inflow of foreign tourists, as well as a high uptake of MICE destinations. Owing to a constant resurgence of business travel, Manila will remain a center of global conferences, conventions, and corporate events.
To capitalize on this opportunity, developers will have to integrate with airport infrastructure projects to discern upcoming corridors of growth. Inclusive investment into MICE-ready infrastructure will help preserve the city’s competitive edge within the global business tourism sector. As tourism continues to evolve, the Philippines will be ideally positioned to capture maximum advantage of the opportunity presented by the growth of MICE tourism by utilizing domestic as well as foreign knowledge.
References: Department of Tourism, Republic of the Philippines
Tags: Bay Area, Business Travel, cebu, Clark, hotel expansion, Makati, Manila, MICE, Philippines, southeast asia, Tourism
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