In 2026, tourism investment in the Philippines is concentrated in Cebu (Mactan) and Bohol (Panglao), Palawan (San Vicente and Coron), Siargao, and the Manila Bay and Clark corridor. About 12,249 new hotel rooms are due to open this year, and the government is steering investors toward Tourism Enterprise Zones (TEZs) that offer incentives.
Key takeaways
Cebu and Bohol lead provincial hotel growth, with nearly 60% of new foreign-branded provincial hotels from 2026 to 2029 expected in Cebu, Bohol, Bacolod and Iloilo.
Palawan hosts the country’s first Tourism Enterprise Zone in San Vicente and Megaworld’s 462-hectare Paragua Coastown.
Siargao is moving upmarket, with luxury villa resorts and a 167.7-hectare TEZ in Bucas Grande.
Upper-midscale hotels are the segment developers favour; luxury, wellness and MICE are government priorities.
Foreign investors cannot own land directly, but can lease it long term or buy condo units within the 40% foreign cap.
Tourism capital in the Philippines is flowing to a handful of clear hotspots: Cebu and Bohol in the Visayas, Palawan, Siargao, and the Manila Bay and Clark corridor in Luzon. For foreign investors weighing hotels, resorts or tourism-linked real estate, knowing where developers are already building is the best starting point.
The numbers point to sustained confidence. Leechiu Property Consultants (LPC) expects 12,249 new hotel keys across 50 projects to open in 2026, after a national pipeline of about 40,000 rooms and roughly PHP 250 billion of private investment was mapped in the 2024 Philippine Accommodation Pipeline Report. Visitor arrivals reached about 2.96 million in the first half of 2026, up 6.16% year on year, with the United States now the top source market (DZRH).
By island group, Luzon holds about half of the pipeline, the Visayas 42% and Mindanao 8%. Here is where the activity is concentrated.
Top hotel pipeline locations in the Philippines
Source: 2024 Philippine Accommodation Pipeline Report by PHOA and Leechiu Property Consultants, via Inquirer and TTG Asia. An updated 2026 edition was released in September 2026.
Why are Cebu and Bohol the top tourism investment hotspots?
Cebu and Bohol have overtaken Boracay as developers’ favourite leisure markets. In the 2024 pipeline, Lapu-Lapu City on Mactan Island ranked first nationwide with 4,786 keys across 10 projects, and Panglao Island in Bohol ranked second with 4,401 keys across 16 projects (Inquirer).
Colliers expects Cebu, Bohol, Bacolod and Iloilo to account for nearly 60% of new foreign-branded hotels opening in the provinces from 2026 to 2029. Cebu averaged close to 70% occupancy in the first half of 2026 (SunStar).
Projects to watch include JW Marriott Panglao, the island’s first luxury resort, along with Sofitel Cebu, Pullman Cebu Mactan and Radisson Red Cebu Mandaue. New convention venues such as SMX Seaside Cebu, Mactan Expo Center and the Bohol International Convention Center are also making the region a stronger meetings and events destination (Hospitality News PH).
What tourism projects are being built in Palawan?
Palawan is moving from scattered boutique resorts to large master-planned developments. San Vicente, home to Long Beach, is the site of the country’s first Tourism Enterprise Zone (TEZ) being implemented by the Department of Tourism and TIEZA (Travel Update).
Megaworld is building Paragua Sands Hotel and Savoy Hotel Palawan inside its 462-hectare Paragua Coastown in San Vicente, with more than 600 rooms combined (Megaworld). In the north, Coron is drawing new brands, with The Lind among the operators expanding there.
Siargao and Mindanao: the next resort investment frontier
Siargao is turning from a surf town into an upscale island market. Robinsons Hotels & Resorts is opening a 20-villa luxury resort on the island (Inquirer), and Cebu-based BE Group is building its first Mindanao resort there (SunStar). TIEZA has also signed a TEZ agreement covering 167.7 hectares in Bucas Grande, Socorro, close to Sohoton Bay (Travel Update).
Elsewhere in Mindanao, Davao and Cagayan de Oro are drawing serviced apartments and branded hotels. Smaller provinces such as Misamis Occidental are courting foreign investors, including a proposed South Korean-backed golf course (Tribune). LPC also names Siquijor and Dumaguete as new frontiers for hotel development (Malaya).
Luzon still carries the largest share of new rooms, concentrated in Metro Manila and Clark. Along Manila Bay, integrated resorts and casino hotels account for about 2,863 pipeline keys in Parañaque, including Westside City Resorts, Hotel Okura Manila Bayshore and Banyan Tree Manila Bay (TTG Asia). Colliers expects about 3,100 new rooms in the capital region in 2026, the most since 2018.
Outside the capital, LPC also sees significant 2026 supply in Baguio and Davao (Philstar). Upper-midscale hotels are the segment developers prefer, because they cost less to build and return capital faster.
The Department of Tourism now pitches tourism as an investment platform rather than only a marketing exercise. It is reshaping the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) into a stronger investment promotion agency. It has named five flagship TEZs as anchors for regional investment: Palawan, Bataan, Bohol, Corregidor Island and Rizal Park (Tribune).
Registered TEZ enterprises can access fiscal and non-fiscal incentives administered by TIEZA. The segments the government most wants to attract are:
Luxury and upscale hotels and integrated tourism developments
Wellness and longevity destinations
Convention and exhibition (MICE) facilities
Sustainable resorts and eco-tourism
Cruise, sports, halal, farm, education and retirement tourism
The opportunity is real, but the structure of the deal matters as much as the location. Before signing, foreign investors should check four things:
Land ownership: Philippine land can only be owned by Filipino citizens or by companies at least 60% Filipino-owned. Foreign investors typically use long-term land leases or a compliant corporate structure instead.
Condominium units: Foreigners can buy condo units directly, as long as foreign ownership in the project stays within 40%.
Incentives: TEZ registration with TIEZA, or registration with another investment promotion agency, can bring tax and non-tax incentives. Eligibility and timing should be confirmed before the project starts.
Market risk: LPC has warned that the delayed effects of the energy crisis could weigh on hotel performance in the second half of 2026. With more than 40,000 rooms in the pipeline, oversupply in some markets is also a risk (Context.ph).
Due diligence on title, zoning, environmental clearances and coastal easements is essential, particularly for beachfront land in emerging islands.
frequently Asked questions?
Where is tourism investment growing in the Philippines in 2026?
The main hotspots are Cebu (Mactan Island), Bohol (Panglao Island), Palawan (San Vicente and Coron), Siargao, and the Manila Bay and Clark corridor in Luzon. Emerging markets include Davao, Cagayan de Oro, Siquijor and Dumaguete.
How many new hotel rooms will open in the Philippines in 2026?
Leechiu Property Consultants expects 12,249 new hotel keys across 50 projects to open in 2026. Metro Manila leads supply, followed by Cebu, Palawan, Baguio, Boracay and Davao.
What is a Tourism Enterprise Zone (TEZ) in the Philippines?
A TEZ is an area designated by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) where registered tourism businesses can access fiscal and non-fiscal incentives. The five flagship TEZs are in Palawan, Bataan, Bohol, Corregidor Island and Rizal Park.
Can foreigners own land for a resort in the Philippines?
No. Land can only be owned by Filipino citizens or companies at least 60% Filipino-owned. Foreign investors usually lease land long term or use a compliant corporate structure, and can buy condo units directly within the 40% foreign cap per project.
Which hotel segment are developers building most?
Upper-midscale hotels are the most popular segment, because they cost less to develop and return capital faster. Luxury resorts are also growing, especially in Bohol, Palawan and Siargao.
What are the main risks for tourism investors in 2026?
Leechiu has warned that the delayed effects of the energy crisis could weigh on hotel performance in the second half of 2026. With more than 40,000 rooms in the pipeline, some markets also face oversupply risk.
How ILA Global Consulting can help
ILA Global Consulting advises foreign investors on market entry, company setup and property acquisition in Southeast Asia, with a dedicated office in the Philippines. Our team can help you choose the right structure for a hotel, resort or tourism property, review titles and leases, and register for available incentives.
Thinking about a tourism investment in Cebu, Bohol, Palawan or Siargao? Contact our Philippines team to discuss your project.
About the author: Florent Delente leads ILA Global Consulting, advising foreign investors on company setup and property acquisition in Indonesia and the Philippines.
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