Philippine Tourism Industry Expected to Thrive this 2023

The Department of Tourism (DOT) has devised a strategy that includes the introduction of new rules and the upkeep of existing infrastructure in order to increase domestic tourism.

Tourism Secretary Christina Frasco reaffirmed the agency's dedication to playing an instrumental role in the implementation of the social and economic policies, strategies, and programs outlined in the Marcos administration's Philippine Development Plan 2023–2028.

At the World Travel and Tourism Council Global Summit in Riyad, Frasco touted the Philippines' competitive advantages in the tourism industry, including the country's more than 7,000 islands, which are home to a wide variety of lodging options, and the Philippines' well-deserved reputation for warm and welcoming hospitality.

Department of Tourism Plans 2023

The tourism chief announced its top priorities for this year, which include increasing the level of cooperation between federal and local governments in strengthening the country's tourism portfolio and promoting the Filipino Brand of Service Excellence (FBSE). The event will shine a spotlight on the training of a staggering one hundred thousand tourist sector personnel, a new benchmark in the field.

Apart from this, the Marcos administration also plans various improvements in the Philippine tourism industry that can boost the country's economy and business operations, as well as the investment of house and lot in the Philippines.

Improvements in PH Domestic Tourism

Outside of its "traditional responsibility" to promote tourist destinations, Secretary Christina Garcia Frasco praised the DOT's persistent efforts to improve enabling structures for tourism growth in the Philippines at the plenary session on economic transformation.

Digitalization in tourism

The DOT plans to create a Tourist Lifecycle App that will offer tourists communication links in each and every single facet of their trip, from booking airline, hotel accommodations, transport services, and all other related services through a partnership with the Department of Information and Communications Technology or DICT.

Tourism human capital and social development

The DOT has made educating one hundred thousand Filipinos in the art of service excellence a top priority, with the objective of capitalizing on the popularity of the Filipino brand of hospitality. The Philippines hopes to use this as a springboard to become a regional and international leader in the hospitality industry.

Whole-of-government and whole-of-nation approach

The regional tourism establishments and tourism operators around the country will work closely with LGUs to determine which areas of town need the greatest help in developing their tourism industry and promoting the Philippines traditional food. In addition, the DOT would want to implement a Tourist Assistance Call Center and a Tourist Concierge to better serve visitors.

Factors for Tourism Recovery in the Philippines

Considering these planned improvements, the tourist sector can only grow. It's about time, too, since morale has been poor throughout the pandemic. According to Colliers Research, some potential avenues for improving the Philippines' economy and tourism sector are as follows:

1. China's re-opening

In light of China's status as a leading travel market, the country's tourist sector would benefit greatly from a relaxation of border controls. Philippine tourism has a long way to go before it reaches its pre-pandemic levels, but the return of hundreds of thousands of Chinese tourists may help speed up the process.

The three-day state visit of President Ferdinand Marcos Jr. to China warmed DOT up to the Chinese market. An implementation program for Chinese-Philippine tourist collaboration was signed by the DOT and its Chinese counterpart, the Ministry of Culture and Tourism. As a means of reviving a sector hit hard by the pandemic, the agreement fosters "bilateral tourist collaboration" between the two nations.

2. Revenge travel from local and foreign tourists

As more and more people take vacations with the types of holidays in the Philippines, the country's tourism sector is facing the consequences of "revenge travel." The rise in visitors began around Christmas time last year, and it is anticipated that this trend will continue into the summer.

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3. Tourism agreements with other countries

In recent months, President Ferdinand 'Bongbong' Marcos Jr. has made a concerted effort, and created some headlines in the process, to show that the Philippines is welcoming foreign investment and tourism. Furthermore, this has placed the Philippines in an excellent position with regard to its recovery efforts.

The present administration has a number of initiatives and plans set to go out in the next year. They believe that with the help of the diplomatic community, the commercial sector, and particularly the local government units, they can give the Philippines a fighting chance to not only regain its pre-pandemic status but also to convert itself into a tourist powerhouse in Asia.

4. Lower airfares due to a decline in fuel surcharge

The Civil Aeronautics Board (CAB) reduced the permitted fuel fee to Level 7 in January 2023, resulting in cheaper airline tickets for passengers. In January, travelers paid between Php 219 and Php 708 for domestic flights and between Php 722.71 and Php 1,124.26 for foreign flights thanks to a Level 7 fuel fee.

5. Dropping of mask mandates

After years of resistance, President Ferdinand R. Marcos, Jr. relaxed the country's mask requirement and made it optional for citizens to wear face masks in public. Positive economic outcomes, more tourist visits, and a speedier recovery of tourism portfolios have been seen in several nations when severe health requirements were relaxed.

The lifting of the mask requirement will help the Philippines regain ground in the ASEAN region's tourist recovery race by boosting trust in travel, stimulating economic activity, and fostering more interconnections amongst its people.

6. New hotels in key tourist destinations

As tourism stakeholders and developers 'anticipate the predicted rebound in global tourism,' Colliers predicts that in 2023, accommodation establishments in the Philippines will finish over 3,900 rooms, setting a new record. The firm also expects a dramatic rise in room completions from 720 to 2,120 annually between 2023 and 2025.

More hotels under multinational chains are also anticipated to open over the next three to six months. They estimate that between 2023 and 2025, over 44% of the additional supply will enter the market in the Bay Area, Makati CBD, and Ortigas CBD.

7. Modernization of airports

The current head of Philippine tourism has said that easier access to airports is a top priority. Together, cohesive and comprehensive digitization and connectivity, equalization of tourism product development and marketing, maximization of domestic tourism, and improvement of the entire tourist experience would increase the airports' carrying capacity. In the event that these plans are implemented, and airports are upgraded, an influx of visitors may occur, including both foreign and domestic tourists.

8. Holiday economics and law amendments

A bill seeking to amend the holiday economy legislation to provide for longer weekends has been introduced in the Senate. Senator Raffy Tulfo introduced Senate Bill 1651 to alter Republic Act (RA) No. 9492 to encourage work-life balance and increase domestic tourism.

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