Thailand’s Tourism Surge Continues, While Philippines Lags Behind

Thailand is experiencing a robust tourism recovery, bolstered by visitors from China, India, Russia, Malaysia, and South Korea. This success contrasts with the Philippines, which continues to struggle to regain pre-pandemic tourism levels despite strong domestic tourism spending. The disparity highlights varying recovery rates across Southeast Asia and underscores the importance of strategic tourism policies and infrastructure development.

Thailand’s Record-Breaking Start to 2026

In early 2026, Thailand welcomed an extraordinary 2.6 million foreign visitors in the first 25 days of January, marking a record-breaking start to the year according to Travel and Tour World. This surge is driven by key source markets including China, India, Malaysia, Russia, and South Korea. The country generated an impressive 129.9 billion baht (approximately US$4.1 billion) in tourism revenue during this period.

Malaysia Emerges as a Top Tourist Source

A significant shift has occurred in Thailand’s tourism landscape, with Malaysia surpassing China as the leading source of tourists. As of early June 2025, over 2.04 million Malaysian visitors had traveled to Thailand, exceeding China’s 2.02 million as reported by Places and Foods. This marks the first time in 13 years that Malaysia has held this position. Factors contributing to this include Malaysia’s proximity to Thailand, frequent short trips by Malaysians, favorable exchange rates, and the perception of Thailand offering good value for money.

Philippines Faces Tourism Challenges

While Thailand thrives, the Philippines is facing challenges in reclaiming its pre-pandemic visitor numbers. Despite a broader regional tourism rebound, the Philippines has struggled to regain its footing. In 2019, the country recorded 526,832 intra-Asean visitors, significantly lower than Malaysia’s 17.9 million and Thailand’s 10.8 million. By 2024, the Philippines had only reached around 484,465 intra-Asean visitors.

In the first 11 months of 2025, the Philippines recorded 5.24 million visitors, 37% lower than in 2019. Vietnam, in contrast, reached 22 million arrivals, surpassing its pre-pandemic performance.

Budget Constraints and Infrastructure Gaps

One major factor hindering the Philippines’ tourism recovery is its relatively small tourism promotion budget. In 2023, the budget was P1.3 billion, reduced to P200 million in 2024, and further reduced to P100 million in 2025. This is significantly less than the budgets of competing countries. Infrastructure development in the Philippines has not kept pace with the growing demand for tourism services.

Domestic Tourism Remains Strong

Despite the challenges in international tourism, domestic tourism in the Philippines remains relatively strong. In 2024, domestic tourism spending reached $63.4 billion, accounting for 35.8% of the region’s total domestic tourism expenditure. The country generated over P760 billion in tourism revenue in 2024.

Looking Ahead

Thailand is poised to welcome 35 million international tourists in 2026, primarily from China, India, Russia, Malaysia, and South Korea as reported by Travel Trade Today. For the Philippines to narrow the gap with its neighbors, addressing structural challenges within its tourism sector will be crucial. This includes increasing tourism promotion budgets, improving infrastructure, and addressing travel costs. Tourism remains a critical pillar of the Philippine economy, contributing $91.8 billion to the nation’s GDP and providing approximately 11.22 million jobs in 2024.