Tourism is said to have accounted for almost a fifth—or 19.7 percent—of the country’s gross domestic product in 2016. JILSON TIU
A hefty P2.85 trillion was poured into the Philippine economy last year, thanks to the country’s booming travel and tourism industry.
At this level, the said industry is said to have accounted for almost a fifth—or 19.7 percent—of the country’s gross domestic product, according to a report by the World Travel and Tourism Council last month.
And there seems to be no signs of letting up or slowing down.
Sustained growth
For this year, the total contribution of the said industry is poised to grow by 7.8 percent to a whopping P3 trillion, and by an average of 5.2 percent yearly up to 2027.
By total contribution, the WTTC referred to the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services; activities of the restaurant and leisure industries; as well as the wider effects from investment, the supply chain, and induced income impacts derived from related industries.
The WTTC report further disclosed that this industry supported a total of 18.1 percent or 7.4 million jobs in the country in 2016; generated roughly P316 billion in visitor exports last year; and attracted P89.6 billion in fresh capital investments.
By any measure, the impact of the local travel and tourism industry is no less than astounding, being able to generate the much needed quality jobs to ensure inclusive growth, and sending massive ripple effects across a number of industries to include even the micro, small and medium sized enterprises.
Growth drivers
Even the Philippine real estate sector is realizing the favorable gains that can be had from such a thriving industry, with many local players now putting up more hotels as well as world class leisure and entertainment facilities to cater to the influx of local and international tourists.
Add to that the fact that the country is steadily attracting more foreign brands in the hospitality and gaming sectors.
Property consultancy firm Colliers International Philippines Research, in its Top 10 Predictions for 2017, cited the expected growth in tourism related sectors, citing more specifically how affordable hotels will define the hotels and leisure segment.
“The emerging segment of affordable hotels is likely to drive the market given the rising number of local entrepreneurs and domestic tourists. Colliers sees local developers expanding their hotel portfolio to cater to this market,” Colliers said.
According to Colliers Philippines, it expects hotel occupancy rates in Metro Manila stabilizing between 65 percent and 70 percent over the next 12 months, and that the entry of more foreign hotel brands including Grand Hyatt, Okada, and Dusit’s D2 is seen to continue this year. It also anticipates the development of more resort hotels in tourism hubs in Visayas and Mindanao.
“Foreign arrivals are estimated to reach 6.5 million, and both affordable and luxury hotels stand to benefit. Unfortunately, the growth of tourism sector is still hampered by the capacity limitations of existing airports,” Colliers added.