Tourism growth highlights Philippines as premier destination, says gov’t agency

Jenny Ortiz June 20, 2024

The Department of Tourism (DOT) has spearheaded several strategic initiatives over the past two years, significantly boosting the Philippines’ appeal as a travel destination. These initiatives have been pivotal in attracting more visitors and enhancing their overall experience, underscoring the country’s recovery and growth post-pandemic.

The DOT’s strategic initiatives include the construction of Tourist Rest Areas across strategic locations, the launch of the Philippine Experience Program (PEP) to highlight emerging destinations, and the establishment of a Tourist Assistance Call Centre to address travel-related concerns.

The Philippine Statistics Authority (PSA) released data on June 18 showing that the tourism sector contributed 8.6% to the country’s gross domestic product (GDP) in 2023. This substantial contribution highlights tourism’s crucial role in the nation’s economy.

Enhancing tourism infrastructure

The agency has also focused on sustainable and resilient tourism infrastructure through initiatives like the Tourism Champions Challenge. These efforts aim to promote development across the Philippines, enhancing various tourism offerings including gastronomy, diving, film, golf, history, culture, medical tourism, and English as a Second Language (ESL) programs.

Employment surge in tourism sector

In 2023, the tourism industry generated and sustained 6.21 million jobs for Filipinos, nearing the DOT’s target of 6.3 million tourism-related jobs by 2028. This surge in employment demonstrates the sector’s potential to create significant job opportunities for the local population.

Tourism Secretary Christina Frasco attributed the sector’s growth to the Marcos administration’s prioritisation of tourism. She emphasised that the PSA report reflects the enthusiasm of Filipinos to explore their own country and support local businesses, thereby increasing the Philippines’ attractiveness as a travel destination.

Record-high tourism direct gross value added

The Tourism Direct Gross Value Added (TDGVA) reached PHP2.09 trillion (€33.1 billion) in 2023, the highest since the PSA began tracking this data in 2000. This represents a 47.9 percent increase from the PHP1.41 trillion (€22.3 billion) recorded in 2022 when tourism contributed 6.4 percent to GDP.

Domestic tourism expenditure saw a significant rise of 72.3 percent, growing from PHP1.55 trillion (€24.5 billion) in 2022 to PHP2.67 trillion (€42.3 billion) in 2023. Inbound tourism expenditure, which includes spending by non-resident visitors, surged by 87.7 percent, reaching PHP697.46 billion (€11 billion), surpassing pre-pandemic levels of PHP600.01 billion (€9.5 billion) in 2019.

Meanwhile, outbound tourism expenditure also grew by 10 percent, increasing from PHP189.29 billion (€2.99 billion) in 2022 to PHP208.25 billion (€3.29 billion) in 2023. This indicates a growing trend of Filipinos travelling abroad. Combined internal tourism expenditure, which includes both inbound and domestic spending, increased by 75.3 percent, rising from PHP1.92 trillion (€30.39 billion) in 2022 to PHP3.36 trillion (€53.2 billion) in 2023.

Collaboration for inclusive tourism

The DOT has emphasised collaboration with both public and private sectors, particularly local government units, to make tourism in the Philippines more inclusive. This joint effort aims to continue improving tourism infrastructure, visitor experiences, and employment opportunities.

SiGMA East Europe Summit

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming SiGMA East Europe Summit happening in Budapest from 2 – 4 September.