The Philippine government is set to transform one of country’s most visited beaches into a luxury cruise destination, signaling a shift in the country’s tourism strategy.

The Philippine Ports Authority (PPA) has announced plans for a P706-million-peso cruise terminal in Puerto Galera, a famou town in Oriental Mindoro known for its pristine beaches and world-class diving spots.

The project is expected to attract high-spending touris, which has historically struggled to compete with neighboring countries like Thailand and Singapore in the luxury tourism segment.

“This development comes at a crucial time for Philippine tourism,” says an official of the Department of Tourism (DOT). “The country is positioning itself as a premium destination in Asia, moving away from its traditional backpacker market.”

The Philippines’ recent accolades in the cruise industry appear to support this strategy.

The country was named Asia’s Best Cruise Destination in 2023 and secured the Best Ports of Call award in 2024.

Tourist numbers suggest the approach is working.

Government data shows that cruise ship arrivals reached 80,588 in the first nine months of 2024, nearly matching the previous year’s total of 88,080.

PPA is not limiting its ambitions to Puerto Galera.

Similar facilities are being developed across the archipelago, including one in Siargao, an island that has gained international recognition for its surfing spots.

As part of President Ferdinand Marcos Jr’s infrastructure program, PPA plans to invest P16 billion pesos in port developments between 2025 and 2028.

Construction of the Puerto Galera terminal is expected to take just over two years, with the bidding process for contractors beginning next month.

Puerto Galera has been a UNESCO Man and Biosphere Reserve since 1973, recognized for its rich marine biodiversity and coral reefs. The area traditionally attracts diving enthusiasts and beach holidaymakers, but has lacked infrastructure for larger tourist vessels.

Resurgence in Cruise Ship Arrivals
The Philippines is experiencing a surge in cruise ship arrivals, with a notable impact on the country’s tourism and economy.

According to recent data, approximately 88,100 cruise ship passengers visited the country in 2023.

The country’s strategic location and rich cultural heritage make it an attractive destination for cruise lines.

The Department of Tourism (DOT) reported 125 cruise calls across over 30 destinations in 2023, with expectations of 109 calls in 2024 and 97 calls planned for 2025.

The economic benefits of cruise tourism are substantial, with a single cruise ship visit generating around $250,000 in tourism revenues for Manila alone.

The average spending per passenger is estimated at $100, leading to enormous economic activity in port cities and surrounding areas.

Local businesses, including hospitality services, tour operators, and retail shops, also benefit from the increased demand.

The Philippine government has recognized the potential of cruise tourism and has invested in enhancing port facilities and promoting the country as a prime cruise destination.

The Philippines was recently awarded “Asia’s Best Cruise Destination,” reflecting its growing reputation in the global cruise market.

With ongoing investments and strategic marketing efforts, the country envisions to enhance its appeal as a premier destination for cruise travelers, offering opportunities for local businesses and contributing to sustainable economic development.

Photo credit: Revorski Mindorensis