Tourism now comprises 12.7% of Philippines GDP

World Wednesday 12/June/2019 12:24 PM
By: Times News Service
Tourism now comprises 12.7% of Philippines GDP

Manila: The tourism industry’s contribution to the economy of the Philippines reached another milestone in 2018 as it increased to 12.7 percent of the country's’ Gross Domestic Product (GDP), 0.5 percent higher than in 2017 according to data recently released by the Philippine Statistics Authority (PSA).

The increase is noted to have occurred despite the six-month closure of Boracay island, one of the country’s major tourist destinations, for a massive cleanup and rehabilitation works.

Tourism Secretary Bernadette Romulo-Puyat attributed the achievements in the tourism industry to improved infrastructure, greater connectivity, and investor confidence.

“The ‘Build, Build, Build’ program of the administration has greatly improved infrastructure and transport connectivity, while the ease of doing business, coupled with a facilitative environment for investments, has boosted both visitor and investor confidence in Philippine tourism,” Romulo-Puyat said.

“Moreover, these numbers show that the Philippine tourism industry is sustainable; it is an engine for socio-economic growth that provides jobs and income to the country while preserving Filipino culture and tradition as well as conservation of the environment,” she added.

The Tourism Direct Gross Value Added (TDGVA), an indicator that measures the value added to different industries in relation to tourism-related activities, amounted to PHP2.2 trillion (around $42.55 billion), an increase of 14.3 percent from the 2017 TDGVA of PHP1.9 trillion (around $36.75 billion).

Employment in the tourism industry also rose to an estimated 5.4 million, 1.8 percent higher than the 5.3 million in the previous year.

The number of domestic tourists reached 110 million, an increase of 14.1 percent from the previous year’s figure of 96.4 million. This exceeds the 89.2 million target in 2022 underlined in the country's National Tourism Development Plan (NTDP).

Based on the Philippine Tourism Satellite Accounts (PTSA) results, at least 2 million poor people benefited from the robust tourism growth.