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Domestic Tourism Boosting Philippines Tourism Industry

Domestic Tourism Boosting Philippines Tourism Industry

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Published by anicia221

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Categories:Business/Law, Finance
Published by: anicia221 on Oct 21, 2009
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01/31/2012

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Domestic Tourism Boosting Philippines Tourism Industry (affect)
Tourism industry in the Philippines has been able to maintain the positive growth trend amid global crisis, mainly due to the significant increase in domestic tourism.
Tourism Secretary, Ace Durano, has said that the tourists looking for leisure travel in the Philippines are showing interest in the domestic destinations,driving growth in the country's tourism industry, as reported byphilstar.Philippines' domestic tourism has been growing at the rate of 18% per annum since 2005, when it contributed a total of P800 Million to the total tourismtraffic. According to the government projections, the country will witness around 3-3.1 Million overseas tourists and 8-8.5 Million domestic tourists in2009, totaling to nearly 11 Million tourist arrivals. This will represent an increase of 9% from the 2008's figure. During the first two months of 2009,tourists from France increased by 30%, China by 60% and Russia by 40%, as per the government data.Even the affluent Filipinos are opting for local tourist destinations over the overseas destinations; thereby, diminishing the impacts of recessionarytrends on the Philippines tourism industry. Consequently, the tourism industry and various tourism-related businesses in the country are continuouslyexpanding amid recession.However, tourist arrivals from the US and Japan have considerably dipped since 2008, but the Philippines tourism industry was the least affected, asthe rising number of domestic tourists and the steady number of visitors from Russia, China and France offset the decline.The government of Philippines is collaborating with local governments to boost the tourism industry, as it is considered a key industry for generating jobs and opportunities throughout the nation.The commitment made by the country's President was strengthened in the "super regions" concept, developing Central Philippines as thetourism hub by upgrading several airports as well as the Republic Nautical Highway System. Moreover, the domestic tourism will also take a boost fromthe opening of new Ro-Ro ferry routes, bridges and roads that are aimed at spurring the inter-island trade. Less travel time, low transportation costsand improvement in distribution of basic goods are also likely to play a crucial role in fueling growth in the domestic tourism. At present, physicalinfrastructure and environmental consciousness are the major constraints before the tourism industry in the Philippines. Now, the increasing demandfor domestic destinations is calling for the expansion of infrastructure; thereby, ensuring the sustainability of the tourism destinations and landmarks inthe Philippines."
 
Philippines’ rank in tourismcompetitiveness slips (benefits)
 The Philippines’ world ranking on competitiveness in the travel and tourism industry fell five notches this year,according to the World Economic Forum (WEF) study released on Wednesday.In its Travel and Tourism Competitiveness Report 2008, the Swiss-based forum reported that the country ranked86th among 133 countries in the world. It scored 3.73 points in the overall travel and tourism competitivenessindex.In the previous report, though, the Philippines ranked 81st in the study. The 2008 study said that among the country’s strengths are its natural resources—it is ranked 23rd for the numberof World Heritage sites and 40th in terms of having indigenous species in the country. The Philippines also benefits from excellent price competitiveness, which ranked 16th with low prices overall—particularly hotel rates, low-ticket taxes and airport charges.“There are also some aspects of the policy rules and regulations regime that are conducive to the development of the sector, such as few visa requirements for foreign visitors [ranked third] and bilateral air service agreementsthat are assessed as comparatively open [28th], although other areas—such as the protection of property rights,rules related to foreign investment, and the difficulty of starting a business in the country—remain a challenge,”according to the World Economic Forum.Other matters of concern in the Philippines are safety and security, ranking 113th, health and hygiene levels 87th,and transport, tourism and information and communication technology (ICT) infrastructures that require upgrading.“Our study aims to measure the factors that make it attractive to develop the travel and tourism industry of individual countries,” Jennifer Blanke, Senior Economist of the forum’s Global Competitiveness Network said.Blanke said the top ranked countries like Switzerland, Austria, Germany, France and Canada demonstrate theimportance of supportive business and regulatory frameworks, coupled with world-class transport and tourisminfrastructure and a focus on nurturing human and natural resources for fostering an environment that is attractivefor developing the travel and tourism industry.
Success factors
 Thea Chiesa, head of aviation, Travel and Tourism at the World Economic Forum, said that to thrive, or evensurvive, in this period of uncertainty and change, both the travel and tourism industry, and destinations would needto approach the challenges in a holistic and systemic manner.

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