The Philippine tourism industry was on a roll for well over a decade, posting record international tourist arrivals, and even surpassing targets for GDP contribution, revenue generation, and domestic arrivals.
However, the COVID-19 pandemic has severely affected the tourism sector. Data from the Department of Tourism (DOT) revealed that visitor arrivals were recorded at 1.3 million from January to June 2020. This translates to around 68 percent decline year on-year.
In terms of recovery, leisure demand has the potential to restart the industry. Domestic travelers are seen to engage in short travel distances, such as traveling to neighboring cities or provinces, and eventually going farther distances as travel becomes mainstream again.
This is according to a hospitality sector review titled “Hospitality sector banking on domestic tourism to drive recovery,” sent to members of the media by Santos Knight Frank. The company, said to be the largest fully integrated real estate services company in the Philippines, was founded by Rick Santos in 1994. Santos Knight Frank has grown to 11 market-leading service lines and over 1,400 professionals across the country.
The report likewise stated that demand for business travel will remain uncertain depending on the travel restrictions, as well as the financial capabilities of companies. Recovery will be much slower in areas with stricter quarantine than modified general community quarantine (MGCQ). Moreover, processing and securing of documents, such as travel passes, will take significant time and effort.
Despite some drastic effects of the pandemic to the local hospitality sector, some destinations in the country continue to receive international recognition. Forbes included the Philippines in its nominal list of top tourist destinations post-COVID-19. The list, which includes six other countries in the different parts of the world, featured the cities of Manila and Quezon in Metro Manila as destinations for those who want to experience mainstream Filipino culture. Those tourists looking for beach destinations may try Palawan and Boracay.
Palawan has been recognized by two other international travel publications. El Nido’s Hidden Beach took the 20th spot in Conde Nast Traveller’s list of The 30 Best Beaches in the World. The island province has also been voted as the best island in the world in 2020 by the readers of travel publication Travel + Leisure. This marks Palawan’s fourth time winning the same award since first receiving it in 2013.
Citations such as the aforementioned ones should help the distressed industry recover post-pandemic.
Moreover, the report concluded, DOT is ramping up its efforts to revive the industry by gradually reopening domestic tourism, as well as helping hospitality stakeholders through various financial recovery plans. With emerging challenges and trends in the sector, it is important now more than ever that hospitality players pivot their properties to new opportunities.