Good news for travellers heading to the Philippines. For the last three months, the local currency, the Filipino Peso is on declining. On Monday, the Peso hit a 11-year low, closing at P50.70 to one dollar. According to records over the currency’s movement, the peso is now close to the parity it reached on September 1, 2006 at P50.73 to one dollar. The peso first passed the psychological P50 to one dollar level at the end of November last year.
Philippines local currency depreciated by 5.35 percent against the US dollar in 2016. Since the beginning of the year, the Peso is the worst performing Asian currency to the dollar, followed by the Japanese Yen and the Malaysian Ringgit. Experts believe that the currency could reach P51.20 to 52.00 Peso by year-end.
Weak Peso likely to stimulate growing tourist arrivals
The declining value in the Peso is likely to boost arrivals to the country. So far, in the first five months of 2017, the archipelago welcomed 2,882,737 foreign visitors, up by 14.4%. Another milestone was achieved by the industry as month to month arrivals has surpassed the 500,000 visitor volume for the first five months of the year.
The biggest volume was recorded in the month of January while the highest growth was registered in April.Countries from Asia represent the largest market share at almost 61% although numbers of travellers from other ASEAN countries remain rather small. ASEAN tourists generated only 203,400 arrivals, a share of only 7% in total arrivals.
Beside Asia, Philippines most important markets by continents are the Americas with a total of 534,012 arrivals, a share of 18.52%, followed by Europe with 324,618 arrivals, a market share of 11.26%. Korea continues to be Philippines’ top source of arrivals at 686,630 arrivals for 2017. Korea represents alone close to 24% of all foreign tourists. The USA was the second largest market source with 428,767 visitors, while China continues to take market share. With a growth of 36.3%, China total arrivals reached from January to May 388,896 arrivals. Another sharp growing market is Taiwan, up by 21% with 108,000 arrivals.
Europe three top markets are the UK (82,412 arrivals), Germany (43,484 arrivals) and France (35,953 arrivals). With 112,814 arrivals, Australia is the fifth largest source market for the Philippines.