Tourism’s contribution to the Philippine economy slipped in 2025 as weaker foreign visitor spending weighed on the sector despite stronger domestic travel and rising tourism-related employment.

Data from the Philippine Statistics Authority (PSA) showed Tourism Direct Gross Value Added (TDGVA) accounted for 8.1 percent of the country’s gross domestic product last year, with the sector generating PhP 2.27 trillion in economic output.

The figure was 1.4 percent lower than the PhP 2.30 trillion recorded in 2024, reflecting softer tourism activity from overseas travelers.

Inbound tourism expenditure declined 6.4 percent to PhP 698.46 billion in 2025 from PhP 745.99 billion a year earlier, tempering gains from local and outbound travel spending.

Domestic tourism expenditure, however, rose 3 percent to PhP 3.26 trillion from PhP 3.16 trillion, while outbound tourism expenditure grew 3.5 percent to PhP 357.93 billion.

Internal tourism expenditure, which combines domestic and inbound tourism spending, increased 1.2 percent to PhP 3.96 trillion.

The Tourism Satellite Account, compiled annually by the PSA, tracks tourism-related spending across industries directly serving visitors, including accommodation, food and beverage, transport, travel agencies, entertainment, shopping and other tourism services.

Despite the decline in tourism’s economic share, employment in tourism industries continued to expand.

The PSA estimated tourism-related employment reached 7.70 million workers in 2025, up 2.5 percent from 7.51 million in the previous year.

Tourism industries accounted for 15.7 percent of total employment in the country during the period.

The PSA said historical data covering 2000 to 2024 for TDGVA, tourism industry gross value added and tourism employment were revised following updates to the Philippine Tourism Statistical Classification System approved by the PSA Board in 2025.