Philippine tourism weathers oil price pressures despite shifts in visitor markets

The Philippines has recorded its strongest five-month tourism performance since the pandemic.

Even as higher energy costs and a slowdown in arrivals from South Korea reshape the outlook for the country’s visitor economy.

Data released in the first half of 2026 suggest that international demand has remained resilient despite growing uncertainty in global travel markets.

While concerns over fuel prices and regional geopolitical tensions continue to influence aviation and tourism, stronger arrivals from several key markets have helped offset weaknesses elsewhere.

According to the 1H 2026 Philippine Property Market Report by Leechiu Property Consultants (LPC), the country welcomed 2.74 million foreign visitors between January and May 2026.

That figure represents the highest total for the same period in the past five years.

It exceeds comparable numbers recorded from 2022 to 2024, when arrivals ranged from 559,000 to 2.56 million, according to the Philippine News Agency.

Increase in global arrivals

The report, drawing on Department of Tourism data, attributes much of the growth to increased arrivals from the United States, Japan and Canada, alongside a notable recovery in visitors from China.

These gains have compensated for softer demand from South Korea, traditionally one of the Philippines’ largest source markets.

LPC Director Alfred Lay said further growth in Chinese arrivals could follow recent changes to Philippine visa policies and the introduction of additional travel packages targeting the market.

He also noted continued growth in Japanese arrivals. Between January and May, visitor numbers from Japan reached 226,000, up from 211,000 during the same period last year.

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Economic factors

Although inbound tourism has strengthened, industry observers caution that several economic factors could influence visitor numbers during the remainder of the year.

Lay said the depreciation of the Philippine peso may improve the country’s competitiveness by making it a more affordable destination for foreign visitors.

However, any advantage from favourable exchange rates could be offset by higher airfares and rising domestic transport costs.

The latest figures suggest that Philippine tourism has entered 2026 from a position of relative strength.

Whether that momentum can be sustained will depend not only on the country’s ability to attract new visitor markets, but also on how global energy prices and international travel conditions evolve over the remainder of the year.

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