Following an excellent performance in 2006, the Philippines Department of Tourism forecasts 12% growth in international arrivals in 2007 to 3.2 million tourists, and it aims for 5 million foreign visitors by 2010.

In 2006, international arrivals increased by 8.4% to 2.84 million. According to the Undersecretary of State for Tourism, Oscar Palabyab, the healthy growth in 2006 was a fine achievement. “Natural disasters and travel advisories have obviously had less impact on our tourism development than some had forecast,” he says.

“Since 2003, foreign arrivals to the country have risen by almost 50%.” UNWTO agrees that prospects for the Philippines are good, and says the country will continue to reap the benefit of growing international travel to the Asia Pacific region.

Over the last three years, there have been major changes in the Philippines' top source markets: South Korea has overtaken the USA and Japan as the country's top market with 572,133 visitors in 2006, up by 17% over 2005. China is now the third largest incoming market with 133,585 visitors, a 24% increase over 2005. Strong growth was also recorded from Australia - breaking the 100,000 visitors mark for the first time in 2006 - as well from Malaysia and Singapore, thanks largely to an increase in low-cost flights.

“We are speeding up the construction of new hotels, expanding roads and upgrading airport facilities,” says Palabyab. “We are especially targeting the central Philippines for tourism development - destinations such as Boraca, Bohol, Cebu and Palawan which are ideal for beach tourism and which have many natural and historic attractions.”

The Philippines is also pushing for closer connections within the BIMP-EAGA area - which comprises the islands of Borneo (Brunei-Indonesia-Malaysia), Sulawesi (Indonesia) and Mindanao (Philippines) - since this region has great potential for both ecotourism and beach tourism.