New NAIA Infrastructure Corp. (NNIC), the private operator of Ninoy Aquino International Airport (NAIA), has secured approval to demolish the Philippine Village Hotel to make way for the construction of Terminal 5.

During a briefing on Thursday, NNIC general manager Angelito Alvarez said demolition work would begin on 21 April, immediately following Holy Week. 

The new terminal, which could take up to three years to construct, is expected to accommodate 22 million additional domestic passengers annually to help alleviate congestion at the country’s busiest airport.

“By April 21, we will demolish the Philippine Village Hotel, right after Holy Week. We will build a new terminal, Terminal 5. It will probably be completed in two to three years,” Alvarez said.

Prominent landmark near NAIA

Once a prominent landmark near the airport, the Philippine Village Hotel, designed by National Artist Juan Nakpil and built-in 1974 by the Enriquez-Panlilio family, has been closed for several years and is now considered a prime site for redevelopment.

While the Manila International Airport Authority owns the land, the Nayong Pilipino Foundation recently asserted a claim over it. 

The hotel building is part of assets that have been foreclosed by the Government Service Insurance System.

Originally designed to accommodate 32 to 34 million passengers annually, NAIA has been experiencing much higher volumes in recent years due to the surge in air travel.

Capacity surpassed

In 2024, Alvarez noted that the airport handled around 51 million passengers, significantly surpassing its capacity. This year, the target is even higher, with an expected 54 million passengers.

The increase in traffic has strained the airport’s infrastructure, creating an urgent need for expansion. While the Terminal 4 upgrade was initially on the table, Alvarez said the plan has been scrapped in favor of building a new facility on the site of the former international cargo terminal.

The new plan involves relocating cargo and bonded warehouse operators to temporary facilities within the next three months. 

Major hazard

“At the old Terminal 4, we will no longer pursue it because we saw that it is a major hazard, it’s an obstacle. Instead, we will build the replacement for Terminal 4 at the site of the former international cargo terminal,” Alvarez explained, citing the safety risks of expanding the outdated terminal. 

“So, in the next three months, with the cooperation of government agencies and the cargo and bonded warehouse operators, we will move them to a temporary facility and convert that into the new terminal,” he said.