Mapping the tourism growth in 2026
Improvements in international connectivity, resilient domestic travel, and stronger public–private coordination will lift the tourism industry next year, says Leechiu Property Consultants
Published Jan 16, 2026 04:09 pm
The tourism industry is backed by domestic travel. (DOT-Metro Manila Facebook)
In its fourth-quarter Philippine market report, Leechiu Property Consultants disclosed that foreign arrivals slightly dipped to 5.8 million, the projected total by the end of 2025, compared to the 5.9 million arrivals from last year. The firm also forecasted that the tourism sector will be riding on a new momentum in the coming year based on the following initiatives: expanded flight routes, streamlined visa systems, and more diversified tourism destinations. In addition, the restoration of the ₱1 billion in government funding for tourism promotions is anticipated to bring in more arrivals from high-impact global marketing campaigns.
“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. 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,” said Alfred Lay, Director for Hotels, Tourism, and Leisure at Leechiu Property Consultants (LPC).
Foreign tourist arrivals are expected to pick up in 2026.
For 2025, domestic tourism served as the industry’s anchor, delivering business travel and MICE activities. At the end of the previous year, the average occupancy was projected at 60.17 percent, a figure slightly higher than 59.62 percent in 2024, reflecting a consistent room demand.
In 2026, rising disposable incomes and greater regional mobility are expected to reinforce domestic travel. Key travel events include the hosting of the ASEAN Tourism Forum 2026 in Cebu and the opening of the SMX Convention Center Seaside Cebu in the last quarter of the year.
The industry is also expected to expand with the addition of 12,249 hotel keys across 50 projects in 2026. Metro Manila will lead the growth, followed by Cebu, Palawan, Baguio, Boracay, and Davao, continuing the trend of building developments outside of the capital region. The report also underscored increasing partnership between developers and international hotel operators as provincial markets become more competitive and diverse with higher guest expectations.
This year, more accommodations will soon be available in Metro Manila and in the provinces.
LCP also noted that upper midscale hotels are gaining developer interest due to lower construction costs and faster returns, while upscale and luxury segments remain active, supported by rising demand for premium, branded stays.
For 2026, the Department of Tourism has earmarked a billion-peso promotional budget to strengthen the country’s visibility in the international tourism market. The enhanced marketing budget will support broader global marketing initiatives that can be further amplified through private-sector collaboration. LCP underlined that “while the amount remains lower than what competing destinations allocate, it is expected to generate more impact toward the end of 2026 and into 2027.” This year, the firm estimated an increase in foreign tourist arrivals of 6.3 million.
“Despite the modest dip in foreign arrivals this year, several indicators point to a more promising 2026. Strong domestic travel, ongoing hotel development, improving flight connectivity, and enhanced promotional work all contribute to a more supportive operating environment. Over the long term, infrastructure upgrades and policy reforms are expected to expand opportunities across hospitality and leisure,” LCP concluded.