Tourism continued to play a major role in the Philippine economy in 2025 even as overall sector output posted a slight decline, according to government data released on Thursday, May 28, 2026.
The Philippine Statistics Authority (PSA) reported that tourism direct gross value added (TDGVA) reached P2.27 trillion in 2025, accounting for 8.1 percent of the country’s gross domestic product.
However, this was 1.4 percent lower than the P2.30 trillion recorded in 2024.
TDGVA refers to the value generated by industries directly serving visitors, including hotels, restaurants, transport services, and entertainment establishments.
Despite the dip in total output, tourism remained a key driver of economic activity as spending patterns shifted across domestic and international markets.
Inbound tourism expenditure fell 6.4 percent to P698.46 billion in 2025 from P745.99 billion the previous year, reflecting slower recovery in international arrivals compared to pre-pandemic levels.
Outbound tourism spending, meanwhile, grew 3.5 percent to P357.93 billion, while domestic tourism continued to expand, rising three percent to P3.26 trillion from P3.16 trillion in 2024.
Overall internal tourism expenditure, which combines domestic and inbound spending, still posted growth of 1.2 percent to P3.96 trillion.
The PSA said tourism-related spending covered accommodation, food and beverage services, transportation, travel booking, recreation, entertainment, and retail purchases linked to travel activities.
Employment in the sector also improved, with an estimated 7.70 million people working in tourism-related industries in 2025, up 2.5 percent from 7.51 million in 2024.
The figure represented 15.7 percent of total employment nationwide.
The PSA noted that tourism employment has now exceeded pre-pandemic levels, reflecting continued recovery from the disruptions caused by Covid-19.
In 2019, tourism employment stood at 6.50 million before dropping sharply during the height of global travel restrictions.
Similarly, tourism direct output in 2019 reached P2.52 trillion, or 12.9 percent of GDP, before plunging in 2020.
Inbound tourism spending, which suffered the steepest decline during the pandemic, fell to P31.87 billion in 2021 before gradually recovering to P698.46 billion in 2025.
The PSA said the latest figures were generated under the Philippine Tourism Satellite Account framework and reflected revisions to historical data from 2000 to 2024 following updates in statistical classification systems approved in 2025.
Despite uneven recovery across spending categories, the PSA said tourism remains a significant pillar of the economy, supporting millions of jobs and contributing a substantial share to national output.
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