Economy



By Lucia Edna P. de Guzman


Filipinos among world’s biggest spenders on travel




Posted on September 09, 2016


FILIPINOS ARE expected to almost double their travel spending by 2025, ranking 25th among 50 markets that have deep pockets for international travel, according to a study conducted by Visa, Inc.

Visa estimates that Filipino travelers spent a combined $9.9 billion (P465 billion) on outbound travel in 2015. By 2025, travel spending by Philippines will likely increase by 79% to $17.7 billion.

The top five economies based on international travel spending are China, the United States, Germany, United Kingdom and Russia.

In Southeast Asia alone, the Philippines trails behind Singapore (7th) and Malaysia (24th).

The research tracked the global emergence of a “traveling class,” or people with enough income to travel internationally. It mapped out travel and tourism trends from 2015 to 2025.

“This new traveling class is going to have a deep impact on the global economy through the amount of money that they spend on international travel,” said Visa international economist Richard Lung.

The key drivers that impact global travel are a growing middle class, greater internet connectivity, improved transportation infrastructure across countries, and an aging global population that has more time for leisure travel.

The future traveling class will come from emerging markets, with an older population of travelers. The study cited medical tourism as a trend that would grow stronger from the aging traveling demographic.

The Philippines was no. 37 in the ranking of markets with the highest number of outbound trips by travelers aged 65 and above.

The study found average annual spending by households during a trip will likely rise 8% to $5,230 (P245,000).

Visa conducted its study by looking at the face-to-face transactions of Visa-branded credit cardholders for international travel and comparing the data with that of all active cardholders in the source country. The results were adjusted to represent the source country’s population regardless of payment methods used.

Data gathered and methodology developed by Oxford Economics were also used for this survey.