Facilitating tourism recovery through investments

By Mhicole A. Moral, Special Features and Content Writer

Tourism is making a strong rebound after years of setbacks caused by the coronavirus disease 2019 (COVID-19) pandemic, with both local and international visitors fueling the recovery.

According to the Philippine Statistics Authority, tourism directly contributed 8.9% of the country’s gross domestic product in 2024. The Tourism Direct Gross Value Added, which measures the sector’s share in the economy, reached P2.35 trillion. This number was an 11.2% increase compared to 2023.

Filipino travelers also spent more when going abroad, with outbound tourism expenditure reaching P345.68 billion, higher by 37.5% than the previous year. Domestic and inbound spending combined amounted to P3.86 trillion, showing growth of 13.1%.

The Department of Tourism (DoT) reported that revenue from foreign travelers exceeded P760 billion in 2024. This figure was a 9% increase from 2023 and more than double the level recorded in 2019, before the pandemic disrupted travel.

Tourism Secretary Ma. Esperanza Christina G. Frasco said international visitors spent more than $2,000 per person on average, which placed the Philippines among the top in Southeast Asia.

“The international visitor receipts show that our recovery in tourism performance has already gone beyond our pre-pandemic numbers,” Ms. Frasco said in a televised briefing.

Post-pandemic resilience

Data from the World Travel and Tourism Council shows that the Philippines ranks first in Southeast Asia in domestic tourism spending, with more than $66 billion generated by local travel.

Filipino travelers are also showing new habits that go beyond traditional three-day trips. The Philippine Travel Agencies Association report a growing demand for longer stays, where visitors spend extra days exploring at a slower pace.

Jaslyne Vanessa C. Estrada, co-founder of MaxJourney Travel Agency, said Filipino tourists are eager to try experiences outside the usual beach trips. In fact, many visitors now visit cultural towns and heritage villages.

“They want something different from what they usually see in the city. They shop, look for new crafts, and try local food,” Ms. Estrada told BusinessWorld. “Travelers are willing to pay for experiences that give them a sense of connection with local communities.”

Such changes are also helping smaller towns and inland provinces attract more visitors, which are now included in travel itineraries and giving businesses in less-publicized destinations new opportunities to grow.

While competition is tough, the demand for authentic and unique services gives businesses space to expand. However, success depends on their ability to adjust to what tourists expect.

According to Ms. Estrada, not every provider can meet customer requests all the time, but she emphasized that the demand itself creates new business opportunities.

“MSMEs that form partnerships with suppliers to offer additional products and services can expand what they provide and reach new markets,” she explained. “In the long term, the responsiveness of businesses builds reputation and trust. We believe the return will be a stronger customer base, more repeat clients, and higher spending per tourist.”

President Ferdinand R. Marcos, Jr. has announced that his administration will maintain programs aimed at giving micro, small, and medium enterprises (MSMEs) better opportunities to grow.

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“Tourism brings livelihood and development to countless communities,” Mr. Marcos said in a statement. “That is why government is committed to support enterprises that keep this sector alive.”

Recently, the President awarded loan packages to nine businesses under the Turismo Asenso Loan Program. Launched in July, the program offers up to P20 million in financing with competitive interest rates and flexible repayment terms. The initiative is intended to provide businesses with capital to strengthen their services for both domestic and foreign travelers.

Beyond loans, the government also highlighted other programs that support small enterprises, including the establishment of Negosyo Centers, the Go Lokal! campaign to promote local products, trade fairs for market access, and the construction of Tourist Rest Areas.

Infrastructure shaping tourism

Infrastructure has long been one of the main measures used by the government to gauge the competitiveness of the tourism industry. For an archipelagic country like the Philippines, the quality of facilities carry the weight in shaping impressions of the country.

For instance, the recent privatization of Ninoy Aquino International Airport (NAIA) is expected to ease congestion, reduce waiting time, and improve the services that tourists encounter as soon as they land.

The government has also mapped out plans for upgrades in regional airports. Projects are lined up in Bohol, Dumaguete, Laguindingan in Mindanao, and the Bicol region. These expansions are meant to provide better access to destinations that once relied heavily on limited flights and long ferry rides.

In addition, the DoT and the Philippine Ports Authority are preparing new cruise terminals in island provinces to meet the growing demand in sea transportation.

On land, more than 500 kilometers of tourism roads have been completed in partnership with the Department of Public Works and Highways. The roads connect small communities to markets, help local businesses expand, and opportunities for residents to participate in tourism.

“When more roads are open and flights are more frequent, we get more customers,” Ms. Estrada explained. “The increased accessibility has allowed providers to hire more staff and offer more jobs.”

Dominic Forrest, chief technology officer of multinational company iProov, pointed out that the Philippines has the chance to modernize its systems faster than countries that rely on older technology. He highlighted that investments in border management and digital infrastructure could improve both efficiency and security.

“The ability to arrive in a country and walk straight up to an officer without needing to search for documents makes a real difference for travelers,” Mr. Forrest said in an exclusive interview. “Smoother entry processes not only save time but also allow people to spend more time on meaningful interactions.”

Leveraging technology on tourism

The DoT is expanding its use of digital tools to make travel across the Philippines easier, faster, and safer for visitors.

Ms. Frasco announced that the agency launched the country’s first Tourist Assistance Call Center, branded as 151-TOUR. The hotline is open to both local and foreign travelers who need help with concerns such as medical assistance, destination inquiries, or other emergencies. When necessary, the center refers cases to local governments or partner agencies. Since its opening, the hotline has already received thousands of calls from tourists representing more than 70 nationalities.

At the same time, the DoT, along with the Tourism Promotions Board, introduced the Enhanced Travel Philippines mobile application. The application gives users details on attractions, festivals, and tourism products across all regions of the country. It also connects travelers directly to accredited tour guides, agencies, and operators.

Such efforts, according to Ms. Frasco, are part of the government’s plan to provide visitors with easy access to information and direct assistance.

“If tourists know they can get assistance and plan their trip with confidence, they will want to come and return,” she added.

On the other hand, digital upgrades are not limited to communication tools. Mr. Forrest explained that digital system updates allow travelers to complete parts of the verification process before leaving their home countries.

“Travelers prefer completing some of these steps before departure instead of waiting in long queues after landing. It is about security and convenience,” he said.

According to the World Bank, digital identity systems are closely linked to higher economic growth. Smoother arrivals and stronger security can encourage first-time visitors and attract repeat travelers, particularly those who spend more during their stays.

THE PHILIPPINE STAR FILE PHOTO

Ambitious tourism plans

As competition in Southeast Asia grows tougher, the country is under pressure to keep pace with its neighbors that spend more money on promotions and tourism programs.

The DoT is seeking a P3.7-billion budget for 2026 to expand projects that aim to attract more visitors and improve their overall experience. A large part of this will be used for marketing campaigns to raise the country’s profile abroad.

While the Office of the Secretary would see a 2% increase to P3.1 billion, funding for the Intramuros Administration and the National Parks Development Committee would fall by 46% and 15%, respectively. In contrast, the Philippine Commission on Sports Scuba Diving would benefit from an 84% increase.

Beyond marketing, the agency is working with the Philippine Hotel Owners Association and other private partners to expand lodging options across the country. More hotels, resorts, and other accommodations are expected to support higher tourist arrivals and encourage longer stays.

Additional initiatives include upgrading rest areas with clean facilities across the three major regions. Ten facilities are complete, 22 are under construction, and 60 more are planned. First-aid stations and hyperbaric chambers for diving destinations are also part of the expansion, aimed at improving visitor safety and experience.

The Philippine Experience Program, one of the DoT’s flagship initiatives, keeps on expanding across the country through festivals, heritage, local food, traditional arts, and natural attractions.

The agency also partnered with Klook Philippines to tap into a wider market and make tours more accessible to domestic and international travelers.

“Through experiential travel, we hope to introduce the very essence of our nation more deeply to our tourists and instill a sense of pride and patriotism among the Filipino people through greater appreciation of our country’s inheritance and legacy,” said Ms. Frasco.