Despite the spiraling cost of travel and the prevailing global economic slump, the Philippine Department of Tourism expects more foreign tourists to visit the country, media reports said on Friday.

Tourism Secretary Joseph Ace Durano said the number of foreign visitors coming to the country is still growing by seven to nine percent even as many worldwide reel from the oil crisis, the Philippine Star reported.

"As we have previously projected, the growth of tourist arrivals is still within the range of seven to nine percent on a year-on-year basis," said the tourism chief of the archipelago.

"I believe the Philippine tourism industry will continue to grow despite the challenges and the global economic slump," he said.

Durano said his department was able to position the country's tourist destinations in Europe and in other emerging markets, whose economies continue to grow.

"Our past marketing mission is now fueling the growth momentum we are experiencing at this time," he said.

The increasing cost of transport is partly absorbed by all the components of the tourism supply chain, so that the cost to be passed down to the tourist is very minimal, he said.

"We were also able to introduce in the market at the right time higher value tourism products like wellness, medical education, and shopping which contributes to higher spending by tourists in the country," he added.

In the first quarter of the year, the department reported that the local tourism industry has already generated earnings of 1.02 billion U.S. dollars with the arrival of more foreign tourists in the country.

Meanwhile, the department signed with the Ministry of Tourism of India an agreement providing for the implementation of projects mutually benefiting the travel industries of both countries.

"Tourist arrivals from India to our islands grew at an average of 11.4 percent over the past five years. With the many things happening for the Philippines with regard to this market, the signing comes at an opportune time to discuss ways and means that will enable both countries to seize the potentials and enhance tourist traffic," Durano said in a statement.

(Xinhua News Agency July 14, 2008)