Gross value added of the tourism industry Philippines 2019-2021, by type

The southeast Asian nation of the Philippines is a popular travel destination due to the several islands that form its topography. Tourism is a thriving source of revenue for the country, with the transportation sector contributing the largest share of income of the industry over the past three years. In 2021, the gross value added from this sector amounted to 393.25 billion Philippine pesos.

COVID-19's impact on tourism

The tourism industry across the globe experienced the harshest impacts of the coronavirus (COVID-19) pandemic. Countries were forced to shut down borders and impose nationwide lockdown to limit movement, leading to massive declines in tourist arrivals and expenditures. Overall, the tourism industry’s share of direct gross value added to the country’s GDP also drastically declined during this period.

Travel behavior

According to a May 2020 survey among Filipino travelers and foreign residents in the Philippines, only a small proportion of respondents expressed intent to travel in the next two years. Despite the government’s vaccination efforts, the renewed fear of the new virus variants discourages travelers to take risks.