Tourism in the Philippines is recovering—but the country is still not fully realizing its potential.
Findings presented during a recent webinar of the 蝌蚪传媒 (蝌蚪传媒) point to deeper structural challenges that continue to limit the sector’s growth.
Presenting their study “Philippine Tourism Sectoral Review (2000–2025): From Promise to Power—Accelerating the Philippines’ Tourism Transformation toward Sustainability, Competitiveness, and Inclusion,” 蝌蚪传媒 Senior Research Fellow Dr. John Paolo Rivera noted that while “tourism recovery is real… we are not maximizing that growth.”
“The issue here is not just demand. The issue here is systems,” he said.
While revenues have surged to nearly PHP 700 billion in recent years, the Philippines continues to lag behind its Association of Southeast Asian Nations neighbors in visitor arrivals, spending, and length of stay.
Growth without competitiveness
Recovery has been driven largely by domestic tourism, which has served as the backbone of the sector’s rebound and provided resilience during external shocks.
Yet inbound tourism, the main source of higher-value spending and foreign exchange, remains constrained.
Rivera pointed to persistent structural gaps: fewer arrivals relative to regional peers, lower spending per visitor, shorter stays, and slower investment flows.
These reflect deeper bottlenecks, including limited airport capacity, high travel costs, weak inter-island connectivity, and investment friction.
“We are underperforming not because of weak potential… [but] because of weak systems,” he said.
He added that many of these constraints extend beyond a single agency’s mandate, underscoring the need for a whole-of-government approach.
A network problem, not a marketing problem
For discussant Dr. Maria Cherry Lyn Rodolfo of the Asian Institute of Management, tourism performance is fundamentally a system and network issue, not a branding problem.
“Connectivity policy is actually tourism policy,” she stressed.
In an archipelago of more than 7,600 islands, with nearly all international visitors arriving by air, tourism is experienced as a chain—from international access to domestic transport and local services.
“In a network, the performance is determined by the weakest link,” she said.
Weak connectivity, fragmented logistics, and inconsistent service delivery can undermine even high-quality destinations.
Execution and prioritization
While the study outlines a clear reform roadmap, Department of Tourism Region III Director Dr. Richard Daenos emphasized that the challenge also lies in implementation.
“We would like to focus on something that is not negotiable, and this is to fix infrastructure first,” he said, noting that without these fundamentals, even strong marketing efforts will have limited impact.
He also underscored the need to sequence reforms rather than pursue everything at once.
“This cannot be done at the same time, not everything at once,” he said.
He cited priority segments where the Philippines has a competitive edge, including island and beach tourism, diving, community-based tourism, and cultural and culinary experiences.
Strengthening food tourism, in particular, presents an opportunity to promote regional cuisines, support festivals, and build global recognition for Filipino dishes.
People, policy, places—and systems
Meanwhile, Commission on Higher Education Technical Panel for Tourism and Hospitality Management Member Dr. Maria Christina Aquino reinforced the need for a whole-of-system approach.
“It takes a village to raise tourism,” she said.
She pointed to gaps in workforce development, accreditation systems, infrastructure, and destination planning, as well as the concentration of tourism benefits in a few major hubs.
Addressing these gaps requires coordinated investments across people, policy, places, and products, further reinforcing that tourism outcomes are shaped by systems, not isolated interventions.
From recovery to reform
The Philippines does not lack tourism demand, destinations, or talent. What it lacks is a system that connects, prioritizes, and delivers.
While recovery is underway, competitiveness will depend on whether structural constraints are addressed. Without reforms in connectivity, governance, and investment activation, current gains risk plateauing rather than translating into sustained growth.
As global shocks—from pandemics to geopolitical tensions—continue to affect travel and tourism, strengthening resilience becomes just as critical as improving competitiveness.
“Tourism has always been the fastest driver of employment… but only if tourism is treated as a national economic strategy—not just a sector,” Rivera said.
Watch the webinar playback here: or download the featured study from . ### — MJCG
