Unlocking tourism growth

According to a recent AMRO commentary by Zhan Bella Guo, former associate economist of the ASEAN +3 Macroeconomic Research Office, the Philippines has been claiming the global spotlight for its tourist attractions.

- MARIANNE GO

At the prestigious World Travel Awards Asia and Oceania Gala held in October this year, the Philippines swept six major titles — including Asia’s Leading Beach Destination, Leading Dive Destination and Leading Island Destination.

Boracay and the Clark Freeport Zone earned individual honors, while the Department of Tourism (DOT) was named Asia’s Leading Tourist Board.

The accolades, Guo pointed out, reaffirm the Philippines’ standing as one of Asia’s premier destinations. However, despite the string of successes , she said, lies a deeper question: How can the country convert global recognition of its natural beauty into a powerful engine for sustainable and inclusive growth — one that benefits communities across the archipelago?

Tourism, she noted, has long been a cornerstone of the Philippine economy. In 2024, the sector’s gross value added reached P3.5 trillion — seven percent higher above prepandemic levels — and accounted for 13.2 percent of gross domestic product or GDP.

It also supported 4.9 million jobs, or 13.8 percent of the labor force. AMRO’s analysis, Guo cited, shows that tourismrelated industries — such as hotels and restaurants — can generate higher domestic value-added per unit of production input than the average for all sectors, making the sector a key driver of the country’s post-pandemic recovery.

Yet the picture is uneven, she said, while domestic tourism continues to anchor overall demand, the rebound in international visitors has been slower than expected. In 2024, domestic tourism expenditure rose to P3.2 trillion, marginally higher than in 2019 and accounting for three-fourths of total tourism spending.