Travel and Tourism in the Philippines Contributed Over 8% to National GDP in 2011, Reports Timetric19 Nov 2012 • by Natalie Aster
Travel and tourism in the Philippines contributed 8.5% to the national GDP in 2011, and represented 10.1% of the country’s total employment.
During the review period (2007–2011), the total number of trips undertaken by residents, both domestic and outbound, increased at a CAGR of 9.77%. While domestic trips increased at a healthy review-period CAGR of 11.30%, outbound tourism registered marginal growth at a CAGR of 0.32% due to the economic recession, lower disposable incomes and reduced spending by national residents.
According to the United Nations World Tourism Organization (UNWTO), the Philippines generated the sixth-largest inbound tourist volume in South-East Asia in 2011. The inbound tourist volume increased at a CAGR of 6.25% during the review period which can be attributed to factors such as the country’s growing economy, infrastructure improvements and government initiatives to promote the country as a tourist destination.
According to the report “The Future of Travel and Tourism in the Philippines to 2016” by Timetric, the number of inbound tourist arrivals in the Philippines recorded an annual growth rate of 11.7% in the first half of 2012. The key growth drivers for this include the country’s rapid recovery from the global economic crisis, and globally increasing consumer confidence. South Korea was the source of 22.1% of total inbound traffic.
The Future of Travel and Tourism in the Philippines to 2016
Published: October, 2012
Price: US$ 1.950,00
There is a large amount of domestic tourism in the Philippines, which forms the foundation of demand for travel and tourism services in the country. In 2011, domestic tourists represented 88% of the total tourist volume. The Philippines’ strong economic growth and rapid urbanization led to increasing disposable income levels among the middle-class population, which enabled more Filipino people to participate in domestic tourist activities.
The Philippine government has endorsed a new tourism law in order to further increase tourism and foreign investment in the country. The law, which was implemented in 2009, is intended to address key constraints in the country regarding infrastructure, transportation, investment, quality standards and tourism planning. The law mandates the acceleration of tourism infrastructure development and the preparation of an annual infrastructure development program. In the transportation industry, the government recently signed an executive order for permission to apply for a pocket open skies policy in major airports.
In order to capitalize on the growing opportunities in medical tourism, the Philippines has improved its healthcare infrastructure. In 2004, the government initiated the Philippine Medical Tourism Program to promote the country’s healthcare services internationally. Since then, the number of inbound patients and revenue generated from medical tourism have increased significantly.
The Philippines aviation market is facing intense competition among its low-cost carriers (LCCs). The entry of AirAsia and the SEAir-Tiger airline partnership increased the number of LCCs operating in the country from four to six in 2011, and the market registered double-digit growth in traffic in 2011. Scheduled capacity for airlines operating in the Philippines increased by 13.2% on domestic routes and 12.4% on international routes between 2010 and 2011.
More information can be found in the report “The Future of Travel and Tourism in the Philippines to 2016” by Timetric.
To order the report or ask for sample pages contact email@example.com