Tourism Industry Leaders Rally Behind Angara-Mathay Amid Global Oil Crisis

The Philippine tourism landscape marked a significant transition last Monday afternoon, April 13, as President Bongbong Marcos officially swore in Ma. Bernadita "Dita" Angara-Mathay as the new Secretary of Tourism. For the nation's key industry stakeholders, the appointment represents more than just a change in leadership; it is a signal for a more transparent and collaborative partnership between the government and the private sector as they brace for a complex global economic climate.

With the escalating conflict in the Middle East threatening to destabilize fuel prices and international travel routes, tourism leaders are looking to Angara-Mathay to steer the industry through a necessary reset. The general consensus is that the sector must pivot away from traditional metrics and prioritize resilience and accessibility.

Jose C. Clemente III, president of Rajah Tours Philippines, highlighted that the immediate priority must be protecting the ease of movement. "One of the vital areas Sec. Angara-Mathay will need to address the issue of continued access or ease of travel to and within the Philippines, considering present conditions," Clemente noted. He warned that the industry’s survival is tied to its ability to handle external shocks: "We must be able to find ways to offset the effects of higher fuel prices to sustain both international and domestic arrivals. Tourism is dependent on mobility, and this will be a major consideration."

Clemente also pointed out that while the global situation is precarious, the Philippines cannot afford to lose its visibility. He stressed the importance of "continuing marketing and promoting the Philippines as a viable and attractive destination despite the current situation. But this comes with a spate of other factors, such as affordability and value for money. However, we must continue to keep the Philippines in the consciousness of travelers." To achieve this, he called for the Department of Tourism (DOT) to be granted an "ample budget" that reflects tourism’s importance to the national economy.

The scale of the challenge is evident in recent data. In 2025, the Philippines welcomed 5.87 million inbound tourists—reaching only 71 percent of the 8.3 million historic high recorded in 2019. While the DOT under the 2026 General Appropriations Act received a doubled brand campaign budget of P1 billion, this still trails significantly behind the massive marketing spends of regional competitors like Thailand ($168 million) and Malaysia ($263 million).

Peggy Angeles, Executive Vice President of SM Hotels and Conventions Corp. and a director of the Philippine Hotel Owners Association (PHOA), urged the new Secretary to "meet with the different industry stakeholders to gain insights." Angeles emphasized a strategy of focusing on immediate gains: "She should capitalize on the low-hanging fruit for immediate results. For example, the visa-free privilege for Chinese tourists."

She further suggested that the marketing budget be hyper-focused on high-potential zones: "Participate in select trade shows and embark on follow-up sales missions. Efforts must be taken to revive the Korean market, accelerate efforts in the Indian market, and so on. The private sector will surely support efforts by way of participation." However, Angeles warned that marketing is only half the battle, noting that the main challenge "is still the [lack of] infrastructure to support tourism, accessibility to the beautiful destinations of the country. Our domestic flights are expensive even before the Middle East situation. How can she also ensure the safety and security of tourists, which is needed to change the image of the Philippines?"

Perhaps the most significant shift requested by the industry is a change in how the country measures success. James Montenegro, President of the Tourism Congress of the Philippines, argued that the new chief "must immediately reset the tourism agenda toward economic outcomes—driving yield, length of stay, and regional dispersion, not just arrivals."

Montenegro believes the country must address its "tourism paradox"—where tourism provides a strong GDP contribution despite weak international arrival numbers compared to its neighbors. He underscored that "the challenges Angara-Mathay face require decisive intervention, not incremental fixes. The Philippines must confront its tourism paradox head-on—strong GDP (gross domestic product) contribution but weak international arrivals—by aggressively improving global competitiveness."

He further noted that "Fragmented government execution must be addressed by establishing a clear command structure that aligns all agencies influencing the traveler experience." By focusing on cost competitiveness across the value chain and building "curated, scalable tourism experiences," Montenegro believes the industry can build a "more resilient, diversified demand base" capable of weathering fuel volatility and global shifts.

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