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MANILA, Philippines 鈥� A digital economy report showed that online travel has the most substantial growth rate within the Philippines鈥� digital economy between 2022 and 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, boasts the highest growth rate within the nation鈥檚 digital economy.
The report was commissioned by聽Google, Temasek, and Bain & Company.
鈥淥nline travel is back with 88% growth鈥攖he highest growth rate in the local digital economy from 2022 to 2023,鈥� the report said.
The sector is also expected to hit $3 billion, or about P168 billion, worth of gross merchandise value (GMV) this year.
鈥淎s 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,鈥� said in the report.
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GMV is defined as the 鈥渢otal value of merchandise sold over a given period of time through a customer-to-customer鈥� by finance website Investopedia.
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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.
鈥淲ith continued double-digit climb towards $35B by 2025, the country鈥檚 digital economy continues to exhibit resilience and generate opportunities for Filipinos despite macroeconomic headwinds,鈥� said Nikki Del Gallego, head of Data and Insights of Google Philippines.
鈥淭his 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,鈥� she added.