CEBU’S hotel and tourism sector is intensifying efforts to recover international visitor traffic as Korean arrivals—once the island’s top tourism driver—continue to decline, dampening occupancy rates and hurting a wide range of ancillary businesses.
“It’s true and the entire ecosystem is feeling the crunch brought about by this decline in Korean arrivals,” said Mia Singson-Leon, president of Hotel, Resort and Restaurant Association of Cebu Inc. (HRRACI), in a statement.
However, she said that HRRACI has been leading initiatives since last year to reverse the slowdown, working closely with industry members and both public and private sector partners to diversify tourist markets beyond Korea.
The Philippine News Agency in April reported that the weakening Korean won is expected to impact the country’s inbound travel in 2025, citing Leechiu Property Consultants (LPC).
In the first quarter of 2025, the country received 395,059 visitors from South Korea, down by 13.86 percent from 458,619 last year.
LPC director for Hotels, Tourism and Leisure Alfred Lay said the first quarter figures signaled that the tourism sector is “plateauing” in terms of increasing international visitor arrivals.
“A lot of this is not necessarily in our control —the areas that are out of our control are things like our top source market, South Korea,” he said.
Singson-Leon said HRRACI is targeting travelers from Taiwan, Japan, Singapore, Australia, Europe, the U.S. and, most recently, India—now seen as a high-potential source market following the Philippines’ move to grant visa-free entry to Indian nationals. Indian nationals can visit the Philippines visa-free for a short period, specifically for 14 days, for tourism purposes.
The drop in Korean visitors has had a ripple effect across Cebu’s tourism ecosystem, impacting hotels, restaurants, transport services, tour guides and retail businesses. Singson-Leon said the push to tap broader international markets is critical to bringing overall arrivals back to pre-pandemic levels.
Moreover, HRRACI is also actively prompting Cebu as the preferred meetings, incentives, conventions and exhibitions (Mice) destination.
“As partners also of the Cebu Mice Alliance, we are also working on organizing, and at the same time strengthening the Mice capabilities of Cebu island,” she said.
The recent opening of several large-scale venues is expected to boost Cebu’s competitiveness in hosting major domestic and international business events.
Moreover, beyond destination marketing, HRRACI is also promoting sustainable tourism offerings that highlight Cebu’s unique cultural heritage, modern attractions, culinary scene and natural beauty—alongside its reputation for safety and hospitality.
The group is also banking on its “Filipino brand of service” to help the island differentiate itself amid intensifying global tourism competition.
In December 2024, then HRRAC president Alfred Reyes said Cebu was losing a significant share of the Korean market to Bohol, citing the latter’s growing number of direct flights. He noted that tourists arriving in Panglao Island enjoy easier access to beaches without the traffic congestion typically experienced in Cebu. / KOC