CHAPTER 1: TOURISM INDUSTRY AND ECONOMY
from Hong Kong and Japan, earning the nickname "Pearl of the
Tourism is a dynamic and competitive industry that requires the ability
to adapt constantly to customers’ changing needs and desires, as the
customer’s satisfaction, safety and enjoyment are particularly the
focus of tourism businesses.
Tourism is the activities of people traveling to and staying in places
outside their usual environment for leisure, business or other
purposes for not more than one consecutive year.
History/Overview
Tourism in the Philippines traces its origins during the ancient times
when the first set of people chose to migrate through land bridges,
followed by the other sets of migrations from the Malayan
archipelago in the south and Taiwan in the north.
The Philippines is the third largest English speaking country in the
world. It has a rich history combining Asian, European, and
American influences.
1521
- Prior to Spanish colonization, the Filipinos had a rich culture and
were trading with the Chinese and the Japanese.
1571
- Spain's colonization brought about the construction of
Intramuros, a Walled City comprised of European buildings and
churches, replicated in different parts of the archipelago.
1898
- The Philippines became the first and only colony of the United
States. Following the Philippine-American War, the United States
brought widespread education to the islands.
Late 19th to early 20th century
- The tourism industry first truly flourished to the influx of
immigrants from Europe and the United States.
- It was listed as one of the best countries to visit in Asia aside
Orient Seas".
1950s
- The second wave of tourist influx flourished but declined
drastically during the dictatorship era. After the People Power
Revolution, the tourism industry continued to decline due to the
domino effect caused by the dictatorship.
2011
- The Department of Tourism recorded 3.9 million tourists visiting
the country, 11.2 percent higher than the 3.5 million registered in
2010.
2012
- The Philippines recorded 4.27 million tourist arrivals, after the
Department of Tourism launched a widely publicized tourism
marketing campaign entitled "It's More Fun In the Philippines".
2015
- The tourism went at its peak with having 5,360,682 foreign
million tourists. The industry continued to grow in 2017, but the
growth rate from Western tourists drastically decreased due to
an ongoing drug war and the declaration of martial law in
Mindanao.
The 2017 Travel and Tourism Competitiveness Report of the World
Economic Forum ranked the Philippines 79th out of 136 countries
overall. The country's best rated features were price competitiveness
(22nd) and natural resources (37th).
The official heritage properties of the Philippines are listed under the
National Government's Philippine Registry of Cultural Property
(PRECUP), Pinagmulan: Enumeration from the Philippine Inventory
of Intangible Cultural Heritage, and the National Integrated Protected
Areas System (NIPAS). Properties registered among those lists are
heralded as possible nominations to the UNESCO World Heritage
List, where at least 16 declarations containing 19 properties have
been recognized by UNESCO through its four different lists abound in Philippine soil. The country's mineral deposits can be
(UNESCO World Heritage List, UNESCO Memory of the World classified into metals and non-metals. Our metal deposits are
Register, UNESCO Intangible cultural Heritage List, and UNESCO estimated at 21.5 billion metric tons, while non-metal deposits are
Biosphere Reserve Registry). . projected at 19.3 billion metric tons.

Fishery Resources
Travel and Tourism Industry in the Philippines
- The Philippines is definitely rich in marine resources.
 Tourism is one of the major contributors and important sector to
- Of the 2,400 fish species found in the country, 65 have good
the economy of the Philippines, contributing 10.6 to the
commercial value.
Philippine GDP in 2015.
- Other marine products include corals, pearls, crabs and
 The country's rich biodiversity is the main tourist attraction of the
seaweeds.
Philippines. The country's rich historical and cultural heritage is
also one of the attractions of the Philippines. Philippine Product Portfolio
 Philippines is an archipelagic country composed of 7,641 islands
with 82 Provinces divided in 17 regions.
1. Nature Tourism
2. Cultural Tourism
Scope
3. Sun and Beach Tourism
4. Cruise and Nautical Tourism
Travel and tourism
5. Leisure and Entertainment Tourism
- is the largest service industry globally in terms of gross revenue
6. MICE and Events Tourism
and foreign exchange earnings.
7. Heath, Wellness, and Retirement Tourism
- It is also one of the largest employment generators in the world.
8. Diving and Marine Sports Tourism
- It has been a major social phenomenon and is driven by social,
9. Education Tourism
religious, recreational, knowledge seeking and business interests
and motivated by the human urge for new experience, adventure, Types of Tourism in the Philippines
education and entertainment.
- Travel and tourism is one of the fastest growing industries and a
1. Beach and Diving Tourism
leader in many countries.
- Beach tourism is currently the major tourist draw of the
Philippines.
Resources
2. Hiking Tourism
Natural Resources
- Hiking is a rising form of tourism in the Philippines, especially
- The Philippines is rich in natural resources. It has fertile, arable
among locals and Western foreigners.
lands, diverse flora and fauna, extensive coastlines, and rich mineral
- Among the most famous hiking areas in the country are Mount
deposits.
Apo, Mount Pinatubo, Mount Halcon, Mount Banahaw, Mount
- The country's six major crops are rice, corn, sugarcane, coconut,
Maikling, and Mount Pulag.
abaca and tobacco.

Mineral Resources
- Except for petroleum and a number of metals, mineral resources
3. Research and Education Tourism
- Due to the diverse number of flaura and fauna of the country,
researchers from around the world have flocked various
biodiversity sites in Philippine environmental corridors.
- Various universities in the country have been influential in
research tourism, especially for graduate students and
students seeking better review centers.
4. Arts and Crafts Tourism
- Arts and crafts tourism in the Philippines has recently
expanded following several attempts to establish a cultural
renaissance.
- Philippines was conferred its first UNESCO Creative City
through Baguio in 2016.
5. Pilgrimage Tourism
- The Philippines is the Catholic pilgrimage capital of Asia,
possessing hundreds of olden churches, most of which were
established between the 15th to 19th centuries through the
earthquake baroque architecture.
- Historic mosques, temples, and indigenous laces of worship
such as dambanas are also present in the country.
6. Fiesta Tourism
- The country has been known as the traditional capital of the
world’s festivities and the capital of fun due to the thousands of
festivals which happen in the country, most of which are
annual spectacles.
- Among the most famous of these events are the Sinulog
Festival of Cebu, Kadayawan Festival of Davao, Ati-atihan
Festival of Aklan, Dinagyang Festival of Iloilo, Panagbenga
Festival of Baguio, Moriones Festival of Marinduque, Pahiyas
Festival of Quezon Province, Obando Fertility Rites Festival of
Bulacan, Pintados Festival of Leyte, Sandugo Festival of
Bohol, Ibalong Festival of Bicol, MassKara Festival of Bacolod,
and the Giant Lantern Festival of Pampanga.
7. Wellness Tourism
- Wellness tourism has recently doubled its contribution to
Philippine tourism due to the rise of hilot (ancient Filipino art of
healing) practices in spas, bath houses and hotels.
- Hilot havens include Camiguin, Siquijor, and Antique, while
staycation destinations include the hotels of Manila, Bataan,
Batanes, Tagaytay, Baguio and Bukidnon.
- Staycation, or staying in hotels for relaxation purposes has
also become a trend, along with the increase of yoga, as
rooted to the Indian roots of many indigenous Filipino cultures.
Attractions
Immovable Tangible Heritage
The Philippines has at least 144 distinct ethno-linguistic
groups (all are classified as Filipinos, both mainstream and
indigenous, by the government), each having its own distinct cultures.
Each region of the Philippines has different traditions, honed and
conserved by numerous ethnic groups distinct from each other.
Intangible Heritage
The Philippines is widely regarded as the traditional capital of
the world’s festivities due to the thousands of festivals occurring in the
country annually. Festivals differentiate in the national level, regional
level, provincial level, municipal (town) level, city level, and barangay
(village) level.
The country currently possesses at least three UNESCO
intangible elements:
- Hudhud Epic Chants of the Ifugao, was declared by
UNESCO as one of the eleven great traditions of
humanity.
- Darangen chant of the Maranao people of Lake Lanao
- Punnuk tug-of-war Game of the Ifugao
As an archipelago composed of 7,641 islands, the Philippines
offers a range of attractions.
 The island of Luzon is considered the political and economic 7. Monuments;
center of the Philippines. The economy of Luzon is centered in Metro 8. Theme parks;
Manila, the national capital region. Manila was ranked 11th most 9. Historical trains and ships;
attractive city for American shoppers out of 25 Asia Pacific cities by a 10. Viewpoints.
Global Blue survey in 2012.
The Visayas, the central island group of the Philippines, is the
heart of the country’s biodiversity. The most popular beach destination
in Visayas is Boracay. In 2012, Boracay received the “best island”
award from the international travel magazine Travel + Leisure. Aside
from its white sand beaches, Boracay is also a popular destination for
relaxation, tranquility and an exciting nightlife.
Mindanao, the southernmost island of the Philippines, is
known for its mountain ranges, it is one of the best climbing
destinations in the Philippines. Mindanao is home to the country’s
highest mountain, Mount Apo. The mountain has a wide range of flora
and fauna, including the national bird, the Philippine eagle.

Economic Impact
The tourism industry generates substantial economic benefits
to both host countries and tourists’ home countries.

Tourist Attractions can:

1. Contribute to government revenues, direct contributions are
generated by taxes on incomes from tourism employment and
tourism businesses, and by direct levies on tourists such as
departure taxes.
2. Provide employment.
3. Stimulate infrastructure investment.
4. Contribute to local economies.
5. Provide foreign exchange earnings.

Other examples of Tourist Attractions are:

1. Forests, national parks and reserves of flora and fauna;
2. Communities of different ethnicities;
3. Constructions and structures (old prisons, libraries, castles,
bridges, skyscrapers, among others) and historical places;
4. Cultural and sports events;
5. Art galleries and museums;
6. Botanical gardens and zoos;