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Contribution of Tourism Industry to the Economy Averages 5.8 percent

Reference Number: 20111207-ES4-01
Release Date: 21 December 2011

  

For the years 2000-2010, the average share of tourism direct gross value added (TDGVA) to the country’s GDP is about 5.8 percent.  TDGVA’s share to total GDP provides measure of the economic contribution of tourism to the economy.  TDGVA in 2010 reached PhP 518.5 billion, 13.0 percent higher than previous year’s PhP 459.0 billion.

Among the tourism-characteristic industries, shopping had the biggest share to TDGVA at 20.3 percent, followed by accommodation with 14.8 percent, and entertainment and recreation with 6.8 percent.  Other industries and their corresponding shares include: travel agencies (5.6%), food and beverage (5.3%), transport (3.5%), and miscellaneous (0.9%).

Considered as employment generator than income generator, share of tourism employment to total employment has been on the rise, averaging 9.7% for the years 2000-2010.  Employment in tourism industries was estimated at 3.7 million in 2010, up by 4.1 percent from last year’s 3.5 million.   Employment in tourism industries has been growing at an annual average of 3.7 percent in 2000-2010.

Meanwhile, inbound tourism expenditures, which refer to the expenditures of non-resident visitors (foreign visitors and Philippine passport holders permanently residing abroad) within the Philippines, amounted to PhP 109.2 billion, 9.6 percent higher than the PhP 99.7 billion recorded in 2009.   Among the consumption products, shopping, food and beverage, and accommodation topped the list among inbound tourists with 28.3 percent, 28.0 percent and 21.8 percent shares to their total expenditures, respectively. 

On the other hand, domestic tourism expenditures, which refer to the expenditures of resident visitors within the country either as a domestic trip or part of an international trip, posted double-digit growth of 15.1 percent, compared to 2.7 percent in 2009.  With the competitive rates offered by various airlines and shipping lines as well as holiday economics, the economic importance of domestic tourism has grown substantially in recent years.  Its economic contribution is substantially more important than that of inbound tourism, as domestic tourism expenditures are about six times as much as inbound tourism expenditure.

The information cited above is based on the Philippine Tourism Satellite Accounts (PTSA) compiled by the National Statistical Coordination Board (NSCB) in coordination with the Department of Tourism, and the NSCB Inter Agency Committee on Tourism Statistics (IACTS).  

 

ROMULO A. VIROLA
Secretary General

 

 

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Given the importance of tourism in the overall economic growth in the country, one would wonder how much income does tourism bring into the country. In response to this, the Philippine Statistics Authority (PSA)  and the Department of Tourism (DOT) are closely working together to measure the contribution of tourism in the economy through the institutionalization of the PTSA.