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The Department of Tourism (DOT) on Tuesday (Aug. 20) presented before the House of Representatives (HoR) Committee on Appropriations its Fiscal Year (FY) 2025 budget for the DOT and attached agencies, with Tourism Secretary Christina Garcia Frasco reporting record-breaking performance of Philippine tourism in 2023.

Secretary Frasco reported that Philippine tourism last year surpassed all baseline targets set under the National Tourism Development Plan (NTDP) 2023-2028 for tourism yields (expenditures) and the contributions to national output and employment, marking a significant milestone in the continued resurgence of the industry.

Secretary Frasco reported that Philippine tourism exceeded all baseline targets established under the National Tourism Development Plan (NTDP) 2023-2028 for tourism revenue (expenditures) and its contributions to national output and employment last year.

“These are the indicators that matter the most – the contributions of tourism to job generation and the aspiration to achieve upper middle-income status under the administration of President Marcos Jr. We achieved these because apart from the domestic trips and international tourist arrivals, we now have more products and destinations to offer today. The results of which is a higher length of stay and more spending along the circuits developed across the various destinations in our regions,” Secretary Frasco said, expressing gratitude to members of the House Committee on Appropriations for providing support to Philippine tourism that allowed the attainment of record figures last year.

2023 a banner year for Philippine tourism

Citing the World Travel and Tourism Council’s (WTTC) report, Secretary Frasco shared that the Philippines had the biggest domestic tourism market in Southeast Asia last year. In 2023, the Philippine domestic market was valued at USD 52.1 billion (in terms of domestic visitor expenditure), or equivalent to Php 2.90 trillion.

The Philippines also has the highest contribution to national output in Southeast Asia, with the WTTC estimating the Philippine tourism industry’s contribution of USD 78 Billion or Php 4.34 trillion to the Philippine economy, equivalent to 17.9% of the Philippine GDP. 

The Philippines captured the highest share (24.8%) of the total contributions of ASEAN Tourism to the ASEAN GDP.

“While there have been headwinds, both internal and external, that we continue to grapple with, we have worked as hard as we can with the resources we have been given to transform the Philippines to its full potential. But there is yet much work to be done and this will require significant resources, and with your kind and generous assistance we will be able to accomplish our President’s aspirations for the Philippines to become a tourism powerhouse,” the DOT chief said.

The Philippine Statistics Authority (PSA) in 2023 recorded that over 6.2 million Filipinos found employment in tourism-related sectors last year. Tourism also contributed 8.6 percent to the country’s Gross Domestic Product (GDP), with the combined domestic and international tourism expenditure reaching an astounding PHP3.36 trillion.

The Tourism Direct Gross Value Added (TDGVA) was also recorded at PHP2.09 trillion, posting a 47.9 percent growth—the highest growth of Philippine tourism seen in 24 years. The Bangko Sentral ng Pilipinas also noted a net trade surplus of around USD 2.45 billion in travel services, a feat not seen in 15 years. The Philippines exceeded its target with 5.45 million international visitors in 2023, surpassing the projected 4.8 million.

“Having exceeded our targets for tourism arrivals internationally in 2023, we continue to be optimistic about the prospects of the industry. As President Ferdinand R. Marcos Jr. highlighted in his third State of the Nation Address, the evolution of our tourism sector calls for a dynamic, multi-faceted strategy that positions the Philippines as a premier destination in Asia. This strategic pivot, instituted by the Department of Tourism, reaffirms the central role that tourism plays as a pillar of our nation’s economic development and as a source of national pride,” Secretary Frasco said.

Secretary Frasco presented major tourism wins, including the construction of strategic infrastructure including the Tourist Rest Areas and tourism roads to enhance connectivity and improve the overall tourist experience, expansion of the country’s tourism product portfolio, digitalization efforts, and strengthening of the Filipino workforce on the Filipino Brand of Service Excellence (FBSE) and Tourism Industry Skills Program (TISP) programs, among others.

Lawmakers bat for higher tourism budget

The DOT’s National Expenditure Program (NEP) for next year consists of an allocation of PHP 3.394 billion, of which 83% or PHP2.84 billion is accounted for by the Office of the Secretary (OSEC). Attached agencies, National Parks Development Committee (NPDC), will get an allocation of PHP384 million, while the Intramuros Administration (IA) and the Philippine Commission of Sports Scuba Diving (PCSSD) will have PHP146 million and PHP25 million, respectively.

The DOT had originally proposed a budget of Php 13.4 billion for FY 2025, which includes additional funding to support its landmark projects under the Marcos administration.

“The esteemed members of the House of Representatives, with 12.9 percent of the entire national workforce employed in tourism-related sectors, means that 13 out of every 100 Filipinos directly benefit from this vibrant industry. Multiply that by the average number of members per household and tourism easily benefits over 31 million Filipinos. Therefore, investing in tourism is not just a wise decision but a transformative one. With a total of Php 509 billion tourism investments in 2023, both from the public and private sector, this has already produced over Php 3.36 trillion in tourism receipts, representing a 456 percent return in investment,” Secretary Frasco said.

With DOT’s accomplishments surpassing pre-pandemic levels, several lawmakers during the interpellation have poured their support to the Department’s plans and programs, with some even advocating for a higher budget allocation in support of the tourism industry’s continual resurgence.

“As we gather today to assess the budget and performance of the DOT, it is important to take stock of the meaningful progress made and strengthen our tourism sector. Tourism is not merely a source of national pride; it is a critical pillar of our economy. The initiatives driven by the DOT underscores their unwavering commitment to positioning the Philippines as a leading global destination,” Marikina City 2nd District Representative Stella Luz Quimbo, who sits as Committee Senior Vice Chairperson, said as she commended the DOT’s initiatives.

Meanwhile, Cagayan de Oro City 2nd District Representative Rufus Rodriguez congratulated Secretary Frasco for an ‘impressive’ presentation of the DOT’s accomplishments, as he reiterated tourism’s performance in 2023.

“We have heard and listened to the presentation clearly, the total combined tourism receipts, Mister Chairman, is Php 3.36 trillion. The share to GDP is 8.6%, and you know the difference between GDP and GNP? The GDP is ‘gawa dito ng Pilipinas’. GNP is ‘gawa ng Pilipino inside and outside’. So you see 8.6%, and then 48% increase in the (Tourism Direct) Gross Value Added, and then we go now to the budget. The budget is a measly—Madam Chair—a measly Php 3.39 billion. How can we explain that? How can [DBM] explain that you’re only given this, when the President says we have to accept the challenge of tourism, experiential tourism, and it should be given the support,” Rep. Rufus said.

Committee Vice Chairperson and Aklan 2nd district Representative Teodorico Haresco, Jr. commended Secretary Frasco’s leadership “may yet usher in finally the golden years of tourism,” saying thus far, the DOT has been the “most applauded” agency for the past two weeks.

“There is a unanimous clamor to increase your budget. Not only 100% percent na dagdagan ng budget [mo] but I think, based on the numbers, since the peso depreciated since 2022 by 10%, ang minimum po dapat 10% ang increase. And since there is an impending price hike, baka tumaas po ang program funds ng ating mahal na Presidente, ay sana po ma-increase ang budget, katulad po sana ng, at least, Malaysia,” Rep. Haresco added, citing arrivals of ASEAN neighbors such as Singapore.

Meanwhile, Bulacan 5th district Representative Ambrosio Cruz, Jr. also applauded the DOT, saying “Napakaganda ng performance niyo, lahat kami nag-aagree dito na dapat dagdagan ang budget ng DOT. Maraming salamat, [Madam] Secretary.”

“I would like to congratulate the Secretary; she has done a wonderful job for the country. Deep inside, believe me when I say this, that you have been the best Secretary of DOT this country ever has. Really, you have represented the Philippines very, very well,” said Misamis Oriental 2nd district Representative Yevgeny Vincente Emano.

 On the other hand, Lanao del Norte 1st district Representative Khalid Dimaporo also applauded the leadership of Secretary Frasco as she enjoined fellow lawmakers to work together to “restore the budget of the DOT to pre-pandemic levels”.

“When we first met her here in Congress, she led the charge. She said that she will lead the charge for the [Bongbong] Marcos administration, especially when it comes to the tourism industry, on our return to pre-pandemic levels of tourism, and that really is the hallmark, I think, of our President’s achievements,” Rep. Dimaporo said.

Also expressing their support for the DOT’s budget are Committee Vice Chairperson Ako Bicol Partylist Representative  Jil Bongalon and Baguio City Representative Mark Go, who both assured to manifest the increase of the budget of the Department at the appropriate time.

Bulacan 6th District Representative Salvador Pleyto also showed strong support for Philippine tourism, noting its contribution to the economy and ability to provide opportunities to micro, small, and medium enterprises.

The House Minority likewise expressed support for the DOT as House Assistant Minority Leader Gabriela Partylist Representative Arlene Brosas while inquiring into the list of destinations that benefited from the DOT’s Tourism Road Infrastructure Program (TRIP) convergence with the Department of Public Works and Highways (DPWH), as well as on tourism cooperations signed between the Philippines and other nations.

Likewise, ACT Teachers Partylist Representative France Castro lauded the DOT’s ‘touristic’ presentation, remarking “Napakaganda ng presentation (accomplishments), bagama’t napakaliit ng budget.” 

“I want to commend the whole Department because you [guys] have brilliantly identified the strengths of our tourism industry, not only in our, I guess, main destinations, but also in emerging destinations in other provinces because alam naman po natin na our local tourism all varies eh, what we offer, ‘di ba, our local tourists and also international tourists varies from province to province. And you guys have really done a great job identifying strengths into which areas,” Committee Vice Chairperson Isabela 6th district Representative Faustino “Inno” Dy V said, offering his suggestions as well on emerging tourism products particular to the Northern parts of Luzon.

*Cover Photo/Thumbnail Photo from DOT