The importance of tourism for the Philippines
Tourism is vital to our economy and our country. And we must accelerate now more than ever tourism development all over our archipelago.
I know what some will immediately say – that at this time of global slowdown, there will be fewer people traveling so we should not expect more tourists to be visiting us this year.
My answer is this:
First, regardless of the slowdown in the West, tourism will remain a major global industry, accounting for one out of every 9 jobs and 11% of consumer spending. In 2008, tourism arrivals totaled 924 million, a growth of 2% over 2007 despite the second half slowdown. In 2009, the World Tourism Organization projects either modest growth or at worst a standstill.
Third, Tourism is important to our people because it is a major jobs generator as a labor-intensive industry. Today, the travel and tourism industry – with 1.4 million jobs — accounts for 4.1% of jobs in the economy. But this can be substantially increased to as much as 10% percent of employment – the global average — if we fulfill the promise and potential of our tourism.
Fourth, tourism is a major dollar earner, and every dollar we earn from tourism is classified as exports in the country’s book of accounts. Last year, tourism receipts totaled over $4 billion. We earn on average $880 from every tourist visitor. At this time therefore when our export earnings are contracting because of the economic slowdown in the West, tourism can help make up for the shortfall if we increase the number of arrivals.
Fifth, tourism benefits all regions and provinces once they are integrated by adequate infrastructure into the loop of tourism development. I know this like the palm of my hand because I have been governor and now am representative of Ilocos Norte, where tourism is an indispensable source of income and jobs.
Sadly, we could not heed that study because of lack of resources and different priorities for public spending. Today, with a new decade and a new administration dawning on our country, I say it’s time we take up the challenge.
I submit that tourism is deserving of a stimulus package as any other sector in the government’s priority list. It is a mistake that we only allocated P1.2 billion to tourism in the national budget when it can contribute so much more to economic growth and national development.
We have much to learn from what Thailand did with its tourism at the start of the Asian economic crisis in 1997 – a crisis which began incidentally on its shores. In the face of the collapse of its financial system and real estate market, and the massive contraction of its economy, Thailand made a key decision to use tourism as a weapon to get back on its feet. With Amazing Thailand as its banner, it consecrated itself to a multi-pronged program to turn itself into a top tourist destination in the world and enable tourism to contribute to national income in a big way.
Today, just a decade later, Thai tourism accounts for nearly 7 percent of Thailand’s GDP. Thailand is the 18th most visited country in the world with 14 million tourists annually. (France is first with over 79 million tourists.) The average stay of tourists is 9.19 days. Thai cuisine is now ranked as one of the top five in the world. And the country competes in nearly every tourism category – from beaches to wellness to shopping to adventure tourism and whatever.
The point is that the total world tourist traffic is huge and we are getting only a small share of it so far. Even if the traffic volume were to contract this year because of the crisis, it’s no big deal for us to keep or increase our market share if we put together the right package. That is the lesson of every country that has aggressively developed its tourism.
Investing in tourism now is sound because it can boost the economy by generating jobs, increasing foreign exchange income, spreading benefits to the countryside, and enable us to become more competitive in this vital global industry.
The Tourism Industry has once again proven to be a major contributing factor in the consistent growth of the Philippine economy. With arrivals increasing and revenues rising, the Department of Tourism (DOT) is pleased that its efforts have vastly improved the country’s economic landscape, and that it has helped in generating jobs and business opportunities for Filipinos back home. DOT enjoins all Filipino communities in the United Kingdom to be part of the ever-widening effort to project the beauty of our country and attract more visitors to our sun-kissed, friendly shores.