Tourism secretary Ace Durano said yesterday that tourist arrivals reached 858,224 for the first quarter of the year, up 8.5 percent from last year.

Tourist spending amounted to US$ 1.02 billion. .

Koreans led the arrivals at 175,000 or 20 percent of the total, followed by those coming from the US including homecoming Filipinos at 19 percent; followed by the Japanese, 12 percent and China at six percent.

Visitors from China chalked up the highest increase of arrivals at 33 percent boosted by direct flights between Chinese cities and top tourist destinations like Cebu and Kalibo. The Philippines Airlines currently offers direct flights to Chengdu and Chongqing. Direct charter flights are also underway from Shanghai to Kalibo.

The excitement level expressed by the Chinese market can be maintained through greater marketing activities and encouraging higher spending.

Durano said that for this year, the Department of Tourism will start selling the country as shopping mecca and as a good site for a second home.

Tourist arrivals from Australia and New Zealand remained robust in the first quarter as it grew by 13 percent and 12 percent, respectively. These markets have high potential for growth in the adventure and family oriented travelers.

Hong Kong also enjoyed positive results as visitor volume went up by 16 percent to 31,344 arrivals. This feat can be attributed to the introduction of new products targeting adventure travelers, combined with competitive prices and aggressive campaigns.

Likewise, Taiwan showed a turnaround with 3.4 percent growth, after sluggishness in 2006 and 2007. Working with new travel agents outside Taipei served as a key driver for this achievement.

Singapore and Malaysia, two of the biggest source markets in ASEAN, showed a six percent increase. The development of destination packages for Davao, Boracay, Cebu and Baguio in partnership with low cost carriers has expanded the tourist experiences available in the country.

The European market continues to experience high growth of arrivals. Length of stay and spending levels rose, despite accessibility issues, safety and health concerns, and competition from similar tropical destinations.

France and Russia posted the highest increase at 30 percent, followed by United Kingdom with 26 percent. The Scandinavian countries of Denmark, Finland, Norway and Sweden reflect double digit growth.

The launch of the Adventure Philippines campaign in London and at the Internationale Tourismus Borse (ITB) in March has positioned the country as an outstanding adventure destination for the European traveler.

The French survivor reality show, Koh-Lanta, has shot another series in the country featuring Caramoan in Camarines Sur. To be shown from July to August in various European countries and French-speaking nations, the Philippines is the only destination to appear in two consecutive seasons.

While tourist arrivals from Japan dropped by four percent, the daily spending of Japanese tourists grew by 4.6 percent. This shows that the country is attracting quality visitors who engage a lot in entertainment, shopping and leisure activities.

A healthy domestic economy and an increasing appetite for overseas travel have further boosted outbound traffic. Korean arrivals grew by a modest two percent from 171,716 in 2007 to 175,147 in the first quarter of 2008. Daily expenditure also expanded by a margin of one percent against the previous period.

The DOT's success in Korea is largely driven by the ability to promote a wide range of products such as golf, diving, honeymoon, English learning programs and others.