Tourism earnings projected to hit $6.5B in ’16

The Philippine tourism industry is well poised to sustain its growth momentum this year, as earnings are projected to hit $6.5 billion, while international tourist arrivals are expected to breach the six-million mark.

Earnings from tourism activities last year were estimated to have reached about $6 billion while tourist arrivals stood at 5.3 million, Tourism Undersecretary Benito C. Bengzon Jr. said on the sidelines of the Hospitality Investment Conference on Thursday.

According to Bengzon, the local tourism industry currently accounts for 8.5 percent of the gross domestic product (GDP). The projected $6.5 billion earnings this year will bring the industry closer to its goal of accounting for 10 to 12 percent of the GDP.

Such goal is expected to be realized in three to five years, he added.

Bengzon said the expected growth this year would likely be driven by three critical factors: greater air connectivity, expanding capacity and the continued aggressive marketing and promotions campaign by the DOT.

Accessibility, particularly via air travel, is key to achieving the industry’s growth goal as the country, being an archipelago, and its islands cannot be accessed by land travel. Of the estimated 5.3 million tourists last year, about 99 percent came in by plane and the remaining 1 percent entered the country through cruise ships.

Bengzon said more local destinations such as Cebu, Kalibo and Davao had become more accessible to international flights, resulting in higher visitor traffic.

The thrust of the agency now is to drive more traffic in secondary gateways by taking on a different approach through bilateral air agreements, such as the inclusion of certain provisions and entitlements that will make it easier for foreign carriers to fly to secondary destinations. This is also seen to make it easier for foreign itinerary planners to make the Philippines part of their respective tours and programs, Bengzon said.

He also noted that the country’s capacity to accommodate tourists had expanded, not only in Metro Manila but also in other key destinations.

To address the corresponding infrastructure requirements that come with increased tourism activities, the DOT and the Department of Public Works and Highways are expected to undertake this year P25 billion worth of projects for access roads to major tourism destinations. Last year, the DPWH allocated for such projects P15 billion under a convergence program, Bengzon said.

“It is part of our commitment to investors to make sure that the necessary road infrastructure will be in place. We have a similar convergence program with the Department of Transportation and Communications, to ensure that key airports and seaports will be ready for the influx of visitors,” Bengzon said.