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The case for letting Chinese tourists back in
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The case for letting Chinese tourists back in

April Lee Tan, CFA

The Department of Foreign Affairs (DFA) recently announced that, starting Jan. 16, 2026, Chinese nationals will be allowed to enter the Philippines visa-free for up to 14 days for tourism or business purposes.

While Filipinos understandably hold mixed views toward China, from an economic standpoint, it is difficult to ignore the role Chinese tourists play in the country’s tourism recovery.

Tourism remains one of the Philippines’ most attractive growth sectors. Beyond the country’s natural beauty and the well-known hospitality of Filipinos, the private sector has already begun upgrading airport infrastructure.

The passage of Republic Act No. 12252 last year further strengthens the investment case, as it allows foreign investors to lease private land for up to 99 years, paving the way for more resort and tourism-related developments.

Despite these tailwinds, the government still needs to do more to bring foreign tourists back.

From a peak of 8.3 million arrivals in 2019, total foreign tourist arrivals reached only 5.95 million last year, well below prepandemic levels.

A major drag on the industry has been the collapse in Chinese tourist arrivals.

In 2019, China was the Philippines’ second-largest source of foreign visitors, accounting for 1.7 million arrivals or 21 percent of the total.

More importantly, Chinese tourists were the fastest-growing segment, with arrivals expanding at a compounded annual growth rate of 3 percent from 2014 to 2019.

By contrast, during the first 11 months of last year, Chinese arrivals reached only around 250,000—less than 5 percent of total tourist arrivals.

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This decline coincided with the government’s decision to indefinitely suspend electronic visas for Chinese citizens in December 2023.

The move made travel to the Philippines significantly less convenient, especially when compared with most Association of Southeast Asian Nations countries that allow Chinese tourists visa-free entry.

In a highly competitive regional tourism market, the Philippines’ stricter visa regime became a clear deterrent.

Allowing visa-free entry for Chinese nationals is therefore a step in the right direction.

Whether this policy shift will be enough to reverse the downtrend remains to be seen, but it is a necessary move if the Philippines hopes to regain lost ground and unlock the tourism sector’s full growth potential.

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