On August 20, Department of Tourism (DOT) Secretary Christina Garcia Frasco presented to the House of Representatives (HoR) Committee on Appropriations its Fiscal Year (FY) 2025 budget for the DOT and attached agencies.
“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.
Secretary Frasco reported that last year’s Philippine tourism exceeded all baseline targets set under the National Tourism Development Plan (NTDP) 2023-2028 for tourism yields (expenditures) and the contributions to national output and employment, surpassing pre-pandemic levels.
Here are the milestones reported by Secretary Frasco.
The Philippines marks as the biggest domestic tourism market in Southeast Asia of 2023, as reported by the World Travel and Tourism Council’s (WTTC), with the Philippine domestic market valued at USD 52.1 billion, or equivalent to Php 2.90 trillion;
The Philippines has the highest contribution to national output in Southeast Asia, also according to the WTTC estimating the Philippine tourism industry’s contribution of USD 78 Billion or Php 4.34 trillion to the Philippine economy, which is equivalent to 17.9% of the Philippine Gross Domestic Product (GDP);
The Philippines captured the highest share (24.8%) of the total contributions of ASEAN Tourism to the ASEAN GDP;
The Philippine Statistics Authority (PSA) recorded that over 6.2 million Filipinos who are employed in tourism-related sectors, contributed 8.6 percent to the country’s GDP, with the combined domestic and international tourism expenditure reaching an astounding PHP3.36 trillion for 2023;
After 24 years, Philippine tourism garnered PHP2.09 trillion, posting 47.9 percent growth, according to The Tourism Direct Gross Value Added (TDGVA);
In travel services, the Bangko Sentral ng Pilipinas noted a net trade surplus of around USD 2.45 billion, recording a high in 15 years;
The Philippines surpassed the projected 4.8 million international visitors in 2023, exceeding its target with 5.45 million;
Overall tourist experience has been augmented with the construction of strategic infrastructure including the Tourist Rest Areas and tourism roads;
The Filipino workforce on the Filipino Brand of Service Excellence (FBSE) and Tourism Industry Skills Program (TISP) programs has been strengthened with digitalization efforts, expanding the country’s tourism product portfolio;
For 2025, an allocation of PHP 3.394 billion for 2025 has been prepared for The DOT’s National Expenditure Program (NEP), of which 83% or PHP2.84 billion is accounted for by the Office of the Secretary (OSEC), PHP 384 million will go to the National Parks Development Committee (NPDC), PHP 146 million to the Intramuros Administration (IA) and PHP 25 million to the Philippine Commission of Sports Scuba Diving (PCSSD).
Also noteworthy is DOT’s budget proposal of Php 13.4 billion for FY 2025, which includes additional funding for its landmark projects.
“With 12.9 percent of the entire national workforce employed in tourism-related sectors, 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 these impressive milestones set by the DOT, the country’s tourism industry sees a continuous resurgence and support by the government, reemphasizing the Philippines’ world class tourism and hospitality.
