Tourism and

Hospitality
Marketing
Topic 3: THE TOURISM SYSTEM
IN THE PHILIPPINES AND
TOURISM SUPPLY
Benjo M. Quidulit
The Department of Tourism (DOT) sees the global
recognition and the pull of Philippine destinations
on international tourists as two of the milestones
the sector reached in the first year of the Marcos
administration.

The Philippines bagged titles as the World’s

Leading Beach Destination, the World’s Leading
Dive Destination, and Asia’s Leading Tourist
Attraction (Intramuros) at the 2022 World Travel
Awards (WTA).

The country was also hailed as World’s Leading

Country Destination at the Uzakrota Global Travel
Awards in Turkey.
The Philippines was also recognized as the
Emerging Muslim- Friendly Destination at the Halal
in Travel Awards 2023 in Singapore.

This year, the country is vying for six titles for the
Asia category of the 30th WTA.
The DOT also noted the tourism resurgence in
2022 after the country attracted 2.65 million
foreign arrivals, surpassing the 1.7 million yearend
projections by nearly 1 million additional visitors.

Of this number, 1.8 million or 69.32 percent arrived

between July 1 to Dec. 31, 2022.
Domestic tourism, it said, served a pivotal role in
the post-pandemic resurgence of Philippine
tourism last year, with the DOT recording over 102
million domestic trips up by 176.18 percent
increase from 37.28 million in 2021. Internal tourism
expenditure last year reached PHP1.87 trillion, a
131.2 percent increase from PHP810.20 billion in
2021.

The Tourism Direct Gross Value Added share of

the sector to the Philippine economy as
measured by the Gross Domestic Product in 2022
was estimated at 6.2 percent and valued at
PHP1.38 trillion, 36.9 percent higher compared
with the PHP1.00 trillion in 2021. As of July 21, the
DOT has recorded 3,017,224 foreign visitor arrivals,
less than 1.8 million short of its 4.8 million target for
2023.
THE KEY PLAYERS
The marketing of the Philippines and its various
destinations is primarily undertaken by the tourism
government sector; while private sector entities
undertake the marketing and sale of specific products
and services. Hudson (2008) enumerated these
players:

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 THE KEY PLAYERS
1. Private and Non-profit Sector – include industry associations established to
protect special interest groups, such as travel agency associations.

2. Public Sector Services – covers national, regional, or provincial tourism

organizations. They develop marketing programs to promote their
destinations to intermediaries and individual tourists. The Department of
Tourism and provincial tourism offices fall into this category.

3. Suppliers:
a. Transportation Industry
b. Lodging Industry
c. Food Sector
d. Retail/Shop Sector
e. Destination organizations/local Community

4. Travelers/ Consumers

Hospitality and Tourism

6 20XX
Marketing
 MANAGEMENT OF TOURISM SUPPLY
Tourism Management is a complex sector involving a wide range of economic
operations. Tourism supply is one of the operations. It is highly reliable on the natural,
artificial, or man-made, operating, and regulatory components involved in creating the
tourism product. The supply elements are geographically confined to a fixed place
hence, the stakeholding businesses need to provide products and services by putting
costs and anticipating the promotion of their individual products and revenue.

It influences an entire tour from starting the tour to ending it gracefully and
satisfactorily. Let us see what it is and what makes it a bundle of tourists’ satisfaction.

7 Presentation title 20XX

 What is TOURISM SUPPLY?

The tourism supply of an industry is derived by summing the value of

tourism products sold by the tourism industry to the tourists It takes into
account accommodation services, food, transport, and other retail sales.

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Components of
Tourism Supply

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1. Attractions
They are the places the tourists perceive as
satisfying their leisure-oriented needs.

a. Natural Attractions − Caves, canyons, rocks,

waterbodies, landscapes.
b. Man-Made Attractions − Theme parks, towers,
bridges, architecture, temples, mosques, churches,
and monuments.
c. Cultural Attractions − Historic sites, monuments,
local arts and crafts, local folk core, music and
dance.

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2. Transportation

Road − Car, bus, cycle.

Rail − Long-distance, high-speed, commuter, or
intercity trains.
Water − Boats, ferries, cruises.
Air − Carriers that operate on a fixed schedule,
Charters that operate as and when required.

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3. Intermediaries

They are the mediators.

Travel Agents − The business of selling

hospitality and tourism products.

Tour Operators − They deal with the

operating components for rates.

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4. Destination
It is the place the tourists visit. It is composed of −

Accommodation − Hotel, motel, lodge, and guest

house.

Restaurant − Specialty restaurants, themed

restaurants, branded restaurants such as CCD, KFC,
Bistros, and takeaway food joints.

Tourist Facilities − Pubs, entertainment parks,

shopping centers, and casinos.

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5. Activities
Adventure Sports − Mountain biking, bungee
jumping, rafting, and other similar activities.
Leisure − Basking on beaches, swimming, dining
near waterbody.
Business Activities − Attending seminars, business
meetings, and promotions.
Health Activities − Attending Yoga sessions,
exercising, undergoing naturopathy, and similar
activities.

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 UNDERSTANDING THE MANAGEMENT OF TOURISM SUPPLY

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Categories of Tourism
Supply Components

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1. Natural Components
They are mainly the Environmental
components.

They are the natural elements for visitors’

experience and enjoyment.
- Climate
- Milieus of the destination
- Flora and fauna
- Natural beauty of destination

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2. Constructed Components
They are the infrastructure and superstructures.
They include all surface, underground, and above
the ground constructions and facilities.

- Water Supply System and Electric supply system

- Cooking gas supply system
- Drainage and sewage system
- Airports and Transport hubs
- Accommodations/Hotels/Restaurants
- Museums
- Shopping centers

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3. Operating Components
They are mainly related to the services. They
include the work force that is instrumental in
imparting excellent experience to the tourists.

- Transport service
- Food service
- Accommodation service
- Service at the places of attraction

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4. Regulatory Components
They are the permitting authorities.

- The public sector (Government

policies)
- Licensing
- Civil rights authorities
- National Government Organizations
(NGOs)

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Thank you