For a second consecutive year, the Philippines has fallen short of its international tourist arrivals target – but industry observers say the figures also point to a thriving domestic tourism sector as well as cautious optimism for the year ahead.
In 2024, the Department of Tourism (DOT) set a target of 7.7 million international arrivals; actual figures closed the year at 5.9 million. In 2025, arrivals eased slightly to 5.6 million against a higher target of 8.4 million. As of early December, the Philippines had recorded more than 5.2 million arrivals, of which over 4.7 million were foreign visitors, with the remainder classified as overseas Filipinos.
Visitors from its largest source market, South Korea, totalled just over 1.4 million, down 21% from 2024. South Korea was trailed by the United States, which was up 6.57% from 2024’s, with over 800,000 visitors.
Industry experts cite a convergence of long-standing challenges behind the softer numbers. These include a high-friction arrival experience – from extended immigration queues to baggage delays – alongside infrastructure gaps and limited inter-island connectivity. The reduced number of flights between the Philippines and China, once its second-largest source market, has also weighed on recovery momentum.
Lower targets, longer-term ambition
Against this backdrop, the DOT has opted for a more measured approach in setting its 2026 goal at 6.7 million international arrivals.
It’s a comparably modest goal considering other destinations in the region. Thailand, which also saw a dip in arrivals for 2025, has set a foreign visitors target of 36.7 million. Vietnam, the region’s newest tourism powerhouse which welcomed an estimated record-breaking 21.5 million visitors last year, is setting its sights on 25 million foreign arrivals for 2026.
But the numbers also tell another story. Despite the dip, the sector remains a strong contributor to the country’s overall GDP, thanks in part to its robust domestic tourism. The Philippines Tourism Satellite Account reports that in 2024, the sector contributed 8.9% of the country’s GDP.
There’s a sense of cautious optimism among stakeholders. Speaking to local media, Alfred Lay, Director for Hotels, Tourism and Leisure at Leechiu Property Consultants, says he expects the number of foreign arrivals for 2026 to increase, notably by the third quarter, thanks to better airport management, ease of entry and added international flights to the country, mainly from Australia and the Middle East.
A 2026 promotions budget of P1.3 billion pesos (US$21.9 million) – a 1,200% increase from last year’s P100 million promotions budget – is also expected to boost international arrivals.
Philippines, as it assumes chairmanship of ASEAN this year, will be hosting the ASEAN Tourism Forum 2026 in Cebu. Preparations are underway to welcome the annual travel event, which is expected to bring over a thousand delegates to Cebu.