PH hotel sector to add 40,000 rooms across 150 projects in five years

The Philippine hotel industry expects 150 new hospitality projects adding 40,000 rooms over the next five years, according to the Philippine Hotel Owners Association. International arrivals reached 4.11 million in the first eight months of 2026, up 3.7% year-on-year but still below pre-pandemic leve

The Philippine hotel industry is set to expand by 40,000 rooms across 150 hospitality projects over the next five years, the Philippine Hotel Owners Association (PHOA) said. PHOA Executive Director Benito C. Bengzon, Jr. said the pipeline would help boost the country's competitiveness by offering more options to travellers.

Foreign tourist arrivals stood at 4.11 million in the eight months to August, up 3.7% from a year earlier, according to the Department of Tourism. International arrivals remain below pre-pandemic levels, Mr Bengzon said, noting that the industry was doing about 600,000 to 650,000 arrivals before the pandemic. “But the increase over last year is something that we can build on,” he added.

Mr Bengzon said the long-haul tourism market was most affected by the Middle East conflict. “Looking at the tourists coming from the Middle East, there’s some hesitation to travel long distance, including to the Philippines,” he said. “Of course, also among Europeans, which use the Middle East hubs as a transit point, you’re bound to see some slowdowns.” Tour operators have revived caravans using land transportation as airfares remain high, he added.

The short-haul market, which includes South Korea, Japan and China, has been a bright spot for tourist arrivals, Mr Bengzon noted. Philippine Tour Operators Association President Maria Lourdes Flor Japson said there was a need to attract visitors from such markets, particularly from the Association of Southeast Asian Nations (ASEAN). “I think it’s good to consider also cross-marketing or joint collaboration with fellow ASEAN countries. Because the Philippines and other ASEAN countries have a lot in common,” she said.

Tourism companies should be more creative in packaging their offerings, Ms Japson said. She noted that emerging markets that could attract visitors include health and wellness, education, and volunteerism.