Domestic travel is proving to be the backbone of the Philippines’ tourism recovery, with recent data showing that local tourism spending has already exceeded pre-pandemic levels. According to real estate advisory firm Leechiu Property Consultants (LPC), the resilience and scale of domestic travel have made it a significant economic driver in 2024 and into 2025.

LPC reported that domestic tourism expenditures reached PHP3.16 trillion in 2024, slightly higher than the PHP3.14 trillion recorded in 2019. This surge has helped offset the decline in international arrivals, particularly from major markets like South Korea, which saw a 19 percent dip in visitor numbers due to ongoing security concerns.

While international tourism remains important, the Philippines’ ability to sustain growth through domestic travel highlights the adaptability of its tourism industry. In a briefing held in Makati City, Alfred Lay, LPC’s director for Hotels, Tourism, and Leisure, emphasized that domestic tourism could continue to compensate for international shortfalls in the medium term.

“Domestic travel is so big and strong that it can make up for the shortfall of international arrivals,” Lay said. “Its long-term potential lies in expanding its size within the next five to ten years.”

Economic Benefits Reach Local Communities

Beyond economic figures, domestic travel supports a wide network of local economies. Destinations from Ilocos to Mindoro, and from Bohol to Davao, benefit from increased foot traffic, especially in the form of weekend trips, family getaways, and nature-based excursions.

For small businesses—homestay operators, local guides, transport providers, and food vendors—this influx of domestic travelers provides a consistent source of income and creates new employment opportunities. Regions with accessible transportation and consistent tourism activity often see more investment in infrastructure and public services.

The Department of Tourism also noted that travel contributed 8.9 percent of the country’s gross domestic product in 2024, further cementing tourism’s role as a pillar of national growth.

Travel and Mental Well-being

For many Filipinos, travel has also become a coping mechanism—an antidote to the stresses of urban life and economic uncertainty. Short-haul destinations accessible by land or low-cost flights offer opportunities for rest and reconnection.

Nature-based tourism, such as visits to waterfalls, beaches, and mountain resorts, has seen a steady rise. These experiences, according to health professionals, provide mental health benefits by promoting relaxation, encouraging physical activity, and offering a change of environment.

Destinations within a few hours of Metro Manila, like Batangas, Zambales, and Pampanga, remain popular for weekend travelers. Meanwhile, locations with improved air connectivity, such as Cebu, Iloilo, and General Santos, are drawing more interest from visitors looking to explore lesser-known attractions.

Affordability and Access

LPC also addressed perceptions around the cost of travel within the country. Hotel average daily rates in the Philippines remain competitive compared to regional neighbors. At PHP6,048, the country ranks fourth in Southeast Asia, behind Thailand, Cambodia, and Vietnam.

With ongoing investments in airport upgrades and road networks, accessibility is expected to improve. More routes, additional flight frequencies, and simplified travel procedures are anticipated to sustain the upward momentum.

Looking Ahead

Lay noted that long-haul tourist arrivals—from the U.S., Japan, Australia, and Canada—are growing steadily, helping to balance regional declines. This diversification, combined with a strong domestic base, offers stability to the tourism sector.

As local travelers continue to explore nearby provinces, and as infrastructure and affordability improve, domestic tourism is set to remain a key component of the Philippines’ economic and cultural resilience. Rather than merely filling a gap, it has become a foundation for inclusive, sustainable development across the archipelago.

By Jaja Agpalo