Manila: The Philippine seafaring industry remains a vital lifeline for the national economy, generating over PHP1.06 trillion in total output and supporting nearly 400,000 jobs in 2024, based on a study by the Center for Research and Communication (CRC).
According to Philippines News Agency, CRC president Winston Conrad Padojinog emphasized at a press briefing that the combined spending of shipowners in the Philippines and the remittances of Filipino seafarers serve as an anchor for the country’s economic growth amid global uncertainties. Over the last five years, since 2021, the sea-based sector has contributed almost PHP1.5 trillion in economic output. This represents about PHP377 billion annually, accounting for approximately 20 percent of total overseas remittances and 1.6 percent of the GDP. However, these figures only capture the direct impact.
Padojinog elaborated that the industry quietly contributes more than these numbers suggest. He highlighted that seafarers’ remittances, spent by beneficiary households, ripple through various economic sectors. Beyond food, which claims a significant share of the budget, funds also address housing, transportation, and education needs.
Industry multipliers further amplify this impact, Padojinog noted, explaining that for every peso spent, more than a peso is generated as it circulates through the economy. Estimates indicate that each PHP1 spent by a household generates at least PHP3.2 elsewhere in the economy.
The CRC study found that foreign shipowners spent about PHP54.3 billion in the Philippines for training, accommodation, and pre-deployment requirements in 2024. Concurrently, Filipino seafarers remitted PHP277.4 billion to their families. These activities created a direct economic impact of PHP331.7 billion and a total output of PHP1.06 trillion, equivalent to 4 percent of the country’s GDP, while also generating PHP150.1 billion in household income and 398,839 jobs.
Despite these contributions, Padojinog warned of challenges threatening the stability of this industry, such as regulatory uncertainty and uneven enforcement. He emphasized preserving global confidence in Filipino seafarers, especially as other countries enhance their training and deployment programs. Furthermore, addressing onboard challenges, including mental health, and investing in training and skills upgrading are crucial.
He stressed the need for a supportive policy environment that facilitates long-term planning and protects seafarers’ welfare and rights. The Philippines’ competitive edge, he argued, lies in its mature industry chain and the belief in Filipino talent by shipowners. However, maintaining this edge requires careful attention to both talent competitiveness and the industries supporting them.
