Even though economic and geopolitical headwinds have slowed Philippine tourism, tailwinds of opportunities abound within the destination in the coming times.
Last year’s tourist arrivals of 5.95 million – of which 8.58 per cent are balikbayans or Filipinos permanently residing overseas – is 9.15 per cent more than 2023. It is, however, 23 per cent shy of the 7.7 million targeted in 2024 and 28 per cent short of the pre-pandemic (2019) 8.26 million arrivals.
Shortage of tourists from China, aggravated by tourism budgetary constraints and visa liberalisation delays, have caused the fall.
Analysts foresee full tourism recovery in 2026.
In this light, Philippine Travel Agencies Association (PTAA) executive vice president, Jaison Yang, has suggested a revisit of tourism policies and strategies.
“We need to review current policies, re-strategise and work together (both government and private sectors) to make our targets and prospects objective, realistic and achievable,” Yang explained.
What the country lacks in tourist numbers is made up for by other “more important” indicators spelt out by tourism secretary Christina Garcia Frasco: longer tourist stays at 11 nights, up from nine nights in 2019; high per capita tourist spend of US$2,073; repeat visitors at nearly 70 per cent of total arrivals; and 41 per cent surge in tourism receipts of 760 billion pesos (US$13.1 billion) last year from 539.4 billion pesos pre-pandemic.
While “arrivals is just one of the metrics,” Rajah Travel chair and president Aileen Clemente posited that the more important aspect is “how we can maximise the tourist receipts we can derive from the arrivals”.
Fortunately, more investments are pouring into infrastructure projects, making the Philippines more accessible with new commercial flights from abroad to regional provinces, Clemente said.
In Colliers’ 2025 Philippine Property Market Outlook Report, research director Joey Bondoc highlighted the impact of at least six new and modernisation airport projects in attracting tourism investors.
“Now is an opportune time” and “developers should identify growth opportunities,” Bondoc said, which is already happening with an investment surge in accommodation, business events facilities, and tourist attractions especially in emerging tourist destinations.
Another tailwind is the broadening of tourism products outside of the usual sand and sea offerings to include halal, farm, gastronomy, health and wellness and eco-tourism, among others.
This diversification is creating new source markets and adding to the country’s destination appeal, said Jennifer Sanvictores, global head of sales and marketing, The Farm at San Benito.
Sanvictores cited the Department of Tourism’s recent positioning of the Philippines as a leading international destination for wellness as the sector evolves beyond spa relaxation into mainstream offering scientific and evidence-based and holistic wellness.
Marketing these new offerings and new destinations can also harness tailwinds of opportunities. As Clemente said: “We need to push our promotions, both traditional and new, to be more aggressive in certain countries on a consistent and sustained basis. More importantly, we need to have effective curation of our tourism sites (and offerings).”
