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"THE INFLUENCE OF FOREIGN TOURISTS TO THE PHILIPPINE


TOURISM INDUSTRY"

Introduction of the Study

Tourism is a key sector of the Philippine economy. In 2015, the travel and tourism industry
contributed 10.6 per cent of the country's GDP. The Philippines is an archipelago country made up of 7,641
islands with 82 provinces divided into 17 regions. The country is known for having rich biodiversity as its
main tourist attraction. Its beaches, heritage towns and monuments, mountains, rainforests, islands and
diving sites are among the most popular tourist destinations in the world. One of the attractions of the
Philippines is the rich historical and cultural heritage of the country, including its festivals and indigenous
traditions. Popular destinations among tourists include Cebu, Boracay, Palawan, Siargao, and many more.

As of 2015, 4.99 million Filipinos were employed in the tourism sector and the government
collected P227.62 billion pesos from foreign tourists, almost 25% of which came from Boracay. The country
attracted a total of 5,360,682 international tourists in 2015 through its popular "It's More Fun in the
Philippines" tourism campaign. Global arrivals peaked in 2017 at 6,620,908.

The World Economic Forum's Travel and Tourism Market Report 2017 ranked the Philippines
79th out of 136 countries worldwide. The country's most highly rated features were price competitiveness
(22nd) and natural resources (37th). Its development has been complemented by the expansion of
domestic tourism among the Philippines. Recent economic growth in the economy has helped to
encourage domestic tourism. According to government figures, the number of foreign visitors arriving in the
first three quarters of 2018 was 5.4 million.

From an economic point of view, tourism is very attractive as it leads to jobs, revenue and
foreign exchange. This interpretation, however, lacks the socio-cultural, economic and architectural
impacts. In terms of land usage, unchecked tourism contributes to overcrowding, overdevelopment and
emissions.
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Background of the Study

Philippines is an archipelagic country composed of 7,641 islands with 82 provinces divided in 17


regions. The country is known for having its rich biodiversity as its main tourist attraction.  Its beaches,
heritage towns and monuments, mountains, rainforests, islands and diving spots are among the country's
most popular tourist destinations. The country's rich historical and cultural heritage, including its festivals
and indigenous traditions, are also one of the attractions of Philippines. Popular destinations among tourists
are Cebu, Boracay, Palawan, Siargao, and many more.

The country is a biodiversity hotspot, having the world's highest endemism rate for bird species,
and one of the highest for mammals and flora, garnering numerous titles related to tourism.country is also
home to one of the New 7 Wonders of Nature, the Puerto Princesa Subterranean River National Park, and
one of the New 7 Wonders Cities, the Heritage City of Vigan.

As the Department of Tourism (DOT) launches a refreshed “It’s More Fun in the Philippines”
advertising campaign, a global survey indicated the challenges to the country’s goal of becoming a major
tourism player. This includes overcoming foreigners’ perceptions about the country’s rampant poverty, lack
of adequate infrastructure, traffic congestion and safety risks.

According to the Philippines Statistics Authority (PSA), tourism industries contributed 12.7 percent
to the Philippine economy in 2018.It is clearly seen that tourism is an important sector for Philippine
economy. Tourism as a product and service oriented industry, could generate widespread benefits and
impacts to the economy and society. It could contribute to the achievement of Millennium Development
Goals (MDGs) particularly those concerning poverty alleviation, environmental conservation, and
generation of employment opportunities for women, indigenous communities and young people. Further,
tourism could be a source of revenue (foreign exchange earnings, tax revenue) to the government and
because of its multiplier effect, could provide opportunities for local economic development (LED). The
direct, upstream, and downstream industries involved in tourism activities have the potential for creating
sectorial linkages and economic opportunities in the localities.

Tourism industry in the Philippines has been identified as one of the powerful engines for a strong
and sustained economic growth up to this year, 2020.. To determine whether the Philippine tourism
industry is moving towards sustainable development through the years the researchers have come up to an
idea to explore the influence of foreign tourist in the tourism industry of the Philippines. The study will
sought to know how the foreign tourists affect the Philippine economy particularly in the field of tourism.
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Statement of the Problem

 What is the importance of having the influence of foreign tourist to the Philippine tourism industry?

 What are the benefits of having foreign tourist to the Philippine tourism industry?

 What are the possible outcomes of having the influence of foreign industry to the Philippine tourism
industry?

 How will the influence of having foreign tourist will have an impact to the Philippine tourism industry?
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SIGNIFICANCE OF THE STUDY

This will benefit this study to:

 Foreign Tourists - This research would help international tourists to learn about the other destinations in
the Philippines, and they may also be aware of the degree to which they have an influence on the
Philippine tourism industry.

 Philippine Tourism Industry - This study can be of interest to the Philippine Tourism Industry as it can be
used as a guideline to what foreign tourists are searching for in our current generation destination and how
much foreign tourists are impacting on tourism here in the Philippines.

 Future Researchers - The study would act as a guideline in their analysis work, which might be useful
and related to this.
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REVIEW OF RELATED LITERATURE

LOCAL LITERATURE

Tourism industry in the Philippines has been identified as one of the powerful engines for a strong and
sustained economic growth. To determine whether the Philippine tourism industry is moving towards
sustainable development, this paper explores the evolution of the tourism industry in the Philippines by
tracing its historical transformations and determining its typology. Four major periods has been recognized,
namely: 1] pre-martial law era (years before 1972); 2] martial law era (1972-1986); 3] post-martial law era
(1986-2000); and 4] 21st century era (2001-present). The eras are based on the country's major political
regimes. Corresponding events and numerous initiatives undertaken by the government agencies, non-
government organizations and private sectors that significantly affect the tourism industry are described
and analyzed. It is concluded that tourism is a well established industry in the Philippines that contributes to
an inclusive economic growth of the country. The continued concerted efforts of all the stakeholders of the
industry in the implementation of all these initiatives will surely lead to a sustainable Philippine tourism.

https://www.researchgate.net/publication/314464914_Philippine_Tourism_Evolution_towards_Sustainability

This study was conducted to investigate the determinants of international tourism demand for the
Philippines. This study employed a double-log augmented form of gravity model estimated using the robust
random effects model. Results revealed that tourist arrival in the Philippines are generally increasing from
2001 to 2012. Empirical estimation was conducted to determine factors affecting Philippine tourism
demand. These factors include income, market size, and distance. Relative prices was also identified which
includes cost of living and price of goods and services in the Philippines and other related tourism
destination like Malaysia, Indonesia and Thailand. Supporting variables like direct flights, conflict,
commonality in language and common colonizer between the Philippines and source of origin of the tourist
was also examined. Furthermore, it also includes impact of calamity in the tourist home country and
common membership to ASEAN.

Empirical results show that tourist inflow is positively and significantly affected by income of the origin
country and is reduced by population and distance. Relative low prices of tourism in term of cost of living
and prices of goods and services in the Philippines have no effect in attracting inbound tourist.
Furthermore, international demand for Philippine tourism is not affected by relative prices of tourism in
Malaysia, Indonesia and Thailand as the competing tourist destinations. Conflict and common colonizer
between Philippines and country of origin are not significant determinants of international tourism demand.
Among the variables, direct flights turned out to be the most significant factor that can contribute to the
increase in tourism demand of the Philippines.

https://mpra.ub.uni-muenchen.de/55294/1/MPRA_paper_55294.pdf
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The Philippines has a rich diversity of attractions, yet its performance as an international tourist destination
remains disappointing and appears to be linked to the country’s history of political instability. Ongoing
uncertainty and possible turbulence ahead associated with a change of government raise questions about
future prospects. An examination of tourism, focusing on obstacles to overcome within the context of wider
conditions, is thus timely and the subject of this paper. After an opening section which provides background
information about the country and tourism there, critical determinants of the effective functioning and
growth of countries as tourist destinations are identified. Such considerations are then discussed within the
context of the Philippines with particular emphasis on questions of politics and their consequences. The
analysis highlights distinctive qualities of the Philippines, but also affords more general insights into
facilitators of and impediments to destination development and especially those of a political character. A
case study methodology was selected as suitable for the purpose and findings are based upon evaluation
of material in the public domain.

http://www.chios.aegean.gr/tourism/VOLUME_6_No2_art09.pdf

This study explores tourism in the Philippines. It first examines the history, current development and
problems of the tourism industry. Second, it examines nature –related tourism on Luzon Island. This study
looks at nature-related tourism operations based on three perspectives: the resource managers, the
operators and the visitors. A model developed by Bottrill and Pearce in British Columbia which focuses on
these three perspectives is applied to the six case study areas in this study. The majority of the case study
areas are popular tourist destinations on Luzon Island and are within the priority sites for more tourism
development. Four of the case study areas are established national parks and the other two are on public
land. A variety of research methods were used in this research. Interviews were conducted with resource
managers. Questionnaire surveys were conducted with operators and visitors at each of the six case study
areas. An archival search was conducted to support the primary data collected through interviews and
questionnaire surveys. Resource managers interviewed in this study recognised the benefits and costs of
tourism in the Philippines. They also acknowledged the problems and the opportunities for development of
the tourism industry. Tourism can bring many benefits, however, the resources on which it depends should
be protected in order to sustain it. With regard to nature-related tourism activities in the six case study
areas on Luzon Island, I found that they could not be classified as ecotourism. The majority of the
operations are undertaken within protected areas and the majority of the operators practised sensitive
management. However, the operations lack an education component for them to be classified as
ecotourism. Education is an essential element of an ecotourism operation as ecotourism is viewed to
provide learning experiences to visitors while providing benefits for the conservation of resources and the
local people.

https://researcharchive.lincoln.ac.nz/handle/10182/1607
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The concept of destination branding and its impact to tourist influx has been explored by many scholars
who argued that the tourists’ demand for “experience economy” has driven destinations to market
themselves as a unique brand. Using this as a framework, this study explores the status of Philippine
cultural tourism and assesses the challenges and orientations that pervade in its practice, which could be
developed to attain the country’s developmental goals. This study proposes feasible action plans that could
be taken to address the identified challenges that center on inauthentic and unsustainable tourism
products. By looking into the existing craft industry, which acts as a marker of destination branding, this
work examines the challenges that its cultural tourism sector is facing in relation to the growing ecotourism
capital. Conceptually, this study argues that the Government Tourism Policies have a direct impact on the
level of Cultural Tourism Development of a region. It also affects the Tourism Orientations of both the
tourist and the service provider. The primary contribution of this work is a matrix that presents the current
challenges and orientations towards the cultural tourism sector as perceived by local tourism operators and
craft industry members.

https://www.tandfonline.com/doi/abs/10.1080/1528008X.2015.1127194
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FOREIGN LITERATURE

As people’s increasing demands for tourism, tourism industry is developing rapidly, and gradually becomes
one of the pilot industries of the country, so the researches on tourism have been paid deep attention by
the academia, enterprises and government. Since the 1960s, the research of the tourism destinations
including the scenic spots has gradually extended to the aspects of the tourism environmental carrying
capacity, tourist satisfaction, resource development and ecological protection etc, so the paper should be
helpful to the healthy and sustainable development of the tourism by understanding the environmental
pressure, the development potential of tourism scenic spots and would review the ideas from three aspects
of tourist environmental carrying capacity, tourist satisfaction, tourist resources exploitation and the
sustainable development, so as to comprehend the current research status and discuss the prospects of
the evaluation of tourism destinations.

https://www.scitepress.org/Papers/2016/64499/64499.pdf

The tourism industry remains one of the important sectors expected to continually generate revenues and
contribute to Malaysia’s economic growth. The competitive situation within the tourism industry worldwide
requires Malaysia to a develop strategic marketing strategy in line with tourist’s preference to sustainably
retain its reputation as one of the favourable tourist destinations in the region. A review of the literatures
reveals that tourism is an image-driven industry, where tourists assess their travel experience as a whole
and they associate destinations with the entire ranges of local producers and suppliers. Service failures in
tourism industry are inevitable, hence this study attempts to examine the relationships between Service
Recovery Satisfaction and post Destination Image from the perspectives of tourists. Such efforts would
make tourism policy makers aware of the service recovery practices undertaken by the tourism
organisations and collaborate with them to enhance the destination image. Based on the premise that
customer loyalty has great benefits to entities such as tourist destination, this study develops a model to
evaluate the effect of Satisfaction with Service Recovery on the Loyalty Intention of tourist and the
relationship between Destination Image and Loyalty Intention. Randomly selected respondents from the
population of international tourists departing from international airports are selected to be involved in the
study. Factor Analysis was used to test the factorial validity of constructs and Structural Equation Modelling
was used to test the goodness of the proposed hypothesised model designed to consider Service
Recovery, Destination Image and Loyalty Intention simultaneously. Findings of this study will provide useful
insights to tourism organization pertaining to appropriate strategies that should be undertaken by hoteliers
to improve the image of the destination and ultimately influence tourist positive post-visit behaviours such
as repurchase and dissemination of positive word-of-mouth.

https://academic.microsoft.com/paper/2991699089/reference/search?q=EXAMINING%20THE
%20STRUCTURAL%20RELATIONSHIPS%20OF%20SERVICE%20RECOVERY%2C%20DESTINATION
%20IMAGE%20AND%20BEHAVIOURAL%20INTENTIONS%20OF%20FOREIGN%20TOURISTS%3A
%20A%20PROPOSAL&qe=Or(Id%253D1965574139%252CId%253D2036063909%252CId
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%253D2101937718%252CId%253D2043947871%252CId%253D589922701%252CId
%253D2044352597%252CId%253D1549078745%252CId%253D2163944013%252CId
%253D2128422767%252CId%253D2075271355%252CId%253D2008135122%252CId
%253D2045345365%252CId%253D2035082901%252CId%253D2116671090%252CId
%253D2105420938%252CId%253D2034194585%252CId%253D2062262083%252CId
%253D1970284708%252CId%253D2620800585%252CId%253D2486694359%252CId
%253D1964297606%252CId%253D619008942)&f=&orderBy=0

Although tourism sector has significant contribution to world economy recently, the government might have
to be aware of some factors which could decrease its contribution, for instance terrorism. Hence, this thesis
has a purpose to analyse the influence of terrorism type on tourism sector in every terrorism impact group
because it is still unknown whether all of those terrorism types have similar impact on tourism or not.
Besides that, this thesis also analyses the impact of terrorism effectiveness and media coverage factors on
foreign tourists' decision. By using Tobit regression method, this study finds that not all type of terrorism
has negative eect. Furthermore, media coverage might influence tourists' decision, particularly when they
address the fame of terrorist. In conclusion, it might be important for government to release regular update
if terrorism accident occurs because media frequently spread the rumours quickly if the government are
late to do that. Hence, it could influence foreign tourists' thought of the accident and they might postpone
their decision to travel because of it.

https://academic.microsoft.com/paper/2953083834/related/search?q=INFLUENCE%20OF
%20TERRORISM%20RISK%20ON%20FOREIGN%20TOURISTS%27%20DECISION-MAKING&qe=Or(Id
%253D2942899856%252CId%253D2201440376%252CId%253D2964672960%252CId
%253D2417801509%252CId%253D1990755209%252CId%253D1672043520%252CId
%253D2946514487%252CId%253D42577284%252CId%253D338513073%252CId
%253D2048830185%252CId%253D1515986280%252CId%253D2091563799%252CId
%253D2344039973%252CId%253D358572007%252CId%253D2461419746%252CId
%253D2942208335%252CId%253D2557145876%252CId%253D2895542505%252CId
%253D2064696436%252CId%253D1520835173)&f=&orderBy=0

When learning a foreign language, words that are the hardest to learn are often the easiest to forget. Yet,
there is also evidence that more challenging learning contexts can lead to greater long-term retention.
Here, we investigate the effect of language difficulty on vocabulary retention by teaching participants novel
words that varied in both imageability and similarity to a known language over a period of four weeks. We
found that easier words (high-imageability and familiar) were generally retained better than harder words
(low-imageability and unfamiliar). However, when words were fully learned during training, the more difficult
unfamiliar words were later recalled with higher accuracy than easier familiar words. The effect of language
difficulty on vocabulary retention therefore varies depending on how well words were initially encoded. We
conclude that greater challenges can reap greater long-term rewards so long as learners establish a strong
foundation during initial acquisition.
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https://academic.microsoft.com/paper/2997773933/reference/search?q=Language%20Difficulty%20and
%20Prior%20Learning%20Influence%20Foreign%20Vocabulary%20Acquisition.&qe=Or(Id
%253D1951724000%252CId%253D1997161938%252CId%253D2039311355%252CId
%253D2103403153%252CId%253D2008457707%252CId%253D2162764535%252CId
%253D2083804014%252CId%253D2096576379%252CId%253D2110995926%252CId
%253D2509186279%252CId%253D2076431357%252CId%253D2041518593%252CId
%253D2082070244%252CId%253D2163703049%252CId%253D1988816683%252CId
%253D2086240363%252CId%253D2034466988%252CId%253D2144250294%252CId
%253D2102327740%252CId%253D1978657485%252CId%253D2049133515%252CId
%253D2098883061%252CId%253D2032355206%252CId%253D2130130818%252CId
%253D2078672925%252CId%253D2035551983%252CId%253D2066980941%252CId
%253D2049626874%252CId%253D2486097614%252CId%253D2079874074%252CId
%253D2013057865%252CId%253D1589104508%252CId%253D1966739591%252CId
%253D2337710452%252CId%253D2050969262%252CId%253D2001224153%252CId
%253D2170271063%252CId%253D2136064932%252CId%253D2108296773%252CId
%253D1970674470%252CId%253D2090393017%252CId%253D1997688575%252CId
%253D1650760832%252CId%253D2498306740%252CId%253D2591307528%252CId
%253D1996983305%252CId%253D1969921131%252CId%253D2949175093%252CId
%253D2792144349%252CId%253D2058166043%252CId%253D2041070062%252CId
%253D2029163078%252CId%253D2313404745%252CId%253D2885875110%252CId
%253D2999619708%252CId%253D2611186025%252CId%253D1969331351%252CId
%253D2617227182)&f=&orderBy=0

The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views
that invite both locals and foreigners to participate in tourism-related activities. According the Department of
Tourism (2011), the industry is one of the three largest industries in the country. This study aims to
measure the economic impact of tourism to the Philippine economy through the use of input-output
analysis. The tourism industry is mainly a consumer of inputs and producer of final goods, hence, its impact
on the output is relatively higher. Also, its interdependence with other industries as shown by the linkage
indices prove that other sectors do benefit from the tourism sector. The government should promote
tourism in the country. The past government administration applied holiday economics to help boost
tourism domestically. The current administration may choose to consider continuing the program.

https://www.researchgate.net/publication/288577441_An_economic_analysis_of_the_Philippine_tourism_in
dustry
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Scope and Delimitation

The scope and delimitation of this study The Influence of Foreign Tourists to the Philippine Tourism
Industry limits only to the Grade 11 of Philippine Christian University of the School Year 2019-2020.
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Terms and Concepts

 ACCURACY - the quality or state of being correct or precise.


 ACKNOWLEDGE - accept or admit the existence or truth of.
 ACQUISITION - an asset or object bought or obtained, typically by a library or museum.
 ARCHIPELAGO - a group of islands
 ARCHIVAL - relating to or constituting archives.
 ANALYSIS - detailed examination of the elements or structure of something.
 BENEFIT - an advantage or profit gained from something.
 CASE STUDY - a process or record of research in which detailed consideration is given to the
development of a particular person, group, or situation over a period of time.
 DELIMITATION - the action of fixing the boundary or limits of something.
 DESTINATION - the place to which someone or something is going or being sent.
 ECONOMIC GROWTH - an increase in the amount of goods and services produced per head of the
population over a period of time.
 EMISSION - the production and discharge of something, especially gas or radiation.
 ESSENTIAL - absolutely necessary; extremely important.
 EVIDENCE - the available body of facts or information indicating whether a belief or proposition is true or
valid.
 FEASIBLE - possible to do easily or conveniently.
 GUIDELINE- a general rule, principle, or piece of advice.
 IMPACT - the action of one object coming forcibly into contact with another.
 IMPLEMENT - a tool, utensil, or other piece of equipment, especially as used for a particular purpose.
 INDUSTRY - is a sector that produces goods or related services within an economy.
 INTERDEPENDENCE - the dependence of two or more people or things on each other.
 INVESTIGATE - carry out a systematic or formal inquiry to discover and examine the facts of (an incident,
allegation, etc.) so as to establish the truth.
 LANGUAGE - the method of human communication, either spoken or written, consisting of the use of
words in a structured and conventional way.
 MEDIA - the main means of mass communication (broadcasting, publishing, and the Internet) regarded
collectively.
 SCOPE - the extent of the area or subject matter that something deals with or to which it is relevant.
 SIGNIFICANT - sufficiently great or important to be worthy of attention; noteworthy.
STAKEHOLDERS - a person with an interest or concern in something, especially a business.
 TERRORISM - the unlawful use of violence and intimidation, especially against civilians, in the pursuit of
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political aims.
TOURISM - is travel for recreational, leisure, or business purposes. 
 TYPOLOGY - a classification according to general type, especially in archaeology, psychology, or the
social sciences.
VOCABULARY - the body of words used in a particular language.