Philippine Tourism GDP Contribution Declines to 8.1% in 2025
Tourism share in PH GDP shrank to 8.1% in 2025
Image: Inquirer
In 2025, the tourism sector's contribution to the Philippine GDP decreased to 8.1%, down from 8.7% in 2024, reflecting a decline in foreign visitor spending. Domestic tourism spending rose, but the overall recovery remains fragile amid external economic pressures.
- 01Tourism direct gross value added fell to ₱2.27 trillion in 2025, a 1.4% decrease from ₱2.30 trillion in 2024.
- 02Inbound tourism expenditure dropped 6.4% to ₱698.46 billion, while domestic tourism spending increased by 3% to ₱3.26 trillion.
- 03Total foreign visitor arrivals reached 6.48 million in 2025, indicating a gradual recovery.
- 04Employment in tourism industries rose by 2.5% to 7.7 million, accounting for 15.7% of total employment in the country.
- 05Experts highlight the need for improved connectivity and diversified tourism strategies to enhance resilience against external shocks.
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The Philippine tourism industry faced a setback in 2025, with its contribution to the economy shrinking to 8.1% of GDP, down from 8.7% the previous year, according to the Philippine Statistics Authority. This decline, attributed to a 6.4% drop in foreign visitor spending to ₱698.46 billion, reflects ongoing challenges in the post-pandemic recovery. In contrast, domestic tourism expenditure grew by 3% to ₱3.26 trillion, providing some cushion against the decline in foreign spending. Overall, the tourism sector generated ₱2.27 trillion in value, marking the lowest GDP share since 2022. Employment in tourism-related sectors rose to 7.7 million, contributing to 15.7% of total employment. Experts, including John Paolo Rivera from the Philippine Institute for Development Studies (PIDS), emphasize the need for enhanced tourism resilience through better infrastructure and diversified offerings to compete with regional tourism leaders.
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The decline in tourism's GDP contribution indicates challenges for local economies reliant on tourism revenue.
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