Philippine Tourism Performance (Lesson 1) PDF

Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo Lesson 1 Philippine Tourism Performance: An Overview INTRODUCTION Tourism is a vital industry that plays a signi...

Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo Lesson 1 Philippine Tourism Performance: An Overview INTRODUCTION Tourism is a vital industry that plays a significant role in the Philippines. The country's abundance of natural beauty, including stunning beaches, sunny weather, and diverse biodiversity, makes it an attractive destination for travelers. Moreover, the Philippines' unique and vibrant culture, exemplified by its warm and hospitable people, flavorful cuisine, and distinct lifestyle, further entices visitors to explore the country. Over the past decade, the Philippine tourism industry has experienced substantial growth. While it has expanded considerably, it remains relatively smaller compared to the tourism sectors of other ASEAN neighbors. Generally, ASEAN countries have excelled in promoting and reaping economic and employment benefits from their tourism industries. Despite its size, the Philippine tourism industry continues to improve, thanks to various contributing factors. The government's active promotion of the industry has played a crucial role in its development. Additionally, ongoing improvements in airports, transportation systems, and other infrastructure have positively impacted the sector over the years. The purpose of this lesson is to provide learners with a comprehensive understanding and appreciation of the performance of Philippine tourism and its impact on the country. Furthermore, the lesson aims to explore how different global and national occurrences influence the achievements and challenges faced by the tourism industry. By delving into these topics, learners will gain valuable insights into the dynamic nature of the Philippine tourism sector and its interaction with broader contexts ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo LEARNING OBJECTIVES 1. To discuss the performance and impacts of Philippine tourism. 2. To compare and contrast the performance of Philippine tourism year on year. 3. To explain the global and national occurrences and how it impacts the tourism arrivals of the Philippine tourism. A. Tourism Arrivals The Philippines welcomed a record-breaking 7,127,168 foreign tourists in 2018, a 7.65% increase from the 6.62 million arrivals in 2017. This growth was above the 6% average tourism increase in Asia and the Pacific, as reported by the United Nations World Tourism Organization (UNWTO). Despite the temporary closure of the popular destination Boracay for rehabilitation, tourists were drawn to alternative destinations such as Siargao, Iloilo, Palawan, La Union, Romblon, and Siquijor. The Philippines' diverse tourism offerings, including its stunning beaches, rich culture, and natural wonders, continued to attract visitors from around the world. Tourist arrivals to the Philippines from 2018-2023 are as follows: Year Arrivals 2018 7,127,168 2019 8,260,913 2020 1,323,956 2021 163,879 2022 2,025,428 2023 5,450,598 The tourism industry's resilience and the government's efforts to promote alternative destinations contributed to the record-breaking numbers in 2018. The Department of Tourism (DOT) launched various campaigns, such as "It's More Fun in the Philippines," to showcase the country's diverse attractions and encourage visitors to explore beyond the popular spots.The Philippines' tourism sector has continued to grow ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo in recent years, with arrivals peaking at 8.26 million in 2019. However, the COVID-19 pandemic in 2020 and 2021 significantly impacted the industry, with arrivals dropping to 1.32 million and 163,879, respectively. In 2022, the Philippines began its recovery, welcoming 2.03 million visitors. The country further strengthened its tourism offerings in 2023, receiving over 5.45 million international visitor arrivals and surpassing its 4.8 million target. The Philippines remains optimistic about its tourism prospects, with the government investing in infrastructure development and promoting sustainable tourism practices. As the country continues to adapt to the post-pandemic landscape, it aims to attract more visitors and showcase its unique blend of natural beauty, rich culture, and warm hospitality. B. Philippine Tourism Growth from 2018-2023 The contribution of tourism industries to the Philippine economy, as measured by the share of Tourism Direct Gross Value Added (TDGVA) to the Gross Domestic Product (GDP), has fluctuated in recent years: In 2018, the tourism industry's contribution was estimated at 12.7% of GDP, with the TDGVA amounting to ₱2.2 trillion, a 14.3% increase from the previous year's ₱1.9 trillion. In 2019, the tourism industry's contribution reached its peak at 12.9% of GDP, with the TDGVA growing to ₱2.4 trillion. However, the COVID-19 pandemic severely impacted the tourism sector in 2020, with the TDGVA's share of GDP declining to 6.2%. In 2021, the tourism industry's contribution remained low at 4.8% of GDP. The sector began to recover in 2022, with the TDGVA's share of GDP increasing to 6.8%. In 2023, the tourism industry's contribution reached 8.6% of GDP, the highest growth since 2000, with the TDGVA amounting to ₱2.09 trillion, a 47.9% increase from 2022. ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo The tourism industry's performance is closely tied to the country's overall economic growth. The construction of more airports, seaports, roads, bridges, and rail networks has improved accessibility to tourism destinations, benefiting both foreign and domestic visitors. Despite the challenges posed by the pandemic, the Philippines remains optimistic about the tourism sector's potential. The government's efforts to promote sustainable tourism, enhance security measures, and address political and social issues have contributed to creating a more favorable environment for the industry's recovery and long- term growth. Year Tourism Contribution to GDP TDGVA (₱ trillion) | (%) 2018 12.7 2.2 2019 12.9 2.4 2020 6.2 - 2021 4.6 - 2022 6.8 - 2023 8.6 2.09 How did the Philippines achieve the Global Tourism Resilience Award? The Philippines was awarded the Global Tourism Resilience Award in 2023, recognizing the country's "global leadership, pioneering vision and innovation to overcome critical challenges and adversity" in the tourism industry. According to the search results, the Philippines is one of only five countries and destinations in the world cited for this inaugural award. The World Travel Awards, which presented the accolade, stated that the winners will serve as benchmarks for implementing best practices in tourism resilience. The Philippines' tourism industry has faced significant challenges in recent years, including the COVID-19 pandemic, which severely impacted visitor arrivals. However, the country has demonstrated remarkable resilience and innovation in navigating these obstacles. Some key factors that contributed to the Philippines winning the Global Tourism Resilience Award include: 1. Effective pandemic response: The Philippines implemented robust health and safety protocols to protect visitors and restore confidence in travel to the country. ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo 2. Diversification of tourism offerings: The country promoted alternative destinations beyond the popular spots, such as Siargao, Iloilo, and Palawan, to keep the industry afloat during the Boracay closure. 3. Infrastructure development: Investments in airports, seaports, roads, and other transportation networks improved accessibility to tourism destinations. 4. Sustainable tourism practices: The government and industry stakeholders focused on promoting sustainable and responsible tourism to ensure the long-term viability of the sector. 5. Innovative marketing and promotion: The Department of Tourism launched creative campaigns to showcase the Philippines' diverse attractions and resilience in the face of challenges. Related article: https://beta.tourism.gov.ph/news_and_updates/philippines-cited-for- global-tourism-resilience-wins-worlds-best-beach-dive-city-awards/ C. Tourism Employment Employment in tourism characteristic industries was estimated at 5.4 million in 2018 (out of the 41.2 millions of employment in the PH), higher by 1.8 % compared to 5.3 million in the previous year. Share of employment in tourism industries to total employment in the country was recorded at 13.0 percent in 2018. A “dollar” of new, direct tourism (both foreign and domestic) spending in any economy leads to more than a dollar of new output. The same economic expansion can almost be said in the case of employment. There is some larger impact on output and employment growth, something analogous to a multiplier, or a scale factor. Examples of indirect spending are those that include the purchase of aircraft and the construction of new hotels, government spending on supportive programs for tourism, domestic purchases of food and services of airlines and IT (information technology) services of travel agents. Induced expenditure is those directly or indirectly employed in the tourism industries. ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo In 2017, the tourism subsectors that posted the highest contribution to employment were passenger transport and accommodation and food and beverage, which accounted for 1.2 million and 1.7 million workers, respectively. There were only 35,000 jobs for travel agents, tour operators and tourism guides, which accounted for the smallest share in total tourism jobs. Meanwhile, employment in passenger transport grew 3.5 percent, while jobs in accommodation and food and beverage contracted 0.9 percent. D. Visitors to the Philippines The Philippines has experienced a remarkable resurgence in its tourism industry in recent years, with visitor arrivals steadily increasing from 2018 to 2023.According to the data, the top source markets for visitors to the Philippines from January 1 to December 12, 2023 were: 1. South Korea - 1,341,029 visitors 2. United States - 836,694 visitors 3. Japan - 285,655 visitors 4. China - 252,171 visitors 5. Australia - 238,487 visitors 6. Canada - 206,571 visitors 7. Taiwan - 186,140 visitors 8. United Kingdom - 141,516 visitors 9. Singapore - 140,633 visitors 10. Malaysia - 92,383 visitors This reflects the Philippines' growing appeal as a premier tourist destination, attracting visitors from both regional and long-haul markets.Looking at the broader tourism numbers from 2018 to 2023: 2018: 7,127,168 foreign tourist arrivals 2019: 8,260,913 foreign tourist arrivals ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo 2020: 1,323,956 foreign tourist arrivals (impact of COVID-19 pandemic) 2021: 163,879 foreign tourist arrivals (continued impact of pandemic) 2022: 2,025,428 foreign tourist arrivals (recovery begins) 2023: 5,450,598 foreign tourist arrivals (surpassing 4.8 million target) The Philippines' success in attracting visitors can be attributed to its diverse tourism offerings, from its stunning beaches and vibrant culture to its emerging destinations like Siargao, and Palawan. The government's efforts to promote sustainable tourism, enhance infrastructure, and adapt to the post-pandemic landscape have also played a crucial role in the industry's recovery and growth. As the Philippines continues to position itself as a premier tourist destination in the region, the tourism industry is poised to remain a significant contributor to the country's economic development and employment opportunities in the years to come. E. Visitor Receipts The Philippines' international tourism receipts surged to ₱482.54 billion (approximately $8.67 billion) in 2023, as the country welcomed over 5.4 million foreign tourists, exceeding its 4.8 million target for the year. According to the Department of Tourism (DOT), a total of 5,450,557 international visitors entered the Philippines from January 1 to December 31, 2023. Of these, 91.8% were foreigners, while the remaining 8.2% were overseas Filipinos. The tourism industry's performance in 2023 marked a significant recovery from the COVID-19 pandemic's impact. The Philippines' international tourism receipts have steadily increased in recent years: Year Tourism Receipts 2018 ₱482.15 billion ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo 2019 ₱482.15 billion (pre-pandemic record) 2020 ₱214.58 billion (pandemic impact) 2021 ₱189.29 billion 2022 ₱214.58 billion 2023 ₱482.54 billion South Korea remained the top source market, accounting for 26.41% of total arrivals with 1,439,336 visitors. The United States, Japan, Australia, and China rounded out the top five source markets The year 2023 is a win for the Philippine tourism industry as it welcomed more than 5 million international visitor arrivals. The Philippines has also reached an estimated 66% recovery rate for its all-time high international visitor arrivals achieved in 2019. Looking ahead, the DOT has set a target of 7.7 million international visitor arrivals for 2024, underscoring the industry's potential for continued growth and recovery. As a key economic driver, the tourism industry contributed 6.2% to the Philippines' Gross Domestic Product in 2022, with at least 2.65 million inbound foreign visitors. The government remains committed to promoting sustainable tourism and further developing the sector to drive economic prosperity and job creation. (Related article: PH records 5.45M int’l visitors in 2023. https://www.pna.gov.ph/articles/1216218) F. Global and National Occurrences Impacting the Philippine Tourism Readings: It’s More Fun in the Philippines? The Challenges of Tourism The Philippines boasts an array of captivating attractions that should make it a premier tourist destination - from its tropical islands and white sand beaches to its rich cultural heritage and friendly, English-proficient locals. However, the country has struggled to fully capitalize on these advantages, ranking only 50th globally in terms of foreign visitor arrivals, lagging behind regional neighbors like China, Thailand, and Malaysia. The article highlights several key challenges that have hindered the growth of Philippine tourism: ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo 1. Underinvestment: The tourism sector has suffered from a lack of adequate investment in infrastructure, facilities, and marketing efforts to promote the country's offerings. 2. Security concerns: Issues like terrorism and natural disasters have raised safety and security concerns for potential visitors. 3. Sustainability: There is a need to adopt more sustainable tourism practices to preserve the environment and ensure that local communities benefit from the industry's growth. To unlock the Philippines' tourism potential, the article suggests several strategies: 1. Developing high-quality, small-scale tourism offerings that cater to niche markets and provide authentic experiences. 2. Tapping into the Filipino diaspora, who can serve as ambassadors and drive repeat visits to their homeland. 3. Embracing regional approaches and community involvement in promoting heritage tourism at the local level. 4. Investing in tourism management education to build a skilled workforce and foster innovation in the industry. 5. Implementing sustainable tourism practices that balance economic growth, environmental protection, and community well-being. By addressing these challenges and capitalizing on its unique strengths, the Philippines can position itself as a premier tourist destination, driving economic prosperity and job creation while preserving its natural and cultural heritage. The article underscores the importance of a holistic, sustainable approach to tourism development, which will be crucial in unlocking the country's full potential in the years to come. Summary This chapter explored the key aspects of the Philippine tourism industry. The following are the breakdown of what you learned: ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University. Retrieved from: Philippine Culture and Tourism Geography Instructional Material By Dr. David John Apigo 1. Performance and Impacts: You delved into the overall performance of Philippine tourism, analyzing its contributions to the economy, society, and environment. This included understanding both positive and negative impacts, such as job creation, infrastructure development, cultural exchange, and potential environmental strain. 2. Year-on-Year Comparisons: You examined trends in Philippine tourism by comparing statistics like tourist arrivals, revenue generated, and popular destinations across different years. This comparative analysis helped you identify growth patterns, fluctuations, and potential reasons behind them. 3. Global and National Influences: You explored how external factors, both global and national, affect Philippine tourism. This could involve analyzing the impact of worldwide events like economic recessions, pandemics, or political unrest. You also considered how national policies, infrastructure development, and marketing strategies influence tourist arrivals. By understanding these aspects, you gained a comprehensive picture of the Philippine tourism industry, its strengths and weaknesses, and the factors that shape its success. Guide Questions for Discussion: 1. What are the strengths and weaknesses of the Philippines as a tourist destination? 2. How do the stakeholders address the challenges faced by the tourism sector in the Philippines? 3. What role does sustainable tourism play in the development of the tourism industry in the Philippines? 4. What is the importance of community involvement in promoting heritage tourism at the local level? 5. How can education institutions help prepare students for careers in the tourism industry, based on the insights provided in the article? ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University.