The Philippines is increasingly turning to its domestic tourism market to sustain growth amid a continued drop in foreign arrivals, particularly from key markets such as South Korea, China, and Taiwan.
Data from the Philippines Department of Tourism (DoT) showed that foreign arrivals between January and September fell by 2.37 per cent to 4.33 million, with all three markets posting double-digit declines.
In contrast, domestic tourism remains robust, with Leechiu Property Consultants projecting 58.7 million local trips this year as Filipinos increasingly choose to travel within the country and explore lesser-known destinations.
The strength of domestic travel was reflected in last month’s Philippine Travel Mart, where new destinations from Luzon, Visayas and Mindanao participated, many for the first time, to cater to growing demand, said Philippine Tour Operators Association president Arjun Shroff.
Hotel Sales and Marketing Association president Loleth So added that the association’s month-long September Online Sale (SOS) has generated 122.5 million pesos (US$2.2 million) in revenue over the past five years to 2024.
Started during the pandemic, SOS has become a platform that “has witnessed the survival, revival and growth of tourism, thanks in large measure to domestic travellers”, she said.
Colliers Philippines research director Joey Roi Bondoc observed: “The domestic market will likely help fill the void left by the plummeting South Korean and Chinese tourists so it’s pivotal for hotel operators and other leisure-related businesses to continue innovating to corner the local market’s expansion.”
“Hotel demand will continue to be driven by domestic tourists and business travellers. The latter is partly lifted by sustained demand for MICE facilities. Occupancy was stable in the first half of 2025, supported by demand from domestic tourists and in-person events. By end-2025, we project occupancy to remain below pre-pandemic levels as foreign arrivals continue to lag versus DoT’s forecast,” Bondoc added.
