THE tourism sector is getting less support from the Marcos Jr. administration as proposed in its P7.2-trillion National Expenditure Program (NEP) next year.
Documents prepared by the Department of Budget and Management (DBM) website indicated that under the NEP 2027, the administration’s planned investment in tourism is some P7 billion, or just 0.10 percent of the spending on economic services at P1.83 trillion.
This share decreased from P7.74 billion (0.12 percent of P2.06 trillion) in 2025, then P7.8 billion (0.12 percent of P1.56 trillion) in 2026, under the cash-based expenditure program.
The proposed P7-billion spend on tourism next year-the lowest among economic services sectors-covers the Department of Tourism (DOT) and its attached agencies (P4.03 billion); and budgetary support to government corporations (P2.72 billion), under which the Culture Center of the Philippines and Development Academy of the Philippines are lumped, together with the Tourism Infrastructure and Enterprise Zone Authority, Tourism Promotions Board, and Duty Free Philippines Corp.
It also includes P250.87 million in special purpose funds, such as contingent funds maintained by the DBM to cover immediate funding requirements for new or urgent activities, and a miscellaneous personnel benefits fund. The latter covers funding shortages for salaries and bonuses of state employees.
‘Snubbed’ at Sona
It will be recalled that in his State of the Nation Address (Sona) this year, President Ferdinand R. Marcos Jr. failed to cite any progress or plan for the tourism sector, which distressed a number of tourism stakeholders.
Despite the apparent snub, Acting Tourism Secretary Ma. Bernadita Angara-Mathay sought to ease the industry concerns, underscoring that the President had emphasized ‘infrastructure and physical linkages’ in his Sona. ‘This is why the Department has been emphasizing the need for stronger flight connectivity, more routes, better regional gateways, and more competitive travel costs,’ she said.
Meanwhile, the DOT’s proposed budget next year is P4.02 billion, slightly lower than its P4.16-billion total allocation under the General Appropriations Act of 2026. Of next year’s proposal, the biggest share will go to the DOT-Office of the Secretary at P3.53 billion, down from its P3.64 billion appropriation this year.
The rest of the funds will go to attached agencies: Intramuros Administration at P158.43 million (from P161.34 million in 2026); National Parks Development Committee at P286.03 million (from P316.81 million); and the Philippine Commission on Sports Scuba Diving at P47.72 million (from P43.29 million).
Cited for underspending
The DBM, which coordinates and organizes the budget proposals of government agencies and other state-owned institutions, finalizes the annual NEP for consideration by both houses of Congress.
DBM computes for an agency’s final proposed budget for the following year, taking into account the use of its currently appropriated funds.
The DOT has had a perennial problem with the poor utilization of its appropriated funds leading to citations from the DBM, as well as mentions from the Commission on Audit’s agency reports.
‘Out of the total allotments received by DOT amounting to P3.27 billion in CY 2024, the amount of P2.82 billion, or 86.31 percent, was obligated, leaving an unobligated balance of P448.08 million, or 13.69 percent, while P2.17 billion, or 76.78 percent of the total obligations was disbursed, leaving an undisbursed balance of P655.78 million or 23.22 percent at year-end, thus, utilization of authorized budget was not fully maximized,’ said COA in its latest audit report of DOT’s funds.
Former Tourism Secretary Christina Garcia Frasco had often blamed the agency’s low budget allocation for its inability to attract more foreign tourists, which reached 5.87 million last year, 1.34 percent less than in 2024. Still, at US$59 million, the Philippines has the lowest spend on tourism promotions in Southeast Asia. Other countries’ spend were: Indonesia at $645 million; followed by Malaysia, $358 million; Singapore, $376 million; and Thailand, $111 million.