Tourists who are big spenders will help the Philippine economy grow faster in the near- and medium-term, according to the National Economic and Development Authority (Neda).
Socioeconomic Planning Secretary Ernesto M. Pernia said the current crop of tourists being attracted by the Philippines, including those from China, are “miniscule spenders.”
Pernia said many of the tourists that visit the Philippines, especially those from China, tend to stay longer but spend less while they are in the country.
“We need tourists from other countries as well, especially tourists that spend big here. Not those who are miniscule spenders. We need other tourists. If you look at the data on tourist receipts from various types of tourists, they seem to be rather on the low side. They stay longer but tend to spend less,” he said.
Pernia added that the Philippines is focusing on attracting more European tourists, as well as those from Japan and South Korea.
To entice more tourists to visit the country, Neda Undersecretary Rosemarie G. Edillon said the Philippines will have to develop more historical-cultural destinations, golf courses, diving sites and wellness facilities.
Based on the Philippine Tourism Satellite Accounts (PTSA), inbound tourism expenditure reached P441.4 billion in 2018, lower by 1 percent from the P448.6 billion posted in 2017.
Nonetheless, total internal tourism expenditure grew 17.7 percent to P3.6 trillion in 2018 from P3.1 trillion in 2017. This was largely due to the double-digit growth of domestic tourist expenditures.
Based on the PTSA, domestic tourism expenditure reached P3.2 trillion, 21 percent higher than the 2017 record of P2.6 trillion.
“We do get them [big spenders] but we want more. The recent cleanup at Boracay is a good selling point because it means that we care about cleanliness and the environment. We will need to expand tourism service options, more toward rest, relaxation, and cultural tourism,” Edillon told the BusinessMirror over the weekend.
Earlier, Pernia said tourism and agriculture have the most potential to boost the country’s GDP. This is needed as economic growth in the second quarter slowed to 5.5 percent.
Under “Other Services,” recreational, cultural and sporting activities expanded by 6.8 percent in the second quarter, faster than last year’s 4.2 percent.
Hotels and restaurants expanded faster at 5.4 percent in the second quarter compared to the 4.2 percent recorded last year. However, the average growth of the industry in the first semester this year slowed to 5.1 percent in 2019, from last year’s 5.9 percent.