Following a rebound in 2021 from the previous year, the travel and tourism industry is projected to contribute in excess of $155 billion to the economy in 2032, accounting for 21.4 percent of the Philippine GDP, according to the Economic Impact Report (EIR) of the World Travel & Tourism Council (WTTC).
The EIR, presented at a joint press conference of the WTTC and the Department of Tourism (DOT) yesterday on the sidelines of the 21st World Travel and Tourism Council Summit forecasts employment to grow annually by an average of 3 percent over the next 10 years, creating nearly three million new jobs and accounting for 21.5 percent of all jobs in the Philippines.
The EIR’s projections for 2032 nearly triples the contribution registered by travel and tourism in 2021 of $41 billion, which is just half of the $92 billion registered prior to the pandemic.
The report also said the travel and tourism sector is expected to grow its contribution to the economy by 6.7 percent over the next decade, exceeding the expected country’s overall economy ’s average growth rate of just 5.6 percent.
The report said travel and tourism’s contribution to the economy climbed 129.5. percent in 2021, year- on -year to $41 billion, reversing the 80.7 percent decline in 2020 and placing the Philippines as the world’s fourth fastest growing economy last year.
This represented a 10.4- percent share to the economy, which signals the recovery of the sector is well underway, EIR said.
This is but half of the 22.5 percent contribution of travel and tourism prior to the pandemic. Pre-COVID, the sector contributed $92.6 billion.
Tourism revenues plunged 80.7 percent in 2020 to $17.8 billion, with its contribution to GDP dropping to 4.8 percent.
The report added travel and tourism supported 7.8 million jobs last year, a 20.5 percent increase from 2020, compared with a global increase of 6.7 percent.
“Our latest EIR for the Philippines signals the astonishing recovery of the country’s travel and tourism sector.
“Resulting in a massive employment boost for the sector, leading to the recovery of 1.3 million more jobs compared to the previous year. Our expert analysis shows that the economy has turned a corner and is firmly on the road to recovery,” said
Julia Simpson, WTTC president and chief executive officer, in a statement.
DOT Secretary Bernadette Romulo Puyat said tourism is exhibiting signs of recovery, with more and more countries opening up for international travel.
“This three-day gathering is a momentous occasion for the global tourism industry, as we strive to revive and rediscover the vibrance of travel, as well as give impetus on new realizations, best practices, and deeper, more meaningful ways to shape tourism’s future,” Puyat said in her opening speech.
The Summit’s sessions will shed light on important topics such as the latest travel trends, sustainable investment prospects, meaningful human connections despite contactless interventions, environmental preservation, traveler confidence, seamless international mobility, and inequalities in the travel and tourism industry. Irma Isip
