INBOUND arrivals in the Philippines reached some 1.88 million from January to April 15 this year, with tourists from mainland China and Japan kicking up the largest increases among the country’s top markets.
Department of Tourism (DOT) data showed foreign tourists accounted for 1.77 million of total arrivals, while the rest, at 107,606, were overseas Filipinos or Philippine passport holders permanently riding abroad.
South Korea remained the top source market for tourists in the country, with arrivals reaching 514,146, and representing a 27.4-percent market share. Said arrivals increased by 31.5 percent from the 390,857 who arrived from an almost similar period, from January to April 13, 2023. Recently, a Korean Air official predicted arrivals from South Korea will reach 2 million this year, from the 1.77 million in 2023. (See, “South Korea visitors to reach pre-Covid levels by 4Q,” in the BusinessMirror, April 19, 2024.)
In second place this year was the United States, from which tourists grew by 4 percent to 295,281, and accounted for a 15.74-percent market share. Mainland China was the third largest market with 122,812 tourists, surging by 138.22 percent from the same period last year. The market accounted for a 6.55-percent market share.
Shift in Chinese travel preferences
Arrivals from Japan increased by a hefty 62.74 percent to 116,020, and represented 6.18 percent of total arrivals, while Australia’s grew by 1.5 percent to 81,391, with a 4.34-percent market share.
This developed as a March 27, 2024 report from the (EIU) noted China’s “tepid and partial growth for outbound tourism in 2023,” with trips to other countries outside of Hong Kong, Macau, and Taiwan reaching 2.4 million, “only recovering 36.3 percent of its 2019 levels.”
The sluggish recovery of China’s outbound tourism has been attributed to its slowdown in economic growth, widespread youth unemployment, inadequate tourism services, and lack of flights.
The EIU forecasts the number of Chinese outbound travelers continuing to rise, but “we do not expect outbound tourism to return to prepandemic levels until 2025.” It believes the market’s travel preferences “will gradually shift away from shopping overseas to consumption of cultural and experiential products. This change has already taken shape; the share of shopping in the total spending of Chinese tourists in Japan dropped from 51.1 percent in 2019 to 37.3 percent in 2023. In contrast, their spending on accommodation and entertainment surged. In this regard, sports and musical events that drive overseas travel could be more popular among Chinese tourists.”
E-visa still on hold
Meanwhile, total arrivals from January to April were 14.5 percent less than the first quarter of 2019, and 34.5 percent lower than the arrivals in January to April 2019. But they were 19 percent higher than the 1.58 million who arrived from January to April 13, 2023.
Other major markets for the Philippines this reference period included: Canada, which dipped 3.3 percent to 75,554 tourists; Taiwan with 67,526 (+ 33 percent); the United Kingdom with 54,430 (+ 9.27 percent); Singapore with 42,717 (+ 5.8 percent); and Germany with 32,629 (+ 15.24 percent).
The DOT is pinning its hopes on increased arrivals from China to help inbound arrivals recover to the prepandemic level of 8.3 million in 2019. That year, there were 1.74 million tourists from China, making it second as a top market, after South Korea, whose arrivals hit 1.99 million.
Last November, the Department of Foreign Affairs put on hold its electronic visa application system for Chinese travelers to the Philippines after being pilot-tested in Shanghai. Officials explained the system is “currently undergoing a period of reassessment and further enhancement.”
Lawmakers, however, have been urging relevant government agencies to tighten their screening of Chinese nationals applying for visas after recent crackdowns showed illegal activities being committed by Chinese tourists and holders of special retirement visas. (See, “Nancy urges PRA anew: Be careful on retiree visa grants,” in the BusinessMirror, April 7, 2024.)
Image credits: EIU