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Chapter 2

REVIEW OF RELATED LITERATURE & STUDIES

The following reviews are intended to provide the background and rationale of this

study.

Local Literature & Studies

Our country, Philippines is known to be a very hospitable country in terms of

tourism. Whether looking for a stress-free relaxing vacation, or days of hard-out

adrenaline pumping action, Mindanao has it all. Mindanao encompasses the large island

of Mindanao plus smaller islands in the southern Philippines. Every year, there are

millions of tourist who visits our country both local and foreign. Many people already

have enjoyed visiting Mindanao, and with current prices so affordable your money will

stretch so much further than other destinations, allowing you to do the things you want to

do.

According to Roderick Abad (2017), after President Duterte declared martial law in

the entire Mindanao region on July 2017. amid the ongoing clashes between government

troops and militants belonging to the Maute terrorist group in Marawi City. The martial

law lasted for 60 days as it was indicated in the Constitution. And because of this

declaration, six countries issued travel advisories to the Philippines, namely, the United

States, the United Kingdom, Australia, Canada, France, and New Zealand.

Urbanozo et.al. (2017), stated that the average percent of hotel industries in

Mindanao lowered down from 93% to 80% during the latest incidents and even the other
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establishments in the central part bared the aftermaths of the incident. Arrivals of foreign

tourist markets in the Philippines have nonetheless increased to a total of 1,784,882 in the

first quarter of 2017, or over 11.4 percent from the same period last year, based on data

from the Department of Tourism. Tourism in the Philippines is seriously facing a different

kind of threat—the feeling among foreign visitors that it is not a safe destination, as a

result of the crisis in Marawi City and the resulting declaration of martial law on the entire

island of Mindanao, which has yet to be lifted after more than a month. Aside from the

availability of infrastructure and other facilities needed by tourists, safety is a major

concern among foreigners when choosing their travel destination. The government cannot

let the international media portray the Philippines as another Syria or Iraq or Afghanistan

where extremists hold sway.

Rolain Fernandez Sato (2017), cited that with all the photos and videos posted on

social media, tourist arrivals will definitely be affected. Tourism will greatly be impacted

downward and people should watch on what will going to happen in two to three weeks

after the cancellations of the bookings from the tourists that will affect the hotel

performance.

Fernando Fajardo (2017) also said that tourism players cannot anymore use the

“isolated case” as an excuse to assure tourists that terrorist threats in the country is not

serious.

Robert Pizzaro (2017) cited that its too early to say, but now the immediate setback,

tourism will decline, maybe short-term, including hotel and restaurants here in Cagayan

de Oro and some functions ande events.

Pizzaro, however, clarified that in the long run , he thinks the declaration would be

good for Mindanao since peace and order disturbance which discourages invesetments,

can be prevented as terrorism will be thwarted.

Meanwhile, Yevgeny Vicente Emano (2017) said he hopes the government will

provide the exact duration of the martial law. Emano, whose flagship program is tourism,

said while he supports the martial law declaration at the moment, he is worried that the

longer the martial law is, the more negative impact it may cause to the booming tourism

industry of the province.

Patria Roa (2017) also expressed her frustration in the current turn of events because

of its negative impact on tourism. The Japanese tourists are very sensitive. When they

hear news that terrorists are doing something, they will immediately cancel even when the

situation happens in Sulu, or Basilan which are not even destinations.

Roa even stated that situations like this will definitely discourage tourists from

coming to the Philippines.

Joselito Basilio (2017) also found out that terrorist threats are part of the external

shocks that have and impact on the growth of the economy. It was also based on the

previous experiences with news on Brexit (Britain’s exit from the European Union) and

US President Trump’s pronouncement of his protectionism policy. Basilio said that the

financial markets seemed to ride on the waves of the “noises” but things will eventually be

settled down. What the Filipino hope is that this terrorist threats will just be temporary,

this noise will only be short term so that this will not prolong and will not creep into the

fundamental decisions, of investors and businesses.

Myra Regner (2017) mentioned that the hotel industry in the coutry wants to assure

guests and business partners that their safety and security will be their highest priority.

They will continuously monitor and maintain close contact with the local authorities.

Foreign Literature and Studies

Soundararajan and Rajan (2006) while act of terrorism fuels rebellious hostility and

the hostilities escalates to war become catastrophe, tourism on the opposite hand promotes

amity and understanding, friendly relationship associated a universal sense of fraternity.

Chauhan and Khanna (2009) stated that “safety and security of tourist could be a

necessity for a prosperous tourist destination”. Previously authors have analyzed that act of

violence has severe effect on tourism. They also acknowledged that acts of radicalism were

usually the reasons behind the cancellations and withdrawal of travel intention to sure

purposes to travel.

Hayes & Ninemeier (2006) said the likelihood that a hotel will be terrorism target has

increased recently. Managers in all properties should be concerned about and reconsider

security procedures so as to take practical steps to protect lives in the event of an intentional

explosion, fire, or other disaster, possibly even including the use of biological or chemical

weapons.

Jain S.K. (2008) stated hospitality and tourism becomes the first victim of the

terrorist attacks and the recent attacks added to the anguish to the Indian hospitality

industry. The currant global recession has already seen a large number cancellation of hotel

bookings and air charters from European and American countries (approximately 40-60%),
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Mumbai attacks have sent a message of panic among the tourists who were willing to

travel India.

Alon, Mitchell, & Steen, (2006) stated that the advent of global terrorist networks

represents a challenge to international business (IB) theory. To the extent that IB scholars

have examined the phenomena of terrorism at all, most have viewed it through the prism of

political risk. treating it as a micro-level threat primarily afflicting multinational enterprises

(MNEs) operating in politically conflictive areas and engaged in natural resource extraction.

Rabasa et al., (2009) said that among the targets of terrorist attacks were two of the

city’s landmark five-star properties: the Taj Mahal Palace and Tower and the Oberoi Trident

complex. Western tourists and businesspeople appear to have been singled out by the

assailants for execution, and the final death toll included 28 foreign nationals, six of which

were Americans.

Hoffman & Weimann (2009) states that while these types of “spectaculars” have

rarely succeeded in winning the terrorists concessions from enemy governments, they do

tend to cause both great harm to a country's collective psyche and economic disruption, and

thereby support al Qaeda’s strategic aim of bankrupting the U.S. and its allies.

Gunaratna (2009) states that the global jihadist movement founded by Osama bin

Laden comprises the remnants of the Saudi exile’s al Qaeda organization ensconced along

Pakistan’s rugged northwest frontier, loosely affiliated regional franchises such as LeT in

Pakistan, Jemaah Islamiyah (JI) in Indonesia, and the Abu Sayaaf Group in the Philippines,
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“homegrown” militants such as those that carried out the July 2005 (7/7) London

transportation system bombings, and legions of sympathizers around the globe connected via

the Web or in spirit. These affiliated groups typically lack the resources and training to

mount a successful attack on a Western embassy or airline, and so have turned their attention

to easier targets – hotels.

Hoffman (2006) said that the targeting of hotels by terrorist organizations is not a new

phenomenon. Among the earliest such attacks was the 1946 bombing of the King David

Hotel in Jerusalem by the Zionist paramilitary organization the Irgun. The blast, aimed at

British government and military offices located on the premises rather than hotel guests or

staff, killed 91 and injured 46.

Brian Jenkins (2009) has observed that fewer than 500 hotel guests worldwide have

been killed by terrorists over the past 40 years, out of a total global hotel guest population at

any time of nearly 10 million. Meanwhile, the cost of counter-terrorism measures, whether

covering windows with shatter-resistant film or deploying EVDs to screen vehicles, can be

high.11 Beyond costs, some executives worry that the presence of visible security measures –

be they metal detectors, bomb-sniffing dogs, or gun-toting security guards – may undermine

the welcoming ambiance that luxury hotels work hard to cultivate and drive away guests.

Deutsch A. (2009) states that hotels began to harden their perimeter defenses with

check points manned by armed guards, blast walls, barricades, hydraulic barriers, and the

like, terrorists have sought out new and innovative modes of attack. The 2008 Mumbai

attacks were an obvious attempt to thwart such defenses. So too were the July 2009 twin
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suicide attacks on the JW Marriott and Ritz Carlton in Jakarta, carried out by a pair of JI

operatives, one of which had checked into the former property as a guest days prior to the

attack.

LaRaia & Walker (2009) said that the Islamist groups that dominate the international

terrorism scene today are not just different from their secular and ethnic-separatist

counterparts in their motivations and bloodlust -- they are also more technologically savvy.

The Mumbai case is illustrative. The terrorists used digital technology to conduct

preoperational surveillance of the properties, made their way across the Arabian Sea from

Karachi to Mumbai aided by global positioning systems, communicated by satellite phone

with their handlers during the journey, and quickly located their targets once on 7 land,

having studied satellite images from Google Earth. Once the shooting began, the attackers

were in constant communication with their foreign handlers using cell phones linked to a

Voice over Internet Protocol (VoIP) account – a system designed to thwart the efforts of

Indian security forces to trace and intercept the calls.