MANILA, Philippines — The Philippines is still far from becoming a regional hub for foreign tourists as the country’s tourism industry remains heavily reliant on local travelers.
Based on a report by the Congressional Policy and Budget Research Department (CPBRD), the Philippine travel market remains driven by domestic tourism.
Drawing data from the Philippine Statistics Authority, CPBRD said tourism expenditures went up by 13 percent to P3.86 trillion in 2024 from P3.41 trillion in 2023.
The local travel market made up 82 percent of the amount at P3.16 trillion, showing how locally reliant the tourism industry is. Tourism expenditures from foreigners rose by just below one percent to P700 billion, as growth started to taper off from the post-pandemic spike.
The Philippines posted a ninepercent jump in international arrivals to 5.95 million in 2024 from 5.44 million in 2023. However, this figure fell short of the government’s target of 7.7 million as China – which used to be a top source market – is slow to regain pace.
“This indicates that although tourism spending has recovered, its growth is now starting to level off,” CPBRD said.
“The figures also emphasize the importance of domestic travel in sustaining the overall tourism industry, while efforts to boost international tourism continue,” it added.
CPBRD stressed the urgency of supporting domestic tourism, especially as international arrivals are declining midway into the year.
Foreign arrivals into the country have dropped by one percent to three million as of June, from 3.03 million a year ago. The CPBRD said this puts the government at risk of missing its goal again, which is 8.4 million for 2025.
So far, the Philippines is suffering a double-digit decline in international arrivals from China and South Korea. To address this, aviation regulator Civil Aeronautics Board is negotiating to expand flight capacity between the Philippines and South Korea to encourage travel.
It remains to be seen when China would recover in light of weaker Chinese demand for outbound travel and following the blanket ban on Philippine offshore gaming operators, which used to be a driver in Chinese arrivals.
In spite of this, the country’s largest carriers Cebu Pacific and Philippine Airlines are scaling up their international network to shore up demand for both inbound andoutbound trips.
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