Makati city: The Department of Tourism (DOT) is appealing for a higher budget in 2026, proposing PHP3.1 billion, with PHP500 million earmarked for branding and promotion of the Philippines as a global tourist destination, Tourism Secretary Christina Frasco said on Thursday. In a media briefing, Frasco pointed out that the DOT is ‘underfunded’ compared to the multimillion-dollar marketing efforts being mounted by its neighboring destinations.

According to Philippines News Agency, Frasco highlighted the significant budget cuts that the DOT has faced over recent years. She noted that Congress has reduced the department’s promotions funding by no less than 83 percent, from PHP1.2 billion to only PHP200 million in 2024, and further slashed it by half to only PHP100 million in 2025. Despite these challenges, she defended the agency against criticisms of underperformance, emphasizing that the Philippines still recorded a historic PHP3.86 trillion in domestic and foreign tourism receipts in 2023, and the sector directly employed over six million Filipinos.

Frasco recalled that in 2019, the Philippines welcomed 8.26 million foreign visitors, with the DOT’s funding for promotions in the same year pegged at over PHP1 billion. She argued that expecting a full recovery with only PHP100 to 200 million in investments is unrealistic. The DOT is currently recalibrating its targets for 2025, considering ‘circumstances surrounding tourism competitiveness.’

Frasco identified additional challenges such as geopolitical tensions and economic slowdowns in key tourism source markets, like South Korea, impacting visitor numbers. The continued suspension of the eVisa for Chinese visitors is also an ‘immense challenge’ for attracting tourists from China. Despite these setbacks, Frasco assured that the DOT would continue to promote the country in key and emerging markets, including the US, Canada, South Korea, and the Middle East nations such as the United Arab Emirates.

She emphasized the department’s strategic interventions to combat the current headwinds, stating that higher tourism receipts and more arrivals would be welcomed. However, she stressed that the success of these efforts is heavily dependent on the funding provided to the department. With only PHP100 million allocated for promotions in 2025, she expressed concerns about the Philippines’ ability to compete effectively with its neighbors.