Domestic tourism expenditure as a share of HFCE Philippines 2012-2021

In 2021, the share of domestic tourism expenditure accounted for approximately 5.4 percent of the household final consumption expenditure in the Philippines. Household spending on domestic tourism significantly declined during this year as a result of the travel restrictions imposed due the coronavirus (COVID-19) pandemic.

 Outlook of the Philippines’ domestic tourism sector

According to a survey conducted in the Philippines, approximately 23 percent of the respondents stated that their expected timeline of domestic travel after the COVID-19 travel restrictions would be as soon as a vaccine is available, while almost 20 percent said they would travel within six months. Notably, almost nine percent replied that they would travel within the same month of the travel restrictions. Despite the current situation, Filipinos were willing to travel in the absence of a vaccine. Leisure travel has been opened for domestic tourists in early 2021 signaling a positive outlook for the sector.

Impact of COVID-19 on tourism in the Philippines

The COVD-19 pandemic has affected the tourism sector in the Philippines. Travel restrictions have been imposed to stop international travelers from entering the country to mitigate the spread of the virus. Between 2019 and 2020, the number of international tourist arrivals in the Philippines has significantly dropped by fourfold. It was estimated that the impact of the COVID-19 pandemic on tourism’s revenue share in the Philippines’ GDP would contract by 68 percent in the worst-case scenario and 24 percent in the best-case scenario.