Davao’s business community is upbeat about the city’s future after the World Travel Index (WTI) named it the Best City to Visit in the Philippines. They say the global recognition not only highlights Davao as a top travel destination but also boosts its reputation as a hub for investment and innovation.
Davao scored 75.48 to top the WTI list, edging out Makati (73.83) and Puerto Princesa (73.57). The index, which assessed nearly 3,000 global cities using data from over 100 trusted sources, ranked destinations based on affordability, attractions, infrastructure, safety, and visitor experience.
The win adds to Davao’s growing profile as a city that balances biodiversity, culture, and modern urban life. It has evolved beyond being just a tourist spot, emerging as a key trade and investment hub in the southern Philippines.
Tourist arrivals reflect this momentum: 897,406 in 2022, 1.296 million in 2023, and nearly 1.82 million in 2024, according to the City Tourism Operations Office.
Major events such as Kadayawan Festival, Araw ng Dabaw, and Pasko Fiesta continue to draw crowds eager for Davao’s mix of nature, heritage, and hospitality.
Stability fuels investor confidence
For the business sector, the WTI recognition signals more than prestige — it shows that Davao’s business climate is improving.
“Investments continue to generate interest among foreign and local investors because of the improved perception of peace and security in Mindanao,” said Tony Peralta, chairman of the European Chamber of Commerce of the Philippines–Southern Mindanao Business Council.
Peralta added that consistent messaging is key: “We need to closely coordinate the efforts of foreign chambers, the diplomatic community, and local stakeholders as part of a unified message that Davao and Mindanao are stable investment destinations,” he added.
The Board of Investments reported that Davao Region pulled in P70.5 billion worth of new investments in 2024, driven by agri-industrial projects, renewable energy, and infrastructure. Foreign companies from Japan, South Korea, and Europe are also exploring ventures in manufacturing, logistics, and IT.
Tourism’s ripple effect
Tourism’s growth is fueling other industries, from restaurants to retail.
“I hope this leads to an increase in tourist arrivals, especially since tourism was the single largest driver of economic activity in Davao back in 2019,” said Benjamin Lizada, president of the Restaurant Owners Association of Davao City, Inc. (RestoDC). “We still haven’t fully recovered to pre-pandemic levels, but this recognition could accelerate that recovery.”
The data backs him up: food and beverage revenues grew 19 percent in 2024, while retail sales rose 12 percent, according to the Department of Trade and Industry (DTI) Region 11. More flights, including the return of international routes and cruise tourism, further fueled spending.
MSMEs: vital but challenged
Despite the accolades, business leaders note that structural issues remain, particularly for micro, small, and medium enterprises (MSMEs), which make up 99.5 percent of registered businesses.
“Being the top city means affordable travel, solid safety, and world-class connectivity, all of which attract tourists, freelancers, and investors,” said Cherrylin Casuga, vice president for industry at the Davao City Chamber of Commerce and Industry Inc. (DCCCII).
But she pointed out the gaps: “Despite active mentoring programs and trade fairs like KMME Konek 2025, agri-food processors and micro-entrepreneurs face slow national permit approvals and delays in loan disbursements,” she said. “Local government services are fast, but national agencies must catch up for inclusive growth to be fully realized.”
MSMEs contributed P140 billion to the regional economy in 2024, underscoring their role in jobs and innovation. Access to financing, digital tools, and new markets remains a top priority.
Hotels bounce back with new offerings
The hospitality sector, one of the hardest hit by the pandemic, is rebounding strongly.
“This recognition reflects the hard work, resilience, and collaboration of our community,” said Liza Gamo, president of the Davao Hotels and Resorts Sales and Marketing Association (HRSMA). “Visitors feel safe and welcome here — that’s why they keep coming back.”
Hotels and resorts are diversifying with coffee and cacao heritage tours, diving and eco-adventures, and even golf retreats. Davao is also emerging as a preferred MICE (Meetings, Incentives, Conventions, Exhibitions) hub, with more venues hosting local and international events.
International connectivity has strengthened too, with direct flights from Singapore, Hong Kong, Qatar, and Thailand pushing foreign arrivals up 22 percent in the first half of 2025.
A city of warmth and collaboration
For many in the private sector, Davao’s win reflects not just infrastructure or attractions, but its people.
“This shows Davaoeños' warmth, our adventure offerings — from culinary experiences to world-class accommodations — and our trademark hospitality outshine other cities,” said Jeline Galagar, marketing manager of Eden Nature Park. “It’s the result of government and private sector synergy, positioning Davao not just as a destination, but as the go-to city in the Philippines.”
The challenge now, stakeholders agree, is how to sustain the gains. That means investing more in infrastructure, transport, digital connectivity, sustainability, and people. DEF