the philippines tourism industry

- Global Locations -

Headquarters

Future Market Insights, Inc.

Christiana Corporate, 200 Continental Drive, Suite 401, Newark, Delaware - 19713, United States

616 Corporate Way, Suite 2-9018, Valley Cottage, NY 10989, United States

Future Market Insights

1602-6 Jumeirah Bay X2 Tower, Plot No: JLT-PH2-X2A, Jumeirah Lakes Towers, Dubai, United Arab Emirates

3rd Floor, 207 Regent Street, W1B 3HH London United Kingdom

Asia Pacific

IndiaLand Global Tech Park, Unit UG-1, Behind Grand HighStreet, Phase 1, Hinjawadi, MH, Pune – 411057, India

• Consumer Product
• Food & Beverage
• Chemicals and Materials
• Travel & Tourism
• Process Automation
• Industrial Automation
• Services & Utilities
• Testing Equipment
• Thought Leadership
• Upcoming Reports
• Published Reports
• Contact FMI

Philippines Tourism Industry

Demand Forecast for Tourism in the Philippines by Medical Tourism and Sports Tourism for 2024 to 2034

Government-led Initiatives Propel Philippines to Tourism Excellence, Fostering Economic Growth and Cultural Exchange. Industry Outlook Available for 35+ Countries

• Report Preview
• Request Methodology

Analytical Study of Tourism in the Philippines from 2024 to 2034

The Philippines tourism industry is estimated to stand at US$ 12.30 billion in 2024. The industry is forecasted to exceed a valuation of US$ 34.47 billion by 2034. The industry is projected to experience impressive growth through 2034, recording a CAGR of 10.80%. Sales in the Philippines tourism are primarily driven by promotional efforts by tourism boards, travel agencies, and online platforms.

Don't pay for what you don't need

Customize your report by selecting specific countries or regions and save 30%!

Key Factors Influencing the Philippines Tourism Industry Growth

The Philippine economy relies a lot on tourism. Many people like to travel to the Philippines to enjoy its peaceful atmosphere and delicious food. Tourists especially love the Philippines because there are many tasty foods and beverages to choose from. Social media is making more people interested in culinary tourism in the Philippines .

In June 2023, the Philippines introduced its new tourism campaign called "Love the Philippines." It changed it from "It's More Fun in the Philippines" to focus more on real and deep experiences after the pandemic.

On Facebook, Twitter, and Instagram, travel influencers are showing off beautiful places and travel services online. Tourism companies are also putting ads there to reach more people. Consequently, there is likely to be around a 2.8X surge in the sales of tourism in the Philippines by 2034.

Hoteliers are using apps more to manage visitor services, giving them better control over the visitor experience. Also, services like digital check-in and contactless cards are getting popular, while facial and fingerprint verification help with payments and record keeping. This is boosting sales in the Philippines' hospitality industry.

In the Philippines, there are lots of different things to do for eco/sustainable tourism . People can join community activities in the Philippines, like fixing houses, planting mangroves, or helping with schools. They can also teach new skills or work on projects like building a visitor center or fixing up a forest.

Historical Industry Study on the Philippines Tourism alongside Future Projections

From 2019 to 2023, the Philippines tourism industry showed promising growth, boasting a 9.80% CAGR. Hotels in Metro Manila are getting better after the pandemic, with 4 million tourists visiting in the first nine months of 2023. That is almost twice as many as in 2022 and close to the year-end target set by the Department of Tourism. Tourists have already added US$ 5.7 billion to the economy.

Prices are still not as high as before the pandemic, and more places to stay are being made. If the government and cities with lots of future places to stay do well economically, more people might want to stay there, and the places might get fuller. More hotels are being built, with 6,400 new rooms expected by 2026, mostly in Quezon City and Pasay City. This trend is expected to contribute to the positive outlook of the Philippines tourism industry.

Social media is helping the tourism industry in the Philippines grow. Travel influencing is the new buzzword in the market. Travel influencers visit different places to promote tourism, and the Philippines is no exception. They now share the real footage of places and their experience on platforms like Facebook, Twitter, and Instagram, and tourism companies advertise there too. In the Philippines, there are 86.75 million active people using social media.

As social media platforms are proliferating more day by day, it is expected to help the industry develop more during the forecast period.

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Top Opportunities for the Philippines Tourism Industry Players

In October 2022, the Department of Tourism (DOT) in the Philippines changed the entry rule for travelers with the e-Arrival Card system. This system is easier because it does not need a mobile app and asks for less information. Also, by the end of 2024, the government plans to start a VAT Refund Program to give back VAT on things tourists take out of the country.

DOT started the "Tourism Champions Challenge" to help cities and towns with tourism, giving them $3.2 million. Overseas Filipino Workers (OFWs) who bring foreign tourists to the country can win prizes in a raffle called "Bisita, Be My Guest." Therefore, the future of the Philippines tourism and hotel market looks bright. Hotels in the Philippines are getting better, with more people coming, owing to promotions and help from the government.

Key Trends Shaping the Philippines Tourism Industry

• The Philippines travel industry is increasingly adopting sustainable practices. It aims to minimize environmental impact and promote responsible travel.
• Another evolving trend in the Philippines tourism industry is the increasing interest in medical and wellness tourism. The country is capitalizing on its natural resources to promote spa retreats and wellness-focused travel experiences.
• With the growth of remote work, more people are choosing to work while traveling. The Philippines has an affordable cost of living and reliable internet connectivity. This trend makes the Philippines an attractive destination to remote workers.

Get the data you need at a Fraction of the cost

Personalize your report by choosing insights you need and save 40%!

Comparative Analysis of the Adjacent Philippines Tourism Global Industry

A comparison of the tourism industry in the Philippines with that of South Korea and Malaysia has been conducted in the table below. Analysis of these industries from 2024 to 2034 suggests that their expected growth rates are going to be relatively similar, with minimal variations. This is because the entire Asia Pacific is witnessing a boom when it comes to tourism.

Philippines Tourism Industry:

South Korea Tourism Industry:

Malaysia Tourism Industry:

Tourism Industry Analysis in the Philippines by Segment

As far as the tourist type is concerned, the domestic segment is likely to perform better in 2024, holding 58.00% of the Philippines tourism industry share. Similarly, the 26 to 35 years segment is expected to generate significant turnover in terms of age group, possessing a 47.00% revenue share of the tourism industry in the Philippines in 2024.

Influence of Domestic Travelers is Very High in the Philippines Tourism Industry

The domestic traveler segment is likely to become the prime revenue generator within the industry. The main reason Philippine tourism is bouncing back is because more people are traveling within the country. In 2022, most overnight travelers were locals, with around 40 million visitors.

People prefer to visit their own country nowadays because they know about their own culture and interesting places there. Individuals also find domestic traveling cost-effective as it does not necessitate the huge amount of money required for trips abroad or getting visas. These travelers often know people and have friends in the places they visit, so they can do special things that they may not be able to do outside.

Tourism Emerged as the Go-to Choice for 26 to 35 Years Age Group

The 26 to 35 age group is the top segment in the industry. The main reason this segment is growing is because individuals belonging from this age group have enough money to travel. They are financially stable, so they can go wherever they want, whether it is within their own country or abroad.

People aged 26 to 35 like to travel because they want special and unforgettable experiences in each place they go. They really want to explore different tourist spots and are excited about seeing adventure sites. People in this group also enjoy adventurous activities like scuba diving and exploring different islands, which are easy to find in the Philippines.

Competitive Landscape

Tourism industry players in the Philippines employ miscellaneous strategies to get a competitive edge. Some players give high priority to enhancing infrastructure for smoother travel experiences. At the same time, many prioritize industry to showcase natural beauty and cultural richness. Some adopt sustainable practices to attract tourists who are extremely concerned about the environment. While others collaborate with the government to leverage policies for tourism promotion. Many make substantial investments in digital platforms for convenient traveler services.

Recent Developments

• In November 2023, the Department of Tourism and the Tourism Promotions Board Philippines launched the updated Travel Philippines app. This improved digital platform marks the start of the Philippine tourism industry's digital transformation. The aim is to offer travelers a more convenient way to explore the country.
• In October 2023, the Department of Tourism introduced its inaugural Tourist Assistance Call Center following the Philippines' achievement of over 4 million international arrivals. The call center is going to be available round-the-clock, connecting tourists with live agents who can offer information on various aspects. Some of these include addressing tourism complaints, responding to inquiries about the Philippine tourist destination policies, providing details on transportation options and accommodations, among others.
• In July 2023, the Department of Tourism launched the Philippines Hop-On-Hop-Off (HOHO) service in the capital city, debuting Manila's "Cultural Hub" tours. Secretary Frasco was accompanied by officials from the City Government of Manila, headed by Mayor Honey Lacuna, along with representatives from the tourism industry.

Key Philippines Tourism Industry Players

• Scorpio Travel and Tours Inc.
• Baron Travel
• Asiaventure Tours & Travel
• Vansol Travel & Tours
• Kapwa Travel
• Marsman Drysdale Travel Inc.
• Rajah Tours Philippines
• Atlas Tours and Travel Inc.
• Bridgeway Travel and Tours
• Haranah Tours Corporation
• Travel Related Incentive Programs and Services, Inc.
• Travbest Travel & Tours
• Rakso Air Travel & Tours Inc.
• GoldenSky Travel and Tours
• GrandHope Travel Tours
• Kesari Tours Pvt Ltd
• Tourismo-Filipino Inc.

Key Coverage in the Philippines Tourism Industry Research Report

• Factors Prompting the Philippines Culinary Tourism Market Size
• Philippines Tourism Market Outlook in Different Regions
• In-depth Analysis of Philippine Tourism Statistics
• Adjacent Study on the Philippines Vacation Market
• Emerging Trends in Philippine Hospitality Sector and Trends in Philippines Tourism Market
• Growth of the Philippine Travel Industry in Different Quarters
• Market Overview of Tourism Destinations in the Philippines

Key Segments Profiled in the Philippines Tourism Industry Survey

By tourism type:.

• Cultural & Heritage Tourism
• Medical Tourism
• Eco/Sustainable Tourism
• Sports Tourism
• Wellness Tourism

By Booking Channel:

• Phone Booking
• Online Booking
• In Person Booking

By Tourist Type:

• International

By Age Group:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 Years

Frequently Asked Questions

How big is the tourism industry in the philippines.

The industry size for tourism in the Philippines is forecasted to be worth US$ 12.30 billion in 2024.

What is the Sales Forecast for Tourism in the Philippines?

The Philippines tourism market value is projected to surpass US$ 34.47 billion by 2034.

What is the Projected CAGR for the Philippines Tourism Industry?

The CAGR of the Philippines tourism industry is estimated to be around 10.80% through 2034.

What is the Market Trend in the Philippines for Tourism?

Ecotourism is a key industry trend where travelers indulge in protection and management of natural resources.

Which is the Leading Brand of Tourism in the Philippines?

Marsman Drysdale Travel Inc. and Rajah Tours Philippines are Philippines Tourism industry leaders.

Table of Content

List of tables, list of charts.

Recommendations

Travel and Tourism

Tourism Market

Published : November 2022

Philippines Culinary Tourism Market

Published : July 2022

Explore Travel and Tourism Insights

Talk To Analyst

Your personal details are safe with us. Privacy Policy*

- Talk To Analyst -

This report can be customized as per your unique requirement

- Get Free Brochure -

Request a free brochure packed with everything you need to know.

- Customize Now -

I need Country Specific Scope ( -30% )

I am searching for Specific Info.

- Download Report Brochure -

You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.

• Skip to main content
• Keyboard shortcuts for audio player

To Build Up Tourism, Philippines Loosens Pandemic Restrictions For Filipinos

Ashley Westerman

The tourism industry in the Philippines lost some $8 billion in 2020 because of the pandemic. Filipinos are being encouraged to travel domestically to try to restart a crucial sector of the economy.

NOEL KING, HOST:

Millions of people in the Philippines work in tourism, and it's a key part of that country's economy. But the pandemic obliterated the industry. In an attempt to revive it, the government is loosening restrictions and pushing Filipinos to travel domestically. Here's Ashley Westerman from Manila.

(SOUNDBITE OF KNOCKING)

KYRA CABAERO: Room check.

(SOUNDBITE OF KEYCARD BEEPING, DOOR OPENING)

ASHLEY WESTERMAN, BYLINE: At the Joy Nostalg Hotel & Suites Manila in Pasig, an upscale part of Manila, marketing director Kyra Cabaero shows me around one of the hotel's standard executive rooms.

CABAERO: We have a fully equipped kitchen already in the studio room. It comes with either a king size bed or two twin beds.

WESTERMAN: Crisp white sheets, a plush white couch, white tile floor - the room is pristine.

CABAERO: As you can see, it's actually quite bigger than regular hotel rooms.

WESTERMAN: There's also something a bit different about this room.

CABAERO: We now offer a QR code. So guests can just scan this, and this will connect them with everything about the hotel. So that's the hotel directory, the room service menu.

WESTERMAN: This is just one of the many COVID protocols the hotel has put in place in order for it to become one of a handful in the metro Manila area certified for staycation bookings.

CABAERO: We have already been inspected and audited and are following the standards for safety and health for DOT.

WESTERMAN: That's the Department of Tourism. Cabaero says the hotel has been impacted financially by COVID, so they jumped at the chance when it arose in May for visitors from within the national capital region bubble to book hotel rooms like these to get away while not getting too far away.

This staycation scheme is just one idea the Philippine government has put forth in an effort to restart the country's pandemic-shattered tourism industry. Pre-COVID, the industry made up more than 12% of the country's overall GDP. A large majority of that was domestic travel. In an email statement to NPR, the Department of Tourism says domestic travel will help restart the battered sector. But while the department says it's doing all it can for a safe reopening, many experts are not on board, even with staycations.

JOSHUA SAN PEDRO: There is still some relative risk, especially if we're talking about staycations by people who aren't from the same household.

WESTERMAN: That's Joshua San Pedro, a primary care provider in Manila. Even though the Philippines' case numbers have gone down after a huge spike in April and May, San Pedro says traveling outside of the home is still too risky. Earlier this month, the Philippines also started some domestic travel between provinces, most notably to some beach destinations like Boracay and Palawan. San Pedro says that adds even more risk.

SAN PEDRO: There's still a lot of cases in the provinces. Until maybe testing is better - and then second is really the vaccine rollout.

WESTERMAN: Which has been slow in the Philippines, with just about 2% of the population fully vaccinated to date. E.J. Fletchitero of Marikina City is not vaccinated and says he will not travel right now.

When do you think you will eventually travel?

E J FLETCHITERO: Maybe if we have all get the vaccines.

WESTERMAN: And not yet getting the jab isn't the only thing keeping him home. The 31-year-old cruise ship worker has also not worked in over a year.

FLETCHITERO: (Speaking Tagalog).

WESTERMAN: He says money's a bit tight right now to pay for a ticket or a hotel room.

Jerome Dagpulo, a food delivery driver, shares the sentiment.

JEROME DAGPULO: (Speaking Tagalog).

WESTERMAN: He says he's currently making about 700 pesos per day, the equivalent of $14 American, which he says is barely enough to just live on.

For NPR News, I'm Ashley Westerman in Manila.

(SOUNDBITE OF PORTICO QUARTET'S "RUINS")

Copyright © 2021 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy .

Recovering tourism industry exceeds target, draws over 5.5 million visitors in 2023

Virgin Island in Panglao, Bohol is a popular destination among local and foreign tourists. (LEO UDTOHAN)

MANILA, Philippines — The Philippines’ tourism industry has been recovering faster than expected since taking a hit during the height of the COVID-19 pandemic, the Department of Tourism (DOT) said on Tuesday.

In its year-end report, the DOT said that the country welcomed over 5.4 million tourists in 2023.

“A total of 5,450,557 international visitors entered the country from January 1 to December 31, 2023,” the DOT said.

It added that among the 5.4 million visitors, 91.8 percent (5,003,475) were foreigners, while 8.20 percent (447,082) were overseas Filipinos.

Target exceeded

This figure is around 650,000 more than the DOT’s projected 4.8 million international visitors for 2023.

In 2022, the Philippines welcomed around two million visitors, 73 percent of the, foreigners.

In early December last year, the DOT announced that it had breached the five million mark for foreign tourist arrivals.

“Annyeonghaseyo”

Its yearend report added that South Koreans accounted for 26.41 percent of the total foreign visitors, making them the Philippines’ largest market for international visitors.

Second on the list are Americans (16.57 percent) followed by the Japanese (5.61 percent), Australians (4.89 percent) and Chinese (4.84 percent).

Further, the DOT said that the country’s international tourism receipts have surged to an estimated P482.54 billion in 2023 – about 124.87 percent higher than the estimated P214.58 billion in 2022. 

“In 2019, or the pre-pandemic period, the DOT recorded P482.15 billion in international tourism receipts,” it added.

“By 2024, the DOT is targeting a baseline target of 7.7 million international visitor arrivals,” the DOT stated in its yearend report.

Resilient tourism industry

Citing the country’s multiple tourism awards in 2023, Tourism Secretary Christina Frasco lauded the tourism industry’s resilience amid setbacks in previous years.

Subscribe to our daily newsletter

“The indomitable spirit of the Filipino has been globally acclaimed with the Philippines receiving the Global Tourism Resilience Award with our country seen as a benchmark for innovation amidst trials and challenges,” Frasco said in the same report.

Disclaimer: Comments do not represent the views of INQUIRER.net. We reserve the right to exclude comments which are inconsistent with our editorial standards. FULL DISCLAIMER

© copyright 1997-2024 inquirer.net | all rights reserved.

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.

Tourism industry in the Philippines

Statistics report on the tourism industry in the Philippines

This report presents graphs and tables about the tourism industry in the Philippines, particularly on the industry's economic contribution to the country's economy. It also provides a market overview of inbound, domestic, and outbound tourism in the country. It also includes information on accommodation.

Download your Report

Table of contents.

• Premium Statistic International tourist arrivals worldwide 2019-2022, by subregion
• Basic Statistic Value of domestic tourism spending APAC 2022, by country
• Basic Statistic Value of international tourism spending APAC 2022, by country
• Basic Statistic Travel and tourism's direct contribution to employment APAC 2022, by country
• Premium Statistic Estimated online travel and tourism revenue Philippines 2023, by category

Economic impact

• Premium Statistic Gross value added of the tourism industry Philippines 2019-2022, by type
• Premium Statistic Share of tourism GDP Philippines 2012-2022
• Premium Statistic Tourism industry growth rate Philippines 2018/19-2021/22, by sector
• Premium Statistic Tourism receipts Philippines 2019-2022
• Premium Statistic Tourism expenditures Philippines 2022, by travel type
• Premium Statistic Tourism sector employment figures Philippines 2012-2022

Inbound tourism

• Basic Statistic International tourist arrivals Philippines 2012-2023
• Premium Statistic Tourist arrivals Philippines 2023, by country of residence
• Premium Statistic Expenditure value in inbound tourism Philippines 2021-2022, by type
• Premium Statistic Number of inbound overnight tourists Philippines 2012-2021
• Premium Statistic Average length of stay of inbound tourists Philippines 2012-2021

Domestic tourism

• Premium Statistic Number of domestic tourism trips Philippines 2012-2021
• Premium Statistic Domestic passenger count Philippines 2023, by airline
• Premium Statistic Household expenditure share of domestic tourism spending Philippines 2012-2022
• Premium Statistic Domestic tourism expenditures Philippines 2012-2022
• Premium Statistic Domestic tourism expenditures Philippines 2020-2022, by product

Outbound tourism

• Premium Forecast Number of international tourist departures in the Philippines 2014-2029
• Premium Statistic Outbound tourism expenditures Philippines 2020-2022, by segment
• Premium Statistic Expenditures on accommodation services in outbound tourism Philippines 2012-2022
• Premium Statistic Expenditures on food and beverage services in outbound tourism Philippines 2012-2022
• Premium Statistic Expenditures on travel agency services in outbound tourism Philippines 2012-2022

Accommodation

• Premium Statistic Overnight travelers Philippines 2022, by type
• Premium Forecast Revenue of the hotels industry in the Philippines 2019-2028
• Premium Statistic Average hotel room rates Metro Manila Philippines 2021-2023, by star classification
• Premium Statistic Highest overnight room rates of hotels in Metro Manila, Philippines 2023, by city
• Premium Forecast Revenue of the vacation rentals industry in the Philippines 2019-2028

If this report contains a copyright violation , please let us know. Note that you will leave this page when you click the link.

Recommended and recent reports

Recommended statistics.

• Basic Statistic Contribution of travel and tourism to GDP of India 2019-2022
• Basic Statistic Number of jobs in travel and tourism sector in India FY 2014-2022
• Premium Statistic Market size of the tourism sector worldwide 2011-2024
• Basic Statistic Contribution of China's travel and tourism industry to GDP 2014-2023
• Basic Statistic Change of travel and tourism industry's contribution to GDP in China 2012-2023

Statista report shop

We provide information on industries, companies, consumers, trends, countries, and politics, covering the latest and most important issues in a condensed format.

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

• Immediate access to all reports
• Access to all Premium statistics
• Usage and publication rights

• March 16, 2023

Tourism in the Philippines: Exploring Opportunities and Overcoming Challenges

Introduction

Travel and tourism in the Philippines is a vibrant and growing sector. The country has many attractions, including beautiful beaches, impressive mountains, and a rich cultural heritage. Every year, millions of tourists flock to the islands of the Philippines to explore its breathtaking beauty and indulge in its offerings. In 2019, foreign arrivals peaked at 8.3 million , indicating the country’s popularity as a tourist destination.

However, the tourism industry in the country suffered significant losses in previous years because of the pandemic. Nevertheless, the country is optimistic and expecting a revival and revitalization of its tourism economy. Continue reading to explore the nation’s thriving sector, its obstacles, and the potential it provides.

Why do tourists love to visit the Philippines?

The Philippines, an archipelagic nation spanning over 7,000 islands, offers an unparalleled and distinctive experience for travellers. With a vibrant culture, delectable cuisine, welcoming locals, and breathtaking natural scenery, the country boasts a diverse range of offerings to cater to all interests. Here are just a few you won’t want to miss out on!

Stunning Beaches

The Philippines is home to some of the most beautiful beaches in the world. From laid-back, crystal-clear waters to vibrant nightlife scenes and everything in between, you’re sure to find something that will suit your tastes. Notable attractions are the stunningly beautiful islands of Siargao, Boracay, and Palawan, all of which were ranked first, second, and third, respectively, on Condé Nast Traveller’s list of Asia’s best islands in 2018 .

Adventure & Nature

The Philippines is a nature-lovers paradise, possessing a variety of breathtaking landscapes and diverse ecosystems. The country’s rainforests are home to some of the world’s most exotic plants and animals, while its mountains offer exciting trekking opportunities. Adventure seekers can also enjoy white-water rafting in the Cordilleras or explore some of the country’s many volcanoes including the perfectly cone-shaped Mayon Volcano in the region of Bicol, which is a UNESCO Biosphere Reserve.

Cultural Experiences

The Philippines is a melting pot of cultures, and its vibrant heritage can be experienced through its cuisine, music, art, and festivals. The country also features some of the most beautiful colonial architecture in the world, notably Vigan, a UNESCO World Heritage City and one of Asia’s best-preserved planned Spanish colonial towns. Additionally, the local people are warm and welcoming, and travellers often find themselves connecting with the locals for a truly authentic experience.

Tourism and the Philippine Economy

The travel and tourism industry is one of the major contributors to the Philippine economy. In 2019, the industry contributed a record 12.7% of the country’s GDP, amounting to PhP 2.48 trillion, a 10.8% increase over 2018. It is one of the largest service industries in the country in terms of gross revenue and foreign exchange earnings. It also employs millions of Filipinos, with an estimated 5.7 million people employed in the sector as of 2019. This makes it an incredibly important source of income for many local communities across the nation.

However, the COVID-19 pandemic has negatively impacted the industry in the past few years. Thousands of livelihoods were severely affected and many jobs were lost. In fact, in 2021, the sector was only able to contribute 5.2% to the country’s GDP. Tourism employment in 2021 also took a nosedive at an estimated 4.90 million, which, while higher than the 4.68 million recorded in 2020, is still significantly lower than pre-COVID numbers.

Challenges of the Philippine Tourism Sector

Covid-19 anxieties.

As mentioned, the recent pandemic has brought unprecedented challenges to the Philippine tourism sector. The industry has been one of the hardest-hit sectors, with a significant decline in international and domestic arrivals. As a result, businesses have suffered due to restrictions on travel, social distancing requirements, and a decrease in tourist spending.

In Standard Insights’ most recent Consumer Report Philippines 2023 , which surveyed over 1,000 Filipino respondents in November 2022, more than half of the population stated health & safety-related issues (53.6%) were their biggest worry about travelling in 2023.

Interestingly, most Filipinos, specifically 76.6%, feel safe and secure travelling abroad despite the ongoing COVID-19 situation. Merely a minority of 6.2% expressed feeling insecure about international travel this year.

Airline Woes & Airfare Costs

Another major challenge facing the Philippine tourism sector is the limited number of air links between domestic and international destinations. For many years, the country has relied heavily on its domestic airlines to provide service to both local and foreign passengers. However, with a limited number of flights available, it can be difficult for tourists to visit multiple destinations within the same trip. The lack of direct routes from other countries also proves to be an obstacle for those hoping to travel to the Philippines for a holiday or business trip.

Adding to this challenge is the high cost of airfare that affects the Philippine tourism sector. The cost of oil prices has been rising steadily over the past few years, and the cost of airfare is one of the most affected areas due to this trend. Moreover, airfares in the Philippines tend to be higher than in other Asian countries due to taxes imposed by both local and international airlines as well as fuel costs that are often not included in ticket prices. This makes it difficult for budget travellers and those who are looking to save money on their trips.

Infrastructure

Another challenge facing the Philippine tourism sector is inadequate infrastructure and services such as hotels, transportation networks, and attractions available at tourist destinations across the country. Inadequate infrastructure often leads to overcrowding at major tourist spots during peak season and prevents visitors from enjoying all that each destination has to offer. Additionally, poor public transportation options make it difficult for travellers to explore beyond just their immediate area without having access to private transport such as cars or taxis.

Government Tourism Revival Efforts

The Philippine government has undertaken various measures to revive the tourism sector. In 2021, it launched the Tourism Response and Recovery Plan (TRRP) to help mitigate the impacts of COVID-19 on the industry and protect jobs, visitors, and communities by providing financial assistance for businesses and individuals in need. This allows support for the recovery of tourism enterprises and helps to rebuild confidence and growing demand in domestic and foreign markets. The plan also included an incentive program for domestic tourists, which was implemented in late 2021 and aimed to help revive local tourism by offering discounts on accommodations, food, and activities.

Moreover, starting in 2024, foreigners will be allowed to get tax refunds for purchases made in the Philippines as part of the government’s aim to attract more visitors. Value-added tax (VAT) , which is presently charged at a rate of 12% on goods consumed domestically, will eventually be refunded to international visitors on items they take out of the country.

Finally, the Philippines can be hopeful about the future of its tourism industry. In the previous year, the country welcomed 2.6 million visitors , surpassing its 2022 goal of 1.7 million arrivals. This achievement has encouraged the Department of Tourism (DOT) to set a new target of attracting 5 million foreign visitors in 2023, double the number from last year.

In recent years, the Philippine tourism industry has encountered a multitude of obstacles, particularly with health and safety concerns. In the aftermath of the pandemic, these issues continue to linger, with over half of the population expressing apprehension about travelling in 2023 due to the ongoing impact of COVID-19. Despite the challenges, the industry remains resilient and adaptable, implementing measures to ensure the safety and well-being of tourists and locals alike.

The government has also responded by launching various initiatives such as the Tourism Response and Recovery Plan to help revive the industry and promote domestic and international travel. By continuing to focus on strengthening infrastructure, encouraging domestic tourism, and offering attractive packages for foreign visitors, the Philippines is taking steps toward restoring its tourism sector to its former glory.

Unlock reliable market research in the Philippines with real and authentic consumer insights. Know the needs and preferences of the Filipino population to help you make well-informed decisions in this dynamic market landscape.

Sign Up For More Like This.

Sign up now to receive a curated selection of our latest consumer insights, survey results, articles, reports and exclusive benefits.

• Consumer Insights
• | Industry Reports
• | News & Research

Social Media in Japan: Thriving Trends and Digital Dominance

Explore the dynamic world of social media in Japan, and uncover unique trends, preferences, and habits of Japanese social media users.

Unveiling the Impact of Surging Inflation in the United Kingdom

Uncover the impact of rising inflation in the UK. Explore insights revealing perceptions and buying behavior amid the economic challenges.

The Tech Landscape of California: Insights into Digital Preferences, Trends, and Influences

From Silicon Valley’s innovation hub to emerging startups, explore California’s dynamic tech and electronics scene in our latest article.

Make informed, data-driven decisions quickly with reliable consumer insights.

We’re dusting off the Market Research industry.

• Quantitative Research
• Qualitative Research
• Methodology
• Agency Benefits
• Respondents
• Case Studies
• Consumer Reports
• Consumer Choice
• Privacy Policy
• Terms and Conditions

Discover what consumers really think

Get notified of the insights in your country of interest

• Top Stories
• Stock Market
• BUYING RATES
• FOREIGN INTEREST RATES
• Philippine Mutual Funds
• Leaders and Laggards
• Stock Quotes
• Stock Markets Summary
• Non-BSP Convertible Currencies
• BSP Convertible Currencies
• US Commodity futures
• Infographics
• B-Side Podcasts
• Agribusiness
• Arts & Leisure
• Special Features
• Special Reports
• BW Launchpad

Tracking the comeback of Philippine tourism

Tourism is getting back on foot after its expansion got blown by the coronavirus disease 2019 (COVID-19) lockdowns and travel restrictions. Although the number of visitor arrivals and domestic trips in the country has yet to reach their pre-pandemic levels so far, the relaxation of restrictions has somehow driven the industry to move forward.

Since the easing of the country’s border restrictions in February, the Philippines has welcomed two million visitors, according to the Department of Tourism (DoT).

As of Nov. 14, the department reported a total of 2,025,421 visitor arrivals to the country, 73.43% or more than 1.48 million of which are foreign tourists, while over 538,000 (26.57%) are overseas Filipinos.

Among these foreign tourist arrivals, 19.01% came from the United States of America, the highest number of foreign tourist arrivals count by country. South Korea followed with 14.10%, then Australia with 4.75%.

Canada, the United Kingdom, Japan, India, Singapore, Malaysia, and Vietnam completed the top 10 list of countries with the most tourist arrivals to the Philippines.

Visitor arrivals from February to September brought over P100.7 billion in revenues to the tourism sector, soaring 1,938.14% from the P4.94 billion recorded in the same period in 2021.

The two million visitor arrivals surpassed the DoT’s 1.7 million tourist projections, said Tourism Secretary Christina Garcia-Frasco.

“We therefore must meet this with the continued implementation of enabling mechanisms that will convey not only the country’s openness to welcome more tourists but also conduciveness to tourism business and livelihood opportunities for our fellow Filipinos,” she said in a statement.

In 2021, the Philippines recorded only 163,879 visitor arrivals, an 88.95% slump from the 1.48 million seen in the year prior, according to data from the DoT.

Meanwhile, the 2021 Philippine Tourism Satellite Accounts (PTSA) reported that demand for domestic tourism increased by 38.16% to more than 37 million trips last year. The top overnight destinations for local tourists were the National Capital Region, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon), and Central Luzon.

Employment in tourism industries also increased by 4.6% in 2021, with 4.9 million employed individuals. Overall, tourism generated 11.1% of the country’s total employment in the previous year.

In addition, passenger transport has the highest share of employment among the tourism industries, accounting for 38.3%.

In 2021, the tourism sector’s contribution to the country’s gross domestic product (GDP) inched up to 5.2%, amounting to P1 trillion.

Philippine tourism is expected to reach pre-pandemic levels by 2024, as industry stakeholders told BusinessWorld in a report last June, though the demand could be challenged by certain factors such as high inflation.

The country welcomed over 8.26 million visitor arrivals back in 2019, while about 122 million domestic trips were tallied. The tourism sector’s share in the country’s GDP then was at 12.7% or P2.48 trillion.

Plans for tourism recovery

The DoT, last August, laid out its plans and programs for the recovery of the tourism industry. Among these were the establishment of tourist service rest areas, a Tourist Assistance Call Center, improvements in land and sea tourist facilities, the launch of a guest incentive system, ensuring visitors’ health and security, and the development of the Tourist Lifecycle App, among others.

Ms. Frasco shared that at least 10 tourist service rest areas would be set out in strategic locations in Luzon, Visayas, and Mindanao for this year. These areas would cater to visitors who need accommodation, information, safety, and security, as well as those looking for local products as there will also be a pasalubong center inside.

Meanwhile, the Tourist Lifecycle App would help tourists by linking them to accredited establishments for accommodation, shopping, food, rides to accredited transportation, tour operators, and tour guides.

The DoT has just launched the guest incentive system called “ Bisita Be My Guest” program, which will offer raffle prizes to overseas Filipino workers and overseas Filipinos who would invite foreigners to visit the country.

Ms. Frasco also shared that the DoT is working on the development of new regional tourism circuits, and cultural and heritage hubs. It also works on mechanisms that seek to improve tourism standards, product accreditation, and review of product audits to be at par with international tourism standards, identify and address gaps, and include emerging standards that address the needs of the modern traveler.

The department is also looking into setting forth innovative tourism services like hop-on and hop-off buses in key tourism destinations as well as international and local river cruises.

“There is much work that needs to be done. Our greatest challenge now is to not only to grow the industry back to its pre-pandemic level, which used to hold more than 12% of the country’s total gross domestic product, but to exceed our previous position and take a primary tourism position in the ASEAN (Association of Southeast Asian Nations) and globally as that is the birthright of every Filipino,” the Tourism Secretary said.

“We anticipate that with the gradual recovery of the tourism industry, this industry will once again become one of the major drivers of the national economy, and a major contributor to our gross domestic product,” she added. — Chelsey Keith P. Ignacio

RELATED ARTICLES MORE FROM AUTHOR

A journey of ingenuity in automobiles

Leveraging insurance for a sustainable future

Navigating opportunities and risks in sustainable insurance

Why QC wants to be like SG

Us cdc eases travel recommendations on some 110 countries, including philippines, asia ceo awards 2023 celebrates successful leaders and firms in phl business scene.

Share of Tourism to GDP is 5.2 Percent in 2021

In 2021, the contribution of Tourism Direct Gross Value Added (TDGVA) to the Philippine economy, as measured by the Gross Domestic Product (GDP), is estimated at 5.2 percent. (Table 10.1)

The TDGVA amounted to PhP 1,001.30 billion in 2021, higher by 9.2 percent compared with the PhP 917.20 billion in 2020. (Tables 6.1 and 6.2)

Among the forms of tourism expenditures, domestic tourism expenditure posted the highest growth in 2021 at 38.7 percent, followed by outbound tourism expenditure at 27.1 percent. On the other hand, inbound tourism expenditure recorded a decline of -79.2 percent. Internal tourism expenditure, comprising inbound and domestic tourism expenditure, grew by 16.3 percent. (Tables 1.2, 2.2, 3.2, and 4.2)

Inbound tourism expenditure, which refers to the expenditure of non-resident visitors (foreign visitors and Filipinos permanently residing abroad) within the Philippines, shared 0.6 percent to the country’s total exports in 2021. On the other hand, domestic tourism expenditure, which covers expenditures of resident visitors within the country either as domestic trip or part of an international trip, contributed 5.4 percent of the household final consumption expenditure. (Tables 10.2 and 10.3)

Employment in tourism characteristic industries improved in 2021

Employment in tourism characteristic industries was estimated at 4.90 million in 2021, higher by 4.6 percent compared with 4.68 million in 2020. Share of employment in tourism industries to total employment in the country was recorded at 11.1 percent.  (Table 10.5)

The Philippine Tourism Satellite Accounts (PTSA) is compiled annually by the Philippine Statistics Authority (PSA).

DENNIS S. MAPA, Ph.D. Undersecretary National Statistician and Civil Registrar General

See more at the PTSA Main Page.

Related Contents

Psa conducts consultative and validation forum on subnational tourism satellite accounts for western visayas, psa and dot conduct online forum on tourism accounts and statistics.

• Secretary’s Corner
• GAD Activities
• GAD Issuances

• Mission and Vision
• Department Structure
• Key Officials
• Citizen’s Charter
• Attached Agencies
• General Info
• Culture & Arts
• People & Religion
• Tourism Industries Products
• Promotional Fair and Events
• Doing Business
• Philippines RIA Pilot Program
• Tourism Demand Statistics
• Standards Rules and Regulations
• Online Accreditation
• Accredited Establishments
• Learning Management System (LMS)
• News and Updates
• Announcements
• Publications
• Bids and Awards

PBBM LAUDS WINNERS OF DOT’S TOURISM CHAMPIONS CHALLENGE; RAISES FUNDING FOR LGU INFRA PROPOSALS TO P255M

Manila, Philippines—President Ferdinand Marcos, Jr. lauds the Department of Tourism’s (DOT), flagship program, Tourism Champions Challenge, which encourages local...

DOT UNVEILS TOURIST REST AREA IN PALAWAN

The Department of Tourism (DOT) on Friday (Apr. 12) unveiled the Tourist Rest Area (TRA) in the Municipality of...

THE PHILIPPINES VIES FOR 7 AWARDS AS ASIA’S BEST FOR THE 2024 WORLD TRAVEL AWARDS

Manila, Philippines—The Philippines continues to be recognized as one of Asia’s best country destinations for tourism as it competes...

Accreditations

Published Vacant Position – February 13, 2024

Published vacant position – january 29, 2024, published vacant position – november 3, 2023, published vacant position – august 24, 2023.

Balik Bayani sa Turismo: FAQs – March 2024 issue

Balik bayan sa turismo: briefer – march 2024 issue, on the dot: official dot newsletter – march 2023 issue, on the dot: official dot newsletter – february 2023 issue.

Tourism in the Philippines

Philippine tourism industries, explore by interest, tourism videos.

THE PHILIPPINES IN NUMBERS

100,972,303, 134,107,832, dot attached agencies.

• Open Data Portal
• Official Gazette
• Office of the President
• Sandiganbayan
• Senate of the Philippines
• House of Representatives
• Department of Health
• Department of Finance
• Supreme Court
• Court of Appeals
• Court of Tax Appeals
• Judicial Bar and Council
• Bureau of Internal Revenue
• Bureau of Customs
• Bureau of Treasury
• Bureau of Local Government Finance

• Asia Briefing
• China Briefing
• ASEAN Briefing
• India Briefing
• Vietnam Briefing
• Silk Road Briefing
• Russia Briefing
• Middle East Briefing
• Asia Investment Research

Tourism Industry in the Philippines: Part I

Op-ed by Bob Shead

In this article, I would like to attempt to cover the main aspects of the Philippine Tourism Industry and the potential for investment.  The tourism industry was worth approximately 8.6 percent of the country’s Gross Domestic Product (GDP) in 2016, compared to 8.2 percent in 2015.  Foreign investment in the tourism industry in 2016 was P184 billion (US$3.7 billion) and was mainly into 20 major projects involving resorts and hotels.  Employment in the Philippine tourism sector is currently just over 5 million workers.  Compared to the previous year, the monthly figures for tourist arrivals has increased by 5.5 percent in 2017, with the current monthly figures at Philippine airports standing at 580,000 travelers. This will give an annual projected figure of 7 million tourist arrivals by air for 2017.

  RELATED: Corporate Establishment Services from Dezan Shira & Associates

Philippines tourism overview as part of gdp.

According to the Philippine Statistics Authority (PSA), as measured by the share of Tourism Direct Gross Value Added (TDGVA) to total GDP, the contribution of tourism to the economy was estimated at 8.6 percent in 2016.  The TDGVA amounted to P1243 billion (US$25 billion) in 2016, higher by 13.7 percent compared to previous year’s P1093 billion (US$22 billion).

The TDGVA estimate is based on the latest results of the Philippine Tourism Satellite Accounts (PTSA) which also provides information on tourism expenditure and employment.  The following are the other key results from PTSA: 

• Inbound tourism expenditure, which refers to the expenditure of non-resident visitors (foreign visitors and Filipinos permanently residing abroad) within the Philippines, grew by 2.3 percent in 2016, amounting to P313.6 billion (US$6.3 billion) from P306.6 billion (US$6.13 billion) in 2015.  Compared to the country’s total exports, the share of inbound tourism expenditure was 7.7 percent.  Inbound tourism ranked third among the biggest export items in 2016.
• Domestic tourism expenditure, which includes expenditure of resident visitors within the country either as domestic trip or part of an international trip, grew by 19.1 percent, from P1770.7 billion (US$35.4 billion) in 2015 to P2108.2 billion (US$42.2 billion) in 2016.  Domestic tourism expenditure represented 19.8 percent of the Household Final Consumption Expenditure (HFCE) in 2016. 
• Employment in the tourism-related industries was estimated at 5.2 million in 2016, higher by 5.1 percent compared to 5 million in 2015.  Share of employment in tourism-related industries to total employment in the Philippines was recorded at 12.8 percent in 2016.

(Source: Department of Tourism and Tourism Infrastructure and Enterprise Zone Authority)

Investment in the Philippine Tourism Industry is managed by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), a government corporation, created by the Tourism Act of 2009 and is under the Department of Tourism (DOT).  The current annual budget of DOT (including TIEZA) is P2.5 billion (US$50 million).  It is anticipated that in light of increasing tourism to the Philippines, this budget will increase during the next financial year.

TIEZA acts as the DOT’s implementation arm, and provides a support infrastructure that facilitates investments in Tourism Enterprise Zones (TEZ) throughout the Philippines.  The main functions of TIEZA are: Infrastructure Development and Designation;  Regulation and Supervision of TEZ areas;  Management of its existing assets and/or facilitation of privatization of an asset;  Administration and the collection of the Philippine Travel Tax.

Bureau of Internal Revenue (BIR) confirms that TIEZA tax incentives for Tourism Enterprise Zones (TEZ) will continue beyond 2019

According to a media release on 11 July 2017, the BIR recently issued a ruling on the clarification that had been sought by TIEZA.  This confirmed the tax beneficial financial incentives for TEZ under the Tourism Act of 2009.  This stated that both foreign and local investors will continue to benefit beyond 2019 and until these investments are fully realized or availed.

This announcement came in light of the Revenue Regulations issued by the BIR in November 2016 on the effective administration of tax incentives for TEZs for a period of ten years or until 2019, also known as the “sunset provision”.  In response to questions by tourism investors on the continued availability of incentives beyond the “sunset provision”, the TIEZA Chief Operating Officer, Pocholo Paragas had sought clarification from the BIR, and this ruling was announced on 30 May 2017.

Paragas also stated “We want to immediately put this issue to rest.  This clarification will greatly enhance investors’ confidence to develop Tourism Enterprise Zones and to attract locators to put up tourism enterprises inside.  The time to invest in tourism is now”.  He further stated that TIEZA through TEZ will continue to engage tourism investment groups, as he believed in the significant contributions of tourism in the national economy, and the huge potential of tourism to the Philippines will provide inclusive growth in the local communities.

RELATED: Solar Power Industry in the Philippines

The Tourism Act of 2009 now authorizes TIEZA to grant the following tax incentives to TEZ Developers and tourism enterprises:

• A six-year Income Tax Holiday (ITH) that may be extended for another six years;
• A 5 percent preferential tax on gross income in lieu of national taxes except for real property tax and fees of TIEZA;
• A Net Operating Loss Carry Over (NOLCO) scheme;
• Import tax exemptions for capital goods, related equipment, transport equipment including spare parts, necessary for TIEZA registered activities;
• Exemption from Value Added Tax (VAT) and excise tax goods imported for TIEZA registered activities;
• Tax credit equivalent to taxes paid on locally sourced goods;
• And tax deduction of up to 50 percent of cost of environmental protection and cultural heritage preservation activities, as well as of sustainable livelihood programs of the Registered Tourism Enterprises (RTEs).

The second part of this article, covering the various sectors in the Philippine tourism industry, can be read here .

In this issue of ASEAN Briefing magazine, we provide an introduction to the Philippines as well as analyze the various market entry options available for investors interested in expanding to the island nation. We also discuss the step-by-step process for setting up a business entity in the Philippines, highlighting the various statutory requirements for overseas investors. Finally, we explore the potential for Singapore to serve as a viable base to administer investors’ Philippine operations.

• Previous Article Import and Export Procedures in Laos – Best Practices
• Next Article Tourism Industry in the Philippines: Part II

Our free webinars are packed full of useful information for doing business in ASEAN.

DEZAN SHIRA & ASSOCIATES

Meet the firm behind our content. Visit their website to see how their services can help your business succeed.

Want the Latest Sent to Your Inbox?

Subscribing grants you this, plus free access to our articles and magazines.

Get free access to our subscriptions and publications

Subscribe to receive weekly ASEAN Briefing news updates, our latest doing business publications, and access to our Asia archives.

Your trusted source for India business, regulatory and economy news, since 1999.

Subscribe now to receive our weekly ASEAN Edition newsletter. Its free with no strings attached.

Not convinced? Click here to see our last week's issue.

Search our guides, media and news archives

Type keyword to begin searching...

• Agri-Commodities
• Asean Economic Community
• Banking & Finance
• Business Sense
• Entrepreneur
• Executive Views
• Export Unlimited
• Harvard Management Update
• Monday Morning
• Mutual Funds
• Stock Market Outlook
• The Integrity Initiative
• Editorial cartoon
• Design&Space
• Digital Life
• 360° Review
• Biodiversity
• Environment
• Envoys & Expats
• Health & Fitness
• Mission: PHL
• Perspective
• Today in History
• Tony&Nick
• When I Was 25
• Wine & Dine
• Live & In Quarantine
• Bulletin Board
• Public Service
• The Broader Look

Today’s front page, Sunday, April 21, 2024

Alarming rise of hotel rates threatens growth of PHL tourism industry

• BusinessMirror Editorial
• April 22, 2024
• 3 minute read

The high cost of travel and accommodation in the Philippines has been a long-standing concern for domestic tourists, destination management companies, and lawmakers. The situation has reached a point where many people now prefer to travel abroad, where they can get more value for their money. The issue is not limited to expensive domestic airfare; even hotels, especially those in Metro Manila, have significantly raised their room rates, surpassing pre-pandemic levels. Unfortunately, this trend is projected to continue in the medium term, posing a serious threat to the government’s goal of attracting 12 million international arrivals by 2028. (Read the BusinessMirror story:  ‘Keys Muna’: Imminent hotel room shortage—and resulting higher room rates—could derail PHL’s ambition to lure more visitors, April 20, 2024).

According to a recent briefing by Leechiu Property Consultants (LPC), there is an impending hotel shortage in the country. Only 87 properties are in the pipeline from 2025 to 2028, adding a mere 25,000 hotel rooms to the supply. This means that by 2028, there will be a total of 308,000 hotel rooms available. To achieve the target of 12 million inbound tourists by 2028, there needs to be an annual growth rate of approximately 10 percent. However, the growth in hotel keys during the same period is expected to be less than one percent, significantly limiting the country’s ability to reach its tourism goals. As a result, room rates and occupancy rates will undoubtedly increase, making travel more expensive for both locals and foreigners.

The majority of the new hotels (40 percent) are concentrated in Metro Manila, with the rest distributed among popular destinations such as Cebu, Boracay, Davao, and Palawan. While this development is promising, it may not be sufficient to meet the growing demand for accommodations. Furthermore, factors such as a high inflation rates and the cost of funding pose significant challenges to hotel development. High inflation rates make borrowing and financing more difficult, hindering the construction of new hotels.

The pandemic has also played a role in delaying hotel constructions. Many ongoing projects were halted, leading to a shortage in available rooms. Additionally, the current cost of funding, as reflected in lending rates, further contributes to the impending hotel shortage.

Inflationary pressures are expected to drive the average daily rates (ADR) of hotels to continue rising, outpacing occupancy and revenue per available room (RevPAR). While ADR typically lags behind occupancy growth, hotels have been focusing on increasing rates to offset higher operating costs driven by inflation. Luxury hotels in Metro Manila have already experienced significant ADR growth, surpassing pre-pandemic levels. This trend, coupled with the slow return of international travelers and rising operational costs, has made it challenging for hotels to generate profits.

The Department of Tourism (DOT) has projected inbound arrivals to reach 11.5 million and domestic trips to reach 137.5 million by 2028. However, the current National Tourism Development Plan (NTDP) lacks a clear identification of the number of hotels needed to accommodate these projected numbers. To address this, the DOT is working with the Philippine Hotel Owners Association to develop a strategic action plan for the hotel industry. The plan aims to identify incentives for hotel investments, required facilities, and suitable locations for construction.

It is crucial for the government and relevant stakeholders to address the rising cost of vacationing in the Philippines to ensure sustainable tourism growth. Efforts should be made to encourage the construction of more hotels, especially in popular tourist destinations beyond Metro Manila. Collaboration between the public and private sectors is essential to develop a comprehensive plan that addresses the challenges faced by the hotel industry, such as inflationary pressures and high funding costs. Additionally, exploring measures to promote competitive pricing, improve infrastructure, and enhance the overall tourism experience can help attract both domestic and international travelers.

The Philippines has immense potential as a tourist destination, offering diverse attractions and natural beauty. However, the stakes are high, as a shortage of affordable, quality accommodations could severely constrain the growth of the tourism industry—a critical driver of economic development, job creation, and foreign exchange earnings. Decisive action is needed now to avert this looming crisis and unlock the full potential of the Philippines as a premier travel destination.

Related Topics

Philippines as a global tax leader.

• Joel L. Tan-Torres

Crossed the line

• Siegfred Bueno Mison, Esq.

Philippines nears comprehensive energy security with landmark LNG collaboration

Planet vs. Plastics: Earth Day 2024’s call to action

• Atty. Jose Ferdinand M. Rojas II

‘Planet vs Plastics’: Transitioning to circular economy 

• Dr. Selva Ramachandran

Insurance transformation

• KPMG Perspectives

Creating connections through arts and culture

• Rowena Capulong Reyes, PhD

Filipino beauty brand invites public to talk via a billboard

• Dinna Chan Vasquez

The boyish charms of C de O

• Miss Charlize

Happiness for everyone

• Rick Olivares
• April 21, 2024

SCABS as a leadership tool

• Octavio Peralta
• April 19, 2024

Editorial Cartoon April 19, 2024

Addressing the delayed pandemic compensation for our health workers.

Judy Shaughnessy’s horrible sin

• Jena Fetalino

Showcasing Philippine history and culture through art at the Venice Biennale

• Sonny M. Angara

Non-deployment as basis for total and permanent disability benefits

• Atty. Dennis Gorecho

A poet’s history of home: Mapping according to Dinah Roma

• Tito Genova Valiente

As the city sizzles

• Ma. Stella F. Arnaldo

Dramatizing duplicity in ‘Ripley’

Cross crossing out my altis.

• Al S. Mendoza

Input your search keywords and press Enter.

• The Star ePaper
• Subscriptions
• Manage Profile
• Change Password
• Manage Logins
• Manage Subscription
• Transaction History
• Manage Billing Info
• Manage For You
• Manage Bookmarks
• Package & Pricing

Lack of Chinese visitors hinders Philippines tourism growth

Tuesday, 16 Apr 2024

Related News

Rafizi: Economy continues to strengthen along with Bursa Malaysia

Irda's rm636bil investment goal to help propel malaysia into top 30 global economies, overcapacity narrative suppresses china’s economy.

Pedestrians in Bonifacio Global City in Taguig City, Metro Manila, the Philippines, on Saturday, April 6, 2024. The Philippines trimmed its economic growth forecasts for this year and next amid stubborn inflation and elevated interest rates, while widening its fiscal deficit estimates to support higher spending. Photographer: Veejay Villafranca/Bloomberg

MANILA: The slow return of Chinese tourists has been holding back travel recovery in the Philippines, the Bank of America (BofA) says in a report that highlights the “uneven” recovery in Asia tourism.

As the region’s tourism sector enters the last leg of recovery from the pandemic’s onslaught, BofA said the Philippines, China, Hong Kong and Taiwan were the “laggards” in Asia as tourist arrivals in these destinations have yet to reach pre-pandemic levels.

In the Philippines, BofA noted that foreign visitor arrivals were still 76% of pre-pandemic levels as of February this year, albeit much better than Hong Kong’s 73.7% and Taiwan’s January 2024 figure of 69.6%.

Among the laggards, BofA said China was an “outlier” after it reopened its economy much later than other Asian destinations. Data compiled by the bank showed foreign tourist arrivals in China were 36.3% below pre-pandemic level as of December 2023.

In turn, the later reopening of China’s economy weighed on tourism recovery in countries that heavily depended on Chinese holidaymakers, such as the Philippines and Hong Kong.

Data compiled by BofA showed Chinese arrivals are only tracking at 20% to 30% of pre-pandemic levels in the Philippines, below trends elsewhere in the region. And the recovery is unlikely to speed up anytime soon, with BofA noting the “changing preferences” of Chinese consumers.

“The typical Chinese traveller these days is increasingly interested in exploring domestic cities that offer unique cultural experiences. This has also slowed their return to international destinations,” BofA said.

“The return of Chinese travellers might be a gradual process,” it added.

On the flip side, tourism is now back to pre-pandemic vigor in Japan and Vietnam as they benefitted from the weakness of their currencies.

BofA said Malaysia, Singapore and Thailand were among the “hopefuls” in Asia after seeing a sharp rebound in international arrivals in recent months.

Meanwhile, India, South Korea, Australia, New Zealand and Indonesia were in the “middle of the pack” whose visitor entries are tracking at 80% to 85% of pre-pandemic levels so far.

For this year, the Bangko Sentral ng Pilipinas (BSP) forecasts tourism receipts – a source of US dollars for the economy – to grow by 50%.

That would contribute to the projected US$700mil surplus in 2024 which, if realised, would be smaller than the US$3.7bil windfall recorded in 2023.

Moving forward, BofA said Asian economies with falling currencies would continue to attract more foreign visitors that are looking for cheap holiday destinations.

“Foreign exchange colleagues expect currencies in Asia to strengthen across the board against the US dollar over the next two years but remain weak by historical standards,” BSP said. — The Philippine Daily Inquirer/ANN

Found a mistake in this article?

Report it to us.

Thank you for your report!

Leading the fight against payment scams

Next in business news.

Trending in Business

Air pollutant index, highest api readings, select state and location to view the latest api reading.

• Select Location

Source: Department of Environment, Malaysia

Others Also Read

Best viewed on Chrome browsers.

We would love to keep you posted on the latest promotion. Kindly fill the form below

Thank you for downloading.

We hope you enjoy this feature!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy .

Lack of Chinese visitors hinders PH tourism growth

Photo by Jack Jarilla

The slow return of Chinese tourists has been holding back travel recovery in the Philippines, Bank of America (BofA) said in a new report that highlighted the “uneven” recovery in Asia tourism.

As the region’s tourism sector enters the “last” leg of recovery from the pandemic’s onslaught, BofA said the Philippines, China, Hong Kong and Taiwan were the “laggards” in Asia as tourist arrivals in these destinations have yet to reach prepandemic levels.

In the Philippines, BofA noted that foreign visitor arrivals were still 76 percent of prepandemic levels as of February this year, albeit much better than Hong Kong’s 73.7 percent and Taiwan’s January 2024 figure of 69.6 percent.

Among the laggards, BofA said China was an “outlier” after it reopened its economy much later than other Asian destinations. Data compiled by the bank showed foreign tourist arrivals in China were 36.3 percent below prepandemic level as of December 2023.

In turn, the later reopening of China’s economy weighed on tourism recovery in countries that heavily depend on Chinese holidaymakers, such as the Philippines and Hong Kong.

Data compiled by BofA showed Chinese arrivals are only tracking at 20 to 30 percent of prepandemic levels in the Philippines, below trends elsewhere in the region. And the recovery is unlikely to speed up anytime soon, with BofA noting the “changing preferences” of Chinese consumers.

“The typical Chinese traveler these days is increasingly interested in exploring domestic cities that offer unique cultural experiences. This has also slowed their return to international destinations,” BofA said.

“The return of Chinese travelers might be a gradual process,” it added.

On the flip side, tourism is now back to prepandemic vigor in Japan and Vietnam as they benefited from the weakness of their currencies.

BofA said Malaysia, Singapore and Thailand were among the “hopefuls” in Asia after seeing a sharp rebound in international arrivals in recent months. Meanwhile, India, South Korea, Australia, New Zealand and Indonesia were in the “middle of the pack” whose visitor entries are tracking at 80 to 85 percent of prepandemic levels so far.

For this year, the Bangko Sentral ng Pilipinas (BSP) forecasts tourism receipts—a source of dollars for the economy—to grow by 50 percent. That would contribute to the projected $700 million dollar surplus in 2024 which, if realized, would be smaller than the $3.7 billion windfall recorded in 2023.

Moving forward, BofA said Asian economies with falling currencies would continue to attract more foreign visitors that are looking for cheap holiday destinations.

“FX colleagues expect currencies across Asia to strengthen across the board against the USD over the next two years but remain weak by historical standards,” the Bank said.

Subscribe to our daily newsletter

“We therefore think countries with weaker currencies, particularly Japan, will continue to attract tourists in the near and medium term,” it added. INQ

Curated business news

Disclaimer: Comments do not represent the views of INQUIRER.net. We reserve the right to exclude comments which are inconsistent with our editorial standards. FULL DISCLAIMER

© copyright 1997-2024 inquirer.net | all rights reserved.

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.

You are using an outdated browser. Please upgrade your browser to improve your experience.

Please select region

• National Capital Region
• Cordillera Administrative Region
• Ilocos Region
• Cagayan Valley
• Central Luzon
• Bicol Region
• Western Visayas
• Central Visayas
• Eastern Visayas
• Zamboanga Peninsula
• Northern Mindanao
• Davao Region
• SOCCSKSARGEN
• Caraga Region

Tourism chief highlights prospects of collaboration in Iloilo

No. of Shares:

Currently viewed by: Marcus Rosit

• by Liez'l Marie Lamasan-Ejeda
• Apr. 22, 2024 1:56 pm in News

ILOILO CITY -- Potential areas of collaboration between Iloilo and the Department of Tourism (DOT) are in the pipeline, highlighting the booming tourism industry.

Tourism Secretary Christina Garcia Frasco met with Iloilo City Mayor Jerry Treñas for a courtesy meeting where they tackled partnerships on tourism infrastructure and route development initiatives for Iloilo to attract more visitors.

Frasco was here in Iloilo City on April 5 during the National Tourism Development Plan (NTDP) 2023-2028 rollout for the Visayas cluster.

In the agency’s Facebook post, the DOT chief revealed that Iloilo was the “most appropriate venue” to roll out the NTDP, also known as “The Plan,” seeing the bullish prospects that the city and province have in terms of tourism development that are being prioritized by the local government units.

“So, I come here with great admiration for all the initiatives and also with our collective congratulations for your recent designation as a UNESCO Creative City for Gastronomy,” Secretary Frasco told Mayor Treñas.

To note, Iloilo City’s delectable Ilonggo cuisines, marked by flavors of culture and creativity, paved the way to UNESCO’s recognition as the country’s first Creative City for Gastronomy.  

It is now part of the 350 cities in more than 100 countries listed on the UNESCO Creative Cities Network (UCCN) in the fields of crafts and folk arts, design, film, gastronomy, literature, media arts, and music.

Frasco also invited Treñas and the city council to attend the hosting of the Philippines to the first United Nations Tourism Regional Gastronomy Forum which will be held in Cebu in June, as the country also boosts its gastronomy tourism portfolio.

For his part, Treñas lauded the efforts of the DOT, saying that “programs of a city or a department can only be implemented successfully if you have good people.”

The rollout of the NDTP, on the other hand, serves as the national government’s blueprint for establishing a Philippine tourism industry that delves into Filipino culture, heritage, and identity in the next five years.

According to DOT, this also functions as a guidebook of the industry on how to put sustainability mechanisms in place, as well as to ensure that the industry is robust and globally competitive.

“In the spirit of President Marcos’ economic aspirations for the Philippines, the NTDP is not just the plan, but a dynamic framework that requires all of us, our active engagement from policymaking to grassroots implementation,” Frasco said.

Inputs from stakeholders across the country, such as the DOT, its offices and attached agencies, other national government offices, various local governments, including those from tourism destinations, private sector representatives from various industry groups, academe, and non-governmental organizations, formed part in the development of the NTDP.  

The plan aims to generate livelihood opportunities for 6.3 million Filipinos by 2028, which is nearly a share of 12.9 percent of the country’s total workforce.

Meanwhile, Iloilo Provincial Governor Arthur R. Defensor, Jr. conveyed his support for the rollout of the NTDP 2023-2028 in the Visayas cluster, quoting that the province is all set to collaborate with the DOT.

“We are very thankful for this rollout because our work here today is to see where we are in this National Development Plan and our role and participation in this tourism development plan of the Department of Tourism,” Defensor said. (AAL/LMLE/PIA Iloilo/DOT)

• National Tourism Development Plan

About the Author

Liez'l Marie Lamasan-Ejeda

Write to live. Live to write. 

Related Articles

Edutourism to promote Ilonggo cultural heritage

Related news.

• Most Viewed
• Trending Features
• Archived Features

Feedback / Comment

Get in touch, philippine information agency.

The Philippine Information Agency is the official public information arm of the Government of the Republic of the Philippines. The PIA works with the Office of the President, national government agencies, and other public sector entities in communicating their programs, projects, and services to the Filipino people. The agency has a regional office in all 16 regions and has an information center in 78 provinces across the Philippines.

Government Links

• The President
• Presidential Communications Office
• APO Production Unit, Inc.
• Bureau of Communications Services
• Freedom of Information
• People's Television Network, Inc.
• Philippine Broadcasting Services
• Philippine News Agency
• Presidential Broadcast Staff - Radio Television Malacañang
• Office of the Vice President
• Supreme Court
• Senate of the Philippines
• House of Representatives

+63 2 8 926 5129

[email protected]

Republic of the Philippines

All content is in the public domain unless otherwise stated.

Increased tourist exchanges eyed as Philippines, Qatar expand tourism ties

The Department of Tourism (DOT) is expecting increased tourist exchanges between the Philippines and Qatar as the two countries renewed their Memorandum of Understanding (MOU) on Monday, April 22.

During the state visit of the Qatar Amir to the Philippines, Tourism Secretary Christina Garcia Frasco and State Minister for Foreign Affairs H.E. Soltan bin Saad Al-Muraikhi signed the Memorandum of Understanding (MOU) at the Malacañang Palace, in the presence of President Marcos and Qatar Amir HH Sheikh Tamim bin Hamad Al-Thani, as one of the agreements exchanged.

“Fortifying tourism cooperation between the Philippines and Qatar by way of signing this Memorandum of Cooperation forges a stronger partnership for increased tourism exchanges between our nations,” Frasco said in a statement.

According to the MOU, the Philippines and Qatar have committed to collaboratively fostering tourist inflows into both nations, enhancing cooperation among travel and tourism agencies, and other entities to bolster tourist exchanges and promotions. Additionally, they aim to establish conducive conditions for the movement and communication of visiting tourists.

The DOT said it also solidifies the shared commitment of both countries to stimulate tourism investments and facilitate the exchange of organizational expertise, knowledge, statistics, and best practices. As such, it outlines plans to facilitate familiarization visits for media and tourism experts and to enhance the skills of tourism operators, employees, and specialists through seminars and specialized training sessions.

Regarding business events, the DOT said both countries have agreed to promote the holding of various business events including exhibitions and conferences attractive to tourists, promote cooperation between other relevant exhibitions and conferences, and organizing agencies; encourage the exchange of organizational experiences in the field of business events; encourage familiarization visits in the field of business; exchange legislations and regulations; and provide possible logistical support at the international level for hosting exhibitions and international conferences.

The tourism department said a joint working team between the Philippines and Qatar will be formed to undertake and set up the work program, execution, follow-up, and evaluation of the activities in line with the implementation of the provisions of the agreement.

Frasco described the MOU as a "significant step forward," unlocking the wealth of opportunities for growth as the two countries explore new avenues for collaboration, particularly in the aspects of tourism and business events.

Philippines’ renewed tourism collaboration with Qatar, she said, aligns with the country’s approved National Tourism Development Plan (NTDP) 2023-2028, where Meetings, Incentives, Conventions, and Exhibitions (MICE) is identified as a strategic tourism product essential in the actualization of our President’s vision for a tourism powerhouse in Asia.

“Aside from being blessed with natural wonders and rich cultural experiences, the Philippines is home to world-class MICE facilities, not to mention the country’s biggest strengths – our Filipino workers who are always willing to go the extra mile to extend warmth and hospitality to our guests. Cooperation in the field of tourism presents significant opportunities for Qatar and the Philippines to leverage each other's strengths and jointly expand our respective MICE offerings, contributing to our region's and globally recognized MICE offerings,” said Frasco.

The agency said it has been actively enhancing its Muslim-friendly and halal tourism offerings to align with the National Tourism Development Plan's goal of promoting diversified tourism products.

In June 2023, the Philippines received recognition as the Emerging Muslim-friendly Destination of the Year (Non-OIC) at the esteemed Halal in Travel Global Summit 2023.

Per the data of the DOT, the Philippines welcomed 10,438 visitors from Qatar in 2023. As of April 20, 2024, visitor arrivals for this year have already reached 3,784 from January to April.