STI COLLEGE TARLAC

Ninoy Aquino Blvd., San Vicente, Tarlac City

Factors that can Improve the GDP towards Tourism Industry in the Philippines

SUBMITTED BY:

BALAGOT, SHANIA MARY D.

SUBMITTED TO:

MS. ARROYO, JILLIAN MAE

BSHM 1A

2020 – 2021
 Table of Contents

Background of the Study 3-4

Statement of the Problem 5

SWOT Analysis 5-6

Alternative Courses of Action (ACA) 6-7

Recommendation 8
 This part of research paper presents the Background of the Study, Statement of the
Problem, SWOT Analysis, Alternative Courses of Actions (ACA), and Recommendation.

A. Background of the Study

Introduction

Traveling is one of the social activities of many people global love to do. For tourists,
traveling show them to different cultures and history, and at the same time, provides relaxation
and leisure. Each country boasts diverse tourist attractions and some only indigenous to the
place. The Philippines attracts travelers because of the abundance of islands and the bodies of
water surrounding the country. The Philippine tourism industry has come a long way,
particularly inbound tourism for the last ten years. With about 7,641 islands, it is a haven for
nature seekers who would like to experience touched and untouched beaches, and also there are
recreational activities, festival celebrations, and food culture that can be experience within the
country.

The public sector is a services provided for the population that are financed from public
money such as education, police, libraries, refuse collection and leisure or tourism facilities. The
public sector of travel and tourism organizations plays an important role in helping to promote
the attractive destinations for tourists and provide a range of services to encourage tourism
development in the country such as grants to start a new businesses and advice on marketing
strategies, finance, IT (Information Technology), and etc. Public sector bodies are not primarily
concerned with making a profit but have a wider social and economic aims such as creating jobs
through tourism and improving tourist facilities for foreign visitors and local people.

While in the private sector, the bulk of organizations working in travel and tourism
operate in this sector. Most accommodation providers, airlines, travel agencies, tour operators,
visitor attractions, train companies, airports and so on. Some are enormous companies but mostly
are the small and medium-sized enterprises (SMEs). The private sector is made up of
commercial enterprises that are in business to make money and have the 'profit maximization' as
their primary aim. Income from the sale of their products and services will hopefully be greater
than the costs of operating the business.
 This can be either taken as profit or re-invested in the business in order to build a solid
foundation for future success for owners, directors, employees and any shareholders who may
have bought a stake in the business. Private sector for travel and tourism businesses work with
the public sector to provide most of the facilities for visitors in tourist destinations. Public sector
bodies are working in partnership with the private sector by promoting the captivating
destinations to visitors in the whole country, providing facilities such as tourist information
centers and so on to attract possible visitors to come to the country.

Moreover, Foreign tourist arrivals back in 2008 were only about 2.9 million and in 10
years later, it reached 6.5 million arrivals in 2017. Of all the foreign source countries of tourist
arrivals, China was one of the leading countries next to South Korea, which accounted for
around 21.7 percent of the total foreign tourists in 2019. While the Philippines is way behind its
neighbor countries in terms of foreign tourists. In 2016, the countries like Thailand (33 foreign
visitors), Malaysia (27 foreign visitors), Singapore (16 million foreign visitors), Indonesia (12
foreign visitors), and Vietnam (10 million foreign visitors) was way more higher compared to the
Philippines with its 6 million visitors in regards of foreign tourists.

In terms of flourishing the Tourism Industry in the Philippines, the current administration
was implementing the program called ‘DuterteNomics’ of President Duterte’s Administration as
said in the given article. ‘DuterteNomics’ or ‘Dutertenomics’ is a catch-all term referring to the
socio-economic policies of President Rodrigo Roa Duterte of the Philippines. Part of the policy
includes the development of infrastructure and industries. The program also includes the
continuation of some projects started by the previous administration and the goals of the program
are to reduce poverty, encourage economic growth and reduce the congestion specifically
in Metro Manila.

Therefore, the aim of this study is to present a way of suggestions and recommendations
on how to further inflate or increase the current growth percentage of Gross Domestic Product
(GDP) of the Philippines in the next upcoming years and also knowing the strengths and barriers
that will be encounter within the said intention. After this study, the researcher expects that she
will learn and improve her learnings in regards of what is happening on tourism industry in the
Philippines.
 B. Statement of the Problem

Relating to the objectives of the study, this part aims to address different concerns regarding
in the perceived problem.

Main Problem:

When will the project ‘DuterteNomics’ that will increase the Gross Domestic Product
(GDP) of the Philippines through tourism industry be implemented?
Specific Problem/s:

1. How much will the GDP of the Philippines raise from private & public
employment?
2. How many employees are needed if the ‘DuterteNomics’ is implemented correctly?
3. How much is the needed fund for the infrastructure of ‘DuterteNomics’ including
the travel and tourism sector?

C. SWOT Analysis

This part aims to identify the strengths and weaknesses (internal factors) as well as the
opportunities and threats (external factors) of the study.

Strengths: Weaknesses:
 Attractive Places and destinations  Famous & busy destinations
 Skilled labor force the industry  Expensive Expenses
 Wide range of Terrestrial & Aquatic  Immense distances
ECO system  Stiff competition from neighboring
 Higher historical & cultural diversity tourism destinations like Vietnam &
 World class nature Singapore
 Skilled labor force in the industry  Higher intervention of Government
 In adequate infrastructure to support
 the growth of tourism sector
Opportunities: Threats:
 Fast growing economy  Climate change
 Investment in tourism infrastructure  Country remains in highly vulnerable
 Debt burden to natural disasters
 Tourism product diversification  Under developed infrastructure
 Opportunities for new markets &  In direct competition from other
tourism product substitutes
 Improving security and economy in  High competition from other Asian
the country through research and countries
development  Environments & social cultural
degradation due to mass tourism

D. Alternative Courses of Action (ACA)

This part aims to give a possible solution/s to all of the different concerns that being stated in
the Statement of the Problem section.

From the current GDP (Gross Domestic Product) growth of 6.3 percent in the 1st quarter
of 2017, the objective of the project ‘DuterteNomics’ is to bring this growth percentage up for
the tourism industry to be 8 percent to 9 percent growth starting in the year 2018. Here are some
of the government officials and the Department of Tourism (DOT) should consider:

1. The private and public employment can rise the GDP from 6.5 percent by the year 2021
based on the source of Asian Development Bank (ADB). Now in the year 2020, the GDP
of the Philippines is 2.0 percent because of the sudden occurring of the pandemic
COVID-19 that deals a lot of damage in economic growth of the Philippines. As per the
ADB report, in the year 2021 the GDP can rise up to 6.5 percent as the pandemic in the
country slows down and with this good news, the government should invest more in
tourism industry like investing on making a Virtual Reality Travel that can give the
travelers experience of reality emulation like the ones in Rome named “Sabre Labs”.
2. On the said news, the ‘DuterteNomics’ seen to create a 12 million jobs for the people in
the Philippines that makes the OWF (Overseas Filipino Workers) come home. Labor
Secretary Silvestre Bello III said that the Duterte government infrastructure campaign
will generate no less than 12 million new jobs over the next 5 years. The Chief of
National Economic and Development Authority (NEDA) Ernesto Pernia however,
clarified that the infrastructure boost will add more than 1 million new jobs to the usual 1
million jobs created per year, resulting in 12 million jobs for the 6 years of the Duterte’s
administration. The government can also create or build a job in the Philippines like the
Hands Free Travel in the country Japan wherein travel became a virtually hands-free
process to lessen the hassle hours in airports.
3. The needed fund for the infrastructure modernization program is P 8.4 trillion over the
next 5 years is rather unprecedented and ambitious and it can be done by funding massive
program and will depend on the Congress which has the task to identify the revenue
measures to bring the infrastructure projects to fruition. Davao City Rep. Karlo Alexei
Nograles, the panel chairman, positive on the chances of the legislative body in drawing
up the necessary revenues to bankroll the construction of the projects, initially costing at
least P 1.13 trillion in 2018, P 1.18 trillion in 2019 and P 1.29 trillion in the year 2020.
With this huge amount of fund money, the government can build a more kinds of jobs
that can rise up the GDP of the Philippines by adding jobs like Senior Travel in America
where the oldies can spend their precious remaining time in leisure and activities. Most of
the oldies are looking for a bucket lists, hassle free, convenient, safety, clean, and
valuable experiences. Experiential Travel where the traveler/s can experience once in a
lifetime by connecting to the history, people, and culture of a destination.

E. Recommendation
 This part of the case study is to recommend other possible solution/s to the perceived
problem/s in the study.

The researcher recommend that the government should give more attention to the tourism
industry being the 3rd large contributors in the Philippines economic system in the past few
years. Being the Philippines with its breathtaking and beautiful sceneries and destinations, the
government can improve it more by providing fresh and new marketing scheme to attract more
international tourists to visit the country. With that being said, these are the recommendations
that can be seen as a solution for keeping up the Gross Domestic Product (GDP) percentage
growth. Effectively implementing Remote Working and Digital Nomadism, this trend is well-
known in the Philippines for online-marketers, online tutors, and the like, and Streamlining
Travel that conducts such as retailers, banks, business registrations for Local Government Units
(LGUs) but sadly none so far is related to travel and tourism. Also the BlockChain that is
relevant for the travel industry where in the Philippines has only been linked to Bitcoin as of
2018. Furthermore, having a support from the World Travel and Tourism Council (WTTC) who
brings all together the major player in travel and tourism sector that works to raise awareness of
travel and tourism as one of the world’s largest sectors and generating approximating 10 percent
of global gross domestic product, the Philippines will surely be able to offer more jobs to its
people and profits to create a more flourishing and promising country.