THE Philippine inbound tourism sector is pinning its recovery hopes on digital transformation, new infrastructure and stronger regional connectivity as it works to regain competitiveness within Southeast Asia by 2026, according to industry leaders.
Alice Queblatin, president of the Cebu Alliance of Tour Operations Specialists, said the Philippines has fallen behind regional peers in attracting international visitors, even as outbound travel by Filipinos to neighboring countries continues to surge.
“We were once among the top destinations, but we have slid near the bottom in recent rankings,” Queblatin. She cited data from the Vietnam Tourism Authority showing that Philippine tourist arrivals to Vietnam rose by 85 percent, making Filipinos one of Vietnam’s strongest source markets.
Rather than dwell on lost ground, Queblatin said the industry is shifting focus toward sustainability, leaner operations and digitalization.
Inbound tour operators are increasingly adopting online reservation systems, digital payments, AI-powered tools and automated processes to align with the expectations of international travelers and to reduce operating costs.
“Digitalization is no longer optional. Our clients abroad are already fully digital and we have to level up to compete,” she said, noting that Vietnam and other Asean destinations have long embraced end-to-end digital tourism systems.
Cebu is expected to play a central role in the recovery, supported by major infrastructure investments.
The opening of the Mactan Expo, which can host up to 7,000 participants, will allow the province to accommodate large-scale international meetings and trade events, starting with the Asean Tourism Forum, which opened the Philippines’ hosting of the Asean Summit last January.
Queblatin also pointed to ongoing coastal infrastructure projects, new arenas and the addition of around 1,000 hotel rooms across Cebu and Lapu-Lapu City as indicators of investor confidence in inbound tourism’s rebound.
“Investments are coming in because stakeholders see the recovery happening soon,” she said.
On the domestic front, tour operators expect strong demand to continue in destinations such as Bohol, Palawan and Siargao, driven by improved air connectivity and niche travel markets.
Inbound, outbound 2025
Cebu-based hotels and resorts are also offering more competitive rates to capture domestic travelers, some pricing rooms significantly below published rates.
To help stimulate travel demand, tourism stakeholders in Cebu are staging a three-day expo aimed at boosting travel activity and visitor spending into and out of the country.
The 10th edition of the Cebu Travel Catalogue International, themed “Wander Beyond Borders,” will run from Feb. 13 to 15 at Ayala Center Cebu. The event is expected to offer discounted travel packages and promotional deals as the Philippines pushes for stronger tourism-led growth.
Data from the Department of Tourism showed that 7.64 million Filipinos traveled overseas in 2025, up 11.59 percent from 6.9 million in 2024, underscoring robust outbound travel demand.
Hong Kong remained the top destination, with 950,665 Filipino travelers last year, up 7.21 percent. This was followed by Japan with 852,643 travelers, up 8.04 percent; Singapore with 714,947, down 5.83 percent; Taiwan with 569,867, up 34.38 percent; and Thailand with 536,317, up 32.08 percent.
On the inbound side, the Philippines welcomed 6.5 million foreign arrivals in 2025, a 0.76 percent increase year on year. Top source markets included South Korea, the United States of America, Japan, Australia and Canada, highlighting continued recovery and diversification of visitor sources.
Compete on experience
Despite pricing challenges compared with regional competitors, Queblatin said the Philippines must compete on experience rather than cost alone.
“We may not always be the cheapest destination, but the value of the experience is different,” she said. “That is where we remain strong.”
She added that stronger outbound travel and airline connectivity can also support inbound tourism by opening more routes and markets into Cebu and the rest of the country.
“With better connectivity, inbound traffic will follow,” she said. / KOC