Tourist arrivals to the Philippines in the first quarter of 2025 reflect both an overall increase in volume and an alarming dip in key source markets. According to the Department of Tourism (DOT), arrivals from South Korea and China fell by 13.9% and a dramatic 33.7%, respectively, compared to the numbers in the first quarter of 2024. These two countries have historically been the Philippines’ biggest sources of tourists.

Despite these setbacks, total international arrivals reached 1.2 million in Q1 2025, reflecting a modest improvement from 1.16 million in the same period last year. This growth has been largely driven by travellers from Australia, Canada, and Singapore—markets that may hold the key to the Philippines’ tourism future.

These figures highlight the fragility of a model reliant on volume-driven tourism, especially from countries vulnerable to geopolitical and economic volatility. The trend should be a wake-up call to the Philippine tourism sector to shift toward attracting quality over quantity, or travellers who seek immersive experiences, stay longer, spend more, and tread lightly.

This suggested pivot aligns with the latest insights from the United Nations World Tourism Organization, which emphasizes that modern global travellers are prioritizing sustainability, personalization, cultural connection, and wellness. Destinations that embrace these values are seeing stronger and more resilient tourism growth. The Philippines, rich in biodiversity and cultural heritage, is ideally positioned to benefit—but still underdelivers in infrastructure and accessibility.

Market voices

American retiree Bryan Hatchell, 54, speaks to this country’s unique appeal: “The Philippines has a special charm all of its own. Yes, Vietnam and Thailand are great, but the natural beauty of the islands in the Philippines has to be seen in person to be believed. However, it’s really the Filipino people and culture that make the country truly unique and beautiful.”

Hatchell notes the difficulty of travelling between islands. Still, his overall experience has been positive, especially with the special resident retiree’s visa (SRRV) that the Philippines offers. “Getting a retirement visa in most Asian countries can be very difficult, but in the Philippines [the process] is easier and much less expensive,” he says. “I applied for and received my lifetime SRRV in about two months. The Philippine Retirement Agency made the entire process simple and straightforward. If you’re considering retirement in Southeast Asia, then the Philippines is definitely a great choice.”

Younger tourists, too, are discovering the country’s raw appeal. Jasmine De Maid, a solo traveller from England, declares: “The Philippines is the most beautiful country I’ve been to. I love it; I will be back for sure.” 

On a seven-month backpacking trip across Asia, the 24-year-old chose to stay in the Philippines for an entire month, enticed by glowing recommendations from her aunt and the country’s famed snorkelling sites.

These testimonies—from the retirement and youth travel sectors—highlight the kind of travellers the Philippines should be targeting: those who explore deeper, stay longer, and travel with a sense of curiosity and purpose, but who also expect convenience, clarity, and comfort in return.

Unfortunately, that value proposition is still incomplete. International gateways remain limited. Reaching key destinations often requires multiple transfers—from international flights to domestic hops and ferry rides. This complexity, coupled with unexpected terminal and environmental fees, confusing pricing, and inconsistent standards, creates friction in what should be a seamless experience.

High-performing destinations 

Nevertheless, some destinations continue to thrive despite these challenges. Palawan—with its breathtaking seascapes in El Nido and Coron—remains a bucket-list destination for nature lovers. Cebu draws a wide spectrum of visitors because of its blend of heritage sites, diving spots, and urban amenities. Post-rehabilitation Boracay has reemerged as a cleaner, more organized beach escape, retaining the allure of its powdery white sand and vibrant nightlife. Siargao attracts eco-conscious adventurers with its surf culture and natural lagoons. And Bohol remains a favorite among heritage and nature seekers with its Chocolate Hills, tarsier sanctuaries, and riverside experiences.

These thriving destinations exemplify the country’s potential—but also expose the unevenness in access, service standards, and long-term planning.

The DOT under Secretary Christina Frasco has made notable strides in designating regional priority areas and coordinating with local government units. However, systemic issues remain. Clean, safe roadside facilities (or REST areas), well-maintained jetty ports, PWD-friendly and accredited transport systems, and user-friendly digital platforms must become the rule rather than the exception.

The Philippines must also move past the “cheap alternative” narrative. Competing on price with Thailand or Vietnam is a losing strategy. The country’s strength lies in its extraordinary natural beauty, warm hospitality, and vibrant living heritage, but these must be backed by quality infrastructure, professional training, and strong regulation.

The road ahead

The success of homegrown festivals constantly provides lessons. Sinulog, MassKara, and Dinagyang became international draws not by chance but through sustained investment and savvy promotion. A similar commitment to excellence can elevate entire regions; it can transform cultural authenticity and environmental stewardship into strong assets.

Tourism, after all, does not operate in isolation. It overlaps with transport policy, environmental conservation, digital innovation, public health, and peace and order. A whole-of-government approach is essential.

The path forward is clear: Target travellers who care about culture, conservation, and comfort. Build experiences that are memorable not just for their beauty but also for their ease and integrity. And invest in systems, not mere slogans. In the eyes of today’s traveller, the Philippines cannot just be fun. It must be functional, fulfilling, and—above all—worth the journey.