The share of tourism to the country’s gross domestic product (GDP) could reach as high as eight percent this year due to the further reopening of the Philippine economy, an economist said on Friday.
In an interview with the Philippine News Agency (PNA), Rizal Commercial Banking Corporation chief economist Michael Ricafort said the share of tourism to the GDP could grow to 7 to 8 percent, from more than 6 percent in 2022, given the continued recovery and growth in foreign and local tourism due to the easing of restrictions since early 2022.
“Tourism’s contribution to the economy continued to increase as the economy reopened towards greater normalcy, with no more large lockdowns since 2022 that eased restrictions on the movement of tourists around the country as increased vaccination doses effectively reduced new COVID-19 cases,” Ricafort said.
Data from the Philippine Statistics Authority (PSA) showed that in 2022, the share of Tourism Direct Gross Value Added (TDGVA) to the Philippine economy, as measured by the GDP, is estimated at 6.2 percent.
The TDGVA amounted to PHP1.38 trillion last year, higher by 36.9 percent from PHP1.00 trillion in 2021.
Ricafort said the government’s policy to keep the economy as open as possible and the optional wearing of face masks further boosted both local and foreign tourism activities around the country.
He added that China, which is one of the biggest sources of tourists for the country, also eased restrictions last December 2022, thereby allowing more foreign tourists from the said country to come to the Philippines.
“For the coming months, tourism, both local and foreign, could still contribute more as a bright spot for the local economy, as a source of additional jobs and other business opportunities in various tourist destinations around the country, especially outside Metro Manila, also positively contributing to business and other economic activities in nearby areas of major tourist destinations,” said Ricafort.
Ricafort however cited the importance of further investing in adequate infrastructure such as airports, seaports, toll roads, mass transport systems, among others to support a higher number of foreign and local tourists. (PNA)
