DOT Disputes Report on PH Having Lowest ROI on Tourism in SEA

The Department of Tourism, on Monday, September 8, responded to a widely circulated policy report titled "Which Southeast Asian Countries Truly Profit from Tourism" published in The International Investor in June. Written by investment and hedge fund manager Eric Jurado, it introduces a metric called Return on Tourism Impact (RoTI) and concluded that the Philippines has the lowest returns versus other countries in Southeast Asia. The framework, inspired by metrics like Return on Invested Capital (ROIC) and Market Value Added (MVA), measures the "value generated per unit of investment."

Published in a few local media platforms, the findings were also reported by Esquire Philippines on September 4.

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In a statement posted on ins offical Facebook page, the tourism department said that the policy report "relies on flawed methodology, questionable data, and misleading presentation that distort tourism’s true contribution to our economy and communities."

"Tourism is the livelihood of millions of Filipinos, directly and indirectly. To malign this sector with baseless rankings is not just inaccurate — it is harmful. It is imperative that we correct the misrepresentation because it sends the wrong signal to investors, partners, and travelers at a time when the Philippines is competing fiercely in Southeast Asia for market share," it adds.

DOT also called the RoTI framework a "bogus metric presented as authoritative," emphasizing that the concept is not recognized by any established multilateral body such as UN Tourism, the World Travel & Tourism Council (WTTC), or the World Economic Forum (WEF).

"By passing off this speculative metric as a definitive regional ranking, Mr. Jurado grossly misrepresents the performance of the Philippine tourism industry, undermining the efforts of each and every tourism stakeholder who built it into the resilient industry that it is."

To counter Jurado's claims, DOT listed data from the Philippine Statistics Authority:

• Tourism Direct Gross Value Added (TDGVA): P2.35 trillion in 2024, an 11.2% increase from 2023.
• Share to GDP: Tourism accounted for 8.9% of the entire Philippine economy in 2024.
• Tourism Receipts: International inbound revenue reached a record-high P699.98 billion in 2024, surpassing pre-pandemic levels. Combined domestic and foreign tourism expenditure hit P3.86 trillion, another historic high.
• Employment: Tourism sustained 6.75 million jobs in 2024, providing stable livelihoods across Luzon, Visayas, and Mindanao to as many as 16 million through indirect jobs.
• Investments: Based on the Tourism Gross Fixed Capital Formation at current prices reported by the Philippine Statistics Authority (PSA), the estimated combined investment of the public and private sectors in tourism for 2024 is P590 billion.

Another point of contention, according to DOT, is Jurado's comparison of cumulative, multi-year figures for tourism investments spanning two administrations (USD 23 billion or P1.32 trillion as Total Tourism Value Generated) to the single-year revenue estimate (USD 13 billion for 2024 or P750 billion).

"Needless to say, mixing multi-year investment totals with a single-year revenue figure produces meaningless ratios and misleading conclusion."

Aside from the "apples-to-oranges comparisons," the tourism agency added that Jurado's report did not include domestic tourism, the "cornerstone of our sector." This contributed P3.1 trillion in 2024 alone, the DOT said.

"While we appreciate Mr. Jurado’s imagination in portraying the Philippines as having the highest tourism investment in ASEAN — especially as the DOT continues to advocate for a larger tourism share given the sector’s historical allocation of less than 1% under the GAA — his calculation is not rigorous. It is flawed arithmetic that risks undermining investor and public confidence."

It could be "just...bad math."

The Real ROI, According to the Department of Tourism

"DOT data will show that in 2024, every peso invested in tourism generated P5.50 in returns through visitor spending and related activities. This corresponds to a Benefit–Cost Ratio (BCR) of 5.5 and an ROI of 4.5 — meaning the sector delivered an additional 450% return in value beyond cost recovery. Tourism is therefore a high-yield engine of jobs, livelihoods, and national growth, not the laggard the report portrays," they said.

DOT emphasized its commitment to "transparency and constructive engagement," calling on researchers and media to engage with the agency "to ensure Philippine tourism is represented with balance and integrity, as we continue to foster a sector that uplifts communities, champions sustainability, and shares the warmth of Filipino hospitality with the world."

Esquire Philippines reached out to Jurado for his reaction to the DOT statement but the analyst declined to comment.