The Philippines delivered the worst returns on tourism spending among Southeast Asia’s major economies, despite allocating about US$23 billion to infrastructure and promotional programs, a study has found.
In 2024, the country generated only US$13.1 billion in receipts from 5.9 million international arrivals, equivalent to a return of just 57 cents for every dollar spent, according to a policy report by international investor Eric Jurado published on The Intelligent Investor.
This placed the Philippines at the bottom in Return on Tourism Impact (RoTI) among six Southeast Asian economies reviewed, including Vietnam, Thailand, Malaysia, Singapore, Indonesia.
Jurado’s policy report introduced RoTI as a benchmark that compares the total tourism value generated with the level of public and public–private investments, offering a metric of whether nations truly profit from their tourism strategies.
In contrast, Vietnam recorded the highest RoTI in the region at 1.94, generating US$33 billion in revenues from an estimated US$17 billion in investments.
Thailand followed, maintaining ratios above 1.5 on the strength of 35 million arrivals and long-standing brand equity.
Malaysia and Singapore also reported strong returns with relatively lean spending, while Indonesia’s performance was constrained by high infrastructure costs across its archipelago.
Jurado identified four weaknesses dragging down Philippine tourism:
- Inadequate infrastructure
- Weak international branding
- Restrictive visa policies
- Limited data-driven planning
He noted that while the country boasts natural attractions and an English-speaking workforce, inefficiencies prevent investments from delivering proportional gains.
Tourism supports about 6.75 million jobs in the Philippines, but the report warned that low RoTI restricts wage growth and sectoral development.
In Thailand, where tourism sustains over 7 million workers, higher RoTI translates to stronger incomes and more sustained livelihoods.
The report also highlighted qualitative factors boosting returns elsewhere, such as Vietnam’s visa liberalization, Thailand’s integration of heritage and ecotourism, and Singapore’s seamless travel experience.
The Philippines, meanwhile, continues to struggle with airport congestion, limited inter-island connectivity, and outdated digital systems.
To raise returns, the study recommended institutionalizing a national RoTI scorecard, upgrading transport hubs and digital platforms, relaunching the Philippine brand globally, and expanding visa-free access to key markets.
“What matters is not simply how many tourists arrive, but how efficiently every dollar invested translates into real economic and social value,” Jurado said.
