Published on : Sunday, June 9, 2019
Preliminary data assembled by the PSA showed direct gross value of tourism added (TDGVA) accounting for 12.7% of gross domestic product (GDP) in 2018, bigger than the sector’s 12.2% share in 2017.
TDGVA measures the tourism-related value developed by different industries.
In 2018, the combined financial contribution of tourism related activities were P2.2 trillion at current prices, a rise of 14.3% from 2017.
The TDGVA indicator is on the basis of results of the Philippine Tourism Satellite Accounts report, in which the PSA gathers from the Department of Tourism.
The contribution of the sector to the GDP last year was the highest since 2012 as soon as the government started using the 2012 input-output ratios in estimating the TDGVA.
Transportation had a 21.9% share of gross value added, followed by food and beverage services and entertainment and recreation services with 21.3% and 19.9% shares, respectively.
In 2018, domestic tourism expenditures hit P3.2 trillion, a rise of 21%. Domestic tourism expenditures were equivalent to 24.9% of household spending in last year, according to the PSA.
In the meantime, in 2018, tourism expenditure by non-residents amounted to P441.4 billion, down 1.6% from P448.6 billion in 2017.
In comparison to the total exports of the country, the share of inbound tourism expenditure was 8%. As per PSA, inbound tourism ranked third among the biggest export items in 2018, after “miscellaneous services” at 31.5% and semiconductors at 22.8%.
“The contribution of tourism to the Philippine economy in 2018 stood at 12.7%, 0.5 percentage point higher from 12.2% in 2017, [but] slower than the 1.5 percentage points growth in 2017. This is still considered decent despite the six-month closure of Boracay Island from April 26-October 26, 2018 and the slower global economic growth in 2018 due to the lingering US-China trade war since July 2018,” Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said in an e-mail.
“These reflect the consistent faster growth in tourism compared to GDP growth, even with Boracay’s closure in 2018,” Mr. Ricafort said, adding that growth in tourism likewise stimulated growth on “other allied/related industries” such as real estate, retail trade, and various service industries.
Tags: Tourism