II.

PARTNER COUNTRY PROFILES PHILIPPINES

Philippines

Tourism in the economy

In 2014 tourism directly contributed PHP 982.3 billion (approximately USD 22.1 billion)
to the economy of the Philippines, or 7.8% of GDP. The average growth rate in tourisms
contribution to GDP during the period 2011 to 2014 was 13.1%. It directly supported
4.8 million jobs, accounting for 12.5% of total employment.
The Philippines welcomed 4.8 million international tourists in 2014, a rise of 3.2%
compared with 2013. Korea, with 1.18 million visitors (24%), is the main source market for
the Philippines, followed by the United States (15%), Japan (9.6%) and China (8.2%), which
has grown by 241.3% since 2008.

Tourism governance and funding

The Department of Tourism is the primary planning, programming, co-ordinating,
implementing and regulatory government agency for tourism in Philippines. It is responsible
for the development and promotion of the tourism industry, domestically and
internationally, in co-ordination with attached agencies and other government institutions.
Dedicated units within the Department are charged with the following responsibilities:
Tourism Development includes offices for product development, tourism development
planning, research and information management, and industry and manpower
development,
Tourism Regulation, Co-ordination and Resource Generation includes offices for
tourism standards and regulations, tourism co-ordination, tourism resource generation,
and all the regional and international offices,
Special Concerns and Administration includes the office for special concerns, the
legislative liaison unit, and services for financial management, administrative affairs,
legal affairs and internal audit.
A number of agencies and corporations are under the supervision of the Department for
programme and policy co-ordination, while continuing to operate under their respective
charters. These include the Philippine Tourism Promotions Board (PTPB), Tourism
Infrastructure and Enterprise Zone Authority (TIEZA), Duty Free Philippines Corporation
(DFPC), Intramuros Administration (IA), National Parks Development Committee (NPDC),
Nayong Pilipino Foundation (NPF), Philippine Retirement Authority (PRA) and Philippine
Commission on Sports Scuba Diving (PCSSD).
The Department of Tourism operates a network of regional offices around the country,
which implement rules and regulations on the accreditation of tourism enterprises,
co-ordinate with local government on tourism development and promotion and marketing,
collect data, provide training and information, and assist tourists and tourism enterprises.

OECD TOURISM TRENDS AND POLICIES 2016 OECD 2016 365

II. PARTNER COUNTRY PROFILES PHILIPPINES

The Department also operates offices in foreign countries to promote Philippines as a

tourism destination and network with travel agents to sell Philippine destinations and
products.
The Department of Tourism sources its fund for the development of tourism from the
Annual General Appropriations Act, which is approved by the Legislative body. Funding for
tourism promotion is sourced from the corporate funds of the Tourism Promotions Board,
while infrastructure development is sourced from the corporate funds of the Tourism
Infrastructure and Enterprise Zone Authority.

Philippines: Organisational chart of tourism bodies

Department of Tourism

Philippine Tourism
Promotion Board

Tourism Infrastructure and

Enterprise Zone Authority

Duty Free Philippines

Corporation

Intramuros Administration
Tourism Services and Tourism planning
Regional Operations and Promotions
National Parks Development
Committee

Nayong Pilipino Foundation

Tourism
International
Tourism Regional Planning and Marketing Overseas
Philippine Retirement Tourism
Standards Offices (16) Information Communications Offices (17)
Authority Promotions
Management

Philippine Commission on
Sports Scuba Diving

Source: OECD, adapted from the Department of Tourism, 2016.

Tourism policies and programmes

The Philippines has a number of tourism strengths and advantages, including
incredible natural and cultural resources, proximity to the worlds fastest growing markets,
and a warm, friendly and hospitable people with proficiency in English. There are also a
number of challenges, including limited international and domestic market access and
connectivity, uncompetitive tourist destinations and products, and weak public sector
tourism governance and human resource development policies.
The National Tourism Development Plan 2011-16 provides a framework for the
development of tourism in the Philippines as a major contributor to socio-economic
development. The Plan aims to make the Philippines the must-experience destination in
Asia. The long term goal is to develop environmentally and socially responsible tourism
that delivers more widely distributed income and employment opportunities.

366 OECD TOURISM TRENDS AND POLICIES 2016 OECD 2016

 II. PARTNER COUNTRY PROFILES PHILIPPINES

The Plans strategic directions and related objectives are as follows:

Develop and market competitive tourist product and destinations,
Develop a diversified product portfolio in priority destinations and strengthened road/
sea tourism circuit framework,
Raise facility and service standards, facilitate tourism investment (especially in
accommodation) and lower business costs,
Safeguard natural and cultural heritage and vulnerable groups,
Implement public-private partnership-based marketing strategy and action plan.
Improve market access, connectivity and destination infrastructure:
Rapidly expand capacity of secondary international airports to priority destinations,
Expand international air connectivity between priority gateway destinations and key
growth markets,
Implement a strategic access infrastructure programme between international airports
and the cluster destinations,
Implement a tourism destination infrastructure programme.
Improve tourism institutions, governance and human resource capacities:
Institutionalise roles and responsibilities of the Department of Tourism and Local
Government Units,
Develop a competent, motivated and productive tourism workforce,
Improve governance in the area of safety, security and tourist assistance.
A number of priority areas for action have been identified. These include:
Investment Barriers the Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
is identifying priority Tourism Enterprise Zones (TEZs) where investors would receive tax
and other incentives. However, in 2015 the TEZ has not yet been implemented because
the Bureau of Internal Revenues (BIR) inability to issue the revenue regulations
pertaining to the operations of the TEZs.
Infrastructure infrastructure projects include roads leading to tourist destinations and
on-site facilities. Tourism roads are being constructed and developed by the Department
of Public Works and Highways in tourism destination areas.
Connectivity there is limited airport capacity for international airports in the
Philippines. As of 2015, the Government is expanding the international airports to attract
more routes and traffic in and out of the Philippines.

OECD TOURISM TRENDS AND POLICIES 2016 OECD 2016 367

II. PARTNER COUNTRY PROFILES PHILIPPINES

Statistical profile

Table 1. Philippines: Domestic, inbound and outbound tourism

2010 2011 2012 2013 2014
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips .. .. .. .. ..
Overnight visitors (tourists) .. .. .. .. ..
Same-day visitors (excursionists) .. .. .. .. ..
Nights in all types of accommodation .. .. .. .. ..
Hotels and similar establishments .. .. .. .. ..
Specialised establishments .. .. .. .. ..
Other collective establishments .. .. .. .. ..
Private accommodation .. .. .. .. ..
Inbound tourism
Total international arrivals .. .. .. .. ..
Overnight visitors (tourists) 3 520 3 917 4 273 4 681 4 833
Same-day visitors (excursionists) .. .. .. .. ..
Top markets
Korea 741 925 1 031 1 170 1 175
United States 600 625 653 675 723
Japan 359 375 412 434 464
China 187 243 251 426 395
Australia 147 .. .. .. 225
Nights in all types of accommodation .. .. .. .. ..
Hotels and similar establishments .. .. .. .. ..
Specialised establishments .. .. .. .. ..
Other collective establishments .. .. .. .. ..
Private accommodation .. .. .. .. ..
Outbound tourism
Total international departures .. .. .. .. ..
Overnight visitors (tourists) .. .. .. .. ..
Same-day visitors (excursionists) .. .. .. .. ..
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION USD
Inbound tourism
Total international receipts 3 442 4 053 4 963 5 598 5 701
International travel receipts 2 645 3 198 4 061 4 690 4 767
International passenger transport receipts 796 855 902 909 934
Outbound tourism
Total international expenditure 5 964 6 055 7 140 8 399 10 437
International travel expenditure 5 487 5 616 6 548 7 833 9 920
International passenger transport expenditure 477 439 592 567 517
.. Not available
Disclaimer: http://oe.cd/disclaimer

Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933321060

368 OECD TOURISM TRENDS AND POLICIES 2016 OECD 2016

 II. PARTNER COUNTRY PROFILES PHILIPPINES

Table 2. Philippines: Enterprises and employment in tourism

Number of
Number of persons employed
establishments
2014 2010 2011 2012 2013 2014
Total .. .. .. .. .. ..
Tourism industries .. 4 126 000 4 266 000 4 561 000 4 709 000 4 758 000
Accommodation services for visitors .. .. .. .. .. ..
Hotels and similar establishments 8 841 1 045 000 1 116 000 1 579 000 1 601 000 1 656 000
Food and beverage serving industry .. .. .. .. .. ..
Passenger transport .. 1 902 000 1 870 000 1 675 000 1 746 000 1 693 000
Air passenger transport .. .. .. .. .. ..
Railways passenger transport .. .. .. .. .. ..
Road passenger transport .. .. .. .. .. ..
Water passenger transport .. .. .. .. .. ..
Passenger transport supporting services .. .. .. .. .. ..
Transport equipment rental .. .. .. .. .. ..
Travel agencies and other reservation services
.. 26 000 30 000 26 000 29 000 30 000
industry
Cultural industry .. .. .. .. .. ..
Sports and recreation industry .. 279 000 328 000 338 000 343 000 350 000
Retail trade of country-specific tourism
.. 276 000 307 000 300 000 312 000 314 000
characteristic goods
Other country-specific tourism industries .. 598 000 615 000 643 000 678 000 714 000
Other industries .. .. .. .. .. ..
.. Not available
Disclaimer: http://oe.cd/disclaimer

Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933321070

Table 3. Philippines: Internal tourism consumption

Million PHP

2014
Domestic tourism consumption Inbound tourism consumption Internal tourism consumption
Total .. .. ..
Consumption products 1 468 975 274 566 1 743 541
Tourism characteristic products 962 378 269 633 1 232 011
Accommodation services for visitors 354 767 80 832 435 599
Food and beverage serving services 80 365 60 539 140 904
Passenger transport services 145 082 49 034 194 116
Air passenger transport services .. .. ..
Railways passenger transport services .. .. ..
Road passenger transport services .. .. ..
Water passenger transport services .. .. ..
Passenger transport supporting services .. .. ..
Transport equipment rental services .. .. ..
Travel agencies and other reservation services
95 278 1 991 97 269
industry
Cultural services .. .. ..
Sports and recreation services 80 674 30 818 111 492
Country-specific tourism characteristic goods .. .. ..
Country-specific tourism characteristic services 206 212 46 419 252 631
Other consumption products 506 597 4 933 511 530
Tourism connected products .. .. ..
Non-tourism related consumption products .. .. ..
Non-consumption products .. .. ..
.. Not available
Disclaimer: http://oe.cd/disclaimer

Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933321081

OECD TOURISM TRENDS AND POLICIES 2016 OECD 2016 369

 From:
OECD Tourism Trends and Policies 2016

Access the complete publication at:

http://dx.doi.org/10.1787/tour-2016-en

Please cite this chapter as:

OECD (2016), Philippines, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris.

DOI: http://dx.doi.org/10.1787/tour-2016-54-en

This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments
employed herein do not necessarily reflect the official views of OECD member countries.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the
delimitation of international frontiers and boundaries and to the name of any territory, city or area.

You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications,
databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided
that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and
translation rights should be submitted to rights@oecd.org. Requests for permission to photocopy portions of this material for
public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at info@copyright.com or the
Centre franais dexploitation du droit de copie (CFC) at contact@cfcopies.com.