The Department of Tourism (DOT) has hailed 2024 as an “exceptional” year for Philippine tourism, surpassing pre-pandemic figures in terms of tourism receipts.
During a year-end briefing in Makati City last week, Tourism Secretary Christina Frasco announced that the country has generated an estimated PHP712 billion in tourism spending since the beginning of 2024. This represents a 119 percent recovery from PHP600.01 billion in 2019 and an increase from last year’s P697.46 billion.
Tourists are now staying longer in the country, with the average stay extending from nine nights to over 11 nights, according to DOT estimates.
“We have the highest tourism per capita spend in ASEAN at over USD2,000, and over 70 percent of the tourists that come into the country are repeat visitors,” Frasco stated.
She added, “We anticipate further growth as we now offer a more diverse array of tourism products and destinations, including beach, leisure, adventure, health and wellness, gastronomy, cruise, and other activities.”
The Philippines aims to reach at least 7.7 million foreign tourists by year-end, although arrivals stood at 5.64 million as of December 15.
Frasco acknowledged the challenges faced by the sector, including inflationary pressures, geopolitical issues, climate-related disasters, and delays in visa liberalization for the Chinese market. Despite these hurdles, the DOT remains pragmatic in its projections.
“While it has been common to focus solely on arrivals and compare with competitors, I urge a broader perspective on the full range of facts,” Frasco said. “Focus on the numbers that matter, visitor receipts, tourism spend, length of stay, and tourism employment. In all these metrics, the Philippines is performing exceptionally well.”
Tourism has been a major economic driver, contributing about PHP4.34 trillion or 17.9 percent to the GDP in 2023.
“The Philippines captured the largest share—24.8 percent—of the total contribution of ASEAN tourism to the ASEAN GDP. This highlights the vibrancy of our tourism sector as a key economic driver both locally and regionally,” Frasco noted.
According to the April 2024 Labor Force Survey, at least 16.4 million Filipinos are employed in tourism, representing 34 percent of total employment in the first quarter.
The DOT has invested in several programs to attract more tourists and enhance their travel experience. These initiatives include the construction of more Tourist Rest Areas (TRA), the launch of a cruise visa waiver program, the Tourism Champions Challenge (TCC), the creation of the Tourist Assistance Call Center (TACC), various Philippine Experience Programs, and the introduction of Hop-On Hop-Off Bus (HO-HO) Tours, with planned expansion nationwide.
The country has also implemented a Value-Added Tax (VAT) refund mechanism for non-resident tourists.
Additionally, the DOT launched the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028 to guide stakeholders in meeting the projected demand of 456,055 rooms by 2028.
The DOT is also targeting India’s rapidly growing outbound tourism market to compensate for the slow recovery of the Chinese market. The Philippine government has fully implemented the e-Visa system in India, allowing Indian nationals to apply online.
The DOT is boosting cooperation with key and emerging markets worldwide, including Brunei, Qatar, South Korea, and Israel, and engaging in bilateral discussions with Bahrain and Austria. These efforts underscore Manila’s commitment to expanding beyond traditional markets and attracting higher-spending tourists.
Frasco announced that the DOT will conduct a midterm review of the 2023-2028 National Tourism Development Plan (NTDP) next year to provide updated projections considering various factors not present when the plan was released.
Despite emerging challenges, the DOT remains committed to fulfilling the NTDP goals, which include expanding tourism infrastructure, increasing connectivity, enhancing accommodation, introducing digitalization, and diversifying the country’s tourism portfolio.
In 2025, the DOT aims to “redefine its approach” by emphasizing tourism investment.
“This strategic shift acknowledges the vital role that substantial investments play in enhancing our tourism infrastructure, improving visitor experiences, and fostering sustainable growth,” Frasco said.
“The focus on investment will not only bolster the capacity of our tourism sector but also create resilient jobs, stimulate local economies, and enhance environmental sustainability, ensuring that the Philippines continues to be a premier destination for quality tourism on the global stage,” she added.
Several initiatives are planned for 2025, including the establishment of tourist first aid facilities, hyperbaric chambers, tourist courts, and medical concierge services at airports. The DOT will also launch (HO-HO) Layover Tours for travelers passing through the Philippines on their way to other destinations.
