Philippine Tourism Sector Contributes Record $91.8 Billion to Economy in 2025
The travel and tourism industry in the Philippines made a staggering contribution of US$91.8 billion to the national economy in 2025, according to the latest Economic Impact Report (EIR) released by the World Travel and Tourism Council (WTTC). This landmark figure underscores the sector's critical role as a primary driver of economic growth and resilience for the country.
Tourism's Dominant Role in the Philippine Economy
The Department of Tourism (DOT) highlighted the report's findings on Friday, emphasizing how tourism continues to fuel national development. The report was formally presented at the Asian Development Bank (ADB) during a meeting of Southeast Asian tourism ministers held in Cebu City.
Key data from the report reveals that tourism now accounts for 19.9 percent of the entire Philippine economy. This positions the Philippines as a leading tourism powerhouse in Southeast Asia, surpassing major regional economies such as:
- Indonesia with US$71.7 billion
- Thailand with US$67.3 billion
- Singapore with US$54.6 billion
Massive Employment Generation and Regional Leadership
Beyond economic output, the tourism sector is a formidable job creator in the Philippines. The industry supported approximately 11.2 million workers nationwide in 2025, equivalent to 23 percent of the country's total employment. This employment figure is second only to Cambodia in the Southeast Asian region, highlighting the sector's vital role in livelihood generation.
Insights from the Asian Development Bank and ASEAN Focus
During the presentation, ADB Economist Sanchita Basu Das noted that tourism remains a key catalyst for economic advancement across the region. She encouraged the Association of Southeast Asian Nations (ASEAN) to prioritize increasing spending per tourist under its new strategic plan spanning from 2026 to 2030.
Comparative data shows that while Southeast Asia's average spending per tourist reached US$1,085 in 2024, it still lags behind other regions:
- North America at US$2,165
- Central America at US$1,441
- Northern Europe at US$1,510
In the Philippines, however, spending per tourist showed significant improvement, rising to US$1,631 in September 2025 from US$1,184 in 2019, indicating a positive recovery trend.
Strategic Recommendations for Regional Tourism Growth
The ADB report suggests concerted efforts to boost the share of intra-regional tourists within ASEAN from 38 percent to 45 percent by 2030. This recommendation comes as ASEAN welcomed an estimated 144 million tourists in the past year, exceeding the pre-pandemic record of 143.6 million set in 2019.
At the closing of the 2026 ASEAN Tourism Forum on Friday evening, Tourism Secretary Christina Frasco affirmed the Philippines' readiness to support ASEAN's vision of enhancing regional connectivity. The goal is to build a tourism framework that is inclusive, sustainable, and resilient against future crises.
Secretary Frasco also expressed hope for expanding flight routes, particularly with neighboring Southeast Asian countries, to facilitate greater tourist mobility and economic integration within the region.
