Expanded 2026 Budget Proposed by DOT
The Department of Tourism (DOT) in the Philippines has proposed a substantial increase in its budget for 2026, aiming to boost tourism branding and promotion, address underfunding issues, and enhance nationwide tourism services.
The proposed budget of over P3.1 billion to P3.5 billion for 2026 is a significant leap from the P100 million budget for 2025, which was half of the 2024 allocation. A key component of this budget increase is the allocation of P500 million for branding and promotions of the Philippines as a global tourist destination.
Tourism Secretary Christina Garcia Frasco has defended this proposal, emphasising the need to recover and advance the tourism industry effectively. She criticised legislative criticisms of the budget as suspiciously timed, highlighting the urgency of increased funding.
The DOT's efforts to increase its budget are driven by the need to close the funding gap relative to past years, align with regional competitors' marketing efforts, and restore the Philippines' tourism competitiveness. Neighbouring countries like Thailand, Indonesia, and Vietnam have heavily invested in aggressive tourism marketing and infrastructure development to capture larger tourist shares in Southeast Asia.
Frasco vowed that the DOT would continue to promote the country in key and emerging markets, including the US, Canada, South Korea, and the United Arab Emirates. However, she also mentioned geopolitical tensions and economic slowdowns in key tourism source markets like South Korea as major challenges impacting visitor numbers.
In 2019, the Philippines welcomed 8.26 million foreign visitors. Despite budget cuts and missed international arrival targets, the country recorded a historic P3.86 trillion in domestic and foreign tourism receipts in 2023. The tourism sector directly employed over six million Filipinos in 2023.
The continued suspension of the eVisa is an "immense challenge" for the DOT in attracting visitors from China. The DOT's promotions funding was further slashed by half to P100 million in 2025, and its funding for 2024 was slashed by 83% from P1.2 billion to P200 million. The DOT is arguing that it is underfunded compared to the marketing efforts of neighbouring destinations.
In light of these challenges, the DOT is recalibrating its targets for 2025 due to "circumstances surrounding tourism competitiveness." Tourism Secretary Christina Frasco stated these proposals on July 31, 2025.
- The Philippines' Tourism Secretary, Christina Garcia Frasco, is advocating for policy-and-legislation changes to secure a budget of over P3.1 billion to P3.5 billion for 2026, believing this is crucial for the growth of the country's business sector, specifically the tourism industry.
- The proposed budget for 2026 marks a substantial increase from the P100 million budget for 2025, with a focus on areas like branding and promotions, aiming to close the funding gap and align with regional competitors in Southeast Asia.
- The proposed budget increase, if approved, will likely have far-reaching impacts on general-news, politics, and finance, as the tourism industry is a significant contributor to the Philippine economy, directly employing over six million Filipinos in 2023.
