The Civil Aviation Authority of the Philippines (CAAP) allotted PHP 12.4 billion (~USD 212 million) towards airport modernization projects in 2025 to boost the country’s tourism and trade. This comes after President Marcos in his third State of the Nation Address, said that the government aims to complete 350 airport and seaport projects by 2028. Such initiative is part of government’s larger efforts to support travel across the archipelago, resulting from heightened air travel demand. Under the 2025 General Appropriations Act, approximately PHP 7.7 billion (~ USD 132 million) were allocated to upgrade 15 airports across the country. Furthermore, in a bid to improve airport efficiency and increase passenger capacity, the Department of Transportation (DOTr) is eyeing privatizing more local airports, following the privatization of the Ninoy Aquino International Airport (NAIA).
The local tourism sector retains its bullish outlook, with analysts expecting as much as 8.3 million international arrivals in 2025 and 9.4 M by 2028. Meanwhile, the Banko Central ng Pilipinas (Central Bank of the Philippines) accounted for travel receipts to remain resilient with a year-on-year growth rate of 20% in 2025. A stronger aviation sector intends to drive broader connectivity across neighboring countries, with the Philippines acting as a key tourism hub in the region. Considering the recently concluded Meeting of ASEAN Tourism Ministers (M-ATM), which highlighted the region’s commitment to building a more sustainable and resilient ASEAN tourism, investors can expect more government initiatives to support ASEAN’s tourism sector. For example, in mid-January the Philippines and Thailand forged a new 5-year cooperation deal to facilitate collaboration in key areas including tourism cooperation. Furthermore, the 2025 ASEAN Tourism Forum (ATF) saw record-breaking sales lead for tourism in the Philippines, signaling strong interest in the Philippines as a tourism hub. The Philippines is slated to chair the ATF in 2026, committingto work closely with its ASEAN neighbors in building a sustainable tourism industry.
