Thursday, August 22, 2024 Philippines tourism reached unprecedented heights in 2023, as highlighted by the Department of Tourism (DOT) during its presentation in Quezon City to the House of Representatives (HoR) Committee on Appropriations on Tuesday, August 20. Tourism Secretary Christina Garcia Frasco showcased the sector’s record-breaking performance, emphasizing that it far exceeded all baseline targets set in the National Tourism Development Plan (NTDP) 2023-2028. Secretary Frasco reported that the industry not only surpassed expectations in tourism revenue but also made significant contributions to national economic output and employment.
These achievements underscore a major milestone in the continued recovery and growth of Philippine tourism. “These are the indicators that matter the most – the contributions of tourism to job generation and the aspiration to achieve upper middle-income status under the administration of President Marcos Jr. We achieved these because apart from the domestic trips and international tourist arrivals, we now have more products and destinations to offer today.
The results of which is a higher length of stay and more spending along the circuits developed across the various destinations in our regions,” Secretary Frasco said , expressing gratitude to members of the House Committee on Appropriations for providing support to Philippine tourism that allowed the attainment of record figures last year. Philippine tourism experienced a remarkable year in 2023, setting new records across the region. According to a report from the World Travel and Tourism Council (WTTC), the Philippines boasted the largest domestic tourism market in Southeast Asia.
The domestic tourism market in the Philippines was valued at an impressive USD 52.1 billion, equivalent to Php 2.90 trillion, underscoring the robust demand for local travel.
Tourism Secretary Christina Garcia Frasco also highlighted the Philippines’ leading role in regional economic contributions. The WTTC estimated that the Philippine tourism industry contributed USD 78 billion, or Php 4.34 trillion, to the national economy, representing 17.
9% of the country’s GDP. This achievement marked 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. These milestones reflect the Philippines’ significant influence and growing prominence in the regional tourism landscape. “While there have been headwinds, both internal and external, that we continue to grapple with, we have worked as hard as we can with the resources we have been given to transform the Philippines to its full potential.
But there is yet much work to be done and this will require significant resources, and with your kind and generous assistance we will be able to accomplish our President’s aspirations for the Philippines to become a tourism powerhouse,” the DOT chief said. In 2023, the Philippine tourism sector demonstrated remarkable growth and resilience, as highlighted by the latest data from the Philippine Statistics Authority (PSA). Over 6.
2 million Filipinos secured employment in tourism-related industries, reflecting 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.
These achievements underscore the robust recovery and continued growth of the Philippine tourism industry. “Having exceeded our targets for tourism arrivals internationally in 2023, we continue to be optimistic about the prospects of the industry. As President Ferdinand R.
Marcos Jr. highlighted in his third State of the Nation Address, the evolution of our tourism sector calls for a dynamic, multi-faceted strategy that positions the Philippines as a premier destination in Asia. This strategic pivot, instituted by the Department of Tourism, reaffirms the central role that tourism plays as a pillar of our nation’s economic development and as a source of national pride,” Secretary Frasco said .
Tourism Secretary Christina Garcia Frasco highlighted significant achievements in the Philippine tourism sector, focusing on the construction of key infrastructure projects such as Tourist Rest Areas and tourism roads aimed at enhancing connectivity and the overall visitor experience. Additionally, the expansion of the country’s tourism product portfolio, efforts toward 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. In light of these accomplishments, lawmakers are advocating for a higher tourism budget.
The Department of Tourism’s (DOT) National Expenditure Program (NEP) for the upcoming fiscal year includes an allocation of PHP 3.394 billion. Of this amount, 83% (PHP 2.
84 billion) is designated for the Office of the Secretary (OSEC). Meanwhile, the National Parks Development Committee (NPDC) is set to receive PHP 384 million, with the Intramuros Administration (IA) and the Philippine Commission of Sports Scuba Diving (PCSSD) allocated PHP 146 million and PHP 25 million, respectively. Initially, the DOT had proposed a budget of PHP 13.
4 billion for FY 2025, which included additional funding to support its key projects under the Marcos administration. However, the current allocation falls short of this proposal, prompting further discussions among lawmakers to secure the necessary resources to continue advancing the tourism sector’s growth. “The esteemed members of the House of Representatives, with 12.
9 percent of the entire national workforce employed in tourism-related sectors, this means that 13 out of every 100 Filipinos directly benefit from this vibrant industry. Multiply that by the average number of members per household and tourism easily benefits over 31 million Filipinos. Therefore, investing in tourism is not just a wise decision but a transformative one.
With a total of Php 509 billion tourism investments in 2023, both from the public and private sector, this has already produced over Php 3.36 trillion in tourism receipts, representing a 456 percent return in investment,” Secretary Frasco said. With DOT’s accomplishments surpassing pre-pandemic levels, several lawmakers during the interpellation have poured their support to the Department’s plans and programs, with some even advocating for a higher budget allocation in support of the tourism industry’s continual resurgence.
“As we gather today to assess the budget and performance of the DOT, it is important to take stock of the meaningful progress made and strengthen our tourism sector. Tourism is not merely a source of national pride; it is a critical pillar of our economy. The initiatives driven by the DOT underscores their unwavering commitment to positioning the Philippines as a leading global destination,” Marikina City 2nd District Representative Stella Luz Quimbo, who sits as Committee Senior Vice Chairperson, said as she commended the DOT’s initiatives.
Meanwhile, Cagayan de Oro City 2nd District Representative Rufus Rodriguez congratulated Secretary Frasco for an ‘impressive’ presentation of the DOT’s accomplishments, as he reiterated tourism’s performance in 2023. “We have heard and listened to the presentation clearly, the total combined tourism receipts, Mister Chairman, is Php 3.36 trillion.
The share to GDP is 8.6%, and you know the difference between GDP and GNP? The GDP is ‘gawa dito ng Pilipinas’. GNP is ‘gawa ng Pilipino inside and outside’.
So you see 8.6%, and then 48% increase in the (Tourism Direct) Gross Value Added, and then we go now to the budget. The budget is a measly—Madam Chair—a measly Php 3.
39 billion. How can we explain that? How can [DBM] explain that you’re only given this, when the President says we have to accept the challenge of tourism, experiential tourism, and it should be given the support,” Rep. Rufus said.
Committee Vice Chairperson and Aklan 2nd district Representative Teodorico Haresco, Jr. commended Secretary Frasco’s leadership “may yet usher in finally the golden years of tourism,” saying thus far, the DOT has been the “most applauded” agency for the past two weeks. “There is a unanimous clamor to increase your budget.
Not only 100% percent na dagdagan ng budget [mo] but I think, based on the numbers, since the peso depreciated since 2022 by 10%, ang minimum po dapat 10% ang increase. And since there is an impending price hike, baka tumaas po ang program funds ng ating mahal na Presidente, ay sana po ma-increase ang budget, katulad po sana ng, at least, Malaysia,” Rep. Haresco added, citing arrivals of ASEAN neighbors such as Singapore.
Meanwhile, Bulacan 5th district Representative Ambrosio Cruz, Jr. also applauded the DOT, saying “Napakaganda ng performance niyo, lahat kami nag-aagree dito na dapat dagdagan ang budget ng DOT. Maraming salamat, [Madam] Secretary.
” “I would like to congratulate the Secretary; she has done a wonderful job for the country. Deep inside, believe me when I say this, that you had been the best Secretary of DOT this country ever has. Really, you have represented the Philippines very, very well,” said Misamis Oriental 2nd district Representative Yevgeny Vincente Emano.
On the other hand, Lanao del Norte 1st district Representative Khalid Dimaporo also applauded the leadership of Secretary Frasco as she enjoined fellow lawmakers to work together to “restore the budget of the DOT to pre-pandemic levels”. “When we first met her here in Congress, she led the charge. She said that she will lead the charge for the [Bongbong] Marcos administration, especially when it comes to the tourism industry, on our return to pre-pandemic levels of tourism, and that really is the hallmark, I think, of our President’s achievements,” Rep.
Dimaporo said..
