Philippines Tourism & Hospitality Outlook
Navigating Trends in Metro Manila & Makati (2023-2025)
Overall Market Performance
International Visitor Arrivals (2023-H1 2025)
While 2023 saw strong recovery, 2025 has faced a slight slowdown, prompting a recalibration of targets.
Tourism's Total Contribution to GDP (WTTC Data)
WTTC's broader measure includes direct, indirect, and induced impacts, showing the sector's full economic footprint.
Direct Contribution to GDP (PSA Data)
8.6%
in 2023
8.9%
in 2024
This represents the direct economic impact from tourist spending, showing a steady growth.
Tourism Employment
11.2M
Jobs in 2024
11.7M
Jobs Forecast 2025
The sector continues to be a major job creator, supporting a significant portion of the national workforce.
Market Dynamics: Inbound vs. Domestic
2023 Overnight Visitors
~48.5M
Domestic Tourists
~6.7M
International Tourists
Domestic tourism remains the backbone of the industry by visitor volume.
2024 Hotel Bookings Split
54%
International Bookings
46%
Domestic Bookings
A significant shift in hotel guest composition post-pandemic, with international guests leading hotel demand.
International Tourist Source Markets (Q1 2025 vs. Change from Q1 2024)
South Korea leads in volume but is declining, while the US and Japan show strong growth. China's recovery remains a challenge.
Visitor Segmentation (Illustrative)
International Visitor Types
Illustrative breakdown based on market trends and insights.
Domestic Visitor Types
Illustrative breakdown reflecting local travel behaviors and preferences.
Why Visit Metro Manila & Makati?
Primary Motivations for Visiting Manila/Makati (Illustrative)
Based on qualitative insights, these are key drivers for visitors to the capital region.
Hotel Performance: Metro Manila & Makati
Metro Manila Hotel Occupancy & ADR
Occupancy rates show strong recovery, nearing pre-pandemic levels. ADRs are recovering, especially for luxury segments.
Makati: Demand Drivers & Outlook
- 🏢 Strong Business Travel: Makati CBD's robust business environment drives corporate and MICE demand for 4-5 star hotels.
- 🎨 Event-Driven Travel: Events like "Art Fair Philippines 2025" significantly boost leisure demand.
- 🚧 Infrastructure Delays: Metro Manila Subway construction impacts convenience; benefits are long-term.
- ⚡ Transport Strikes: Occasional strikes (e.g., March, June 2025) temporarily disrupt mobility.
Makati's high-end segment generally performs well, suggesting any underperformance is likely isolated to specific properties rather than a market trend.
Key Influencing Factors
Economic & Macro Factors
- Currency Fluctuations: Peso volatility can impact affordability for international tourists.
- Inflation: Rising costs (e.g., 1.4% in June 2025, 1.8% average Jan-June 2025) affect tourist spending and business operations.
- Safety & Security: Perceptions persist despite DOT efforts; 24/7 tourist assistance is being implemented.
- Climate Events: Typhoons (e.g., Danas in July 2025) pose short-term disruptions.
Government Initiatives & Airline Capacity
- "Love the Philippines" Campaign: Ongoing global promotion.
- Expanded Visa-Free Access: Initiatives for India, Taiwan.
- Enhanced Tourist Infrastructure: Focus on Tourist Rest Areas, first aid, MICE, wellness tourism.
- Airline Capacity Boost: PAL expanding international (Seattle, Beijing, Da Nang) and domestic routes, increasing seat availability.