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SUMMARY
Yes, Airbnb is still worth it in the Philippines now, but only when the exact property has strong short-stay demand, legal permission, and a purchase price that leaves room after real operating costs.
The recovery looks healthier in occupancy than in pricing. All six major markets we checked are filling more nights, while nightly rates are down sharply almost everywhere except General Luna.
A big part of the recent revenue improvement comes from reduced competition. Active listings across the six markets appear to have fallen from roughly 67,000 to about 41,000, so the remaining hosts are sharing bookings with far fewer properties.
Domestic travel is the real backbone of the market. Philippine domestic tourism spending is several times larger than inbound spending, and Airbnb says most of its Philippine guests are Filipino travellers.
That makes drive-to markets such as Baguio and Tagaytay more durable than foreign-arrival headlines alone would suggest, although demand does not automatically translate into a good investment return.
Manila and Cebu show the main problem clearly: Airbnb can produce more gross revenue than a normal lease, but the premium is often thin once utilities, cleaning, management, furnishing wear and taxes are included.
Metro Manila's condo oversupply can actually help an Airbnb buyer, but only through a lower acquisition price. High vacancy and unsold inventory are not an advantage if the investor still pays the developer's full asking price.
General Luna currently has the cleanest short-term-rental story in the comparison because occupancy is high and nightly pricing has held up. Boracay also produces strong revenue, but its recent rate compression makes the case a bit less comfortable.
Building rules are a real underwriting issue. A condo can sit in a strong Airbnb neighbourhood and still be a bad purchase if the declaration of restrictions, house rules or management policies block transient stays.
The properties we would favour are differentiated rather than generic: a proven condo in a strong micro-location, a deeply discounted ready-for-occupancy unit, or a leisure property with views, group capacity, privacy or some other clear reason to book it.
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Is Airbnb in the Philippines actually doing well right now?
Airbnb in the Philippines is doing better today, but the recovery is much more about fuller calendars than stronger pricing.
The latest AirDNA data show higher occupancy across all six major markets we checked: Manila, Cebu City, General Luna in Siargao, Malay/Boracay, Baguio and Tagaytay. Manila is averaging 51% occupancy, Cebu 57% and General Luna 62%.
Nightly rates tell a less exciting story. Average daily rates are down around 10% in Manila, 13% in Cebu, 20% in Baguio, 16% in Tagaytay and 12% in Malay. General Luna is the clear exception, with rates roughly flat.
There is another important piece. Active short-term rental supply has fallen sharply. Across those six markets, our reconstruction from AirDNA's year-on-year changes puts active listings at roughly 41,000 today versus about 67,000 a year earlier, a drop of close to 38%.
That helps explain why revenue per remaining listing has jumped so quickly. Hosts are filling more nights, but they are also competing against far fewer active properties.
So yes, Philippine Airbnb performance looks healthier now. We just would not read the improvement as proof that demand, pricing power and investment returns are all booming at the same time.
| Market | Occupancy | Average daily rate | RevPAR | ADR change YoY | Active listings YoY |
|---|---|---|---|---|---|
| General Luna, Siargao | 62% | $65 | $41 | +0.9% | -34.5% |
| Cebu City | 57% | $34 | $19 | -12.5% | -40.8% |
| Malay / Boracay | 52% | $78 | $41 | -12.3% | -58.7% |
| Manila | 51% | $38 | $20 | -10.1% | -35.5% |
| Baguio | 43% | $56 | $24 | -20.2% | -43.9% |
| Tagaytay | 34% | $61 | $21 | -15.6% | -45.7% |
Is Philippine tourism strong enough to keep Airbnbs busy?
Yes, Philippine tourism is strong enough to support a large Airbnb market, and domestic travellers are doing much more of the heavy lifting than many foreign investors realize.
The Philippine Statistics Authority estimates domestic tourism spending at PHP3.26 trillion in 2025, up 3% from the previous year. Inbound tourism spending was only PHP698 billion and actually fell 6.4%.
Domestic tourism spending was therefore about 4.7 times larger than spending by foreign visitors.
That changes how we should read the Philippine Airbnb market. Foreign tourism still matters, especially in places such as Boracay and Siargao, but the underlying demand base is much broader.
Airbnb's own Philippine economic-impact research found that 78% of its guests in 2024 were domestic travellers. Almost one-third of accommodation spending through the platform also took place outside major cities.
This helps explain why Baguio, Tagaytay and other drive-to destinations can support thousands of listings without depending heavily on overseas tourists. Filipino weekend trips, family gatherings, weddings, work trips and holidays create a large pool of short-stay demand throughout the country.
The demand base is real. The harder question is whether a property bought at today's price can turn that demand into a good return.
| Tourism measure | Latest useful figure | What we learn |
|---|---|---|
| Domestic tourism spending | PHP3.26tn | The domestic market is enormous |
| Inbound tourism spending | PHP698bn | Foreign spending is much smaller |
| Domestic spending growth | +3.0% | Local travel remains resilient |
| Inbound spending growth | -6.4% | Foreign-tourism spending has not fully recovered |
| Airbnb guests who were domestic | 78% | Airbnb relies heavily on Filipino travellers |
| Airbnb accommodation spending outside major cities | ~31% | Demand reaches well beyond Manila |
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Is buying a Manila condo for Airbnb a good idea now?
A Manila Airbnb can work today, but buying an average new condo at an average developer price still looks like a weak bet.
AirDNA currently puts Manila occupancy at 51%, with average annual short-term rental revenue around $6,800. RevPAR is up more than 20% year on year, so the operating environment has clearly improved.
The property market underneath those listings remains much softer.
Colliers expects Metro Manila condominium vacancy to reach a record 25.6% in 2026. Nearly 13,000 additional units are expected to complete during the year, almost twice the previous year's deliveries.
The Bay Area is in a different league altogether: Colliers expects vacancy there to approach 60%.
Leechiu Property Consultants has also reported record levels of unsold condominium inventory. Developers have been responding with promotions, longer payment schedules and discounts because they still need to move stock.
For an Airbnb buyer, that creates an unusual setup. Guests are booking more nights while the asset being purchased remains stuck in an oversupplied condo market.
We would therefore be much more interested in a deeply discounted ready-for-occupancy unit than in a newly launched preselling studio sold with an optimistic rental projection.
The Manila Airbnb opportunity these days comes from buying well, not simply from putting another condo on Airbnb.
Does Airbnb make more money than long-term renting in Manila?
Airbnb currently brings in more gross revenue than a normal Manila lease on average, but the extra money is small enough that operating costs can wipe out much of the advantage.
Global Property Guide's recent asking-price data put a typical studio or one-bedroom unit in Manila City around $84,000, with monthly rent around $420.
That works out to approximately $5,040 of annual long-term rent, or a gross yield of about 6%.
AirDNA's Manila average is roughly $6,800 in annual short-term rental revenue. Against the same $84,000 purchase price, that would represent gross revenue equal to about 8.1% of the property value.
The difference is roughly $1,760 a year before we pay for extra electricity, water, internet, cleaning coordination, linens, supplies, furniture wear, guest problems and management.
That is the part people often skip.
An owner managing the unit personally may keep enough of the premium to make Airbnb worthwhile. An overseas investor paying a professional manager has much less room.
The Manila numbers currently support Airbnb as an operating strategy. They do not show an obvious financial slam dunk over a normal tenant.
| Manila studio / 1BR illustration | Long-term lease | Airbnb |
|---|---|---|
| Approx. purchase price | $84,000 | $84,000 |
| Annual gross revenue | ~$5,040 | ~$6,800 |
| Gross revenue / purchase price | ~6.0% | ~8.1% |
| Utilities normally carried by owner | Lower | Higher |
| Cleaning / turnover | Very limited | Frequent |
| Owner workload | Low | High |
| Revenue predictability | Higher | Lower |
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Is Cebu Airbnb still worth it?
Cebu Airbnb is attractive operationally right now, but an average-priced condo does not leave enough extra return to make short stays obviously better than a normal lease.
Cebu City is running at about 57% occupancy according to the latest AirDNA data. That is one of the highest urban occupancy rates we found in the Philippines.
Demand is also fairly steady through the year, which is useful for a host who does not want revenue concentrated in a short peak season.
The problem is price.
Cebu's average nightly rate is only about $34, producing roughly $6,700 in annual revenue per active listing.
Global Property Guide recently put the median asking price for Cebu studios and one-bedroom apartments around $122,600, with typical monthly rent near $500.
At those numbers, Airbnb revenue equals only about 5.5% of the purchase price. Long-term rent comes to roughly 4.9%.
A difference of 0.6 percentage point is pretty thin compensation for running a short-term rental.
Cebu becomes far more interesting when we buy below the citywide median or when the unit has a clear location advantage around IT Park, Ayala, major hospitals or other high-traffic areas.
At an average acquisition price, though, we would rather have a strong conventional tenant than chase Airbnb bookings for such a small gross premium.
Is Siargao one of the best Airbnb markets in the Philippines now?
Yes, General Luna in Siargao currently has some of the strongest Airbnb numbers in the Philippines, and its pricing has held up better than the other major markets we checked.
General Luna is averaging around 62% occupancy, a $65 nightly rate and $41 RevPAR according to AirDNA.
The average active short-term rental earns roughly $13,900 a year. That is more than double the average revenue in Manila or Cebu.
What really stands out is the nightly rate. While rates are falling sharply across most of the Philippine markets in our comparison, General Luna's average rate is roughly unchanged from a year ago.
Occupancy is also up around 13%.
That combination is healthier than getting more bookings only after cutting prices aggressively. General Luna is filling more nights without giving away much of its rate.
There are trade-offs outside the Airbnb numbers. Resort property involves more execution risk around road access, utilities, flooding, maintenance and construction. Foreign investors also have to work within Philippine land-ownership restrictions, which makes the legal structure more complicated than buying a condominium unit.
Still, if we are asking where Philippine short-term rental demand currently has real pricing power, Siargao belongs near the top of the list.
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Is Boracay still a strong Airbnb market?
Boracay remains one of the Philippines' strongest short-term rental markets, although the current numbers make more sense for serious hospitality operators than casual condo investors.
AirDNA's Malay market, which covers Boracay, shows about 52% occupancy, a $78 average nightly rate and $41 RevPAR.
Average annual revenue is roughly $13,900 per active property, matching General Luna and roughly twice Manila or Cebu.
Boracay gets there differently from Siargao.
Average nightly rates around Malay are currently down about 12% from a year earlier. Occupancy, meanwhile, has risen by more than a third.
So guests are coming, but they are paying less per night on average.
Boracay also has more layers of property-specific regulation and operating requirements than a normal Metro Manila condo. Before buying, we would want written confirmation that the exact property can legally operate the intended type of transient accommodation, along with a realistic comp set from nearby units.
The destination itself can support high revenue. The address still decides whether the investment works.
| Market | Occupancy | ADR | RevPAR | Annual revenue |
|---|---|---|---|---|
| General Luna | 62% | $65 | $41 | $13,900 |
| Malay / Boracay | 52% | $78 | $41 | $13,900 |
| Baguio | 43% | $56 | $24 | $8,200 |
| Tagaytay | 34% | $61 | $21 | $7,100 |
| Manila | 51% | $38 | $20 | $6,800 |
| Cebu City | 57% | $34 | $19 | $6,700 |
Are Baguio and Tagaytay still good Airbnb markets?
Baguio can still work for the right property, while Tagaytay currently looks much harder unless the unit has something genuinely special.
AirDNA puts Baguio occupancy around 43%, with average annual revenue near $8,200. Tagaytay is at only 34% occupancy and roughly $7,100 of annual revenue.
Thirty-four percent occupancy translates into about 124 booked nights across a full year of availability. That leaves roughly two-thirds of available nights unbooked.
The higher nightly rates partly compensate. Baguio averages around $56 and Tagaytay around $61.
But both markets have had to reduce prices noticeably over the past year.
There is also heavy concentration in small properties. In Tagaytay, roughly 69% of active listings are one-bedroom units according to AirDNA. A buyer putting another standard studio or one-bedroom condo into that pool has very little to distinguish the listing beyond view, location, reviews and price.
Larger family houses, private pools, unusual views and group accommodation play a different game. Those properties can sit well above the citywide average.
For generic condos, though, we would currently rank Baguio behind Siargao and Boracay, and Tagaytay lower again.
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Can a condo building in the Philippines ban Airbnb?
Yes, a Philippine condo building can restrict short-term rentals, so Airbnb permission needs to be checked before buying rather than after furnishing the unit.
Philippine condominium ownership comes with a registered declaration of restrictions and rules enforced by the condominium corporation or management body.
The Supreme Court made the importance of those restrictions clear in BNL Management Corporation v. Uy. The ruling confirmed that condominium owners are bound by valid registered restrictions and properly adopted building rules.
In practice, the rules vary widely.
Some buildings are comfortable with short stays. Others impose minimum lease periods, control guest registration or prohibit transient use entirely.
This creates a risk that does not show up in an Airbnb revenue calculator. A perfectly located condo can become useless for short stays if the building rules do not allow the intended operation.
Airbnb itself tells Philippine hosts to check contracts, building regulations, community rules, permits and local requirements before listing.
We would ask for the master deed, declaration of restrictions, current house rules and written confirmation from management. A broker saying "Airbnb is allowed" would not be enough for us.
How much do taxes and Airbnb fees hurt the return in the Philippines?
Philippine Airbnb taxes and fees can turn a decent-looking gross yield into a fairly ordinary net return, especially on lower-revenue city condos.
Airbnb income in the Philippines is taxable and may fall under income tax plus VAT or percentage tax depending on the host's circumstances.
Local obligations can also apply. Airbnb's Philippines tax guidance says hosts may need an annual business permit from their local government unit, along with local business tax and regulatory charges. Real property tax remains separate.
There is also a newer platform-level cost. Airbnb service fees for Philippine customers are now subject to 12% VAT under the country's digital-services tax regime.
Add the practical operating expenses and the gap between revenue and profit gets wider.
A city host still has electricity, water, Wi-Fi, association dues, cleaning, laundry, supplies, maintenance and furniture replacement. Someone managing from abroad will probably add a property-management fee as well.
This is why a Manila unit producing $6,800 a year should never be underwritten as though $6,800 were rental income going straight into the owner's pocket.
| Cost or obligation | Airbnb owner | Typical long-term landlord |
|---|---|---|
| Income tax | Yes | Yes |
| VAT / percentage tax where applicable | Possible | Possible |
| Local business permit / tax | Possible | Depends on setup |
| Real property tax | Yes | Yes |
| VAT on Airbnb service fees | Yes | Not an Airbnb cost |
| Electricity / water during stays | Usually owner | Often tenant |
| Cleaning and laundry | Frequent | Minimal |
| Guest management | Continuous | Limited |
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Does a mortgage make a Philippine Airbnb investment much harder now?
Yes, borrowing can ruin an average Philippine Airbnb deal because financing costs leave very little margin for a property producing only mid-single-digit gross yields.
The math is pretty simple.
Residential rental yields in Metro Manila and Cebu commonly sit around the mid-single digits before expenses. Airbnb can push gross revenue higher on the better properties, but citywide averages are still not spectacular relative to purchase prices.
Once the investor adds mortgage interest, association dues, taxes and operating costs, the property needs to outperform the market just to produce attractive cash flow.
That changes what counts as a good deal.
A cash buyer who negotiates a heavily discounted ready-for-occupancy unit can wait through weaker years and has more flexibility over pricing.
A highly leveraged buyer needs consistently high occupancy and strong nightly rates, because the bank payment arrives whether guests do or not.
For a financed Airbnb today, we would want a much larger gap between conservative net income and debt service than the usual developer rental projection shows.
Could Manila's condo oversupply actually make Airbnb more attractive?
Yes, Metro Manila's condo glut can create good Airbnb purchases, but only when the oversupply shows up in the price we actually pay.
Colliers still describes Metro Manila as a market with elevated vacancy, large unsold inventory and delayed project launches.
At the same time, preselling take-up has improved sharply in the more affordable end of the market as developers use flexible payment terms and promotions to move units.
That combination gives buyers leverage.
We would look for ready-for-occupancy inventory, motivated resellers, developer discounts and buildings where actual Airbnb performance can already be checked. Those are much easier to underwrite than a preselling unit that will not be delivered for several years.
This is one of the few areas where the current weakness in Philippine residential property can help an Airbnb investor.
The advantage disappears if the buyer pays the full marketing price.
A soft condo market only becomes an opportunity once it produces a genuinely better entry price.
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What kind of Airbnb property still works best in the Philippines?
The Philippine Airbnbs that work best now usually have a clear reason for guests to choose them instead of another nearly identical listing.
In Manila and Cebu, location still does most of the work. Units near business districts, hospitals, airports, convention venues, universities and major entertainment areas can draw several types of guests rather than relying on one travel segment.
In resort destinations, the property itself matters more. Sea views, private pools, direct beach access, group capacity, unusual design and privacy can support much higher rates than a standard room or studio.
Generic one-bedroom condos face the hardest competition.
Almost 79% of Manila's active short-term rentals are one-bedroom units according to AirDNA. Cebu is similarly dominated by one-bedroom stock. In Tagaytay, one-bedroom units make up close to 69% of active listings.
When most hosts sell almost the same product, guests can choose mainly on price, location and reviews.
We would rather own one property with an obvious reason to book it than three interchangeable units competing with hundreds of neighbours.
Where would we actually buy an Airbnb in the Philippines now?
We would currently put General Luna and selected Boracay properties at the top for raw short-term rental performance, while Manila and Cebu make more sense when the purchase price is unusually good.
General Luna has the strongest mix of occupancy and stable pricing in our comparison. Its 62% occupancy and $41 RevPAR are difficult to ignore, especially when its average nightly rate has held roughly flat.
Boracay produces the same $41 RevPAR with a higher $78 nightly rate, although recent rate compression makes us a little more cautious.
Cebu looks good from an occupancy perspective but weaker once property prices enter the calculation. We would need a below-market purchase or a very strong micro-location.
Manila offers the broadest demand base and currently gives buyers more negotiating power because of the condo oversupply. That makes selected existing units interesting, particularly when the building already has a proven short-term rental track record.
Baguio can work with differentiated family accommodation. Tagaytay would need a much stronger property-level reason for us to buy today.
| Market | Our view now | What makes it interesting | What would stop us |
|---|---|---|---|
| General Luna | Strong | High occupancy and resilient pricing | Land / execution complexity |
| Malay / Boracay | Strong but selective | High ADR and RevPAR | Falling rates and property-specific rules |
| Manila | Selective | Broad demand and buyer negotiating power | Condo oversupply |
| Cebu City | Selective | High, steady occupancy | Weak yield premium at average purchase prices |
| Baguio | Property-specific | Good nightly rates | Moderate occupancy |
| Tagaytay | Highly selective | Large domestic weekend market | Low average occupancy |
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So is Airbnb still worth it in the Philippines now?
Yes, Airbnb is still worth it in the Philippines today, but we would only buy when the property works as a real hospitality business and the purchase price leaves enough room for mistakes.
The demand argument is convincing. Philippine domestic tourism spending exceeds PHP3 trillion, Filipino travellers make up most Airbnb guests, and several major short-term rental markets are filling far more nights than they were a year ago.
What stops us from giving Airbnb a broader recommendation is the return on the actual property.
Manila and Cebu average only about $6,800 and $6,700 of annual short-term rental revenue respectively. Metro Manila still has very high condominium vacancy. Airbnb hosts have taxes, utilities, cleaning and management costs that ordinary gross-yield calculations often ignore. Building rules can also shut down short-term rentals even when the surrounding neighbourhood performs well.
At the same time, Siargao and Boracay show that good Philippine Airbnb markets still exist. Both currently produce about $41 RevPAR and roughly $13,900 in average annual revenue per active listing.
The winners today are increasingly specific properties rather than entire cities.
We would buy when four things line up: a strong micro-location, written permission for short stays, a conservative net return that still works after operating costs, and a purchase price low enough that a normal long-term rental remains a credible fallback.
A generic condo bought from a glossy developer brochure would not tempt us.
A discounted unit in a proven building, or a genuinely differentiated property in one of the country's stronger leisure markets, still can.
OUR METHODOLOGY
This analysis tests whether Airbnb is still worth it in the Philippines now by separating short-term-rental operating performance from the economics of actually buying and owning the property. We compare occupancy, average daily rate, RevPAR, annual listing revenue and active supply with tourism demand, property prices, long-term rents, residential vacancy, ownership constraints, building rules, taxes and operating costs.
For short-term-rental performance, we used AirDNA market data for Manila, Cebu City, General Luna, Malay/Boracay, Baguio and Tagaytay. We looked at the level and direction of occupancy, ADR, RevPAR, annual revenue and active listings rather than ranking markets from one headline number.
For tourism demand, we used the Philippine Statistics Authority's latest domestic and inbound tourism expenditure data and Airbnb's Philippine economic-impact research. The distinction between domestic and foreign demand is important here because Filipino travellers account for most Airbnb guests and support markets well beyond the country's main international gateways.
For Metro Manila residential conditions, we used Colliers' recent residential-market reports to assess condominium vacancy, new completions, unsold inventory, preselling activity and the Bay Area's unusually high oversupply. Those figures are used to judge whether a weak condo market is creating a genuinely better entry price for buyers rather than simply more available stock.
We kept citywide Airbnb performance and property-level investment returns separate. A market can have solid occupancy and still be a poor buy if acquisition prices are too high, while an oversupplied residential market can become interesting if discounts are deep enough. Long-term rent is therefore treated as a fallback and comparison point rather than as a separate topic.
For legal and building-level risk, we relied on the Philippine Condominium Act, the Supreme Court's decision in BNL Management Corporation v. Uy, Airbnb's Philippines hosting guidance, and the Board of Investments' 2026 investment framework. These sources are used to check the importance of registered condominium restrictions, building rules, foreign land-ownership limits and local operating requirements.
For taxes and local obligations, we used the Bureau of Internal Revenue's Revenue Regulations No. 3-2025 on digital services, Airbnb's Philippine tax guidance, and the Local Government Code. We treat tax treatment as owner-specific because income tax, VAT or percentage tax, local business permits and local charges depend on the host's structure and circumstances.
Key sources used for this analysis include: AirDNA on Manila, AirDNA on Cebu City, AirDNA on General Luna, AirDNA on Malay/Boracay, AirDNA on Baguio, AirDNA on Tagaytay, the Philippine Statistics Authority on 2025 tourism spending, Airbnb's Philippine economic-impact research, Colliers Q1 2026 Residential, Colliers Q2 2026 Residential, Colliers Q4 2025 Residential, BNL Management Corporation v. Uy, Republic Act No. 4726, Airbnb's Philippines hosting guidance, BIR Revenue Regulations No. 3-2025, the Board of Investments' Doing Business in the Philippines 2026, and the Local Government Code.
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