Tourism continues to lag but holds potential to rebound

TOURISM continues to track below its pre-pandemic performance, with the accommodations sector continuing to lag the rest of the industry, giving it some potential for an upside surprise, according to Unicapital Securities, Inc.

- By Justine Irish D. Tabile Reporter

“We think this is one of the sectors that we need to watch because they offer a strong opportunity to rebound,” Jemimah Ryla R. Alfonso, equity research analyst at Unicapital said.

Tourism gross value added remains below its pre-pandemic level of P2.51 trillion because of the “continued underperformance of the accommodation services segment, weighed down by the sluggish recovery in international tourist arrivals that remain well below pre-pandemic levels,” Unicapital said in its Midyear Outlook.

Last year, Ms. Alfonso said the tourism industry accounted for 8.9% of gross domestic product (GDP), contributing P2.4 trillion to the economy.

“In 2019, the tourism direct gross value added accounted for P2.51 trillion. Five years after that, we still hover below that threshold of P2.51 trillion,” she added.

Unicapital said tourist arrivals in 2024 amounted to 5.9 million, well below the pre-pandemic 8.3 million.

“The slow momentum continues into 2025, with data from January to April showing arrivals trailing 27% below pre-COVID levels for the same period,” it said.