Philippine Travel and Tourism Industry: Ready for Takeoff

What's holding Filipinos back from traveling? Study reveals top concerns

The travel and tourism industry in the Philippines is a crucial driver of economic growth, the country is looking for a strong comeback after facing significant challenges during the COVID-19 pandemic.

In 2019, the industry contributed a remarkable 12.7% to the country's GDP, amounting to PhP 2.48 trillion, and employed around 5.7 million Filipinos, making it a vital source of income for local communities.

However, the COVID-19 pandemic dealt a severe blow to the sector, causing massive disruptions and job losses over the past few years. In 2021, the sector was only able to contribute 5.2% to the country’s GDP. Tourism employment in 2021 also took a nosedive at an estimated 4.90 million, which, while higher than the 4.68 million recorded in 2020, is still significantly lower than pre-COVID numbers.

Amidst the adversity, promising signs of recovery are evident. According to a new study by Standard Insights, 76.63% of Filipinos feel safe and secure when traveling internationally despite the COVID-19 situation. Only 6.2% feel insecure about international travel this year. This resurgence of confidence signals a potential revival of the travel and tourism industry.

However, the study also revealed that the increased pricing of travel has become the biggest worry of 67.48% of Filipinos about travel in 2023, particularly with inflation and soaring commodity prices looming in the backdrop. This signifies the growing financial constraints of Filipinos, as they are now finding it more difficult to afford to travel.

Nonetheless, industry experts and government officials remain optimistic about the sector's recovery. They are determined to capitalize on the newfound confidence among Filipino travellers and collaborate closely with businesses and the local community to rejuvenate the industry, reigniting economic growth. The collective efforts of businesses, government agencies, and the Filipino community will be vital in ensuring a successful comeback for the travel and tourism industry in the Philippines.

"The travel industry has always been a major driver of economic growth in the Philippines. However, our insights show that people are now more concerned about the rising cost of travel than they are about health and safety issues, which were a top concern last year. I am convinced that the tourism industry will rebound, and I am eager to see how the public's opinion and behavior evolve in the coming months." – Florian Gaudel, Founder & CEO of Standard Insights