political issues of philippine tourism industry

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The impact of government failure on tourism in the Philippines

Wilfred s. manuela, jr..

a Leadership and Strategy Department, John Gokongwei School of Management. Ateneo de Manila University, Loyola Heights, Quezon City 1108, Philippines

Manuel J. de Vera

b Asian Institute of Management, Makati City, Philippines

While the Philippines aspires to be one of the top tourist destinations in Southeast Asia, self-inflicted wounds like the failure of the government to comply with international aviation safety standards may derail the country from achieving its goals. This article estimates the short- and long-term impact of the US FAA downgrade of the Philippine civil aviation system in 2008 and the EU ban of Philippine carriers in 2010 on tourist expenditures, arrivals, and length of stay using monthly time series data. The econometric model, consisting of three equations due to the endogeneity of the tourist arrivals and length of stay variables in the tourist expenditures equation, is estimated simultaneously using the generalized method of moments. The results indicate that the US FAA downgrade and the EU ban impact monthly tourist receipts negatively in the short term while the downgrade also impacts tourist expenditures in the long term. Moreover, the ban impacts length of stay negatively in the short and long term while the downgrade impacts length of stay negatively only in the long term. The substantial decline in tourism receipts from 2008 to 2010 despite an increasing trend in tourist arrivals is due to the shorter stay of tourists, indicating that high-spending tourists have not returned following the downgrade and ban.

1. Introduction

The tourism industry requires diligent and deliberate public policy attention as well as an implementation strategy for realizing sustainable economic benefits to a country. For an archipelagic country such as the Philippines that is blessed with beautiful, world-class beaches and coastal resources, tourism is vital to its overall socioeconomic development plan. Considered as part of a country's export industry—with importers as tourists visiting the country—tourism has the potential to unlock innumerable economic opportunities for a country: from increased foreign currency receipts to the generation of jobs from allied industries such as the hotel, entertainment, transportation, and food industries. Much of this promise though hangs on how government is able to address the safety and security issues of its civil aviation system, such as airports and airlines, which tourists and business travelers consider important.

Other than the expectations of tourists, however, airlines are as demanding in terms of security and safety of the civil aviation system, being equally responsible of how tourists and business travelers are brought from their country of origin to their destinations. The threat of hijacking, drug trafficking, and bomb scare in airplanes and airports are all very real for the air transport industry, especially after the September 11, 2001 terror attacks in the United States (US). In order to prevent these incidents, governments—on their own and in the interest of making air travel safer and more secure, have made investments to improve the security infrastructure and management of their civil aviation system. To verify whether improvements in the civil aviation safety standards are tenable and compliant with mutually-agreed civil aviation safety and security standards, the US Federal Aviation Administration (FAA) has taken on the role as verifier and arbiter of air transport safety standards and airport security outside the US, especially in countries and airports that service US airlines as well as those that service non-US airlines with flights to the US.

The objective of this paper is to examine whether the Philippine government's failure to comply with international aviation safety standards and the consequent downgrade by the US FAA of the Philippine civil aviation system from Category 1 to Category 2 in January 2008 and the European Union (EU) ban of Philippine carriers from European countries in April 2010 have had an impact on tourism demand in the Philippines, expressed as tourist expenditures (receipts), arrivals, and length of stay. A set of equations estimates the impact of the FAA downgrade and EU ban on tourist expenditures, arrivals, and length of stay in the short term while another set estimates the impact of the downgrade and ban on tourism demand in the long term.

2. Literature review

Economic impact studies on global tourism has mainly focused on terrorist attacks, outbreak of contagious diseases, armed conflicts and wars, and environmental disasters, either by natural calamities or by human negligence or accidents (e.g., oil spills, flooding and landslide caused by deforestation, mining activities that give rise to sinkholes, nuclear plant disasters) and how these events cause sudden shocks in the tourist arrivals and expenditures ( Ahlfeldt et al., 2009 , Araña and Leon, 2008 , Chang et al., 2009 , Cheng et al., 2011 , Daniel and Rodrigues, 2012 , Porter, 2011 ). Shocks to consumer confidence such as economic and financial crises and high unemployment rates in countries where most tourists to the Philippines originate may complicate the impact of the US FAA downgrade and EU ban on tourism demand although Gounopoulos et al. (2012) argue that macroeconomic shocks on the consumer confidence in tourists’ origin countries do not have a significant impact on tourism demand. Government failure as the source of negative impact on a country's tourism industry has yet to be explored and examined inasmuch as poorly designed and executed policies can cause deleterious effects to a country and to its tourism and related industries as a whole.

In the case of terrorist attacks Smyth et al. (2009) investigate whether or not such shocks have a temporary or permanent impact on tourist arrivals. Accounting for the Bali bombings in 2002 and 2005, Smyth et al.’s study reveals that tourist arrivals reverted to “pre-terrorist attack” levels and even fared better after some years, indicating that the effects of the shocks or terrorist attacks are short-lived and the resiliency of Bali's tourism industry. Narayan (2005) reports a similar case in Fiji where the negative shocks of coups in 1987 and 2000 only had a temporary effect on tourist expenditures while Kraipornsak (2011) argues that that negative shocks are insignificant compared with income elasticity or real personal income factor in explaining tourist arrivals in Thailand. These results corroborate the transitory impact of shocks, i.e., terrorism and political instability, on tourism demand in Israel and Egypt ( Aly and Strazicich, 2000 ).

The languishing number of tourist arrivals in the US, which in 2006, has yet to reach pre-9/11 tourist arrival levels, may be attributed to its strict visa requirements and entry procedures after 9/11, making the impression that the US is unfriendly to tourists, as well as the opposite policy and attitude of many countries such as Singapore, China and the EU, which eased their inbound travel restrictions to promote international travel to their countries ( Edmonds and Mak, 2006 ). While we do not consider the inability of the US in attracting more tourists as a case of government failure, Edmonds and Mak argue that the US would need better infrastructure in the processing of visas.

Hence, this study builds on the idea of government failure as a “shock” that negatively impacts the tourism industry. Winston (2006) defines “government failure” as the inability of government to intervene in an event or situation of market failure, thereby, creating inefficiencies and reducing economic welfare. Dolfsma (2011) elaborates on government failure by classifying how government issues rules which can be too specific, too broad, arbitrary, and in conflict with other rules that it has set out to address related issues.

We argue that government failure negatively impacts the tourism industry of the destination country and that its impact is comparable with the impact natural and environmental disasters, terrorism, contagious diseases, and war and conflict have on the tourism industry. The two external policy shocks, which resulted from the Philippine government's failure to comply with international civil aviation safety standards, originate from the policy decision of the FAA when the agency downgraded the Philippine civil aviation system to Category 2, and the EU, when its governing council banned Philippine carriers from its airspace. Without a coordinated response from the destination country, the external policy shocks translate into a government failure, affecting tourism demand in the destination country. The impact of external policy shocks on the tourism industry, however, has received little attention in the literature. This article seeks to improve our understanding of the impact external policy decisions have on the tourism industry of another country by examining the impact of the FAA downgrade and EU ban on tourist expenditures, arrivals, and length of stay using Philippine data.

2.1. Determinants of tourism demand

Tourist confidence, global economic growth, level of income, relative prices of goods and services among competing destinations, relative exchange rates between the country of origin and destination, and transportation costs are the major determinants of tourism demand ( Chan et al., 2005 , Lim, 1997 ), although “income is the most important driver of tourism demand, followed by price drivers such as the exchange rate and airfares” ( Tourism Research Australia, 2011 ). The GDP per capita of the Organisation for Economic Co-operation and Development (OECD) member countries has a positive and significant impact on tourism demand in Izmir, Turkey while a stronger Turkish lira, using relative exchange rates against major currencies, has a negative and significant impact on tourist arrivals ( Özlem Önder et al., 2009 ). Moreover, the GDP of the country of origin significantly and positively affects tourist arrivals to the Philippines while relative consumer price indices (CPIs) between the Philippines and the country of origin are insignificant ( Deluna and Jeon, 2014 ). Bronner and de Hoog (2012) argue that during an economic crisis some tourists tend to economize on certain “aspects of a holiday” rather than “giving up a holiday” altogether, indicating that there are limits to the impact of income on tourism demand.

A decrease in tourist arrivals may not necessarily result in a proportional decrease in tourist expenditures and tourist arrivals and receipts “may go in opposite direction[s]” ( Campos-Soria et al., 2014 ). The day of the week (e.g., weekdays, weekends, and long weekends) as well as the time of the year (e.g., winter, spring, summer, autumn, and long holidays) significantly impact tourism expenditures and summer holidaymakers tend to spend more ( Brida and Scuderi, 2012 ). The most significant variable in explaining tourist expenditures in the Republic of Korea is income, followed by the relative prices of tourism-related goods and services and relative exchange rates, while the 1988 Seoul Olympics and the 1990 oil price shock due to the Iraq–Kuwait War are insignificant ( Choong-Ki et al., 1996 ). Length of stay, measured as “[t]he number of nights spent at tourist accommodations” ( Lim, 1997 ) has a positive impact on tourist expenditures, while younger tourists and those with “negative opinions about their holiday experience” tend to spend less on their vacations ( Aguiló Perez and Juaneda Sampol, 2000 ).

The overall image (e.g., association with nature and the natural environment, climate and weather, unspoiled cultural heritage and remoteness) and reputation tend to increase length of stay while resort quality and price as well as the availability of tour packages and flights are insignificant in predicting length of stay in the Azores ( Gomes de Menezes et al., 2008 ). Moreover, social factors (e.g., personal and family characteristics of tourists) and economic variables (e.g., personal and family budget for travel and leisure, personal and family income, and prices of tourism destinations) as well as multiple-destination itineraries tend to result in longer length of stay ( Artal Tur et al., 2008 , de Oliveira Santos et al., 2014 ) while the income of tourists is significant in predicting length of stay specifically for low-cost tourism destinations where tourist price decisions are highly elastic ( Martinez-Garcia and Raya, 2008 ).

Given the definition of government failure in the previous section as well as the attendant issues of international tourism demand, the FAA downgrade and the EU ban point to a clear case of government failure in the arbitrary non-compliance of the Civil Aviation Authority of the Philippines with mutually agreed aviation safety standards. We consider both events as sudden shocks and we estimate their impact on tourism demand, consisting of tourist expenditures, arrivals, and length of stay, in the Philippines.

3. Empirical framework

We examine the impact of the FAA downgrade and EU ban on three outcomes: tourism receipts, tourist arrivals, and tourist length of stay. We argue that the downgrade and ban negatively impact tourism receipts, arrivals, and length of stay, at least in the short term, and test their impact on the tourism industry using two sets of equations. One set of equations tests the impact of these shocks in the short term while the other tests their long-term impact.

The equations for the short-term impact of the FAA downgrade and EU ban on tourism receipts, arrivals, and length of stay are specified as:

Short-term impact system of equations

where for each month t ,

The ‘tourism receipts’ variable includes the expenditures of foreign visitors on business and leisure trips as well as ethnic Filipinos that are citizens of other countries who enter the Philippines with foreign passports. The ‘tourists’ variable includes all foreign visitors as well as ethnic Filipinos who enter the country with foreign passports. The ‘stay’ variable measures the number of nights that visitors and ethnic Filipinos who use foreign passports spend at tourist accommodations such as hotels and resorts. The ‘internal’ variable represents domestic events such as the May 2001 kidnaping of tourists at the high-end Dos Palmas Resort in Palawan, the July 2003 Oakwood military mutiny in Metro Manila, the February 2004 Super Ferry bombing, the super typhoon Reming (international name Durian) that buried villages in the Bicol Region resulting in extensive loss of life, and other events that may discourage foreign visitors from traveling to the Philippines. The ‘external’ variable refers to international events such as the severe acute respiratory syndrome in Hong Kong in 2002 and 2003, the Bali bombings in October 2002, the December 2004 earthquake and tsunami, the July 2005 floods in Mumbai, the August 2005 Hurricane Katrina, the May 2006 Yogyakarta earthquake, the September 2006 coup d’état in Thailand, and other events that may impact international tourism.

Where for each month t ,

The Singapore dollar (SGD) is arguably the most traded currency among the national currencies of the Association of Southeast Asian Nations (ASEAN). We used the real exchange rate between the SGD and the Philippine peso (PHP) as proxy for the price competitiveness of tourism-related goods and services in the Philippines since the country competes with its neighbors for tourists and their expenditures. While the literature supports the use of CPIs as proxy for the price of goods and services that foreign visitors purchase, relative CPIs between the Philippines and the countries of origin of tourists are not significant in predicting international tourism to the Philippines ( Deluna and Jeon, 2014 ). Moreover, CPIs cannot be used as proxy for the price competitiveness of tourism-related purchases in the Philippines because the government measures CPIs as “changes in the price level of goods and services that most [Filipino households purchase] for their day-to-day consumption” ( Sta. Ana and Varona, 2004 ). Since international tourism and tourism-related purchases are considered luxury items ( Park et al., 2011 ), there is hardly any meaningful association between the tourist price index (TPI), which is not available, and what most Filipino households purchase for their daily consumption. Moreover, Lim (1997) reports that a number of “researchers argue that tourists respond to exchange rate movements when they make their decision to travel, because of limited knowledge” on local prices and the prices of competing goods and services. Thus, the real exchange rate is a better proxy for the TPI as well as the price competitiveness of goods and services that tourists purchase in the Philippines and in competing destination countries.

The increase in disposable income and its attendant lifestyle changes due to economic prosperity, not only in OECD member countries but also in emerging markets, invariably result in higher international tourism ( Chan et al., 2005 ). Income is the most frequently used explanatory variable for tourism demand ( Lim, 1997 ) and is one of the most significant determinants of tourism expenditures ( Choong-Ki et al., 1996 ). We use the GDP growth rate of OECD countries as proxy for the income variable because OECD member countries are the usual origin of international tourists to the Philippines, including ethnic Filipinos who enter the country with foreign passports.

The ‘daily expenses’ variable is a proxy to the expected average cost of stay per day in the Philippines on a particular month of the year, measured as the monthly tourism receipts divided by the number of foreign visitors for a particular month, regardless of country of origin.

The other variables are as defined in Eqs. (1) and (2) .

The FAA downgrade of the Philippine civil aviation system and the EU ban of Philippine carriers from EU skies should impact tourism receipts, arrivals, and length of stay negatively in the short term. There are limits to the short-term impact of the downgrade and ban, however, and this has to do with the sizeable number of ethnic Filipinos who live in other countries and have foreign citizenships. Ethnic Filipinos who enter the country with foreign passports are counted as international visitors and they travel between the Philippines and their adopted country regularly oblivious of the downgrade and ban that cast doubt on the safety of airline travel in the Philippines. Moreover, international visitors to the Philippines, including ethnic Filipinos, may take non-Philippine carriers to the country should they decide to avoid Philippine carriers and reduce their exposure to the “unsafe” civil aviation system. As the number of international gateways to the Philippines increase, more visitors may be able to avoid taking local airlines to reach their destinations, reducing the negative impact of the downgrade and ban on international tourism to the country.

Tourism receipts should increase with tourist arrivals and longer stays in the country, while the economic growth of OECD member countries, a proxy for income, should result in more tourists since higher disposable incomes tend to increase international tourism demand. If rising incomes shift international tourism demand to more expensive destinations, however, economic prosperity in OECD member countries may result in lower tourist expenditures, arrivals, and length of stay in the Philippines. The real exchange rate variable, PHPSGD, a proxy for the TPI, impacts tourist expenditures, arrivals, and length of stay in two ways. A stronger SGD against the PHP should result in higher tourism demand since the relative prices of tourism-related activities in the Philippines have decreased, encouraging more travel to and tourism activities in the country. A weaker SGD, making travel to and tourism-related activities in the Philippines relatively pricier for most visitors, should impact tourism demand negatively.

The equations for the long-term impact of the FAA downgrade and EU ban on tourism receipts, arrivals, and length of stay are specified as:

Long-term impact system of equations

We excluded the ‘internal’ variable from all three equations of the long-term impact system of equations because the variable is highly correlated with the variables of interest, the FAA downgrade and EU ban, resulting in multicollinearity.

All variables are as defined in Eqs. (1) , (2) , (4) .

While we expect that the FAA downgrade and EU ban have a short-term negative impact on tourism demand (receipts, arrivals, and length of stay) in the Philippines, the downgrade and ban may not have a negative impact in the long run if there are no major airline accidents in the country in the years following the downgrade and ban. If there are major accidents in the Philippine air transport industry, however, the downgrade and ban may have a long-term impact on tourism demand, as business and leisure travelers avoid the country and take their business or vacation elsewhere or travel to the Philippines at a later date when the downgrade and ban are lifted. The long-term impact of the downgrade and ban on international tourism to the Philippines may be moderated by the travel behavior of ethnic Filipinos with foreign citizenships who regularly visit the country and international visitors taking non-Philippine carriers to more international gateways in the country.

All variables are as defined in Eqs. (1) , (2) , (3) , (4) , and (5) .

4. Data and method

We collected and estimated monthly data for all variables in the two sets of equations from January 2000 to December 2012. The monthly tourist arrivals and average length of stay data come from the Department of Tourism (DOT). The monthly tourism receipts from January 2000 to June 2005 and 2007 come from the National Statistical Coordination Board of the Philippine Statistics Authority while the monthly tourism receipts for the periods July 2005 to December 2006 and 2008 to 2012 were estimated using the annual tourism receipts data collected by the DOT and the average monthly tourism receipts indices from 2000 to 2004. The monthly average real exchange rates come from the Bangko Sentral ng Pilipinas. We conducted internet searches for information on the FAA downgrade and EU ban.

Fig. 1 shows the monthly tourism receipts, Fig. 2 the monthly tourist arrivals, and Fig. 3 the monthly average tourist length of stay, including the linear equation of the monthly time series data from January 2000 to December 2012. The trend lines of monthly tourism receipts and tourist arrivals indicate that tourism demand (receipts or arrivals) is generally increasing from 2000 to 2012, in spite of the seasonal (monthly) fluctuation in tourism demand, the substantial decline in tourism receipts from 2001 to 2004 and 2008 to 2010, and the slight decline in tourist arrivals in 2001, 2003, and 2009, while the trend line of tourist length of stay is rather flat or slightly decreasing in the same period (refer to Fig. 3 ).

Monthly tourism receipts, January 2000–December 2012.

Monthly tourist arrivals, January 2000–December 2012.

Monthly average tourist length of stay, January 2000–December 2012.

The three equations for each system of equations in the empirical framework are estimated simultaneously, for more efficient estimators, using the generalized method of moments (GMM) based on the Newey-West covariance estimator due to the observed autocorrelation and heteroskedasticity in the time series data ( Angrist and Pischke, 2009 , Cameron and Trivedi, 2009 , Green, 1997 , Verbeek, 2000 ). The Newey-West estimator calculates consistent covariance matrices even when serial correlation and heteroskedasticity are present ( Cameron and Trivedi, 2009 , Johnston and DiNardo, 1997 ), while the GMM allows one to drop the assumption of homoskedasticity and apply White's estimator for heteroskedasticity of unknown form ( Greene, 1997 ). The estimation method uses two-stage least squares coefficients with GMM standard errors using an optimal weighting matrix ( Cameron and Trivedi, 2009 ), resulting in robust estimators and standard errors. Moreover, we used the fixed-effects model to estimate the econometric equations to control for any unobserved heterogeneity in the data and because the fixed-effects model yields robust estimators even when a number of time-invariant explanatory variables have not been included in the model ( Johnston and DiNardo, 1997 ).

We used similar instruments in the GMM estimation of the short-term and long-term impact systems of equations such as a vector consisting of tourist arrivals from OECD (North America and Europe) and ASEAN countries, a vector consisting of the GDP growth rates of OECD and ASEAN countries, a vector consisting of the official exchange rates of OECD and ASEAN countries, tourist daily expenditures, tourist length of stay, domestic shocks, and international shocks. We also used dummy variables such as the FAA downgrade long-term impact and the EU ban long-term impact as instruments for the short-term impact system of equations and FAA downgrade short-term impact and the EU ban short-term impact for the long-term impact system of equations.

We used the Sargan Test with a null hypothesis that “the over-identifying restrictions are valid” using the J-statistic, the value of the GMM objective function evaluated at the estimated coefficients multiplied by the sample size, and the chi-square test with m (number of instrumental variables) minus k (number of endogenous variables) degrees of freedom ( df ) ( Hansen, 1982 ; Sargan, 1958 , 1988 ) and α =0.01. The J-statistic for the short-term impact system of equations is 33.89 while the critical value for the chi-square ( df =23, α =0.01)=40.29, resulting in the non-rejection of the null-hypothesis. The J-statistic for the long-term impact system of equations is 33.30 while the critical value for the chi-square ( df =17, α =0.01)=33.41, resulting in the non-rejection of the null-hypothesis. The results of the Sargan Test for over-identifying restrictions indicate that the instruments used for each system of equations are valid, that model misspecification is not an issue, and that the model is adequately specified, resulting in robust estimates and standard errors ( Cameron and Trivedi, 2009 ).

5. Estimation results and analysis

The estimation results of the short-term impact of the FAA downgrade and EU ban on tourism receipts, tourist arrivals, and length of stay are shown in Tables 1 , ​ ,5, 5 , and ​ and6, 6 , respectively. Fig. 4 shows the downward trend in the monthly tourism receipts from January 2007 to March 2011, which includes the periods that correspond to the short-term impact of the downgrade (January–December 2008) and ban (April 2010–March 2011).

Monthly tourism receipts, January 2007–March 2011.

Short-term impact of the FAA downgrade and EU ban on tourism receipts.

Three asterisks (***) indicate significance at the 1% level while without an asterisk is insignificant.

Short-term impact of the FAA downgrade and EU ban on tourist arrivals.

Three asterisks (***) indicate significance at the 1% level and two asterisks (**) at the 5% level, while without an asterisk is insignificant.

Short-term impact of the FAA downgrade and EU ban on length of stay.

The FAA downgrade and EU ban result in USD 28.28 million and USD 13.68 million decrease in monthly tourism receipts, respectively, in the short term (refer to Table 1 ). These results are not surprising since the DOT reported cancelations of travel to and tours in the Philippines following the downgrade and ban. The downgrade cost the Philippine tourism industry USD 339 million from January to December 2008, representing almost 14% of that year's tourism receipts while the ban cost the tourism industry USD 164 million in the 12 months following the ban (April 2010–March 2011), representing almost 7% of tourism receipts in 2010. The short-term negative impact of the downgrade and ban on tourism receipts corroborates the short-term effect of shocks on Fiji's tourism receipts ( Narayan, 2005 ) as well as the temporary impact of shocks on the Caribbean tourism industry ( Browne et al., 2009 ), indicating that the Philippine Government's failure to comply with international aviation safety standards has a similar effect. The negative impact of the downgrade and ban on monthly tourism receipts is consistent with the data and trend line indicated in Fig. 4 .

Since the short-term impact of the downgrade and ban on tourism receipts is substantial, the Philippines should address the safety concerns in its civil aviation industry in order for international visitors to return and continue traveling to and around the country, which invariably results in higher tourist expenditures.

Table 2 shows the annual tourism demand summary statistics from 2000 to 2012. Tourism receipts recovered from the effects of the September 11, 2001 terrorist attacks in the US and surpassed its 2000 level in 2005, increased annually until 2007, then declined by almost USD 530 million in 2008, the year the FAA downgraded the Philippines’ civil aviation system to Category 2, and took four years to recover, indicating that the downgrade and ban negatively impact tourist expenditures despite the increasing number of tourists from 2007 to 2012 except in 2009. Length of stay declined from 2008 to 2010 and has not reached its 2007 level by 2012, indicating that the decline in tourism receipts may be partly explained by tourists who are staying shorter in the country.

Tourist arrivals, expenditures, and length of stay, 2000–2012.

An additional foreign visitor contributes, on average, USD 836, to tourism receipts per stay while an additional night per visit adds USD 25.28 million to tourism receipts monthly. These results imply that the Philippines should implement visa and tourism-related policies that encourage foreign visitors to continue traveling to the country to increase tourist arrivals and visit multiple sites to increase length of stay, which invariably increase tourism receipts. International shocks such as terrorist attacks, natural disasters, and financial crises tend to reduce tourism receipts as foreign visitors either postpone or cancel their travel plans or cut their trip short. The impact of domestic shocks on tourism receipts is not significant.

Fig. 5 shows the increasing trend in monthly tourist arrivals from January 2007 to March 2011, which includes the periods that correspond to the short-term impact of the FAA downgrade (January–December 2008) and the EU ban (April 2010–March 2011). Overall the downgrade has no noticeable negative impact on tourist arrivals in the short term, notwithstanding the decline in tourist arrivals in the latter half of 2008, since tourist arrivals between January to December 2007 and January to December 2008 (refer to Table 3 ) slightly increased on an annual basis while the ban has a substantial positive impact on tourist arrivals between April 2009 to March 2010 and April 2010 to March 2011 (refer to Table 4 ).

Monthly tourist arrivals, January 2007–March 2011.

Monthly tourist arrivals, January 2007–December 2008.

Monthly tourist arrivals, April 2009–March 2011.

The FAA downgrade and EU ban variables have the reverse sign—both impact tourist arrivals positively in the short term (refer to Table 5 ), indicating that foreign visitors, business and leisure travelers, ignored the downgrade and ban, resulting in 32,000 and 51,600 more tourists following the downgrade and ban, respectively. This may be due to the difficulty of canceling or modifying travel plans at the last minute or the financial cost associated with trip cancelation or modification, especially for business trips and visits to relatives. As mentioned earlier, the impact of the downgrade and ban on tourist arrivals is moderated by the millions of ethnic Filipinos with foreign passports who travel to the Philippines regularly. The reverse sign may also be due to the absence of major air transport accidents in the Philippines in the year immediately before and following the downgrade and ban, giving foreign visitors the impression that Philippine carriers and the civil aviation industry are relatively safe. The results also indicate the resilience of the tourism industry in the Philippines despite lingering safety concerns on its civil aviation industry by international aviation safety organizations. The absence of a negative impact of the downgrade and ban on tourist arrivals is similar to Thailand's—external shocks are insignificant to tourists’ decision to visit and revisit ( Kraipornsak, 2011 ). The reverse sign of the downgrade and ban is consistent with the increasing trend in monthly tourist arrivals in Fig. 5 .

The negative impact of the FAA downgrade and EU ban on tourism receipts (refer to Table 1 ) and their positive impact on tourist arrivals (refer to Table 5 ) are consistent with the observation of Campos-Soria et al. (2014) that in the short-term, tourists adjust quite readily by spending less during a financial crisis while tourist arrivals continue to increase.

A weaker PHP results in more than 14,000 additional international visitors, underscoring the importance of an effective exchange rate policy to encourage leisure and business travelers to keep visiting the country and stay longer. The GDP growth in OECD countries results in 2,000 fewer visitors, indicating that the Philippines may not be a destination of choice for travelers with rising incomes or high-spending travelers. The impact of domestic shocks on tourist arrivals is not significant. International shocks impact tourist arrivals negatively, however, reducing the number of monthly visitors to the Philippines by more than 29,000, underscoring the vulnerability of the tourism industry to negative shocks such as terrorist attacks, epidemics, and economic crises.

Fig. 6 shows the decreasing trend in the monthly average length of stay from January 2007 to March 2011, which includes the periods that correspond to the short-term impact of the FAA downgrade (January–December 2008) and the EU ban (April 2010–March 2011).

Monthly average tourist length of stay, January 2007–March 2011.

The impact of the FAA downgrade on length of stay is positive, though small, while the impact of the ban is negative and substantial (refer to Table 6 ), suggesting that while some foreign visitors may have ignored the downgrade, most visitors considered the ban as serious and cut their trips short. Since length of stay is correlated with the number of destinations tourists visit during their trip ( de Oliveira Santos et al., 2014 ), the results suggest that foreign visitors for the period January to December 2008, which corresponds with the short-term impact of the downgrade, have essentially similar itineraries compared with tourist itineraries in other years since length of stay increased only by a fourth of a night, while the decrease of more than 1.2 nights from April 2010 to March 2011, which corresponds with the ban, suggests that tourists cut their trips short, resulting in less tourism receipts during this period (refer to Fig. 4 ). The negative impact of the ban on length of stay is consistent with the downward trend in length of stay from January 2007 to March 2011 (refer to Fig. 6 ), indicating that the ban's negative impact on length of stay overwhelms the slightly positive impact of the downgrade.

Although the expected daily expenses of foreign visitors in the Philippines and international shocks are highly significant and have the correct sign, their impact on length of stay is trivial. The GDP growth of OECD counties and domestic shocks are not significant.

While tourist arrivals did not decline in the short term, notwithstanding a 5% decline in 2009, the substantial decline in tourism receipts implies that foreign visitors have been spending less (refer to Fig. 4 ) and staying shorter following the downgrade and ban (refer to Table 2 and Fig. 6 ). This may indicate that tourists have shorter itineraries since additional trips within the Philippines entail travel using local airlines and exposure to the “unsafe” civil aviation system and that high-spending tourists, which are arguably more safety conscious than the average traveler, have not returned following the downgrade and ban.

The estimation results of the long-term impact of the FAA downgrade and EU ban on tourism receipts, tourist arrivals, and length of stay are shown in Tables 7 , ​ ,8, 8 , and ​ and9, 9 , respectively. Fig. 7 shows the increasing trend in monthly tourism receipts from January 2007 to December 2012, which includes the periods that correspond to the long-term impact of the downgrade (January 2008–December 2008) and ban (April 2010–December 2012).

Monthly tourism receipts, January 2007–December 2012.

Long-term impact of the FAA downgrade and EU ban on tourism receipts.

Three asterisks (***) indicate significance at the 1% level.

Long-term impact of the FAA downgrade and EU ban on tourist arrivals.

Three asterisks (***) indicate significance at the 1% level and two asterisks (**) at the 5% level.

Long-term impact of the FAA downgrade and EU ban on length of stay.

The FAA downgrade impacts tourism receipts negatively in the long term (refer to Table 7 ). The downgrade results in USD 37.46 million decline in monthly tourism receipts from January 2008 to December 2012 or a loss of almost USD 450 million annually, representing 16% of the average annual tourism receipts from 2008 to 2012. Table 2 shows that the annual tourism receipts did not return to the pre-downgrade level in 2007 until 2011, at least three years following the downgrade in January 2008. A consequence of the downgrade to Category 2 is the inability of the Philippine Airlines (PAL), the country's flag carrier, to expand its route network in North America, implying that the economic loss due to the downgrade extends beyond the tourism industry.

The long-term impact of the EU ban on tourism receipts is positive, indicating that foreign visitors may have shrugged off the ban due to the lack of fatal airline accidents in the country between 2010 and 2012 and decided to proceed with their travel plans to the Philippines and perhaps even stayed a bit longer, i.e., length of stay started to recover, from its lowest level in November to December 2010, in January 2011 (refer to Fig. 6 ), reversing the short-term negative impact of the ban. This result may also indicate the resilience of the tourism industry in the long term in spite of the apparent deficiencies in civil aviation safety standards in the Philippines. The positive impact of the ban on tourism receipts in the long term is consistent with the increasing trend in monthly tourism receipts in Fig. 7 .

Fig. 8 shows the increasing trend in monthly tourist arrivals from January 2007 to December 2012, which includes the periods that correspond to the long-term impact of the FAA downgrade (January 2008–December 2012) and EU ban (April 2010–December 2012).

Monthly tourist arrivals, January 2007–December 2012.

An additional tourist spends USD 962 per stay while extending a visit for just one night results in USD 28.38 million additional tourism receipts per month. Since more tourists and longer stays result in higher tourism receipts, the country should implement more tourist and business friendly policies so that those who visit the country are encouraged to return, spend more, and invest in local businesses up to the legal limit of 40% per business venture. International shocks tend to reduce tourism receipts, underscoring the vulnerability of the tourism industry to unexpected and troublesome events around the world.

The short- and long-term impact of the FAA downgrade and EU ban on tourism receipts have the same adjusted R 2 of 0.78, suggesting that the explanatory variables in both equations (refer to Eqs. (1) and (4) and Tables 1 and ​ and7) 7 ) adequately explain the variability in tourism receipts compared with the studies examined by Wang and Davidson (2010) , which reported R 2 or adjusted R 2 values of below 0.2 and lower than 0.1, respectively.

The FAA downgrade and EU ban have the reverse sign (refer to Table 8 ), suggesting that tourists and business travelers ignored the safety warnings on the Philippine civil aviation industry and underscoring the positive impact of the millions of ethnic Filipinos with foreign passports who travel to the Philippines oblivious of the downgrade and ban. The results are similar to the short-term impact of the downgrade and ban on tourist arrivals (refer to Table 5 ) and corroborate the findings of Kraipornsak (2011) on international tourist arrivals in Thailand and the results of Aly and Strazicich (2000) and Browne et al. (2009) that suggest external shocks have a temporary effect in Israel and Egypt and on the Caribbean tourism industry, respectively. The reverse sign of the long-term impact of the downgrade and ban is consistent with the increasing trend in monthly tourist arrivals from January 2007 to December 2012 (refer to Fig. 8 ).

The real exchange rate and income variables have the correct sign—a weaker PHP and stronger economic growth in OECD countries result in more foreign visitors, underscoring the importance of a favorable exchange rate and increasing incomes.

Fig. 9 shows a decreasing trend in the monthly average length of stay from January 2007 to December 2012, which includes the periods that correspond to the long-term impact of the FAA downgrade (January 2008–December 2012) and EU ban (April 2010–December 2012).

Monthly average tourist length of stay, January 2008–December 2012.

The FAA downgrade and EU ban impact length of stay negatively in the long term (refer to Table 9 ). The average length of stay decreased for three straight years from 2008 to 2010 and only slightly recovered in 2011 (refer to Table 2 ).The shorter stay partly explains the lower tourism receipts in the same period compared with the 2007 level. The impact of economic growth and expected daily expenditures on length of stay, though positive, is trivial while external shocks tend to impact length of stay negatively. The negative impact of the downgrade and ban on length of stay in the long term is consistent with the decreasing trend in length of stay from January 2007 to December 2012 (refer to Fig. 9 ).

6. Conclusion and policy implication

This paper has estimated the impact of the Philippine Government's failure to comply with international civil aviation safety standards, resulting in the downgrade of its civil aviation system to Category 2 by the FAA in January 2008 and the EU ban of Philippine carriers from EU skies effective April 2010, on tourist expenditures, arrivals, and length of stay, using monthly time series data for the period January 2000 to December 2012.

The results indicate that the FAA downgrade and EU ban have a negative impact on tourism receipts in the short term while only the downgrade impacts tourism receipts negatively in the long term. Moreover, the downgrade impacts length of stay negatively in the short term while the ban impacts length of stay negatively in the short and long term. This indicates that the damage caused by the downgrade and ban on the Philippine tourism industry is substantial and will have dire consequences on the tourism and air transport industries if the FAA does not reclassify the Philippine civil aviation system to Category 1 and if the EU does not lift its ban.

The FAA downgrade and EU ban have no negative impact on tourist arrivals, either in the short or long term. These results indicate the relative resilience of the Philippine tourism industry from external shocks, although the sizeable ethnic Filipino community who hold foreign citizenships and visit the country regularly may have moderated the impact of the downgrade and ban on tourist arrivals.

While the results indicate that the FAA downgrade does not impact tourist arrivals negatively, its negative short- and long-term impact on tourism receipts suggests that the country's share of high-spending tourists may have decreased following the downgrade. The long-term negative impact of the downgrade on monthly tourism receipts indicates that high-spending tourists have not returned, resulting in average shorter stays. While the Philippines wants tourist arrivals to increase in the long term, the return of high-spending tourists who will stay longer will result in more tourism receipts.

Although the lack of short- and long-term negative impact of the FAA downgrade and EU ban on monthly tourist arrivals in the Philippines may indicate a different perception held by tourists on the safety of the Philippine civil aviation system, benefitting the tourism industry in the Philippines, compared with the perception of regulatory agencies outside the country, the Civil Aviation Authority of the Philippines should nevertheless strive to meet international aviation safety standards so that the FAA can reclassify its civil aviation system to Category 1, allowing PAL to expand its route network and increase its departure frequency between the Philippines and North America, resulting in more tourist arrivals, expenditures, and perhaps longer stays given a civil aviation system deemed safe by international standards.

The lifting of the EU ban may encourage Philippine carriers to serve major European cities where a sizable number of Filipinos live and work, arguably resulting in more tourist arrivals, not only because of the additional flights between these cities and the Philippines, but also due to the improved perception on the safety of the Philippine civil aviation system, which may encourage more foreign visitors to consider the Philippines for their business or leisure trips. The partial lifting of the EU ban on July 2013 allows PAL to commence flights to Europe while the FAA upgrade of the Philippine civil aviation system in April 2014 allows PAL to expand its route network in North America. On November 4, 2013 PAL commenced its five flights per week to London's Heathrow Airport, a major step forward for the Philippine tourism and air transport industries.

Acknowledgment

We would like to thank the two anonymous reviewers and the conference participants at the Air Transport Research Society 2013 Bergamo for their comments and suggestions, which helped us improve our paper. We would also like to thank Jennifer Umlas, our research assistant, for helping us with the data gathering.

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To Build Up Tourism, Philippines Loosens Pandemic Restrictions For Filipinos

Ashley Westerman

The tourism industry in the Philippines lost some $8 billion in 2020 because of the pandemic. Filipinos are being encouraged to travel domestically to try to restart a crucial sector of the economy.

NOEL KING, HOST:

Millions of people in the Philippines work in tourism, and it's a key part of that country's economy. But the pandemic obliterated the industry. In an attempt to revive it, the government is loosening restrictions and pushing Filipinos to travel domestically. Here's Ashley Westerman from Manila.

(SOUNDBITE OF KNOCKING)

KYRA CABAERO: Room check.

(SOUNDBITE OF KEYCARD BEEPING, DOOR OPENING)

ASHLEY WESTERMAN, BYLINE: At the Joy Nostalg Hotel & Suites Manila in Pasig, an upscale part of Manila, marketing director Kyra Cabaero shows me around one of the hotel's standard executive rooms.

CABAERO: We have a fully equipped kitchen already in the studio room. It comes with either a king size bed or two twin beds.

WESTERMAN: Crisp white sheets, a plush white couch, white tile floor - the room is pristine.

CABAERO: As you can see, it's actually quite bigger than regular hotel rooms.

WESTERMAN: There's also something a bit different about this room.

CABAERO: We now offer a QR code. So guests can just scan this, and this will connect them with everything about the hotel. So that's the hotel directory, the room service menu.

WESTERMAN: This is just one of the many COVID protocols the hotel has put in place in order for it to become one of a handful in the metro Manila area certified for staycation bookings.

CABAERO: We have already been inspected and audited and are following the standards for safety and health for DOT.

WESTERMAN: That's the Department of Tourism. Cabaero says the hotel has been impacted financially by COVID, so they jumped at the chance when it arose in May for visitors from within the national capital region bubble to book hotel rooms like these to get away while not getting too far away.

This staycation scheme is just one idea the Philippine government has put forth in an effort to restart the country's pandemic-shattered tourism industry. Pre-COVID, the industry made up more than 12% of the country's overall GDP. A large majority of that was domestic travel. In an email statement to NPR, the Department of Tourism says domestic travel will help restart the battered sector. But while the department says it's doing all it can for a safe reopening, many experts are not on board, even with staycations.

JOSHUA SAN PEDRO: There is still some relative risk, especially if we're talking about staycations by people who aren't from the same household.

WESTERMAN: That's Joshua San Pedro, a primary care provider in Manila. Even though the Philippines' case numbers have gone down after a huge spike in April and May, San Pedro says traveling outside of the home is still too risky. Earlier this month, the Philippines also started some domestic travel between provinces, most notably to some beach destinations like Boracay and Palawan. San Pedro says that adds even more risk.

SAN PEDRO: There's still a lot of cases in the provinces. Until maybe testing is better - and then second is really the vaccine rollout.

WESTERMAN: Which has been slow in the Philippines, with just about 2% of the population fully vaccinated to date. E.J. Fletchitero of Marikina City is not vaccinated and says he will not travel right now.

When do you think you will eventually travel?

E J FLETCHITERO: Maybe if we have all get the vaccines.

WESTERMAN: And not yet getting the jab isn't the only thing keeping him home. The 31-year-old cruise ship worker has also not worked in over a year.

FLETCHITERO: (Speaking Tagalog).

WESTERMAN: He says money's a bit tight right now to pay for a ticket or a hotel room.

Jerome Dagpulo, a food delivery driver, shares the sentiment.

JEROME DAGPULO: (Speaking Tagalog).

WESTERMAN: He says he's currently making about 700 pesos per day, the equivalent of $14 American, which he says is barely enough to just live on.

For NPR News, I'm Ashley Westerman in Manila.

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TOURISM DEVELOPMENT AND POLITICS IN THE PHILIPPINES

The paper examines tourism in the Philippines, a South East Asian nation which has yet to reach its potential as an international destination. Conditions in the country are analysed and possible reasons for its relatively poor performance are discussed. Various barriers to development are identified, but political circumstances emerge as a key consideration whereby instability in assorted manifestations has impeded the operation of the industry, investment and policy making. While experiences of destination development are distinctive, the particular example offers insights into general processes and underlying dynamics.

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Philippine tourism industry seen to reach pre-pandemic levels by 2024 

By Revin Mikhael D. Ochave, Reporter

THE DOMESTIC tourism sector is expected to reach pre-pandemic levels by 2024, although near-term challenges such as high inflation may affect demand, according to industry stakeholders. 

“We consulted our members, we also talked to some experts, reports coming from United Nations World Tourism Organization (UNWTO) and many of them are really looking at 2024 as the year that we can go back to pre-pandemic levels. So, the next year and a half will be crucial,” Philippine Hotel Owners Association (PHOA) Executive Director Benito C. Bengzon, Jr. said in an interview with BusinessWorld Live on One News television channel on Monday.

The coronavirus disease 2019 (COVID-19) pandemic brought travel and tourism to a standstill around the world. The industry is slowly recovering as travel restrictions ease and COVID-19 cases drop.

Mr. Bengzon said he is optimistic that the tourism and hotel industry is heading towards recovery, after travel demand improves during the summer months.

“For the hotel industry, we have been registering very good occupancy rate in the last couple of months. This has been driven by the strong demand among Filipinos who are out on summer vacation,” Mr. Bengzon said.    

Preliminary data from the Philippine Statistics Authority (PSA) recently showed that the share of the local tourism industry to the country’s gross domestic product (GDP) inched up to 5.2% in 2021 from 5.1% in 2020. However, this is still signi fi cantly lower than the 12.7% seen in 2019.

Tourism Congress of the Philippines (TCP) President Jose C. Clemente III said that most countries and industry experts are aiming to see travel and tourism to reach pre-pandemic levels by 2024.

“Of course, that will depend on some factors such as the war in the Ukraine and COVID-19 or new viruses that may come to light. If there is a resolution to Ukraine sooner than later and no new viruses, then travel and tourism should be okay,” Mr. Clemente said in a Viber message. 

John Paolo R. Rivera, associate director at the Asian Institute of Management (AIM) – Dr. Andrew L. Tan Center for Tourism, said in a Viber message that the projection of attaining pre-pandemic levels by 2024 is “reasonable” but may have already factored in disruptions from the pandemic, global economy and other external factors.

“However, it is also possible to reach pre-pandemic levels as early as 2023 if no disruption will happen such as a surge, lockdown, war, political instability, and security threat. While it is not likely, we are living in a volatile, uncertain, complex and ambiguous world. Anything can happen,” Mr. Rivera said.

However, the spike in fuel and food prices may pose a challenge to the industry’s recovery.

“Any increase in oil will invariably a ff ect prices of commodities and services across di ff erent sectors… This (oil hike) is a challenge but we don’t really see it as a dampener,” Mr. Bengzon said.

Mr. Clemente said that the industry has little control when it comes to in fl ation, which is expected to continue accelerating in the next few months.

“Coping with challenges such as inflation and oil price hikes, unfortunately, are external factors that the travel and tourism industry has little control over. The most we can do is to do our best to keep prices down as best we can but still continue to make acceptable margins,” Mr. Clemente said.    

“We have to remember that tourism is also coming out from a two-year hibernation and we are just starting to get back on our feet. We also need to make back what we lost during the peak of the pandemic,” he added.    

Mr. Bengzon said the local tourism industry needs to achieve an “optimum balance” to achieve recovery.

“We know that there’s still some restrictions on international travel. For domestic (travel), for us to really sustain this growth momentum, it’s really important that we’re able to contain COVID-19, to make sure that Filipinos who travel around the country observe health protocols,” the PHOA executive director said, noting that tourists from major markets such as South Korea, Japan and China are crucial to recovery.

According to AIM’s Mr. Rivera, the tourism industry’s recovery can be supported by encouraging more Filipinos to get their COVID-19 vaccines and booster shots.    

“Everyone should get vaccinated and boosted, continue complying with minimum health standards so we can make sure that we are towards no alert level and avoid an increase in alert level so mobility continues to progress,” Mr. Rivera said.

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• March 16, 2023

Tourism in the Philippines: Exploring Opportunities and Overcoming Challenges

Introduction

Travel and tourism in the Philippines is a vibrant and growing sector. The country has many attractions, including beautiful beaches, impressive mountains, and a rich cultural heritage. Every year, millions of tourists flock to the islands of the Philippines to explore its breathtaking beauty and indulge in its offerings. In 2019, foreign arrivals peaked at 8.3 million , indicating the country’s popularity as a tourist destination.

However, the tourism industry in the country suffered significant losses in previous years because of the pandemic. Nevertheless, the country is optimistic and expecting a revival and revitalization of its tourism economy. Continue reading to explore the nation’s thriving sector, its obstacles, and the potential it provides.

Why do tourists love to visit the Philippines?

The Philippines, an archipelagic nation spanning over 7,000 islands, offers an unparalleled and distinctive experience for travellers. With a vibrant culture, delectable cuisine, welcoming locals, and breathtaking natural scenery, the country boasts a diverse range of offerings to cater to all interests. Here are just a few you won’t want to miss out on!

Stunning Beaches

The Philippines is home to some of the most beautiful beaches in the world. From laid-back, crystal-clear waters to vibrant nightlife scenes and everything in between, you’re sure to find something that will suit your tastes. Notable attractions are the stunningly beautiful islands of Siargao, Boracay, and Palawan, all of which were ranked first, second, and third, respectively, on Condé Nast Traveller’s list of Asia’s best islands in 2018 .

Adventure & Nature

The Philippines is a nature-lovers paradise, possessing a variety of breathtaking landscapes and diverse ecosystems. The country’s rainforests are home to some of the world’s most exotic plants and animals, while its mountains offer exciting trekking opportunities. Adventure seekers can also enjoy white-water rafting in the Cordilleras or explore some of the country’s many volcanoes including the perfectly cone-shaped Mayon Volcano in the region of Bicol, which is a UNESCO Biosphere Reserve.

Cultural Experiences

The Philippines is a melting pot of cultures, and its vibrant heritage can be experienced through its cuisine, music, art, and festivals. The country also features some of the most beautiful colonial architecture in the world, notably Vigan, a UNESCO World Heritage City and one of Asia’s best-preserved planned Spanish colonial towns. Additionally, the local people are warm and welcoming, and travellers often find themselves connecting with the locals for a truly authentic experience.

Tourism and the Philippine Economy

The travel and tourism industry is one of the major contributors to the Philippine economy. In 2019, the industry contributed a record 12.7% of the country’s GDP, amounting to PhP 2.48 trillion, a 10.8% increase over 2018. It is one of the largest service industries in the country in terms of gross revenue and foreign exchange earnings. It also employs millions of Filipinos, with an estimated 5.7 million people employed in the sector as of 2019. This makes it an incredibly important source of income for many local communities across the nation.

However, the COVID-19 pandemic has negatively impacted the industry in the past few years. Thousands of livelihoods were severely affected and many jobs were lost. In fact, in 2021, the sector was only able to contribute 5.2% to the country’s GDP. Tourism employment in 2021 also took a nosedive at an estimated 4.90 million, which, while higher than the 4.68 million recorded in 2020, is still significantly lower than pre-COVID numbers.

Challenges of the Philippine Tourism Sector

Covid-19 anxieties.

As mentioned, the recent pandemic has brought unprecedented challenges to the Philippine tourism sector. The industry has been one of the hardest-hit sectors, with a significant decline in international and domestic arrivals. As a result, businesses have suffered due to restrictions on travel, social distancing requirements, and a decrease in tourist spending.

In Standard Insights’ most recent Consumer Report Philippines 2023 , which surveyed over 1,000 Filipino respondents in November 2022, more than half of the population stated health & safety-related issues (53.6%) were their biggest worry about travelling in 2023.

Interestingly, most Filipinos, specifically 76.6%, feel safe and secure travelling abroad despite the ongoing COVID-19 situation. Merely a minority of 6.2% expressed feeling insecure about international travel this year.

Airline Woes & Airfare Costs

Another major challenge facing the Philippine tourism sector is the limited number of air links between domestic and international destinations. For many years, the country has relied heavily on its domestic airlines to provide service to both local and foreign passengers. However, with a limited number of flights available, it can be difficult for tourists to visit multiple destinations within the same trip. The lack of direct routes from other countries also proves to be an obstacle for those hoping to travel to the Philippines for a holiday or business trip.

Adding to this challenge is the high cost of airfare that affects the Philippine tourism sector. The cost of oil prices has been rising steadily over the past few years, and the cost of airfare is one of the most affected areas due to this trend. Moreover, airfares in the Philippines tend to be higher than in other Asian countries due to taxes imposed by both local and international airlines as well as fuel costs that are often not included in ticket prices. This makes it difficult for budget travellers and those who are looking to save money on their trips.

Infrastructure

Another challenge facing the Philippine tourism sector is inadequate infrastructure and services such as hotels, transportation networks, and attractions available at tourist destinations across the country. Inadequate infrastructure often leads to overcrowding at major tourist spots during peak season and prevents visitors from enjoying all that each destination has to offer. Additionally, poor public transportation options make it difficult for travellers to explore beyond just their immediate area without having access to private transport such as cars or taxis.

Government Tourism Revival Efforts

The Philippine government has undertaken various measures to revive the tourism sector. In 2021, it launched the Tourism Response and Recovery Plan (TRRP) to help mitigate the impacts of COVID-19 on the industry and protect jobs, visitors, and communities by providing financial assistance for businesses and individuals in need. This allows support for the recovery of tourism enterprises and helps to rebuild confidence and growing demand in domestic and foreign markets. The plan also included an incentive program for domestic tourists, which was implemented in late 2021 and aimed to help revive local tourism by offering discounts on accommodations, food, and activities.

Moreover, starting in 2024, foreigners will be allowed to get tax refunds for purchases made in the Philippines as part of the government’s aim to attract more visitors. Value-added tax (VAT) , which is presently charged at a rate of 12% on goods consumed domestically, will eventually be refunded to international visitors on items they take out of the country.

Finally, the Philippines can be hopeful about the future of its tourism industry. In the previous year, the country welcomed 2.6 million visitors , surpassing its 2022 goal of 1.7 million arrivals. This achievement has encouraged the Department of Tourism (DOT) to set a new target of attracting 5 million foreign visitors in 2023, double the number from last year.

In recent years, the Philippine tourism industry has encountered a multitude of obstacles, particularly with health and safety concerns. In the aftermath of the pandemic, these issues continue to linger, with over half of the population expressing apprehension about travelling in 2023 due to the ongoing impact of COVID-19. Despite the challenges, the industry remains resilient and adaptable, implementing measures to ensure the safety and well-being of tourists and locals alike.

The government has also responded by launching various initiatives such as the Tourism Response and Recovery Plan to help revive the industry and promote domestic and international travel. By continuing to focus on strengthening infrastructure, encouraging domestic tourism, and offering attractive packages for foreign visitors, the Philippines is taking steps toward restoring its tourism sector to its former glory.

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Tourism in the Philippines pp 171–176 Cite as

Tourism in the Philippine Society: Conclusions and Looking Forward

• Richard S. Aquino 5 &
• Brooke A. Porter 6 , 7  
• First Online: 07 October 2022

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

This edited book uncovered some of the contemporary tourism issues in the Philippines, explored through the perspectives of communities, hosts, tourists (local and foreign), and Filipino scholars. This concluding chapter revisits the contributions from each chapter organized through thematic analysis. Particularly, key findings from the contributions are discussed as they inform two broad themes, namely, the tourism orientation of hosts and guests’ orientation of the Philippines . Implications for furthering knowledge of tourism within the context of Filipino society are outlined.

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Aquino, R.S., Porter, B.A. (2022). Tourism in the Philippine Society: Conclusions and Looking Forward. In: Aquino, R.S., Porter, B.A. (eds) Tourism in the Philippines. Perspectives on Asian Tourism. Springer, Singapore. https://doi.org/10.1007/978-981-19-4013-2_10

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DOT: TOURISM INDUSTRY UP TO TOUGH CHALLENGES ON PATH TO RECOVERY

Department of Tourism (DOT) Secretary Bernadette Romulo–Puyat said the tourism industry is ready to face the reality and daunting challenges of the “new normal,” referring to new standards and protocols for safe and responsible tourism that will direct its path to recovery.

The tourism chief disclosed the wide–range preparations for the anticipated reopening of economic activities during the Tuesday’s online–edition of Go Negosyo, themed “We Go As One For Tourism,” hosted by Presidential Adviser for entrepreneurship Joey Concepcion.

To guarantee the visitors’ primary concern for safety, the DOT Chief said measures will be implemented including: re–training of tourism practitioners, reducing the capacity of air and land transport units, the distribution of hygiene kits to tour participants, mandatory temperature checks at airports, hotels, and other attractions, and ensuring food safety, among others.

The DOT is also proposing the following measures: a) Regular sanitation/ disinfection of tourism accommodation and transport services; b) provision of sanitation/ disinfecting devices, including PPEs for tourism workers; c) regular inspection of tourism establishments by agencies in relation to health and safety standards; d) development of online systems that can facilitate tourism–related transactions such as applications for accreditation, training modules, and even retail.

“There is no going back to the way things were and we have to accept the tourism landscape that will emerge after the COVID–19 pandemic. Unless a vaccine is developed, the threat of another outbreak is always a possibility so safety will be the paramount concern of most of our visitors,” said Puyat.

She also took the opportunity to appeal to the public for support as the tourism industry adapts the stringent measures required to survive, thrive and stay resilient under the new normal.

“With your support, open-mindedness, and cooperation, the tourism industry can once again prosper while setting the bar with new standards for hospitality, sustainability, health and safety, and guest satisfaction,” Sec. Puyat added.

The tourism chief stressed the government’s inclusive approach to finding solutions to the challenges identified as the most pressing, such as: the need for soft loans for working capital; payment of loans; deferment of tax payments; wage subsidies; and health and safety of tourism workers.

She said the DOT, in cooperation with national government agencies and stakeholders through the Tourism Congress of the Philippines (TCP), is currently formulating the Tourism Response and Recovery Plan (TRRP), which will serve as the masterplan to get the industry back on its feet.

Puyat assured that the TRRP is designed to revitalize the country’s tourism industry, including programs, projects, and activities under six thematic outcomes with emphasis on sustaining businesses, training or capacitating the workforce, and protecting vulnerable groups.

Published:March 3, 2021

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Tourist Rest Areas launched in Mindanao

FY 2023 DOT budget submitted to plenary; Senators press for higher tourism budget

DOT celebrates Philippines’ back to back wins at Conde Naste Traveler Readers’ Choice Awards; Boracay claims spot as top island in Asia anew

Frasco secures CA nod as Tourism Chief

DOT receives HOR nod for P3.573 B budget for 2023

First ever DOT-DOLE nat’l tourism job fair opens

Tourism Chief tackles plans to revive industry, entices foreign investors in New York briefing

PBBM pronouncements at UN meet an “excellent representation” of PHL – Secretary Frasco

DOT-DOLE 1st Philippine Tourism Job Fair pre-registration now open, more than 7k jobs available to tourism job seekers- Sec. Frasco

STATEMENT OF TOURISM SECRETARY CHRISTINA GARCIA FRASCO ON THE LIFTING OF OUTDOOR MASK MANDATE IN THE PHILIPPINES

DOT muling pinarangalan ng Selyo ng Kahusayan sa Serbisyo Publiko 2022

DOT Chief welcomes IATF recommendation to make masking optional when outdoors

Phl scores back to back win in WTA Asia; Intramuros hailed as Asia’s Leading Tourist Attraction of 2022

Frasco lays out DOT plans and programs for industry recovery; lawmakers bat for higher DOT budget

More than 1,500 tourism jobs to be offered in joint DOT-DOLE job fair

Dot to ink tourism job fair program – trabaho, turismo, asenso with dole; domestic, international jobs to be available to tourism job hunters.

Thailand to offer tourism job opportunities to Filipinos– Frasco

PHL tourism chief pushes for increased connectivity, interoperability of vax certs, equalization of opportunities, and sustainability in APEC tourism ministers’ meet

Philippines strengthens tourism ties with Thailand

DOT TRAINS BOHOL VENDORS ON FILIPINO BRAND OF SERVICE EXCELLENCE

20 intl, local dive and marine experts take centerstage at PHIDEX 2022

Measures in place to ensure safe travel to PHL – Tourism Chief

FRASCO OPTIMISTIC OF PH TOURISM RESURGENCE, LAUDS CEBU TOURISM SUCCESS

Frasco eyes visitor-friendly, “distinctly Filipino” air, seaports in PHL

DOT celebrates Philippine Accessible Disability Services, Inc. (PADS) Dragon Boat Team historic four gold medal haul

DOT to facilitate interagency effort to strengthen Filipino Brand of Service

DOT to coordinate on quake-hit tourist destinations, heritage sites

PBBM cites tourism as top-priority; orders infra development, enhancement of Filipino brand

DOT chief takes “Listening Tours” to Luzon

DOT Chief affirms support to National Museum of the Philippines; proposes inclusion of museums in tourism circuits

Boracay, Palawan and Cebu hailed World’s Best Islands; DOT celebrates back-to-back accolades for PHL destinations

Marcos push for Tourism Infra strengthens industry, raises PHL global position – DOT Chief

DOT lauds Boracay’s inclusion in TIME’s 50 World’s Greatest Places of 2022

DOT lauds Cebu-based group win in int’l dance competition

Statement of tourism secretary christina garcia frasco on banaue.

Tourism Chief Frasco kicks off listening tours in VisMin, encourages officials to reach out to LGUs, stakeholders

Tourism chief Frasco to go on ‘listening tours’ starting this week

Dot reports increase in domestic tourism in 2021.

Incoming tourism chief receives warm welcome from employees, vows to bring “LGU perspective” to DOT

DOT’s Philippine International Dive Expo (PHIDEX) returns to Manila next month

First Davao Dive Expo slated on June 24

DOT touts ‘future farms’ as new and sustainable tourist attractions

DOT pitches PHL as ideal retirement destination in Japan Expo

DOT positions New Clark City as premier tourism investment hub

PH’s significant recovery in travel and tourism hot topic in Routes Asia 2022

DOT’s KAIN NA! takes foodies to a multi-sensory adventure

DOT Presents “Escape: Stories from the Road” Podcast

Second (2nd) Online Master TESOL Certification Course

DOT, MMC Foundation partnership brings ER bikes to three Metro Manila tourist sites

DOT spotlights PWDs and women in tourism with new “It’s More Fun for All” campaign

Media release from the department of tourism.

PHL scraps COVID pre-departure test for fully vaccinated, boostered tourists

DENR, DOT and DILG unveil Year of Protected Areas (YoPA) Campaign marking 90th anniversary of Protected Area establishment in the Philippines

Department of Tourism and Mickey Go Philippines introduce Pinoy Mickey Funko Pops

DOT launches “Keep the Fun Going” sustainable tourism campaign with gamified challenges

DOT reminds AEs on proper flag etiquette

DOT 49th Anniversary speech of the Tourism Secretary

DOT pushes for 100% vaccination of active tourism workers

DOT calls for lowering of testing price cap, certification of more saliva test facilities

PHL may be next filming location as Tourism Summit brings in Hollywood execs

WTTC Investment Tour Highlights Viable Opportunities in Clark, Central Luzon

WTTC lauds PH successful hosting of Int’l tourism Summit

Closing and Congratulatory Message during the Closing Ceremony of the 21st WTTC Global Summit of the DOT Secretary

WTTC: ‘Astonishing Recovery’ for Philippines’ tourism sector

World Travel & Tourism Council (WTTC) Exhibition Booths

WTTC Opening Ceremony Welcome Remarks of the DOT Secretary

WTTC bullish on PH tourism recovery amid Covid-19 pandemic

PHL Foreign tourist arrivals breach 200k mark – DOT Chief

DOT, partner agencies celebrate Filipino Food Month

WTTC announces speakers for its 21st Global Summit in the Philippines

DOT seeks return of Korean tourists, PH’s top market

DOT inks partnership with PNP, PDEA to beef up security in tourist destinations

DOT Launches Digital Travel Magazine “7641”

PHL says “All systems go for full reopening on April 1”; Removes EED as entry requirement

Phl logs more than 100,000 visitor arrivals since feb. 10 reopening.

DOT meets with Japanese tourism execs to boost inbound tourism arrivals

Statement of the DOT on hotel rooms occupancy guidelines

PH opens doors to all foreign tourists with easing of arrival requirements starting April 1

Travel to PHL is “easier”, more fun – Puyat

DOT Launches “Sounds More Fun in the Philippines” Playlist on Spotify

DOT hopeful on higher tourism growth with downgrading of NCR, 38 areas to Alert Level 1

Intramuros visitors up by 132% in February

DOT bares higher tourist influx since reopening

Dot welcomes iatf approval to accept the national vaxcert of 12 additional countries.

PH receives 9,283 inbound tourists; DOT upbeat on higher arrivals in months ahead

Puyat: Walk-in booster shots available for Boracay visitors

All systems go for PHL reopening for international travel- Puyat

Kids’ vaccination to make family travels safe, more fun

DOT lists requirements and protocols for arriving foreign leisure guests

Save the date for the World Travel & Tourism Council Global Summit in the Philippines

DOT: PH to accept fully-vaxxed tourists from visa-free countries starting Feb. 10

DOT supports ‘Pharmacy and Drive-thru Vaccination Sites’ rollout in Baguio City

DOT Launches “ASMR Experience the Philippines” Project

Dot to hold 2-day conference on english as second language (esl).

PH cities, hotels bag ASEAN tourism awards

Booster shots rolled out for fully vaxxed tourism workers; 50% of NCR hotel staff already “boosted”

DOT trains over 30,000 tourism professionals amid pandemic

Dot welcomes eased travel movement between gcq and mgcq areas for tourism revival, hotel in ‘poblacion girl” fiasco suspended, fined, intramuros gives vulnerable population a breathing space, dot launches website with exclusive travel deals for balikbayans.

Anilao Underwater Shootout stages a successful comeback

DOT’s KAIN NA! makes a comeback in Tagaytay

Dot earns unwto citation for have a safe trip, pinas ad.

Brgy. Bojo in Aloguinsan, Cebu bags UNWTO best tourism village award

More than 95% of tourism workers in dive establishments already vaccinated against covid-19: dot.

DOT: PHL to welcome Int’l tourists soon

Dot welcomes shortened quarantine days for balikbayans, dot asks lgus to simplify entry requirements in tourist spots, miceconnect 2021 positions boracay as asia’s premier bleisure destination, dot releases latest list of domestic destinations waiving rt-pcr tests for fully vaxxed visitors, dot grants incentives to fully vaccinated individuals visiting intramuros.

Statement of the DOT on waiving RT-PCR requirement to Boracay for fully vaxxed tourists

Anilao underwater ‘shootout’ is back

Puyat, dot execs pitch ph tourism in japan travel mart, dot welcomes eased restrictions in mm under alert level 2, free swab tests for domestic tourists starting nov. 1, dot lists destinations without testing requirement, with projected 100% inoculation rate by next month, boracay will soon waive rt-pcr testing for fully vaxxed visitors.

Domestic Travel Welcome-Back: DOT, TPB launch ‘It’s More Fun with You’ ad and ‘Have a Safe Trip, Pinas’ Viber Stickers

22 divers pass dot guide training in anilao.

PH cited Asia’s top beach and dive destination anew in 2021 World Travel Awards

Dot bullish on camiguin’s reopening, boosts covid-19 vax drive, dot clarifies travel guidelines for ncr residents under alert level 4, alert level 3, good for tourism jobs and businesses as holidays near – puyat, 2nd tourism & technology forum: readying for a different future.

DOT vaccination drive for tourism workers continues in Pampanga

Dot welcomes easing of age restrictions for interzonal travel, less quarantine days for travelers an ‘encouraging development’ for tourism industry – puyat.

Vaccination of Rizal tourism workers crucial to industry’s recovery — DOT

Dot welcomes siargao, palawan and boracay win in int’l travel mag awards, over 43k safety seals issued as more businesses apply, dot backs call to shorten quarantine of fully vaxxed travelers, dot calls for cooperation to ensure success of expanded operational capacity of restaurants in ncr.

DOT lauds Samar LGU vax drive for tourism workers

Message of secretary berna romulo-puyat on the celebration of world tourism day, dot ensures compliance of accredited hotels, resorts to new iatf alert level system guidelines.

Cebu vax drive for tourism workers gains traction with more than 50% inoculated

Puyat bares phl hosting of international tourism conference in march 2022.

DOT and TikTok launch #GandaMoPinas Campaign as local borders reopen

Dot invites esl teachers to free online master tesol certification course.

DOT launches “More Fun Awaits” global campaign to showcase travel preps

Statement of the department of tourism (dot), statement of the department of tourism on the inclusion of palawan in t+l’s top islands in asia, world list, more than 50% of country’s tourism workers vaccinated against covid-19 – dot chief, intramuros site visit of dot secretary berna romulo-puyat.

Intramuros sites and Rizal Park to reopen September 16

Philippines boosts participation in expo 2020 dubai, highlights pinoy food, local tourism businesses receive dot, tpb philcare kits.

DOT, partner agencies drive up promotion of Filipino food experience

More than 7.5k tourism workers in Baguio have received Covid vax – Tourism Chief

Dot, tpb distribute p19m worth of materials to promote safety protocols.

DOT, NTF bring vaccination rollout for tourism workers in Siargao Island

DOT: 95% of tourism workers in NCR vaxxed vs Covid-19

Sustainability is key to tourism industry’s recovery — puyat, dot lauds private sector for vaccine rollout in el nido.

PHITEX 2021: Beyond Business slated for September 19-23

Puyat leads vaccination drive for Pampanga tourism workers

More than 75% of Bohol tourism workers eyed for inoculation with second vaccine roll-out

More than 70% of tourism frontliners in metro manila vaccinated vs covid-19 — puyat.

DOT and TPB SUCCESSFULLY STAGED FIRST-EVER HYBRID EDITION OF THE REGIONAL TRAVEL FAIR

Dot, bpos to hold job fair, statement of the department of tourism.

DOT targets increased inoculation of tourism workers in more destinations

Puyat: More vaccines coming for Palawan tourism workers

Dot statement on nesthy petecio’s silver medal finish in the tokyo 2020 olympics, rizal park drive-thru vax site opens; puyat hails manila’s anti-covid initiative, dot gets highest coa rating for 2nd straight year, statement of the department of tourism on the passing of heritage and cultural tourism advocate mr. ramon hofileña, statement of the department of tourism (dot) on the heightened community quarantine level implementations in ncr, more tourism workers in boracay to receive covid-19 jabs – dot, dot reiterates call for safe travel amid stricter quarantine measure, dot reminds hotels, resorts that room sharing for quarantined families is allowed, dot celebrates siargao inclusion in time magazine as one of the world’s greatest places of 2021, dot launches halal food tourism, dot backs gov’t infra program to boost tourism, dot backs iloilo bid for ‘creative city of gastronomy’ recognition from unesco, statement of the department of tourism on iatf decision allowing children five years old and above, and fully vaccinated seniors to visit outdoor areas, dot partners with viber to promote kain na foodfest, dot: 3,000 boracay tourism workers to receive covid vax, dot, tpb continues to support lgus with digital transformation projects, dot teams up with scarlet belo and cartoon network to take safe trips, dot statement on the activities of the taal volcano, bakuna by the sea: dot hails davao’s innovative approach to travel, hospitality workers, dot, tpb to roll out 2nd phase of rt-pcr financial subsidy program through pcmc, dot unveils region 1 tourism recovery plan, statement of the department of tourism on the drop of tourism contribution to gdp, dot to co-stage virtual fête de la musique june 18-21, more ncr tourism workers receive support through dot-dole program, travel for tourists of all ages from ncr plus to boracay, other mgcq areas extended to june 30, dot eyes inoculation of 5,000 bohol tourism workers, museums in ncr plus to reopen on limited capacity – dot, dot turns food tourism to high heat with 2021 kain na, terms for tourism business loans eased, dot bares tourism recovery plans for bulacan, dot and tiktok launch #sarapmagingpinoy campaign to promote local food tourism, dot launches five-year plan to develop tourism professionals, dot celebrates world environment month, highlights responsible marine wildlife interactions, statement of the department of tourism (dot) on the rt-pcr requirement for leisure travelers under iatf-eid resolution 118a, statement of the dot on iatf-eid resolution 118a, more than 16k bulacan tourism workers get dot-dole cash aid, dot orders stricter monitoring of staycation hotels and aes in gcq areas following new iatf guidelines, dot lauds inclusion of frontline tourism workers in a1 priority group, dot hosts pata summit for first hybrid mice event in 2021, over 1,400 golf workers in metro manila get dot-dole cash aid.

Central Luzon to Showcase ‘Flavors of Pampanga’, readies tourists for gastronomic experience

Dot lauds ph hotels recognized with the 2021 tripadvisor awards, 3,390 tourism workers in marinduque approved to receive p16.95m dot-dole cash aid, puyat bares tourism recovery plans for marinduque, dot proposes ‘green lane’ for fully vaccinated travelers, dot hails expansion of priority vaccination to a4 cluster, including tourism frontliners, 5,986 staycation rooms open for guests from ncr plus, intramuros to open fort santiago, baluarte de san diego to visitors may 17, dot statement on the proposed vaccination center in nayong pilipino, dot welcomes iatf decision to ease travel in ncr plus, 221m cash aid approved for 44k tourism workers in western visayas, statement of the department of tourism (dot) on the collected garbage from the waters of samal island, davao del norte, statement of the department of tourism (dot) on the reported violations of a hotel in davao city, dot to host hybrid pata annual event for adventure travel, p1.5m cash aid approved for 295 intramuros tourism workers, updates on the vaccination of tourism workers, labor day vax for tourism workers, more than 400k displaced tourism workers get dot-dole cash aid, philippine tourism and mice industry to bounce back with the hosting of wttc global summit, dot, manila lgu ink mobile hospital deal, dot-accredited establishment staysafe.ph-users, eligible for safety seal certification, dot grants the wttc safe travels stamp to 33 more hotels nationwide, dot welcomes proposals to convert tourism sites to temporary medical facilities, dot lauds repurposed hotels, calls for ‘bayanihan’ vs covid, dot approves use of burnham green and quirino grandstand in rizal park for temporary mobile hospital and drive-thru vaccination site, dot celebrates saud beach inclusion in the 25 most beautiful beaches in the world list of travel and leisure, 67k displaced tourism workers of ncr+ receive dot-dole cash aid, statement of the department of tourism on the vaccination facility in nayong pilipino property, statement of the department of tourism regarding the alleged birthday “super spreader” event in boracay, dot eyes adoption of covid-19 digital travel pass, dot statement on ecq extension in ncr plus, phl, dot nominated at asia edition of 2021 world travel awards, dot pushes for inclusion of other tourism workers in priority group a4, strict new guidelines set for hotels under ecq; lenten ‘staycations’ within ncr plus suspended, dot statement on ecq for ncr+ areas, dot statement on holy week, rizal park and paco park adjust visiting hours, remain open for physical exercise, dot statement on biatf measures for boracay, tpb philippines spearheads tourism and technology forum (ttf), dot statement on coron tourist with falsified travel documents, dot supports rizal tourism circuit on food, faith, art, adventure and nature, the ‘fun’ continues: philippines joins digital itb berlin, dot to spur domestic tourism in rizal, dot’s stdp program to enhance resiliency of phl destinations – puyat, dot sustains online presence with ‘wake up in ph’ campaign and safety travel advisories, dot greenlights partial operations of hotel restaurants on june 15, dot eyes tourism recovery as more destinations may reopen, domestic travel to drive recovery of tourism industry, says survey, dot hails revival of tourist cops, tourism will recover well, dot chief vows, dot celebrates hidden beach, palawan’s inclusion in cnt’s best beaches in the world, tourism industry hikes share in gdp to 13%; puyat sees strong recovery from pandemic, dot pushes stringent guidelines for stakeholders across the nation, biatf denounces travelers’ breach of entry protocol to boracay, dot lauds partnership model for safe and sustainable tourism in boracay, dot issues guidelines on tourist land transport services, iatf–eid resolution reiterates ‘dot certificate of authority’ as requisite to operate, dot issues protocols on restaurant operations under the new normal, dot welcomes ph ‘rising stars in travel’ citation by forbes.com, dot, dti to roll out health and safety guidelines, digital solutions for restaurants, dot, attached agencies promote digital tourism, tourism chief reminds hotels, resorts: no dot certificate, no business operations during mgcq, dot assists 36,000 tourists during covid-19 crisis, dot webinar tackles digital as the new normal, dot welcomes the resumption of tourism operations in areas under mgcq, trust and health safety key to phl tourism recovery – dot chief, puyat on reopening tourism: ‘do it slowly but surely’, dot brings home 84 tourists stranded in eastern visayas, dot supports coron’s sustainable tourism development to bounce back, dot welcomes puerto princesa reopening to domestic tourists, dot urges for more wttc safe travels stamp applications, boracay’s white beach, el nido’s nacpan beach among tripadvisor’s top beaches in asia, dot statement on uniform travel protocols, dot supports the safe reopening of negros oriental, puyat affirms support for siquijor’s reopening, dot statement on el nido’s swift action against tourists with false covid test records, dot supports dilg’s streamlining of travel requirements, dot assists 98 stranded tourists in western mindanao, dot assists 246 tourists stranded in bicol, dot response team assists 1004 tourists stranded in caraga region, statement of tourism secretary bernadette romulo-puyat, dot8 springs stranded tourists, total assisted travelers now at 11,000, dot assists stranded tourists in central luzon, dot response teams assist over 10,000 travelers, dot announces the guidelines on hotels and other accommodation establishments during the enhanced community quarantine, dot chief: innovation to spur food tourism in new normal, dot webinar tackles heritage site conservation and use amid pandemic, dot banners “filipino brand of service”; assists over 35,000 tourists amid pandemic, dot to jumpstart domestic tourism under stricter protocols with iatf and lgus, dot partners with wttc to share experts’ tourism outlook, recovery plans, dot regulates hotel food deliveries, more than 155,000 tourism sector workers receive first tranche of dof wage subsidy program, dot mounts sweeper flights; brings home 1000 stranded domestic tourists, dot webinar tackles recovery, future of phl’s m.i.c.e., statement of the department of tourism (dot) on the iatf–eid authorization to mount sweeper flights, statement of secretary bernadette romulo puyat on the passing of former dot secretary ramon jimenez, jr., dot–ncr assists 24,000 in–transit nationals amid ecq of luzon, dot and ssi support philippine food producers in online philippine harvest, dot provides virtual backgrounds for video calls to encourage “travel from home”, dot offers online “enhanced opportunity” training for tourism stakeholders, dot-region 6 delivers filipino brand of service in crisis, dot outlines tourism response, post–covid 19 recovery plan to aid private sector, dot issues guidelines defining “new normal” for accommodation establishments, 24,836 hotel rooms reserved for ofws’ quarantine, bpo staff use – dot chief, stranded tourists welcome extended stay in batanes, dot welcomes lifting of travel ban for outbound passengers, recovery flights, tourism transport to continue for stranded passengers, statement of the department of tourism (dot) on covid-19 local transmission, dot statement on the curfew recommendation for lgus, dot, turkish airlines form partnership to increase philippine tourism from europe and mediterranean source markets, dot celebrates first run of the philippine international hot air balloon fiesta in calabarzon, puyat convenes tourism council; invites public to travel within ph, international visitor receipts hit usd 9.31b in 2019, 20.81% up from 2018, dot postpones nationwide mall sale to prioritize safety of citizens, department of tourism unveils new ad inspired by the abakada alphabet, highlighting unique filipino culture, puyat advocates for cultural and ecotourism in the new normal, relive the history of intramuros city with augmented reality app experience philippines, dot: 1st phl shopping fest kicks off march 1st, doh, dilg and dot give public gatherings green light, 2019 international arrivals exceed target with 8.26 million visitors to the philippines, dot welcomes lifting of taiwan travel ban, joint statement of the department of tourism and tourism congress of the philippines, dot backs “balik sa bohol” for tourism industry revival, intramuros reopens in the new normal, relaxed and standard health protocols, personalized trips key to tourism recovery, says latest philippine travel survey, dot files falsification raps against boracay tourists with forged covid test results, dot: reclassification of industries to hasten recovery, dot statement following the president’s latest directive to contain the ncov, guidelines in handling guests in tourism enterpises in the advent of ncov global health emergency, puyat eyes isabela as top agro-ecotourism destination, dot, dti inspect hotels and restaurants’ compliance with health and safety protocols, dot chief checks readiness of palawan, fresh produce at your doorstep, courtesy of dot–grab tie–up, dot ‘seal of good housekeeping’ boosts confidence among restos amid pandemic – puyat, dot celebrates as palawan reclaims best island in the world citation, tourism chief bullish on english schools’ recovery, dot, fao team up for sustainable farm tourism in ph, meetings, conventions allowed only under mgcq at 50% capacity – dot, boracay now open to youths, seniors from region, dot chief lauds senate approval of bayanihan 2 on final reading, cites plans for 10b stimulus fund, “think out of the box,” tourism industry urged in dot webinar, dot assures tourist stakeholders of all–out support for slow reopening, puyat meets with bohol execs to tackle tourism situation, recovery plans, dot, cloud panda ph launches phl harvest e-commerce site, statement of dot, dot to scale up baguio’s ridge to reef travel bubble plan across phl, dot celebrates “surprisingly spectacular diving” tag of 3 phl dive sites by lonely planet, phl bags best overseas diving award 2020, statement of department of tourism, dot’s phidex 2020 goes digital, dot-dole amended jmc further expands coverage of beneficiaries, dot welcomes new protocols for arriving passengers, dot bats for a more fun, safe and sustainable laguna, dot chief: green corridors are critical to tourism recovery, dot statement on destination test requirements, dot statement on boracay tourists, dot welcomes asean as a single tourism destination, iatf allows baguio hotels to receive domestic tourists under gcq, raising the bar of filipino hospitality with the leadership excellence series 2021, dot lauds inclusion of tourism frontliners in priority group for vaccination, dot’s ‘kain na’ cooks up online food fest, phl hosts 3rd asean meet on tourism professionals; dot commits to beef up competency of tourism workforce in the new normal, safety marshalls to ensure physical distancing when beaches, resorts reopen, 10,000 bpo jobs for displaced tourism workers, zero interest loans, no collateral, easy terms for distressed tourism businesses, puyat to grace baguio reopening; dot to go big on domestic tourism in 2021, chocolate, coffee, tea take centerstage in dot’s kain na food festival, dot receives safetravels stamp from world tourism body, puyat launches baguio’s vis.i.t.a. platform, reopening of boracay to more markets builds momentum for domestic tourism revival, puyat: even in most unusual ways, tourism must stay alive, message of tourism secretary bernadette romulo-puyat on the celebration of the world tourism day, dot statement on the city garden grand hotel, dot chief supports negrense cookbook launch, vows continued support to thriving food tourism scene in western visayas, dot statement on the closure of makati shangri-la hotel, dot pledges to help negros occidental get ready for more domestic tourists, dot welcomes the first two recipients of the wttc safe travel stamp, dot statement on baguio party incident, dot welcomes iatf decision to allow balikbayans, dot launches “have a safe trip, pinas” to promote safe travels and support tourism workers, dot celebrates ph’s victory as world’s leading dive destination and tourist attraction for intramuros in 2020, dot welcomes coron’s reopening on dec. 1 with health and safety measures in place, dot aims for data-driven response to tourism recovery under new normal with survey, dot backs enhanced contact tracing; announces low-cost covid tests with up-pgh for boracay-bound tourists, puyat encourages affected tourism workforce to avail of the expanded dot-dole financial assistance, dot welcomes strides to reboot mice, puyat visits batangas, shores up dive tourism, statement of the dot on cebu resort incident, dot presents virtual concert to promote manila’s cultural heritage sites, dot, makatimed foundation forge partnership for tourism destination health security, dot launches webinar training on reducing single-use plastics for hospitality sector, dot to assist zambales in safe and gradual tourism reopening, dot bats for uniform lgu travel requirements, dot, tpb promote pinoy christmas through music, dot’s 2020 kain na satisfies christmas cravings on fourth leg, dot’s 2020 kain na satisfies christmas cravings on fourth leg, dot prepares local destinations, accommodation establishments for wttc safe travels stamp application, 27,000 displaced tourism workers of car receive dot-dole financial assistance, dot backs temporary suspension of flights from uk, dot inspires balikbayans to come home with ‘balikan ang pilipinas’ campaign, dot, tpb expand rt-pcr financial subsidy program for 11,600 tourists through pcmc, dot reiterates penalties for quarantine hotels used for staycation and other purposes, dot supports strict entry protocols in light of new covid-19 variant, dot reiterates rule on staycation hotels, dot celebrates boracay and palawan inclusion in conde nast’s 25 best island beaches in the world list, dot issues guidelines for safe ‘staycation’, dot accreditation goes digital, boracay reopens, heralds “safe, gradual” revival of philippine tourism, dot gets coa’s highest rating on 2019 audit, dot sees domestic tourism boom in baguio with affordable antigen testing, phl islands named top favorites by int’l travel magazine, dot welcomes reopening of ilocos norte to luzon tourists on oct 15, dot funds rt-pcr testing of boracay tourism workers, dot inks tourism “cares for travel” msme loan program with sb corp, health, safety rules drawn up for recreational diving, batangas now open to divers – dot, puyat reminds ‘staycation hotels’ to follow rules, protocols, dot welcomes baguio city’s opening to guests from luzon starting oct. 22, dot statement on the opening of ilocos sur starting nov 15, ridge and reef corridor heralds domestic tourism recovery, puyat – hotels in gcq, mgcq may now be allowed to operate at full capacity, pra to amend retirement policies, suspends processing of srrv applications, dot supports expansion of palawan’s travel bubble starting oct. 30, tourism chief bats for covid-19 tests price cap, dot urges tourism businesses to avail of sb corp’s covid-19 loan program, dot leadership excellence series returns anew, dot statement on the inclusion of palawan and boracay in big 7 travel’s list of 50 most beautiful places, dot, tpb launch official philippine travel app, dot, dole agree on guidelines for cash-for-work program for displaced tourism workers, tour guides, dot’s kain na takes on food trips for november, intramuros is now asia’s leading tourist attraction the philippines and dot receive accolades at the 2020 world travel awards asia winners day, statement of the department of tourism on prrd’s signing of eo 118, dot inks mou on tourism education, training, dot partners with nissan to promote ‘safe trips’, dot allows operation of 7,200 hotels, resorts, dot lauds ibagiw 2020, baguio’s creative city festival, dot welcomes reopening of phl’s surfing capital, siargao, ridge and reef travel corridor expands to ilocos sur, dot chief visits baguio city, touts cultural tourism with creative crawls, sec. puyat to grace 2020 bambanti festival, dot allocates p340.7m for iloilo tourism infrastructure development, tourist arrivals mark 7.4m in november, up by 15.58%, safety of tourists is dot’s top priority – sec. puyat, dot, cab collaborate to enhance air passenger’s bill of rights, statement of the department of tourism, 2nd statement of the department of tourism, dot thanks smart for emergency satellite phones, dot–dotr meet to boost tourism infra, connectivity; puyat to push approval of 1b for night–rated airports, dot chief to visit, vows to revitalize baguio, tourism chief: phl one with asean in responding to covid crisis.

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Travel, Tourism & Hospitality

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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Travel and tourism's direct contribution to employment APAC 2022, by country

Direct contribution of travel and tourism to employment in the Asia-Pacific region in 2022, by country or territory (in millions)

Estimated revenue on online travel and tourism services in the Philippines in 2023, by category (in million U.S. dollars)

Economic impact

• Premium Statistic Gross value added of the tourism industry Philippines 2019-2022, by type
• Premium Statistic Share of tourism GDP Philippines 2012-2022
• Premium Statistic Tourism industry growth rate Philippines 2018/19-2021/22, by sector
• Premium Statistic Tourism receipts Philippines 2019-2022
• Premium Statistic Tourism expenditures Philippines 2022, by travel type
• Premium Statistic Tourism sector employment figures Philippines 2012-2022

Gross value added generated from the tourism industry in the Philippines from 2019 to 2022, by type (in billion Philippine pesos)

Share of tourism GDP Philippines 2012-2022

Share of direct gross value added of the tourism industry to the GDP of the Philippines from 2012 to 2022

Tourism industry growth rate Philippines 2018/19-2021/22, by sector

Annual growth rate of the gross value added generated from the tourism industry (GVATI) in the Philippines from 2018/19 to 2021/22, by sector

Tourism receipts Philippines 2019-2022

Tourism receipts in the Philippines from 2019 to 2022 (in billion Philippine pesos)

Tourism expenditures Philippines 2022, by travel type

Total value of tourism expenditures in the Philippines in 2022, by type of travel (in billion Philippine pesos)

Tourism sector employment figures Philippines 2012-2022

Total number of people employed in the tourism industry in the Philippines from 2012 to 2022 (in millions)

Inbound tourism

• Basic Statistic International tourist arrivals Philippines 2012-2023
• Premium Statistic Tourist arrivals Philippines 2023, by country of residence
• Premium Statistic Expenditure value in inbound tourism Philippines 2021-2022, by type
• Premium Statistic Number of inbound overnight tourists Philippines 2012-2021
• Premium Statistic Average length of stay of inbound tourists Philippines 2012-2021

Total number of international tourist arrivals to the Philippines from 2012 to 2023 (in millions)

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

Average length of stay of inbound tourists Philippines 2012-2021

Average length of stay of inbound tourists in the Philippines from 2012 to 2021 (in days)

Domestic tourism

• Premium Statistic Number of domestic tourism trips Philippines 2012-2021
• Premium Statistic Domestic passenger count Philippines 2022, by airline
• Premium Statistic Household expenditure share of domestic tourism spending Philippines 2012-2022
• Premium Statistic Domestic tourism expenditures Philippines 2012-2022
• Premium Statistic Domestic tourism expenditures Philippines 2020-2022, by product

Total number of domestic tourism trips in the Philippines from 2012 to 2021 (in 1,000s)

Domestic passenger count Philippines 2022, by airline

Number of domestic passengers in the Philippines in 2022, by airline (in millions)

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

• Premium Statistic Number of international tourist departures in the Philippines 2014-2029
• Premium Statistic Outbound tourism expenditures Philippines 2020-2022, by segment
• Premium Statistic Expenditures on accommodation services in outbound tourism Philippines 2012-2022
• Premium Statistic Expenditures on food and beverage services in outbound tourism Philippines 2012-2022
• Premium Statistic Expenditures on travel agency services in outbound tourism Philippines 2012-2022

Number of international tourist departures in the Philippines 2014-2029

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)

Expenditures on travel agency services in outbound tourism Philippines 2012-2022

Value of expenditures on travel agencies and other reservation services in outbound tourism in the Philippines from 2012 to 2022 (in billion Philippine pesos)

Accommodation

• Premium Statistic Overnight travelers Philippines 2022, by type
• Premium Statistic Revenue of the hotels industry in the Philippines 2019-2028
• Premium Statistic Average hotel room rates Metro Manila Philippines 2021-2022, by star classification
• Premium Statistic Highest overnight room rates of hotels in Metro Manila, Philippines 2023, by city
• Premium Statistic Revenue of the vacation rentals industry in the Philippines 2019-2028

Overnight travelers Philippines 2022, by type

Number of overnight travelers in the Philippines in 2022, by type (in millions)

Revenue of the hotels industry in the Philippines 2019-2028

Revenue of the hotels market in the Philippines from 2019 to 2028 (in million U.S. dollars)

Average hotel room rates Metro Manila Philippines 2021-2022, by star classification

Average room rates for hotels in Metro Manila in the Philippines in 2021 and 2022, by star classification (in U.S. dollars)

Highest overnight room rates of hotels in Metro Manila, Philippines 2023, by city

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

Revenue of the vacation rentals industry in the Philippines 2019-2028

Revenue of the vacation rentals market in the Philippines from 2019 to 2028 (in million U.S. dollars)

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