Tourism contributes 8.9% to Philippine GDP in 2024

The share of the tourism industry in the Philippine economy rose to a five-year high of 8.9% in 2024, the Philippine Statistics Authority (PSA) said on Thursday.

Tourism direct gross value added (TDGVA) — an indicator of the economic contribution from tourism-related activities — jumped by 11.2% year on year to P2.35 trillion last year, preliminary data from the PSA showed.

However, TDGVA growth was slower than the 49.9% surge logged in 2023 and the slowest annual growth since the 10.3% expansion in 2020.

Despite the slower growth, the share of TDGVA to the economy rose to 8.9% in 2024, the highest share since the 12.9% recorded in 2019.

By industry, country-specific tourism characteristics goods – shopping accounted for 21.8% of the total with P512.68 billion. It was followed by miscellaneous services (20.2% share or P476.23 billion) and accommodation services for visitors (18.4% share or P432.9 billion).

Domestic tourism expenditure, which includes resident visitors’ spending within the country on a domestic trip or as part of an international trip, grew by 16.4% to P3.16 trillion last year.

Outbound tourism spending reached P345.68 billion in 2024, rising by 37.5% from P251.35 billion in 2023.

Inbound tourism expenditure, meanwhile, inched up by 0.4% annually to P699.99 billion.

Total employment in the tourism sector grew by 6.1% to 6.75 million in 2024. Tourism accounted for 13.8% of the total jobs in the country in 2024.

The majority of the tourism-related jobs were centered on miscellaneous activities. The health and wellness sector employed 1.83 million, accounting for a 27.1% share.

The accommodation and food and beverage sector had 1.69 million workers (25% share), while passenger transport had 1.67 million workers (24.7%).

Reinielle Matt M. Erece, an economist at Oikonomiya Advisory and Research, Inc. said easing inflation helped boost tourism spending last year.

“Lower inflation relative to 2023 and better economic conditions in the country may have encouraged tourists due to better prices,” he said.

Inflation averaged 3.2% in 2024, cooling from the 15-year high of 6% in 2023.

Last year, the Department of Tourism recorded 5.95 million visitor arrivals, falling short of its 7.7 million target.

“While Philippine tourism has made substantial progress — particularly in revenue generation — it hasn’t achieved full recovery in terms of visitor numbers, and the pace of recovery appears to be slowing in early 2025,” Leonardo A. Lanzona, Jr., an economics professor in Ateneo de Manila University, said.

Mr. Erece is optimistic that tourist numbers will improve this year.

“The strong domestic economy can also be a positive factor in improving local economies and their respective tourism potential,” he said.

Source: Business World

Visitor arrivals of 6 million seen possible in 2025

The Philippines can hit visitor arrivals of 6 million this year, even with its key source markets roiled by currency volatility, Leechiu Property Consultants said.

“I think the Philippines can still book 6 million visitors by year’s end, but of course there are risks,” said Alfred Lay, director for hotels, tourism, and leisure at Leechiu.

“Risks for this year are all mainly external, namely the uncertainty in the global economy, airline disruptions, and exchange rate volatility in our top source markets, which can both have positive and adverse effects,” he added.

The Department of Tourism reported that the Philippines booked 5.95 million visitor arrivals last year, well off its target of 7.7 million.

Mastercard Chief Economist for Asia-Pacific David Mann said that inbound tourism to the Philippines is recovering slowly compared to the outbound segment of the business.

“We have seen outbound spending rise 6% versus 2019, with the majority traveling to Japan, Korea, and Vietnam,” Mr. Mann said in a virtual briefing on Thursday.

“The inbound recovery has been a bit slower, at less than three-quarters (72%) recovered to 2019 levels, likely due to some of the slower recovery in the air capacity and reliance on long-haul markets,” he added.

He noted the slowdown in arrivals from Northeast Asia but added that visitors from Singapore, the US, and Australia, as well as overseas Filipinos, have been helping support the recovery.

The Philippines recorded 2.1 million visitor arrivals as of May 1, down 0.82% year on year.

South Korea, the top source market, accounted for 22.25% of arrivals, or 468,337, down 18% from a year earlier.

The other top source markets were the US, Japan, Australia, and Canada.

“While the dip in South Korean arrivals is notable, it’s too early to call it a lasting trend,” Mr. Lay said.

“Encouragingly, we’re seeing steady growth from the US, Australia, Japan, and parts of Europe — markets showing healthy demand that can help offset the shortfall,” he said.

However, he said the decline in arrivals “highlights the ongoing need for both the private and public sectors to continue improving our infrastructure and services.”

“The regional market is very competitive, and we need to keep adding more focus, resources, and funding to our tourism sector to ensure we stay relevant,” he added.

He said the opportunities in Philippine tourism still lie mainly in the domestic market.

Source: Business World

PHL hotels may see revenue boost in 2025

Philippine hotels are projected to see revenue growth this year, driven by demand from international visitors, according to hotel e-commerce platform SiteMinder.

“The rise in room rates, fueled by strong international bookings, provides a solid foundation for Philippine hotels to maximize revenue in 2025,” Bradley Haines, regional vice-president for Asia-Pacific at SiteMinder, said.

Philippine hotels saw a 2.91% uptick in their average daily rate (ADR) to $125.03 in 2024 from $121.49 in 2023, according to SiteMinder’s Hotel Booking Trends Report. The ADR for local hotels peaked at $144 in December.

Last year, the Philippines was the only country to post double-digit growth in international hotel bookings at 13.6%, rising to 54.44% from 47.94% in 2023.

“Our data show a strong upward trend in international arrivals at Philippine hotels, with their share of bookings rising steadily from 16.54% in 2021 to 54.44% in 2024 — a notable 229% increase. This momentum suggests continued growth this year.”

Local hotels have been an attractive choice for foreign travelers as they offer both year-round appeal and experience-driven stays, according to Mr. Haines.

Foreign tourists booked their stays at Philippine hotels an average of 25 days in advance last year, up from 23 days in 2023. This was the second-highest lead time in Asia, behind Thailand (27 days).

About 89% of 2024 stays at Philippine hotels averaged up to two nights, while 11% lasted three nights or more, surpassing most Asian markets.

SiteMinder data showed a “less pronounced” gap in bookings between the December peak (9.73% of total bookings) and the September low (7.34%), suggesting that hotel bookings are more consistent throughout the year than seasonal.

However, around 16% of bookings at local hotels were canceled, a slight (2%) uptick from last year.

To sustain growth momentum, Philippine hotels must focus on data-driven strategies and respond to changing traveler preferences, according to Mr. Haines.

“Local hotel operators that leverage market intelligence to understand when and where guests are booking, along with dynamic pricing to capture demand more effectively, will be better positioned for growth.”

In its latest Changing Traveller Report, SiteMinder expects the continued boom of event travel and “workcations” this year.

Data showed that 65% of global travelers said they are likely to travel for concerts, sports tournaments, and festivals. Likewise, 41% plan to work during their stay.

SiteMinder also reported that 36% of travelers globally look up hotels via search engines, followed by online travel agencies (18%), online forums (11%), social media (11%), friends or family (7%), travel fairs (5%), and online travel blogs (5%).

According to the report, 46% plan to book a standard room for their 2025 stays, followed by a superior room (33%), deluxe room (14%), executive room (4%), and suite (3%). About 24% return to hotels for loyalty benefits.

Booking.com and Agoda were the top booking platforms for Philippine hotels last year, according to SiteMinder. Direct bookings remained strong, being the third-largest source of revenue for local properties.

Other popular booking platforms for foreign tourists include Expedia Group, Trip.com, Hotelbeds, Klook, DidaTravel, WebBeds, Tiket.com, Traveloka, and MG Bedbank.

Source: Business World