Tourism’s share to GDP falls to lowest in 3 years
The Philippine tourism sector’s contribution to GDP fell to 8.1% in 2025, the lowest in three years, due to weaker inbound spending and slower recovery in international arrivals. Domestic tourism spending rose 3%, but outbound spending by Filipinos increased, while inbound tourism receipts dropped 6.4% from 2024.
The Philippines’ tourism industry contributed 8.1% to the country’s GDP in 2025, down from 8.7% in 2024, marking its lowest share in three years, according to the Philippine Statistics Authority (PSA). The tourism direct gross value added (TDGVA) was estimated at P2.27 trillion last year, a 1.4% decline from P2.3 trillion in 2024. Weaker inbound tourism was the primary driver of the decline, with international tourist arrivals totaling 6.48 million—far below regional competitors like Malaysia (42 million) and Thailand (33 million). The PSA attributed the drop to slower recovery in key Asian markets, including China and India, despite eased visa requirements. Shopping (24.7%) and tourism services (22.6%) remained the largest contributors to TDGVA, but overall inbound spending fell 6.4% to P698.46 billion. Tourism Congress of the Philippines President James M. Montenegro highlighted structural challenges, including air connectivity issues and competition from neighboring countries offering visa-free access and improved infrastructure. While domestic tourism spending rose 3% to P3.26 trillion, outbound spending by Filipinos increased 3.5% to P357.93 billion, indicating a shift in travel expenditure away from local destinations. Montenegro emphasized the need for aggressive reforms to boost competitiveness, including better regional marketing and infrastructure upgrades. The decline underscores the sector’s vulnerability to external pressures, despite its high contribution to Southeast Asia’s tourism GDP.
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