The Philippine hospitality industry is set for continued growth in 2025, with infrastructure investments and policy reforms driving optimism and fueling the development of new hotels and resorts.
Leechiu Property Consultants (LPC) noted that planned expansions at key airports, including Manila and Bohol-Panglao International Airports, along with new air routes to secondary cities, will enhance accessibility.
The proposed value-added tax (VAT) refund system for foreign tourists is also anticipated to drive higher spending, benefiting both the hospitality and retail sectors.
LPC projects the country's accommodation pipeline to expand by two percent in 2025, adding 7,560 rooms across 34 projects. Luzon will account for 54 percent (4,134 rooms), followed by Visayas (3,336 rooms) and Mindanao (90 rooms).
Hotels will lead with 4,989 rooms, while resorts and serviced apartments will contribute 1,755 and 741 rooms, respectively. While no branded residences are scheduled to open in 2025, growing market interest signals potential future developments.
Metro Manila will see the largest increase with 2,882 rooms, while Central Visayas will contribute 2,354 rooms, including new accommodations in Panglao (936 rooms), Mactan (869 rooms), and Cebu City (549 rooms).
Beach destinations like Boracay (832 rooms), Coron (230 rooms), and El Nido (178 rooms) will also see significant expansions. Additional growth areas include Baguio (256 rooms), Laguna (211 rooms), and Batangas (157 rooms).
"The robust pipeline of hotel openings in 2025 reflects the private sector’s confidence in the hospitality industry. We look forward to seeing inbound and domestic tourism grow to match this expansion,” Leechiu Hotels, Tourism, and Leisure Director Alfred Lay.
Despite a measured 9.6 percent average year-on-year growth in foreign arrivals over the past 11 months, confidence in the Philippine hospitality industry remains high among public and private stakeholders.
Lay said key milestones such as airport privatization, the VAT refund system for foreign tourists, and the opening of new accommodations nationwide underscore this optimism, setting the stage for a promising 2025.
LPC projects six million international arrivals for the Philippines in 2024, falling short of the Department of Tourism's 7.7 million target. While a projected 9.5 percent annual growth rate could bring the country back to pre-pandemic levels of 8.2 million arrivals by 2027, it still falls short of the government's ambitious 12 million goal.
The decline in Chinese tourist arrivals, from 1 million in 2019 to fewer than 244,000 in 2024, remains a significant challenge, and other source markets have yet to fully compensate for this shortfall.
However, continued collaboration between public and private sectors, supported by strategic investments and policy reforms, is expected to bolster the Philippine hospitality industry in 2025 and beyond.
“With expanded infrastructure, increased accommodation supply, and supportive policies, the industry is well-positioned for long-term recovery and growth,” Lay said.