BETTER DAYS
Over the past two years we are seeing a resurgence in the Philippine tourism industry. The Philippine Statistics Authority (PSA) recently came out with its 2023 Philippine Tourism Satellite Accounts data, which showed the sector posting the highest growth rate since the agency started monitoring this in the year 2000. PSA measures the value of the sector in terms of Tourism Direct Gross Value Added (TDGVA) and for 2023, the share of TDGVA to the Philippine economy, as measured by gross domestic product, was estimated at 8.6 percent. The TDGVA amounted to ₱2.09 trillion in 2023, representing a 47.9 percent growth over the P1.41 trillion registered in 2022.
The PSA’s Tourism Satellite Account captures the following products: accommodation services, food and beverage serving activities, transport services, travel agencies and other reservation services, entertainment and recreation services, shopping, and miscellaneous services. Inbound tourism expenditure posted a growth rate of 87.7 percent, amounting to ₱697.46 billion, while domestic tourism expenditure grew by 72.3 percent or ₱2.67 trillion. We congratulate the Department of Tourism, led by its very dynamic Secretary Christina Frasco, for its efforts in making the Philippines among the top destinations in the world.
In 2023, a total of 5.4 million international tourists visited the Philippines. This was significantly higher than the 4.8 million full year target set by the DOT. For the first four months of 2024, the DOT reports that over two million tourists have entered the country. The DOT is targeting a total of 7.7 million arrivals by the end of 2024.
Much of the increase in tourist arrivals is due to marketing and promotion campaigns of the DOT and its partners, but another contributory factor is the grant of visa-free entry to nationals of 157 countries. The DOT is also working on streamlining the issuance of visas for cruise travelers. The Philippines recorded a significant rise in cruise arrivals in 2023, with over 101,573 passengers. This is one aspect of tourism that has a lot of room for further growth. As of end-May 2024, an estimated 123,042 passengers on board cruise ships have already visited the Philippines.
With the steady increase in tourist arrivals in the country, the government, in partnership with the private sector, should do its part in making sure that our visitors have the best experience during their stay here. One of the priorities should be the upgrading of our airport terminals, which have seen better days. The airports are the gateways to the country and as such, create the first impressions on visitors. Run down facilities, malfunctioning air-conditioning systems, and as some reports have indicated, the presence of vermin, all can do significant damage to the image of the country even before the tourists are able to enjoy the finer things we have to offer. Hopefully with the participation of the private sector in the operation of the existing terminals and the development of new ones, we will see a decongestion of the airports and provide all passengers a better experience when they travel to and from the Philippines.
Transportation also remains an issue, particularly the absence of high-speed rail systems that could ferry passengers over long distances. Land travel has always been an “adventure” for tourists so if we could offer them faster and more convenient alternatives, then more visitors will be able to explore the smaller, less popular destinations and consequently, help the local economies of these places.
The PSA notes that employment in tourism characteristic industries was at around 6.21 million in 2023, higher by 6.4 percent compared with the 5.84 million in 2022. The share of employment in tourism industries to the total employment in the country in 2023 was at 12.9 percent. Clearly, a lot of our people rely on tourism for their livelihood. In fact, the economies of many local government units are driven by tourism revenues.
DOT reports a total of ₱509 billion in tourism investments in the Philippines in 2023, 34 percent higher than what was recorded in the previous year. Secretary Frasco says the accommodation sector was the biggest contributor to the growth at 51 percent of the total. According to the Philippine Hotel Investment Outlook Survey for March to April 2024 that was prepared by Leechiu Property Consultants and the Philippine Hotel Owners Association, property developers are acquiring more land for the purpose of constructing hotels and other tourism-related developments.
There is so much potential for further growth in our tourism industry. With the proper interventions and support for our private sector partners, the Philippines may yet compete with the world’s most popular destinations and create even more opportunities for our people through tourism.