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Eager for visitors, the Philippines reopens to international tourists.

The Southeast Asian nation had closed its borders to most visitors for nearly two years.

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By Jason Gutierrez

• Feb. 10, 2022

MANILA — The Philippines reopened to international tourists on Thursday for the first time in almost two years, as it looks to kick-start an economy hit hard by the pandemic and the measures taken to control it.

Tourists from 157 countries that have a no-visa arrangement with the Philippines are now welcome, provided they are fully vaccinated and can show a negative coronavirus test, the government said.

The Philippine tourism secretary, Bernadette Romulo-Puyat, said reopening the sector was part of the government’s overall program to revitalize the economy, which has suffered greatly in the health crisis but slightly recovered last year.

“We haven’t had good news for a long time,” she said, adding that she was confident the change would bring back jobs and revenue lost during the pandemic.

Unvaccinated travelers will still need to check into quarantine facilities on arrival, she said, but fully vaccinated Filipino nationals and foreigners would not.

She stressed that nearly all workers in the country’s tourism sector have been vaccinated, and that her department was also helping tourism workers get booster shots.

All hotels in the Philippines have also gone through and completed safety audits, she said.

The Philippines, with a population of 110 million, has recorded an average of about 6,500 new cases a day over the past week, according to the Center for Systems Science and Engineering at Johns Hopkins University. That represents a sharp drop from less than a month ago, when the country was recording more than 30,000 cases a day.

The “careful reopening of the economy” came amid strong lobbying from Ms. Romulo-Puyat, who noted that tourism-related industries suffered tremendously from the health-induced slowdown. The Philippines’ economy grew 5.6 percent last year, after a harsh recession in 2020.

The reopening was originally set for December but was delayed when the highly transmissible Omicron variant spread around the world.

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Recovering tourism industry exceeds target, draws over 5.5 million visitors in 2023

Virgin Island in Panglao, Bohol is a popular destination among local and foreign tourists. (LEO UDTOHAN)

MANILA, Philippines — The Philippines’ tourism industry has been recovering faster than expected since taking a hit during the height of the COVID-19 pandemic, the Department of Tourism (DOT) said on Tuesday.

In its year-end report, the DOT said that the country welcomed over 5.4 million tourists in 2023.

“A total of 5,450,557 international visitors entered the country from January 1 to December 31, 2023,” the DOT said.

It added that among the 5.4 million visitors, 91.8 percent (5,003,475) were foreigners, while 8.20 percent (447,082) were overseas Filipinos.

Target exceeded

This figure is around 650,000 more than the DOT’s projected 4.8 million international visitors for 2023.

In 2022, the Philippines welcomed around two million visitors, 73 percent of the, foreigners.

In early December last year, the DOT announced that it had breached the five million mark for foreign tourist arrivals.

“Annyeonghaseyo”

Its yearend report added that South Koreans accounted for 26.41 percent of the total foreign visitors, making them the Philippines’ largest market for international visitors.

Second on the list are Americans (16.57 percent) followed by the Japanese (5.61 percent), Australians (4.89 percent) and Chinese (4.84 percent).

Further, the DOT said that the country’s international tourism receipts have surged to an estimated P482.54 billion in 2023 – about 124.87 percent higher than the estimated P214.58 billion in 2022. 

“In 2019, or the pre-pandemic period, the DOT recorded P482.15 billion in international tourism receipts,” it added.

“By 2024, the DOT is targeting a baseline target of 7.7 million international visitor arrivals,” the DOT stated in its yearend report.

Resilient tourism industry

Citing the country’s multiple tourism awards in 2023, Tourism Secretary Christina Frasco lauded the tourism industry’s resilience amid setbacks in previous years.

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“The indomitable spirit of the Filipino has been globally acclaimed with the Philippines receiving the Global Tourism Resilience Award with our country seen as a benchmark for innovation amidst trials and challenges,” Frasco said in the same report.

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To Build Up Tourism, Philippines Loosens Pandemic Restrictions For Filipinos

Ashley Westerman

The tourism industry in the Philippines lost some $8 billion in 2020 because of the pandemic. Filipinos are being encouraged to travel domestically to try to restart a crucial sector of the economy.

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Bolstering Philippine tourism as it bounces back

By Chelsey Keith P. Ignacio , Special Features and Content Senior Writer

Travel plans were put on hold amid the border closures and limited mobility prompted by the pandemic. But as restrictions ease and places reopen last year, many travelers are now pumped to get packing. The recovery of tourism, therefore, is taking off. So what lies ahead for the industry this year?

From optimism towards tourism to initiatives to strengthen the industry, tourism leaders and players explored “Further Rebounding the Philippine Tourism Sector” during the BusinessWorld Insights online forum on May 3.

The Philippines has welcomed over 1.8 million international arrivals in the first four months of 2023, according to the Department of Tourism (DoT) Secretary Christina Garcia Frasco. This already surpassed DoT’s target of 1.7 million for last year, which the country also exceeded with 2.65 international arrivals logged in 2022.

“For 2023, the projections of the DoT are that we would be able to usher in no less than 4.8 million in international arrivals. And we fully anticipate the 100% recovery of domestic tourism this year, meaning no less than 122 million domestic trips,” Ms. Frasco said.

“We are very confident of being able to accomplish our goals and that I consider to be our baseline, not our ceiling,” she added.

Hotels and restaurants are now also serving more people, according to Robert John Horrigan, general manager of Acacia Hotel and vice-president for Hotel Division of the Hotel and Restaurant Association of the Philippines (HRAP).

“With the HRAP, we’ve seen our occupancies go higher and our average daily rates; in our restaurants, we have more and more diners. So it is here, revenge travel and tourism is back,” he said.

Maria Suzette Geminiano, corporate marketing manager of Hotel Sogo, meanwhile expressed her bullishness over the path ahead for the country’s tourism.

“We still remain optimistic about the future of Philippine tourism. And by implementing the right measures and working together, we can further rebound and emerge as stronger tourism industry,” she said.

Ms. Geminiano also observed three angles in the changed behavior among travelers in the course of the pandemic.

These behaviors included revenge tourism among several people, with their eagerness to have relaxation and recreation driving them to book many travels; fear of the virus, which would push some people to choose a specific location to stay in; and spending more time with families or loved ones, after some people experienced losing someone during the pandemic.

“These three experiences or behaviors will all still drive us to the improvement of our tourism,” Ms. Geminiano said.

Philippine Travel Agencies Association (PTAA) President Patria T. Chiong also said they are “very optimistic and enthusiastic” now as they are launching events, travels, and tourism, as well as promoting the Philippines as a tourist destination domestically and internationally.

Ms. Chiong especially promoted other parts of the country among Filipino travelers. “We should not only promote Manila because Manila is already congested to our international travelers, but also promote the other cities,” she said.

“We not only have Manila as a tourist destination, but we also have Cebu, Davao, Siargao, and other destinations in the Philippines. As all of us know, the Philippines is an archipelago and we have more than 7,000 islands and we cater to all types of tourists,” she added.

Ms. Chiong also considered word-of-mouth advertising as the best way to persuade friends and family members to travel to one’s preferred tourist destinations in the country.

Additionally, she highlighted that Filipinos should help each other and promote the country to foreign people abroad.

“That’s what I do every time I go abroad. I inform my foreign friends, ‘Come and visit us and I’ll show you around.’ If all Filipinos could do that — or let’s just say half of us, that is already 55 million — it would be easy to achieve the target of DoT,” she said.

Infrastructure

HRAP’s Mr. Horrigan hoped Philippine tourism’s gross domestic product to reach 20%, similar to its neighboring countries Malaysia and Thailand. For this matter, he said, the key is infrastructure.

“The World Travel and Tourism Council were talking about the Philippines. We have the best beaches, the best people, but they were talking about infrastructure. And so that’s one area that we lacked, meaning international airports,” he shared.

Yet, he said that HRAP is excited about the creation of more international airports, such as the Bulacan International Airport and the Sangley Airport in Cavite.

“A lot of countries have issues with manpower, their beaches are not as nice. We actually have them all. So it’s really infrastructure, which the government is working on right now,” he said.

Key strategies

For the government’s part, connectivity, convenience, and equality are the three key strategies in going about implementing its vision of “establish[ing] a tourism industry that is anchored on Filipino culture, heritage, and identity, which aims to be sustainable, resilient, and competitive in order to transform the Philippines into a tourism powerhouse in Asia,” DoT’s Ms. Frasco said.

Among the government’s initiatives for connectivity is negotiating for more flights not only coming into key destinations but also to lesser-known destinations.

“We have also looked into the maximization of our secondary gateways, looking to expand flights out of our Metro Manila airport into our secondary airports such as Clark, Cebu, Davao International Airport, and the like,” Ms. Frasco said.

And to provide convenience to tourists, the Tourism Secretary said they are setting up tourism information booths throughout the country. The government is also developing a Tourist Life Cycle app and a tourist call center.

Meanwhile, equality meant ensuring that “no destination is left behind in the development of tourism in the country,” said Ms. Frasco. Thus, she said the government is looking into different tourism portfolio, seeking to make the Philippine experience known to the world. This would include festivals, foods, and products of local artisans and makers.

Sustainable tourism

As tourism is expected to get back on track, several destinations in the Philippines would be flocked by Filipino and foreign travelers. But would this affect the environment?

Tourism could cause problems to the environment such as pollution. To ensure that the environment would not be damaged by the surge of tourists in different destinations, the respective local government units (LGUs) have a critical role to play.

“The government has to step in because privately, we cannot control the number of arrivals,” PTAA’s Ms. Chiong said. “The government has to impose restrictions and strict rules to be followed.” And LGUs, she added, should support DoT’s initiatives.

Ms. Frasco of DoT also said that policies on sustainable development serve no purpose if unable to be put in place with LGUs’ cooperation.

Sustainable tourism is “the bedrock of tourism development” under the current administration and is the umbrella of policies established under the National Tourism Development Plan, according to Ms. Frasco.

She also mentioned the proposal for forming a National Sustainable Tourism Council, which would be composed of the Department of the Interior and Local Government, the Department of Environment and Natural Resources, and other related government agencies.

“So it’s a whole-of-government and whole-of-nation approach as far as ensuring that we’re able to institute policies that ensure the longevity of the destination, and to ensure also that we encourage our tourists to leave the destination better than when they found it,” she said.

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Philippines’ New Tourism Campaign Embraces Love for the Country

Peden Doma Bhutia , Skift

June 29th, 2023 at 11:30 PM EDT

In the face of escalating tourism competition across Southeast Asia, Philippines is diving headfirst into the notion that love is what makes the world go around. The archipelago is wholeheartedly capitalizing on this powerful sentiment to propel its tourism sector to new heights.

Peden Doma Bhutia

The Philippines on Tuesday unveiled its new tourism campaign, “Love the Philippines,” marking a departure from its decade-long slogan, “It’s More Fun in the Philippines.”

The rebranding aims to cater to the evolving needs of post-pandemic tourists by emphasizing authentic and immersive experiences.

The shift in branding also reflects a trend among Southeast Asian countries to stand out in the competitive global tourism market.

Fiji in its latest tourism campaign, “Where Happiness Comes Naturally,” also celebrates local people, natural environments, culture, and authentic experiences.

Tourism Recovery in The Philippines

The Philippines, known for enduring the longest partial lockdown globally , faces a delayed recovery as it strives to regain its tourism momentum. In 2019, the country welcomed 8.3 million foreign visitors, with South Korea leading as the primary source market, followed by China and the U.S.

However, post-Covid, the revival of inbound tourism has been moderate. The country eagerly awaits the return of Chinese travelers while grappling with the challenge of high long-haul air ticket costs.

The tourism industry holds significant economic importance in the Philippines, contributing substantially to its gross domestic product (GDP) and job creation. In 2022, the country welcomed 2.65 million visitors, as the tourism sector contributed $25 billion to the GDP and generated 5.35 million jobs.

Love The Philippines Campaign Reshapes Tourism After 11 Years

President Ferdinand Marcos, Jr said the new campaign embodies the love Filipinos have for their country. “What better way to express that love than by directly incorporating it into our tourism campaign.”

The new branding celebrates the country’s people, places, cultures, and cuisines, moving away from a focus solely on fun and adventure, notes Gary Bowerman, director of Check-in Asia, an Asia-focused travel intelligence and research firm.

This approach, he says, aims to appeal to the evolving aspirations of young travelers who seek unique and culturally immersive experiences.

Liz Ortiguera, managing director Asia-Pacific and senior advisor to the CEO of World Travel & Tourism Council, believes the new campaign is a smart move, indicating a shift from a traveler-centric focus to a destination-centric approach.

She cites research, like the Economist Impact report on conscious travel , showing increased interest in sustainable tourism among Asia-Pacific travelers.

The report reveals that Filipino travelers prioritize sustainable travel and aim to positively impact local communities.

Ortiguera sees the campaign as a call to action for all stakeholders to create authentic and sustainable experiences benefiting both travelers and destinations.

Short-Form Video Marketing Vs Tourism Board Campaigns

However, in the age of short-form video marketing, national tourism boards also need to understand the effectiveness of their campaigns.

Jeremy Jauncey, founder and CEO of Beautiful Destinations, emphasizes combining campaigns with short-form video strategies, like the “Love the Philippines” initiative, to engage visually and emotionally stimulated Gen Z travelers.

According to Jauncey, leading tourism boards recognize the importance of social media in destination discovery, where short, vertical videos perform exceptionally well. “By aligning campaigns with social media formats, tourism boards effectively engage and capture attention in the digital realm.”

According to Bowerman campaigns like these serve a dual purpose: catering to the changing preferences of young travelers with authentic experiences and fostering national pride among industry players and the general population.

National tourism boards aim to accentuate local characteristics, promoting citizens as tourism ambassadors and establishing a unique aesthetic that resonates with Asian Gen Z tourists.

“Governments in the region actively promote the idea of citizens becoming tourism ambassadors, actively advocating for their own country. The ultimate goal is to establish a unique aesthetic and cultural platform that resonates with Asian Gen Z tourists,” says Bowerman

More Frequent Campaign Refreshes

The recent launch of a new tourism campaign by the Philippines, after an 11-year hiatus, raises concerns about the effectiveness of such initiatives in an ever-changing travel industry.

Bowerman suggests that more frequent updates to these campaigns may be necessary to keep up with current trends and effectively engage modern travelers.

The previous campaign, “It’s More Fun in the Philippines,” launched in 2012 and was successful in leveraging Filipinos’ active social media presence and the popularity of memes.

Ortiguera acknowledges that this slogan has become deeply ingrained in the region’s tourism branding and has been widely recognized and shared by travelers. “The tagline seamlessly integrated into conversations when travelers shared their positive experiences in the country, making it a widely recognized phrase over the years.”

In 2017, an attempt to replace the slogan with “Experience Philippines” faced criticism due to similarities with a South African advertisement.

Recently, the government received backlash for using the tagline “We give the world our best” in an advertisement featuring nurse May Parsons, who administered the world’s first approved and fully tested Covid-19 vaccine. Tourism Secretary Frasco clarified that this was not the new tourism slogan of the Philippines.

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Tags: asia monthly , philippines , social media , southeast asia , tourism boards , tourism campaigns , tourism marketing , travel videos , wttc

Photo credit: Philippines has unveiled its new tourism campaign, "Love the Philippines," after 11 years. Nikki Navio / Flickr Commons

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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Landslide hits tourism site in Philippines' Cotabato town

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Sunday, 09 Jun 2024

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The entrance leading to the famous Tousuvan Falls was blocked by muds and other debris due to landslide following the heavy downpour on Tuesday afternoon. - Philippine Daily Inquirer File

MAGPET, COTABATO: The barangay government of Bongolanon village in the town of Magpet, Cotabato province has ordered the temporary closure of the main entrance leading to the famous Tousuvan Falls at the foot of Mt. Apo, due to a landslide brought by heavy downpour on Tuesday (June 4) afternoon.

Village chief Suarez Apan said visitors can still visit the 300-meter waterfalls using the road which was traditionally designated only for exit.

Apan said this could heavily affect mobility to and from the site which is sought after for its cold cascading waters.

Apan added that they are working overtime to clear the affected road of thick mud and other debris.

Portion of the slope measuring at least 15 feet high gave in to heavy rains brought by the intense thunderstorms.

Although Apan assured that the site village is still safe to visitors, he clarified that they are not allowing visitors to camp and stay overnight due to unpredictable weather conditions.

Tousuvan Falls is one of the most visited site in the town, attracting an average of 150 people in an ordinary day, climbing to 800 during the weekend.

A fourth of the P25 entrance fee per person goes to the Obo-Manobo tribe.

During Tuesday’s thunderstorm, a 57-year-old resident suffered hypertension as a large marang tree fell on a portion of his house in an evacuation center for families displaced by the 2019 earthquake.

Apan said the elderly is now safe and out of the hospital. - Philippine Daily Inquirer/ANN

Tags / Keywords: Philippines , landslide , tourism site , Cotabato town

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Al Maya Group celebrates Philippines National Day, commemorating strong partnership and support for Filipino products

Al Maya Group, a leading food distribution company in the UAE and GCC, is proud to celebrate Philippines National Day, honoring the strong bond between the Philippines and Al Maya Group. The company has been a long-standing supporter of Filipino products and has been actively promoting them through its supermarket chain.

Al Maya Group has a long history of partnering with the Philippines, dating back to the early days of its operations. The group has consistently demonstrated its commitment to the Filipino community by providing a platform for Filipino products to reach a wider audience in the region. This partnership has been instrumental in promoting cultural exchange and economic cooperation between the two nations.

“We are honored to celebrate Philippines National Day and recognize the significant contributions of the Filipino community to our region,” said Kamal Vachani, Group Director & Partner at Al Maya Group. “Our partnership with the Philippines has been a key factor in our success, and we are committed to continuing this collaboration to promote the rich cultural heritage and products of the Philippines,” Mr. Kamal added.

Al Maya Group’s supermarkets have been a popular destination for Filipino products, offering a wide range of FMCG items from the Philippines. The group’s commitment to promoting Filipino products has been recognized by the Philippine government and the Filipino community, who appreciate the support and recognition given to their products.

The Philippine Ambassador to the UAE, His Excellency H.E. Mr. Alfonso Ferdinand A. Ver, has commended Al Maya Supermarket for its efforts in promoting Filipino products, stating, “We are grateful for the support and partnership of Al Maya Group in promoting Filipino products in the UAE and GCC. Their commitment to cultural exchange and economic cooperation is truly commendable,” Mr. Kamal Vachani, Group Director, Partner, Al Maya Group said.

Al Maya Group’s partnership with the Philippines is a testament to the strong bond between the two nations. The group’s commitment to promoting Filipino products and supporting the Filipino community is a key factor in the success of their partnership.

“We are proud to be a part of this partnership and look forward to continuing our support for Filipino products and the Filipino community,” added Mr. Kamal Vachani.

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