In the past three years, visitor arrivals in the Philippines grew at an average of 14 percent per year, greater than the growth rates registered by ASEAN countries and surpassing the projected 7 percent increase of tourist traffic in the Asia-Pacific region by the United Nations World Tourism Organization (UNWTO).

On the average visitors increase 300,000 per year with 2004 as the best year.

In 2005, arrivals hit an all time high of 2.62 million, up 14 percent. Last year total arrivals reached 2.84 million, up 8.4 percent notwithstanding the travel advisories issued by the US, Austrailia, Canada, New Zealand and the United Kingdom.

Over half a million Koreans visited the country last year over overtaking the Americans and the Japanese. Visitors from China also rose 24 percent .

Australians have breached the 100,000 mark last year and will surpass the number of tourists from Hong Kong and Taiwan by 2010.

Arrivals from Singapore rose 17 percent and Malaysia, 23 percent. After the government approved flights of low cost carriers from these countries, more tourists are expected.

International airlines flying to the Philippines are experiencing high load factor of more than 70 percent. In some instances, travelers experience difficulty booking with Korean Air and Asiana Airlines as their load factor hit 88 and 90 percent, respectively.

In 2005, Philippine Airlines (PAL) resumed flights to Beijing complementing the highly profitable daily flights in Shanghai. In 2006, PAL acquired new and modern aircrafts, expanding operations in the Asia Pacific.

In July 2006, China Southern Airlines likewise resumed direct flights from Guangzhou to Manila in addition to its Xiamen and Beijing routes. Airline officials are now discussing expansion of flight operations including direct flights from Shanghai to cater to the growing outbound travel in the region.

Negotiations with Shanghai Airlines and Vladivostok Airlines started in 2006 for these airlines to establish regular flights to the Philippines.

Tiger Asia and Jet Star operations in the Philippines have expanded since 2004. These low cost carriers have facilitated movement of tourists from Singapore and Malaysia.

Cebu Pacific expanded their international operations and is now flying regularly to Hong Kong, Singapore, Kuala Lumpur, Inchon and Bangkok, making them the country’s first international low cost carrier.

The occupancy rate of hotels in Metro Manila also grew at an average of six (6) percent per annum from 2004-2006.

The De Luxe and First Class hotels garnered the lion’s share, achieving more than 70 percent occupancy. Standard hotels grew at 5 percent per annum from 2004-2006.

Data gathered in October 2006 showed that 1,346 rooms were being built in Boracay Island while Cebu and Mactan will have an additional 1,264 rooms to accommodate the increase in demand.

Current hotel developments include the 616-room Imperial Palace Waterpark Resort and Spa, a Korean-Filipino venture which broke ground in July 2006 in Maribago, Lapu-Lapu City as well as the Shangri-la Resort Spa with 273 rooms and, the Discovery Suites with 100 rooms, both in Boracay Island.

Since 2004, the Department of Tourism has focused marketing to China, Japan, Korea and Filipino Americans.

China was given priority because of its untapped potential, robust growth in outbound travelers, and the proximity to our country. Within the first year of implementing the China Strategy, monthly arrivals quadrupled with a 171 percent growth rate recorded by 2005.

Another major initiative centered on Japan, the third most productive tourist market.

Marketing efforts were devised to reverse the trend of a stagnating growth and decreasing average tourist expenditure. Key segments were identified, such as independent women and SCUBA divers which have a keen inclination to visit the Philippines and spend higher. The DOT activated these segments through a variety of trade initiatives and market channels.