The travel and tourism industry is expected to generate P636.4 billion ($ 15.1 billion) or 8.8 percent to the country's gross domestic product (GDP) this year, up from last year's estimated GDP contribution of five percent.

The World Travel & Tourism Council (WTTC) report said that the industry will employ 3.5 million, or 10.3 percent of total employed.

According to Tourism secretary Ace Durano, "The study largely confirms our positive outlook for the local tourism industry as a major contributor of employment and livelihood."

Durano further shared that the Department of Tourism intends to sustain the momentum it has gained by the end of 2007 by focusing more on high-value products to encourage tourists to stay longer and spend more.

The 2008 Tourism Satellite Accounting research is conducted yearly by the WTTC to measure the contribution of travel and tourism activities to a country's economy. The report covers 176 countries and follows that standard methodology of the United Nations.

The study noted that, "since travel and tourism touches all sectors of the economy, its real impact is even greater."

Such effect by the tourism sector includes P116 billion ($ 3 billion) or 11.1 percent of total investments.

Tourism exports, defined by the study as expenditure by international visitors, as well as capital goods for use by the travel and tourism providers, is further expected generate 9.9 percent or a P262.3 billion ($ 6.2 billion) share to overall country exports.

These figures are touted to reach to P695.7 billion ($ 11.8 billion), or 7 percent of the total exports in 2018.

The research further predicts a modest decline in the industry's contribution to GDP from 8.8 percent in 2008 to 8.7 percent by 2018.

Likewise, employment will drop slightly from one in every 9.7 jobs in 2008 to one in every 10.4 in 2018.

However, the Philippine tourism industry can still expect its real GDP growth to move up at an average of 4.5 percent per annum over the next 10 years.

The moderate development for the Philippines is in keeping with the research team's observation of an over-all deceleration in the global industry, which is challenged by the Unites States economic slowdown and weak dollar, higher fuel costs and climate change issues.

"The continued strong expansion in emerging countries, both as tourism destinations and an increasing source of international visitors, means that the industry's prospects remain bright into the medium term," noted WTTC President Jean-Claude Baumgarten and WTCC Chairman Geoffrey J. W. Kent in the report's introduction.

The 2008 Tourism Satellite Accounting survey is sponsored by IT company Accenture and produced by research and analysis group Oxford Economics.