The Philippine travel market remains driven by domestic tourism, according to a report by the Congressional Policy and Budget Research Department (CPBRD).
Drawing data from the Philippine Statistics Authority, CPBRD said tourism expenditures went up by 13 percent to P3.86 trillion in 2024 from P3.41 trillion in 2023.
The local travel market made up 82 percent of the amount at P3.16 trillion, indicating just how reliant the tourism industry is on local tourists. Tourism expenditures from foreigners rose by just below 1 percent to P700 billion, as growth started to taper off from the post-pandemic spike.
The Philippines posted a 9 percent jump in international arrivals to 5.95 million in 2024 from 5.44 million in 2023. However, the figure fell short of the government target of 7.7 million as China – which used to be a top source market – was slow to regain pace.
The CPBRD stressed the urgency of supporting domestic tourism, especially as international arrivals are declining midway into the year.
So far, the Philippines is suffering a double-digit decline in international arrivals from China and South Korea. In response, the Civil Aeronautics Board is negotiating to expand flight capacity between the Philippines and South Korea to encourage travel.
It remains to be seen when the China market would recover in light of weaker Chinese demand for outbound travel and following the blanket ban on Philippine offshore gaming operators, which used to be a driver in Chinese arrivals.
A strong local travel market is a good indication of the overall strength of the sector, which gives an idea of the potential if foreign tourists are maximized. The challenge is for the Department of Tourism, in coordination with the private sector and local government units, to continue growing domestic tourism in a sustainable manner, while at the same time developing the attractions and experiences with the goal of reaching out to the global market that is so much more bigger, but we have barely scratched.*
