Philippines tourism has yet to fully recover from impacts of the Covid-19 pandemic. But in its 2025 midyear outlook, Unicapital Securities Inc said the industry “offers a strong opportunity to rebound” — provided that the travel and hospitality sectors step up their game.
In 2019, tourism direct gross value accounted for PHP2.51 trillion (US$44.2 billion) of gross domestic product. More than five years later, “we still hover below that threshold”, research analyst Jemimah Ryla R. Alfonso said in comments to Philippines Business World.
She cited the “continued underperformance of the accommodation services segment”.
Tourism master plan a start, but …
In 2023, the Philippines Department of Tourism (DOT) unveiled a five-year plan to boost visitation and make the country more competitive with other Asian destinations.
But the initiatives “are too underpowered to steer a full recovery”, said Alfonso. “We need to have a sharper brand. We need to have tourist-friendly policies as well as a seamless travel experience.”
About 5.9 million tourists visited the Philippines in 2024, well under the 8.3 million arrivals recorded in 2019 and the official target of 7.7 million. “The slow momentum continues into 2025,” per the Uncapital report, “with data from January to April showing arrivals trailing 27% below pre-Covid levels for the same period.
“In our view, this shortfall reflects more than just a delayed return to travel. International travelers remain hesitant. Infrastructure hasn’t fully caught up yet, making it harder to move people comfortably and confidently,” the report added.
Putting out the welcome mat
South Korea and the US remain the country’s top feeder markets. But arrivals from China, once the Philippines’ second-largest source market, have dropped off significantly since 2023, when the Philippines Department of Foreign Affairs suspended e-visas for Chinese nationals.
To compensate, tourism officials are cultivating new business. In May and June, the DOT introduced visa-free entry for Indian and Taiwanese travelers, respectively. Starting 2 October, Air India will offer direct flights between Delhi and Manila.
In remarks last week, Tourism Secretary Christina Garcia Frasco said the Philippines will become a “tourism powerhouse” under the 2023–2028 master plan.
Frasco pointed to infrastructure initiatives like the construction of more than 700 kilometres of highway and the recent privatization of Bohol-Panglao International Airport. Concurrently, Ninoy Aquino International Airport is underdoing a multibillion-dollar expansion to more than double its capacity. And the new Manila International Airport in Bulacan is expected to break ground in early 2026.
Tourism impact on gaming revenue
Returning travel volumes will have a beneficial effect on gross gaming revenue at land-based casinos, especially the VIP segment, and also lift the hospitality sector in general, the Unicapital outlook noted.
“With investments and support from both the public and private sectors, Philippine tourism holds the potential to regain — and even surpass — its former glory,” according to the report.
Philippines tourism has yet to return to pre-pandemic levels, but Unicapital Securities says the needle is moving “in the right direction” with potential to benefit land-based casinos.