Manila, Philippines – The Philippines' leading real estate consultancy firm, Richeliu Property Consultants (LPC), through its director for hotels, tourism, and leisure, Alfred Reyes, recently projected a downturn in tourist arrivals from South Korea, the Philippines' top tourism market, throughout 2025 due to the weakening of the South Korean won.
During a recent press briefing, Reyes also argued that the number of visitors to the Philippines this year would likely remain at the 6 million level, significantly below analysts' projections of up to 8 million. According to a report by Inside Asian Gaming (IAG), in the first three months of 2025, inbound tourist arrivals to the Philippines decreased by 0.51% year-on-year, primarily due to a decline in visitors from South Korea and China. Specifically, arrivals from South Korea saw a substantial drop of 13.9%, totaling 395,059.
Citing data from the Philippine Department of Tourism, Reyes pointed to the won's fall to a 16-year low this week amid the impact of US tariffs, stating that the tourism industry is in a state of "pause" and there is little the Philippines can do about it. 1 As reported by the Philippine News Agency, he noted, "A lot of this is beyond our control. Such is the case with Korea, which is our top tourist market."
He further explained, "It's like Japan in the last few years where the yen hit a 30- to 35-year low against the dollar, and now the won is facing a similar situation. The Korean market has really contracted with the uncertainties brought about by the declaration of martial law and the resulting political turmoil." He emphasized, "The fact that our top tourist market has declined by 14% is something that we need to be very aware of and find solutions to address."
Referring to the decline in Chinese tourists last year as well, Reyes added, "We don't see any clear catalysts for the next three quarters. So, unless there's a major shift, we anticipate that the Philippines will struggle to surpass the 6 million mark."
Impact of the Weakened Won: The depreciation of the South Korean won increases the cost of overseas travel for Koreans, potentially deterring them from visiting even relatively affordable destinations like the Philippines. This is not only a short-term issue but could also lead to long-term changes in the travel patterns of South Korean tourists.
Delayed Recovery of the Chinese Market: China is another crucial tourism market for the Philippines, but its recovery has been slow in recent years due to political and economic factors. While the Philippine government is implementing various policies to attract Chinese tourists, a significant impact has yet to be seen.
Challenges Facing the Philippine Tourism Industry: Besides the sluggishness in the South Korean and Chinese markets, the Philippine tourism industry faces numerous challenges, including inadequate infrastructure, safety concerns, and aggressive marketing by competing nations. Addressing these issues and securing new growth drivers requires multifaceted efforts.
Need to Explore Countermeasures: The Philippine government and tourism-related industries must formulate short-term responses to the decline in the South Korean market while also striving for long-term diversification of the tourism sector. This includes actively targeting other potential markets such as Southeast Asia, Japan, and the United States, as well as developing new tourism products and strengthening promotions. Furthermore, continuous investment in improving tourism infrastructure and creating a safe travel environment is essential.
In conclusion, the Philippine tourism industry is expected to face significant challenges in 2025 due to the weakened won and sluggishness in key markets. Overcoming this crisis and achieving sustainable growth will require proactive collaboration and innovative strategies from both the government and industry stakeholders.
[Copyright (c) Global Economic Times. All Rights Reserved.]
