The Philippine maritime sector continues to serve as a crucial economic engine, generating over P1.06 trillion in total output and supporting close to 400,000 jobs in 2024, according to recent research findings.
Massive Economic Contribution Revealed
At a press briefing on November 11, 2025, Winston Conrad Padojinog, president of the Center for Research and Communication (CRC), disclosed that the sea-based sector has contributed nearly P1.5 trillion to the Philippine economy over the past five years since 2021.
"This represents about P377 billion every year that is injected into the economy," Padojinog stated. "It constitutes about 20 percent of our total overseas remittances, and it's about 1.6 percent of our GDP. But we are just looking at direct impact."
The CRC study found that in 2024 alone, foreign shipowners spent approximately P54.3 billion in the Philippines for training, accommodation, and pre-deployment requirements. Meanwhile, Filipino seafarers sent home P277.4 billion in remittances to their families.
Multiplier Effect Creates Trillion-Peso Impact
The combined activities created P331.7 billion in direct economic impact and P1.06 trillion in total output, equivalent to four percent of the country's GDP. The industry also generated P150.1 billion in household income and 398,839 jobs, representing about 0.8 percent of national employment.
Padojinog explained the powerful multiplier effect: "For every peso that the household spends on the economy, it generates at least P3.2 for the rest of the Philippine economy. If we combine everything, our estimates indicate that for every one peso that is spent by an average household, it generates at least P3 more."
He highlighted how seafarers' spending benefits multiple sectors beyond food, including housing needs, transportation such as motorcycles and cars, and education.
Lifting Families Out of Poverty
The industry significantly elevates household incomes, according to the study. Padojinog noted that when a Filipino seafarer gets deployed, the family immediately moves up the income class.
"From a low-income class of P300,000 every year for a family of five, it will now be at least P800,000 every year," he said. "That's the best way by which many Filipinos, among other sectors, to be eliminated from poverty, which, at the moment, stands at about 11 percent of our total households."
Shipowners' spending alone supported 116,155 jobs and P43.7 billion in household income, demonstrating the broad economic benefits beyond direct seafarer employment.
Challenges Threaten Competitive Edge
Despite the impressive performance, Padojinog warned that regulatory uncertainty, uneven enforcement, and legal ambiguity threaten the stability of this high-performing industry.
"When confidence is damaged, shipowners don't negotiate. They quietly move contracts to other countries," he cautioned.
The CRC president emphasized the importance of preserving global confidence in Filipino seafarers as competing nations including India, Indonesia, and China ramp up their training and deployment programs.
He also identified several critical areas needing attention, including addressing mental health stability for seafarers onboard and ensuring continuous training and skills upgrading.
"What makes the Philippines competitive is that we have a mature industry chain and, of course, the critical thing is the ship owners who continue to believe in our Filipino talents," Padojinog said. "But again, we have to make sure that not only does our Filipino talent remain competitive, but also that the industries that service them to make them competitive and attractive should be protected."
He stressed that the government must ensure the policy environment allows for long-term planning to enable partnerships to flourish, ensure contracts are followed, and protect seafarers' welfare and rights.
"If we are not careful, we may lose our competitive edge," Padojinog concluded, underscoring the urgency of addressing these challenges to maintain the Philippines' position as a global maritime leader.
