A new report from Bank of America (BofA) has pointed out that the slow return of Chinese tourists is hindering travel recovery in the Philippines. The report highlighted the uneven recovery in tourism across Asia, with the Philippines, China, Hong Kong, and Taiwan being labeled as the “laggards” in terms of reaching pre-pandemic levels of tourist arrivals.
BofA noted that as of February this year, foreign visitor arrivals in the Philippines were only at 76 percent of pre-pandemic levels. This was better than Hong Kong and Taiwan, which reported even lower figures.
China was singled out as an outlier among the laggards, as the country reopened its economy much later than its Asian counterparts. This delayed reopening had a negative impact on tourism recovery in countries like the Philippines and Hong Kong, which heavily rely on Chinese tourists.
According to BofA’s data, Chinese arrivals in the Philippines are currently tracking at only 20 to 30 percent of pre-pandemic levels, below trends seen in other parts of the region. The report also highlighted the changing preferences of Chinese consumers, who are now more interested in exploring domestic destinations with unique cultural experiences.
While some Asian economies like Japan and Vietnam have already returned to pre-pandemic tourism levels, countries like Malaysia, Singapore, and Thailand are seeing a sharp rebound in international arrivals. On the other hand, countries like India, South Korea, Australia, New Zealand, and Indonesia are in the middle of the pack, with visitor entries tracking at 80 to 85 percent of pre-pandemic levels.
Looking ahead, the Bangko Sentral ng Pilipinas (BSP) has forecasted a 50 percent growth in tourism receipts for this year, contributing to a projected $700 million dollar surplus in 2024. BofA also noted that Asian economies with falling currencies are likely to attract more foreign visitors looking for affordable holiday destinations in the coming years.
