Christmas and consumer spending

Since time immemorial, Christmas has always been synonymous with merriment for Filipinos. Whether family reunions or office dinner parties, there is no shortage of celebrations during the holiday season in the Philippines. After all, our country has the longest Christmas season in the world, starting as soon as the ‘ber’ months begin.

As President Ferdinand R. Marcos Jr. said during the Christmas tree lighting ceremony at the Malacanan Palace: “We have gained a reputation around the world for celebrating Christmas with more fervor than most other countries.”

But while Christmas is largely viewed as a religious and family affair, it cannot be denied that the holiday has largely been identified with consumerism —whether for food, gifts, travel or parties.

In the pre-pandemic era, Christmas has largely been marked by consumer spending in all forms —mall-wide sales, bargain items, fully booked restaurants, and gatherings of all sorts. These all took a backseat for three years due to the pandemic, which explains why many are excited to celebrate the holidays this year —the first Christmas in the new normal sans any public health restrictions.

This eagerness is further amplified as Filipino workers start receiving their 13th month pay and bonuses in time for Christmas gift shopping. With the holiday season in full swing, the impact of Christmas on the economy is further highlighted given that consumer spending traditionally increases during the last quarter of the year. There is also the seasonal increase in demand for labor support especially in the retail and service sectors.

With the strong economic performance of the Philippines in the third quarter highly likely to be sustained until the end of the year on the back of increased consumer spending during the holiday season, optimism is high despite the persisting inflationary pressures.

Given the prevailing consumer sentiment among Filipinos, it is timely to remind the public of the significance of their Christmas spending in terms of economic contribution while still being mindful of their expenses.

For instance, the Department of Trade and Industry (DTI) has announced its Noche Buena price guide for the holidays wherein over 150 Noche Buena products out of 240 items saw price hikes this year. This covers staple Noche Buena items such as ham, queso de bola, pasta, tomato sauce, all-purpose cream and mayonnaise.

While these items are a must for Filipino households during Christmas, the price increases highlight the need to be more conscious of the price tags of the items we buy today.

Strong consumer spending has become the norm during the holiday season, but this should not be interpreted as being wasteful. If any, holiday spending —if done mindfully— can be viewed as a positive effort to contribute to our country’s economic growth, provide more jobs, and spur business activity.

As Filipino consumers, there are numerous ways by which we can make our spending more meaningful this Christmas:

• Buy local - Christmas gift shopping is a good opportunity to buy local to promote Filipino brands.

• Support small businesses - Filipinos are naturally entrepreneurial. This holiday season is a chance to support small businesses such as bibingka and puto bumbong vendors.

• Go for sustainable brands - Another way to add meaning to holiday spending is by patronizing brands that promote sustainability.

• Travel local - Christmas in the Philippines is bright and colorful. For those planning holiday trips, our tourism sector will surely benefit from a boost in visitors this season.

Lastly, it doesn’t hurt to share. The holidays after all are all about sharing —whether material things, experiences, or time.

As we celebrate Christmas, may we all make the most out of this season—economically and personally.

Editor’s note: The opinions expressed in the foregoing article are solely the author’s and do not reflect the opinions and beliefs of the Philippine News Agency (PNA) or any other office under the Presidential Communications Office.