MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

TOURISM INDUSTRY AND ECONOMY

OBJECTIVES:
1. Understand the tourism industry in the Philippines;
2. Learn the different resources of the Philippines;
3. Learn how the Philippine resources utilized in tourism industry;
4. Know the different types of tourism in the Philippines;
5. Know the various popular destinations in the Philippines.

 The tourism industry is very important to the Philippine economy given its contribution to job creation and revenue
generation. The ratio of Tourism Direct Gross Value Added (TDGVA) to gross domestic product (GDP) recorded an average
of 5.9% per annum for the years 2000-2012. 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, as it accounted for
4.2 million Filipinos employed in 2012, most especially in the countryside.

 Tourism is considered as an important sector for Philippine economy. In 2015, the travel and tourism industry contributed
10.6% to the country’s GDP. Philippines is an archipelagic country composed of 7,641 islands with 82 provinces divided in
17 regions. The country is known for having its rich biodiversity as its main tourist attraction.

 Its beaches, heritage towns and monuments, mountains, rainforests, islands and diving spots are among the country’s most
popular tourist destinations. The country’s rich historical and cultural heritage, including its festivals and indigenous
traditions, are also one of the attractions of the Philippines. Popular destinations among tourist are El Nido in Palawan,
Davao, Boracay, Sioargao, Cebu, Manila, and many more.

 Tourism makes an important part to the economy of the country. The growth of the economy had been into a major change
since the end of the People Power Revolution up until to the present time because of the tourism growth.

 In 2012 the Philippines recorded 4.27 million tourist arrivals, after the Department of Tourism launched a widely publicized
tourism marketing campaign entitled “Its More Fun in the Philippines” .

 The 2017 Travel and Tourism Competitiveness Report of the World Economic Forum ranked the Philippines 79 th out of 136
countries overall. The country’s best rated features were price competitiveness (22 nd) and natural resources (37th).

 The tourism industry employed 3.8 million Filipinos, or 10.2% of national employment in 2011, according to data gathered
by the National Statistical Coordination Board. In greater thrust by the Aquino administration to pump billions of employ 7.4
million people by 2016, or about 18.8% of the total workforce, contributing 8% to 9% to the nation’s GDP.

PHILIPPINE ECONOMY GROWS BY 6.8% IN THE FIRST QUARTER OF 2018

 Among the major economic sectors, industry recorded the fastest growth at 7.9%. this was followed by services with a
growth of 7.0%. agriculture also grew at a slower pace of 1.5%.

 Net Primary Income increased to 4.3% during the quarter. Meanwhile, Gross National Income (GNI) posted a growth of
6.4%, faster than previous year’s growth of 6.3%.

 With the country’s projected population reaching 105.8 million in the first quarter of 2018, per capita GDP grew by 5.1%.
meanwhile, per capita GNI and per capita Household Final Consumption Expenditure grew by 4.7% and 4.0%, respectively.

 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 list (UNESCO
Memory of the World Register, UNESCO Intangible Cultural Heritage List, and UNESCO Biosphere Reserve Registry).

The main source of international tourist:

 South Korea
With leisure based and visiting friends and
 The USA
relatives being the main reasons for
 Japan
visiting.
 China
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In domestic market the main sources are urban centers such:

 Metro Manila
With leisure based and visiting friends and
 Cebu
relatives being the main reasons for
 Davao
visiting.
 And Secondary Cities

DOT surveys indicate that in 2010, the top tourist destinations were:
 Metro Manila
 Cebu - Mactan Overall, it is estimated by DOT/NSCB that
 Boracay Island in 2010 domestic and international
 Camarines Sur tourism contributed 5.76% to GDP and
 Baguio City directly employed 3.69 million persons or
 Davao City 10.25% of total employment in the
 Zambales (including Subic) country.
 Bohol
 Camiguin Island
 Negros Occidental
 Cagayan Valley
 Ilocos Norte
 Puerto Prinsesa

PHILIPPINES PRODUCT PORTFOLIO

1. Nature Tourism
2. Cultural Tourism Market – product analysis recommends
3. Sun and Beach Tourism prioritizing nine tourism products towards
4. Cruise and Nautical Tourism enriching the tourist experience and
5. Leisure and Entertainment Tourism boosting product diversification.
6. MICE and Events Tourism
7. Health, Wellness, and retirement Tourism
8. Diving and Marine Sports Tourism
9. Education Tourism

TYPES OF TOURISM IN THE PHILIPPINES

1. Beach and Diving Tourism
- As an archipelago, the country is surrounded by water, with beautiful beaches all over the part of the country. 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.
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 Mt. Apo, Mt. Pinatubo, Mt. Halcon, Mt. Banahaw, Mt. Makiling, and Mt.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 Philippines environmental corridors.
- Various universities in the country have been influential in research tourism, especially for graduate students and
students seeking better review centers.
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 have
doubled in the past 10 years.
- The country was conferred its first UNESCO Creative City Through Baguio in 2016.
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 place of worship such as dambanas are also present throughout the
country.
6. Fiesta Tourism
- Various festivals in the country are flocked annually by both locals and foreigners. The country has been known as
traditional capital of the world’s festivities and capital of fun due to the thousands of festivals which happen in the
country, most of which are annual spectacles.
 MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

PLACE FESTIVAL PLACE FESTIVAL

Cebu Sinulog Bicol Ibalong
Davao Kadayawan Bacolod MassKara
Aklan Ati-atihan Pampanga Giant Lantern
Iloilo Dinagyang BATAAN
Baguio Panagbenga Orani Alimango Sugpo
Marinduque Moriones Morong Pawikan
Quezon Province Pahiyas Abucay Palis Lasa
Bulacan Obando Fertility Rites Balanga Banga
Leyte Pintados Samal Senakulo
Bohol Sandugo Dinalupihan Water Festival
7. Wellness Tourism
- Wellness tourism has recently doubled its contribution in to Philippine tourism due to the rise of hilot (ancient Filipino
art of healing) practice in spas, bath houses, and hotels.
- Hilot havens include Camiguin, Siquijor, and Antique, while staycation destinations include the hotels of Manila,
Bataan, Batanes, Tagaytay, Baguio and Bukidnon.

ECONOMIC IMPACT
The tourism industry generates substantial economic benefits to both host countries and tourist’s home countries.
Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the
expected economic improvement. According to the World Tourism Organization, 698 million people travelled to a foreign country in
2000, spending more than US$ 478 billion. International tourism receipts combined with passenger transport currently total more
than US$575 billion – making tourism the world’s number one export earner, ahead of automotive products, chemicals, petroleum
and food.

Tourist Attractions can:

1. Contribute to government revenues, direct contributions are generated by taxes on incomes from tourism employment and
tourism business, and by direct levies on tourists such as departure taxes.
2. Provide employment.
3. Stimulate infrastructure investment.
4. Contribute to local economies.
5. Provide foreign exchange earnings.
Other Examples of Tourist Attractions are:
1. Forest, national parks and reserves of flora and fauna;
2. Communities of different ethnicities;
3. Constructions and structures and historical places;
4. Cultural and sports event;
5. Art galleries and museums;
6. Botanical gardens and zoos;
7. Monuments;
8. Theme parks;
9. Historical trains and ships;
10. Viewpoints.

MAP OF
THE REPUBLIC OF THE PHILIPPINES
 MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

THE MUSLIM MILLENIAL TRAVELERS

 The rise of Muslim travelers is projected that by 2020, Muslim travel is set to generate an income of up to US$220 billion
as reported in the Mastercard Crescentrating Global Muslim Travel Index 2018. Base on the index, this is no small trend to
be ignored and cast aside especially by those who are engaged in tourism and hospitality industry, and to any country
planning to capitalize on tourism industry as major source of income.

 Muslim travelers have never let their religion prevent them from travelling; as far back as the 9 th century, Islamic explorers
such as Abu al-Hasan al-Mas’udi, the “Herodotus of the Arabs”, and Ibn Battuta travelled the world, examining the
culture, geography and history of far-flung countries.

 In the 21st century, Muslim travel is accelerating at an ever faster speed, and brings with it millions of travelers who want
to see the world in a faith-compatible manner.

 To tap this growth, all tourism industry stakeholders must have a clear understanding of the broad tenets of Muslim-
friendly travel. This article will examine those faith-based needs and how Muslim travel agencies can take advantage of
those needs to successfully capture market share.

Who are the Millennials?

- Famous labelled “Generation Y” or the “Net Generation”.
- The term usually applies to individual who reached adulthood around the turn of the 21 st century; however, the precise
delineation varies from one source to another.
- Neil Howe and William Strauss are often credited with coining the term. Howe and Strauss define the millennial cohort as
individuals born between 1982 and 2004.

Millennial Characteristics
a. Tech Savvy ( 2 screens a day)
b. Communicate with text
c. Curator and sharers
d. Now Focused
e. Optimistic
f. Want to be discovered
g. Dependent
h. Entitled
i. Self – centered

MUSLIM MLLENNIALS & TRAVELLING

- We are in the era of digitalization, technology and exuberant modernization. However, even in this changing modern
world, one thing is evergreen: humans are wanderers at heart, and travelling has fast become a lifestyle rather than just a
dream. In the 21st century, travelling has become more than a trend, and many people can afford to travel no matter how
fragmented the travel industry has become.

- Interestingly, approximately one billion Muslim under the age of 30 in Muslim majority countries make up a large portion
of Muslim millennials!

- By 2030, Muslims are projected to make up 29% of the global young population aged 15-29.5. These millennials are avid
travelers, and based on The Mastercard- HalalTrip Muslim Millenial Travel Report 2017 (MMTR2017). This is a sector
predicted to inject US$100 billion worth of travel expenditure into travel industry by 2025

- These figures were released during the Arabian Travel Market’s Global Halal Tourism Summit 2018, which took place at
the Dubai World Trade Center on 24th April this year. Faeez Fadhlillah, Founder &CEO of Salam Standard and Tripez,
highlighted the growing importance of Muslim millennial travelers that is illustrated by the changing global socio-
economic trends, and underscored potential pent-up demand in the first seminar of the Summit, entitled “Halal Tourism –
How far have we come?”.

- At 35 days a year, millennials log more travel days than any other generation. While they share Gen Z travelers’ #YOLO
philosophy, they prefer all-inclusive, worry – free beach vacations and spa treatments.

- 70% of millennials stayed in a hotel on their last trip, more than any other generation. However, they also spent less of
their budget on hotels than other generations.

- As the Muslim millennial market continues to expand, there is no denying that they will be a key driver of growth for the
travel industry.
 MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

- Service providers looking to tap into this segment need to understand Muslim millennials’ relationship with travel and
what research dhows they value; things such as authenticity, affordability and accessibility. Providers must also cater to
Muslim millennials’ faith based needs and requirements.

THE MUSLIM FRIENDLY URBAN ENVIRONMENT

- Some of the most welcoming features of Muslim travelers in an urban environment are facilities that allow Muslim
travelers to perform the five obligatory daily prayers, each of which must be perform within a specific window of time:
pre-dawn, afternoon, evening, sunset and night.

- In countries with a sizeable number of Muslim visitors, it is common for public spaces such as airports, bus and train
stations, shopping complexes and tourist attractions such as theme parks to provide dedicated prayer facilities for their
patrons.

- For a facility to be conductive to prayer, the space should be clean, enclosed, segregated between men and women and
equipped with facilities for ablution.

- And based on projections, young Muslims aged 15-29 will comprise nearly 30% of the global population by 2030. And, to
ignore this trend would be foolhardy.

- As technology makes booking travel even easier, flights and transportation create links across the Middle East, and north
America and Asia rapidly expand, Muslim travelers are being offered a choice of destinations previously unavailable to
them. These are often the destinations which have traditionally been thought of as difficult for Muslims to visit.
 MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

TRAVELLER’S MOTIVATIONS AND PROFILE

OBJECTIVES:
1. Understand the various theories of motivation that contribute to tourism and hospitality industry;
2. Acquire understanding of travelers’ motivation;
3. Learn the profiles of various travelers;
4. Acquire knowledge on motivation that can be used in tourism and hospitality product development; and
5. Understand what motivates the different kinds of travelers.

Application of the Motivation Theories into Tourism Practice

Tourist do not just travel for nothing. Not anyone without reason nor having no intention to engage in any activities on the
course of the travel. To understand what motivates the tourist in travel and tourism, it is important to take a look some theories
that pertain to motivation and needs. This will help industry stakeholders engaged in the delivery of service to the tourist
understand what should be delivered to the clients.

Maslow’s Hierarchy of Needs in Connection with Tourism

It suggests that people are motivated to fulfill basic needs before moving on to other. In this paper the Maslow’s 5-stage
theory on motivation, extended by cognitive and aesthetic needs (Zelenka and Paskova 2012) is applied to the condition of rural
areas.

Level 1: Physiological Needs: every tourism destination must meet two basic needs physiological needs and safety. In tourism, the
physiological needs are connected to gastronomy and accommodation. In rural, tourism, the supply side is usually concentrated on
food and customs adherent to the particular region or village.

Level 2: Safety Needs: this is a reflection of location’s character, social life, risk of undesired pathological characters. Calm and peace
are prerequisites on physical and mental nursing. Entrepreneurs in rural tourism do not provide just comfortable accommodation or
tasteful food. Their business is based on friendly atmosphere, safety, serenity, and family peace, tradition and custom of their
region, on responsible relation to natural and human surrounding.

Level 3 and 4: Social Needs: such as being part of a particular group. These are needs of esteem connected with self-esteem or with
esteem of others. In case of rural tourism personality, hospitality, uniqueness and hosts’ courtesy are required. Courage and passion,
but also responsibility, devotion and discretion belong to any kind of business.

Level 5 and 6: Cognitive and Aesthetic Needs: Cognitive needs are described such as knowledge and understanding local life style,
heritage, and traditions, or aesthetic needs such as appreciation and search for beauty, balance and form.

Level 7: Self Actualization: (Self Realization Needs) are on the top of the Maslow’s hierarchy. These refer to the needs for personal
cultivation, needs realizing personal potential, self fulfillment, seeking personal growth and peak experiences. In terms of rural
tourism, the level of self-realization is dependent on a particular rural locality, structure and quality of tourism services.
Plog’s Psychographic Tourist Profile

- For tourist classification Plog’s psychographic motivation theory can be used. This theory classifies tourists along their
personal characteristics, lifestyle and personal values, to psychocentric at one extreme to the allocentrics at the other.

- Psychocentric are represented by people concerned on their own affairs (i.e non-adventurous visitors, who often
require standard services, while allocentrics are independent tourist seeking for adventure or experience).

- Between these two are extremes are midcentrics. Midcentrics actually represent majority of tourist, and these are
people who occupy borders with near psychocentric and near allocentics.

- These are tourist relatively flexible in their needs (Plog. 1974). As already mentioned tourist in rural areas require
authentic pristine rural locality with “romantic” and “traditional” life.

- On the other hand, they are usually easy going people, who value low prices for products, or seek activities outside
beautiful landscapes and nature (e.g. Pesonen 2012).

- Study by Cai and Li (2009) presents serveral similarities for rural tourist: they are motivated by opportunities to explore
nature, participate in outdoor activities, search for peace and quiet, family atmosphere.

Iso Ahola’s Model of the Social Psychology of Tourism

- Iso Ahola performed research on a two-dimensional leisure motivation theory: escaping (everyday environments,
routine, everyday problems, familiar environments, tensions, stress and appeal of the new situation), seeking (some
rewards).

- According to this theory, both these elements have personal and interpersonal components.

- The model covers four aspects of the needs according to these main elements (escaping and seeking):
o Escaping personal environment
o Escaping interpersonal environment
o Seeking intrinsic personal rewards
o Seeking intrinsic interpersonal reward