US tops Philippine tourism market, propelled by strong ties, even stronger dollar
The Philippines, however, attracted just 2.1 million of Southeast Asia’s 48.5 million tourist arrivals in the first four months of this year
By Sam Beltran Published: 7:40pm, 23 Jun 2026
https://www.scmp.com/week-asia/lifestyle-culture/article/3358035/us-tops-philippine-tourism-market-propelled-strong-ties-even-stronger-dollar
The US has overtaken South Korea as the Philippines’ top source of foreign tourists this year, helped by diaspora travel and closer ties between the long-time allies, giving Manila a boost as it tries to close the gap with more popular destinations in Southeast Asia.
Figures from the Philippines’ Department of Tourism (DOT) showed that between January and May, 531,859 visitors came from the US, while 501,789 were from South Korea – comprising 19.4 per cent and 18.3 per cent of the total tourism arrivals, respectively.
The rise comes against the backdrop of a consistently strong public perception of the US, as both countries continue to deepen their defence and economic ties.
A survey by pollster Social Weather Stations released last September showed that Filipinos trusted the US the most, as 72 per cent expressed “much trust” in its long-time ally, recording a “very good” trust rating of +63.
Washington and Manila have also ramped up their economic partnership tied to their security goals.
These include 1,619-hectare (4,000-acre) economic security zone being built under America’s Pax Silica Initiative to accelerate industrial activity in high-value sectors such as semiconductors, and the realisation of the Luzon Economic Corridor – a trilateral infrastructure initiative with Japan that is projected to generate US$100 billion for the Philippine economy.
American tourist muscle
The Philippines could capitalise on growing interest from American tourists, analysts said, because it offered something many short-haul Asian markets did not: a deep pool of repeat visitors with family ties, longer stays and a built-in familiarity with the country.
But that advantage also highlights how much ground the country still has to make up against its neighbours, despite tourism’s outsize role in its economy.
Figures from Vietnam-based travel intelligence firm Outbox Company showed that the Philippines attracted just 2.1 million of Southeast Asia’s 48.5 million tourist arrivals in the first four months of this year. The sector accounts for nearly 20 per cent of the Philippine economy, placing the country as one of the most tourism-reliant economies in the region.
“The US emerged as one of the top sources of foreign tourists for the Philippines amid stronger diplomatic relations and increased military exercises in recent years,” said Michael Ricafort, chief economist of the Rizal Commercial Banking Corporation in the Philippines.
The boost has been complemented by the strengthening of the US dollar, making it cheaper for American tourists to spend in the Philippines.
Returning Filipinos might have further contributed to this growth. “Traditionally, balikbayans [returnees], including naturalised US citizens with Filipino roots, could have structurally increased [the growth of US tourism] in the Philippines,” Ricafort said.
History also plays a part. The US market was the largest “before the rise of East Asia”, said Edieser dela Santa, a professor at the University of the Philippines’ Asian Institute of Tourism. South Korea overtook the US between 2023 and 2025.
“This can be connected to our historical relationship with the US. It was, and is, a huge market for us … always in the top five,” he added. “Focusing on the US makes a lot of sense, not just because of our history, but because it is the world’s largest travel and tourism market.”
The large diaspora in the US was an advantage, he said. “Adding almost five million Filipinos and Filipino-Americans living in the States, who come home from time to time, the country has good reasons to rely on the US for international tourism growth.”
DOT maintained three tourism offices there, “far more than any other country, to ensure that the Philippines is promoted”, he said. “I suppose that this traditional focus will remain well into the future.”
Diversifying tourism
However, the Philippines cannot rely on the US alone, analysts say, urging the country to diversify both its sources of foreign tourists and reasons visitors come beyond leisure and recreation.
Meetings, incentives, conferences and exhibitions (MICE) tourism, as well as other long-term stays such as retirement, business and investment opportunities, were other ways forward, Ricafort said.
“Investment opportunities such as the Pax Silica can position the Philippines as a new frontier for more business and economic activities – especially on AI, rare earths, EVs, and other hi-tech industries for locators and foreign direct investments from like-minded allies and competitors.”
The Philippines could look into attracting tourists from other affluent nations “with long winters” eyeing tropical destinations where they can stay for longer periods.
It should also work to win back its former markets, according to Ricafort. South Korea, which was the country’s highest source of tourists from 2023 to 2025, had a negative growth rate of 9.56 per cent in 2025. A total of 554,855 South Korean visitors were recorded last year.
Safety fears were one worry. Last year, the embassy in Manila advised South Koreans to limit outdoor activities “due to security concerns” after recording over 200 criminal incidents involving its citizens, including homicide, kidnapping and armed robbery, that year.
Another was the lure of more attractive destinations. DOT Secretary Dita Angara-Mathay admitted the Philippines was losing its share of South Korean tourists to places such as Vietnam.
“Our slot has been taken by Vietnam and other Asean countries as it only takes half of their costs to go there,” she said in an interview with the Philippine News Agency on Saturday, adding that the department was working on creating new tour bundles to lower the costs of travel.
“For many years, South Koreans, including those who study English in the Philippines, were the top sources of foreign tourists,” Ricafort said.
“However, economic and political challenges, as manifested by a weaker won that made foreign tourism for South Koreans more expensive, could have been some headwinds.”
The Philippines also saw a significant decline in Chinese tourists from its territorial disputes in recent years, as well as the ban on offshore gaming operators in the Philippines in 2024.
Increasing the Philippines’ foreign tourism business was a “low-hanging fruit”, Ricafort said, with other Southeast Asian countries having three to five times more tourists than the Philippines, as well as higher tourism revenues.
“Increasing foreign tourism would require a bigger capacity to scale up, such as further development and expansion of airports, seaports, accommodation facilities, mass transport, toll roads, and other infrastructure that would also make it more convenient for foreign tourists to visit the country,” he said.
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Sam Beltran is a journalist based in Manila who has written for publications in the Philippines and around Asia.
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