DOT launches an e-visa program to boost Chinese arrivals

• International tourist arrivals reached 3.9 million as of September 2025, down 3.5% from 2024, with South Korea (22.1%), the USA (17.2%) and Japan (8.0%) being the leading source markets. Overseas Filipino arrivals hit 392,000, up 10.3% y-o-y.
• The Department of Tourism launched e-visas for China, aiming to recover from the sharp decline in Chinese visitors from 1.7 million in 2019 to 312,000 in 2024. The 14-day e-visas allow business and tourism entry via NAIA or Mactan-Cebu airports only.

Hotel supply steady in Q3 2025 with new rooms expected by year-end

• Hotel occupancy hit 79.5% in Q3 2025, up 105.7 bps y-o-y. Inventory remained unchanged in the quarter, with the market still monitoring approximately 1,000 new rooms expected to complete before year-end, adding to the Metro’s overall room stock.
• Foreign brands continue to demonstrate strong market confidence, leading the development pipeline with multiple project completions scheduled for 2026. Overall, approximately 3,800 new rooms are anticipated for the upcoming year across the market.

Metro Manila hotels post strong Q3 2025 performance

• The Metro Manila hotel market demonstrated strong momentum with RevPAR advancing y-o-y through September 2025 as both occupancy rates and average daily rates increased.
• Average room rates reached PHP 7,931, increasing 0.2% q-o-q but declining 0.5% y-o-y. However, the luxury and upscale segments maintained strong performance throughout the year with improving occupancy levels.

Outlook: The hospitality sector shows growth potential

• The tourism sector shows recovery potential as the new China e-visa programme aims to help offset declining visitor numbers, while established markets like South Korea and the USA maintain steady contributions to overall arrivals.
• The hotel supply appears well-positioned for growth by year-end, and there are additional rooms planned for 2026, supported by strong foreign brand confidence and sustained luxury segment performance.