Hospitality turns to domestic MICE as foreign travel slows - BusinessWorld Online

SMX CONVENTION CENTER — SMXCONVENTIONCENTER.COM THE HOSPITALITY sector is increasingly relying on domestic meetings, incentives, conventions, and exhibitions (MICE) demand as geopolitical tensions and the global energy crisis continue to weigh on international travel, according to an analyst.Quirino Teo, executive director for investment services at Savills Philippines, said international MICE demand, particularly large-scale global conferences, incentive travel groups from North Asia, and multinational product launches, remains under pressure.

“What’s compensating, and this is the more interesting story, is domestic MICE,” he said in a Viber message on Friday.He identified Philippine corporations, government agencies, and the information technology and business process management (IT-BPM) sector as the main drivers of domestic MICE demand, with the IT-BPM industry accounting for about 58% of MICE space utilization for town halls, offsite leadership meetings, client events, and compliance training.

The healthcare and financial technology sectors are also emerging as steady sources of demand, he added. Visitor arrivals reached 6.48 million in 2025, according to Bureau of Immigration data, while the Department of Tourism (DoT) is targeting 6.7 million arrivals this year.Arrivals in the 11 months to November 2025 fell 2.16% year on year to 5.24 million, weighed by weaker inflows from South Korea and China.

This compares with significantly higher volumes in neighboring markets such as Malaysia (38.2 million), Thailand (32.9 million), and Vietnam (21.1 million).On the supply side, hotels in Makati’s central business district and the Bay Area continue to lead the market, with around 21,000 hotel room keys in operation, based on Savills data.

The firm also noted that hotels in Bonifacio Global City (BGC), Taguig, are posting the highest occupancy rates.Asked about corporate preferences for township-integrated ho...