'Economic SOS'

However, analysts suggest the policy shift is less of a celebratory gift and more of an economic SOS. For the Philippines' struggling tourism sector, the visa-free push is an emergency measure to stop a worrying decline.

Experts note that in the post-pandemic era, reviving tourism has become a high-stakes race across Southeast Asia — one where the Philippines is trailing.

Vietnam welcomed 5.3 million Chinese tourists in 2025, a year-on-year surge of 41.3 percent. Malaysia saw similarly robust interest, drawing 3.28 million Chinese visitors in the first eight months of 2025 alone, according to Xinhua News Agency.

The data reveal a cutthroat battle for the Chinese travelers. The international trade publication Travel and Tour World was blunt in its assessment, labeling the Philippines a laggard in the regional recovery.

This broader revival, and the central role Chinese spending plays in it, have forced Manila to reassess its strategy.

In 2019, China was the Philippines' second-largest source of visitors, with 1.74 million arrivals. But by the end of December 2025, China ranked only sixth, with just over 262,000 tourists coming to the Philippines — a mere 15 percent of its pre-pandemic peak, according to the Philippine Daily Inquirer.

Verna Esmeralda Buensuceso, Philippine undersecretary of tourism, speaking at a recent ASEAN tourism forum, acknowledged that China remains a cornerstone market despite geopolitical challenges.

Peng Han, chief analyst at the tourism industry outlet Travel Daily, believes the country is facing a crisis of competitiveness.

Despite boasting world-class reefs, Peng said it will be difficult for the Philippines to match the sheer accessibility and popularity of Thailand or Vietnam in the near future.