PH Ranks 4th Fastest Travel & Tourism GDP Growth Rate in 2021

The latest Economic Impact Report by World Travel & Tourism Council (WTTC) revealed that the Philippines’ Travel & Tourism contribution to the nation’s economy climbed 129.5% year on year.

This impressive rise ranked the Philippines as the world’s fourth fastest-growing economy in 2021.

WTTC’s Economic Impact Report (EIR) for the Philippines shows that in 2021, the sector supported 7.8 million jobs, representing a substantial 20.5% rise in 2020, compared with a global increase of 6.7%.

Before the pandemic, the Philippines Travel & Tourism sector’s contribution to GDP was ​​22.5% of the total economy (US$92.6 billion). However, due to damaging travel restrictions, it then plunged by 80.7% to a mere US$ 17.8 billion, dropping to just a 4.8% share towards the country’s GDP.

But in 2021 this rose to US$ 41 billion, representing a 10.4% share of the Philippines’ total economy, which signals the recovery of the sector is well underway.

The latest report also takes a forward look at the sector with the global tourism body forecasting that the Philippines Travel & Tourism contribution to GDP will grow by 6.7% over the next decade, exceeding the expected country’s overall economy average growth rate of just 5.6%.

“Our latest EIR for the Philippines signals the astonishing recovery of the country’s Travel & Tourism sector”, said Julia Simpson, WTTC President & CEO. “Resulting in a massive employment boost for the sector, leading to the recovery of 1.3 million more jobs compared to the previous year. Our expert analysis shows that the economy has turned a corner and is firmly on the road to recovery.”

With Travel & Tourism employment forecast to grow annually by an average of 3% over the next 10 years, nearly three million new jobs could be created, accounting for 21.5% of all jobs in the Philippines.

WTTC’s 2022 EIR marks a vast change in fortunes for the embattled Travel & Tourism sector in the country, which was left reeling by the impact of the pandemic but is now firmly on the road to recovery.