Better connectivity boosts tourism’s growth contribution

MANILA, Philippines — The improving transport connectivity as well as better investment environment has driven the higher contribution of the tourism sector to the country’s gross domestic product (GDP) last year, according to Tourism Secretary Bernadette Romulo-Puyat.

Based on data from the Philippine Statistics Authority (PSA), the tourism industry’s contribution to GDP went up to 12.7 percent in 2018 from 12.2 percent contribution in 2017.

“These achievements in the tourism industry are a result of a holistic and convergent government. The Build Build Build program of the administration has greatly improved infrastructure and transport connectivity, while the ease of doing business, coupled with a facilitative environment for investments, has boosted both visitor and investor confidence in Philippine tourism,” Puyat said.

Puyat attributed the continued growth of foreign arrivals to the improved connectivity and accessibility in the country, particularly with the opening of new airports such as the Mactan Cebu International Airport and the New Bohol Panglao Airport.

The tourism industry’s contribution to the GDP is measured by the Tourism Direct Gross Value Added (TDGVA) which amounted to P2.2 trillion in 2018, a 14.3 percent rise from P1.9 trillion in the previous year.This, however, was the slowest TDGVA growth since 2013 when it rose 12.6 percent.

The growth was mainly driven by domestic tourism expenditure which grew by 21 percent to P3.2 trillion from P2.6 trillion in the year before.

Domestic tourists reached 110 million in 2018, a 14.1 percent rise from 96.4 million domestic tourists in 2017.

In contrast, inbound tourism expenditure dropped by 1.6 percent to P 441.4 billion from P448.6 billion in 2017.

“Compared to the country’s total exports, the share of inbound tourism expenditure was eight percent. Inbound tourism ranked third among the biggest export items in 2018, after miscellaneous services at 31.5 percent and semiconductors at 22.8 percent,” the PSA said.

The Philippines welcomed a total of 7.1 million foreign tourists last year, a 7.65 percent rise from the 6.6 million in the year before.

The PSA also reported that employment in the tourism industry grew an estimated 5.4 million, 1.8 percent higher than the 5.3 million in the previous year.

“Based on the Philippine Tourism Satellite Accounts (PTSA) results, it is also estimated that at least two million poor people benefited from the robust growth of tourism compared to original targets from 2016 to 2018,” the DOT said.

It added that this is in line with the National Tourism Development Plan’s strategic direction on sustainability and inclusive growth