The Philippines remains one of the slowest to recover in intra-Asean tourism, trailing most Southeast Asian neighbors despite a broader regional rebound. Data from the ASEAN Statistics Division show that even before the pandemic, the country lagged behind regional leaders. In 2019, the Philippines recorded 526,832 intra-Asean visitors, far below Malaysia’s 17.9 million and Thailand’s 10.8 million.
The pandemic worsened the gap, with arrivals plunging to just 7,773 in 2021. Although numbers improved to 188,205 in 2022 and 484,465 in 2024, they remain below pre-COVID levels. In contrast, Malaysia and Thailand have largely recovered, while Cambodia and Vietnam posted faster growth.
University of the Philippines associate professor Dr. Rogelio Alicor Panao said the country’s slower rebound points to structural constraints, including higher travel costs, weaker connectivity and delayed reopening.
Budget and Competitiveness Gaps
The trend mirrors the Philippines’ broader tourism performance. The Department of Tourism reported 5.24 million international arrivals in the first 11 months of 2025, still 37% below 2019 levels, while Vietnam has already surpassed its pre-pandemic numbers.
Tourism Secretary Christina Garcia Frasco acknowledged a funding disadvantage, with the department’s branding and marketing budget shrinking from P1.3 billion in 2023 to just P100 million in 2025.
Infrastructure bottlenecks and rising travel costs further weigh on competitiveness. Lawmakers are proposing to abolish the mandatory travel tax to reduce ticket prices and stimulate demand. Sen. Francis Pangilinan said lowering costs could expand passenger volume and boost tourism-related spending.
Domestic Strength, External Pressures
Domestic tourism has helped sustain the industry. According to the World Travel & Tourism Council, the Philippines led Southeast Asia in domestic tourism spending in 2024, reaching $63.4 billion and supporting 11.22 million jobs.
Still, international arrivals face headwinds. China’s visitor numbers fell sharply amid geopolitical tensions and reduced flights, while South Korea, long the country’s top market, has shown signs of weakness due to safety concerns and natural disruptions.
Despite strong revenues, the Philippines’ tourism recovery remains uneven, particularly within Asean, underscoring the need to address long-standing structural gaps.
