The tourism industry in the Philippines achieved remarkable milestones in 2023, marking unprecedented growth and economic contribution. According to data from the Philippine Statistics Authority (PSA), the sector’s Gross Value Added (GVA) surged significantly, underscoring its pivotal role in the nation’s economic landscape.
Key Statistics
In 2023, the Tourism Direct Gross Value Added (TDGVA) reached an impressive Php2.09 trillion (US$35.6 billion), representing a staggering 47.9% increase from the previous year. This growth is the highest recorded since data collection began in 2000, highlighting the sector’s resilience and expansion.
GDP Contribution
The tourism sector’s contribution to the Gross Domestic Product (GDP) of the Philippines rose to 8.6% in 2023, up from 6.4% in 2022. This substantial increase underscores its growing significance as a driver of economic activity and employment.
Components of Tourism
The PSA defines tourism as encompassing a variety of sectors, including accommodation services, food and beverage establishments, transportation services, travel agencies, entertainment and recreation services, shopping, and other related services. These components collectively contribute to the vibrant tourism ecosystem in the Philippines.
Expenditure Trends
Inbound tourism expenditure surged by 87.7% in 2023, amounting to Php697.5 billion (US$11.9 billion), reflecting increased international interest in the Philippines as a destination. Meanwhile, domestic tourism expenditure also saw robust growth, rising by 72.3% to Php2.67 trillion (US$45.5 billion), indicating strong domestic tourism participation and spending.
Employment Impact
Employment within the tourism industries grew to 6.21 million in 2023, marking a 6.4% increase from the previous year. The sector’s share of total employment in the country reached 12.9%, highlighting its role as a significant provider of jobs and livelihoods.
Government Perspective
Tourism Secretary Christina Frasco emphasized the positive implications of these statistics, attributing the growth to the enthusiasm of Filipinos for exploring their own country and supporting local businesses. She noted the increasing attractiveness of the Philippines as a destination for both international travelers and Filipino expatriates.
The unprecedented growth of the tourism industry in 2023 underscores its pivotal role in the Philippine economy, driven by robust domestic spending, surging international interest, and substantial employment generation. As the sector continues to expand, it promises to further enhance economic resilience and contribute to the country’s development trajectory.