Growing domestic tourism needs more support

The Philippine tourism industry, which has long relied on international arrivals, is undergoing a transformative shift. Domestic travel has emerged as the primary driver of the sector’s recovery, proving its resilience and capacity to sustain economic activity even during global uncertainties. As domestic tourism continues to outpace international arrivals, it is time for the Philippine government to reorient its tourism strategy, placing local travelers at the center of its development agenda. By leveraging the support of the local business community, the country can build a robust and sustainable tourism industry that prioritizes the needs of its citizens while positioning itself for long-term growth.

Domestic tourism has played a crucial role in the Philippines’ recovery, with expenditures reaching PHP3.16 trillion in 2024, surpassing the pre-pandemic level of PHP3.14 trillion in 2019. This growth reflects the resilience of local travelers and their enthusiasm for exploring the country’s cultural and natural attractions. Projections suggest domestic travel will continue to expand, potentially doubling in size over the next five to ten years. Popular destinations like Boracay, Palawan, Cebu, and Baguio have seen increased interest, creating opportunities for businesses and local communities. This trend underscores the need for investments in infrastructure, transportation, and amenities to better serve domestic travelers and sustain this momentum.

For decades, the Philippines prioritized attracting international visitors, yet arrivals remain below pre-pandemic levels, with 2025 projections at six million. Key markets, like South Korea, saw significant declines, with a 19% drop early in the year due to security concerns. To address this, the Philippines should focus on domestic tourism. The country’s stunning landscapes, rich culture, and renowned hospitality appeal to local travelers, presenting an opportunity to build a more resilient, sustainable industry. Collaboration between the government and private sector can support local businesses and ensure long-term growth.

The shift toward domestic tourism requires improving tourist areas with local travelers in mind. Poor transportation links to top destinations must be addressed by upgrading airports, roads, and ferry routes to make travel more convenient and affordable. While the Philippines is a price-competitive region, more budget-friendly accommodations, such as mid-range hotels and homestays, are needed. Additionally, investments in clean restrooms, reliable Wi-Fi, and well-maintained public spaces will enhance the travel experience and encourage repeat visits.

Promoting lesser-known destinations is essential for broadening the appeal of domestic tourism. While iconic spots like Boracay and Palawan remain favorites, emerging destinations such as Siquijor, Dinagat Islands, La Union, and Surigao del Sur hold immense potential to captivate local travelers. Equally vital is engaging local communities in tourism development. Initiatives that focus on eco-tourism, cultural immersion, and sustainable practices not only enrich the travel experience but also create meaningful livelihood opportunities for residents, fostering inclusive growth.

The success of this strategy depends on strong collaboration between the government and the local business community. Private sector players, including hotel operators, tour operators, and transportation companies, are crucial in developing a vibrant tourism ecosystem. By working together, both sectors can address market gaps and develop tailored solutions. Local businesses, known for their agility and innovation, have already led efforts like the development of over 5,000 new hotel rooms expected in 2025. Public-private partnerships (PPPs) can further accelerate infrastructure upgrades and new attractions, combining resources and expertise to benefit both tourists and local communities.

As domestic travel continues to lead the recovery, the Philippine government and the private sector must align their efforts to create a sustainable tourism industry. This includes prioritizing infrastructure investments, fostering community-based tourism, and ensuring that local travelers have access to affordable and high-quality experiences. Rather than viewing domestic tourism as a stopgap measure, it should be recognized as a cornerstone of the country’s long-term tourism strategy. By focusing on the needs of local travelers, the Philippines can build a tourism sector that is not only resilient but also inclusive and sustainable.

The shift in strategy is not about abandoning international tourism but about creating a balanced approach that values both domestic and foreign visitors. In doing so, the Philippines can unlock the full potential of its tourism sector, ensuring that it remains a vital pillar of the economy for years to come.