YEAR-END REPORT. Tourism Secretary Christina Frasco delivers the DOT’s year-end report during a briefing at the DOT head office in Makati City on Tuesday (Dec. 17, 2024). The DOT still regards 2024 as an “exceptional” year for Philippine tourism for outperforming pre-pandemic figures in terms of tourism receipt. (PNA photo by Yancy Lim)
MANILA, Philippines — The Department of Tourism (DOT) still regards 2024 as an “exceptional” year for Philippine tourism for outperforming pre-pandemic figures in tourism receipt.
At a year-end briefing in Makati City on Dec. 17, Tourism Secretary Christina Frasco said the country has earned an estimated P712 billion in tourism spending since the beginning of 2024.
This amount represents a 119 percent recovery from P600 billion in 2019 and an increase from last year’s P697.4 billion.
From an average of nine nights, tourists are also now staying over 11 nights in the country, DOT estimates show.
“We have the highest tourism per capita spend in the Asean at over US $2,000, and we have seen that over 70 percent of the tourists that come into the country are repeat visitors,” Frasco said.
“We anticipate that this can only further expand, considering that we are now able to offer a more diverse array of tourism products and more destinations, whether it’s beach, leisure, adventure, health and wellness, gastronomy, cruise, and other such tourism activities,” she added.
The Philippines targets to reach at least 7.7 million foreign tourists by yearend, a number now seemingly unlikely to be achieved with arrivals still at 5.6 million as of Dec. 15.
Frasco noted that the sector had faced many challenges since the projections were announced, including inflationary pressures, geopolitical issues, climate-related disasters, and many other headwinds “over which the DOT has absolutely no control.”
With these situations, especially with the delays in visa liberalization for the Chinese market, the DOT is being “pragmatic” in its projections.
“While it has been the practice to only look at arrivals and automatically compare with our competitors as the singular measure of performance, I would urge a wider perspective on the full faculty of facts,” Frasco said.
“Focus on the numbers that matter – visitor receipts, tourism spend, length of stay, tourism employment – for these are what drive our economy and employ our people, and in all of these numbers, the Philippines is doing exceptionally well,” she added.
Productive year
Tourism had been a major economic driver, contributing about P4.3 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 speaks volumes about the vibrancy of our tourism sector as a key economic driver not just locally but regionally as well,” Frasco said.
Citing the April 2024 Labor Force Survey, she also touted that at least 16.4 million Filipinos are employed in tourism.
This figure represents 34 percent of total employment in the first quarter, benefiting directly or indirectly from the industry.
The DOT has been investing in several programs to entice more tourists to visit the Philippines and improve their overall travel experience.
These programs include the construction of more Tourist Rest Areas (TRA) across strategic travel destinations, the launch of a cruise visa waiver program, the Tourism Champions Challenge (TCC), the creation of the Tourist Assistance Call Center (TACC), the various Philippine Experience Programs for stakeholders to rediscover the country’s rich culture, and the introduction of the Hop-On Hop-Off Bus (HO-HO) Tours, with planned expansion to key locations nationwide.
The country has also enacted a Value-Added Tax (VAT) refund mechanism allowing non-resident tourists to receive tax refunds on their purchases.
In addition, the DOT launched the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2023-2028, which serves as a guide for stakeholders in meeting the projected demand of 456,055 rooms by 2028.
The DOT is likewise positioning itself in India to capture the South Asian state’s rapidly growing outbound tourism market, a potential boost of which is seen to help compensate for the slow recovery of the Chinese market.
Earlier, the Philippine government fully implemented the e-Visa system in India, allowing Indians to apply for an e-Visa online.
The DOT is also active in boosting cooperation with key and emerging markets worldwide including Brunei, Qatar, South Korea, and Israel, as well as engaging in bilateral discussions with Bahrain and Austria.
Frasco said these interactions alone underscore Manila’s commitment to expand beyond its traditional markets and seize opportunities to attract markets with higher spend.
Redefining approach
Frasco said the DOT will conduct a midterm review for the 2023-2028 National Tourism Development Plan (NTDP) next year.
This is meant to provide “recalibrated and updated projections [that consider] the various factors that were not present” at the time that the plan was released.
Despite emerging challenges besetting the industry, Frasco said the agency remains committed to fulfilling the NTDP goals.
These goals include expanding tourism infrastructure with other agencies, increasing connectivity, increasing accommodation, introducing digitalization, and diversifying the country’s tourism portfolio.
In 2025, the DOT also aims to “redefine its approach” by placing a strong emphasis on 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,” she 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 said.