The Department of Tourism (DOT) has strongly refuted a recent report that labeled the Philippines as having the "lowest return on investment (ROI) in tourism" in Southeast Asia, calling the analysis "flawed, misleading, and malicious." The report, authored by Eric Jurado and republished by Esquire Philippines and BusinessMirror, used a non-standard metric called "Return on Tourism Impact (RoTI)."

The DOT pointed out that this metric is not recognized by internationally accredited organizations such as UN Tourism, the World Travel & Tourism Council (WTTC), or the World Economic Forum (WEF). The department also stressed that the report's conclusion "severely distorts" the performance of Philippine tourism and jeopardizes the livelihoods of millions of Filipinos.

"To malign the tourism sector with unfounded rankings is not only inaccurate but also malicious," the DOT said in a statement. "At a time when the Philippines is vying for a bigger share of the Southeast Asian market, it is imperative to correct this misconception that sends a wrong signal to investors, partners, and travelers."

According to the Philippine Statistics Authority's (PSA) 2024 Tourism Satellite Account data, the tourism sector generated a direct gross value added of 2.35 trillion pesos, marking an 11.2% growth from 2023. This accounts for 8.9% of the country's GDP. International visitor receipts reached 699.98 billion pesos, and total tourism expenditure, including domestic and foreign spending, amounted to 3.86 trillion pesos. The sector generated 6.75 million direct jobs and provided indirect livelihoods for up to 16 million Filipinos. Tourism-related investments in 2024 were estimated at 590 billion pesos.

The DOT criticized Jurado's methodology, noting that the report derived a "meaningless ratio" by comparing "a cumulative investment of $23 billion over many years" with "a single year’s estimated tourism revenues of $13 billion." The department specifically called out the report for severely underestimating the true ROI by excluding domestic tourism figures, which generated 3.1 trillion pesos in 2024 alone, thereby distorting the ROI calculation.

Based on the DOT's own data, every peso invested in the tourism sector in 2024 generated 5.50 pesos in returns. This corresponds to a benefit-cost ratio of 5.5, with an ROI of 4.5, or a high return of 450%.

The DOT emphasized that "tourism is not a laggard sector as the report portrays it to be, but a high-yielding engine for jobs, livelihoods, and national growth." The department concluded that "any attempt to erase these gains with fabricated or distorted numbers affects the millions of Filipinos who depend on this industry for their sustenance. The Filipino people deserve better."

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