PH Eyes 101 Percent Growth in Foreign Tourist Spending by 2030

The Philippines continues to position itself as one of the fastest growing countries in Southeast Asia. It owes this significant boost to foreign tourist spending, which is projected to rise by 101 percent over the next five years, according to the WTM Global Travel Report 2024.

The data—prepared by Tourism Economics, a unit of Oxford Economics, and presented recently at the World Travel Market in London—suggests that the Philippines is gaining ground on Thailand, which is expected to hit a 147 percent growth rate.

Asia continues to maintain its status as the fastest-growing region globally, even with China’s slow pandemic recovery significantly affecting overall numbers, observed David Goodgear, managing director for Europe, the Middle East, and Africa at Tourism Economics. He noted that Chinese outbound travel remains below pre-pandemic levels, with visits to Asia down by 28 percent compared to 2019. In addition to this, shifts in the yuan and consumer prices have decreased the Chinese spending power.

China plays a vital role in driving regional and global growth, as reflected in the Philippines’ potential shortfall in achieving its 7.7 million inbound visitor target this year, due to a decline in arrivals from mainland China. But China’s wealthier population and growing middle class is bound to support future travel growth, with 44 million new households expected by 2030, said Goodgear.

The Philippines is gaining ground on Thailand, which is expected to hit a 147 percent growth rate.

Travel trends

India is considered an opportunity market for the Philippines, prompting the Department of Tourism to propose relaxed visa rules to attract more Indian visitors, particularly as a wedding destination, as highlighted by the Tourism Promotions Board’s strategies.

India’s economy is set to grow rapidly, boosting travel demand, but it will still trail behind China. Challenges like infrastructure, capacity, and visa policies will limit India’s international travel growth without more reforms, Goodgear noted.

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Discussing the evolving travel trends, Goodgear highlighted the appeal of Southeast Asian countries, especially for longer-haul travelers who are looking to explore new and more affordable destinations. “Long-haul travel to the sub-region will outpace that for the wider Asia region,” he said, adding that there is a growing demand among travelers for unique and richer experiences.

Over 80 percent of experts, said Goodgear, believe that ongoing inflation will impact travel retail by 2025, making consumers more price-conscious. Nevertheless, the future looks bright for international travel, with 1.5 billion arrivals expected by the end of the year, which would likely reach the two billion mark by 2030, largely due to increased demand from China.