Officials see hotel demand rising by 2028

The Department of Tourism (DOT) has projected significant growth in the Philippine hospitality industry by 2028, highlighted during the opening of Philippine Hotel Connect 2025, a hotel investment and networking summit held July 24 to 25 in Pasay City.

Speaking on behalf of Tourism Secretary Christina Garcia Frasco, Undersecretary Shahlimar Hofer Tamano announced that hotel room demand is expected to exceed 456,000 keys in the next three years—up from the current inventory of just over 335,000.

“By 2028, demand for hotel rooms will exceed 456,000 keys. Today, we are at just over 335,000. This is your moment, to invest where growth is happening, to build where opportunity is rising, and to shape the next chapter of Philippine tourism together,” Tamano said, quoting the DOT chief’s prepared remarks.

The department underscored the importance of positioning the Philippines as a regional tourism leader, citing infrastructure initiatives, investor-friendly reforms, and the global appeal of Filipino hospitality as drivers of growth.

According to DOT data, total tourism expenditures reached P3.86 trillion in 2024, contributing significantly to the country’s economy. The agency reported that visitors are staying longer, spending more, and returning more frequently. Domestic tourism—now valued at over USD 66 billion—has become the largest in Southeast Asia, while international travelers are contributing higher per capita spending across more regions.

“Tourism is no longer peripheral, but central to our national growth story,” Frasco said in the statement.

Now on its second year, Philippine Hotel Connect was organized by the Philippine Hotel Owners Association (PHOA) under the theme “The Long Game: Unlocking the New Edge in Filipino Hospitality and Tourism.” The event drew more than 250 hotel executives, developers, investors, and tourism officials to the Manila Marriott Hotel.

PHOA President Arthur Lopez thanked the DOT for its continued engagement with the hospitality sector. “I extend my deepest appreciation to DOT Secretary Christina Garcia-Frasco for her inspiring leadership and vision for the tourism sector. Your unwavering support has motivated us to host this event for the second consecutive year,” Lopez said.

DOT Undersecretaries Ferdinand Jumapao and Verna Buensuceso, Assistant Secretaries Czarina Zara-Loyola, Christine Joy Cari, and Sharlene Zabala-Batin, along with Directors Azucena Pallugna and Alven Talisic, were among the attendees. Also present was Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Chief Operating Officer Mark Lapid.

An opening forum featured Lapid, Tamano, PHC 2025 Chairperson Francis Gotianun, Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco, and Lopez. The summit included high-level discussions led by prominent figures including Kevin Tan of Alliance Global Group Inc. and Mariana Zobel de Ayala of Ayala Land Inc.