Monday, July 15, 2024
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The World Travel & Tourism Council (WTTC) 2024 Economic Impact Research (EIR) forecasts a record-breaking year for Travel & Tourism in the Philippines. The sector’s economic contribution, job numbers, and visitor spending are all expected to reach new highs.
Economic Contribution
The sector’s contribution to the national economy is set to surpass ₱5.4 trillion this year, marking an almost 25% year-on-year growth and soaring 7.1% above the previous 2019 peak. Travel & Tourism now represents more than one-fifth (21.3%) of the country’s economy, highlighting its critical role in supporting the nation and local communities.
Employment and Visitor Spending
Employment in the sector is projected to exceed 9.5 million jobs, accounting for 20% of the national workforce. Both international and domestic visitor spending are also set to break records, reaching ₱715.6 billion and ₱3.7 trillion respectively, surpassing 2019 levels by 5.7% and 1.8%.
Infrastructure and Government Efforts
This growth underscores the government’s dedication to enhancing tourism infrastructure. Efforts are underway to upgrade regional airports to alleviate congestion at Manila’s main airport and make travel more accessible. Julia Simpson, World Travel & Tourism Council President & CEO, commented on the progress: “The remarkable progress of the Philippines’ Travel & Tourism sector highlights the government’s dedication, putting it at the forefront of its national agenda and continuing to improve infrastructure. This unwavering commitment has not only driven economic growth but also enhanced the global standing of the Philippines as a top travel destination.”
2023 Recap and Future Projections
In 2023, the Philippines’ Travel & Tourism sector grew by 83.6% to reach ₱4.34 trillion, representing 17.9% of the country’s total economic output, though it remained 14% below 2019 levels. The sector created over 608,000 new jobs, bringing the total to nearly 9 million, still trailing 2019 levels by 5.4%. Both international and domestic spending saw significant increases, growing by 104.2% and 83.4% to reach nearly ₱630 billion and ₱2.9 trillion respectively.
Looking ahead, World Travel & Tourism Council forecasts that by 2034, the sector will grow its annual GDP contribution to nearly ₱9.5 trillion, 22% of the Philippines’ economy. Employment in the sector is projected to exceed 11.9 million people, with one in five residents working in Travel & Tourism.
Southeast Asia Outlook
This year, Southeast Asia’s Travel & Tourism sector is projected to grow by 20.6% to reach ₱21 trillion, representing 9.7% of the region’s economy and surpassing the 2019 peak. Jobs are expected to reach over 42.4 million, representing a year-on-year growth of 5.6% and surpassing 2019 levels. International spending is set to grow by 33.2% to hit ₱8.6 trillion, while domestic visitor spending is set to grow by almost 15.8% to reach ₱10.3 trillion.
World Travel & Tourism Council forecasts that Travel & Tourism across the region will continue to grow over the next decade with GDP contribution set to reach almost ₱36 trillion. Jobs are forecast to exceed 56.5 million, creating more than 14 million new jobs.
This research was carried out in partnership with Oxford Economics, with information sourced from UN Tourism (formerly UNWTO), Oxford Economics, and authoritative national databases. All values are in constant 2023 prices and exchange rates, as reported in March 2024, and given in ₱.
About World Travel & Tourism Council
The World Travel & Tourism Council (WTTC) represents the global travel & tourism private sector. Members include 200 CEOs, Chairs, and Presidents of the world’s leading travel & tourism companies from all geographies covering all industries. For more than 30 years, World Travel & Tourism Council has been committed to raising awareness among governments and the public of the economic and social significance of the travel & tourism sector.
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