HomeDLSU Business & Economics Reviewvol. 22 no. 1 (2012)

An Economic Analysis of the Philippine Tourism Industry

Krista Danielle Yu



The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities. According the Department of Tourism (2011), the industry is one of the three largest industries in the country. This study aims to measure the economic impact of tourism to the Philippine economy through the use of input-output analysis. The tourism industry is mainly a consumer of inputs and producer of final goods, hence, its impact on the output is relatively higher. Also, its interdependence with other industries as shown by the linkage indices prove that other sectors do benefit from the tourism sector. The government should promote tourism in the country. The past government administration applied holiday economics to help boost tourism domestically. The current administration may choose to consider continuing the program.