The Philippines has a steadily growing economy, with a gross domestic product (GDP) that reached over 404.28 billion U.S. dollars in 2022. Gross domestic product (GDP) denotes the aggregate value of all services and goods produced within a country in any given year. GDP is an important indicator of a country's economic power. The GDP of the Philippines is expected to increase substantially to over 709.64 billion U.S. dollars by 2029. The Philippines’ economy GDP of the Philippines has consistently grown at around six percent and is expected to remain constant through 2024. At the same time, the unemployment rate has fallen to about 2.5 percent in 2018, with an increasing amount of employment being within the services sector . Sectors of the economy The services sector is a significant economic sector in the Philippines economy, with a share of almost 60 percent in gross domestic product generation. Usually, a shift of GDP generation from agriculture to services is a sure sign of a growing economy - the same is true for the Philippines: Tourism and IT are industries within the services sector which has substantially contributed to the Philippines’ economic growth. The agriculture sector, although contributing to the Philippines’ export quantity, such as coconut oil and fruits, has declined over recent years, with more and more inhabitants moving to the cities to find work.

Tourist arrivals to the Philippines slowly picked up after significant disruptions caused by the COVID-19 pandemic in 2020 and 2021. From roughly 1.48 million tourists in 2020, international visitor numbers rose to around 5.44 million in 2024. Despite the increase, this number remains much lower than the pre-pandemic level. State of inbound tourism in the Philippines  The tourism industry has shown significant improvements in the past three years, with flights returning to normal and tourists reviving their travel interests. Although domestic travelers continue to outnumber inbound ones, the number of international tourists in the Philippines has seen gradual growth recently. In 2023, tourism receipts also slightly surpassed the 2019 values. On average, international tourists in the Philippines stayed for about 11 nights in November 2023, spending less than 8,000 Philippine pesos daily. In 20234, more than a quarter of tourists arriving in the country came from South Korea, followed by those traveling from the United States and Japan. Airlines for international tourists  In 2023, most international passengers who traveled to the Philippines were carried by Philippine Airlines (PAL), which is the country’s flagship airline. The majority of visitors entered the country via Manila, followed by Cebu. Aside from PAL, international tourists also traveled through Cebu Pacific, which is a low-cost airline that offers both domestic and international flights.

Philippines Number of Hotels: Metro Manila: Economy data was reported at 10.000 Unit in 2013. This stayed constant from the previous number of 10.000 Unit for 2012. Philippines Number of Hotels: Metro Manila: Economy data is updated yearly, averaging 11.500 Unit from Dec 1988 (Median) to 2013, with 26 observations. The data reached an all-time high of 19.000 Unit in 1998 and a record low of 6.000 Unit in 2001. Philippines Number of Hotels: Metro Manila: Economy data remains active status in CEIC and is reported by Department of Tourism. The data is categorized under Global Database’s Philippines – Table PH.Q007: Number of Hotels and Hotel Rooms.

In 2019, the unemployment rate in the Philippines was at approximately 2.24 percent and on a steady downward trend from 3.6 percent in 2014.

Souvenirs from overseas

The Philippines’ economy relies heavily on remittances from overseas, i.e. money sent home by Filipino emigrants and workers in other countries. In 2016 alone, approximately 30 billion U.S. dollars were received as remittances in the Philippines, and the amount seems to increase significantly every year. This makes the Philippines one of the leading countries worldwide when it comes to receiving remittances, only surpassed by India and China.

Visitors from overseas

The Philippines’ economy is stable, not only because of remittances, but also because of a flourishing services sector, which is now the main generator of GDP in the country; tourism and IT in particular contribute to economic growth. More than half of the Philippines workforce is employed in services.

In 2023, the Philippines’ inflation rate amounted to 5.98 percent. The Philippines are considered “newly industrialized”, but the economy relies on remittances from nationals overseas, and the services sector generates most of its GDP .

Emerging and soon to develop?

After switching from agriculture to services and manufacturing, the Philippines are now an emerging economy, i.e. the country has some characteristics of a developed nation but is not quite there yet. In order to transition into a developed nation, the Philippines must meet certain requirements, like being able to sustain their economic development, being very open to foreign investors, or maintaining a very high stability of the institutional framework (like law enforcement and the government). Only if these changes are irreversible can they be classified as a developed nation.

The Philippines’ switch to services

Ever since the switch to services and manufacturing, employment in these areas has increased and the country is now among those with the highest employment in the tourism industry worldwide. This transition was not entirely voluntary but also due to decreasing government support, the liberalization of trade, and reform programs. Still, agriculture is important for the country: As of 2017, more than a quarter of Filipinos are still working in the agricultural sector, and urbanization has only increased very slightly over the last decade.

Philippines Hotel Room Occupancy Rate: Annual: Metro Manila: Economy data was reported at 57.600 % in 2016. This records a decrease from the previous number of 60.140 % for 2015. Philippines Hotel Room Occupancy Rate: Annual: Metro Manila: Economy data is updated yearly, averaging 56.720 % from Dec 1988 (Median) to 2016, with 29 observations. The data reached an all-time high of 65.900 % in 2005 and a record low of 36.070 % in 1999. Philippines Hotel Room Occupancy Rate: Annual: Metro Manila: Economy data remains active status in CEIC and is reported by Department of Tourism. The data is categorized under Global Database’s Philippines – Table PH.Q008: Hotel Room Occupancy Rate.

Philippines Average Length of Stay: Hotel: Economy data was reported at 2.170 Night in Dec 2016. This records an increase from the previous number of 1.880 Night for Nov 2016. Philippines Average Length of Stay: Hotel: Economy data is updated monthly, averaging 2.145 Night from Jan 1989 (Median) to Dec 2016, with 336 observations. The data reached an all-time high of 3.270 Night in Jan 1989 and a record low of 1.440 Night in Jul 2015. Philippines Average Length of Stay: Hotel: Economy data remains active status in CEIC and is reported by Department of Tourism. The data is categorized under Global Database’s Philippines – Table PH.Q005: Average Length of Stay in Hotel.

Philippines Number of Hotel Rooms: Metro Manila: Economy data was reported at 440.000 Unit in 2016. This records a decrease from the previous number of 486.000 Unit for 2015. Philippines Number of Hotel Rooms: Metro Manila: Economy data is updated yearly, averaging 705.000 Unit from Dec 1988 (Median) to 2016, with 29 observations. The data reached an all-time high of 1,089.000 Unit in 1989 and a record low of 286.000 Unit in 2014. Philippines Number of Hotel Rooms: Metro Manila: Economy data remains active status in CEIC and is reported by Department of Tourism. The data is categorized under Global Database’s Philippines – Table PH.Q007: Number of Hotels and Hotel Rooms.