Philippine Tourism Industry and

Economy
1st Semester 2023-2024
CMACROTOUR
Midterm – Lesson 1
Learning Outcome
• List down the different resources of the Philippines.

• Explain how the Philippine resources are utilized in

tourism industry.

• Identify the different types of tourism in the

Philippines.

• Enumerate the various popular destinations in the

Philippines.
Philippine Tourism Industry & Economy
• The Philippines ranked 75th out of 117 economies in the
Travel and Tourism Development Index (TTDI) for 2021
of the World Economic Forum (WEF).
• The tourism industry increased its contribution to the
country’s economy to almost 13% of the gross domestic
product (GDP) in year 2021, according to government
statistics.
• The employment share of the tourism industry
accounted for approximately 11.4% of the total
employment in the Philippines in 2022. Overall, the
share of employment in tourism industries to total
employment has been fluctuating since 2014.
History
• 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 migration from the Malayan Archipelago in the south
and Taiwan in the North.
• The tourism industry first truly flourished during the late
19th to early 20th century due to the influx of immigrants
from Europe and the United States.
• Listed as one of the best countries to visit in Asia aside
from Hong Kong and Japan, earning the nickname “Pearl
of the Orient Seas”.
• The tourism industry flourished again for the third time
at the early part of the 2010s under the “It’s more fun in
the Philippines” slogan.
Philippine Product Portfolio
1. Natural 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. Diving and Marine Sports Tourism
9. Education Tourism
Attractions: Immovable Tangible Heritage
• The UNESCO (United Nations Educational, Scientific
and Cultural Organization) has designated six World
Heritage Sites in the Philippines.

• The UNESCO World Heritage Sites are places of

importance to cultural or natural heritage as described
in the UNESCO World Heritage Convention.

• The Philippines had its first sites included in 1993, and

since 2014, has six sites on the list spanning nine
locations.
The Six UNESCO World Heritage Sites
in the Philippines

➢Baroque Churches of the Philippines

Santa Maria Church, Paoay Church, San Agustin Church, Miagao Church

➢Puerto-Princesa Subterranean River National Park

➢Historic City of Vigan
➢Rice Terraces of the Philippine Cordilleras
➢Mount Hamiguitan Range Wildlife Sanctuary
➢Tubbataha Reefs Natural Park
The UNESCO World Heritage Sites in the
Philippines

➢Santa Maria Church

Also known as The Church of the Lady of Assumption
(Church of Nuestra Señora de la Asuncion)
Location: Sta Maria, Ilocos Sur

➢Paoay Church
Also known as The Saint Augustine Church
(Iglesia de San Agustín de Paoay)
Location: Paoay, Ilocos Norte
The UNESCO World Heritage Sites in the
Philippines

➢San Agustin Church

Also known as The Church of Saint Augustine
(Iglesia de San Agustín)
Location: Intramuros, Manila

➢Miagao Church
Also known as The Santo Tomás de Villanueva Parish
Location: Miagao, Ilo-Ilo
The UNESCO World Heritage Sites in the
Philippines

➢Puerto-Princesa Subterranean
River National Park
Location: Puerto Princesa, Palawan

➢Historic City of Vigan

Location: Vigan, Ilocos Sur
The UNESCO World Heritage Sites in the
Philippines

➢Rice Terraces of the Philippine

Cordilleras
Location: Ifugao, Cordillera Administrative Region

➢Mount Hamiguitan Range Wildlife

Sanctuary
Location: Shared by San Isidro, Governor Generoso, and Mati,
in Davao Oriental
The UNESCO World Heritage Sites in the
Philippines

➢Tubbataha Reefs Natural Park

Location: Cagayancillo, Palawan
Attractions: Intangible Heritage
The Philippines is widely regarded as the traditional capital of
the world’s festivities due to the thousands of festival
occurring in the country annually.

What is Intangible Cultural Heritage?

Cultural heritage does not end at monuments and collections
of objects. It also includes traditions or living expressions
inherited from our ancestors and passed on to our
descendants, such as oral traditions, performing arts, social
practices, rituals, festive events, knowledge and practices
concerning nature and the universe or the knowledge and
skills to produce traditional crafts.
The Three UNESCO Intangible Cultural Heritage
in the Philippines
Hudhud Epic Chants Darangen Chant of the
of the Ifugao Maranao People of Lake Lanao

Punnuk -Tug of –War

Game of the Ifugao
Travel and Tourism Industry in the Philippines

• Tourism is one of the major contributor to the

economy of the Philippines.

• The country’s rich biodiversity is the main tourist

attraction of the Philippines

• The country’s rich historical and cultural heritage is

also one of the attractions of the Philippines.
The Resources
Natural Resources
The Philippine is rich in natural resources:

✓Fertile

✓Arable lands

✓Diverse flora and fauna

✓Extensive coastlines

✓Rich mineral deposits

Country’s 6 Major Crops
✓Rice

✓Corn

✓Sugarcane

✓Coconut

✓Abaca

✓Tobacco
Mineral Resources

• Mineral resources abound in Philippine soil.

• 21.5 billion metric tons estimated metal

• 19.3 billion metric tons non metal

Fishery Resources
Philippine is definitely rich in marine resources with
its territorial waters measuring as much as 1.67m sq
km and located in the world fishing center.

Other Marine Products inlude

✓Corals
✓Pearls
✓Crabs
✓Seaweeds
Types of Tourism in the Philippines
Beach and Diving Tourism
Among the most popular beach and diving
choices in the country:
✓Boracay in Aklan

✓El Nido in Palawan

✓Coron in Palawan

✓Siargao in Surigao Del Norte

Hiking Tourism
Hiking is a rising form of Tourism in the
Philippines, especially among locals and Western
foreigners.
✓Mount Apo
✓Mount Pinatubo
✓Mount Halcon
✓Mount Banahaw
✓Mount Makiling
✓Mount Pulag
Arts and Crafs in:
✓ Iloilo City
✓Cebu City
✓Davao City
✓Vigan City
Pilgrimage Tourism
The Philippines is the catholic Pilgrimage capital of Asia.
✓ Paoy Church
✓Manila Cathedral
✓Maragondon Church
✓Cebu Metropolitan Cathedral
✓Baclayon Church
✓Panay Church
✓Loboc Church
✓Daraga Church
✓Boljoon Church
✓Guiuan Church
✓Calasiao Church
✓Manaog Church
✓etc.
Festival Tourism
The country has been known as the traditional capital of
the world’s festivities and the capital of fun.
✓Sinulog Festival of Cebu
✓Kadayawan Festival of Davao
✓Ati-Atihan Festival of Aklan
✓Dinagyang Festival of Iloilo
✓Panagbenga Festival of Baguio
✓Mariones Festival of Marinduque
✓Pahiyas Festival of Quezon province
✓Obando Fertility Rites Festival of Bulacan etc.
Wellness Tourism
Has recently doubled it’s contribution to Philippines
tourism due to the rise of hilot (ancient Filipino art of
healing) practices in spas, bath houses, and hotels.
Top Philippine Destinations
• Banaue Rice Terraces
• Chocolate Hills in Bohol
• Boracay Island in Aklan
• Cebu - The Gateway to a Thousand Journeys
• Davao - Land of Plenty
• Manila - Capital of the Philippines
• Palawan - The last Frontier
• Vigan - Old World City
Five Main Characteristics of Tourism:
1. Because of its complexity, tourism is a combination of
phenomena and relationships.
2. It has two essential elements: the dynamic element – the
journey and the static element – the stay.
3. The journey and stay are to and in destinations outside the
place of residence and work.
4. The movement to destinations is temporary and short-term
with the intention to return within a few days, weeks or
months.
5. Destinations are visited for purposes not connected with
paid work; that is, not to be employed and not for business
or vocational reasons.
 Travel Motivators:
Escape Convince oneself of one’s achievements
Relaxation Show one’s importance to others
Relief of Tension Status and Prestige
Sun Lust Professional/Business
Physical Cultural
Health Education
Family Togetherness Self-discovery
Interpersonal Relations Wanderlust
Roots or ethnic Interest in foreign areas
Maintain Social Contacts Scenery
Economic Impact
of Tourism:
Source of Income
• Travelers and tourists purchase good and services.
• They spend money for transportation, lodging, food, drink,
and entertainment.
• The money they spend comes from outside the area and is
brought to the area by tourists in the form of cash, traveler’s
checks, and credit cards.
• It is the “new” money; that is; money not generated from
internal economic activity but brought to the area by
tourists.
• It is money that would not get into the local economy
without travel and tourism.
Employment
• In an area being developed for tourism, new hotels,
motels, and other lodging establishments must be built
to accommodate travelers.
• This creates jobs.
• Once the facilities are built, staff must be hired to
operate them.
• Wages are paid to employees, and these wages are
spent in the area to purchase housing, food, clothing,
and many other goods and services.
Foreign Exchange
A nation needs foreign exchange to pay for goods and
services imported from abroad, and tourism is one of
the principal means of earning it.
Social Impact
of Tourism
Resentment
• Tourists going to poor; less-developed countries
sometimes create feelings of resentment and
jealousy among the local population.

• They do this by being demeaning –sometimes too

demanding and by seeming to spend excessive
amounts of money.
Family Problems
• Tourism can affect the family relationships of local
residents when one or more members of the family
work in the tourist industry.

• For example: many of the women begin to earn

higher wages than their husbands, which leads to
further problems.
Social Problem
• Many hospitality workers are drawn from the local
population, but some may come from other areas
and settle among the local population.
• The new residents act differently, go to different
churches, may speak different language, and even
eat different food.
• If the new residents are accepted by the
community, the dissimilar cultures can exist
peaceably together.
• If not, there may be conflict.
Crime and Violence
• When areas grow in population as a result of
tourism, negative changes can take place.

• Tourists, who tend to carry larger amounts of

money than they would when not traveling become
targets for amateur and professional thieves.
Sectors of the Travel Industry
Air Industry
This includes airlines of all sizes and sorts, as well as
the industries that directly support them such as
airline catering services, governmental organizations
and airports.
Lodging Companies
These include hotels, motels, condominiums,
timeshares, lodges, all-suite hotels, and
campgrounds.
Travel Agencies
Refer to businesses that help the public with their
travel plans and needs.
Food Services
• These include airports restaurants, hotel dining and
catering facilities, convention centers, roadside
restaurants, and themed dining venues.
• These derive much, and in some cases almost all, of
their profits from travelers.
Car Rentals
Here are just some of the car rental agencies:
✓Avis Rent A Car
✓Mudan Automative
✓Midnight Rent A Car
✓Montgomery Wards Rent A Car
✓Ace Rent A Car
✓Enterprise Rent A Car
Rail Travel
✓Euro Rail
✓Japan Shinkansen
Bullet Train

✓Puffing Billy Steam

Train in Melbourne
Meetings and Conventions
• This huge sector of the travel industry facilitates the
event functions of all sizes for business
organizations and societies.
• It encompasses not only meetings and conventions,
but also trade shows, expositions, conferences, and
World Fairs.
Sports and Entertainment Management
• Many people travel from afar to attend a baseball or
basketball game or even Britney Spear’s concert.
Moreover, when a sports team or entertainment
entourage moves from city to city, transportation and
lodging issues are extremely important.
Attractions
Sites or events which entice visitors to a destination.
a. Site Attraction
- Pagsanjan Falls in Laguna
- Mayon Volcano in Albay
b. Event Attraction
- Ati-atihan Festival in Iloilo
- Panagbenga Festival in Baguio
Tourist Destinations
in the Philippines
 Tagaytay La Union

Puerto Galera Boracay

Palawan Siargao

Batanes
Camiguin
Theme Parks
Is a sort of “super” attraction, the updated inheritor
of the old amusement park concept.
Stores & Shops

✓Duty Free Shops

✓Outlet Malls

✓Luxury Brands
Parks & Recreation Programs

These include:
✓Wildlife National Parks
✓National Parks
✓And others
Governmental Regulatory Board
• Travel was once highly regulated by governmental
organizations.

• Things such as aircraft and motor coach

maintenance air traffic, airport operations and
security, cruise line policies, lodging safety and
pricing regulations, and casino gaming are still
overseen by government entities.
Destination Marketing Organizations
Are organizations whose purpose is to promote and
facilitate travel to and within their districts, cities,
regions, states/provinces, countries, or even
continents.
Research Companies
• These segments of the travel industry rely on demographic
and psychographic information about their customers, both
actual and potential, to create their marketing strategy.

• Some have their own in-house research departments.

• Other contract with companies whose purpose is to carefully

and cleverly analyze the consumer marketplace and,
sometimes, recommend actions to be taken to adjust to
those findings to increase business.
Insurance Companies
• Travel is subject to many unpredictable factors.

• This is why certain corporations specialize in

protecting travelers from unanticipated incidents
such as loss of luggage, missed airline connections,
illnesses and accidents.
Financial Companies
Certain banks, credit card companies, accounting
firms, and financial software providers have close
relationships with travel related business.
Technology Providers
Reservation systems, database developers, web site
designers, cost-control software developers, and
others who provide technological solutions specific to
travel businesses have become essential for the
industry’s success.
Trade Associations
Most industries have organizations that represent
their interests, provide a forum for information
exchange, furnish training opportunities, and perhaps
do research.
• Philippine Bartenders League
• Hotel and Restaurant Association of the
Philippines (HRAP)
• Philippines Travel Agencies Association (PTAA)
• Association of Professional Congress/Exhibition
Organizers and Suppliers Philippines (APCEOS)
Travel Publications
This industry sector is divided into 2 general categories :
• Consumer Publications - target the traveling public
• Trade Publications – address the readership of
travel professionals
 Professional Services
There are a number of occupational groups that specialize
in travel-related issues and services. Among them are:
Attorneys Advertising Agencies
Accountants Public Relations Firms
Travel Writers Physicians
Photographers Training Consultants
Speakers Travel Teachers
Definition of Terms
• Tourism – is the temporary short-term movement of people
to destinations outside the places where they normally live
and work and their activities during their stay at these
destinations.
• Travel – is going from one place to another and doing things
when arriving there, for reasons not associated with everyday
life.
• Tourist – is a person who visits a country other than that in
which he usually resides for a period of at least 24 hours.
• Excursionists – temporary visitors staying less than 24 hours
in the destination visited and not making an overnight stay,
including cruise travelers but excluding travelers in transit.
• Trip – each time a person goes to a place at least 100 miles
away from home and returns.
Reference:
Photos credit to owner (CTO)
Please watch this video
The Economy of the Philippines
https://www.youtube.com/watch?v=B8aV--1TMpQ
Lim, R. D. (2019). A Macro Perspectives on Tourism
and Hospitality. Manila: Mindshapers Co., Inc.

Cruz, R. G. (2016). Tourism Impacts and Sustainability.

Manila: Rex Book Store.