Tourism industry in the Philippines

Traveling is one of the social activities many people worldwide love to do. For tourists,
traveling exposes them to different cultures and history, and at the same time, provides
relaxation and leisure. Each country boasts diverse tourist attractions, some only
indigenous to the place. The Philippines attracts travelers because of the abundance of
islands and the bodies of water surrounding the country. With about 7,641 islands, it is a
haven for nature seekers who would like to experience touched and untouched beaches.
There are as well recreational activities, festival celebrations, and food culture that can
be experienced.
Philippine tourism has come a long way, particularly inbound tourism for the last ten
years. Foreign tourist arrivals back in 2008 were only about 2.9 million, and ten years
later, it reached 6.5 million arrivals in 2017. Of all the foreign source countries of tourist
arrivals, China was one of the leading countries next to South Korea, which accounted
for around 21.7 percent of the total foreign tourists in 2019.
The gross value added generated from the industry is one of the key figures that
determine the Philippine economy. Expenditures for internal tourism was valued at
approximately 3.6 trillion Philippine pesos in 2018. Of all the spending on tourism,
18.92 percent was accounted for accommodation services, and food and beverages came
second. Within local households, expenditures for restaurants and hotels amounted to
292.4 billion Philippine pesos as of 2019.
The increasing demand for tourism brought approximately 11 billion worth of
investments for accommodation and food service activities in 2017. Overnight travelers
helped the demand on accommodation establishments, where domestic travelers led
overnight stays with a record of 45 million in 2018. In the same year, the industry’s
share of the total employment in the Philippines was about 13 percent. (source:
https://www.statista.com/topics/6012/tourism-industry-in-the-philippines/)

The Philippines' tourism industry has generated some 245 billion pesos in receipts from
international visitors during the first six months of the year 2019, according to the
Department of Tourism (DOT).

The corresponding total receipts from the six—month arrivals increased by 17.57% from
the half—year gross revenues in 2018.

Data provided by the DOT Statistics, Economic Analysis and Information Management
Division (SEAMID) show the highest monthly receipts of 48 billion pesos in the month
of February.
For June 2019, spending reached an estimated 38 billion pesos, which is 30.56% higher
than the same month last year, while tourist per capita expenditure increased to
$1,086.61 or 30.97% higher than June 2018.

So far, the DOT is keeping up with its target to attract high spending and longer staying
tourists in the Philippines. As proof that our guests truly find it more fun in the
Philippines, average daily expenditure and average length of stay per tourist reached
$120.60 and 9.01 nights, respectively, which is 28.64% and 1.81% higher than the same
month last year. This is based on the data from visitor sample survey.

"These economic numbers are exciting but the real purpose of why the government is
working hard to push these numbers up year after year is for the Filipino people.
Tourism in 2018 was responsible for 5.4 million jobs in 2018, contributing 12.7 percent
or P2.2 trillion to the country's Gross Domestic Product (GDP).
Earlier, the DOT disclosed that 4.1 million foreigners have visited the country from
January to June this year, indicating an 11.43% increase from 2018.

"The Philippines tourism industry's continued impressive performance dramatizes the

dedication, hard work and resilience of its stakeholders through a most challenging
year. We count on the same enduring qualities to get us through the challenges this
year," she said.

In the same event, the Philippines was also recognized as "Asia’s Leading Dive
Destination."

Foreign guests to the Philippines incurred USD128.35 average daily expenditure while
the average per capita expenditure for a whole trip is pegged at USD1,218.04 on an
average length of stay 9.49 nights.

The double-digit growth in visitor was observed from February to December 2019, with
August exhibiting the highest growth at 31.45 percent. Meanwhile, the largest volume
was recorded in December at USD872.13 million.

Based on data from the DOT Office of Tourism Development Planning, Research and
Information Management, the top visitor market South Korea posted the highest
tourism spending of about USD2,614,685,263 followed by China with
USD2,330,491,557 and the United States with USD1,208,907,514.
Romulo-Puyat cited cooperation among the government, tourism industry, and civil
societies in realizing the goals of the National Tourism Development Plan for 2016-
2022, the masterplan of the country's sustainable tourism program.

Rounding off the 10 highest spending markets are Japan, Canada, Australia, Taiwan,
United Kingdom, Germany and Malaysia. (source: tourism.gov.ph)

Gross value added of the tourism industry by type Philippines 2012-2018

The southeast Asian nation of the Philippines is a popular travel destination due to the
several islands that form its topography. Tourism is a thriving source of revenue for the
country, with the transportation sector contributing the largest share of income of the
industry between 2012 and 2018. In 2018, the gross value added from this sector
amounted to 627.5 billion Philippine pesos.

Inbound tourism

While the majority of international tourists that visit the Philippines are from South
Korea, China, and the United States, the country had a considerably large number of
visitors from Japan and Taiwan in 2019. In 2018, the values of expenditure incurred for
accommodation and catering services for inbound tourism each grossed over 100 billion
Philippine pesos.

Expenditures in tourism

The country’s growing economy had enabled its inhabitants to travel abroad frequently.
In the case of outbound tourism, accommodation services and shopping incurred the
highest and second highest values of expenditure in 2018 respectively. In terms of
domestic tourism, accommodation services also posted the highest value of spending,
amounting to approximately 681 billion Philippine pesos in the same year.

Hospitality industry's contribution to PH tourism growth

 Department of Tourism (DOT) Secretary Bernadette Romulo-Puyat lauded the

hospitality industry's contribution to the steady growth of the Philippine tourism
industry and economy over the years as it vowed to increase engagement with the
private sector.

Romulo-Puyat made the statement during Monday's Hotel Sales and Marketing
Association (HSMA) Virtus Awards where the best customer and business-focused
strategies of Philippine hotels and resorts were feted.

She said the Philippine tourism is now a PHP2.2-trillion national industry that
generates 12.7 percent of the country's GDP and employs about 5.4 million people in
passenger transport, accommodations, and food and beverages, among others.

"These achievements cement our point that the spectacular rise of Philippine tourism is
the result not only of our work at the DOT; due credit must be given to all who help push
us forward towards our goals--people and organizations like the HSMA," she said.

At the event, she also praised HSMA's continued support to the DOT in attaining its
tourism development goals.

"As the DOT relies on the cooperation of all tourism stakeholders, we value the
generosity and readiness of the HSMA Board to offer us counsel—drawing on their rich,
invaluable collective marketing experience—as we formulate projects and policies that
work and have tangible, measurable results," she said in her speech.

"The zeal with which HSMA supported the DOT's pilot Sales and Marketing Plan
Workshops in Camiguin and Vigan are the most recent examples of our fruitful
partnership," she added.

Romulo-Puyat said the association continues its partnership with the DOT, offering
executive and management level training programs to 2- and 3-star properties outside
of Metro Manila.

"Indeed, tourism can only reach its full potential if there is cooperation, coordination,
and collaboration between the government and the industry’s stakeholders. Tourism is
our shared responsibility," she noted.

HSMA hosted the 2019 Virtus Awards where outstanding hotel sales and marketing
professionals and campaigns were recognized. The event coincides with its 40th
anniversary.
The group was initially formed as an informal association of hospitality sales and
marketing practitioners in Manila to put a system in the fast-expanding hotel industry
as a result of the Philippine hosting of the World Bank IMF Conference.

"From only a handful of members in the late 70s to a country-wide organization with a
say in national tourism industry policies today, we have so much to be thankful for,"
HSMA president Christine Ibarreta said.

To date, HSMA has a total of 110 members from the hotel and resort industry
nationwide

Hospitality Industry in the Philippines

The State of the Hospitality Industry in the Philippines in 2020

References
http://tourism.gov.ph/news_features/inboundtourismrevenueh12019.aspx
https://www.pna.gov.ph/articles/1095319
https://www.pna.gov.ph/articles/1083287
https://www.statista.com/statistics/1090300/philippines-gross-value-added-tourism-
industry-by-type/