Philippines foreign tourist arrivals grew by 6.2% Y-o-Y

• Foreign tourist arrivals reached 2.9 million as of June 2026, up 6.2% Y-o-Y, with the USA leading with 591,569 visitors. To sustain growth, the DOT is enhancing connectivity, expanding experiences and boosting private-sector engagement in tourism development.
• Metro Manila’s hotel occupancy fell by 70 bps Q-o-Q to 81.1%, driven by softer demand across the metro.

No new supply enters the market

• No new supply entered the market in Q2 2026. However, an additional 3,500 rooms are expected to open in Metro Manila before year-end.
• Local brands dominate the hotel pipeline, reflecting robust market confidence and strong foreign developer activity, with approximately 6,200 new rooms expected to open through 2030.

Market eases in Q2 2026

• Metro Manila hotels showed easing activity in Q2 2026, with both ADR and RevPAR decreasing quarter-on-quarter, reflecting typical mid-year demand moderation.
• Metro Manila hotels recorded an average room rate of PHP 7,976 in Q2 2026, marking a 0.7% decrease from the previous quarter.

Outlook: Enhanced connectivity and supply expansion to shape market dynamics

• Enhanced Philippines–Vietnam air connectivity through Vietjet’s new Cebu route and expanded Vietnam Airlines partnership will boost capacity and joint marketing, positioning both markets for continued tourism growth.
• New hotel supply entering before year-end, led by local brands, may intensify competition. While this expansion reflects strong developer confidence in Metro Manila’s tourism market potential, operators may have to navigate heightened competitive dynamics.