Chapter 1

Tourism Industry and Economy

Objectives:
1. Understand the tourism industry in the Philippines;
2. Identify the different resources of the Philippines;
3. Learn how the Philippines’ resources are utilized in the tourism industry;
4. Know the different types of tourism in the Philippines; and
5. Know the various popular destinations in the Philippines.

The economic contribution on a micro level of activities and services relative to tourism and
hospitality to any country, region, province or even the smallest barangay always brings more positive
impact when properly managed. The percentage of economic contribution relative to services and
activities of tourism and hospitality is measured thru Tourism Direct Gross Value Added (TDGVA).
Tourism related activities with the highest contribution to TDGVA include shopping, accommodation
services and food and beverage services.

Tourism employment as a ratio to total employment in the Philippines has been increasing and
recorded an average of 10.6% for the period 2010-2012. This highlights the importance of the tourism
industry to job creation and is considered as an important sector for Philippine economy.

Philippines is known for having its rich biodiversity as its main tourist attraction:
 Beaches
 Heritage towns and monuments
 Mountains
 Rainforests
 Islands and diving spots
 Festivals and indigenous traditions

In 2012, the Philippines recorded 4.27 million tourist arrivals, after launching “It’s more Fun in the
Philippines”.

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 4
different lists (UNESCO World Heritage List, UNESCO Memory of the World Register, UNESCO
Intangible Cultural Heritage List, and UNESCO Biosphere Reserve Registry).

Main source of international tourist: (leisure-based and VFR)

 South Korea
 USA
 Japan
 China
Main source of domestic tourist: (leisure-based)
 Metro Manila
 Cebu
 Davao

The main causes and effects of the historic poor international and domestic tourism growth
performance (The Philippine Tourism Diagnosis)

Fig. 1 . The Philippine Tourism Diagnosis

Philippine Product Portfolio

The product portfolio of the country that are being developed and marketed for economic
contribution purposes that help improve the economic condition of every destination or locality are as
follows:
1. Nature Tourism
2. Cultural Tourism
3. Sun and Beach Tourism
4. Cruise and Nautical Tourism
5. Leisure and Entertainment Tourism
6. MICE and Events Tourism
7. Health, Wellness, and Retirement Tourism
 8. Education Tourism

Market-product analysis recommends prioritizing nine tourism products towards enriching the
tourist experience and boosting product diversification.

Popular Tourism Activities

1. Beach and Diving Tourism
Beach tourism is currently the major tourist draw of the Philippines. Various beaches in the Philippines
have landed in multiple magazines, ranking them anywhere between 1st place to 8th place. Among the
most popular beach and diving choices in the country includes Boracay, El Nido, Coron, Cebu,
and Siargao.
2. Hiking Tourism
Hiking is a rising form of tourism in the Philippines, especially among locals and Western foreigners.
Among the most famous hiking areas in the country are Mount Apo, Mount Pinatubo, Mount
Halcon, Mount Banahaw, Mount Makiling, and Mount Pulag.
3. Research and Education Tourism
Due to the diverse number of flora and fauna of the country, researchers from around the world have
flocked various biodiversity sites in Philippine environmental corridors.
Environmental Research Areas include: Mount Mantalingajan, Sibuyan Island, Dinagat
Islands, Mount Hamiguitan, Central Panay Mountain Range, Verde Island Passage, Tubbataha
Reef, Mount Malindang, Northern Sierra Madre Natural Park, and Turtle Islands, Tawi-Tawi.
The country's archaeological sites: Cagayan Valley, Butuan, Tabon Cave, Callao
Cave, Banton, Ifugao, Cebu, Lanao del Sur,
Various universities in the country: University of the Philippines, Ateneo de Manila
University, De La Salle University, University of Santo Tomas, Silliman University, University of San
Carlos, University of Mindanao and University of Southern Mindanao, have also been influential in
research tourism, especially for graduate students and students seeking better review centers.
Common nationals that seek graduate degrees or reviewer sessions in the Philippines usually
come from: India, South Korea, and Palau. Language schools with English language programs are also
popular among Asian foreigners from: South Korea, Thailand, Vietnam, Myanmar, Taiwan, and Japan.
Government-approved institutions that teach suyat scripts, such as baybayin, have also become
popular among locals and foreigners.
4. Arts and Crafts tourism
Arts and crafts tourism in the Philippines has recently expanded following several attempts to
establish a cultural renaissance. The numbers of art museums, galleries, exhibitions, festivals, and town
fairs throughout the country has doubled in the past 10 years. The country was conferred its first
UNESCO Creative City through Baguio in 2016. Other arts and crafts centers are in Manila, Quezon
City, San Fernando City, Iloilo City, Angono, Santiago City, Cebu City, Basey, Davao City, Lake
Sebu, Angeles City, Vigan, Basco, Zamboanga City, Marawi, Tugaya, Cotabato
City, Sariaya, Tagbilaran, and Dumaguete.
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 places of worship such
as “dambanas” are also present throughout the country. Among the most popular pilgrimage sites in
the Philippines are  Paoay Church, Manila Cathedral, Maragondon Church, Cebu Metropolitan
Cathedral, Baclayon Church, Panay Church, Loboc Church,  Quiapo Church, Barasoain Church, Seng
Guan Temple, Sheik Karimol Makhdum Mosque, Taluksangay Mosque, Sultan Haji Hassanal Bolkiah
Masjid,  Mount Banahaw, Kabayan Mummy Burial Caves, Limestone tombs of Kamhantik , Mount
Apo, Mount Bulusan, Mount Pulag, Callao Cave, Mount Kalatungan, Mount Matutum, Mount
Makiling,  Mount Arayat, Mayon Volcano, Mount Pinatubo, and Mount Kitanglad.
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, the Kadayawan
Festival of Davao, the Ati-Atihan Festival of Aklan, the Dinagyang Festival of Iloilo, the Panagbenga
Festival of Baguio, the Moriones Festival of Marinduque, the Pahiyas Festival of Quezon province,
the Obando Fertility Rites Festival of Bulacan, the Pintados Festival of Leyte, the Sandugo
Festival of Bohol, the MassKara Festival of Bacolod, and the Giant Lantern Festival of Pampanga. Each
of the festivals, or locally known as fiesta, have different traditions at play. The festivals may be
indigenous, Hindu, Buddhist, Catholic, Muslim, or a mixture of religions in origin. Some festivals,
however, are not interlaced with any form of religion.
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. Surges in patriotism
for whole-body firewood pot bathing and indigenous herbal usage have also helped the industry to
prosper in the village-level. 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. Hilot havens include Camiguin, Siquijor, and Antique, while staycation destinations include the
hotels of Manila, Bataan, Batanes, Tagaytay, Baguio, and Bukidnon.
 Exercise 1

Name:_____________________________________________ Date:_________________

Yr./Crs./Sec.:__________________________ Score:________________

Explain the Philippine Tourism - Diagnosis

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