The Philippine tourism sector reached unprecedented heights in 2023, exceeding all expectations and setting new records across Southeast Asia, as highlighted by the Department of Tourism (DOT) during a presentation to the House of Representatives Committee on Appropriations. Tourism Secretary Christina Garcia Frasco presented compelling data showcasing the sector’s remarkable performance, emphasizing its contributions to job generation and national economic output, exceeding all baseline targets set in the National Tourism Development Plan (NTDP) 2023-2028.
The Philippines boasted the largest domestic tourism market in Southeast Asia, with a market value of USD 52.1 billion (PHP 2.90 trillion), demonstrating a robust demand for local travel. The WTTC estimated that the Philippine tourism industry contributed USD 78 billion (PHP 4.34 trillion) to the national economy, representing 17.9% of the country’s GDP, the highest contribution to national output in Southeast Asia. Furthermore, the Philippines captured the largest share of ASEAN’s tourism contributions, accounting for 24.8% of the total contributions to the ASEAN GDP, solidifying its leading role in regional economic growth.
In 2023, over 6.2 million Filipinos secured employment in tourism-related industries, demonstrating the sector’s vital role in the nation’s economy. Tourism contributed a substantial 8.6 percent to the country’s Gross Domestic Product (GDP), with combined domestic and international tourism expenditures reaching an impressive PHP 3.36 trillion. The Tourism Direct Gross Value Added (TDGVA) surged to PHP 2.09 trillion, marking a 47.9 percent increase—the highest growth rate Philippine tourism has seen in 24 years. Additionally, the Bangko Sentral ng Pilipinas reported a net trade surplus of approximately USD 2.45 billion in travel services, a milestone not achieved in the last 15 years. The Philippines also exceeded its international visitor target for the year, welcoming 5.45 million visitors, surpassing the projected 4.8 million.
The impressive results have led to calls for a substantial increase in the DOT’s budget for the upcoming fiscal year. The Department’s National Expenditure Program (NEP) for FY 2025 includes an allocation of PHP 3.394 billion, falling short of the DOT’s initial proposal of PHP 13.4 billion. Lawmakers are advocating for a higher allocation, recognizing tourism’s vital role in the economy and its potential for further growth. Several lawmakers, including Marikina City 2nd District Representative Stella Luz Quimbo, Cagayan de Oro City 2nd District Representative Rufus Rodriguez, Aklan 2nd district Representative Teodorico Haresco, Jr., and Bulacan 5th district Representative Ambrosio Cruz, Jr., expressed their strong support for the DOT’s initiatives and called for a significant budget increase to ensure the continued success of the tourism sector.
Secretary Frasco highlighted the DOT’s strategic investments, including the construction of key infrastructure projects such as Tourist Rest Areas and tourism roads to enhance connectivity and the overall visitor experience. The expansion of the country’s tourism product portfolio, efforts towards digitalization, and the strengthening of the Filipino workforce through programs like the Filipino Brand of Service Excellence (FBSE) and the Tourism Industry Skills Program (TISP) were among the major wins presented.
With the tourism sector’s remarkable recovery and growth, the Philippines is poised to solidify its position as a leading tourism destination in Asia. The DOT’s commitment to innovation, infrastructure development, and workforce training, coupled with the support of lawmakers, will drive continued growth and further enhance the Philippines’ global appeal.
