Manila: The tourism sector is projected to generate PHP2.7 trillion for the Philippine economy in 2025, according to the Department of Tourism (DOT) on Tuesday. Speaking at the House of Representatives' hearing on the DOT's PHP3.7-billion proposed budget for 2026, Tourism Undersecretary Verna Buensuceso emphasized the role of domestic travel as a key driver for the sector.

According to Philippines News Agency, Buensuceso highlighted projections indicating that tourism employment is expected to reach 6.8 million, with the sector contributing PHP2.7 trillion in gross value added. In 2024, the Tourism Direct Gross Value Added (TDGVA) contributed PHP2.35 trillion to the economy, representing 8.9 percent. Employment in the sector also witnessed a 6.1-percent growth, rising from 6.37 million in 2023 to 6.75 million in 2024.

The DOT has not yet disclosed targets or projections for international arrivals in 2025. Tourism Secretary Christina Frasco explained the missed 2024 target of 7.7 million foreign visitors, attributing it to factors such as the delayed e-Visa program for the Chinese market. Frasco noted that the continuation of the e-Visa program could have potentially increased arrivals beyond the projected figures.

The DOT is advocating for an increased branding budget, which has been significantly reduced from PHP1.2 billion pre-pandemic to PHP100 million in 2025. Frasco appealed for greater financial support, highlighting the impact of limited resources on the sector's performance.

Additionally, Frasco addressed the decline in South Korean tourist arrivals, clarifying that this trend is not unique to the Philippines. A similar decrease has been observed in other Southeast Asian destinations, including Singapore, Thailand, Cambodia, and Vietnam. Despite the decline, South Korea remains the Philippines' top source market, with 1,574,152 arrivals and a contribution of USD2.3 billion to the national economy in 2024. As of September 1, the country has welcomed over 880,000 South Korean visitors.