MANILA, Philippines — A digital economy report showed that online travel made the highest contribution to the Philippines’ digital economy from 2022 to 2023.
Based on the e-Conomy SEA [Southeast Asia] report titled Reaching new heights: Navigating the path to profitable growth, online travel or planning and booking a trip via the internet emerged as the top contributor to the country’s digital growth.
The report was commissioned by Google, Temasek, and Bain & Company.
“Online travel is back with 88% growth—the highest growth rate in the local digital economy from 2022 to 2023,” the report said.
The sector is also expected to hit $3 billion, or about P168 billion, worth of gross merchandise value (GMV) this year.
“As recovery to pre-pandemic levels continues, travel is on its track to hit $3B GMV this year and is growing at 18% CAGR by 2025 where the sector is expected to reach $4B GMV,” said in the report.
GMV is defined as the “total value of merchandise sold over a given period of time through a customer-to-customer” by finance website Investopedia.
The same report also showed that the local digital economy is predicted to climb to $35 billion, or P1.9 trillion, from 2023 to 2025.
This will make the country the fastest-growing digital economy among Southeast Asian countries, the report said.
“With continued double-digit climb towards $35B by 2025, the country’s digital economy continues to exhibit resilience and generate opportunities for Filipinos despite macroeconomic headwinds,” said Nikki Del Gallego, head of Data and Insights of Google Philippines.
“This momentum is poised to continue, fueled by the immense potential of AI and the digital participation of internet users outside Metro Manila which could drive medium to long term growth,” she added.