WTTC: Tourism contributed P1.4T to economy
MANILA, Philippines–The Philippine travel and tourism sector contributed a total of P1.4 trillion to the local economy in 2014, reflecting not only the economic activities of related industries, but also the “wider effects from investment, the supply chain and induced income impacts,” according to the World Travel and Tourism Council (WTTC).
Based on the WTTC’s Travel and Tourism Economic Impact 2015 report released Tuesday, the total contribution of the sector is expected to further increase by 5 percent this year and projected to steadily rise by 5.7 percent yearly to P2.58 trillion by 2025.
Based on the total contribution to the country’s gross domestic product (GDP), the Philippines ranked 69th of the 184 countries assessed by WTTC.
In terms of direct contribution to the local economy, the Philippine travel and tourism sector accounted for 4.2 percent of the country’s GDP, equivalent to about P533 billion.
“This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services [excluding commuter services]. But it also includes … the activities of the restaurant and leisure industries,” WTTC explained.
The sector’s direct contribution is similarly expected to grow by 4.9 percent to P559.4 billion in 2015, and to continue its rally of about 5.6 percent yearly to P964 billion by 2025.
Data from WTTC showed that the travel and tourism sector was estimated to have attracted as much as P92.4 billion in investments last year. Capital spending for this sector may further rise by 3.3 percent this year, and by 4.8 percent a year over the next 10 years to P151.9 billion by 2025.
In terms of direct employment, the sector also directly supported 1.26 million jobs, or about 3.3 percent of total employment last year. This, according to WTTC, included employment by hotels, travel agents, airlines and other passenger transportation services, as well as the activities of the restaurant and leisure industries directly supported by tourists.
This direct employment contribution is seen to further increase by 2.6 percent in 2015, and by 2.6 percent yearly to 1.7 million jobs by 2025.
In terms of total contribution to employment, the figures are much higher as the tally included both the direct and indirect jobs supported by the travel and tourism sector.
“The total contribution of travel and tourism to employment, including wider effects from investment, the supply chain and induced income impacts, was 4.232 million jobs in 2014 [equivalent to 11.1 percent of total employment]. This is forecasted to rise by 2.5 percent in 2015 to 4.338 million jobs [or 10.9 percent of total employment]. By 2025, travel and tourism is forecasted to support 5.613 million jobs,” the WTTC report stated.
The travel and tourism council revealed that visitor exports—defined as money spent by foreign visitors to a country—generated P255.7 billion, accounting for about 6.9 percent of the country’s total exports in 2014. This, however is projected to fall by 0.3 percent in 2015 even as international tourist arrivals are seen to reach 4.86 million this year. But a rebound is expected as visitor exports may grow by 6.6 percent yearly to P485.2 billion by 2025, when international tourist arrivals are forecasted to reach 8.024 million.
Globally, the travel and tourism sector generated $7.6 trillion in 2014, accounting for about 10 percent of the world’s GDP. It also supported some 277 million jobs last year.
“Recent years have seen travel and tourism growing at a faster rate than both the wider economy and other significant sectors such as automotive, financial services and health care. Last year was no exception. International tourist arrivals also surged, reaching nearly 1.14 billion and visitor spending more than matched that growth. Visitors from emerging economies now represent a 46-percent share of these international arrivals, proving the growth and increased opportunities for travel from those in these new markets,” WTTC reported.
The council added that travel and tourism expansion would “continue at a stronger rate than last year, with the total contribution to GDP expected to increase by 3.7 percent.”