In 2015, the Philippines ranked lower at 128th behind Jamaica, Russian Federation, Myanmar and Mexico.
Overall, the country ranked 79th based on all indicators of the report, down five notches from the last assessment.
“The travel and tourism sector continues to develop on the back of the country’s rich natural resources (37th) and high price competitiveness (22nd), and arrivals have continued to grow so far,” the report said.
“Although the Philippines’ travel and tourism potential remains high, there are several areas where policy interventions could help to regain competitiveness,” it added.
Last year, there was also a reported resurgence of kidnap-for-ransom incidents in the country.