WORLD TOURISM INDUSTRY AND ECONOMY

WORLD TOURISM INDUSTRY AND ECONOMY

World Tourism Industry and Economy In order to find out the contribution of the travel
interesting industry to a particular country, the Travel and Tourism Satellite Account or the
TTSA is an important tool to determine the economics in detail. The TTSA throws light on
matters related to travel, tourism job opportunities, comparing related tourism industries
including hotels, transport etc. TTSA furnishes information about global travel, tourism
pertaining to growth, demand, export, GDP, employment opportunities, capital investment, etc.
Increase in the world tourism activities means more consumption of energy and natural resources.
Alternative sources of energy are being worked out. Global warming and rise in sea levels pose to
be a great threat to all the nations worldwide. Concepts of eco-tourism is fast catching up with the
common people.

Global Tourism Industry Statistics

The travelling tourism industry is one of the world's largest industries with a global economic
contribution of over 7.6 trillion U.S. dollars in 2016. The direct economic impact of the industry
including accommodation, transportation, entertainment, and attractions was approximately 2.3
trillion U.S. dollars that year. A number of countries such as France and the United States are
consistently popular tourism destinations, but other less well-known countries are quickly
emerging in order to reap the economic benefits of the industry.
Worldwide, the tourism industry has experienced steady growth almost every year. Tourist
arrivals increased from 528 million in 2005 to 1.19 billion in 2015. Figures were forecast to
exceed 1.8 billion by 2030. Each year, Europe receives the most international tourist arrivals. It
also produces the most travellers, with approximately 607 million outbound tourists in 2015. In
2015, global international tourism revenue reached approximately 1.26 trillion U.S. dollars,
having almost doubled since 2005. That year, China had the largest international tourism
expenditure followed by the United States and Germany. The leading city in international
visitors spending was Dubai where tourists spent more than 31.3 billion U.S. dollars in 2016.
Global Tourism Industry
1. The travel and tourism industry is one of the world's largest industries with a global
economic contribution direct indirect and induced of over 7.6 trillion U.S. dollars in 2016. 2.
A number of countries such as France and the United States are consistently popular tourism
destinations.
3. The contribution of tourism to economic well-being depends on the quality and the
revenues of the tourism offer. UNWTO assists destinations in their sustainable positioning
in evermore complex national and international markets, UNWTO points out that
particularly developing countries stand to benefit from sustainable tourism and acts to
 help make this a reality. UNWTO – United Nations World Tourism Organization, is the
UN agency dedicated to tourism.

The Three World Model

In 1952, Alfred Sauvy, a French demographer wrote an article in the French magazine
L’Observateur which ended by comparing the third world with the third estate. Other sources
claim that Charles de Gaulle coined the term Third World, maybe de Gaulle only has quoted
Sauvy.

The map above shows the countries of the US aligned countries of the First World (in green), the
Communist states (in red), the Third World (in yellow). European neutral states (in white), and
countries which have been communist nations for a short period in light red.

First World Countries

A country that has a highly developed infrastructure, economy, life expectancy, literacy, standard
of living, education, population, happiness, healthcare, and child welfare, is considered to be
ranked as a highly developed country and is included in the list of first world countries.
Third World Countries
The term Third World was originally coined during the Cold War to distinguish those nations that
are neither aligned with the west nor with the east, the communist bloc. Today, the term is often
used to describe the developing countries of Africa, Asia, Latin America, and Oceania.
Third world countries are now making strides in terms of economic growth, there are still others
that are not catching up. Internal clashes of its residents, political problems, and geography are
just some of the factors why these poor countries have remained for so long.

THE PHİLİPPİNE TOURİSM INDUSTRY AND ECONOMY

Origins of Tourism and Hospitality in the Philippines

Tourism and hospitality in the Philippines began when the original inhabitants of the country
roamed around in search of food. Inter-tribe travel occurred, although the mode of travel was
crude. A more recognized form of tourism and hospitality appeared in the Philippines when the
country was discovered by Ferdinand Magellan and when galleons or wooden boats sailed
between Mexico and the Philippines during the galleon trade.
During the American occupation of the Philippines, Americans were able to reach Manila after
two weeks on board the Pan-American Airways air-clippers. In the 1920’s the steamship and the
airline pioneers, the “China Clipper” and the “Manila Clipper’, brought some passengers to
Manila via Hong Kong.
The introduction of more comfortable and faster means of transportation gave the early impetus
for tourism and hospitality in the Philippines. Travelers from the US, China, Japan, and Europe
were provided inland tours by entrepreneurs with their unregistered private cars and coaches
called “colorum”. Colorum means illegal tour handling and the illegal use of private vehicles for
public use. It was tolerated by the government authorities at that time since tourism was not yet
developed.
In 1952, the first tourism and hospitality association in the Philippines was organized. This was
the Philippine Tourist and Travel Association (PTTA), which was organized to put together all
existing travel establishments serving both domestic and international travellers. The PTTA was
funded by the government to promote the country’s tourism and hospitality industry. Later, the
government organized the Board of Travel and Tourist Industry (BTTI) to regulate, supervise,
and control the tourist industry and to subsidize the PTTA as its promotional arm. In the late
1950s, more hotels and restaurants and entertainment facilities were established.
The Philippines had undergone economic, social, and political crises starting in the 1960s up to
the 70s, which hindered the development and promotion of tourism and hospitality. It was only in
1972 after the declaration of martial law when tourism and hospitality in the Philippines
prospered. This was due to favourable conditions such as safety of tourism and hospitality, better
services and sanitation facilities, more financial support from the government, and the vigorous
cooperation of the private sector. Thus, the Philippines became a ‘bargain destination’ to foreign
visitors. A temporary ‘tourist boom’ existed in the Philippines in the early 70s.
The National Tourism Organization (NTO) of the Philippines or the Department of Tourism has
embarked on several plans and programs to ensure the pleasant and the hospitable entry, stay, and
departure of tourists, as well as to assure a harmonious, positive, and constructive development of
the tourism and hospitality industry.

Travel and Tourism Industry in the Philippines

Tourism is an important sector for Philippine economy. In 2019, the travel and tourism industry
contributed 12.7% to the country's GDP. The Philippines is an archipelagic country composed of
7,641 islands according to the latest data by the National Mapping and Resource Information
Authority. The country’s rich biodiversity is the main tourist attraction of the Philippines also its
rich historical and cultural heritage.
The tourism industry is very important to the Philippine economy given its contribution to job
creation and revenue generation. Tourism related activities with the highest contribution to the
Tourism Direct Gross Value Added (TGVA) include shopping accommodation services and food
and beverage services

Economic Contribution of Tourism in the Philippines

The Philippines’ tourism industry is a significant source of the country’s GDP throughout the
years. In terms of tourism sector GDP share in Asia, the Philippines' share was one of the highest
ranking. In the past year, though, the COVID-19 pandemic had disrupted the tourism market’s
supply chain resulting in an economic downturn for the Philippines. This year, the Philippines'
tourism industry has created major strategies and plan for domestic traveling in the new normal to
keep tourism alive and going with the closure of international borderline.
All forms of tourism expenditures posted downturns in 2020: inbound tourism expenditure
declined by -77.9 percent, while domestic tourism expenditure by - 82.3 percent, and outbound
tourism expenditure by -73.2 percent. Internal tourism expenditure, comprising inbound and
domestic tourism expenditure, decreased by -81.6 percent.

10 Best Tourist Spots in the Philippines

1. White Beach, Boracay
Long hailed as one of the best beaches in the entire world, Boracay’s claim to fame is its
4-kilometer stretch of pure white, powdery sand called White Beach. Cliche as it sounds,
White Beach is truly postcard-perfect, with tall coconut trees lined up and crystal-clear
calm waters rounding up its unmatched beauty, making it the top attraction in Boracay
trips. Its prominence in global publications has drawn in an influx of tourists over the last
decades, and there is no shortage of hotels, restaurants, and bars in the entire island.
2. Chocolate Hills, Bohol
Included in the UNESCO World Heritage Natural Monuments list, the Chocolate Hills of
Bohol are a geomorphic wonder and truly a sight to behold. It is one of the best places in
the Philippines to offer a unique landscape, with its 1,268 cone-shaped hills that turn
 chocolatey brown during the dry season, hence its name. The limestone hills vary in size
but almost look similar in shape and range from 30 to 120 meters in height.

3. Puerto Princesa Underground River, Palawan

The gateway to the Philippines’ Last Frontier, Palawan, is its capital Puerto Princesa. It is
here that you can find the world’s longest navigable underground river and a UNESCO
World Heritage Site, the Puerto Princesa Underground River or the Puerto Princesa
Subterranean River National Park. Paddleboats of the Puerto Princesa underground river
tour cruise through scenic limestone cliffs as it makes its way through the 1.5- kilometer
underground river cave.

4. Cloud 9, Siargao
Siargao’s rise as a top tourist spot in the Philippines is nothing short of meteoric. Once a
sleepy island in Surigao del Norte, it has become one of the favorite destinations and
playgrounds for travelers, and it is primarily because of one activity: surfing. It is now
known as the Philippines' surfing capital, and some even regard it as the surfing mecca of
Asia. Surfers are drawn to Cloud 9, the most famous surfing spot in the entire country.
From November until April, all is well with Cloud 9’s thick tubes, making it a perfect
place to get stoked (note: it is recommended for advanced surfers only).

5. Cebu’s Beaches and Diving Spots

Cebu has been recently awarded as part of UNESCO’s Network of Creative Cities, but its
main treasure lies deep down. The island draws over two million foreign travelers every
year, greeted by rich waters teeming with abundant marine life. Cebu boasts some of the
best diving spots in the entire country and even the world, featuring underwater caves,
shallow shipwrecks, and marine sanctuaries. White sand beaches of Cebu await visitors of
Mactan, Camotes, and Bantayan Island. Off the northernmost tip of Cebu, tiny
Malapascua Island packs many surprises, including diving with thresher sharks.

6. Banaue Rice Terraces, Ifugao

Hand-chiselled some 2000 years ago, the Banaue Rice Terraces in Banaue of Ifugao,
North Luzon, is a remarkable destination and is truly one of the most beautiful places in
the Philippines. The Ifugao people were highly skilled in carving both wood and
mountainsides. The Banaue Rice Terraces is listed as a UNESCO World Heritage Site. It
offers spectacular views of emerald hues during the rice-growing seasons of April-May
and October-November.
7. Rizal Park, Manila
This 60-hectare urban park is where you will see the Rizal Monument, marking the
execution site of the country’s national hero, Dr. Jose Rizal. Manila Bay’s breeze keeps
the Philippine flag waving from a 46-meter flagpole fronting his monument. The Park
also features manicured gardens, ponds, and a wide water fountain that lights up and
dances to Filipino tunes by sunset. The Park area is also home to a network of National
Museums that you can visit.
8. Kayangan Lake, Coron,
Palawan Kayangan Lake tours will take you to the jagged limestone cliffs and islets
surrounding the lake. All these add up to a dramatic landscape, best seen from a 10-
minute climb up a hill. Curiously, this view is not of the actual Kayangan Lake but the
area where the tour boats park, but it is still breathtaking nonetheless. As spectacular as
the views are above ground, the real gem is hidden underneath the lake’s glass-like
waters. Rock formations and schools of fish abound, making the area a favorite
snorkeling and free
diving spot for visitors.

9. Kawasan Falls, Cebu

With a height of 40 meters, the first cascade, or level, is where most visitors stay, swim,
and enjoy a natural water massage on board a bamboo raft. A 10- minute trek takes you
up to the quieter second cascade. Kawasan Falls is also the endpoint of the popular
adventure activity, the canyoneering adventure. This tour starts in Kanlaob River in the
town of Alegria, where you make your way to Kawasan, swimming along streams,
rappelling through natural rock walls, and finally jumping off mini-waterfalls.

10. Taal Volcano and Lake, Tagaytay, and Batangas

Locals and foreign visitors from Manila often take a quick escape from the megacity and
make their way down south to Tagaytay, a relaxing town famous for its cool weather,
magnificent views, and many tourist spots. The best views face Taal Volcano, the world’s
smallest active volcano. The volcano sits on an island within a lake within an island. If
that is not interesting enough, you can hike up to the volcano crater with excursions to
Taal Volcano. An outrigger boat first takes you on a 15-minute ride to Volcano Island,
and from there, you can do a 35-minute hike or ride horseback all the way to the main
crater.