![](https://dailyguardian.com.ph/wp-content/uploads/2024/07/Iloilo-City-counts-old-churches-2.jpg)
By Francis Allan L. Angelo
The Philippine tourism industry, a P3.7 trillion powerhouse in 2019, is still reeling from the pandemic’s impact, with total expenditure reaching only P3.4 trillion by the end of 2023.
For Iloilo, a strategic and targeted plan is crucial to revitalize its tourism sector and tap into its full potential.
Tourism in the Philippines has always leaned heavily on domestic spending, outpacing international tourism by a significant margin.
Data from Iloilo-based think tank Institute of Contemporary Economics (ICE) reveals that domestic tourism consistently accounts for around 80% of total tourism expenditure. However, Iloilo’s contribution to this sector remains marginal.
In 2022, Accommodation, Food Service, Transportation, and Storage accounted for only 7.6% of the province’s GDP and 7.4% for Iloilo City, down from pre-pandemic levels of 8.6% and 7.7%, respectively.
The report highlighted the stark contrast between the size of the tourism industry in the province and Iloilo City at less than P20 billion and the P1.4-trillion gross value of the country’s tourism sector.
“While we could extend the contribution of Tourism to Retail Trade and Professional and Business Services, any attribution as to size of impact to these two other components of GDP would be tenuous. It would thus be within the realm of reasonable estimates to conclude that the size of the tourism industry in the province and Iloilo City would be less than 5% or less than P20 billion for the province and city combined. This is quite minuscule compared to the P1.4 trillion in tourism direct gross value added for the entire country in 2022,” the ICE report read.
Local stakeholders emphasized the need for a comprehensive plan to leverage Iloilo’s unique assets.
“Our story is rich with heritage houses, churches, and a vibrant gastronomic scene,” noted an industry expert. “Yet, we haven’t fully cataloged our attractions, making it difficult to market effectively.”
The “Visit Iloilo” campaign is a promising start but requires substantial support. Questions about the city’s identity and unique offerings must be answered.
“We have to tell our story compellingly and differentiate ourselves from other destinations,” the expert added.
Investment in infrastructure is another critical factor. The city needs more upscale resorts, improved airport facilities, and increased airline frequencies to meet potential demand.
“We need data-driven strategies to reopen international routes and expand domestic capacity,” the ICE report emphasized.
Iloilo’s potential extends beyond traditional tourism, with the discovery of the Habenaria gibsonii var. foetida orchid in UP Visayas has sparked interest in ecotourism.
The university’s plan to develop an eco-trail with educational signages and a botanical facility could serve as a model for other eco-parks.
Medical and wellness tourism also present untapped opportunities.
“Tourism expenditure on health and wellness services increased from 18.6% in 2019 to 22.5% in 2023,” the ICE report noted.
Iloilo’s existing healthcare infrastructure could be a cornerstone for developing this niche market.
However, competition for domestic tourism spending is fierce.
Filipino households have shifted their spending priorities since the pandemic, with recreation and leisure now accounting for just 1.5% of household expenditures, down from 2.2% pre-pandemic.
Similarly, spending on restaurants and hotels has declined.
“The need for diversification in Iloilo’s economy is clear,” the ICE report concluded.
“While agriculture remains a significant part of our economic output, developing the tourism industry can provide a much-needed balance.”
The seeds for Iloilo’s tourism revival are sown, but realizing its potential will require a proactive, well-supported plan to ensure these seeds grow and flourish.