Travel, tourism sector adds P2.85T to PH GDP
The Philippine travel and tourism industry contributed a total of P2.85 trillion to the local economy in 2016, equivalent to 19.7 percent of the country’s gross domestic product (GDP), according to the latest report of the World Travel and Tourism Council (WTTC).
The industry’s total contribution to GDP, reflecting the economic activities of directly related industries and wider effects from capital investment, government spending and supply chain, is expected to increase by 7.8 percent this year and further grow by 5.3 percent yearly to P5.13 trillion or 20.7 percent of GDP in 2027, data from WTTC Economic Impact 2017 report showed.
Direct contribution to GDP or the economic activity generated by industries, such as hotels, travel agents, airlines, and other passenger transportation services and restaurant and leisure industries supported by tourists, increased to P1.19 trillion or equivalent to 8.2 percent of last year’s total GDP.
It is also forecast to rise by 7.6 percent this year and further increase by 5.2 percent yearly to P2.11 trillion by 2027, or 8.5 percent of total GDP.
The report also showed that investments last year reached P89.6 billion or 2.6 percent of total investment.
The council expects it to rise by 9.5 percent this year and grow by 4.4 percent annually over the next 10 years to P150.2 billion in 2027, or 2.5 percent of total investments.
The money spent by international tourists, also known as visitor exports, is considered by the council as a key component of the direct contribution of travel and tourism.
It reached P316 billion or 7.8 percent of total exports last year and is forecast to rise by 11.1 percent this year.
The country is also expected to attract 6.534 million international tourist arrivals.
By 2027, international tourist arrivals is expected to balloon to 10.8 million, generating expenditures of P676.1 billion, with an annual increase of 6.8 percent.
The Philippine travel and tourism sector also directly supported 2.22 million jobs or 5.5 percent of total employment.
This figure included employment in hotels, travels, travel agencies, airlines, and other passenger transport services and restaurant and leisure activities dealing with tourists.
This is also expected to rise by 5.3 percent this year and further grow by 2.4 percent annually to 2.96 million jobs in 2027.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.