Domestic tourism continues to provide a critical cushion for the Philippine travel industry, contributing more than PHP3.16 trillion in spending in 2024 and surpassing pre-pandemic levels, according to real estate advisory firm Leechiu Property Consultants.

At a media briefing in Makati City, Alfred Lay, LPC’s director for Hotels, Tourism, and Leisure, said that while international arrivals have not fully recovered, the strength of the local travel market is bridging the gap.

Lay emphasized that domestic travel now holds the capacity to offset international shortfalls and could double in size over the next five to 10 years if infrastructure and affordability improve. In 2024, tourism as a whole accounted for 8.9 percent of the national gross domestic product (GDP), with domestic spending driving much of this growth.

Regional destinations gain ground

Data from LPC’s second-quarter property market report indicated a rising demand for accommodations outside traditional tourism hubs. Destinations such as La Union, Camiguin, Antique, and South Cotabato have shown increased visitor numbers, supported by better road networks and localized tourism campaigns.

Transportation to these areas has also improved. Several regional airports, including those in Panglao and Bicol, have resumed expanded domestic operations, while bus and ferry connectivity has normalized. This has made it easier for travelers from Luzon, Visayas, and Mindanao to explore lesser-known sites.

Airfares on domestic routes remain relatively affordable, and government partnerships with private sector stakeholders continue to streamline transport and accommodation booking processes, Lay added.

Travel as wellness and livelihood driver

Travel’s psychological benefits have played a role in the rebound as well. With more Filipinos prioritizing mental well-being and work-life balance, domestic trips are increasingly being used as tools for recovery and connection.

Community-based tourism enterprises, such as farm stays and heritage homestays, have reported more inquiries and bookings. Local guides, transport operators, and small retailers have likewise seen increased activity.

One case is in Sagada, Mountain Province, where homestay operators saw a 40 percent increase in bookings from January to May 2025 compared to the same period last year. Travelers cite nature immersion, cultural experiences, and wellness retreats as top reasons for choosing local destinations.

“Travel now serves more than leisure,” Lay said. “It is part of how Filipinos seek clarity, escape stress, and support family-run businesses.”

Sustainable growth and economic resilience

While the country’s international tourism expenditures hit PHP699 billion in 2024—an increase from PHP600 billion before the pandemic—domestic tourism remains the more stable contributor, with fewer barriers to access and more inclusive economic impact.

The resilience of domestic tourism is reshaping how government and tourism operators view long-term planning. Stakeholders are now more focused on ensuring that destinations are not only accessible but also prepared to handle sustainable visitor flow.

The Department of Tourism has intensified efforts to develop tourism circuits anchored on cultural heritage, environmental stewardship, and community participation. These initiatives include infrastructure upgrades, waste management programs, and skills training for tourism workers.

Despite concerns over travel affordability, the Philippines remains price-competitive in the region. The average hotel daily rate (ADR) in the country stands at PHP6,048, lower than Thailand, Vietnam, and Cambodia, according to LPC data.

As new routes continue to open and regional airports expand, the Philippines is poised to sustain its recovery by leaning on its own citizens to explore, reconnect, and invest in local travel.

By Jaja Agpalo