The Philippine tourism sector continues to be a key pillar of the Southeast Asian nation’s ongoing economic recovery and development.
As of end-2024, the Philippine government reports that tourism contributed 8.9 percent of the total value of the national economy whilst generating 6.75 direct opportunities for employment for Filipino citizens.
Likewise, the country’s Tourism Direct Gross Value Added (TDGVA), an indicator that measures the value added of the tourism industry, rose to PHP2.35 trillion or 11.2 percent higher than the PHP2.12 trillion recorded in 2023.
In a report made a week prior to President Ferdinand R Marcos Jnr’s State of the Nation Address, tourism secretary Christina Frasco attributed the success to a holistic approach to sectoral development.
At an event in Cebu City held on Wednesday, 16th July, Frasco declared: “We are guided by a holistic approach to tourism development. One that balances economic opportunity, cultural integrity, and inclusive infrastructure.”
The experts weigh in
Leechiu Property Consultants’ (LPC) director for hotels, tourism, and leisure Alfred Lay remarked that, over the past year, strong domestic travel was able to buoy the industry amid the shortfalls in international arrivals in the country.
Domestic tourism expenditure in 2024 reached PHP3.16 trillion, surpassing the pre-pandemic level of PHP3.14 trillion in 2019.
International tourism expenditures, on the other hand, stood at PHP699 billion, up from PHP600 billion pre-pandemic levels, despite the country missing the 2024 arrival targets.
In a recent interview, Lay said: “Our domestic tourism is really strong and it's envied across the region how strong our domestic tourism market is. [But] we need to increase our budget given to the Department of Tourism to conduct these marketing efforts and promotion of the country. In the private sector, we need to craft better experiences,” he said.
He added that the country can further improve seamless travel for tourists and liberalize visa policies, especially for the Chinese, which remains one of the world’s largest outbound tourism markets.
Lay said the Chinese make up 100 million of the about 200 to 250 million outbound tourists within Asia.
He said: “We shouldn't necessarily concentrate on the short term, per se. We need to concentrate on the mid- to long-term. So, more effort in positioning the correct infrastructure in the right places.”
Ongoing initiatives
Under the current administration, the DOT is working to diversify the Philippines’ tourism offerings, including its medical and gastronomic tourism, to attract visitors from both key and emerging markets.
As Frasco puts it, the Philippines is eager to tap into the huge Muslim outbound tourists, which is projected to reach US$225 billion by 2028.
Last year alone, the Philippines received over 613,000 tourists from Muslim-majority countries, a 24 percent increase from the previous year.
The secretary elaborated further by pointing out how markets like Malaysia, Indonesia, Saudi Arabia, and the United Arab Emirates are showing strong and sustained growth, affirming the Philippines’ potential as a Muslim-friendly destination.
The government is also ramping up promotions in its top markets, including South Korea, to continue attracting its nationals to the country.
On top of developing tourism products, the government has also strengthened its partnership with stakeholders to strengthen air connectivity and expand access into the country.
Frasco declared: “These are not isolated programmes. They are part of a unified effort to ensure that the Philippines is not just beautiful or fun, but authentic, respectful, and competitive on the global stage.”
