Tourism has long been a cornerstone of the Philippine economy, serving as a vital engine for growth and development. In 2024, the sector achieved a historic milestone, generating an unprecedented ₱760.5 billion in revenues, a 126.75 percent recovery rate from pre-pandemic levels. This remarkable performance underscores the sector’s resilience and its pivotal role in the nation’s economic resurgence.
Despite these achievements, the Philippines continues to face challenges when compared to its ASEAN neighbors. As of December 2023, the country recorded 5.45 million tourist arrivals, placing it seventh in the region. In contrast, Thailand welcomed 28 million visitors, Malaysia 20 million, Singapore 13.6 million, and Vietnam 12.6 million. These figures highlight the competitive landscape of Southeast Asian tourism and the need for strategic enhancements to bolster the Philippines’ standing.
Addressing these disparities requires comprehensive policy reforms and targeted initiatives. During the recent Kapihan sa Manila Prince Hotel forum, Tourism Secretary Christina Garcia Frasco outlined key strategies in the National Tourism Development Plan for 2023-2028 aimed at upgrading tourism infrastructure, including the improvement of airports, seaports, and road networks, to facilitate seamless travel experiences for both domestic and international tourists. While promoting our rich cultural heritage, the country’s position as a top global destination is advanced significantly.
Secretary Frasco also emphasized the importance of digitalization in modernizing tourism services. The Department of Tourism (DOT) is actively developing digital platforms to provide real-time information, streamline booking processes, and offer virtual tours, thereby catering to the evolving preferences of tech-savvy travelers.
Furthermore, the DOT is committed to diversifying tourism products by promoting lesser-known destinations and cultural experiences. This approach not only alleviates congestion in traditional hot spots but also distributes economic benefits to rural communities, fostering inclusive growth.
The Philippines has emerged as a leading player in the regional tourism sector, surpassing its Southeast Asian counterparts with a contribution of approximately ₱4.31 trillion (or $78 billion) to the national GDP. Moreover, the sector’s resilience is highlighted by a 111 percent recovery in visitor receipts, surpassing pre-pandemic levels. She explained that domestic and international visitor receipts amounted to over ₱3.36 trillion, generating substantial revenue for businesses, supporting livelihoods, and creating tourism-related jobs. In 2023, she added, the tourism industry provided employment for around 6.21 million Filipinos, accounting for 6.4 percent of the total employment increase as compared to 2022. In turn, this has generated downstream employment for around 16 million Filipinos as reckoned in the first quarter of 2024.
Sec. Frasco expressed optimism about surpassing the target of 7.7 million international tourist arrivals for 2024. She said that while challenges such as visa policies and infrastructure development persist, the DOT remains committed to addressing these issues and expanding connectivity, including the recent Manila-Paris direct flight.
The upcoming ASEAN Summit in 2026, which the Philippines is set to host, presents a significant opportunity to showcase the nation’s tourism offerings on a global stage and accelerate initiatives to ensure that infrastructure and services meet international standards. A restored budget of ₱500 million will go a long way toward conducting tourism campaigns, particularly in key markets such as Europe.
While the Philippine tourism sector has demonstrated commendable resilience and growth, there remains substantial potential for advancement. By implementing strategic infrastructure improvements, embracing digital innovations, diversifying tourism offerings, and securing necessary funding, the Philippines can elevate its position within the ASEAN region and ensure that tourism continues to be a driving force for economic prosperity.