An Assessment of the Socio

Economic Impact of the Rapid

Influx of Korean Tourists in
Makati City, Philippines in 2007

By: Emie C. Baylon

MA Asian Studies Student
University of the Philippines - Diliman
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• There is a significant increase in the
number of Korean tourists coming to the
Philippines.
• In fact, at present, they ranked 1 among
all tourists who entered the Philippine
soil.
– Department of Tourism mentioned in its
data that the influx of Korean tourists to the
Philippines has significantly risen to 29.3%
in 2004 – 2005 alone.
Table 1. VISITOR ARRIVALS TO THE PHILIPPINES BY COUNTRY OF RESIDENCE (JAN 2004
and 2005)
Rank Country Jan-Dec % Jan-Dec Growth
2005 Share 2004 Rate
1. USA 528,493 20.1% 478,091 10.5%
2. KOREA 489,465 18.7% 378,602 29.3%
3. JAPAN 415,456 15.8% 382,307 8.7%
4. TAIWAN 122,946 4.7% 115,182 6.7%
5. CHINA 107,456 4.1% 39,581 171.5%
6. HONGKONG 107,195 4.1% 162,381 -34.0%
7. AUSTRALIA 96,465 3.7% 89,175 8.2%
8. CANADA 72,853 2.8% 64,537 12.9%
9. SINGAPORE 69,435 2.6% 60,253 15.2%
UNITED
10. KINGDOM 63,002 2.4% 56,770 11.0%
11. GERMANY 50,411 1.9% 45,092 11.8%
12. MALAYSIA 43,059 1.6% 34,170 26.0%
Sources of Data: A/D Cards & Shipping Manifests
Prepared by: Tourism Research & Statistics Division, Office of Tourism Development
Planning, Product Development and Coordination, DEPARTMENT OF TOURISM
Table 2. VISITOR ARRIVALS TO THE PHILIPPINES BY COUNTRY OF RESIDENCE (JAN 2006
and 2007)

Rank Country January % January Growth

2007 Share 2006 Rate
1. KOREA 70,733 26.0% 58,583 20.7%
2. USA 55,632 20.4% 53,225 4.5%
3. JAPAN 34,947 12.8% 41,014 -14.8%
4. CHINA 9,917 3.6% 13,015 -23.8%
5. CANADA 9,812 3.6% 8,786 11.7%
6. AUSTRALIA 9,414 3.5% 8,577 9.8%
7. TAIWAN 8,419 3.1% 12,793 -34.2%
8. HONGKONG 6,709 2.5% 10,759 -37.6%
9. SINGAPORE 6,691 2.5% 5,808 15.2%
UNITED
10. KINGDOM 6,175 2.3% 5,690 8.5%
11. GERMANY 4,978 1.8% 5,102 -2.4%
12. MALAYSIA 4,723 1.7% 4,136 14.2%

Sources of Data: A/D Cards & Shipping Manifests

Prepared by: Tourism Research & Statistics Division, Office of Tourism Development
Planning, Product Development and Coordination, DEPARTMENT OF TOURISM
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• Is the Philippines really benefitting
from these increasing Korean
tourists?
• What are the effects of rapid influx
of Koreans tourists coming to the
Philippines?
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Tuvez
• Assessment of the socio - economic impacts of Korean tourists in
Makati City (2004 – 2007)
• Why Makati City?
– It is the business capital of NCR.
– Where Filipinos and Koreans would be seen having
interactions (tourism)
– Take - off point before going to other places in the Philippines
– One of the biggest Koreatowns in the Philippines is in Makati
City. (Stretch of Makati Ave. in Brgy. Poblacion)
• Analysis of the reactions of both Filipinos and Koreans toward
each other (Interview using purposive sampling for both Koreans
and Filipinos involved in tourism industry for balance of data)
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• Socio - economic assessment - check and balance for
both Philippine government and Korean government
regarding the state of tourism operations in the
Philippines
– Creation of regulations (for both countries) to improve
tourism operations
– See if assistance can be provided to the maintenance if not
improvement of tourism operations
• Perceptions – further increase the need to create
ways for Korean – Filipino cultural understanding
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Tourist Package Tour Residenc Marital Highest With/with Age Destinati
Arranged in e while Status Education out on
in al Companio Besides
Phil.(Ma Attainmen n Makati
kati) t
Korea Philippin
es
A Y Dusit S College – With 37 Cebu
Hotel Manager partner
B Y Intercon M Occupatio Without 32 Boracay
Hotel nal Group partner
C Y City S Occupatio Without 34 Baguio
Gardens nal Group partner
D Y City M Occupatio Without 32 Boracay
Gardens nal Group partner
E Y Dusit S College With 39 Cebu
Hotel Grad partner
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• Hospitality of Filipinos
• Curiosity – as gained from internet
–Friends encouraged them to go and
visit the country
–Curious to go to huge malls in Makati
–Curious to go to beach resorts and
other scenic spots
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• Positive • Negative
– Good climate (not to - Always Late (no
hot or cold) sense of urgency)
– Cheap cost of living and - Recklessness in
Quality products driving
(agricultural products)
– Huge malls
- Too traffic
– Good services in hotels - Poor airport
– Friendly , hospitable facility
and tolerating people - Poverty (high
crime rate)
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• Positive • Negative
– Significant contribution - Evidence of exclusivity
to tourism receipts (enclaves, tour guides,
(US$702.08 data 2005 reactions to other products)
of DOT) – drive in - Drive for participating in the
making tourism Korean market may bring out
attractive to Koreans possible violations in tourism
– Generated Jobs and and immigration rules
income (Koreatowns - - Package tours arranged
20 – 21% of the outside the Philippines will
revenues of Makati) create a “financial leak” to
the tourism earnings
– Increasing Filipino
- Lack of understanding of both
interests in Korean Filipinos and Koreans to the
Market cultures of each other.
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• Most of these Koreans enumerated have positive and
negative reactions about the Philippines and its people.
• DOT claims that the increasing rates of Korean tourists coming
to the country benefit the tourism industry. Even the local
government of Makati supports the same claim.
– Creation of Korea Towns (enclaves), increasing rates of businessmen
who are motivated to join the tourism operations, motivation for
Filipinos to participate in the increasing Korean Market
– Generation of income and jobs for both Filipinos and Koreans
• On the other hand, a possible “leakage” in the tourism
industry may possibly occur
– high rates of pre – arranged tours in Korea compared to Philippine
rates
– Manipulation of job and business opportunities
• Cultural misunderstanding (both Koreans and Filipinos)
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• Review of tourism – related legislations to
maximize tourism earnings and to equitably
distribute earnings to both Koreans and the
Filipinos
• Invest on educating the locals of the culture of
the Korean tourists coming to the Philippines
and motivate Koreans to get to know Filipino
culture as well.
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• Involvement and partnership among non –
governmental organizations and academicians
that will aid the government in promoting the
knowledge of the Korean culture will definitely be
of help so as the gaps between the Filipinos and
the Koreans could easily be patched up.
• Structured tourism model that will promote
participation from all sectors of the economy
should be present.