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The Philippine hotel sector maintained an 81.8% occupancy rate in Q1 2026 with average room rates declining marginally to PHP 8,034 per night, while foreign tourist arrivals reached 1.8 million in the quarter, up nearly 9% year-on-year. Rising jet fuel costs and airline route suspensions pose headwinds, but the sector's fundamentals remain supported by sustained corporate demand, resilient luxury segment performance at 86% occupancy, and government efforts to boost domestic tourism and target international markets including China, Korea, and India.
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