In 2025, the weakening of the South Korean won is expected to have a big effect on the number of visitors coming to the Philippines. The South Korean won fell to its lowest level in over 16 years on April 8, 2025, just after the Trump administration announced new “reciprocal tariffs,” sparking concerns about a global trade war. This drop in the value of the won means that many South Koreans may have less money to spend on traveling abroad.
Alfred Lay, who works at Leechiu Property Consultants (LPC) and focuses on hotels, tourism, and leisure, explained that this situation is beyond the control of the Philippines. He mentioned that South Korea has been one of the top countries sending tourists to the Philippines, but the number of visitors from South Korea has decreased recently. In fact, during the first three months of 2025, the Philippines saw a 13.86% drop in visitors from South Korea, going from 458,619 visitors last year to just 395,059 this year. This is a big change because South Koreans make up about 24% of all visitors to the Philippines.
South Korea has been a very important source of tourists for the Philippines, helping the country recover after the pandemic. So, seeing such a big drop in visitors from South Korea is concerning. Lay says that the Philippines needs to think of ways to address this drop and find solutions to encourage more tourists to come, especially from countries like South Korea.
In addition to the decrease in visitors from South Korea, there’s also a big change in the countries sending tourists to the Philippines. For the first time since 2008, China is no longer among the top five countries sending visitors to the Philippines. This marks a significant shift in tourism patterns.
Despite the challenges with South Korea and China, Lay believes that the Philippines will still see about 6 million visitors by the end of 2025, which is about the same number of visitors as last year. He believes that without major changes, this number won’t increase, but he notes that making it easier for people to get visas and reducing travel barriers could help improve the situation.
Some countries, like the United States, Japan, Australia, and Canada, have seen an increase in tourists visiting the Philippines. The number of visitors from the U.S. has grown by 8 to 19%, and Lay expects this trend to continue. Even though there are concerns in the U.S. about tariffs and air traffic, the American market remains strong. Many Americans travel to the Philippines to visit family or to reunite, and even during the pandemic, they continued to come.
As for the impact of the Trump administration’s tariffs, it’s still too early to know how they will affect global travel. Lay says that while it’s uncertain, it’s something to watch in the coming months.
In terms of hotels, the performance of the country’s hotel industry is steady. The hotel occupancy rate in 2024 was 60%, which is close to the average for Southeast Asia. While this shows that the tourism industry is recovering, there’s still a need for a “catalyst” to help the hotel sector grow even more. The high-end hotels, in particular, are doing well because travelers are willing to pay more for quality accommodations.
The Department of Tourism (DOT) has been working hard to attract more high-spending tourists, despite missing its target of 7.7 million visitors in 2024. However, the country still managed to welcome 5.94 million visitors in 2024, a 9.15% increase from 2023. This was a good result, and the DOT also saw an all-time high in tourism revenue of PHP 760.5 billion, up by 9.04% from the previous year. Although the number of visitors from China has dropped significantly, and there were some challenges with electronic visas, the DOT is still focused on bringing in more tourists and boosting the country’s tourism industry.
In conclusion, while the weakening of the Korean won and other factors may slow down tourism growth, the Philippines remains a popular destination for many international travelers. It’s important for the country to continue working on strategies to encourage more visitors and support its growing tourism industry.
