The Philippines tourism industry is estimated to stand at USD 12.30 billion in 2024. The industry is forecasted to exceed a valuation of USD 34.47 billion by 2034. The industry is projected to experience impressive growth through 2034, recording a CAGR of 10.80%.
Sales in the Philippines tourism are primarily driven by promotional efforts by tourism boards, travel agencies, and online platforms.
Attributes | Details |
---|---|
Estimated Philippines Tourism Market Size (2024) | USD 12.30 billion |
Forecasted Industry Size (2034) | USD 34.47 billion |
Projected Value CAGR (2024 to 2034) | 10.80% |
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The Philippine economy relies a lot on tourism. Many people like to travel to the Philippines to enjoy its peaceful atmosphere and delicious food. Tourists especially love the Philippines because there are many tasty foods and beverages to choose from. Social media is making more people interested in culinary tourism in the Philippines.
In June 2023, the Philippines introduced its new tourism campaign called "Love the Philippines." It changed it from "It's More Fun in the Philippines" to focus more on real and deep experiences after the pandemic.
On Facebook, Twitter, and Instagram, travel influencers are showing off beautiful places and travel services online. Tourism companies are also putting ads there to reach more people. Consequently, there is likely to be around a 2.8X surge in the sales of tourism in the Philippines by 2034.
Hoteliers are using apps more to manage visitor services, giving them better control over the visitor experience. Also, services like digital check-in and contactless cards are getting popular, while facial and fingerprint verification help with payments and record keeping. This is boosting sales in the Philippines' hospitality industry.
In the Philippines, there are lots of different things to do for eco/sustainable tourism. People can join community activities in the Philippines, like fixing houses, planting mangroves, or helping with schools. They can also teach new skills or work on projects like building a visitor center or fixing up a forest.
From 2019 to 2023, the Philippines tourism industry showed promising growth, boasting a 9.80% CAGR. Hotels in Metro Manila are getting better after the pandemic, with 4 million tourists visiting in the first nine months of 2023.
That is almost twice as many as in 2022 and close to the year-end target set by the Department of Tourism. Tourists have already added USD 5.7 billion to the economy.
Attributes | Quantitative Outlook |
---|---|
Philippines Tourism Industry Size (2023) | USD 11.13 billion |
Historical CAGR (2019 to 2023) | 9.80% |
Prices are still not as high as before the pandemic, and more places to stay are being made. If the government and cities with lots of future places to stay do well economically, more people might want to stay there, and the places might get fuller.
More hotels are being built, with 6,400 new rooms expected by 2026, mostly in Quezon City and Pasay City. This trend is expected to contribute to the positive outlook of the Philippines tourism industry.
Social media is helping the tourism industry in the Philippines grow. Travel influencing is the new buzzword in the market. Travel influencers visit different places to promote tourism, and the Philippines is no exception.
They now share the real footage of places and their experience on platforms like Facebook, Twitter, and Instagram, and tourism companies advertise there too. In the Philippines, there are 86.75 million active people using social media.
As social media platforms are proliferating more day by day, it is expected to help the industry develop more during the forecast period.
In October 2022, the Department of Tourism (DOT) in the Philippines changed the entry rule for travelers with the e-Arrival Card system. This system is easier because it does not need a mobile app and asks for less information. Also, by the end of 2024, the government plans to start a VAT Refund Program to give back VAT on things tourists take out of the country.
DOT started the "Tourism Champions Challenge" to help cities and towns with tourism, giving them USD 3.2 million. Overseas Filipino Workers (OFWs) who bring foreign tourists to the country can win prizes in a raffle called "Bisita, Be My Guest."
Therefore, the future of the Philippines tourism and hotel market looks bright. Hotels in the Philippines are getting better, with more people coming, owing to promotions and help from the government.
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As far as the tourist type is concerned, the domestic segment is likely to perform better in 2024, holding 58.00% of the Philippines tourism industry share. Similarly, the 26 to 35 years segment is expected to generate significant turnover in terms of age group, possessing a 47.00% revenue share of the tourism industry in the Philippines in 2024.
Segment | Estimated Industry Share in 2024 |
---|---|
Domestic Tourist | 58.00% |
26 to 35 Years Age Group | 47.00% |
The domestic traveler segment is likely to become the prime revenue generator within the industry. The main reason Philippine tourism is bouncing back is because more people are traveling within the country. In 2022, most overnight travelers were locals, with around 40 million visitors.
People prefer to visit their own country nowadays because they know about their own culture and interesting places there. Individuals also find domestic traveling cost-effective as it does not necessitate the huge amount of money required for trips abroad or getting visas. These travelers often know people and have friends in the places they visit, so they can do special things that they may not be able to do outside.
The 26 to 35 age group is the top segment in the industry. The main reason this segment is growing is because individuals belonging from this age group have enough money to travel. They are financially stable, so they can go wherever they want, whether it is within their own country or abroad.
People aged 26 to 35 like to travel because they want special and unforgettable experiences in each place they go. They really want to explore different tourist spots and are excited about seeing adventure sites. People in this group also enjoy adventurous activities like scuba diving and exploring different islands, which are easy to find in the Philippines.
Tourism industry players in the Philippines employ miscellaneous strategies to get a competitive edge. Some players give high priority to enhancing infrastructure for smoother travel experiences. At the same time, many prioritize industry to showcase natural beauty and cultural richness.
Some adopt sustainable practices to attract tourists who are extremely concerned about the environment. While others collaborate with the government to leverage policies for tourism promotion. Many make substantial investments in digital platforms for convenient traveler services.
Recent Developments
The industry size for tourism in the Philippines is forecasted to be worth USD 12.30 billion in 2024.
The Philippines tourism market value is projected to surpass USD 34.47 billion by 2034.
The CAGR of the Philippines tourism industry is estimated to be around 10.80% through 2034.
Ecotourism is a key industry trend where travelers indulge in protection and management of natural resources.
Marsman Drysdale Travel Inc. and Rajah Tours Philippines are Philippines Tourism industry leaders.
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