Tourism needs a facelift

The Philippines has lost its viability, based on recent tourism figures in Southeast Asia. 

Data from the Department of Tourism (DOT) showed that the Philippines attracted 5.235 million tourists from January to November last year, a 2.16% drop from the 5.35 million recorded in the same period in 2024. 

With 7,641 islands offering diverse cultures and sights – including Boracay and Palawan -and surfers continuing to flock to Siargao, the country should easily be a top tourism attraction in the region. 

But why does the Philippines still lag behind Thailand and Vietnam? 

Thailand, for example, welcomed 28.3 million foreign tourists between Jan. 1 and Nov. 16, 2025, according to latest data from the country’s Ministry of Tourism and Sports. 

Although tourist arrivals fell 7.18% year-on-year, it still generated approximately 1.3 trillion baht (about P2.4 trillion) in revenue. 

Vietnam, on the other hand, recorded 19.15 million tourist arrivals in January to November 2025, up 20.9% year-on-year. The country welcomed nearly 1.98 million visitors—the highest monthly figure ever recorded in November alone. 

Compared to these numbers, the 5 million tourist arrivals in the Philippines for the same period appear insignificant. 

A policy paper published last June said the Philippines had the lowest RoTI (return on tourism impact) compared to Indonesia, Malaysia, Singapore, Thailand and Vietnam. 

“In the case of the Philippines, the Duterte and Marcos administrations allocated approximately $23 billion over several years to tourism infrastructure and promotional programs. 

Yet in 2024, total tourism receipts were only about $13.1 billion, implying a RoTI of approximately 0.57 — meaning the country earns only 57 cents for every dollar invested,” the report, “Which Southeast Asian countries truly profit from tourism,” stated. 

It cited poor infrastructure, weak branding, and administrative hurdles as factors. 

Although DOT has disputed the analysis, calling it “flawed, misleading and harmful” and “undermine[s] the efforts of millions of Filipinos whose livelihoods depend on the sector.” 

It said that every peso invested in tourism generated P5.50 in returns in 2024, “equivalent to a benefit-cost-ratio of 5.5 and an ROI of 4.5 or 450% return beyond cost recovery.” 

The Philippines’ tourism sector, per an article published last October by Danish-based financial advisory firm Lundgreen’s Capital, has struggled to regain the momentum it lost during the pandemic, with revenues plateauing between 2023 and 2024. 

In pre-pandemic 2019, the sector contributed as much as 12.7% of the gross domestic product, but this dropped to 8.9% in 2024. 

Lundgreen acknowledged the government’s efforts in courting more international tourists, including extending visa-free travel agreements—the latest with India—and issuing digital nomad visas for remote workers opting to make the Philippines their home base. 

“However … [i]ncomplete infrastructure, such as subpar airports and poor-quality roads and commuting options, as well as higher costs of food, accommodations, and leisure activities relative to other tourist spots in Southeast Asia are keeping foot traffic into the Philippines low,” Lundgreen said. 

It noted the poor broadband internet speeds compared to Singapore, Vietnam and Thailand make remote work in the country unappealing. 

The recent controversy about airfares to Siargao—a major tourist attraction—costing as much as P30,000 has further highlighted why tourists, including locals, prefer to travel to nearby countries. Experts have attributed the prohibitive fares to poor airport infrastructure that cannot accommodate the influx of tourists to the island, making it more expensive for air carriers to service the route. 

Infrastructure and poor transport connectivity are common problems for other islands as well, and the government must work double time to improve them. 

DOT has also been criticized on social media for focusing more on the agency’s activities on its Facebook page instead of featuring local attractions, like what other countries’ tourism agencies have consistently been doing. The controversial tourism slogan “Love the Philippines” has ironically also failed to receive love, compared to the previous campaign. 

Overhauling the tourism campaign, however, is just one of the issues that the DOT must address, as there are many low-hanging fruits that it can work on: promote secondary destinations near famous ones, for example, Romblon near Boracay, or Siquijor near Bohol; curate regional food trails in Pampanga, Iloilo, Bicol, Cebu, etc.; strengthen the wellness and retirement sector, among others. 

It is all just a matter of integration and implementation. The country’s natural wonders and rich culture, as well as Filipinos’ warm nature and their proficiency in the English language, should be the main characters in its tourism pitch—not any government official—to make the Philippines more fun again.