THC 1

MACROPERSPECTIVE OF TOURISM AND PERSPECTIVE

MODULE 11
Tuesday

HISTORY OF HOSPITALITY

The State of the Hospitality Industry in the Philippines in 2020

 The Philippines’ hospitality industry is currently weathering a blow from COVID-
19.
o As of October 2019, tourism in the country is a Php 2.2-trillion-strong
industry and generates more than 12% of the GDP.
o According to the Department of Tourism (DOT) Secretary Bernadette
Romulo-Puyat, the industry also employs about 5.4 million people under
various sectors such as accommodations and transportation.
 By May 2020, the numbers have changed drastically. Tourist arrivals in the
Philippines have declined by more than 50%, from 2.8 million to just above 1
million.
o Secretary Puyat also said that the revenue from tourist arrivals have
decreased by 55% from January to April of this year. Worldwide, tourist
travels have dropped by nearly 60%.
How the Biggest Luxury Resorts and Casinos Are Faring
 The same fate has also struck the country’s biggest luxury resorts.
o The most prominent among them include multi-billion-dollar resorts City Of
Dreams, Solaire, and Okada in Paranaque and Resorts World in Pasay.
o For perspective, luxury resort and casino Okada, which opened only last
December 2016, announced in May 2020 that they will be laying off more
than 1,000 of its staff.
o And with these establishments also housing casinos as part of their
entertainment options, this has undoubtedly also affected the local casino
industry.
 If you want to learn more about the status of the casino industry in the
Philippines, you can read this report by bestonlinecasino.com.

Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
 o It reviews the top casino sites for Filipinos and monitors the changes in the
local laws.
o The bottom line, however, is that resort-casinos are currently experiencing
losses.
o They are also trying to capitalize on the possibilities of online gaming.
 Indeed, just as various industries and individuals have turned to online work
arrangement and income opportunities, the casino industry has also turned to
digital set-ups.
o The outlook is hopeful; in the third quarter of 2019, e-gaming parlors and
other online gaming outfits generated about US$ 13 million in gross
gaming revenue or GGR. This is a 13% increase from the same period in
2018.
o Meanwhile, another form of legal gambling in the country is set to reopen.
The Philippine Charity Sweepstakes Office (PCSO) resumed lotto games
last August 4, which is certainly good news for lotto outlet operators.
The New Normal for the Hospitality Industry
 There are plenty of viable business opportunities during the pandemic, most of
which are predominantly online. While not completely possible for the hospitality
industries, there are certain aspects that can be more smoothly transitioned to
digital platforms.
o For example, museums can offer virtual tours to minimize physical
contact.
o It can even be an avenue for expansion since local museums can easily
attract customers from out of town or even out of the country.
 The DOT has also issued tourism standards, which will be in place until a
vaccine for COVID-19 has been developed.
o The protocols, which include the following, are based on information
provided by the Department of Health and the World Health Organization:
 Maximum of double occupancy for hotels.
 50% occupancy in terms of dining operations.
 Regular sanitation/disinfection of hotels, resorts, tourist transports,
meeting and exhibit venues, spas, and similar tourism-related
establishments.
 Proper PPE or personal protective equipment and
sanitation/disinfection devices for tourism workers, provided by the
establishments.

Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
 No buffets are allowed in hotels and restaurants.
Strict capacity limits for hotels, restaurants, parks, meetings and
conventions, transport services, and the like.
 Contactless check-ins for hotels.
o In addition to these above protocols, the DOT is also set to develop online
systems so that they can continue to conduct tourism-related transactions
such as accreditations and training.
 Moreover, there will also be regular inspections of all tourism-
related establishments.
The Future of Tourism Post-COVID
 According to DOT Undersecretary for Tourism Regulation, Coordination, and
Resource Generation Arturo P. Boncato Jr, there are already about 1,000 hotels
that have resumed operations as of May 2020.
o They account for more than 60,000 rooms, although most of these are
allocated for OFWs and employees in essential industries.
o Boncato also said that, under general community quarantine, the hotel
industry is also allowed to fully reopen following the guidelines mentioned
above.
 Meanwhile, last April 2020, Horwath HTL Singapore and Tajara Hospitality
published a sentiment survey among 49 hotels and 23 resorts in the Philippines.
o Horwath HTL is the world’s largest hospitality consulting brand, while
Tajara is a local hospitality consulting and development company.
 The respondents of the survey are highly optimistic regarding domestic corporate
demand.
o They are also confident that domestic leisure travel will recover positively,
even as they noted that foreign leisure travel might not experience the
same improvements.
o In the same vein, the respondents felt that domestic demand for MICE or
meetings, incentives, conventions, exhibits will also have a healthy
recovery.
 When it comes to flights, the Air Carriers Association of the Philippines has
conducted studies on what kinds of measures to adopt in the new normal.
o Some of the suggestions include not making the middle seats unavailable
to passengers and imposing a 70% capacity on all planes.
o PPEs are also required for the flight crew, while passengers may be
required to wear both masks and face shields.
Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/
  There are a lot of factors that need to be fulfilled before the hospitality industry
can resume full operations and start on the road to recovery.
o These include the reduction of local transmission of the virus, as well as
the development and timely acquisition of a vaccine.
o Until then, major players in the hospitality industry can only wait with bated
breath.
ASSIGNMENT (GROUP)
1. Describe one (1) new trend in tourism and hospitality industry in the Philippines
after COVID-19 pandemic.
2. Show picture of your selected trend.

Sources:
Reference: Disimulacion, Maria Arlene. 2019. Macro Perspective of Tourism and Hospitality. Books Atbp
Publishing Corp.
Tourism Industry in the Philippines: Part II, August 4, 2017, Posted by ASEAN Briefing Reading,
https://www.aseanbriefing.com/news/tourism-industry-philippines-part-ii/
https://tycoon.ph/state-hospitality-industry-philippines-2020/