Alfredo Tolentino

The Philippines reached a new milestone in the tourism sector by generating an all-time high of P760 million in profits from over 5.4 million foreign travelers in 2024, marking a 9.04 percent increase from 2023 and 126.75 percent growth from pre-pandemic levels.

Photo Courtesy of DOT.

Department of Tourism (DOT) Secretary Christina Garcia Frasco considered this record
milestone commendable, as the sector continues to grow despite falling short of its original 7.7 million target foreign arrivals for 2024.

“With these figures, it is clear that the Philippine tourism industry is not only bouncing back but also evolving and expanding…In the past year, we have witnessed remarkable growth in tourism revenue, which has surpassed previous records,” she said.

Frasco also highlighted the significant contribution of this milestone towards the country’s economic stability and growth as it opens avenues for thousands of job opportunities for countrymen which supports thriving families.

She credited the national government's tourism-centered policies for this growth, as the newer policies prioritized the sustainability of the country’s natural and human resources.

“These policies focus on enhancing infrastructure, promoting heritage conservation, and investing in skills development programs for our workforce, among others. We believe that the growth of tourism should be inclusive and equitable, empowering local entrepreneurs
and communities,” Frasco added.

According to the DOT’s data, tourists from South Korea are the top source market for Filipino tourism, increasing to 1,574,152 from 1,455,977 in 2023, representing at least 26.46 percent of the overall market share.

Frasco said the DOT expects to intensify its efforts to attract more South Korean tourists,

including Americans, who also placed as the second-leading source market of tourism by contributing 1,076,663 visitors in 2024.

In hopes of attracting more foreigners to visit the country and positioning the country as a
premier global shopping destination, President Ferdinand Marcos Jr. signed Republic Act

(RA) 12079, also known as the Act Creating a Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists that offers a VAT refund incentive to tourists on locally purchased goods in December 2024.

Like Frasco, Sen. Sherwin Gatchalian, the author and sponsor of the bill in the Senate, firmly believes that tourism created jobs for Filipinos in related industries such as hospitality, transportation, travel, and entertainment.

However, with the release of the 2025 national budget, DOT experienced a massive blow to its branding and promotions budget from P500 million to P100 million which for Frasco will greatly affect the country’s visitor arrivals for 2025.