The Overlap Between Tourism and Livability
When Esquire Philippines reported that Davao City topped the World Travel Index (WTI) 2025, it sparked a big question:
👉 If a city ranks high for tourism, does that also mean it’s a great place to live or invest in?
The results are telling. Six of the Top 10 WTI cities are outside Luzon—Cebu, Dumaguete, Puerto Princesa, and Iloilo among them. This signals a major decentralization of growth and shows that Visayas and Mindanao are stepping into the national spotlight not just as travel destinations but also as promising hubs for settlement and investment.
What the World Travel Index (WTI) Actually Measures
The World Travel Index looks at over 1,000 data points to rate global and local cities. While the indicators are tourism-focused, they often overlap with what residents and investors value.
Affordability: Hotels, Dining, Transport, and Living Costs
WTI measures affordability for tourists, but lower costs in dining, hotels, and transport also translate into more affordable living standards for residents.
Safety and Security as a Dual Benchmark
Tourists seek safe destinations, and residents seek safe neighborhoods. Cities ranking high in safety often double as livable spaces.
Accessibility and Infrastructure
Airports, roads, and transport networks help both visitors and daily commuters. Infrastructure is a backbone of livability and real estate growth.
Attractions, Culture, and Quality of Life
A vibrant cultural scene draws both tourists and future settlers—offering recreational value, social vibrancy, and community-building.
Top 10 Cities to Visit in the Philippines (WTI 2025)
According to the World Travel Index (WTI) as published via Esquire Philippines, here are the top-ranked cities in the country for 2025:
- Davao City - 75.48%
- Makati City - 73.83%
- Puerto Princesa - 73.57%
- Dumaguete City - 73.23%
- Baguio City - 72.75%
- Cebu City - 72.55%
- Iloilo City - 70.39%
- Manila - 68.43%
- Legazpi City - 68.31%
- Lapu-Lapu City - 68.09%
Why Davao City Ranked #1 in WTI 2025
With a 75.48% rating, Davao emerged as the top Philippine city for tourism in 2025. Its winning edge lies in factors that resonate with both travelers and locals.
Safety Reputation and Peace of Mind
Davao has long been known as one of the safest large cities in the Philippines—an appealing factor for families, expats, and retirees.
Cost of Living and Housing Affordability
Compared to Metro Manila, housing, utilities, and food are significantly more affordable, making Davao attractive to future homeowners.
Green Lifestyle and Balanced Growth
Known for Mount Apo, clean streets, and eco-friendly policies, Davao blends urban growth with nature preservation.
Connectivity and Accessibility
The Francisco Bangoy International Airport connects Davao to both domestic and international destinations, enhancing tourism and trade.
WTI’s Blind Spots for Residents and Investors
While WTI rankings are valuable, they don’t tell the whole story of livability. Important long-term settlement factors often get overlooked.
Healthcare Quality and Access
Tourists don’t stay long enough to require robust healthcare, but residents and retirees depend on it.
Education Systems and Opportunities
Families value universities, schools, and training centers, which WTI doesn’t measure.
Job Creation and Business Ecosystems
Investors look at whether a city has a strong labor market and entrepreneurial ecosystem—not just tourism growth.
Housing Affordability Beyond Tourism Demand
Tourism can sometimes push property prices up, leaving locals struggling to afford housing.
Sustainability and Disaster Resilience
WTI doesn’t always consider whether a city can withstand climate risks, flooding, or earthquakes, which are critical in the Philippines.
How Tourism Rankings Signal Real Estate Opportunities
Tourism rankings often reveal emerging property hotspots.
Short-Term Rental Markets (Airbnb, Resorts, Serviced Apartments)
Puerto Princesa, Dumaguete, and Lapu-Lapu are prime for short-term rentals due to tourism-driven demand.
Infrastructure-Driven Growth in Regional Hubs
Mega-projects like the Cebu–Cordova Link Expressway and Davao’s IT/business parks signal long-term real estate appreciation.
Lifestyle Appeal for Families and Retirees
Cities like Iloilo and Baguio combine cultural vibrancy with education hubs, making them ideal for settlement.
Moving Beyond Metro Manila: Regional Shifts in Value
Manila only ranked 8th in WTI—proof that investment and livability opportunities are spreading across the Philippines.
Why This Matters for Filipino Homeowners and Investors
Livability as a Real Estate Compass
WTI highlights cities where safety, affordability, and vibrancy align—useful markers for settlement choices.
Tourism Spillover and Property Appreciation
Tourism draws foreign visitors and domestic migrants, fueling property demand and long-term returns.
Decentralization of Growth in Visayas and Mindanao
The rise of regional hubs shows Filipinos that wealth-building opportunities extend far beyond Metro Manila.
FAQs on Tourism Rankings and Livability
Q1: Does a high WTI ranking guarantee a city is livable?
Not necessarily. While WTI covers safety, affordability, and accessibility, it doesn’t fully reflect healthcare, education, or job markets.
Q2: Why is Davao City considered highly livable?
Because it balances affordability, safety, accessibility, and green living—all critical for residents and investors.
Q3: Are WTI rankings useful for real estate investors?
Yes. High rankings signal tourism-driven demand, which often leads to property growth and short-term rental opportunities.
Q4: Why do many WTI top cities come from Visayas and Mindanao?
Because these regions are emerging as regional growth centers with competitive affordability and cultural vibrancy.
Q5: How do WTI rankings differ from livability indices like Mercer’s or EIU’s?
WTI is tourism-centric, while livability indices measure resident-focused factorslike healthcare, education, and sustainability.
Q6: Should investors look beyond Manila for property opportunities?
Absolutely. The rise of Cebu, Davao, Iloilo, and Palawan shows that regional cities now rival Metro Manila in growth potential.
From Tourist-Friendly to Investor-Friendly Cities
The World Travel Index 2025 is not the final word on livability, but it’s a strong indicator of cities with rising value.
• Tourism-friendly cities often double as investment-friendly hubs.
• Davao City’s win underscores Mindanao’s untapped potential.
• The dominance of Visayas and Mindanao in the rankings reflects a historic decentralization of growth.
For Filipinos seeking a place to live or invest, WTI rankings are a compass worth following—not as the final destination, but as the first step in exploring a city’s full potential.
Image Credit: Outsource Accelerator
