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THE EFFECTS OF
SOCIAL MEDIA IN THE
TOURISM INDUSTRY OF ILOCOS NORTE
A Research Study
In Partial Fulfillment
Of the Requirements for the Subject
______________________________
Bachelor of Science in Business Administration
Submitted by:
Norraine Gayle Almarez
Jayriz Andrea Dumlao
Benchel Pagaling
Jennifer Tuliao
Northwestern University
COLLEGE OF BUSINESS EDUCATION
Laoag City, Ilocos Norte 2900
CHAPTER 1
INTRODUCTION
Rationale
This research study aimed to assess the effects of Social Media to the tourism industry of
Ilocos Norte.
1.1. age;
1.2. gender;
2. What is/are the preferred social media platforms by tourists in deciding their travel
Theoretical Framework
This research is confined on the assessment of the effects of social media on the tourism
The study was conducted in Ilocos Norte and participated by the tourists in Ilocos Norte
within the period beginning ________ to 2020. A total of 100 respondents, selected through
Once this study will be completed, its success will not only be advantageous to the researchers
BSBA Students. The results of the study will help the BSBA student assess their
capacity, intellect, and skills which may be suited for work related to BPO. Furthermore, the
study will provide a great leverage for students to have the required skills for basic positions in
the outsourcing sector, even for future employment opportunities in the IT-BPO industry.
BSBA Professors. When the educators on the field of business know the perception of
students as to the BPO industries, they will be able to guide their students who are interested in
applying in BPO companies. Moreover, as educators, they will to design and enforce a
curriculum that will hone the skills and competence of students enrolled in business
administration.
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BPO Companies. The study will become a foundation and benchmark for the BPO
their hiring methods and styles. The students’ perceptions will help them determine their
Future Researchers. To those who are attempting to widen the scope of this study, this
Definition of Terms
the operations and responsibilities for a particular business process to a third-party service
provider.
resources to meet business goals and objectives. The term also refers to the management of a
business, i.e., management in all aspects. This includes finance, marketing, human resources, and
Economy. A system of organizations and institutions that either facilitate or play a role
in the production and distribution of goods and services in a society. Economies determine how
resources are distributed among members of a society; they determine the value of goods or
services; and they even determine what sorts of things can be traded or bartered for those
Employment. A relationship between two parties, usually based on a contract where work
is paid for, where one party, which may be a corporation, for profit, not-for-profit organization,
co-operative or other entity is the employer and the other is the employee.
Labor Force. The number of people who are employed plus the unemployed who are
Perception. The ability to capture, process, and actively make sense of the information
that our senses receive. It is the cognitive process that makes it possible to interpret our
CHAPTER II
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COLLEGE OF BUSINESS EDUCATION
Laoag City, Ilocos Norte 2900
This chapter presents the local and foreign studies and literature which are in
consonance with our study. These studies are proofs and evidence that the research we will
be conducting is viable.
For the past 25 years, the Philippines has witnessed high unemployment amidst low
to moderate growth. Unemployment stood at 4.5% in the 1970s, but increased significantly
after the economic crisis of the early 1980s, and peaked during the mid-1980s (see Felipe
and Lanzona 2006). While economic recovery in the latter half of the 1980s led to a decline
in unemployment, the economy’s poor performance in the early 1990s once again pushed
the country toward double-digit unemployment rates. Since 1980, the unemployment rate
has hovered between 8% and 11%. The Philippines’s weak capacity to create enough
jobs for its growing labor force, despite some periods of moderate growth, has led to the
lingering unemployment problem. Over the past two decades, much of the increase in the
labor force has been absorbed by an expanding services sector. The share in employment of
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the services sector increased from 38.9% in 1990 to 48.1% in 2005. In contrast, industry’s
share in employment remained virtually unchanged, at around 15–16% during the same
period. Analysts have pinpointed the blame on past economic policies that were carried out
to pursue industrialization and growth. For several decades, the industrial sector was
accorded heavy protection that inhibited backward integration, export expansion, and
Philippine government has openly acknowledged the need to address the country’s
unemployment problem and, thus, has set a target of creating about 1.5 million jobs a year
between 2004 and 2010, or a total of 10 million jobs by 2010. Early indications, however,
In 2004, about 977,000 new jobs were created, but since there were 1,289,000 new
entrants, an additional 312,000 were added to the already large pool of unemployed (Felipe
and Lanzona 2006). Further, in 2005 only about 455,000 additional jobs were created.
Although this led to a drop in the unemployed by 100,000, still total unemployment rate
remained high at 11.4%.1 Such inability to create enough jobs implies that the
issue. Recently, however, the government has ushered its support for sectors it considers as
In the 2006 Workforce Development Summit, the government identified nine key
employment generating sectors to enable the matching of the country’s skilled human
resources with emerging industries in the local and global markets. These are cyber
services, aviation, agribusiness, health services, mining, creative industries, hotels and
By identifying jobs and competencies that are currently in demand, the government
hopes to set up a system that would work with schools and training institutions to provide
While this appears to be a step the unemployment rate is based on the old definition,
which states that the total unemployed are “those who did not work and were reported
wanting and looking for work during the reference week.” A new definition was introduced
in April 2005, which defined the unemployed as those who possess all three criteria: (i)
without work; (ii) currently available for work; and (iii) seeking work, or not seeking work
due to being discouraged for lack of available work, awaiting results of job application,
unemployment depends not only on the specific mechanisms that the government
implements to support each of the nine sectors, but also on the capacity of each sector to
generate employment for future labor entrants. One of the key employment-generating
sectors identified is “cyber services”, a term that covers teleservices, e-services, information
technology (IT) outsourcing, and IT- and information communications and technology
(ICT)-enabled services, all of which are linked to business process outsourcing (BPO). The
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Philippine BPO industry measures its overall output in terms of total revenues, which
consists entirely of exports. The BPO sector is estimated to account for only 0.075% of the
economy’s gross domestic product (GDP) in 2000 but this increased to 2.4% in 2005. It has
been hailed by the government as having huge potential for generating employment in the
next five years. As of end-2005, the BPO sector employed 163,000 workers.
The government and the Business Processing Association Philippines (BPA/P) have
jointly forecast employment in this sector to rise by 38% annually between 2005 and 2010,
employing one million workers by 2010. This forecast implies that around 27% of all new
jobs in the country in 2010 would be generated by the BPO industry, which is not quite
While the Philippines is already part of a large global outsourcing industry (where
worldwide revenues amounted to $67 billion in 2005), the country’s capacity to benefit
from this huge and expanding sector will depend on several key factors, including the
quality of the existing and potential workforce, infrastructure support, and policy
environment. These factors will also determine how well the country can compete against
India, the leading BPO provider, and some emerging BPO providers such as People’s
Republic of China, Malaysia, Mexico, and Russia. It is worth noting that nearly 70% of the
BPO workers in the Philippines are in the contact center subsector. Since the minimum
qualifications for employment in the contact center are a college degree, good English
proficiency, and computer literacy, any college graduate can apply regardless of
educational background. As a result, the contact center industry may have attracted a
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number of college graduates whose training is directed toward other highly skilled
This paper aims to explore the status and trends in the BPO industry in the
Philippines, as well as to examine how the country fares vis-à-vis India and other leading
BPO providers. It performs a quantitative analysis of the potential impact of the BPO
framework.
The rest of the paper is structured as follows. Section II briefly discusses the profile
of the Philippine BPO sector, including the types of services, revenues, employment,
investments, and government support to the sector. Section III provides an overview of the
Indian BPO sector, to provide a benchmark for the Philippines and other countries aiming
to acquire a substantial share in the rapidly expanding global BPO market. This is followed
Section IV. Section V investigates the prospects of the BPO sector by performing an I-O
analysis on the sector’s intersectoral linkages, and an impact analysis on compensation and
employment given the sector’s expected revenue growth based on government and industry
projections. Section VI explores the employment dynamics in the BPO sector with
reference to the attrition rate and training requirements in order to examine if there will be
Finally, Section VII offers some conclusions. The technical appendix provides a
brief summary of I-O analysis. The analysis leads to the following main conclusions: (i) by
its very low intersectoral linkages, the Philippine BPO sector has very little interaction with
the rest of the economy; (ii) with a large increase in revenues, the total wage bill of the
sector as well as that of the other sectors will grow significantly; and (iii) in 2010, with a
workforce of around 500,000 to 600,000, the sector will provide around 11% of the jobs for
and it is continuously growing, with more and more BPO companies being set up in various
parts of the country year after year. Here are some quick facts showing just how big BPO
is in the country:
• In 2010, the Philippines was named the BPO capital of the world, with the highest
• This year, there are more than 1 million Filipinos employed full time in BPO
companies. There is an estimated number of 124,000 additional jobs created by the BPO
industry every year, and this number is expected to remain until 2016.
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• By 2020, World Bank projects the BPO industry to generate 11% of the Philippine
GDP.
Ever since the first call center was set up in the Philippines back in 1992, the BPO
industry has played a key role in providing jobs to thousands of Filipinos and in reviving
the Philippine economy. This industry has brought the Philippines to the map and shown
the Filipinos to be globally competitive in terms of work aptitude and skills, emerging as
The BPO companies operating in the Philippines are engaged in a wide range of
businesses. The call center sector makes up around 80% of this industry. Medical
transcription, IT and software development, finance and accounting, and other sectors
At present, the existing BPO companies in the Philippines range from start-up
enterprises to large global businesses looking to expand in Asia and in the country. All of
these companies are trying to adjust to the dynamics of the Philippine market and to meet
the specific needs of its Filipino employees, all while dealing with challenges trying to create
growth in the middle of many other BPO companies in the same industry and with a
Despite the challenges facing new BPO companies trying to establish their business
in the Philippines, the country holds the promise of continuously producing a globally
development.
New innovations are being developed to address the unique needs faced by
Philippine businesses. The use of HR and payroll software in the Philippines is gaining
momentum. BPO managers are realizing the need to simplify processes in order to
maximize resources and improve operation. With such developments in the Philippines, the
Creating Opportunities
Tourism has been a determining factor in the economic growth of Hungary recently
and it will continue to have a significant role in the future development of the country.
Although Hungary has great potentials in tourism sector, it is concentrated only on a few
places of the country at present, especially in the capital, Budapest. While tourism has
about 10% share in the national GDP production, most of it is generated in the capital. In
addition, to the center of the country, there are only a few places that are really known by
foreign tourists and thus are able to attract crowds. Such places are Lake Balaton, the
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largest lake in Europe; and the city of Debrecen, the second largest city in the country, with
its surroundings and several thermal baths. The aim of our paper is to analyze the
tendencies of Hungarian tourism, focusing on the festivals, and to follow the changes of the
tourism strategies, as well as the direct and indirect effects of the development of the
tourism industry on the economic growth of the country. In order to prepare our study, we
have collected information on tourism from the Central Statistical Office, from the
organizers of the different festivals throughout the country and from the National Tourism
Office. Based on our research, we intend to draw consequences on the sector and define
recommendations for further developments, because we believe that festivals can be the
solution for the sustainable economic and social development of several rural areas,
An Exploratory Study
and business topic. While advanced industrialized nations have been outsourcing
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manufacturing to the developing world for decades, the practice in the service sector
presents a threat to higher skilled jobs previously considered insulated from global
competition. Offshore outsourcing of white collar service sector work has traditionally been
limited to low-value added tasks such as processing credit card payments or call center
work. Recent headlines, however, suggest that higher skilled service occupations such as
accounting and computer programming are going offshore in large numbers. One evolving
area of the outsourcing market that suggests a greater number of professional occupations
are now at risk is business process outsourcing (BPO). BPO allows businesses the
and internally executed by third party service providers, including human resources,
finance and accounting, and supply-chain management. While discrete tasks within each of
these areas (e.g. payroll processing) have been outsourced in the past, the continued
transformed the extent to which parts of the production process can be divided and
relocated.
The suggestion that outsourcing will eliminate these jobs seems to have extended
public skepticism of free trade policy beyond lower and middle class workers to more
sentiment, finding that support of free trade among Americans earning more than
$100,000 a year has dropped from 57 percent in 1999 to 28 percent in 2004 (Despeignes 2
2004). Outsourcing became the topic of considerable political debate during the 2004
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presidential election, reflecting national concern over the loss of both low and high skilled
jobs. John Kerry wanted to “repeal the tax loopholes and benefits that reward Benedict
Arnold CEOs and companies for shipping American jobs overseas" (Weisman 2004), while
chief economist Gregory Mankiw brushed off outsourcing as “just a new way of doing
restrictive legislation has also focused a great deal of attention on outsourcing. However,
the majority of attention outsourcing has received comes from business literature, news
media, and the internet. One study found that during the five months between January and
May 2004, 2,634 U.S. newspaper articles addressed outsourcing and job loss fear (Amiti
and Wei 2004). According to a study by Deloitte consulting, negative media sentiment
Week, Fortune, Washington Post, The Economist, Forbes, and The Wall Street Journal
(Landis 2005).
the topic tends to be concerned with domestic job loss resulting from foreign competition.
A June 2003 Business Week article entitled “American Legislators Are Accusing India of
Stealing US Jobs”, illustrates a popular emphasis along these lines. Nonetheless, analysis of
outsourcing evidently centers on proving or disproving the notion that free trade is a win-
win situation. In fact, the first scholarly reaction to the new round of outsourcing surfaced
in The Journal of Economic Perspectives and addressed whether or not this contention
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holds true in the current context of global capitalism. The 3 salience of the debate is
demonstrated by the fact that economist Paul Samuelson, whose work in international
trade theory earned him the Nobel Prize in 1970, reversed his position arguing that U.S.
national income would be negatively affected if a country such as China or India achieved
Yet, economists have generally argued that during the first wave of outsourcing
displaced blue collar job would be offset by creation of higher value added service jobs and
cheaper goods. Underlying this logic is Joseph Schumpeter’s idea that the continuous
markets, products, and therefore, jobs are created at the expense of one another.
Specifically for the U.S., Daniel Bell (1973) emphasized the central importance of
knowledge as a source of innovation when describing the shift from a labor intensive
industrial economy to one based on information-driven services. Bell forecasted that a new
dominant class would form the core of the post-industrial occupational structure, made up
Critics, however, have argued that this characterization misrepresents the new
occupational structure. They argue that alongside the rise of well-paid knowledge workers,
there is a proliferation of low-wage, unskilled, white collar and service occupations. Thus
an increasingly polarized social structure may more accurately represent the occupational
transformation Bell forecast (Bluestone and Harrison 1984; Sayer and Walker 1992).
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Clearly, the lack of consensus and limited scholarship on the current wave of
outsourcing calls for more research that thoroughly addresses these substantive issues, 4
especially questions concerning whether or not high skilled jobs are indeed moving
overseas and whether this is good or bad for the U.S. economy.
While the focus on offshoring is a critical aspect of this thesis, this study also will
explore whether or not the blue collar vs. white collar distinction is relevant to the type of
work that is being outsourced offshore. That is, it may be the specific attributes of
commodities or services that are important to determining what jobs get outsourced,
In particular, I will focus on whether the division between the conception and
execution of a production process or service is a key feature of BPO. To this end, I will use
Harry Braverman’s theoretical framework in his seminal work, Labor and Monopoly
Capital (1979) to examine this hypothesis. Braverman was one of the first analysts of the
similarities between the process of deskilling of both blue collar and white collar work. He
argued that management appropriates control from workers by deepening the division of
labor, specifically the division between conception and execution. Braverman demonstrated
this idea by showing how the application of Taylorist scientific management principles to
both manual and white collar work impacted the autonomy and skill of craftworkers.
Braverman viewed the labor process and worker exploitation as the core of Marxist
theory, and thus sought to extend Marx’s analysis of manual labor to white-collar and
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service occupations. Using the example of clerical workers, Braverman argued that white-
collar occupations are subjected to the same processes of control as manual workers. Thus,
the outcome of applying the logic of scientific management to the office 5 results in
managers, engineers, and technicians performing the mental aspects of work, while clerical
However, Braverman penned his thesis before the intense period of globalization
and technological change. Hence, this thesis will explore whether his deskilling argument
the contemporary relevance of Braverman’s thesis to offshore outsourcing, this study will
also provide a more sociological focus to current research on outsourcing. Beyond a small
handful of panel discussions and conference roundtables, the outsourcing of white collar
and service jobs has yet to provoke a substantial response in sociology. An editorial in
Contemporary Sociology argues that “outsourcing is only one cause of job loss for U.S.
workers” and “one of the latest innovations in corporate profit making” (Miller and
Perucci 2004). Although sociologists have analyzed many of the conditions which have
globalization, and flexible production, they rarely have specifically addressed offshore
outsourcing itself. Indeed the lack of sociological research on this topic is rather surprising,
as well as the implications the increased outsourcing of white collar office processes
suggests for the organization of work in a global and information based society.
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outsourcing, and because the trend in increased outsourcing shows little sign of
diminishing, the objective of this study is to explore the impact of technology on the
interviews, and data compiled from recent outsourcing studies, this paper addresses three
basis research questions: (1) What is BPO? (2) Why and where is it happening? and (3)
The study begins with a closer examination of BPO that draws upon the existing
technology and the spatial location and division of labor. Next, theory is introduced as a
framework for directing attention to the predominant features of the relationship between
technology and labor control. This, in turn, may serve as basis for understanding more
about the types of work processes being outsourced and why they may be more amenable
to outsourcing. Following this section, methods are presented with a discussion of their
advantages and disadvantages. This study employs an exploratory method that utilizes
informant interviews, focus group, and secondary data to investigate the types of jobs
outsourced and the effects of BPO on the division of labor. Following the presentation of
methods, my analysis begins that examines what drives BPO, where it occurs, and its
consequences. The study concludes with a discussion of the main findings and suggestions
CHAPTER III
METHODOLOGY
This chapter describes the methodology of research study, supervision of the data
gathering instrument, and data analysis techniques, including collection of data, study
Research Design
The descriptive research method will be used in gathering the needed information
for this study. This method enables the researchers to interpret the meaning and
situation. This aims at obtaining complete and accurate information for the study and the
method adopted must be carefully planned. Since it is the fastest way to turn information
into knowledge and to describe things and events, this is suitable for our study entitled
Research Locale
The study will be conducted in Northwestern University since the respondents will
be the BSBA students of the said school. Northwestern University Laoag City (NWU) is a
The data gathering will be facilitated in the respondents’ room or in any place
where the respondents will choose to comfortably answer the survey questionnaire. The
study will be conducted in the Second Semester of the Academic Year 2018-2019. The
university is selected as the locale of the study because its proximity makes it convenient
The target population for this study is the majority of the total population of the
data sheet from the registrar office to determine the majority of the BSBA students.
Majority will be the greater number or specifically, in the legal sense, it will be 50% of the
samples by taking samples that are conveniently located around a location. The researchers
used availability (or convenience sampling), where the participants are all BSBA students
of Northwestern University.
The objectives of the study as well as the research questions have been used to guide the
respondents are literate and conversant with the issues addressed in this study. The
The first part of the questionnaire will be composed of questions related to the
demographic profile of the respondents. The second up to the fourth parts will include
advantages/disadvantages, respectively.
To determine the total number of respondent population, the researchers will obtain
a data sheet from the university’s Registrar’s Office indicating the overall number of
BSBA students. Once they get a copy, they will be able to get the majority number of
researchers to carry out research in their institution. After which, they will draft a request
letter asking for the consent of the respondents in participating in the data collection
process. The purpose of the study and the significance of the data collection exercise will be
will answer with the guidance of the researchers. After answering, these will be collected
Statistical Treatment
The set of questionnaire was structured using the Likert format with a five-point
response scale. A Likert Scale is a rating scale that requires the subject to indicate his or
The following numerical scale, range of values and descriptive interpretations will
be used to facilitate the interpretation of the computed mean and arrive at an accurate
findings:
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3 2.51-3.50 Agree
2 1.51-2.50 Disagree
The data gathered will be analyzed using frequency and percentage. Results of the
survey will be presented in tables. The weighted average mean will be employed to analyze
the perception of BSBA students on BPO. Once the results are obtained, relevant
literatures will also be included and discussed in correlation with the findings.
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Bibliography
Dear Respondents,
Greetings!
In this regard, may we request for your participation by answering the attached
Your contribution will be sincerely appreciated. The data gathered will provide useful
information in assessing the effects of social media in the tourism industry of Ilocos Norte.
Respectfully yours,
Benchel Pagaling
Jennifer Tuliao
QUESTIONNAIRE
ð below 18
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COLLEGE OF BUSINESS EDUCATION
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ð 18-25
ð 26-35
ð 36 and above
a. How many times have you toured around Ilocos Norte? ______ time/s
None
Friends
Family
Work colleagues
Romantic partner
Others: _________________________________________________________
c. What famous tourist destinations in Ilocos Norte have you visited? You may choose more
Bangui Windmills
Batac Museum
Batac Riverside Empanadahan
Cape Bojeador Lighthouse
Kabigan Falls
Kapurpurawan Rock Formation
Lapaz Sand Dunes
Malacañang of the North
Pagudpud beaches
Paoay Church (San Agustin Church)
Paoay Lake
Patapat Viaduct
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a. What social media application/site/forum do you refer to in planning your travels? You
Agoda
AirBNB
Booking.com
Display Advertisements
E-mail Advertisements
Facebook
Instagram
Traveler’s Personal Blogs
Traveloka
TripAdvisor
Twitter
YouTube
Others: ___________________________________________________________
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b. What social media information do you find relevant in making travel decisions? You may
The following are statements related in assessing the effects of Social Media to tourism
industry in Ilocos Norte. Kindly check () the best response applicable for each statement while
5 - Strongly Agree
4 - Agree
3 - Neutral
2 - Disagree
1 - Strongly Disagree
1
2 5
Strongly 3 4
Statements Disagre Strongly
Disagre Neutral Agree
e Agree
e
I always refer to social media in
making my travel destinations.
I find travel information on social
media more reliable and trustworthy
as against other mediums of
information (e.g. television, radio,
magazines)
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