More Chinese and Japanese Tourists are Visiting the Philippines, DOT Says

Nearly two million visitors to the Philippines were recorded in the first three months of the year, still less than pre-pandemic levels but higher than the same period last year.   

Data from the Department of Tourism show that, from January to April 15 this year, inbound arrivals in the Philippines were at 1.88 million, still about 14.5-percent fewer than the first quarter of 2019, and 34.5-percent lower than the arrivals in January to April 2019. However, the number is 19-percent higher than the 1.58 million who arrived from January to April 13, 2023.

Foreign tourists accounted for 1.77 million of total arrivals, while the remaining 107,606 were overseas Filipinos or Philippine passport holders permanently residing abroad.

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As for specific markets, South Korea kept the top spot with 514,146 for a market share of 27.4 percent. Tourists from South Korea were up 31.5 percent from almost the same period last year (January to April 13, 2023).

Visitors from the United States grew by four percent to 295,281, and accounted for a 15.74-percent market share, which was good enough for second place.

While tourists from mainland China was at third place with 122,812 (market share of 6.55 percent), it represented a phenomenal growth of 138.22 percent from the same period last year.

Meanwhile, arrivals from Japan surged 62.74 percent to 116,020 for a 6.18-percent share of total arrivals. At fifth spot were visitors from Australia, which grew 1.5 percent to 81,391 and market share of 4.34-percent.

Other major markets for the Philippines during this period include 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). 

Shift in Chinese travel preferences 

Despite the growth of inbound tourists from China, Chinese tourists overall still have some ways to go to surpass or even match pre-pandemic levels. According to a report from Economist Intelligence Unit published in March 2024, Chinese tourists going to countries outside of Hong Kong, Macau, and Taiwan reached 2.4 million in 2023. This represents only 36.3 percent of 2019 levels.

Analysts say the sluggish recovery of China’s outbound tourism is due to “a slowdown in economic growth, widespread youth unemployment, inadequate tourism services, and lack of flights.” 

While the EIU says the number of Chinese outbound travelers continue to rise, it does not expect outbound tourism to return to prepandemic levels until 2025, saying that Chinese tourists’ 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 Chinese tourists’ total spending 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.”

The DOT has said increased arrivals from China will significantly help inbound arrivals recover to the pre-pandemic level of 8.3 million in 2019. That year, there were 1.74 million tourists from China, putting it in second place as a top market, after South Korea, whose arrivals hit 1.99 million.

To entice more Chinese travelers, the Department of Foreign Affairs introduced an electronic visa application system for them to the Philippines that was pilot-tested in Shanghai. However, the system has been “put on hold” as the DFA said it is “currently undergoing a period of reassessment and further enhancement.”

At the same time, lawmakers have urged 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 here in the Philippines.