Tourism revenues to hit P1.15 T by 2016

MANILA, Philippines - Gross value added (GVA) in tourism is expected to steadily increase in the next three years to reach P1.15 trillion in 2016, data from the Department of Tourism (DOT) showed.

Tourism Secretary Ramon Jimenez Jr. said they are keeping track of the total annual tourism GVA as this reflects the actual revenues generated by the tourism industry for the country’s overall economy.

GVA is defined as the grand total of all revenues, from final sales and (net) subsidies, which are incomes of businesses. Those incomes are then used to cover expenses (wages and salaries, dividends), savings (profits, depreciation) and (indirect) taxes.

For 2013, tourism GVA is seen to reach P748.3 billion, 15 percent higher than the P650.8 billion registered in 2012.

Data from DOT further showed that tourism GVA is seen to further increase to P835.4 billion in 2014, P974 billion in 2015 and P1.15 trillion in 2016.

The projected tourism GVA represents 6.7 percent of the country’s gross domestic product (GDP) in 2013; seven percent of GDP in 2014; 7.8 percent of GDP in 2015 and 8.7 percent of GDP in 2016.

In 2012, the share of tourism GVA in GDP was 6.2 percent.

The DOT is also optimistic that the total visitor receipts would help boost the government’s coffer in the near term.

For 2013, total visitor receipts — money spent by foreign visitors traveling to the country – is expected to hit P1.5 trillion from P1.1 trillion in 2012. This level is seen to further increase to P1.67 trillion in 2014; P1.95 trillion in 2015 and P2.3 trillion in 2016.

It would be noted that tourism is also a labor-intensive industry, providing direct and indirect employment to the Philippine workforce.

Based on DOT data, tourism’s employment for this year is projected to increase to 4.9 million  from 4.2 million in 2012. This level is seen to steadily rise to 5.4 million in 2014, 6.3 million in 2015 and 7.4 million in 2016.