Friday, April 11, 2025

Analysis: The Lethargic Tourism Industry of the Philippines

 

AS THAILAND, MALAYSIA, VIETNAM LEFT PHIL BEHIND

By Mortz C. Ortigoza, MPA

LINGAYEN, Pangasinan – Despite the budgetary handicap of the Department of Tourism (DOT), a solon lauded the performances of its Secretary how she positioned the Philippines to lure foreign tourists to patronize the country.

STAKEHOLDERS of the tourism industry in Southeast Asia. Top photo and clockwise: The ten members of the Association of Southeast Asian Nations (ASEAN), poster of tourism comeons of the ASEAN members. Pangasinan 4th District Cong. Christopher de Venecia, and Philippines Tourism Secretary and Lawyer Christina Garcia-Frasco. 

Actually maganda ang plano ni (Department of Tourism) Secretary Christina Garcia Frasco. I always asked for a sum that will complement iyong ideal program sa DOT kaso ang Department of Tourism -- just like DTI (Department of Trade and Industry) ang pinakamamahal kong agency – hindi napaprioritize pagdating sa budget pero even then Sec. Christina makes the most of what she’s given. So tuloy tuloy iyong kanyang development ng mga experiences driven, mga tourism products,” Pangasinan 4th District Cong. Christopher “Toff” de Venecia told this writer at the sidelines of the State of the Province Address (SOPA) of Pangasinan Gov. Ramon V. Guico III held at the ritzy Sison Auditorium here.

Despite the financial limitations to reinvigorate the Philippines' competitiveness against the members of the Association of Southeast Asian Nations (ASEAN) in the hospitality industry, Secretary Frasco exhausted the best of what she could bring on the table. One of her strategies was to tap the influence of content creators by bringing them to Batanes Island so that place could have media mileage to get the attention of would be tourists.

“Kasi ang ganda ganda sa Batanes and hindi masyadong nabivisit or kahit ako nga di nakapunta sa Batanes sa totooo lang,” he said.

Blame Budgetary Cuts on the DOT’s Competitiveness Strain

DOT missed its 7.7 million tourist arrival target in 2024 (reaching 5.94 million only, 9.15% higher than the 5.45 million foreign visitors recorded in 2023) because of the severe budgetary cuts by Congress of its branding campaign from its PhP1.27 billion budget in 2023 to a measly PhP200 million.

The same fate happened this year after Congress slashed the department’s proposed branding and promotions budget of PhP500 million to a sorry PhP100 million.

So if we are looking who’s to blame for our lethargic performances against the six ASEAN members in snaring foreign guests, it is not Secretary Frasco but those members of Congress who did not appreciate the worth of tourism in generating employment to the Filipinos.

President Ferdinand R. Marcos, Jr., in a statement early this year, directed the Department of Budget and Management (DBM) to reinstate the PhP400-million branding budget for the DOT to sustain the momentum. Funding will then be sourced from the President’s contingency fund.

DOT’s national budgets in years 2023, 2024, and 2025 were PhP3.7 billion, PhP2.84, and P3.394 billion, respectively.

Secretary Frasco cited that as of April 2024, approximately 16.4 million Filipinos are employed in the tourism sector, accounting for 34% of total employment of the country in the first quarter.


Among the nine members of ASEAN, the Philippines was No.7 -- sandwitched by backwaters Laos and Cambodia -  in snaring foreign tourists with 5.4 million visitors in 2024. Those that occupy the ranking from highest to lowest were 1) Thailand (35. 5 million); 2) Malaysia (25 million); 3) Vietnam (17.6 million); 4) Singapore (16.5 million); 5) Indonesia (13.9 million); 6) Cambodia (6.7 million); 7) Philippines (5.4 million); 8) Laos (4.1 million), and; 9) Myanmar (former Burma) (1.06 million), according to ASEAN Skyline.

 

Comparative Advantages of Thailand, Malaysia, and Vietnam

What makes Thailand, Malaysia, Vietnam a cut from the Philippines in hailing visitors to their shores? Thailand introduced a permanent visa-free programs for Chinese and Indian tourists – a reason for her rebound to the top rank. Malaysia recently extended free visas for Chinese and Indian travelers until 2026, while Vietnam offered 45-day visa-free travel for citizens of Poland, Czechoslovakia, and Switzerland.

Cambodia – who just ecliplsed the Philippines last year -- has reduced e-visa fees for tourists since January this year.

  Thailand is also zeroing on attracting high-spending visitors who are looking for unique and enriching experiences as it works too to galvanize the transportation links with other countries, including Vietnam, to boost tourism cooperation. This strategy is the "Six Countries, One Destination" where simplified visa procedures are expected to play a pivotal role in attracting more global tourists. 

 On expenses, Thailand offers a more budget-friendly beach experience along with diverse activities and stunning scenery. Aside from cheap price foods, air fare this Southeast Asian country is much cheaper than flying from Manila to Davao City. Hotels, luxurious spas, and gourmet dining experiences can be surprisingly budget-friendly there compared to other tourist destinations. Those who joined a tour group, private tour, or otherwise than availaing those travel agencies could attest to these expenses bargain.

Vietnam has implemented new electronic visa policies, allowing a visitor to stay of up to 90 days and exploit his visa-free travel to many countries, making it easier to travel in that nation. She is improving her transport networks, both air and water, to make travel more convenient for both domestic and international visitors. 

Harnessed the Competitiveness of the Philippines

According to De Venecia – who is bowing out after he ended this coming June 30 his nine years mandated term as congressman --, the Philippines government should buttress the “experienced” tourism, infrastructure building related to it, promote town products, and improve the international gateways like airports and harbours.

Of course DOTr (Department of Transportation) ang nakatutok diyan. I’m so happy for my friend si Secretary Vince Dizon. Magaling si Vince. Recently he was in Siargao and then we decided na buwagin ang V.I.P lounge. So ngayon mas malaki na ang area sa mga regular tourists na sila naman iyong critical mass in bulk,” he explained.

He lauded Frasco in the construction of tourist rest area (TRA) -- just like in the other parts of the country –  near the beach of Lingayen. The congressman said he is interceding for the national government to build surf break at Barangay Binloc in Dagupan City to draw visitors, too.

An average foreign tourist spends U.S $2,073 (PhP118, 161) in the Philippines. Over 70% of them were repeat visitors, and the average stay per visitor was over 11 nights, according to the DOT.

International guests to Vietnam spend nowadays an average of $1,200 (PhP68, 400) per trip—far below the $2,000 (PhP 114, 000) spent in Thailand or $3,000 (PhP 171,000) in Singapore. 

Strategies to be Competitive

The Philippines should emulate Thailand and Vietnam by revoking if not limiting the numbers of days of the visas of the mammoth Chinese tourists to bolster its slow growing number of foreign visitors. If national security would not allow the country to have visa holiday or limit the stay, say at 45 days, of the Chinese because of our maritime spat with them --- then implement a visa free entry for the populous Indian nation.

Instead of relying solely on familiar markets like Japan, South Korea, and the US, the Philippines should also target regions like the Middle East, and countries and Special Administrative Region Hong Kong, Singapore, Vietnam, and Malaysia, which are geographically closer and have established air connectivity with them.

Hosting major events like the Southeast Asian Games, international games, or concerts graced by popular foreign singers can draw more international attention and boost tourism. 

Secretary Frasco expressed concern also over the reduction of budget allocations for the construction of more tourism roads for 2025.

“For 2024, P15 billion was devoted for construction and rehabilitation of tourism roads, but for 2025 it stands at only P6 billion,” she said.

Under the Marcos administration, an estimated 500 Kilometers of tourism roads connecting to tourist attractions like waterfalls, beaches and mountain resorts have been built.

One of the major clamours of foreign tourists in the Philippines is the easy accessibility through travel to those spots our country crows.

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MORTZ C. ORTIGOZA

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I am a twenty years seasoned Op-Ed Political Writer in various newspapers and Blogger exposing government corruptions, public officials idiocy and hypocrisies, and analyzing local and international issues. I have a master’s degree in Public Administration and professional government eligibility. I taught for a decade Political Science and Economics in universities in Metro Manila and cities of Urdaneta, Pangasinan and Dagupan. Follow me on Twitter @totoMortz or email me at totomortz@yahoo.com.

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