Tourism sector seen to contribute P2.7T to economy in 2025 – DOT

The Department of Tourism (DOT) expects the tourism sector to contribute around P2.7 trillion to the Philippine economy in 2025, with domestic travel projected to remain a key growth driver.

Tourism Undersecretary Verna Buensuceso told lawmakers during the House deliberation on the agency’s proposed P3.7-billion budget for 2026 that the sector’s employment could reach 6.8 million next year.

“In terms of our indicative projections for 2025, in terms of tourism employment we’re looking at 6.8 million and for gross value added, we’re looking at P2.7 trillion,” Buensuceso said.

Data showed that tourism’s contribution to the economy in 2024, measured by Tourism Direct Gross Value Added (TDGVA), stood at P2.35 trillion or 8.9 percent of gross domestic product. Employment in the sector reached 6.75 million, up 6.1 percent from 6.37 million in 2023.

The DOT has not released its international arrival targets for 2025, though officials acknowledged that the 2024 goal of 7.7 million visitors was not achieved. Tourism Secretary Christina Frasco cited the postponement of the e-Visa program for Chinese travelers as one of the key reasons. “Had we been able to continue the e-Visa program, then we would have been able to bring in the 2 million,” Frasco said, noting that arrivals reached 5.9 million last year.

Frasco appealed for stronger funding for branding initiatives, pointing out that the budget had fallen to P100 million in 2025 from P1.2 billion prior to the pandemic. “We simply cannot perform as well as we would like if we are given such meager resources as we have,” she said.

She also addressed the drop in South Korean arrivals, explaining that similar declines were observed across Southeast Asia, including Singapore, Thailand, Cambodia, and Vietnam. South Korea remained the Philippines’ top source market in 2024 with 1.57 million visitors, contributing about USD2.3 billion to the economy. As of September 1, arrivals from South Korea had reached more than 880,000.