Tourism sector generates P2.35 trillion for Philippine in 2024

MANILA, Philippines — The economic value of the country’s tourism sector rose by 11 percent last year, supported by strong travel demand and the government’s promotion efforts.

The Tourism Satellite Account released by the Philippine Statistics Authority (PSA) showed that the tourism sector’s direct gross value added (TDGVA) increased to P2.35 trillion in 2024 from P2.12 trillion in 2023.

In terms of the tourism sector’s contribution to the Philippine economy, PSA data showed that the sector’s share to gross domestic product also went up to 8.9 percent last year from the previous year’s 8.7 percent.

The PSA data is based on tourist expenditures in the country. These cover accommodation services; food and beverage services;  travel agencies and other reservation services; entertainment and recreation; shopping and miscellaneous services.

“The increase in TDGVA reflects the sector’s continued recovery and resilience post-pandemic. This growth was likely driven by stronger domestic travel demand, recovering international arrivals and sustained government investments in tourism infrastructure and marketing,” Philippine Institute for Development Studies senior research fellow John Paolo Rivera said in an email.

He said meetings, incentives, conferences and exhibitions (MICE), revenge travel behavior and the rollout of regional tourism circuits also contributed to higher tourism economic gains.

Of the different forms of tourism expenditures, PSA data showed that outbound tourism expenditure posted the highest growth of 37.5 percent to P345.68 billion in 2024 from P251.35 billion in 2023.

This was followed by domestic tourism expenditure, which grew by 16.4 percent to P3.16 trillion from P2.71 trillion.

Meanwhile, inbound tourism expenditure increased slightly to P699.98 billion from P697.49 billion.

Internal tourism expenditure, which covers inbound and domestic tourism expenditure, grew by 13.1 percent to P3.86 trillion from P3.41 trillion.

The country’s tourism sector employed 6.75 million last year, up by 6.1 percent from 6.37 million in 2023.

Rivera said the outlook for the tourism sector remains positive for this year, citing  aggressive promotional efforts and digital transformation initiatives.

“However, external risks such as geopolitical tensions and rising travel costs may temper growth, so sustaining momentum will require policy consistency and further improving ease of travel,” he said.

He also said infrastructure would be needed to allow the sector to expand capacity to welcome or accommodate more tourists.