Tourism revenues rise 15% to $4.4B in 2013

MANILA, Philippines - The countrys total revenues from inbound tourists rose 15 percent to $4.4 billion or P186.15 billion in 2013 compared to the 2012 level, data from the Department of Tourism (DOT) showed.

Tourism Secretary Ramon Jimenez Jr. attributed the increase in revenues to the improvement in the average daily expenditure of inbound tourists which also increased 8.7 percent to $101.12. 

The overall average length of stay of visitors, however, remained at 9.6 nights. Visitors from the US had the longest average stay at 13.4 nights.

The DOT data showed Koreans, the Philippines’ biggest source market for foreign tourists, spent about $140.81 per day.

Based on per capita spending of the Philippines’ top markets, visitors from Canada recorded the biggest tourism spend at $1,393.68. It was followed by visitors from Australia with a per capita expenditure of $1,382.48.

Other high-spending markets included Germany with $1,360.34; US with $1,334.34; United Kingdom with $1,306.86; and Korea with $ 874.59.

The $4.4-billion tourism revenues for 2013, however, fell short of its target for the year of $4.95 billion.

Sticking with its six million foreign tourists arrival target for 2014, tourism revenues is expected to reach $6 billion this year and $8 billion in 2016.

Tourism receipts have been on the rise for the past years. In 2011, it stood at $2.99 billion and grew to $3.82 billion in 2012.

The DOT earlier reported that total international tourists arrival reached 4.7 million in 2013, surpassing the 4.3 million arrivals recorded in 2012 by 9.56 percent but below the-five million target for the year.

Though below target, Jimenez said this performance marked a new milestone for the tourism industry as visitor arrivals demonstrated sustained growth despite the challenges of the previous year.

The highest growth rates during the year were recorded in February at 15.8 percent; June, 14 percent; and August, 13 percent.

The visitor count reached an all-time high of more than 400,000 during the months of January, February, March, July, and December.

“Our key source markets generally performed well during the month of December, proof that international confidence has been regained.  The Philippines is profoundly grateful for the outpouring of support, aid, and goodwill from all over the world. They were all instrumental in our road to recovery,” Jimenez said.

Koreans remain the biggest source market with a 24.9-percent share in the total inbound visitors or 1.17 million arrivals. It posted a 13- percent growth rate by yearend. 

Jimenez said the successful conclusion of air services agreement in the Korean market contributed to an increase in flight frequencies in the country’s key international gateways.

The US, on the other hand, remained at second place with 674,564 arrivals for a share of 14.4 percent. 

Other top source markets include Japan with 433,705 arrivals; China with 426,352 arrivals; Australia with 213,023 arrivals; Singapore with 175,034 arrivals; Taiwan with 139,099 arrivals; Canada with 131,381 arrivals; HongKong with 126,008 arrivals; United Kingdom with 122,759 arrivals; Malaysia with 109,437 arrivals; and Germany with 70,949 arrivals.

The share of Chinese visitors in total inbound market expanded from 5.9 percent in 2012 to 9.1 percent in 2013.

The Chinese tourist market bounced back with the highest yearend growth rate of 69.9 percent or a total visitor count of 426,352. The substantial increase in Chinese visitors was first felt in May 2013 when arrivals posted a 107.7- percent growth.

The tourism chief noted that the opening of new regular and chartered air services and increase in cruise itineraries gave support to the aggressive marketing activities held in key cities of China.

Despite unresolved political issues, tourists from Hong Kong went up six percent to 126,008 in 2013 from 118,666 in 2012.

The fourth biggest tourists arrival, the Japanese visitors, on the other hand, continued to rise steadily with 433,705 arrivals or a 5.1- percent growth from the previous year. The implementation of new programs and new products targeted at new and niche markets helped revitalize growth in this market. 

By regional grouping, East Asia contributed the biggest arrivals for a share of 49.1 percent with 2.3 million. The region posted a double-digit gain of 12.73 percent vis-à-vis its previous year’s contribution of 2.03 million. 

The ASEAN region maintained its position as the third largest contributor of arrivals, accounting for 9.02 percent of overall traffic base. 

The DOT chief said they are optimistic of hitting the six million foreign tourist arrival target for 2014 as they continue to intensify their tourism marketing and development efforts.

“We foresee better opportunities for growth this year as we continue to roll-out programs under the National Tourism Development Plan (NTDP),” he said.

“We also hope to engage more Filipinos in appreciating the value of tourism in the country’s inclusive growth agenda and encourage them to take an active role in growing the industry by being better hosts to both local and foreign tourists,” he added.