China to vault as 2nd largest market for tourists this year

MANILA, Philippines - China is projected to overtake the US market as the second largest source of foreign arrivals this year, as the number of Chinese tourists is expected to further grow especially with the approval of the Visa Upon Arrival (VUA)  policy.

“China will overtake the US, this year,” Department of Tourism (DOT) Secretary Wanda Tulfo-Teo said in a press briefing yesterday.

In 2016, the Philippines recorded a 37.65-percent rise in Chinese arrivals to 675,663 from 454,962 in 2015, following President Duterte’s state visit to China in mid-October 2016 and the lifting of Beijing’s travel restriction against the Philippines.

As of the first half of 2017, Chinese tourist arrivals surged 33.44 percent with 454,962 visitors from 340,958 in the same period last year, making it the third largest source market of foreign arrivals. China currently accounts for 13.55 percent of the total 3,357,591 foreign tourists that entered the country in the first six months of 2017.

South Korea remained as the top tourist market for the country, posting 795,085 arrivals, representing 23.68 percent share of total inbound traffic in the first half of the year, followed by the US with 513,443 (15.29 percent).

“But in terms of the Chinese market this year, they’ve already emerged as the third biggest source market and there is no way that will not leapfrog to the second place,” Tourism Undersecretary Rolando Cañizal said.

Teo emphasized the significant growth of Chinese arrivals this year, even without the implementation of the Visa Upon Arrival policy.

“This particular policy will be able to allow us to reach our target of at least one million Chinese tourists by the end of this year as promised by the Chinese ambassador to the secretary in an early meeting this year,” Cañizal said.

Last week, the justice department issued a circular granting the VUA option to Chinese nationals in a bid to attract more Chinese tourists and investors into the country.

“We also believe this will serve as an incentive to Chinese guests who may be prospective investors wanting to prove that the country is not only a safe haven for tourists but also a lucrative business location as well,” Teo earlier said

Cañizal emphasized that the VUA option is applicable not only to airport arrivals, but also those made through seaports.

He added that the recently approved policy will be tested later this month, with the arrival of the Genting Group carrying more than 3,000 cruise passengers from Xiamen in China.

Apart from Chinese nationals, Cañizal said the tourism department is looking to extend the VUA policy to other markets such as India.

“Eventually we are looking at expanding this visa upon arrival to other markets like for example, we’re discussing with the India market,” Cañizal said.

The tourism undersecretary cited the large population of India as potential driver of tourist arrivals growth.