The Philippine Star
January 2, 2025 | 12:00am
MANILA, Philippines — The Department of Tourism (DOT) reported robust growth in the tourism sector last year, attributing the progress to reforms and flagship programs under the Marcos administration.
DOT Secretary Christina Garcia Frasco noted that Philippine tourism gained much more last year compared to 2023 in terms of spending by foreign tourists, and even exceeded the data recorded in 2019 before the COVID-19 pandemic stopped global travel.
Frasco said a comparative survey of tourism spending per capita within the Association of Southeast Asian Nations, conducted by the World Travel and Tourism Council (WTTC) showed that international tourists coming into the country spend at least $2,073 per capita.
“Therefore, beyond quantity, we are attracting quality, yielding more revenues for our stakeholders, (and) more jobs for our people. And as we have focused on elevating the quality of tourism in the Philippines and diversifying our tourism products, tourists are staying longer in the Philippines,” she said.
Compared to the average of nine nights in 2019, tourists are now staying an average of over 11 nights in the country, she said.
“Data would show that 70 percent of tourists coming to the country are repeat visitors. Truly, our tourists have come to love the Philippines with a higher spend, longer stay and repeat visits,” Frasco said.
From January to Dec. 15, 2024, Frasco said international visitor receipts surged to P712 billion, marking a 119 percent recovery from the P600 billion recorded in 2019.
The tourism chief noted that the April 2024 Labor Force Survey shows that 16.4 million Filipinos are employed in tourism, representing 34 percent of total employment in the first quarter, benefiting directly or indirectly from tourism.
“These figures highlight the pivotal role of tourism in generating livelihoods and uplifting communities nationwide and certainly show the impact of Philippine tourism in terms of job generation. The Department of Tourism remains steadfast in its mission to generate quality employment opportunities for Filipinos across the country,” she said.
With its performance in terms of tourism revenues in the past two years, the Philippines was hailed as “the largest domestic tourism market in Southeast Asia” in 2023.
The WTTC commended the domestic tourism industry of the Philippines for “strength and resilience” coming from the COVID-19 pandemic that halted international travel, Frasco said.
According to the World Travel and Tourism Council (WTTC) report, the Philippines has the largest domestic tourism market in Southeast Asia, with a valuation of $52.1 billion (approximately P2.9 trillion) in 2023.
“The Philippines’ tourism performance on the domestic front is also quite phenomenal, as attested to by the WTTC. According to the WTTC, the Philippines stands out as having the largest domestic tourism market in Southeast Asia, with a valuation of $52.1 billion as of 2023, and it is projected to reach as much as $66.2 billion by the end of this year. This figure underscores the strength and resilience of our domestic tourism market, which has been pivotal in driving recovery and growth post-pandemic,” Frasco said.
Frasco stressed that the law establishing a value-added tax (VAT) refund mechanism for non-resident tourists, which she described as a “groundbreaking law” recently signed by President Marcos, would “significantly enhance the Philippines’ appeal as a premier tourism destination.”
Under Republic Act 12079, tourists can claim a refund on purchases made in accredited stores worth P3,000, provided these goods are taken out of the country within 60 days of purchase.
“By allowing tourists to receive tax refunds on their purchases, we’re sending a powerful message: the Philippines is ready to align with global standards while supporting local communities and local businesses. It is also projected that this matter will drive tourism spending by as much as 29.8 percent,” she added.
Meanwhile, tourism investments reached over P508.8 billion, over 51 percent of which could be attributed to the accommodations sector in 2023.
“In addition, the DOT last year has ensured tourism development – in terms of infrastructure – would be expanded “to as many islands as possible by investing heavily in these infrastructure,” Frasco said.
The goal resulted in the Tourism Champions Challenge, wherein 15 local government units across the country were awarded by President Marcos with grants worth P255 million to be funded by the DOT’s infrastructure arm Tourism Infrastructure and Enterprise Zone Authority (TIEZA). One of the winners, namely the Legacy of the Sea Project in Silaki Island, Bolinao, Pangasinan, broke ground recently.
Frasco also acknowledged that Philippine tourism faced many “headwinds” or challenges – which she maintained were beyond the DOT’s control – that prevented it from reaching international arrivals, especially from certain markets.
“Over the course of the past year, we have faced many adversities, from the headwinds of economic, environmental, and geopolitical forces beyond our control, to budgetary constraints and visa liberalization delays vis-à-vis our competitors,” she said.
The tourism chief has been lobbying before fellow government agencies for the enforcement of more liberal policies for granting visa entry. The suspension of the electronic visa system by the Department of Foreign Affairs negatively impacted the projected arrivals from China. On the other hand, the DOT’s convergence with the Bureau of Immigration and the Department of Justice resulted in the Cruise Visa Waiver program, providing seamless entry to the Philippines for cruise passengers. The DOT has also actively supported the implementation of the electronic visa or e-visa program for travelers from India.
Despite these inhibiting factors, Frasco maintained the DOT has “graduated from measuring tourism merely on the number of people arriving but rather on the more important numbers,” namely the longer duration of stay of foreign tourists, their frequent visits, and their generous spending while visiting the Philippines’ tourist wonders.
“We will strive to continue to excel in the tourism numbers that matter, and we will work even harder than we have so Philippine tourism continues to stand as a beacon of pride for our nation and a testament to the strength of our culture and heritage and our identity as Filipinos,” she said.
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