Boracay recovery faces headwinds as Korean arrivals slow, competition rises in ASEAN

By: John Dela Cruz

MANILA, Philippines – Boracay’s gradual tourism recovery is encountering fresh challenges as arrivals from key international markets soften amid intensifying competition in the region.

Latest data from the Department of Tourism (DOT) show that South Korea, which remains the country’s top source of foreign visitors, sent 395,059 tourists to the Philippines during the first quarter of 2025. However, this represents a 13.9% decline compared to the same period last year.

For Boracay, which relies heavily on South Korean tourists, the slowdown adds uncertainty to its post-pandemic rebound. The island has historically attracted significant Korean travel volume, supporting the hospitality sector, water activities, and related services.

In contrast, other Southeast Asian destinations continue to capture a growing share of the Korean outbound market. Vietnam, in particular, welcomed approximately 1.3 million South Korean visitors in the first quarter alone — driven by more relaxed visa rules, cost competitiveness, and a consistently strong perception of safety and ease of travel.

“The recovery is happening, but market dynamics are shifting faster than expected,” said one hotel operator in Boracay. “Many travelers now have more options, and destinations like Vietnam are becoming increasingly competitive.”

The Philippines is also contending with declining arrivals from China, traditionally its second largest market. The DOT reported a 33.7% year-on-year drop in Chinese arrivals for the first quarter of 2025 — the lowest level seen in nearly two decades. Ongoing travel restrictions, economic adjustments in China, and geopolitical factors continue to affect outbound travel to the Philippines.

Despite these setbacks, domestic travel and emerging markets have provided some support to Boracay’s tourism sector. Industry leaders are also banking on infrastructure improvements, expanded domestic connectivity, and new tourism product offerings to help sustain recovery efforts.

Policymakers and tourism stakeholders have acknowledged the need for a more adaptive strategy to keep pace with regional competition. Among the priority areas under review are visa facilitation, safety assurance, targeted marketing, and pricing competitiveness.

“Boracay remains a world-class destination, but we are operating in a much more competitive environment,” one tourism consultant said. “Sustaining long-term recovery will require addressing the evolving expectations of international travelers while leveraging the strength of our domestic market.”

As global tourism continues to recalibrate in the post-pandemic era, Boracay’s recovery story remains closely watched — not only as a key barometer for the country’s tourism sector, but also as a test of its competitiveness in an increasingly crowded regional market.