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Essay: Tourism in the Philippines

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  • Subject area(s): Hospitality and tourism essays
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  • Published: 22 April 2020*
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Tourism is recognized as an important industry in the Philippines. Its significance as main driver and contributor to socio-economic growth is acknowledged in Republic Act 9593 or the Tourism Policy Act of 2009. It has seen an increasing direct contribution to the country’s gross domestic product (GDP) and employment over the years and peaking in 2017 at 12.2% and 13.1%, respectively (Philippine Statistics Authority, 2018). Prior to the launch of the campaign, the Philippines was struggling to compete with its neighboring Southeast Asian countries such as Thailand and Singapore in terms of tourist volume (Bosangit, 2014). The Philippine Department of Tourism (DOT) developed the Philippine National Tourism Development Plan (NTDP) 2011-2016 that sought to address issues of the tourism industry , and aim achieve 10 million foreign tourist arrivals and 35 million domestic tourists by 2016. With a national policy and plan at hand and an increasing importance to the economy, the Philippine government easily put tourism as one of its main priorities for development. Then-President Benigno Aquino III, approved a budget of 3.1 billion Philippine pesos to establish a tourism marketing campaign to reach the NTDP targets by 2016, the largest the Department received for marketing (Bosangit, 2014). The establishment of a new marketing campaign was opened for bidding to advertising agencies in the country that was eventually won by BBDO Guerrero, the Philippine chapter of one of the world’s largest advertising agencies, BBDO. The winning campaign was called “It’s more fun in the Philippines” and was launched in January 2012. The Department of Tourism revealed an accompanying logo which included a pixelated weaved image of the Philippines with a color palette representing the three main colors of the Philippine flag (Figure 1). Simultaneous to the launch of the campaign was also the launch of the now-defunct website www.itsmorefuninthephilippines.com that showcased the different destinations and attractions around the country. One of the highlights of the campaign was crowdsourcing, where they encouraged people to create their own ads or memes that would showcase what makes the Philippines “more fun”.

Figure 1. It’s more fun in the Philippines official campaign logo. (Department of Tourism, 2012b) At the onset of the campaign, DOT launched three sample memes to set as an example (Figure 2), along with the hashtag #ItsMoreFuninThePhilippines in all online posts relating to the campaign. DOT also launched an application and the guidelines for submission of memes on the website. With an estimated 27 million Facebook users at the time of the launch, the campaign became a viral hit online (Valdez, Tupas, & Carol Tan, 2017). Within 30 minutes of the launch, the hashtag was also trending on Twitter worldwide (Bosangit, 2014).

Figure 2. Sample image released by the Department of Tourism (Department of Tourism, 2012b) Then-DOT Secretary Ramon Jimenez Jr. described the campaign as “grounded on basic, truthful communication between two persons; a campaign for people who haven’t seen the Philippines yet; with a new tourism line that allows the Filipinos to take the line and own it to themselves; and it is not a manufactured line; it is drawn from the way Filipinos have touched the lives of tourists” (Metro Manila Directions in Bosangit, 2014, p.151). A year after the launch of the campaign, foreign visitor arrivals hit a 9.07% increase from the previous year, marking the first time that the country surpassed the 4 million mark (Bosangit, 2014). While no actual measurement has been done on the online success and impacts of the campaign, DOT perceived the continuous increase of tourist arrivals (Figure 3) as an indicator of the campaign’s success.

Figure 3. Foreign visitor arrivals in the Philippines from 2010-2016 (Compiled from: Department of Tourism, 2011, 2012a, 2013 , 2014, 2015, 2016) However, while the campaign encouraged to generate “fun” things about the Philippines, DOT could not also stop people from generating memes that emulated negativity about the Philippines (Figure 4) (Della Corte & Sepe, 2016). After a year, the meme generator application was discontinued. However, people are still able to produce memes containing the official font, the Harabara Mais, that is available to download for free in several sites across the internet. This makes memes look like it was generated from the online application, despite its closure. Thousands of photos were and are still being generated online and continue to be searchable on the internet. Despite these negative photos being produced, the campaign continues to run in the present.

Figure 4. An example of a negative meme resulting from the campaign (“Being poor. More fun in the Philippines,” 2013)

2.6. Retirement tourism in the Philippines The Philippine Retirement Authority (PRA) is the mandated government agency to “develop and promote the Philippines as a retirement haven” (Philippine Retirement Authority, n.d.). The PRA only became an attached agency of the DOT upon the enactment of the Republic Act 9593. Their mission is to “provide a globally competitive retirement program in the Philippines for foreign nationals and former Filipinos” as part of the socio-economic development of the country (Philippine Retirement Authority, n.d.). The PRA enjoins DOT’s efforts in promoting their services in various fairs, sales missions, expositions and conferences in the Philippines and abroad (Philippine Retirement Authority, 2017). Retirement tourism is identified as one of the core tourism products within the NTDP. According to the Plan, retirement tourism is “capable of delivering strong future growth with long average length of stay and expenditure” (Department of Tourism, 2012c, p. ix). The Plan identifies the European, Middle East, and North American markets as main targets for this tourism segment. Since the inception of PRA in 1985, it has seen increasing number of foreign retirees in the Philippines (Table 1) that mostly came from China, South Korea, India, United States of America, and Taiwan (Philippine Retirement Authority, 2017). Table 1. Cumulative count of foreign retirees in the Philippines from 1985 to 2017. Year Cumulative count 1985-2012 28,890 2013 32,697 2014 37,485 2015 42,516 2016 48,072 2017 53,933 Despite the PRA not being directly involved in the “It’s more fun in the Philippines” campaign, DOT produces material that are targeted towards retirees. In 2017, DOT launched a video entitled “Sights” that featured M. Uchimura, a Japanese retiree in different destinations in the Philippines (available online: https://www.youtube.com/watch?v=A3xeB4-qv8I). At the end of the video, it was revealed he was not only a retiree, but also a blind man. It was met with criticism online leading to DOT pulling out the commercial following claims around social media that it was strikingly similar to a South African tourism ad (Rappler.com, 2017). However, during the earlier stages of the campaign, only images with older adults as subjects were produced from the campaign and did not necessarily aim to attract older adults to retire in the country. Nevertheless, these photographs contribute to the images and perceptions of the Philippines as a retirement destination. 3. Theoretical Framework Like DOT, many destination marketing or management organizations (DMOs) use photographs to represent and promote destinations and attractions. Photographs play a crucial role in promoting destinations as they set expectations of quality and experience (Garrod, 2009). Images that are portrayed and actual experience could determine tourist satisfaction and possibilities of recommending to others and returning back (Britton, 1979; Fakeye & Crompton, 1991; Garrod, 2009; Tuohino & Pitkänen, 2004). Choosing images to represent destinations and projecting how they will be received and perceived prove to be a difficult endeavor for researchers and DMOs alike owing to multiple social realities and even more complex feedback loops among multiple senders and receivers (Blichfeldt, 2018; Crick, 1985; Garrod, 2009; Hunter, 2008; Jenkins, 2003). In the advent of social media, actors and stakeholders are better able to communicate to and with amongst themselves, producing complex interactions than ever before that stimulate experiences, images, and even satisfaction rates (Oliveira & Panyik, 2015). Visual representations help build a destination image that has been referred to as both the actual image represented and possible metaphorical implications of the image and are subject to a wide range of interpretations by different tourism stakeholders (Beerli & Martin, 2004; Edwards, 1996). In this view, photographic representations of tourism destinations has three directions of inquiry: the extrinsic direction which looks into the difference between representation and reality, the intrinsic direction which deals with the message and the style of the image itself, and the dynamic direction which focuses on the ability of the image to influence perception, lens, and experience of a place (McGregor, 2000). As such, photographic representations of tourism destinations have “multiple signifiers for the endless purposes of various combinations of senders and receivers” that contribute to the complexity of a destination image in itself (Hunter, 2008, p. 356). These representations and interpretations can evolve through time, through a process called resemiotization. It deals with “how meaning-making shifts from context to context, from practice to practice, or from one stage of a practice to the next” (Iedema, 2003, p. 41). That is to say, representations and meanings are subject to different interpretations as it is communicated in varying contexts and through different media. The translation of meanings within different contexts is affected by the various social realities, and might be eventually detached from its original intentions (Mehan, 1993). Scollon (2008, p. 233) explains that these meaning-making alterations are “always mediated by the actions of social actors as well as through material objects of the world”. He describes nine processes of resemiotization which he labels as discourse itineraries – action, practice, narrative, authorization, certification, metonymization, remodalization, materialization, technologization or reification. As an example, he took the word “organic” and described the complex transformation of meanings and definitions associated with it as a result of the actions, brands, and history coming along with it. He mentioned that organic can refer to the actions and practices of farming, or to the lifestyle, to an operational definition by a national entity, to certified products, or even the narrative of a brand. This way, he illustrates how meanings sought in language, texts, photographs, and other media are inevitably a result of past actions and experiences and can even anticipate future outcomes. With co-creation as the underlying concept in the “It’s more fun in the Philippines” campaign, it involved various actors and stakeholders that not only created content, but also selected, authorized, and disseminated. Analyzing representations of the Philippines within this campaign and how their meanings are transformed across different stakeholders and contexts allows a good grasp of “the developer’s intentions, the consumers’ interpretations and the interactions among them” (Herbert, 2001, p. 317). 4. Methodology Milner (2012, p. 11) describes memes as “multimodal artifacts where image and text are integrated to tell a joke, make an observation, or advance an argument”. Internet users can create, recreate, produce and reproduce different variations of one image which allows it to be a “quintessential participatory artefact” that is “open, collaborative, and adaptable” (Milner, 2012, p. 12). Huntington (2013, p. 1) argues that internet memes are “a form of representational discourse that subverts dominant media messages to create new meaning”. As such, analyzing memes “requires an understanding of representational conventions associated with specific groups or individuals” (Milner, 2012, p. 90). These representations are best understood by taking a constructivist approach as it takes into account that interpretations are “not constructed in isolation, but against a backdrop of shared understandings, practices, language, and so forth” (Schwandt, 2003, p. 197). With co-creation behind the “It’s more fun in the Philippines” campaign, the outcomes reflect different contextual situations produced by different worldviews, experiences, and realities experienced by the different actors and stakeholders. Taking a constructivist paradigm for this study allows the researchers to delve into materials constructed by the different actors and stakeholders who took part in the campaign. Hall (1997) notes two approaches to analyzing different representations that are exemplified in memes—semiotics and discursive approach. Semiotics , as an interdisciplinary study of signs, is rooted in “how meanings are made and how reality is represented (and indeed constructed) through signs” (Chandler, 2018, p. 2). Signs may refer to images, verbal language, texts, and other media of communication that can symbolize parcels of realities, worldviews, and perceptions (Jensen, 2015). Chandler (2018) further explains that signs play a mediating role in constructing social realities and as such, it is through these signs that perceptions and realities are expressed. On the other hand, discourse analysis deals with language-in-use or how “meaning is constructed and interpreted” in different settings through the written and spoken language (Bhatia, Flowerdew, & Jones, 2008, p. 1). However, the digital world has now more than ever enabled people to communicate beyond the written and spoken language. Kress and van Leeuwen (1996) argues that textual information is not necessarily at the essence of constructing meanings. Iedema (2003, p. 33) emphasizes further that the “blurring of boundaries among different semiotic dimensions of representations” needs to bring about a multimodal approach to discourse to better understand the interplay of signs across multiple modes of communication. This multimodal approach allows the researchers to delve both into the semiotics and language-in-use”. The memes selected for analysis contain images of older adults and are mainly categorized into memes released by DOT and those that are generated by internet users. Memes released by DOT are taken from the official Facebook page of the DOT (www.facebook.com/ DepartmentOfTourism) and the official Facebook page of the campaign (www.facebook.com/itsmorefuninthephilippines) that DOT also handles. On the other hand, internet user-generated memes were scoured on Google Images using keywords “It’s more fun in the Philippines” combined with words such as “aging”, “old age”, “old people”, and “growing old” to extract memes that have older adults as subjects or are relating to older adults. The original link of the photo is also followed if still available and contextualized to the post when applicable. In addition, the memes must also follow the guidelines released by DOT. This should include a word or a phrase that describes the image followed by the phrase “More fun in the Philippines”. The font used must be Harabara Mais and divided into two lines with only the word “Philippines” in the second line (Department of Tourism, 2012b). However, some of the memes released by DOT remain undisclosed whether they are produced by DOT or by internet users. A total of 6 memes are analyzed, where 3 are released by DOT and 3 are searched from Google Images. The memes are analyzed in three parts: the image, the accompanying text, and the relationships between the two. The images are broken down to its subject and stylistic conventions to capture how older adults are portrayed visually in the memes. The accompanying texts are then explained as to the references made in the image. The relationships are then analyzed by describing the context and underlying discourses.

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Essay on Tourism In The Philippines

Students are often asked to write an essay on Tourism In The Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

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100 Words Essay on Tourism In The Philippines

The beauty of the philippines.

The Philippines is a beautiful country with many islands, beaches, and mountains. It is a popular tourist destination for people from all over the world.

The Friendly People of the Philippines

The people of the Philippines are very friendly and welcoming. They are always willing to help visitors and make them feel at home.

The Delicious Food of the Philippines

The food of the Philippines is delicious and unique. There are many different dishes to choose from, and they are all made with fresh ingredients.

The Affordable Prices of the Philippines

The Philippines is a very affordable country to visit. The cost of food, accommodation, and transportation is very reasonable.

The Many Things to See and Do in the Philippines

250 words essay on tourism in the philippines, tourism in the philippines: a land of beauty and diversity.

The Philippines is a beautiful country with rich history, culture, and natural resources. It is a popular tourist destination for people all over the world. The country has many beautiful beaches, lush rainforests, and unique wildlife. Tourists can also enjoy the warm hospitality of the Filipino people.

Natural Wonders

The Philippines is home to some of the most beautiful natural wonders in the world. The country has over 7,000 islands, each with its own unique landscape. Some of the most popular tourist destinations include Boracay, Palawan, and Bohol. These islands are known for their white-sand beaches, crystal-clear waters, and lush rainforests.

Cultural Heritage

The Philippines has a rich cultural heritage that dates back centuries. The country is home to many different ethnic groups, each with its own unique traditions and customs. Tourists can learn about the Filipino culture by visiting museums, attending festivals, and trying the local cuisine.

Outdoor Activities

The Philippines is a great place for outdoor activities. The country has many hiking trails, biking trails, and water sports. Tourists can also enjoy swimming, snorkeling, and scuba diving.

The Philippines is a beautiful country with something to offer everyone. Whether you’re looking for a relaxing beach vacation, an adventure-filled jungle trek, or a cultural experience, the Philippines is the perfect destination for you.

500 Words Essay on Tourism In The Philippines

So much to see, so much to do, beaches and islands.

The Philippines is home to some of the most beautiful beaches in the world. From the white sand beaches of Boracay to the turquoise waters of Palawan, there’s a beach for everyone. You can also explore the many islands that dot the archipelago, each with its own unique charm and beauty.

Mountains and Rainforests

For those who love the outdoors, the Philippines has plenty to offer. The country is home to some of the highest mountains in Southeast Asia, including Mount Apo and Mount Pulag. There are also many rainforests to explore, where you can see a variety of plants and animals, including monkeys, snakes, and birds.

Culture and History

Food and nightlife.

The Philippines is known for its delicious food, which is a blend of Asian and Western influences. You can find everything from traditional Filipino dishes like adobo and kare-kare to international favorites like pizza and pasta. The country also has a vibrant nightlife scene, with bars and clubs to suit every taste.

A Warm Welcome Awaits

The people of the Philippines are known for their warm hospitality and friendliness. They’re always willing to help tourists find their way around and to make their stay as enjoyable as possible. So come and experience the beauty and diversity of the Philippines for yourself. You’re sure to have a memorable vacation.

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Beautiful Places in the Philippines

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Cultural value of "bayanihan", background of the study, significance of the study, scope and limitations of the study, conclusion of the study.

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How does the Philippines envision tourism after the pandemic?

The Philippines | Tourism

Tourism played a central role in the Philippines’ economic development in the years leading to 2020, and an increasing emphasis on sustainability and responsibility underscores the sector’s importance for the years to come. While the popular island of Boracay has long drawn tourists, local authorities continue work to diversify destinations through the creation of tourism enterprise zones (TEZs). These endeavours, as well as those aimed at widening source markets, have laid the groundwork for an expanded yet more tailored offering.

Although the Covid-19 pandemic had a negative effect on the sector and the economy as a whole in 2020, policymakers and stakeholders are looking to adapt the sector’s offering and prioritise domestic tourism to support the national recovery. Enhanced health and safety measures have been implemented to align hotels, tourism sites and other services with the demands of the new normal. Meanwhile, a shift towards digitalisation and the use of technology to upskill the workforce are readying the sector for the future.

Structure & Oversight

The Department of Tourism (DOT) is the sector’s main regulator and also markets the Philippines as a destination via its overseas offices. While international arrivals were banned for much of 2020 due to Covid-19 restrictions, these branches are expected to be key to reviving international tourism once international restrictions are eased. Meanwhile, the Tourism Promotions Board (TPB) is responsible for designing promotions and marketing campaigns. In 2019 the TPB began new programmes to market alternative destinations such as Pampanga, Southern Cebu, Samar and the Bangsamoro Autonomous Region in Muslim Mindanao.

The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) – which operates under the auspices of the DOT – works to drive investment in designated areas through fiscal and non-fiscal incentives such as six-year income tax holidays. Created in 2009, it also develops, manages and supervises tourism infrastructure projects, as well as designing, regulating and supervising TEZs. There are five TEZs: Bucas Grande, a 167.7-ha area in Socorro, Surigao del Norte; the Amorita Resort in Panglao, Bohol; Aton Land and Leisure in Negros Occidental; the Magikland Cultural Zone inside Aton Land and Leisure; and the King Dome Stadium in Davao. TIEZA is also looking to develop tourism clusters, with different areas of the country focusing on specific segments. “Clark could be an appealing destination for business and shopping tourists from China and other Asian markets, while remote islands can be attractive to European and other western markets,” Pocholo Paragas, COO of TIEZA, told OBG. “It is not possible to base all tourism on ecotourism; there has to be variety, and clusters are a promising way of facilitating diversification,” he added.

The DOT’s National Tourism Development Plan (NTDP) 2016-22 is the framework that guides the industry’s development. It aims to encourage sustainable and socially responsible tourism. It identified 20 tourism clusters around the country, each including priority tourism development areas. It was designed with the aim of almost doubling tourism revenue from P2.1trn ($41.8bn) in 2015 to P3.9trn ($77.6bn) in 2022, while also increasing the number of inbound visitors from 5.4m to 12m. “It is important to prioritise some products and services in order to reach the NTDP’s goals of improving access, developing the product and protecting the environment,” Aileen Clemente, chairman and president of travel service provider Rajah Travel, told OBG. The roadmap also aims to boost the sector’s competitiveness on a global scale. In 2019 the Philippines ranked 75th out of 140 countries in the World Economic Forum’s travel and tourism competitiveness index, up from 79th in 2017. It performed best on price competitiveness (24th), natural resources (36th), and human resources and the labour market (37th).

Visitor arrivals had steadily increased since the implementation of the NTDP’s baseline of 5.4m in 2015. The country welcomed 6m visitors in 2016, above the plan’s target of 5.9m, with 6.6m arriving the following year, above the targeted 6.5m. However, in 2018 visitor arrivals fell short of the targeted 7.4m, totalling 7.1m. This was largely attributed to the closure of Boracay, one of the country’s most popular destinations, between April and October in order to rehabilitate the island from the effects of unchecked development, overburdened wastewater facilities and overpopulation. Upon reopening, measures were put in place to prevent future damage, including a maximum allowance of tourists and workers, and strict environmental accreditation procedures. Arrivals bounced back in 2019, surpassing the NTDP’s target of 8.2m to reach almost 8.3m – a 15.2% increase. The Philippines’ most popular destination for foreign arrivals in 2019 was the newly reopened Boracay, which hosted 1.6m foreign guests, according to the DOT; followed by Cebu, with 1.4m; and Davao del Sur, with 1.3m.

Covid-19 was an understandable setback for the NTDP’s goal of 9.2m foreign visitors in 2020. In late March the country closed its borders to most foreign arrivals, with exceptions for the spouses of citizens, diplomats, airline crew and holders of certain special long-term visas. In the first seven months of 2020 arrivals dropped by 73%, from 4.9m to 1.3m. Pandemic-related lockdowns also imposed restrictions on business operations and domestic travel, limiting the potential for local travellers to make up for international visitors. Tourism revenue similarly fell by 72% year-on-year (y-oy) to P81bn ($1.6bn) as a result. While the country is expected to remain closed to most foreigners through mid-2021, in October 2020 the Inter-Agency Task Force for the Management of Emerging Infectious Diseases ordered a technical working group to review the ban on foreign arrivals. Exemptions and other issues remained under discussion as of late 2020.

Looking ahead, a July 2020 survey of around 250 businesses in tourism-related segments by PwC found that 79% of respondents were optimistic about a recovery by mid-2021, while 21% expected a longer time frame. PwC similarly forecast that international arrivals would bounce back in the medium term, from an estimated 3.9m in 2020 to 6.2m by 2024.

Hotel Infrastructure

As visitor arrivals grew over the 2010-19 period, hotel infrastructure expanded by an average of 2000 hotel rooms per year – with around 2800 rooms completed in 2018. While real estate consultancy Colliers initially expected 6870 new hotel rooms to come on-line between 2020 and 2022, for an average of 2300 rooms per year, this projection was revised downwards in light of the pandemic. Nonetheless, even after hotel room construction slowed to 375 rooms in the first half of 2020, the agency noted in August that it still expected 1725 rooms to enter the market by the end of the year.

Hotel performance similarly reflected rising visitor numbers, with the average hotel occupancy rate countrywide reaching 72% in 2019, before falling to 50% in April and May 2020 amid Covid-19-related restrictions ; full-year occupancy is expected to drop to 30%. Continued air transport disruptions are likely to affect the segment for some time, with Colliers forecasting occupancy rates will hover below 50% through 2021. Meanwhile, average daily room rates in Metro Manila are expected to fall by 30.4% from $79 in the second half of 2019 to $55 by the end of 2020.

Spending, Employment & Investment

The rise in visitors in recent years saw higher expenditure, with tourism spend reaching P3.7trn ($73.6bn) in 2019, up 12.1% from P3.3trn ($65.6bn) in 2018. Domestic tourists contributed the majority, at P3.1trn ($61.7bn), while foreign visitors spent P548.8bn ($10.9bn). These totals were considerably higher than the previous year, up 10.7% and 23.2%, respectively. Tourism revenue also rose, reaching a record $9.3bn, up 20.8% from $7.7bn in 2018. Higher levels of spending and revenue had a trickle-down effect, increasing the number of jobs in the sector from 5.4m to 5.7m, with 14% of employed Filipinos working in tourism-related industries.

Investors, in turn, were attracted to the burgeoning market. Investment from the private and public sector reached P663.2bn ($13.2bn) in 2019 – P569.1bn ($11.3bn) of which came from private investment and P94.1bn ($1.9bn) from the government – according to figures from the Philippine Statistics Authority. Government spending on tourism grew by 23.5% over the year, highlighting the sector’s importance to economic development. Indeed, tourism contributed 12.7% to GDP in 2019, up from 12.3% in 2018 and 11.7% in 2017. Tourism direct gross value added reached P2.5trn ($49.7bn), 10.8% above 2018’s figure of P2.2trn ($43.8bn).

Source Markets

Even as the number of travellers to the Philippines rose, the composition of visitors remained relatively consistent. South Korea has been the top source market since 2010, with nearly 2m visiting in 2019, comprising 24% of all tourists. These figures were up from 1.6m visitors and 22.7% of all arrivals in 2018. Visitors from China – the second-largest source market – also rose, from 1.3m in 2018 to over 1.7m in 2019, increasing from 17.6% to 21.1% of the total. Other major source markets are the US, with 1.1m visitors and 12.9% of the total, Japan (683,000, 8.3%) and Taiwan (327,000, 4%). Of the top-12 markets by volume, China was the fastest growing in 2019, with visitor numbers expanding by 38.6%, followed by Taiwan (35%), South Korea (22.5%) and Germany (12.7%).

Domestic Tourism

With an eye on reopening and recovery, in early September 2020 the government announced a gradual resumption of domestic tourism starting in October. “The year 2021 will be about local tourism,” Bernadette Romulo Puyat, secretary of tourism, told local press. Under the plan, domestic travel bubbles were created within specified regions to facilitate travel while adhering to health mandates. The popular island of Boracay, however, was opened to all domestic tourists, with travellers required to show a negative Covid-19 PCR test result and a confirmed booking with an accredited establishment. The government also encouraged Filipinos to take staycations in local hotels in some low-risk areas starting in May, gradually expanding to areas under general community quarantine (GCQ) – characterised by a lifting of the stay-at-home order, the resumption of limited public transport and the reopening of some establishments – in October. In mid-October it was also announced that some hotels in areas under GCQ, or the more relaxed modified GCQ, would be permitted to return to 100% operational capacity – subject to DOT approval and based on hotel compliance with safety guidelines.

Indeed, the volume of local tourists could even offset the loss of foreign tourists, according to a September 2020 report from the Asian Development Bank (ADB): around 8m Filipinos travelled abroad in 2018, exceeding the 7.1m international arrivals. In a positive sign for tourism players, 77% of 12,000 respondents to a DOT poll released in June reported a willingness to travel domestically upon the easing of restrictions. Participants stated a preference for destinations closer to home, although Boracay, Siargao and Baguio were also named as top destinations. With regard to priority tourism activities, beach trips ranked highest, selected by 69% of respondents as a likely reason for travel, followed by road trips (54%) and staycations (41%).

Health & Safety

Integral to the DOT’s efforts to reopen to both domestic and international tourists is ensuring health and safety; however, some hard-hit players have voiced concerns about their ability to finance the necessary changes to enable social distancing and enhance sanitation. To facilitate these alterations, in June 2020 the DOT and the Board of Investments (BOI) announced the approval of incentives to help entities upgrade and modernise tourism facilities to ensure the health of customers. Included in these incentives was a BOI-led, three-year income tax holiday, with the list of eligible project types including barriers and deionisers in transport, as well as the renovation of rooms and the installation of partitions, automatic doors and elevators, thermal scanners and ventilation in hotels. The DOT also issued new health-related guidelines for accommodation facilities, with protocols launched in late May for activities such as guest handling; housekeeping; food and beverage services; kitchen sanitation and disinfection; transport; and the treatment of symptomatic guests. In June the DOT and the Department of Trade and Industry issued recommendations for restaurants, such as advisories for delivery services, sanitation, and employee and customer health. As the country moved to reopen domestic tourism, in September the DOT issued rules for beaches and other island operations. Under the guidelines, visitors must present bookings at an accredited establishment upon arrival, with walk-in guests prohibited unless they are part of an organised day tour or present a return ticket for the same day.

The DOT worked to align its health-related protocols with international standards. In late September 2020 the World Travel & Tourism Council (WTTC) gave the department the SafeTravels Stamp, certifying it complied with global health standards. This enabled the DOT to grant the stamp, in turn, to hotels, airlines, restaurants, tour operators, attractions and transport that follow the WTTC’s health and safety protocols.

Government Assistance

In response to Covid-19, President Rodrigo Duterte signed the first national stimulus package, the Bayanihan to Heal as One Act, into law in late March. The legislation, supported with P275bn ($5.5bn) of funding, granted the president emergency powers to address the pandemic.

The Bayanihan to Recover as One Act, or Bayanihan 2, was signed by President Duterte in mid-September 2020 and provided a further P165.5bn ($3.3bn) to aid recovery. This package specified a P10bn ($198.9m) allocation for the tourism industry and micro-, small and medium-sized enterprises (MSMEs). MSMEs comprise around 99.9% of all accommodation and food service businesses, and will therefore be instrumental in the recovery of the tourism sector. Some P6bn ($119.3m) of this sum was designated for a loan programme: DOT-accredited MSMEs and businesses licensed by local government units will be prioritised for no-collateral, interest-free loans, payable in three years with a one-year grace period. P3bn ($59.7m) of the remaining assistance was earmarked for financial aid for displaced and unemployed tourism workers, with the remaining P1bn ($19.9m) for road infrastructure improvements.

The DOT has altered its marketing strategies to reflect the new reality. In April 2020 it launched the Travel from Home campaign, encouraging potential travellers to explore destinations virtually – including virtual backgrounds of top travel spots for video calls. The following month, it launched the Wake Up in the Philippines campaign, featuring videos from all 16 regions, 360-degree underwater virtual tours and instructional cooking videos from well-known Filipino chefs, to continue the promotion of local destinations. These campaigns followed the relaunch of It’s More Fun in the Philippines in 2019, which crowdsourced photos and videos to promote new travel destinations and highlight the importance of sustainable tourism.

Like much of the economy, the pandemic prompted the tourism industry to digitalise. In addition to marketing and online expos embracing trends like virtual meetings, in September 2020 the DOT digitalised its accreditation system, which certifies that enterprises adhere to minimum standards and environmental regulations. The portal handles accreditation requests, contactless transactions and government services, and features real-time application status notifications and online payments. The gateway aims to ease the burden on MSMEs, which often lack the resources of larger companies. There were 10,042 accredited tourism enterprises by mid-September, marking a 32.4% increase y-o-y, according to the DOT.

Technology is also being used to upskill tourism workers to enable them to capitalise on post-pandemic opportunities. In April the DOT launched an online training programme to help stakeholders manage pandemic-related challenges, aiming to enhance the quality of tourist services by analysing previous performance and unlocking the full potential of human capital.

Technology has also been used in the meetings, incentives, conferences and exhibitions (MICE) segment. In late September 2020 the 19th Philippine Travel Exchange was held virtually, with 161 Filipino tourism service providers, 124 customers and 350 delegates in attendance. Participants from Africa, Europe and South America, as well as players from the region, signed into the online platform to generate P4.5m ($89,500) worth of future bookings. Highlighting the importance of the segment, in July the DOT announced it would allow MICE events in certain areas, at 50% capacity, with safety measures such as distanced seating, wide aisles and pre-packaged individual meals.

While 2020 proved to be a challenging year for tourism, the Philippines’ push to encourage domestic travel and staycations could provide a short-term cushion. Meanwhile, efforts to improve infrastructure and adjust to the new normal are readying hotels, tour operators and other service providers for the eventual return of international guests, expected in 2021.

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THE EFFECT OF TOURISM IN THE ECONOMIC, CULTURAL AND SOCIAL DEVELOPMENT OF THE PHILIPPINES

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International tourism has become an important industry in many developing countries. Fully aware of the potential contributions of an expanding tourism industry to economic growth and development, the Philippines embarked on an intensified tourism development. The economic benefits of the tourism industry have been generally measured in terms of tourist arrivals and foreign exchange generated by the industry. These measurements provide only a partial picture of the total economic effects of tourism. The study on the impact of international tourism on the Philippine economy has been conceived in order to reveal the interrelationships of the tourism sector with various production sectors of the economy and assess its direct, indirect and induced effects. The study drew heavily upon input-output analysis as a tool to ascertain whatever benefits there are to be derived out of an expanded tourism industry.

The measurement of the contribution of tourism to the Philippine economy is most difficult because of the unique nature of the industry and the inherent limitations present in the national data bases. However, the study was able to present an assessment of the substantial contribution of international tourism to the Philippine economy which could serve as guide to government planners in formulating policies and programs beneficial not only to the tourism industry but for the entire Philippine economy.

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