impacts of tourism in the philippines

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Exploring the Economic Impact of Tourism on the Philippines

As the pandemic eases, the Philippines opened tourism again in 2022 which will likely serve to boost the economy in coming years.

As the Philippines go through multiple changes adapting to the digital era, the pandemic, and administration changes within the government, there have been challenges in how tourism would move forward in 2022 and the succeeding years. Specifically, there is an urgent need to adopt policies in the tourism industry that drive economic recovery as it will help minimize the adverse effects of the pandemic.

For instance, the government now allows incoming, vaccinated foreign visitors to utilize quarantine waivers instead of a previously mandatory quarantine period. This trend will likely become more prominent in the next two years as international travel to the Philippines will become more frequent.

Such a development is positive for the Philippine tourism industry as it will entice foreign travelers. Likewise, other industries will also benefit as the entry of foreigners will introduce a new market to cater to. Specifically, sectors like retail, food and beverage (F&B), and hospitality will benefit the most from the influx of visitors. To further bolster this predicted growth, the tourism sector should seek to collaborate with closely related industries by creating package deals that cater to the end-to-end needs of visitors, like hotel accommodation, transportation services, tours, etc.

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WTTC’s Latest Economic Impact Report Reveals Significant Recovery in the Philippines Travel & Tourism Sector in 2021

Travel & Tourism jobs in the Philippines increased by 20.5%

Fourth fastest Travel & Tourism GDP growth rate for any country in the world in 2021

MANILA, Philippines: The World Travel & Tourism Council’s latest Economic Impact Report revealed last year the Philippine’s Travel & Tourism contribution to the nation’s economy climbed 129.5.% year on year, to reach US$ 41 billion.

Following an 80% decline, this impressive rise saw it ranked as the world’s fourth fastest growing economy during 2021.

News of the sector’s growing revival from the pandemic was revealed today by Julia Simpson, President & CEO of the World Travel & Tourism Council ( WTTC ), which represents the global Travel & Tourism private sector, at its prestigious Global Summit in the Philippines.

It was delivered in the capital, Manila, before more than 1,000 delegates from across the global Travel & Tourism sector, including CEOs, business leaders, government ministers, travel experts and the international media.

WTTC’s Economic Impact Report (EIR) for the Philippines shows that in 2021, the sector supported 7.8 million jobs, representing a substantial 20.5% rise in 2020, compared with a global increase of 6.7%.

Before the pandemic, the Philippines Travel & Tourism sector’s contribution to GDP was 22.5% of the total economy (worth US$92.6 billion). However, due to damaging travel restrictions it then plunged by 80.7% to a mere US$ 17.8 billion, dropping to just a 4.8% share towards the country’s GDP.

But in 2021 this rose to US$ 41 billion, representing a 10.4% share of the nation’s total economy, which signals the recovery of the sector is well underway.

The latest EIR also takes a forward look at the sector with the global tourism body forecasting that the Philippines Travel & Tourism contribution to GDP will grow by 6.7% over the next decade, exceeding the expected country's overall economy average growth rate of just 5.6%.

Julia Simpson, WTTC President & CEO, said: “Our latest EIR for the Philippines signals the astonishing recovery of the country’s Travel & Tourism sector.

“Resulting in a massive employment boost for the sector, leading to the recovery of 1.3 million more jobs compared to the previous year. Our expert analysis shows that the economy has turned a corner and is firmly on the road to recovery.”

As a result, WTTC forecasts that the Philippines Travel & Tourism contribution to GDP could be worth in excess of US$ 155 billion in 2032, accounting for 21.4% of the whole economy.

With Travel & Tourism employment forecast to grow annually by an average of 3% over the next 10 years, nearly three million new jobs could be created, accounting for 21.5% of all jobs in the Philippines.

WTTC’s 2022 EIR marks a vast change in fortunes for the embattled Travel & Tourism sector in the country, which was left reeling by the impact of the pandemic but is now firmly on the road to recovery.

Download the press release .

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Hospitality Industry

Overtourism: Lessons from Boracay Island, The Philippines

July 16, 2019 •

5 min reading

In 2018, so-called overtourism has begun to emerge as a serious and dangerous phenomenon. Various cities, cultural heritage sites, recreational areas and islands have been affected by this phenomenon. Overtourism is often associated with extremely crowded tourism destinations and has become a topic of great concern for all stakeholders. According to the UN World Tourism Organization , ‘overtourism’ is: the impact of tourism on a destination, or parts thereof, that excessively influences perceived quality of life of citizens and/or quality of visitors’ experiences in a negative way . As a result, tourism experts are—by and large—at a loss as to how to cope with both the increasing tourist numbers and tourism’s multifaceted impacts on these destinations.

Boracay Island shut to visitors for rehabilitation

Boracay Island, in the Philippines, is an excellent example of this phenomenon. Tripadvisor named Boracay one of the top 25 most beautiful beaches in the world and the 7 th in Asia. The tiny—a mere 10km2!—island hosted over 2 million tourists in 2017, a ratio of 66 tourists for every resident . Tourism became so present on the island that an unusual decision was taken by the Philippines' President Dutarte in April 2018. He decided to close Boracay for six months. Using the President’s own words, the island had become a cesspool that needed immediate action from political authorities.

What led to this situation?

As previously mentioned, Boracay had become one of the most visited tropical islands in Asia. Nevertheless, rampant tourism growth, dating back to the 1970s, resulted in unplanned infrastructural and tourism management practices. Until the 1990s, the island’s visitors tended to be individual backpackers. The economic benefits they generated led, however, to increasingly intensive tourism dynamics (e.g., hotels and restaurants were built) but also growing quality-of-life aspirations from residents.

In addition to the intensification of tourism activities and poorly planned environmental infrastructure, the negative socioeconomic impacts on the indigenous population contributed to Boracay becoming both uncontrolled and uncontrollable. Pollution, partly due to the lack of a proper sewage system, became a major issue on the island. At some beaches, for instance, the water contained faecal coliform (e. coli) levels that were 47 times higher than the acceptable levels. This posed serious health risks for locals and tourists alike.

A new tourism strategy

The sudden decision to shutter the island for tourism in February 2018 was very harsh for the locals who depend heavily on tourism. The main idea behind the decision was to use the hiatus to clean up the environment, improve hotels’ sewage treatment systems, and to develop a tourism strategy that guarantees a sustainable future for the island. Hence, Boracay re-opened on October 26, 2018 with a new strategy that intends to restrict tourism to make it more sustainable.

These rules are as follows:

Quota on tourist visits based on the island’s carrying capacity (only 6,405 tourists per day can land on the island).
New regulations regarding tourists’ attitudes and behavior (e.g., smoking and drinking alcohol are forbidden on White beach, the most visited beach on the island)
New regulations regarding locals’ attitudes and behavior (e.g. raising pigs or chickens for a living is forbidden).
Only the hotels compliant with the requirements of the Department of Environment and Natural Resources and the Department of the Interior and Local Government, and accredited by the Department of Tourism, can open again. Tourists can only come to the island if they reserve a room at one of these hotels.
All hotels must be connected to a proper sewage treatment system.
Road widening project to resolve congestion issues.
Trash and unauthorized buildings will be removed from the wetlands.
Buildings within 30 meters of the shoreline will be destroyed.
Gambling is forbidden on the island.

These regulations, assuming compliance is widespread, should enable tourism on Boracay Island to become more sustainable. But what has really happened since the reopening?

Towards a more sustainable Boracay Island?

It seems to be working for the time being. These limits on Boracay Island have resulted in more sustainable tourism practices since its reopening in October 2018. Compliance with the maximum carrying capacity has been satisfactory and the Civil Aeronautics Board issued, in April 2019, a reminder to the airlines asking them to follow the government’s visitor limit. Only 353 establishments are allowed to provide accommodations, which is much lower than before the closure in April 2018. Tourism demand is being met without exceeding the infrastructural carrying capacity of the island. In April 2019, the Department of Tourism launched the campaign #MoreFunForever, promoting a brand of tourism that is far more sustainable and inclusive.

The lone caveat however has been the government’s failure to provide a solution for the workers and residents who lost their jobs after October 2019. The protest movement, We Are Boracay, composed of mostly vendors, tricycle drivers, masseuses, tour guides and other workers in the informal sector, calls for solutions from the government.

If the political decision of closing the island works, other destinations might take it as an example to follow. With 1.4 billion international tourist arrivals in the world in 2018, an increasing number of destinations face or will face the phenomenon of overtourism.

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References:

Burgos, N. P. (2015). Oil, grease decreasing in Boracay but they exceed standards–DENR. URL: http://newsinfo.inquirer.net/671458/oilgrease-decreasing-in-boracay-but-they-exceed-standards-denr-2 . Retrieved on 27.5.2019

De Vera, A. (2019). DOT lists 353 accommodation establishments in Boracay.

UNWTO. (2018). ‘Overtourism’? Understanding and Managing Urban Tourism Growth beyond Perceptions. Retrieved from: https://www.e-unwto.org/doi/pdf/10.18111/9789284420070

UNWTO. (2019). International tourist arrivals reach 1.4 billion two years ahead of forecasts. Retrieved from: http://www2.unwto.org/press-release/2019-01-21/international-tourist-arrivals-reach-14-billion-two-years-ahead-forecasts

Zabal, B. R. B. (2018). Boracay still among top 25 beaches in the world. Retrieved from: https://www.rappler.com/life-and-style/travel/ph-travel/197300-boracay-beach-top-world-tripadvisor-2018

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Impact of COVID-19 on the Philippine Tourism industry

Introduction.

Without a doubt, the tourism industry is among the sectors that have been greatly affected by the COVID-19 pandemic. The closing of borders, airports, and hotels as well as restrictions on mass gatherings, land travel and related services across the world put around 100 to 120 million jobs at risk, as estimated by the World Tourism Organization.

In the first quarter of 2020, the period when the travel restrictions and lockdowns in most countries started, international tourist arrivals declined by 22% resulting in an estimated loss of US$80bn in global tourism receipts. In such period, 97 destinations have totally or partially closed their borders for tourists, 65 destinations have suspended international flights totally or partially, and 39 destinations were implementing the closing of borders (i.e., banning the arrivals from specific countries).

International tourist arrivals by region in Q1 2020

In the Philippines, the government closed the airports in Luzon on 20 March as part of the Enhanced Community Quarantine (ECQ) that started in the island on 16 March. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. In other countries, travel restrictions and measures have started as early as January of this year, and have impacted the Philippine international tourist arrivals. Domestic tourists, on the other hand, also limited their travel for fear of contracting COVID-19. The Department of Tourism reported that international tourist receipts in the first quarter of the year declined to PHP85bn, 36% lower than the revenues in the same period last year.

To understand the impact of COVID-19 on the Philippine tourism industry, PwC Philippines, together with the Department of Tourism, surveyed 247 decision makers across the different subsectors in May 2020.

Forty-four percent of the respondents are from the tourism services sector (i.e., travel agencies, bookings, tours, etc.), and 34% are from the accommodations sector. According to the survey, 97% say that COVID-19 has the potential for significant impact on their business operations, and is causing them great concern. Such finding is not surprising given that only businesses related to essential services and products were the only enterprises allowed to operate during the ECQ. Because of the low demand and restrictions, majority of the respondents say that they temporarily stopped offering a service/product, reduced their level of operations, and reduced the employee headcount.

Over 70% of the respondents belong to the tourism services and accommodations subsectors

Tourism-related businesses have opted to temporarily stop offering their products/services during the ecq, either due to restrictions or low demand, impact of covid-19 outbreak on the philippine tourism industry.

Given the travel restrictions and closure of businesses, 88% of the respondents expect losses of over 50% of their 2020 revenues. Sixty-three percent of the respondents also say that they expect their businesses to normalize within six months to over a year. Such findings are worrying because the tourism industry contributed 12.7% of the country’s GDP in 2019, and provided 5.71 million jobs in the same year.

Globally, the World Travel and Tourism council estimated that it could take up to ten months for the industry to recover.

Nine months since the virus was first detected in China, there is still no sign that the spread is slowing down. The road to recovery can take longer than initially anticipated. Fitch forecasts that tourist arrivals and tourism receipts will not go back to pre-COVID levels even five years hence.

The country had a stellar performance in 2019 with 8.3 million tourist arrivals and PHP550.2bn in international tourism receipts. Latest estimates show that 2020 tourist arrivals and international tourism receipts will go down to 3.9 million and PHP279.5bn, respectively.

Note: f - forecast Source: Fitch

Recovering from the pandemic

To help recover from the pandemic, 78% of the respondents say that they need up to PHP5m in additional funding to help normalize their operations. Majority say that they need such funds for working capital requirements, marketing fund to rebuild their brands, and refinancing.

With 91% of the respondents coming from the micro, small, and medium enterprises (MSMEs), it’s not surprising that 73% are planning to avail of government grants and subsidies to help revive their operations.

Many businesses are banking on government subsidies and grants as additional funding

Sources of funds to be obtained in the next 3 to 6 months, most businesses need funding to normalize their operations. it will be mainly used for working capital, and marketing and promotions. , around 78% need up to php5m in additional funding to normalize their operations after ecq, over 50% of the respondents plan to use their new funding to support working capital requirements, and rebuild their brand, mitigating the impact of covid-19.

To help businesses and individuals mitigate the impact of COVID-19, the country’s House of Representatives approved House Bill 6815 or the proposed Philippine Economic Stimulus Act (PESA) in June 2020. Once passed into law, an economic stimulus package amounting to PHP1.3 trillion will be provided in the next four years to fund the COVID-19 testing, wage subsidies, and assistance to MSMEs. Under the bill, PHP58bn will be appropriated to DOT-accredited tourism enterprises for the following programs:

Interest-free loans or issuance of loan guarantees with terms of up to five (5) years for maintenance and operating expenses
Credit facilities for upgrading, rehabilitation, or modernization of current establishments or facilities to be compliant with new health and safety standards
Marketing and product development promotions and programs
Grants for education training, and advising of tourism stakeholders for new normal alternative livelihood programs
Utilization of information technology
Other relevant programs, including infrastructure to mitigate the economic effects of COVID-19 on the tourism industry

Restarting the tourism sector

With the absence of revenues, majority of the respondents say that they can only sustain their operations for up to six months. Similarly, most of the respondents have a cash runway of up to six months.

How to restart the tourism sector after COVID-19 is one of the top questions leaders across the world are asking. In fact, 79% of the survey respondents say that they expect international tourist arrivals to decline by over 50% in 2020. A respondent shares, “I hope that the government and the Department of Tourism will be able to come up with a clear bounce back program immediately so the stakeholders may be able to make business decisions.”

Government assistance is needed to help businesses survive the impact of the pandemic

Many tourism-related businesses can sustain their operations and cash up to 6 months only., how the government can help tourism-related businesses.

While the government is currently reviewing the possible financial assistance that may be provided to the tourism players. According to our respondents, access to customers, reasonably-priced consultants, and suppliers as among their top needs to have sustainable businesses after the ECQ.

In other countries, some of the initiatives to help restart tourism are as follows:

Funding to engage customers and maintain mindshare.
The Singapore Tourism Board (STB) has launched a US$20m Marketing Partnership Programme.
STB has also launched the SG Stories Content Fund of US$2m
Online training to upskill workers
Tools to accelerate digital transformation
Go To Campaign - the government will subsidize half of domestic travel costs of up to ¥20,000 per night and issue coupons that can be used at souvenir shops and elsewhere
Creating attractive stay content for diversifying customers, etc.
For Japanese consumers who purchased domestic travel products during the period via travel agents etc., coupons equivalent to 1/2 of the price (including accommodation discounts, coupons, and usage coupons for local products, restaurants, facilities, etc.) are given
Project to develop the capacity of entrepreneurs and personnel in tourism to improve the quality of service and build confidence for tourists
CCTV installation in important tourist attractions to maintain the safety of tourists in Chiang Mai, Surat Thani, Krabi, Chonburi and Phuket provinces
Project to promote and upgrade tourism operators to Thai tourism standards
Project to promote the development of accommodation for tourism in the community

The industry expects a significant decline in international tourist arrivals, and almost all consider insuring their businesses for pandemics

International tourist arrivals are expected to dramatically decline in 2020., including pandemics as part of insurance coverage.

of respondents say pandemics should be included in the coverage

Insuring businesses for any eventualities/crisis that may arise

of respondents consider insuring their businesses for crises events such as COVID-19 pandemic

Getting back in flight

The Philippines has beautiful islands that will once again attract the tourists after the pandemic. Nevertheless, the country should take this opportunity to rebuild the sector by helping the players upskill and digitalize, rethink the way they do business, and ensure compliance with safety and health standards. Promoting medical tourism and agri-tourism may be among the programs that the country can prioritize to help restart the sector.

While the Philippines is experiencing difficulties at this time, Filipinos should remember that through combined efforts and hard work in the past, the country was able to grow the tourism sector, and made it one of the top GDP contributors. With the country’s renewed commitment, Filipinos can be confident that that the tourism industry will achieve better success after this pandemic.

While tax incentives and removing barriers to financing are relevant, access to customers is the top need of the industry players

Apart from financing, majority consider access to customers as a vital component in keeping a sustainable business after the ecq, top government interventions the businesses wish to receive.

Tax incentivized business
Removing barriers to accessing financial support
Loan grants
Generate a platform for the promotion of MSMEs
Loan guarantee scheme that creates modest value
Provide a program for entrepreneurs to take up service oriented activities
Create a program for startups
Capacity building seminar

The prize and the price: Tourism’s effects on the Philippines

A faint blip on the radar. That was the small, sleepy town of Coron in Palawan before tourism transformed it into a buzzing destination.

Coron’s image as a tropical paradise has become viral, probably rivalling the reputation of the ever-popular Boracay Island in the Visayas. Home to the photogenic Kayangan Lake, which is touted the cleanest and most beautiful inland body of water in the Philippines, Coron has reached iconic status after figuring prominently in the government’s tourism promotion efforts in recent years.

Unsurprisingly, investors and tourists came in droves, bringing with them jobs, paved roads, modern infrastructure, and endless opportunities for growth.

The Palawan Provincial Tourism Office (PTO) reported approximately 1.2 million foreign and domestic tourists in 2016. This is 15 percent higher than the previous year’s figure. Among the most visited areas are Palawan’s capital city Puerto Princesa, El Nido, Coron, and Brooke’s Point.

On the national level, increases in tourist arrivals and tourism receipts have been making an impact on the economy. In 2016, tourism contributed 8.6 percent to the total gross domestic product (GDP). The figures for tourism direct gross value added (TDGVA) amounted to PhP 1,243.5 billion in 2016, higher by 13.7 percent than the previous year’s PhP 1,093.4 billion. [Figures are based on the results of the Philippine Tourism Satellite Accounts (PTSA) compiled and released by the Philippine Statistics Authority (PSA) on 08 June 2017.]

Inbound tourism expenditure, or the expenditure of non-resident visitors (foreign visitors and Filipinos permanently residing abroad) within the country, increased by 2.3 percent in 2016, from PhP 306.6 billion in 2015 to PhP 313.6 billion in 2016.

On the other hand, domestic tourism expenditure, or the expenditure of resident visitors within the Philippines (either as a domestic trip or part of an international trip), jumped by 19.1 percent, from PhP 1,770.7 billion in 2015 to PhP 2,108.2 billion in 2016.

Tourism-related industries employed an estimated 5.2 million in the country in 2016, contributing 12.8 percent to the total employment in the country.

Such is the golden transformative power of tourism.

A sleepy town no more, Coron, like many other hailed tourist destinations, is wide awake. Fortunately, while Coron is now welcoming foreign and local tourists with open arms, it does not do so blindly.

“Coron is not Bikini Bottom”

This year, plans to build a Nickelodeon-branded, 400-hectare resort and underwater theme park in Coron made headlines. Environmental and civil society organizations and the Tagbanua tribes living in the area fiercely protested, and with good reason. The untarnished Coron, with all its pristine lakes, lagoons, beaches, and diving spots, is quite a sight to behold.

Despite the Pinoy audience’s fondness for Spongebob Squarepants and other Bikini Bottom dwellers from child-friendly channel Nickelodeon, an online petition against the “world’s first undersea attraction and Nickelodeon’s first resort in Southeast Asia” gathered over 260,000 signatures.

As of August 22, Viacom International Media Networks (VIMN) and Nickelodeon already announced that it had decided with developer Coral World Park (CWP) “to discontinue the IP licensing agreement” for the planned infrastructure.

The people have spoken, loud and clear: Spongebob’s Bikini Bottom is not welcome here.

Had the project pushed through, it would have affected something far more than just a beach bum’s paradise, an adventure seeker’s latest travel destination conquest, or an investor’s golden egg-laying goose. The proposed park would have put the entirety of Coron — a place of utmost ecological and cultural importance — in jeopardy.

Despite successfully stalling the Coron project, the Marine Wildlife Watch of the Philippines said conservation groups and concerned citizens will remain vigilant.

Another group, Save Philippine Seas, urged the local government of Palawan and the project proponents to direct investments instead to programs that boost marine biodiversity and marine protected areas, provide sustainable livelihood for local communities, and conduct environmental education activities.

Understanding ecotourism

Progress does matter. Tourism does matter. However, so does the environment.

In Richard W. Butler’s “Tourism, Environment, and Sustainable Development” in the Environmental Conservation journal (1991), it was pointed out that despite tourism’s dependence on the environment, “the prevailing lack of knowledge, responsibility, and long-term planning has often resulted in development which is neither environmentally nor culturally sympathetic to the host area and community.”

In recent years, efforts have been made to make tourism a sustainable tool for the conservation and protection of bio-cultural diversity, as well as inclusive community development. The International Ecotourism Society (TIES) is one of the staunchest advocates for “responsible travel to natural areas that conserves the environment and improves the well-being of local people.”

Ecotourism is about uniting conservation, communities, and sustainable travel through activities that “minimize impact, provide positive experiences for both visitors and hosts, and generate and direct financial benefits for the empowerment of the local people and the conservation of the environment.”

Ecotourism activities further “build environmental and cultural awareness and respect, help raise sensitivity to host countries’ political, environmental, and social climates, and recognize the rights and spiritual beliefs of the Indigenous People in the community.”

The best way to minimize the negative effects of tourism on the environment? Find the right combination of compromise and judicious planning and management.

Butler insists tourism is dynamic and complex. He also says that a deeper understanding of its nature and relationship to the environment as well as responsible planning and management are crucial. “Coordination of policies, pro-active planning, acceptance of limitations on growth, education of all parties involved, and commitment to a long-term viewpoint, are prerequisites to the successful linking of tourism and sustainable development,” writes Butler.

The price of irresponsible tourism

Progress is good. Tourism that contributes to progress and development is good. Unfortunately, it is the environment that pays dearly for over-development and irresponsible tourism.

More people visiting these tourist destinations means a greater need for electricity, water and other resources, which get rapidly depleted when left unchecked. The need for space and to build structures also means the displacement of local residents, flora, and fauna to give way to land and coastal development.

Additionally, more tourists means more waste, more noise, and more pollution, all of which could disturb the ecological balance in the area.

Among the many examples of these are the overcrowding of Sagada (due to its fairly recent, media-fueled surge in popularity as a tourist destination) and the harmful effects of ignorant and irresponsible tourism on the whale sharks of Oslob.

It is important to understand that tourism in itself certainly isn’t a bad thing. However, tourism initiatives and tourist destinations evolve and change over time. This makes it important for us to evolve as well – as tourists, as local residents, and as the ultimate guardians of our natural resources.

While we welcome tourism and the development it brings, we must also know when to recognize its limits — and to fight for those limits when necessary. — MF

References: Palawan registers over 1.1M tourists in 2016. http://www.pna.gov.ph/articles/994366 Contribution of Tourism to the Economy is 8.6 Percent in 2016. https://psa.gov.ph/tourism-satellite-accounts-press-releases Viacom to no longer pursue Nickelodeon resort in Coron. https://www.rappler.com/science-nature/environment/179640-viacom-no-pursue-nickelodeon-resort-coron The International Ecotourism Society. http://www.ecotourism.org Butler, R. (1991). Tourism, Environment, and Sustainable Development. Environmental Conservation, 18(3), 201-209. doi:10.1017/S0376892900022104. https://www.cambridge.org/core/journals/environmental-conservation/article/tourism-environment-and-sustainable-development/D3301F83A7BA477CC79BDBB900C6800F

Cover photo credit: dayanne crisologo.

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Author: Faye de Jesus

Faye de Jesus is a freelance writer and communications specialist with over 15 years of experience in corporate messaging and branding, PR, media and stakeholder relations. She volunteers for education- and learning-centered projects and likes sharing her love for books, reading, and learning with children.

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This article also features in The Report: Philippines 2021 . Read more about this report and view purchase options in our online store.

Tourism From The Report: Philippines 2021 View in Online Reader

Tourism played a central role in the Philippines’ economic development in the years leading to 2020, and an increasing emphasis on sustainability underscores the sector’s importance for the coming years. While the popular island of Boracay has long drawn tourists, local authorities continue work to diversify destinations through the creation of tourism enterprise zones. These endeavours, as well as those aimed at widening source markets, have laid the groundwork for an expanded yet more tailored offering. Although the 2020 Covid-19 pandemic heavily impacted tourism, Philippine 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. This chapter contains an interview with Aileen Clemente, Chairman and President, Rajah Travel.

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The global tourism industry has been hit hard by the Covid-19 pandemic, as border closures and travel restrictions prevented tourists from venturing overseas. In emerging markets such as the Philippines the slump in international tourism took a heavy toll on local communities that depend on the industry for their livelihoods, as well as starved these countries of a vital source of foreign exchange. Tourism generated P4.7trn ($93.5bn) for the Philippine economy in 2019 and supported nearly…

Ensuring resilience: Aileen Clemente, Chairman and President, Rajah Travel, on making changes to support the sector’s recovery OBG plus

Interview:Aileen Clemente In what ways has the government supported travel and tourism operators during the pandemic? AILEEN CLEMENTE: The Department of Tourism (DOT) provided adequate guidance to travel and tour operators on the day-to-day situation, and on government programmes that could assist tourists and tourism enterprises affected by the Covid-19 pandemic. At the same time the DOT engaged the Tourism Congress of the Philippines, which is the private sector body for tourism, in preparation…

Greener pastures: Governments in Asia Pacific are working to protect top destinations from overdevelopment and environmental damage OBG plus

Tourism in the Asia-Pacific region has seen impressive growth in recent years, aided by cheaper air fares, an expanding consumer class and increased exposure brought about by improved internet connectivity. Although these developments have led to significant economic benefits for countries across the region, they have also had some negative consequences, particularly for the environment. Around 133.1m visitors travelled to ASEAN countries in 2019, up from 129.2m in 2018 and 125.7m in 2017.…

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Tourism industry in the Philippines - statistics & facts

Domestic tourism leading the industry in times of uncertainty, outlook of the tourism industry, key insights.

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Economic impact

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Inbound tourism

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Tourist arrivals Philippines 2023, by country of residence

Leading source countries of foreign tourist arrivals in the Philippines in 2023 (in 1,000s)

Expenditure value in inbound tourism Philippines 2021-2022, by type

Total value of expenditure in inbound tourism in the Philippines in 2021 and 2022, by type (in billion Philippine pesos)

Number of inbound overnight tourists Philippines 2012-2021

Number of inbound overnight visitors in the Philippines from 2012 to 2021

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Domestic tourism

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Total number of domestic tourism trips in the Philippines from 2012 to 2021 (in millions)

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Number of domestic passengers in the Philippines in 2023, by airline (in 1,000s)

Household expenditure share of domestic tourism spending Philippines 2012-2022

Domestic tourism expenditure as a share of household final consumption expenditure in the Philippines from 2012 to 2022

Domestic tourism expenditures Philippines 2012-2022

Total value of domestic tourism expenditures in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Domestic tourism expenditures Philippines 2020-2022, by product

Total value of expenditure in domestic tourism in the Philippines from 2020 to 2022, by product (in billion Philippine pesos)

Outbound tourism

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Number of international tourist departures in the Philippines from 2014 to 2029 (in millions)

Outbound tourism expenditures Philippines 2020-2022, by segment

Total value of expenditure in outbound tourism in the Philippines from 2020 to 2022, by segment (in billion Philippine pesos)

Expenditures on accommodation services in outbound tourism Philippines 2012-2022

Value of expenditures on accommodation services for visitors in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Expenditures on food and beverage services in outbound tourism Philippines 2012-2022

Value of expenditures on food and beverage serving services in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

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Accommodation

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Maximum overnight room rate of hotels in Metro Manila in the Philippines as of June 2023, by city (in Philippine pesos)

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

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Rebooting Philippine Tourism from the COVID-19 Pandemic

Revitalizing tourism activities has become one of the primary concerns for the Philippines. In the short run, domestic tourism is expected to play a vital role in supporting the initial recovery phase of travel. With its presumed impact on travelers’ behavior and business operations, an analysis of the Filipino travelers’ sentiments and the existing domestic travel market is necessary in presenting effective strategies in the midst of the new normal in Philippine travel.

Introduction

The Philippine tourism economy has been heavily hit by the measures implemented to contain the spread of COVID-19. The pandemic has prompted an unprecedented crises with projections and revised scenarios suggesting that the shock in global tourism could be at 60-80% for the entire 2020, translating to a loss of approximately 67 million international arrivals or USD 80 billion in exports from tourism, while putting 100 to 120 million direct tourism jobs at risk. While affecting all economies, the Asia-Pacific region has been projected to suffer with the highest impact, affecting about 33 million arrivals (United Nations World Tourism Organization [UNWTO], 2020).

Tourism is a significant pillar in many economies in the region, especially in the Philippines, where in 2019, it contributed 12.7% share in the country’s GDP, and employed 14 out of 100 or 5.7 million of Filipinos (Philippine Statistics Authority [PSA], 2020). Following the outbreak of the pandemic, estimates for the first three months of 2020 suggest that revenue from foreign arrivals decreased by 35%, and employment in the industry may be reduced by about 33,800 to 56,600 (CGTN, 2020). Several months into the implementation of stay-at-home and quarantine policies, travel in the Philippines remains uncertain. Travel restrictions and limits in people-to-people interactions are likely to be in place for a long period of time, thus bringing the industry to a standstill.

With the expectation that domestic travel will recover faster than international tourism, insights on the possible strategies that can help bootstrap the Philippine tourism economy should be discussed. Critical to this approach is an understanding of the Filipino travelers’ sentiments towards travel and a marketing analysis which scrutinizes ways to revive travel demand and resume operations in the face of the new normal in tourism. This article will look into the variety of conducted surveys regarding travel perceptions and will reintroduce the concept of space travel to guide the creation of strategies towards travel in the new normal.

Redefining Travel in the New Normal: The Filipino Travelers’ Sentiments

In these times of uncertainty in the outlook of travel in the Philippines, a data-driven approach to support the revival of the industry has become an imperative. During the period of March to May 2020, several public and private organisations deemed it necessary to conduct surveys to understand stakeholders’ perceptions on travel in relation to the pandemic. Given mobility restrictions, surveys have been conducted online while targeting a range of stakeholders from enterprises, decision makers, to tourists. Conducted in varying time frames, general survey results suggest that travel sentiments might have evolved over periods of time. Insights on travel perceptions are necessary in crafting strategies for tourism recovery. Thus, consumer perception on the future of travel should be taken into consideration in planning interventions and strategies. Table 1 presents the surveys conducted in relation to travel and pandemic.

Photo credit: https://bit.ly/3ag2GUz

From the results of the surveys, several insights about the future of travel in the Philippines were made: First, domestic travel will be a priority. Travelers opt to either engage in land travel or air travel. Second, travelers will prioritise travel in rural, secluded, and natural areas once restrictions are lifted. Travel away from mainstream and overcrowded destinations are expected, although beach destinations are still considered ideal destinations post-pandemic. Furthermore, due to the restrictions imposed by the pandemic, travelers are now more open to digital travel experiences. Similarly, travelers are likely to choose customised travel experiences over packaged group tours. Third, health and safety protocols will be their number one priority once travel resumes. Thus, effective communication of safety measures and protocols implemented in destinations and enterprises will greatly influence travel choices. Perception towards the health and safety in travel will therefore predict where travelers will travel, when they will be traveling, and what kind of experiences they hope to obtain. Fourth, while domestic travel is expected to resume within four to twelve months after easing of travel restrictions, sentiments are primarily dictated by perceptions on public health and safety. Finally, given that the pandemic has affected people’s source of income and their personal finances, travelers seek more cost-effective experiences.

Re-Introducing Space Travel

As emphasised in the webinar entitled Space travel: A conversation on strategies to revitalize Philippine tourism post-COVID-19 ( https://www.youtube.com/watch?v=Zq-Co_DWg8E ) hosted by the AIM- Dr. Andrew L. Tan Center for Tourism last 28 July 2020, much has been said about the world getting smaller, we forget that the world is actually big. There are still so many places to explore and to visit, much to learn and to unlearn. Overcrowding (i.e., mass tourism ) is no longer an option because of the established physical/social distancing, health and safety protocols that require decongestion of tourist attractions. To care for earth by giving nature room to flourish, to give fellow travellers the room to breathe, to explore, to grow, to reflect and participate in the lives of others, and to give destination stakeholders time to recover from visitor activities is the essence of space travel . It is a literal practise of giving each other and the earth space.

Tourists who routinely return to familiar destinations are considered second home tourists . These tourists are in the best position to care for a destination because they are invested in this as their go-to place for sanctuary. On the other hand, for those who travel to experience destinations from a distance, risking the alteration of local behaviour and culture are deemed fishbowl tourists . By including activities that increase their involvement in local custom, rather than just mere observation can transform these tourists and their attitude towards travel. Those who immerse themselves and make their experience a journey is called the inspired travellers , who imbibe sustainable tourism when they protect and safeguard the earth by their conscious defence and accountability of environments and travel behaviour.

Until restrictions are lifted and travelling returns to normal, tourism needs to adjust and adapt to reflect the present restrictions, initiating a new way of serving travellers called transition tourism . This type of tourism distributes the business amongst many stakeholders – accommodations, transportation, alimentation, security, and sanitation – in small groups triggering a collaborative rebooting of a local economy in many areas. Thus, for space travel to take root, transition tourism must inspire fishbowl and mass tourists to become inspired travellers (see Figure 1).

By working together, stakeholders and travellers alike, in stimulating local economies as a tight organism is to think small . It reduces the unwieldiness of the task of re-booting economies and industries. When each one of us does our little bits, we can save our big world by thinking small.

Moving Forward: From Crisis Response to Recovery

Further discussions, through webinars, have been initiated among experts and stakeholders on rebooting Philippine tourism. In the webinar titled Bootstrapping Philippine tourism: Recalibrating our priorities during and after COVID-19 ( https://www.youtube.com/watch?v=3kNhIZqy92I ) hosted by the AIM-Dr. Andrew L. Tan Center for Tourism last 03 June 2020, the following discussions have been featured: best practices on how tourism industries recover from disasters; strategies on how tourism stakeholders can manage COVID-19’s impacts; and insights on resilient recovery from a disaster risk-reduction management lens and how these can be applied for tourism recovery efforts.

During the webinar, Aileen C. Clemente (President, Rajah Travel Corporation) highlighted the following lessons from the pandemic: “it takes a while for people to get from philosophical discussion to general frame working to actual implementation”; “those who had a lot of excuses not to implement what needed to be implemented have no choice but to now implement them; and “greed has been tempered”. From these, Clemente cited the four stages of recovery as per the World Travel & Tourism Council – managing and mitigating the crisis, restarting the sector’s operations, reaching recovery, and redesign for the new normal.

In line with this, Maria Cherry Lyn S. Rodolfo (Consultant, Department of Tourism) explicated that the tourism industry must have a calibrated recovery plan, in which domestic tourism should be given priority. That is, tourism authorities and enterprises must incessantly develop safety and health protocols that will ensure domestic travel is safe, secure, and seamless. Rodolfo also emphasised that the pandemic warranted the need for “strong, innovative, and responsive network” in moving towards recovery, reset, and resiliency. Rodolfo also highlighted the role of “cohesive and collaborative networks” in tourism reboot. There should be: call to action for inclusive recovery assistance, innovation, infrastructure, and institutional strengthening; community engagement in utilizing the resources of networks and in leveraging local with national and international networks; and a communication plan that will cascade tourism reboot strategies to both existing strong and weak networks in the industry.

In doing so, Clemente argued that in the new normal, repositioning product offerings, raising levels of service, defining world-class destination, re-examining consumption of tourism products and services, and increasing awareness about mass tourism are essential. Similarly, Lesley Jeanne Y. Cordero (Senior Disaster Risk Management Specialist, World Bank) stressed that in transitioning towards the new normal, there is a need to redefine tourist experience and destination management; invest in innovative and creative ways of product development; promote sustainability, inclusivity, and resiliency; recalibrate travel timelines, concepts, spaces and experiences; shift and share burden by collaborating with government, stakeholders, communities and tourists.

While information about the impact of the COVID-19 pandemic has already dominated discourses on tourism, only a few discussions have been made regarding strategies to accelerate tourism recovery. With tourism activities at a standstill, an opportunity to adapt new models for conducting tourism activities has opened. More than ever, the role of tourism stakeholders in transitioning to the new normal has become more apparent.

In addressing the question on how tourism can recover after the COVID-19 pandemic, we analysed existing data regarding travel perceptions and conducted a marketing analysis to identify ways to revive travel demand and operations in the new normal. Our analysis suggest that existing business models may have become obsolete, thereby needing adjustments and re-assessments. While travel restrictions remain, transition tourism takes place. Crucial at this period is considering travelers’ perceptions and sentiments. Following the findings in the various surveys conducted, travelers are expected to engage in tourism activities with health and safety as their priority, which further suggests their preference towards natural areas and uncrowded destinations, digital travel, and customised experiences.

Reflected by these findings is a paradigm shift in the future of travel—from fishbowl tourism to inspired travellers, which also tantamount to a shift from mass tourism to a more sustainable form of tourism. However, this shift does not occur without the collaborative rebooting of the local economy by using local tourism as a springboard. Thus, stakeholders need to work together, along with tourists, to create a tightly knit industry that fosters thinking small .

CGTN. (2020). Philippines Q1 tourism revenue dips 35% due to COVID-19. https://news.cgtn.com/news/2020-05-02/Philippines-Q1-tourism-revenue-dips-35-due-to-COVID-19-Q9MV8ZEnW8/index.html
Department of Tourism, Dr. Andrew L. Tan Center for Tourism, & Guide to the Philippines (DOT, ALTCFT, GTTP). (2020, June). The Philippine Travel Survey Report: Insights on Filipino Travelers’ Sentiments on the New Normal. Department of Tourism, Asian Institute of Management, Guide to the Philippines. https://guidetothephilippines.ph/ph-travel-survey .
Experience Philippines. (2020, May). How Filipinos view traveling after COVID-19 flattens? https://www.experience.ph/poll-how-filipinos-view-traveling-after-covid-19-flattens/ .
Filinvest Hospitality Corporation and Chroma Hospitality Inc. (2020, June). Domestic travel sentiment survey. https://indd.adobe.com/view/30521fd3-30fa-4ba2-b165-919e100569c3?fbclid=IwAR05IrayFDrJfKvoCfq5CDyzxcdawAra34OO_NuRXAidwU-JzXtcmYAsuO0 .
Tajara Hospitality and Horwath HTL. (2020, April). Hotel sentiment survey 2020 (Impact of COVID-19). https://cdn.horwathhtl.com/wp-content/uploads/sites/2/2020/04/Sentiment-Survey_Philippines_Hotels_Covid-Impact.pdf .
TwoEco, Inc. (2020). Philippine tourism after the pandemic. https://drive.google.com/file/d/1jw57pIvX0fh7l1y739HGk46COUOpRNFI/view.
Philippine Statistics Authority (PSA). (2020). Contribution of Tourism to the Philippine Economy is 12.7 percent in 2018. https://psa.gov.ph/content/contribution-tourism-philippine-economy-127-percent-2018
PwC Philippines. (2020, July). Impact of COVID-19 on the Philippine tourism indusry. https://www.pwc.com/ph/en/publications/tourism-pwc-philippines/tourism-covid-19.html .
United Nations World Tourism Organization (UNWTO). (2020). International Tourist Numbers could fall 60-80% in 2020. https://www.unwto.org/news/covid-19-international-tourist-numbers-could-fall-60-80-in-2020

Dr. Andrew L. Tan Center for Tourism

Impact Tourism
Impactful Tours

Impact Tourism in the Philippines

January 20, 2022 February 6, 2024

The Philippines has a lot of natural wonders that can excite and soothe the mind of travelers. Interaction with local people can also enrich travelers’ experience. To make sure that our travels have a net long-term positive effect on the people and places that we visit, we need to be mindful of the impact of our actions and avoid those that will damage the people and places that we visit. At DiscoverPhilippines.com, we give special attention to tours that make a positive impact to our society.To be classified as an Impactful Tour, it must be relevant in the following way:An Impactful tour must have activities that focus primarily on one or more of the following areas:- wildlife protection examples are: Eagle sanctuary, turtle sanctuary,

Nature conservation e.g. Palawan underground rivers
Disadvantaged group e.g. helps people living in remote areas
Pollution reduction e.g. sustainable farming”
Preservation of Culture e.g. immersion in the local traditional culture that is in danger of extinction

Contemporary Issues in Tourism Management in the Philippines

First Online: 28 September 2022

Cite this chapter

Richard S. Aquino 5 &
Brooke A. Porter 6 , 7

Part of the book series: Perspectives on Asian Tourism ((PAT))

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The Philippines is an emerging tourism destination in Asia. In the last decade, the country’s tourism industry has experienced significant growth in terms of international tourist arrivals and visitor receipts. While sustainable tourism has been institutionalised as a motor for national development, several issues challenging the sustainability and inclusivity of Philippine tourism exist in many destinations in the country today. This introductory chapter provides an overview of the contemporary management issues in Philippine tourism development. The discussion of these issues then articulates the intention and position of this volume. This chapter ends by outlining the intention, parts, and contributions in this volume.

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Tourism Sustainability in Indonesia: Reflection and Reformulation

The evolution of sustainable tourism in asia.

Sustainable Tourism Development and Strategies in Ukraine: Balancing Environmental, Social, and Economic Dimensions

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This unpopular tourism slogan was highly criticized, allegedly plagiarized from a previous Polish campaign, short-lived (Bosangit, 2014 ).

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Aquino, R.S., Porter, B.A. (2022). Contemporary Issues in Tourism Management in the Philippines. In: Aquino, R.S., Porter, B.A. (eds) Tourism in the Philippines. Perspectives on Asian Tourism. Springer, Singapore. https://doi.org/10.1007/978-981-19-4497-0_1

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GOLF TOURISM | Why it’s thriving in the Philippines

Arabelle Jimenez
June 15, 2024
4 minute read

The tropical climate of the Philippines provides year-round golfing opportunities. With its dry season from November to April offering ideal conditions for the sport, local and international golfers can escape colder climates to enjoy their favorite pastime in the sun.

Compared to other golfing destinations like Japan, South Korea, and the United States, the Philippines offers more affordable rates without compromising on quality. Golf packages often include luxurious accommodations, access to exclusive courses, and additional perks such as spa treatments and gourmet dining.

The Filipino people are known for our hospitality, making visitors feel welcome and valued. The country’s rich cultural heritage, with influences from Malay, Spanish, American, and Chinese cultures, provides a unique backdrop to any golf vacation. Golf tourists can also explore historical sites, festivals, and culinary delights, enriching their travel experience.

Prospects of Philippine Golf Tourism

Infrastructure Development

The Philippine government recognizes the potential of golf tourism as a driver of economic growth and is investing in infrastructure to support this sector. Upgrades to airports, road networks, and tourism facilities are underway, making travel more convenient for international visitors.

Sustainable Tourism Practices

There is a growing emphasis on sustainability within the golf industry. Many courses in the Philippines are adopting eco-friendly practices, such as using recycled water for irrigation and preserving natural habitats. This commitment to sustainability will appeal to environmentally conscious travelers and ensure the long-term viability of golf tourism.

Training and Development

To maintain high standards and enhance the visitor experience, investments in training programs for caddies, hospitality staff, and golf professionals are being prioritized. This focus on skill development will ensure that guests receive top-notch service and expertise.

Marketing and Promotion

Collaborations between the Department of Tourism and private sector stakeholders are enhancing the promotion of the Philippines as a golf destination. Participation in international golf expos and hosting major golf tournaments will increase visibility and attract a global audience.

One example was the recently concluded EastWest Bank Golf Invitational 2024 held at the Mimosa Plus Golf Course located in the Filinvest Leisure City in Pampanga. The EastWest Bank launched its new Business Class segment, which also kicks off its 30th Anniversary. This milestone event brought together business leaders, entrepreneurs, stakeholders, and relevant media from across the country for a day of golfing, networking, and celebration. The event focused on the enthusiasm for EastWest’s innovative offerings and future initiatives. 

One of the highlights of the event was the introduction of EastWest’s new Business Class segment, designed specifically for entrepreneurs and business owners. Norman Martin Reyes, SVP and Head of Marketing and Cash Management, elaborated on the unique offerings of Business Class, said, “Our new Business Class segment provides tailored financial solutions that allow business owners to focus on personal growth while we handle their operational tasks. From dedicated relationship officers to 24/7 banking through the EastWest Easybiz App, we’ve created a suite of services that cater to the dynamic needs of today’s entrepreneurs.”

Benefits of Golf Tourism

Economic Growth

Golf tourism generates significant revenue through spending on accommodation, dining, transport, and other services. It creates jobs in hospitality, maintenance, and retail sectors, contributing to local economies.

Environmental Stewardship

Golf courses often serve as green spaces that support biodiversity. By adopting sustainable practices, these venues can protect ecosystems and promote environmental awareness among visitors.

Cultural Exchange

Golf tourism brings together people from diverse backgrounds, promoting cultural understanding and exchange. This interaction enriches the experiences of both tourists and local residents, fostering a global community spirit.

Community Development

Many golf courses engage with local communities through outreach programs, providing education, healthcare, and employment opportunities. This fosters goodwill and ensures that tourism benefits are felt broadly.

A good example of community building is the fund raising event organized by The Pink Argonauts, which recently made its mark as the first of its kind in the golf and dive landscape. The event successfully gathered together golfers and divers to play for a cause. The golf tournament was held at Mount Malarayat Golf and Country Club in Lipa, while the diving segment was held at Aiyanar Beach and Dive Resort in Mabini, Batangas. The Pink Argonauts’ proceeds is currently funding the certification of aspiring boatmen, fishers, and other deserving locals to become Dive Masters and Dive Guides, which is managed by Marivic Maramot, Co-Founder of The Pink Argonauts.

The much-needed manpower to professionalize dive guides for tourists and dive enthusiasts coming from all over the world is emphasized. Tessa Neri, Co-Founder of The Pink Argonauts, pointed out, “Our golf tournament goes hand-in-hand in promoting marine conservation by educating and empowering the next generations of ocean advocates.”

With its beautiful courses, favorable climate, and warm hospitality, the Philippines is well-positioned to become a top golf tourism destination. By investing in infrastructure, promoting sustainable practices, and enhancing service quality, the country can attract a growing number of international golf enthusiasts. The benefits of this burgeoning industry extend beyond economic gains, contributing to community development, environmental stewardship, and cultural exchange. As the Philippines continues to develop its golf tourism sector, it stands to reap the rewards of a thriving, multifaceted industry.

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