Unit 6: TOURISM TRENDS

As discussed earlier, the tourism industry is dynamic. Thus, the trends should
be observed to be able to cope up to the demands of the changing world. Issues
pertaining to modernization is an inevitable element of which the tourism
industry must always be updated with.

This lesson discusses the trends on tourists and in Hospitality and Tourism

Outcomes:

At the end of the lesson, the student should be able to

1. Know and be aware of the trends on tourists and in hospitality and tourism
globally, domestic and locally.

Knowledge Content:

Trends in Hospitality and Tourism

It is identifiable that there are number of trends that are having and willing to
continue to have an impact on the hospitality and tourism industry. Some, like
diversity, have already been realized and are sure to increase in the future.

Here, in no particular order, are some of the major trends that hospitality
professionals indicate as having an influence on the industry.

1. Globalization
We have become the global village that was described a few years ago. We
may have the opportunity to work or vacation in other countries, and more
people than ever travel freely around the world.
2. Safety and Security
Since September 11, 2001, we all have become more conscious of our
personal safety and have experienced increased scrutiny at airports and
federal and others. Security of all types of hospitality and tourism
operations is critical and disaster plans should be made of each kind of
threat. Personal safety of guests must be the first priority.
3. Diversity
 Not only do we have a diverse employee population, but we also have a
diverse group of guests. Diversity is increasing as more people with more
diverse cultures join the hospitality and tourism workforce.
4. Service
It is no secret that service is at the top of guests’ expectations, yet few
companies offer exceptional service. World-class service does not just
happen, training is important in delivering the service that guests have
come to expect.
5. Technology
Technology is a driving force of change that presents opportunities for
greater efficiencies and integration for improved guest service. However,
the industry faces great challenges in training employees to use the new
technology and in standardization of software and hardware design.
6. Legal Issues
Lawsuits are not only more frequent, but they cost more if you lose and
more to defend.
7. Changing demographics
Population is gradually increasing. Many retirees have the time and money
to travel and utilize hospitality service.
8. Price Value
Price and value are important to today’s more discerning guests.
9. Sanitation
Sanitation is critical to the success of any restaurant and food service
operation. Guests expect to eat healthy foods that have been prepared in
a sanitary environment.
10. Ecotourism, sustainable tourism, and heritage tourism will continue to
grow in importance.
11. Globally, the number of tourist arrivals will continue to increase by
about 4 percent per year, topping 1 billion by 2010.
12. Governments will increasingly recognize the importance of tourism not
only as an economic force, but also as a social-cultural force of growing
significance.
13. More liberal treaties are being signed, which will move even more from
the public sector (government) to the private sector (involved industry
segments).
14. Technology will continue to advance, allowing even more information to
be available more quickly to more places around the world.
15. Marketing partnerships and corporate alliances will continue to
increase.
16. Employment prospects will continue to improve.
17. Ticketless air travel will continue to increase.
18. Travel and tourism bookings via the Internet will continue to increase
rapidly.
19. As an ever-increasing number of tourists visit destinations, managing
these destinations will continue to be a challenge.
20. Low cost, no frills, such as Jet Blue, ATA, Ted (as in United), and,
of course, Southwest will continue to gain an increased market share.
 21. Airlines will try to entice travelers to book their trip via the airline’s
website rather than through Expedia and similar sites.
22. Automatic airport check-ins will become more popular.
23. The cruise industry will continue to expand.
24. There will be more alternative cruises.

25. There will be increased concern for the health and safety of travel
and tourism.
26. Nature, culinary and volunteer tourism will continue to increase.

Philippine Travel and Tourism Statistics

Figure 1. Contribution of Tourism of the Philippine Economy (Source: Philippine Statistics

Authority, 2019)

Dr. Claire Dennis S. Mapa (June, 06, 2019), the undersecretary for
National Statistician and Civil Registrar General of the Philippine Statistics
Authority reported that as measured by the share of Tourism Direct Gross Value
Added (TDGVA) to the Gross Domestic Product (GDP), the contribution of
tourism industries to the Philippine economy was estimated at 12.7 percent in
2018. TDGVA serves as the indicator to measure the value added of different
industries in relation to tourism activities of both inbound and domestic visitors
in the country. The TDGVA amounted to PhP 2.2 trillion in 2018, higher by 14.3
percent compared to previous year’s record of PhP 1.9 trillion.
The TDGVA estimate is based on the latest results of the Philippine Tourism
Satellite Accounts (PTSA) which also provides information on tourism
expenditure and employment in 2018. The following are the other key results
from PTSA:

• Inbound tourism expenditure, which refers to the expenditure of non-

resident visitors (foreign visitors and Filipinos permanently residing abroad)
within the Philippines, declined by 1.6 percent in 2018, amounting to PhP
441.4 billion from PhP 448.6 billion in 2017. Compared to the country’s total
exports, the share of inbound tourism expenditure was 8.0 percent. Inbound
tourism ranked third among the biggest export items in 2018, after
miscellaneous services at 31.5 percent and semiconductors at 22.8 percent.

(Source: Department of Tourism, 2019)

• Domestic tourism expenditure, which includes expenditure of resident

visitors within the country either as domestic trip or part of an international
trip, grew by 21.0 percent, from PhP 2.6 trillion in 2017 to PhP 3.2 trillion in
2018. Domestic tourism expenditure represents 24.9 percent of the
household final consumption expenditure (HFCE) in 2018.
 • Employment in tourism characteristic industries was estimated at 5.4
million in 2018, higher by 1.8 percent compared to 5.3 million in the
previous year. Share of employment in tourism industries to total
employment in the country was recorded at 13.0 percent in 2018.

(Source: Department of Tourism, 2019)

Visitor Arrivals (2013-2017)

INCREASE/
YEAR VOLUME
DECREASE (%)
2013 4,477,695
2014 4,625,464 3.30
2015 5,148,819 11.31
2016 5,776,582 12.19
2017 6,480,297 12.18
(Source: Department of Tourism, 2019)

Overall, there is an increasing trend in the visitor arrivals in the Philippines

from 2013-2017.
 Visitor Profile and Travel Characteristics (2011)
Mode of Travel (%)
Air 99.15
Sea .85

Sex
Male 58.58
Female 39.82
 Not Stated 1.60

Average Age (Years) 37.66

Purpose of Visit (%)

Holiday 40.63
Visit Friends/Relatives 9.31
Business 9.43
Official Mission 0.09
Health/Medical 0.16
Convention 0.85
Incentive 0.01
Education/Studies 0.47
Others/Not Specified 39.05

Frequency of Visit (%)

First Visit 36.8
Repeat Visit 63.2

Travel Arrangement (%)

Package 4.65
Independent 18.30
Not Stated 77.05

Average Daily Expenditure (in US$) 91.88

Average Length of Stay (in nights) 8.04

Percent Distribution of Visitors by Type of Accommodation (%)

Hotel 59.9
Resort 20.0
Pension/Inn/Lodge 3.2
Hostel/Dormitory 1.8
Apartelle/Rented Homes/
Apartments 1.3
Home of Relatives/Friends 23.4
Other 7.2

Generally, there is a positive growth rate of visitor arrivals to the Philippines by

Country of Residence between the year 2010 and 2011.
ILOCOS NORTE TRAVEL AND TOURISM STATISTICS

TOURIST ARRIVALS IN ILOCOS NORTE (2008-2012)

TOURIST STATISTICS
COUNTRY OF ORIGIN
2008 2009 2010 2011 2012
ASEAN
BRUNEI 0 1 0 0 5
CAMBODIA 0 0 0 0 0
INDONESIA 8 0 4 3 116
LAOS 0 0 0 0 0
MALAYSIA 8 10 20 27 137
MYANMAR 0 0 0 0 0
SINGAPORE 43 23 35 64 158
THAILAND 11 10 15 0 47
VIETNAM 0 0 0 0 0
SUB-TOTAL 70 44 74 94 463
EAST ASIA
CHINA 731 597 346 284 377
HONG KONG 150 125 1349 14 138
JAPAN 203 195 160 191 478
KOREA 2718 177 465 83 945
MACAU 0 41 1 130 0
TAIWAN 10177 4543 3145 1747 565
SUB-TOTAL 13979 5678 5466 2449 2503
SOUTH ASIA
BANGLADESH 0 0 0 0 1
INDIA 44 5 26 16 54
IRAN 0 0 0 0 5
NEPAL 0 0 0 0 2
PAKISTAN 0 0 0 0 0
SRI LANKA 0 0 0 0 0
SUB-TOTAL 44 5 26 16 62
NORTH AMERICA
CANADA 245 317 209 108 795
MEXICO 0 0 0 0 0
USA 1264 1123 993 509 1717
SUB-TOTAL 1509 1440 1202 617 2512
SOUTH AMERICA
ARGENTINA 0 0 0 0 0
BRAZIL 0 0 0 0 2
COLOMBIA 0 0 0 0 8
PERU 0 0 0 0 1
VENEZUELA 0 0 0 0 2
 SUB-TOTAL 0 0 0 0 13
WESTERN EUROPE
AUSTRIA 28 35 6 43 39
BELGIUM 23 27 4 5 10
FRANCE 13 272 206 20 229
GERMANY 68 129 115 41 272
LUXEMBOURG 0 0 0 0 3
NETHERLANDS 0 0 0 0 14
SWITZERLAND 51 58 8 13 117
SUB-TOTAL 183 521 339 122 684
NOTHERN EUROPE
DENMARK 142 44 31 26 44
FINLAND 1 18 7 4 0
IRELAND 0 0 0 0 6
NORWAY 45 19 18 66 36
SWEDEN 16 21 6 4 19
UNITED KINGDOM 49 47 16 79 238
SUB-TOTAL 253 149 78 179 343
SOUTHERN EUROPE
GREECE 0 0 0 0 1
HOLLAND 1 0 0 0 0
ITALY 17 28 28 17 205
PORTUGAL 0 0 0 0 7
SPAIN 12 55 23 17 22
UNION OF SERBIA AND
MONTENEGRO 0 0 0 0 0
SUB-TOTAL 30 83 51 34 235
EASTERN EUROPE
POLAND 0 0 0 0 9
RUSSIA 0 0 0 0 45
SUB-TOTAL 0 0 0 0 54
AUSTRALASIA/ PACIFIC/ OCEANIA
AUSTRALIA 123 220 70 130 693
GUAM 0 0 0 0 0
NAURU 0 0 0 0 0
NEW ZEALAND 24 0 8 0 60
PAPUA NEW GUINEA 0 0 0 0 0
SUB-TOTAL 147 220 78 130 753
MIDDLE EAST
BAHRAIN 0 0 0 0 0
EGYPT 0 0 0 0 0
ISRAEL 0 0 0 0 2
JORDAN 0 0 0 0 0
 KUWAIT 0 0 0 0 1
SAUDI ARABIA 44 5 3 6 69
UNITED ARAB EMIRATES 0 0 0 0 10
SUB-TOTAL 44 5 3 6 82
AFRICA
NIGERIA 0 0 0 0 0
SOUTH AFRICA 0 0 0 0 5
SUB-TOTAL 0 0 0 0 5

DOMESTIC TOTAL 160815 181245 176243 194006

 Self-Check

True or False. Write T if the statement is correct, otherwise, write F.

1. _____ Based on the trend, there are more male international travelers than
females.
2. _____ Health/Medical is the primary purpose of visit to the Philippines.
3. _____ Most inbound tourists stay in hotels while visiting the Philippines.
4. _____ Based on statistics, the top source of in international market is
China.
5. _____ South Koreans visit/stay in the Philippines to study English as a
second language.
6. _____ Advancement of technology challenges the tourism industry
because it threatens to replace human resource as a form of delivering
services.
7. _____ Service is at the top of guests’ expectations.
8. _____ Travel and tourism bookings via the Internet will decrease.
9. _____ Globalization will encourage more people to travel across
international borders.
10. _____ The cruise industry is expected to decline because of safety issues.