Friday, July 11, 2025
The Philippines is looking at expanding cross-border air services in line with its ambitious tourism development plan to increase inbound tourism.
Focusing specifically on major markets like Japan, India, Thailand, and the United States, the government is preparing for air service negotiations in the pursuit of enhancing connectivity and growing the number of foreign visit arrivals to the archipelago.
The strategic action is part of the Philippines’ wider tourism development plan and will materialize during 2025.
It is being managed by the government in close consultations with different stakeholders to implement it, according to Carmelo Arcilla, executive director of the Civil Aeronautics Board (CAB). He further stated that the goal is to gain wider access for foreign tourists now that the Philippines is facing more competition in the tourism industry from its neighbors in Southeast Asia.
Building Relationship with Japan
Japan has been ages one of the Philippines’ leading sources of tourists, with Japanese tourists flooding various areas including Boracay, Cebu, Davao, and Metro Manila. Japan led the growth in tourist arrival from the planned countries during the first quarter of 2025, registering 18.14% year-on-year growth, totaling 132,500 Japanese tourists in the Philippines, according to the Department of Tourism (DOT).
The government is keen to build on this momentum by negotiating enhanced air service agreements with Japan. These talks are expected to focus on increasing the frequency of flights between major Japanese cities, such as Tokyo, Osaka, and Fukuoka, and popular Philippine destinations like Manila, Boracay, and Cebu. As part of this initiative, the Philippines will also explore opening new direct routes that make travel between the two countries more seamless and convenient.
Japan is one of the profitable markets for Philippine tourism because of its nearness as well as the high spending power of Japanese tourists. The market for high-end services, namely high-end resorts and customized travel services, will increase as more Japanese tourists become lured to experience the different offerings of the country.
Engaging with India: Opportunities and Challenges
India, whose middle class is large and increasingly growing, is a major opportunity for the Philippines. Yet, even with the promise of the country, Indian tourists to the Philippines have yet to achieve full potential. Statistics from the Department of Tourism reflect India had shown a decline in the number of tourists to the Philippines, dropping by 2.08% to 29,456 during the first quarter of 2025.
One of the key challenges for Indian tourists is the lack of direct air connectivity. To address this, the Philippine government is engaging in talks to establish or expand direct flight routes between India and the Philippines. Additionally, the country is considering the implementation of visa facilitation measures, including an e-Visa system for Indian nationals, which could make travel to the Philippines more accessible.
With India’s booming middle class and growing interest in international travel, the Philippines is in a strong position to capture a larger share of this market, provided it can remove some of the logistical hurdles. This is particularly important as the Indian market is expected to grow rapidly in the coming years, with more Indian tourists seeking destinations that offer rich cultural experiences, beach holidays, and adventure tourism—all of which the Philippines can offer.
Partnering with Thailand: Fostering Regional Connectivity
Thailand and the Philippines are key players in the tourism landscape of Southeast Asia, and the two nations have many points in common concerning culture and natural beauty. While the Philippines has yet to experience major gains in Thai arrivals, down 0.33% in the first quarter of 2025, the government is nevertheless dedicated to growing Thai travel.
The Philippines and Thailand understand the value of air connectivity to spur tourism and economic development. In the negotiations, the two nations are considering the potential to add more flights from key cities in Thailand, including Bangkok and Chiang Mai, to the Philippines. The two nations have much to gain from one another vis-à-vis mutual tourism, and increased connectivity would provide more Thai tourists to visit Philippine sites, as well as spur more Filipino tourists to visit Thailand.
This Philippine-Thai partnership also entails the development of bilateral advertising campaigns to showcase the entire Southeast Asia region. The Philippines and Thailand would further explore cross-border initiatives to promote their shared cultural and natural heritage and encourage tourists from either side to explore neighboring areas.
Exploring Opportunities with the United States
The United States remains as one of the Philippines’ leading international tourist sources. For the first quarter of 2025, U.S. tourists grew by 8.99%, with 331,049 tourists visiting the Philippines. This increase underscores the brisk and steady demand for Philippine tourism from American tourists.
The Philippines is now in negotiations to expand its air service agreements with the U.S. to cope with the surging demand. This would mean direct flights to and from major American cities like Los Angeles, San Francisco, and New York, and would make it easier for American tourists to travel to the Philippines. It will also aid the growth in air routes for the Filipino expats and business travelers who continuously cross the U.S. and the Philippines.
The United States is one of the Philippines’ most important markets, and American tourists usually come to the Philippines in search of relaxation, adventure, and culture. Direct flights and improved air connectivity would continue to solidify the relationship between the two countries and spur tourism development.
The Role of the Civil Aeronautics Board The CAB is integral to these air service negotiations. Being the Philippine government body tasked to regulate and promote air transport in the Philippines, the CAB shall collaborate with the Department of Tourism, the Department of Transportation, and other government institutions in ensuring these negotiations bear fruit. Their objective is to achieve agreements to enhance access to the Philippines at the same time ensuring safety and adherence to international standards in aviation. The Philippines’ efforts to pursue air service negotiations with Japan, India, Thailand, and the United States are part of the Philippines’ larger tourism plan for 2025 and beyond. Through increased connectivity with important markets, the Philippines seeks to attract additional foreign tourists, spur economic growth, and more effectively compete with its regional neighbors. With greater air connectivity coming on line, the Philippines will be an increasingly desirable destination for global travelers.