Travel, Tourism & Hospitality

Tourism industry in the Philippines - statistics & facts

Domestic tourism leading the industry in times of uncertainty, outlook of the tourism industry, key insights.

Detailed statistics

Value of domestic tourism spending APAC 2022, by country

Value of international tourism spending APAC 2022, by country

Estimated online travel and tourism revenue Philippines 2023, by category

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Current statistics on this topic.

Gross value added of the tourism industry Philippines 2019-2022, by type

Number of domestic tourism trips Philippines 2012-2021

Leisure Travel

International tourist arrivals Philippines 2012-2023

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  • Coronavirus (COVID-19) pandemic in the Philippines
  • Aviation industry in the Philippines
  • Passenger transport in the Philippines
  • Food service industry in the Philippines

Recommended statistics

  • 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

International tourist arrivals worldwide 2019-2022, by subregion

Number of international tourist arrivals worldwide from 2019 to 2022, by subregion (in millions)

Value of domestic tourism expenditure in the Asia-Pacific region in 2022, by country or territory (in billion U.S. dollars)

Value of international tourism expenditure in the Asia-Pacific region in 2022, by country or territory (in billion U.S. dollars)

Travel and tourism's direct contribution to employment APAC 2022, by country

Direct contribution of travel and tourism to employment in the Asia-Pacific region in 2022, by country or territory (in millions)

Estimated revenue on online travel and tourism services in the Philippines in 2023, by category (in million U.S. dollars)

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 2019-2023
  • Premium Statistic Tourism expenditures Philippines 2022, by travel type
  • Premium Statistic Tourism sector employment figures Philippines 2012-2022

Gross value added generated from the tourism industry in the Philippines from 2019 to 2022, by type (in billion Philippine pesos)

Share of tourism GDP Philippines 2012-2022

Share of direct gross value added of the tourism industry to the GDP of the Philippines from 2012 to 2022

Tourism industry growth rate Philippines 2018/19-2021/22, by sector

Annual growth rate of the gross value added generated from the tourism industry (GVATI) in the Philippines from 2018/19 to 2021/22, by sector

Tourism receipts Philippines 2019-2023

Tourism receipts in the Philippines from 2019 to 2023 (in billion Philippine pesos)

Tourism expenditures Philippines 2022, by travel type

Total value of tourism expenditures in the Philippines in 2022, by type of travel (in billion Philippine pesos)

Tourism sector employment figures Philippines 2012-2022

Total number of people employed in the tourism industry in the Philippines from 2012 to 2022 (in millions)

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

Total number of international tourist arrivals to the Philippines from 2012 to 2023 (in millions)

Tourist arrivals Philippines 2023, by country of residence

Leading source countries of foreign tourist arrivals in the Philippines in 2023 (in 1,000s)

Expenditure value in inbound tourism Philippines 2021-2022, by type

Total value of expenditure in inbound tourism in the Philippines in 2021 and 2022, by type (in billion Philippine pesos)

Number of inbound overnight tourists Philippines 2012-2021

Number of inbound overnight visitors in the Philippines from 2012 to 2021

Average length of stay of inbound tourists Philippines 2012-2021

Average length of stay of inbound tourists in the Philippines from 2012 to 2021 (in days)

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

Total number of domestic tourism trips in the Philippines from 2012 to 2021 (in 1,000s)

Domestic passenger count Philippines 2023, by airline

Number of domestic passengers in the Philippines in 2023, by airline (in 1,000s)

Household expenditure share of domestic tourism spending Philippines 2012-2022

Domestic tourism expenditure as a share of household final consumption expenditure in the Philippines from 2012 to 2022

Domestic tourism expenditures Philippines 2012-2022

Total value of domestic tourism expenditures in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Domestic tourism expenditures Philippines 2020-2022, by product

Total value of expenditure in domestic tourism in the Philippines from 2020 to 2022, by product (in billion Philippine pesos)

Outbound tourism

  • Premium Statistic 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

Number of international tourist departures in the Philippines 2014-2029

Number of international tourist departures in the Philippines from 2014 to 2029 (in millions)

Outbound tourism expenditures Philippines 2020-2022, by segment

Total value of expenditure in outbound tourism in the Philippines from 2020 to 2022, by segment (in billion Philippine pesos)

Expenditures on accommodation services in outbound tourism Philippines 2012-2022

Value of expenditures on accommodation services for visitors in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Expenditures on food and beverage services in outbound tourism Philippines 2012-2022

Value of expenditures on food and beverage serving services in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Expenditures on travel agency services in outbound tourism Philippines 2012-2022

Value of expenditures on travel agencies and other reservation services in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Accommodation

  • Premium Statistic Overnight travelers Philippines 2022, by type
  • Premium Statistic 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 Statistic Revenue of the vacation rentals industry in the Philippines 2019-2028

Overnight travelers Philippines 2022, by type

Number of overnight travelers in the Philippines in 2022, by type (in millions)

Revenue of the hotels industry in the Philippines 2019-2028

Revenue of the hotels market in the Philippines from 2019 to 2028 (in million U.S. dollars)

Average hotel room rates Metro Manila Philippines 2021-2023, by star classification

Average room rates of hotels in Metro Manila in the Philippines from 2021 to 2023, by star classification (in U.S. dollars)

Highest overnight room rates of hotels in Metro Manila, Philippines 2023, by city

Maximum overnight room rate of hotels in Metro Manila in the Philippines as of June 2023, by city (in Philippine pesos)

Revenue of the vacation rentals industry in the Philippines 2019-2028

Revenue of the vacation rentals market in the Philippines from 2019 to 2028 (in million U.S. dollars)

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WTTC’s Latest Economic Impact Report Reveals Significant Recovery in the Philippines Travel & Tourism Sector in 2021

tourism sector in philippines

Travel & Tourism jobs in the Philippines increased by 20.5%

Fourth fastest Travel & Tourism GDP growth rate for any country in the world in 2021

MANILA, Philippines: The World Travel & Tourism Council’s latest Economic Impact Report revealed last year the Philippine’s Travel & Tourism contribution to the nation’s economy climbed 129.5.% year on year, to reach US$ 41 billion.

Following an 80% decline, this impressive rise saw it ranked as the world’s fourth fastest growing economy during 2021.

News of the sector’s growing revival from the pandemic was revealed today by Julia Simpson, President & CEO of the World Travel & Tourism Council ( WTTC ), which represents the global Travel & Tourism private sector, at its prestigious Global Summit in the Philippines.

It was delivered in the capital, Manila, before more than 1,000 delegates from across the global Travel & Tourism sector, including CEOs, business leaders, government ministers, travel experts and the international media.

WTTC’s Economic Impact Report (EIR) for the Philippines shows that in 2021, the sector supported 7.8 million jobs, representing a substantial 20.5% rise in 2020, compared with a global increase of 6.7%.

Before the pandemic, the Philippines Travel & Tourism sector’s contribution to GDP was ​​22.5% of the total economy (worth US$92.6 billion). However, due to damaging travel restrictions it then plunged by 80.7% to a mere US$ 17.8 billion, dropping to just a 4.8% share towards the country’s GDP.

But in 2021 this rose to US$ 41 billion, representing a 10.4% share of the nation’s total economy, which signals the recovery of the sector is well underway.

The latest EIR also takes a forward look at the sector with the global tourism body forecasting that the Philippines Travel & Tourism contribution to GDP will grow by 6.7% over the next decade, exceeding the expected country's overall economy average growth rate of just 5.6%.

Julia Simpson, WTTC President & CEO, said: “Our latest EIR for the Philippines signals the astonishing recovery of the country’s Travel & Tourism sector.

“Resulting in a massive employment boost for the sector, leading to the recovery of 1.3 million more jobs compared to the previous year. Our expert analysis shows that the economy has turned a corner and is firmly on the road to recovery.”

As a result, WTTC forecasts that the Philippines Travel & Tourism contribution to GDP could be worth in excess of US$ 155 billion in 2032, accounting for 21.4% of the whole economy.

With Travel & Tourism employment forecast to grow annually by an average of 3% over the next 10 years, nearly three million new jobs could be created, accounting for 21.5% of all jobs in the Philippines.

WTTC’s 2022 EIR marks a vast change in fortunes for the embattled Travel & Tourism sector in the country, which was left reeling by the impact of the pandemic but is now firmly on the road to recovery.  

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To Build Up Tourism, Philippines Loosens Pandemic Restrictions For Filipinos

Ashley

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.

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Oxford Business Group

What the new normal means for the Philippines' tourism industry

The Philippines | Tourism

The global tourism industry has been hit hard by the Covid-19 pandemic, as border closures and travel restrictions prevented tourists from venturing overseas. In emerging markets such as the Philippines the slump in international tourism took a heavy toll on local communities that depend on the industry for their livelihoods, as well as starved these countries of a vital source of foreign exchange. Tourism generated P4.7trn ($93.5bn) for the Philippine economy in 2019 and supported nearly a quarter of all jobs in the country, either directly or indirectly.

After attracting a record of nearly 8.3m international tourists in 2019, the government was targeting 9.2m arrivals in 2020 before the pandemic hit. In the wake of a strict nationwide lockdown imposed in March, visitor numbers decreased by 62.2% in the first five months of the year compared to the same period in 2019. As of December 2020 the suspension of tourist visas was still in place, meaning full-year figures are likely to be considerably lower than previous years. Nevertheless, there is some hope that the reopening of domestic tourism could build the foundations for a recovery in 2021.

In consultation with key stakeholders, in April 2020 the Department of Tourism (DOT) launched the Tourism Response and Recovery Programme (TRRP). Together with two stimulus bills passed that year, the TRRP outlines both fiscal and non-fiscal support measures for tourism-related businesses to help them survive the difficult economic period and be ready to capitalise on new opportunities once the pandemic wanes. The DOT also announced that, in partnership with the Development Bank of the Philippines and the Land Bank of the Philippines, it would extend low-interest loans to tourism enterprises affected by the crisis. Moreover, the most recent of the stimulus bills – known as the Bayanihan to Recover as One Act, or Bayanihan 2 – earmarked P10bn ($198.9m) for tourism, including P6bn ($119.3m) for loans and subsidies for micro-, small and medium-sized enterprises (MSMEs).

Domestic Potential

Central to the recovery strategy is the initial resumption of domestic tourism as a prelude to the reopening to international tourists in 2021. Outbound Filipino tourists spent $616.9bn abroad in 2018, so it is hoped that at least some of this expenditure will be channelled into the domestic market. To help facilitate the safe resumption of domestic travel, the TRRP outlines stringent health protocols that operators and other sector players must follow in order to accept guests.

Starting in late October 2020 Filipinos were permitted to travel abroad for leisure purposes, but with most international borders still closed and the pandemic ongoing, few are likely to do so in the short term. This has created an opportunity for local destinations that are willing to accept an influx of visitors from other regions of the country.

Although destinations have been permitted to accept domestic tourists since June 1, 2020, many local government units (LGUs) were initially slow to reopen due to fears of imported Covid-19 cases despite the protocols outlined by the DOT. However, more destinations announced reopening plans as the year progressed. The island destination of Boracay reopened to domestic tourists on October 1, with hotels permitted to operate at 50% capacity and visitors required to pass a PCR test 72 hours before departure. Tourists are also required to register with the provincial government to obtain a QR code for contact tracing purposes.

El Nido in Palawan agreed to reopen to domestic tourists from October 30, but initially just nine hotels in the area were permitted to accept guests – with most of them high-end resorts that are out of the price range of most Filipinos. Elsewhere, Bohol, another popular island destination, reopened to domestic tourists on November 15 under similar conditions to Boracay. Visitors must choose from itineraries provided by the local authorities and cannot opt for independent tours. Meanwhile, the surfing capital of Siargao reopened on November 23, with flights resuming on December 1. Visitors to the island are required to show a negative PCR test taken 48 hours before arrival, and will be asked to take an antigen swab upon arrival if the PCR test was taken more than 48 hours before. In addition to these islands, tourist spots within driving distance of Manila began to open to visitors from beyond their immediate region in the second half of 2020, although the rules regarding tests and travel requirements were dependent on LGUs.

“The tourism industry is looking at a V-shaped rather than a U-shaped recovery due to growing, pent up demand for travel,” Aileen Clemente, chairman and president of Rajah Travel, told OBG. “The most significant barrier to overcome is the lack of harmonisation or implementation of safety and travel protocols across the different regions. This prevents seamless travel across different parts of the Philippines. The second biggest barrier is the requirement to quarantine in some regions instead of undertaking a pre-travel Covid-19 test.”

To better understand the sentiments of Filipinos towards domestic travel, stakeholders such as the DOT, Tajara Leisure and Hospitality Group and travel platform Experience Philippines conducted several surveys between March and May 2020. The main insights from their surveys include the fact that travellers are likely to opt for rural, secluded and natural areas as well as beaches over mainstream and urban centres; that they are likely to want customised experiences; and that health and safety protocols, as well as cost, will be key considerations.

Going Digital

Beyond the stimulation of domestic tourism, efforts have been made to digitalise the tourism industry. This is not only important for facilitating contactless transactions to limit exposure to Covid-19 and effective contact tracing programmes, it also helps to promote the Philippines to international travellers looking for post-pandemic options. Through social media, even MSMEs can reach and interact with potential travellers around the world, simultaneously promoting their business while showcasing various attractions and growing the country’s brand recognition.

Such individual efforts can complement government promotional activities. In 2020 official promotional videos encouraging tourists to “Stay at home, dream, and wake up in the Philippines” were released, featuring famous sceneries and activities throughout the country. The DOT’s Travel from Home initiative provided virtual backgrounds of famous Philippine destinations to be used on video conferencing platforms. Elsewhere, the administration of the Walled City of Intramuros partnered with Google Arts and Culture to create a website that allows users to virtually tour 17 museums.

Moreover, the DOT held webinars for stakeholders throughout the year to help them adapt to the new normal, with digitalisation a key theme. Operators can also make use of Rajah Travel’s Tourism Knowledge Centre, which features digital tools that can help manage visitor flows and facilitate contactless transactions. In the long run, digital transformation can enhance the competitiveness of the Philippine tourism sector. As travel resumes, online booking platforms and QR codes are likely to become increasingly common, which will ease the process for tourists and make operators more accessible to the international market.

Take Flight

Looking ahead, positive news around Covid-19 vaccine trials in late 2020 could bode well for the resumption of international travel in 2021. By the end of 2020 some destinations in the region had begun to cautiously open to international tourists. For example, Thailand began offering 60-day visas for foreign tourists in November, with applicants having to show a minimum bank balance, adequate medical insurance and be willing to quarantine for 14 days. Singapore and Hong Kong also agreed to open Asia’s first so-called travel bubble in November, allowing residents to travel freely between both destinations. However, in a sign of the ongoing challenges of the pandemic, the opening of the bubble was postponed for two weeks on November 21 amid a surge of Covid-19 cases in Hong Kong.

The Philippines has been cautious in opening to foreign arrivals and had yet to give official indication of when the issuance of tourist visas would resume as of late November 2020. Rajah Travel believes the short-haul market will be the first to recover once international tourism restarts, with the source markets of Japan, South Korea and Taiwan likely to lead the way. It is hoped that digitalisation, combined with the experience of providing a safe environment for domestic tourists, will allow operators to embrace more opportunities in the new normal.

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Philippines Tourism Industry

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

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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.

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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.

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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.

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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.

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  • March 16, 2023

Tourism in the Philippines: Exploring Opportunities and Overcoming Challenges

Tourism in the Philippines

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 .

Beach View of Boracay, Philippines

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.

Mayon Volcano, Albay, Philippines

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.

Vigan City, Ilocos Sur, Philippines

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.

Filipinos' 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.

Filipinos' Level of Safety When Traveling Internationally With COVID-19

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.

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Impact of COVID-19 on the Philippine Tourism industry

Introduction.

Without a doubt, the tourism industry is among the sectors that have been greatly affected by the COVID-19 pandemic. The closing of borders, airports, and hotels as well as restrictions on mass gatherings, land travel and related services across the world put around 100 to 120 million jobs at risk, as estimated by the World Tourism Organization.

In the first quarter of 2020, the period when the travel restrictions and lockdowns in most countries started, international tourist arrivals declined by 22% resulting in an estimated loss of US$80bn in global tourism receipts. In such period, 97 destinations have totally or partially closed their borders for tourists, 65 destinations have suspended international flights totally or partially, and 39 destinations were implementing the closing of borders (i.e., banning the arrivals from specific countries).

International tourist arrivals by region in Q1 2020

In the Philippines, the government closed the airports in Luzon on 20 March as part of the Enhanced Community Quarantine (ECQ) that started in the island on 16 March. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. In other countries, travel restrictions and measures have started as early as January of this year, and have impacted the Philippine international tourist arrivals. Domestic tourists, on the other hand, also limited their travel for fear of contracting COVID-19. The Department of Tourism reported that international tourist receipts in the first quarter of the year declined to PHP85bn, 36% lower than the revenues in the same period last year.

To understand the impact of COVID-19 on the Philippine tourism industry, PwC Philippines, together with the Department of Tourism, surveyed 247 decision makers across the different subsectors in May 2020.

Forty-four percent of the respondents are from the tourism services sector (i.e., travel agencies, bookings, tours, etc.), and 34% are from the accommodations sector. According to the survey, 97% say that COVID-19 has the potential for significant impact on their business operations, and is causing them great concern. Such finding is not surprising given that only businesses related to essential services and products were the only enterprises allowed to operate during the ECQ. Because of the low demand and restrictions, majority of the respondents say that they temporarily stopped offering a service/product, reduced their level of operations, and reduced the employee headcount.

Over 70% of the respondents belong to the tourism services and accommodations subsectors

Tourism-related businesses have opted to temporarily stop offering their products/services during the ecq, either due to restrictions or low demand, impact of covid-19 outbreak on the philippine tourism industry.

Given the travel restrictions and closure of businesses, 88% of the respondents expect losses of over 50% of their 2020 revenues. Sixty-three percent of the respondents also say that they expect their businesses to normalize within six months to over a year. Such findings are worrying because the tourism industry contributed 12.7% of the country’s GDP in 2019, and provided 5.71 million jobs in the same year.

Globally, the World Travel and Tourism council estimated that it could take up to ten months for the industry to recover.

Nine months since the virus was first detected in China, there is still no sign that the spread is slowing down. The road to recovery can take longer than initially anticipated. Fitch forecasts that tourist arrivals and tourism receipts will not go back to pre-COVID levels even five years hence.

The country had a stellar performance in 2019 with 8.3 million tourist arrivals and PHP550.2bn in international tourism receipts. Latest estimates show that 2020 tourist arrivals and international tourism receipts will go down to 3.9 million and PHP279.5bn, respectively.

Note: f - forecast Source: Fitch

Recovering from the pandemic

To help recover from the pandemic, 78% of the respondents say that they need up to PHP5m in additional funding to help normalize their operations. Majority say that they need such funds for working capital requirements, marketing fund to rebuild their brands, and refinancing.

With 91% of the respondents coming from the micro, small, and medium enterprises (MSMEs), it’s not surprising that 73% are planning to avail of government grants and subsidies to help revive their operations. 

Many businesses are banking on government subsidies and grants as additional funding

Sources of funds to be obtained in the next 3 to 6 months, most businesses need funding to normalize their operations. it will be mainly used for working capital, and marketing and promotions. , around 78% need up to php5m in additional funding to normalize their operations after ecq, over 50% of the respondents plan to use their new funding to support working capital requirements, and rebuild their brand, mitigating the impact of covid-19.

To help businesses and individuals mitigate the impact of COVID-19, the country’s House of Representatives approved House Bill 6815 or the proposed Philippine Economic Stimulus Act (PESA) in June 2020. Once passed into law, an economic stimulus package amounting to PHP1.3 trillion will be provided in the next four years to fund the COVID-19 testing, wage subsidies, and assistance to MSMEs. Under the bill, PHP58bn will be appropriated to DOT-accredited tourism enterprises for the following programs:

  • Interest-free loans or issuance of loan guarantees with terms of up to five (5) years for maintenance and operating expenses
  • Credit facilities for upgrading, rehabilitation, or modernization of current establishments or facilities to be compliant with new health and safety standards
  • Marketing and product development promotions and programs
  • Grants for education training, and advising of tourism stakeholders for new normal alternative livelihood programs
  • Utilization of information technology
  • Other relevant programs, including infrastructure to mitigate the economic effects of COVID-19 on the tourism industry

Restarting the tourism sector

With the absence of revenues, majority of the respondents say that they can only sustain their operations for up to six months. Similarly, most of the respondents have a cash runway of up to six months.

How to restart the tourism sector after COVID-19 is one of the top questions leaders across the world are asking. In fact, 79% of the survey respondents say that they expect international tourist arrivals to decline by over 50% in 2020. A respondent shares, “I hope that the government and the Department of Tourism will be able to come up with a clear bounce back program immediately so the stakeholders may be able to make business decisions.” 

Government assistance is needed to help businesses survive the impact of the pandemic

Many tourism-related businesses can sustain their operations and cash up to 6 months only., how the government can help tourism-related businesses.

While the government is currently reviewing the possible financial assistance that may be provided to the tourism players. According to our respondents, access to customers, reasonably-priced consultants, and suppliers as among their top needs to have sustainable businesses after the ECQ.

In other countries, some of the initiatives to help restart tourism are as follows:

  • Funding to engage customers and maintain mindshare. 
  • The Singapore Tourism Board (STB) has launched a US$20m Marketing Partnership Programme. 
  • STB has also launched the SG Stories Content Fund of US$2m
  • Online training to upskill workers
  • Tools to accelerate digital transformation
  • Go To Campaign - the government will subsidize half of domestic travel costs of up to ¥20,000 per night and issue coupons that can be used at souvenir shops and elsewhere
  • Creating attractive stay content for diversifying customers, etc.
  • For Japanese consumers who purchased domestic travel products during the period via travel agents etc., coupons equivalent to 1/2 of the price (including accommodation discounts, coupons, and usage coupons for local products, restaurants, facilities, etc.) are given
  • Project to develop the capacity of entrepreneurs and personnel in tourism to improve the quality of service and build confidence for tourists
  • CCTV installation in important tourist attractions to maintain the safety of tourists in Chiang Mai, Surat Thani, Krabi, Chonburi and Phuket provinces
  • Project to promote and upgrade tourism operators to Thai tourism standards
  • Project to promote the development of accommodation for tourism in the community

The industry expects a significant decline in international tourist arrivals, and almost all consider insuring their businesses for pandemics

International tourist arrivals are expected to dramatically decline in 2020., including pandemics as part of insurance coverage.

of respondents say pandemics should be included in the coverage

Insuring businesses for any eventualities/crisis that may arise

of respondents consider insuring their businesses for crises events such as COVID-19 pandemic

Getting back in flight

The Philippines has beautiful islands that will once again attract the tourists after the pandemic. Nevertheless, the country should take this opportunity to rebuild the sector by helping the players upskill and digitalize, rethink the way they do business, and ensure compliance with safety and health standards. Promoting medical tourism and agri-tourism may be among the programs that the country can prioritize to help restart the sector.

While the Philippines is experiencing difficulties at this time, Filipinos should remember that through combined efforts and hard work in the past, the country was able to grow the tourism sector, and made it one of the top GDP contributors. With the country’s renewed commitment, Filipinos can be confident that that the tourism industry will achieve better success after this pandemic.

While tax incentives and removing barriers to financing are relevant, access to customers is the top need of the industry players

Apart from financing, majority consider access to customers as a vital component in keeping a sustainable business after the ecq, top government interventions the businesses wish to receive.

  • Tax incentivized business
  • Removing barriers to accessing financial support
  • Loan grants
  • Generate a platform for the promotion of MSMEs
  • Loan guarantee scheme that creates modest value
  • Provide a program for entrepreneurs to take up service oriented activities
  • Create a program for startups
  • Capacity building seminar

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Boosting tourism: Exploring the MICE sector in the Philippines

Clark is emerging as a robust hub for MICE-related tourism.

Clark is emerging as a robust hub for MICE-related tourism.

Renowned for its white sand beaches, vibrant coral reefs, and mountain ranges, the Philippines captivates travelers from around the world.

Yet amid its abundant natural beauty lies an often-overlooked asset: a promising meetings, incentives, conferences, and exhibitions (MICE) sector that offers a wealth of opportunities for business and leisure alike.

Pivotal aspect of tourism

The MICE sector represents a pivotal aspect of tourism, drawing focus toward business-oriented events like conferences, seminars, trade shows, and incentive travel programs. These gatherings serve as a hub for professionals across various industries, fostering collaboration, knowledge exchange, and lucrative business opportunities.

Unlike traditional tourism, MICE events can generate higher economic returns for host destinations. It holds potential to drive growth, bolster revenue streams, and enhance destination development efforts. But how can we harness and amplify this potential to elevate the performance of MICE in the Philippines?

With integrated resorts and various facilities being built within Clark Freeport Zone, it is also now becoming a preferred destination for MICE events.

With integrated resorts and various facilities being built within Clark Freeport Zone, it is also now becoming a preferred destination for MICE events.

Venue selection

Considering the demanding schedules of business professionals attending such events, organizers shoulder the responsibility of meticulous venue selection, balancing accessibility, convenience, and experiential aspects. This entails ensuring easy access to airports, transportation hubs, and a diverse range of accommodation options to cater to attendees’ varying needs.

The chosen venue must be equipped with state-of-the-art meeting rooms, conference halls, and exhibition spaces tailored to accommodate the event’s scale and format.

A robust technological infrastructure is thus essential—reliable high speed internet connectivity and audio visual equipment to facilitate smooth presentations and interactions.

Additionally, the destination should contribute to enhancing the overall experience. Optimal venues provide ample opportunities for networking, team-building activities, and cultural immersions during off-times, allowing attendees to foster connections and create lasting memories beyond the confines of the conference room.

Mactan offers an ideal ground for MICE attendees.

Mactan offers an ideal ground for MICE attendees.

Tourist behavior

Based on Q3 2023 statistics from the Department of Tourism (DOT), the average daily tourist expenditure in the Philippines amounts to P11,100, across the following various categories: 26 percent on accommodation, 24 percent on food and beverage, 21 percent on transportation, 13 percent on shopping, 11 percent on entertainment and recreation, and 5 percent on other expenses.

With this data in mind, how can local tourism effectively cater to MICE attendees?

Given that MICE events typically unfold during weekdays and culminate on weekends, and with attendees often receiving daily allowances while having their major expenses such as accommodation and food covered by their companies, they possess additional spending power and the freedom to extend their stay at the destination. By cultivating a dynamic shopping scene and offering engaging activities, local tourism destinations can entice MICE attendees to prolong their visits, thereby generating increased revenue and potentially nurturing repeat patronage in the long run.

The surge in tourist activity not only boosts job creation but also amplifies business revenue, creating a ripple effect across various sectors, from food and beverage establishments to airport services.

MICE events can generate higher economic returns for hostdestinations.

MICE events can generate higher economic returns for host destinations. (HTTPS://WWW.MICECON.PH)

Accessibility from Clark and Mactan

With 10 and 12 direct international flights, Clark and Mactan are emerging as robust hubs for MICE-related tourism.

Planned expansions aim to accommodate this growth, ensuring that nearby hotels remain accessible and accommodating. These strategic investments also encourage airlines to expand their direct flight offerings, bolstering tourism in the region.

Given increasing accessibility and the abundance of nearby attractions such as the Clark Freeport Zone and the historic Mount Pinatubo in Clark, and the pristine beaches and Magellan’s Cross in Mactan, these locations serve as ideal gateways for travelers eager to explore the diverse offerings of the Philippines. Visitors from Clark have easy access to the stunning beaches of La Union, the mountains of Benguet, and Baler, the renowned birthplace of Philippine surfing.

Mactan, meanwhile, provides convenient ferry connections to Bohol, where travelers can indulge in the island’s turquoise waters and captivating natural wonders. Siquijor, another island paradise, is also within easy reach by ferry from Cebu.

Leechiu Property Consultants has noted a surge in inquiries from clients drawn to these destinations.

The author

With its abundance of hotels, diverse tourist attractions, robust service industry, and solid infrastructure, the Philippines is primed to establish itself as a leading MICE destination in Southeast Asia.

By capitalizing on the unique strengths of Clark and Mactan gateways, by improving infrastructure, and by showcasing regional offerings, the Philippines can solidify its position as a coveted MICE destination.

The author is a manager for the Hotels, Tourism, and Leisure department of Leechiu Property Consultants Inc., the country’s premier real estate advisory firm. He holds licenses as a real estate appraiser and broker.

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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)

tourism sector in philippines

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)

tourism sector in philippines

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.

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Tourism in the Philippines

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THE PHILIPPINES IN NUMBERS

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

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Philippines lags Southeast Asian neighbors in smart tourism index

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By Beatriz Marie D. Cruz , Reporter

THE PHILIPPINES lags behind some of its Southeast Asian neighbors in terms of readiness in developing smart tourism ecosystems, hampered by high internet costs and accessibility issues in rural areas, the Asian Development Bank (ADB) said.

In a report entitled “Smart Tourism Ecosystem Development Readiness in Southeast Asia,” the Philippines received an average readiness score of 56. A score of 100 indicates a country’s ability to adopt an enabling environment for smart tourism.

Among six Association of Southeast Asian Nations (ASEAN) members in the index, the Philippines ranked fourth, behind Thailand (72), Vietnam (67) and Indonesia (66).

The Philippines was ahead of Laos (53) and Cambodia (50).

“Despite national tourism policies prioritizing digitalization backed by strong tourist and industry demand, smart tourism ecosystem development in Southeast Asia is constrained by insufficient finance and limited digital skills, urban-rural digital divides, and an evolving legal and digital policy environment,” the ADB said in the report.

Having an ecosystem that enables smart tourism boosts a country’s attractiveness as a tourist destination, the ADB said.

“The Philippines demonstrates strong gender equality, high average broadband internet and 4G coverage, and good transaction infrastructure supporting online access to finance. Additionally, the Philippines has high digital talent availability,” the ADB said in the report.

The index measured a country’s overall readiness based on two factors — enabling environment and technological readiness.

The Philippines received a score of 57 under enabling environment, which assesses a country’s tourism competitiveness and digital inclusiveness in the legal, financial, social, and geographic fronts.

The report noted Laos and the Philippines scored highest in terms of equality between men and women’s internet usage.

However, the Philippines scored the lowest among its regional neighbors in terms of the urban-rural digital divide. Digital gaps are “perpetuated by unreliable electricity and network coverage gaps, low literacy rates, unafforda-ble internet services, and language barriers,” ADB said.

The Philippines also scored below-average on tourism competitiveness, legal environment for businesses, and financing options for technological development.

The country also received a score of 55 in terms of technological readiness, second lowest among the six ASEAN members.

The Philippines received low scores in terms of average internet speed, percentage of rural households with internet access, percentage of households or businesses with a computer, mobile access affordability, and research and development for digital innovation.

Among ASEAN counterparts, the Philippines scored the lowest on broadband internet costs and availability of electronic visas (e-visa).

All six countries scored low on access to electronic payments, ADB added.

ADDRESSING ISSUES

The ADB said the Philippines needs to address the urban-rural digital divide, expand financing options, lower broadband costs, and launch an e-visa facility.

The ADB noted the Tourism department is working to close the urban-rural digital divide by allocating $2 million to local government units (LGUs) for smart tourism projects.

The Philippines also started offering e-visas to some countries in the latter part of 2023 and is working with development partners to improve its smart tourism ecosystem. The ADB recently approved funding for the Davao Public Transport Modernization Project, which will establish a smart transportation system in Davao.

Overall, the ADB said the six ASEAN members struggle over a lack of digital infrastructure investments, urban-rural gaps, and threats to data privacy and cybersecurity.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said the Philippines must differentiate its tourism sector from its ASEAN neighbors to boost its share of the global market.

“The current digital transformation makes this more difficult since now we need more technologically savvy tourism workers, if not a more educated workforce, to take advantage of the opportunities offered by the new technology,” Mr. Lanzona said in a Facebook Messenger chat.

Sherwin E. Ona, a former associate dean at the De La Salle University College of Computer Studies, said the Philippine government must adopt smart tourism policies.

“Smart tourism should adopt platforms that can capture and aggregate customer needs and demands and at the same time link supply chains. An example of this is having a single online access point for tourism destination per region or province. These smart tourism portals can link the sites, together with accommodations, dining, shopping, and transportation sites that tourists can avail,” he said in a Viber chat.

The Philippines attracted 5.45 million tourists in 2023 and is targeting 7.7 million tourist arrivals this year.

To compare, 23 million international tourists visited Thailand in 2023, while 12.6 million and 11.68 million tourists visited Vietnam and Indonesia, respectively.

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Surge in tourist arrivals straining room supply in Philippines: Report

  • Philippines

Thursday, 02 May 2024

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Philippines summons Chinese diplomat over South China Sea flare-up

Philippines summons Chinese diplomat over South China Sea flare-up

Philippines keeps schools shut as heat shows no signs of abating, china coast guard becoming 'more aggressive': philippines.

MANILA: The hotel industry may have some trouble meeting high demand this year as foreign tourist arrivals continue to outpace hotel developments, according to Leechiu Property Consultants Inc.

In its latest Property Market report, the real estate brokerage firm said tourist arrivals in the first quarter of the year reached 1.66 million, up by 18 per cent year-on-year. This marked the highest single-quarter arrivals in the postpandemic stage, it added.

“The introduction of additional direct international flights and the easing of visa restrictions for certain source markets, a strategy employed by other countries to attract more foreign tourists, contributed to the increase in arrivals,” Leechiu said.

It pointed out, however, that there may be a potential shortage in hotel supply due to construction delays and high costs of funding exacerbated by the economic impact of the Covid-19 pandemic.

To recall, the Department of Tourism aims for 7.7 million tourist arrivals this year. This is expected to grow by up to 10 percent annually until 2028.

However, Alfred Lay, Leechiu head of hotels, tourism and leisure, said the projected growth in hotel keys from 2025 to 2028 was less than 1 per cent.

The shortage may pull up room rates, and “it will become a more expensive pastime for us to travel locally and for foreigners to come here,” Lay explained.

Last year, the local hotel industry had an occupancy rate of 65.2 percent, still lower than the prepandemic average by 8 percentage points.

While upscale hotels in central business districts have yet to regain their prepandemic performance, upscale hotels have already shown resilience, according to Leechiu.

The company expects a “complete rebound” in overall hotel performance by next year.

In the meantime, Leechiu recorded a total of 24,267 keys in the pipeline across 87 hotel projects throughout the country.

Of this, 9,668 are located in Metro Manila, while the rest are in Cebu, Bohol, Boracay, Davao and Palawan.

Leechiu also reported that the real estate sector was expected to remain resilient despite the high interest rate environment as developers continue to diversify their portfolio and achieve high yields.

It said the local property market was particularly looking forward to the potential policy rate cuts that may be implemented by the Bangko Sentral ng Pilipinas (BSP) within the year.

“On the surface, the market looks calm and steady,” said Leechiu director Tam Angel. “But actually, the whole market and everyone involved—the stakeholders, BSP, developers and consultants—are working hard to keep things afloat.”

During the Monetary Board’s April 8 meeting, it maintained the BSP’s rate at 6.5 per cent to tame inflation.

Leechiu said the delay in anticipated cuts was beginning to exert pressure on the market, raising concerns on the resilience of capital values, especially in central business districts.

However, the company also pointed out that developers were now “strategically diversifying” their investments to include the industrial and tourism sectors in response to the “higher-for-longer” interest rate environment.

In turn, this investment shift could enhance yields and position for more growth opportunities.

High interest rates typically nag on the performance of property firms, as these could pull up prices and weaken demand.

Property firms are also encouraged by the International Monetary Fund’s 6.2-percent revised growth forecast for the country that was better than the 5.5-percent growth recorded last year and the 2.9-percent global average.

Still, Leechiu noted that stakeholders would monitor inflation trends and policy rate decisions to sustain market stability and growth. - Philippine Daily Inquirer/ANN

Tags / Keywords: Philippines , hotels , tourism

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Meet The Billionaire Betting Big On An Idyllic Island Retreat In The Philippines

Inside andrew tan's $720 million eco-tourism project in the country’s pristine beachside paradise., by jonathan burgos , forbes staff.

T he pitch is for tropical paradise: turquoise waters that lap a pristine shoreline fringed by lush, mist-streaked greenery. Philippine property giant Megaworld extolls on its Facebook page the virtues of Palawan island, the largest of a 1,780-island group by the same name that hangs to the left of the island nation in the Pacific. Here, Megaworld is pursuing its most complex project yet, a resort and residential estate that will be the island’s biggest real estate development to date.

On 462 hectares in San Vicente, a quiet, relatively untouched corner of Palawan’s northern coast, known for its rich biodiversity, virgin forests, steep karst cliffs and the longest white sand beach in the Philippines, Megaworld has a 15-year plan to raise a township from among the coconut trees—an ecofriendly addition, it says, to its hospitality, office, retail and residential portfolio that spans the country. When finished, Paragua Coastown will include two 10-story hotels, a residential condominium, villas, a hospital, a school, and wellness-related centers.

Megaworld, owned by billionaire Andrew Tan ’s spirits-to-property conglomerate Alliance Global Group, is pouring over 40 billion pesos ($720 million) into the venture—a tenth of what it plans to spend on building townships across the Philippines in the next five years. The company is banking on getting in on the ground floor as the island remakes itself into one of the country’s top tourist destinations. Some 1.5 million people, of which about 650,000 were overseas travelers, visited the island in 2023, nearly twice as many as the previous year, according to government figures, as tourists return to the Philippines post-Covid. (Boracay, the archipelago’s most popular resort island, had over 2 million visitors last year.) “We intend to showcase the best sustainable tourism and green living concepts by developing it into an ecotourism township,” Kevin Tan, Andrew’s eldest son and Megaworld’s executive vice president and chief strategy officer, says by email.

Andrew Tan (left), chairman of spirits-to-property conglomerate Alliance Global and his eldest son, Kevin Tan, CEO of Alliance Global.

San Vicente is seen as the next frontier in the island’s commercial boom, catching up to Palawan’s other island centers where tourism is flourishing, including its capital, Puerto Princesa City (home to the 8.2-kilometer underground river, a Unesco World Heritage site), and El Nido, a municipality comprised of small islands at Palawan’s northern tip that has in recent years become a playground for backpackers and jetsetters alike. Ayala Land, controlled by billionaire Jaime Zobel de Ayala and his family, has already made inroads as El Nido’s biggest developer, owning the 325-hectare Lio tourism estate along with four other resorts in the town’s smaller islands.

Megaworld broke ground last year on its 306-room Savoy Hotel Palawan and the nearby 189-unit Oceanfront Premier Residences tower, which are both slated to be completed in 2028. Construction of the 313-room Paragua Sands Hotel, which will open in 2029, has yet to start.

Most rooms will have water views, and the hiking trails of the Pagdanan mountain range, home to threatened wildlife such as the Philippine cockatoo, gray imperial pigeon and blue-naped parrot, are a short drive away.

Megaworld is building Paragua Coastown (left) along the coconut tree-lined (right) coastline of San Vicente, Palawan island in the Philippines.

“More than just sustainable tourism, our vision for Paragua Coastown is to be able to provide an opportunity to those who want to live the island life within a lush and sustainable landscape,” Tan says. To that end, he says Megaworld will incorporate solar and other renewable energy sources into its building design. There will be a waste-to-energy plant to supply electricity to the township as part of a new waste-management system and sewage-treatment center.

About 40% of Paragua Coastown’s land area has been earmarked for open (albeit landscaped) spaces, while a mangrove forest reserve in its boundaries will be left untouched. Megaworld also plans to plant thousands of trees on 100 hectares deforested by commercial logging, once a mainstay of the local economy, and upgrade the mostly dirt tracks used by San Vicente's 30,000 residents to a network of roads in and around the property.

Ana Margarita Lustre-Malijan, vice president at local hotelier and construction firmArlustre Group, believes such developments will be a huge boon for Palawan, bringing jobs and income to the island where about 15% of the population falls below the poverty line. It could also be the tipping point to improve accessibility to the area. There’s an airport in San Vicente, but Philippine Airlines and Cebu Pacific, two of the nation’s main airlines, don’t fly there. Getting to San Vicente means a 90-minute flight from Manila or Cebu to Puerto Princesa and a bumpy four-hour car ride across rugged terrain. Cebu Pacific CEO Michael Szucs tells Forbes Asia that the airline will consider flying to San Vicente once the Megaworld hotels are built.

Tourists visiting the Puerto Princesa underground river (top left), a Unesco World Heritage site, while a wild pig roams Coconut Beach in San Vicente. View of San Vicente's famed stretch of white-sand beach (right).

Besides attracting homegrown developers, Palawan has become a stopping point for international hospitality brands. “Palawan stands out as an attractive destination, blending cultural richness with natural landscapes,” Raj Menon, Marriott’s president for Asia Pacific excluding China, says by email. The U.S. group will add over 70 rooms this year to its recently opened 168-room Four Points by Sheraton on Sabang Beach, near Puerto Princesa’s underground river, to meet demand. American hotel chains Best Western and Wyndham Hotels’ Microtel have also established a presence on the island.

Megaworld has begun marketing the Paragua Coastown residential units, which will range from 32-square-meter studios to 106-square-meter two-bedroom suites, and expects them to generate some 2.3 billion pesos in sales. Doubling down on Palawan, Megaworld announced in December it would spend another 7 billion pesos to develop a mixed-use complex on a 6-hectare oceanfront site in Puerto Princesa. Named Baytown Palawan, the commercial, hotel and residential project is expected to take five years to complete. “Palawan has always been a hotspot for local and international tourists,” Tan says.

BUCKET LIST

International visitors to the Philippines have gradually returned but remain below pre-pandemic levels.

Palawan isn’t the Tans’ only tourism play. They are building resorts, retail space and convention facilities across the archipelago, including tourist hotspots Boracay, Cebu and Davao. Megaworld’s hospitality operations accounted for over 5% of the company’s 2023 revenue of 69.7 billion pesos, and the company expects the business will make up at least 10% of revenue by 2028.

Andrew Tan launched Megaworld in the late 1980s, pioneering the living concept of a city within a city in the Philippines. It now counts 24 townships (with an additional seven under construction) nationwide, part of his sprawling business empire under Alliance Global comprising a controlling interest in Emperador, owner of the Dalmore whisky and Fundador brandy brands, and a stake in the Philippine franchisee of McDonalds. Tan ranked No. 11 on the Philippines’ 50 Richest 2023 list with $2.4 billion net worth.

“Expanding our townships all over the Philippines will sustain our growth as a company and allow us to also diversify our offering in the real estate industry,” says son Kevin, who is also vice chairman and CEO of Alliance Global. “Through these developments, we can make a significant impact across economic sectors.”

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