Why Philippines tourism is facing Challenges?

As of September 29, 2023, the Philippines has surpassed four million tourist arrivals for the year, inching close to the annual target of 4.8 million, as reported by the Department of Tourism. The figures, almost double the arrivals recorded during the same period in 2022, include 91.58% foreign visitors and 8.42% overseas Filipinos. Leading the list of foreign tourists are South Koreans, followed by visitors from the United States, Japan, China, and Australia. This significant uptick in tourism reflects a robust recovery in the sector since the end of 2022.

The Philippines, an island nation of Southeast Asia in the western Pacific Ocean, comprises more than 7,600 islands. Manila is the capital, but nearby Quezon City is the country’s most populous city demographically. The National Capital Region, which includes Manila, is located on Luzon, the largest island in the Philippines. Mindanao is the second-largest island in the Philippines, situated in the southeast part of the archipelago.

The Philippines took its name from Philip II, who was king of Spain during the Spanish colonization of the islands in the 16th century. Because it was under Spanish rule for 333 years and under U.S. tutelage for a further 48 years, the Philippines has many cultural affinities with the West. It is, for example, the second most populous Asian country (following India) with English as an official language and one of only two predominantly Roman Catholic countries in Asia (the other being East Timor). Despite the prominence of such Anglo-European cultural characteristics, the people of the Philippines are Asian in consciousness and aspiration.

Key Tourists places

“Be like a rice stalk, the more grains it bears, the lower it bows.”

 A Famous Philippine Quote

The Philippines, characterized by its humble and delicate nature, stands as a nation endowed with abundant natural and geographical wonders. While every corner of this archipelago is a potential gem, certain localities stand out as particularly compelling destinations.

Tagaytay:

Tagaytay is within a two to three-hour drive from Manila, the capital of the Philippines, Tagaytay beckons with its culinary delights and breathtaking scenery. Renowned for dishes like bulalo (bone marrow) and halayang ube (purple yam jam), Tagaytay Picnic Grove offers a picturesque setting to savor these local delicacies. The Tagaytay volcano and its accompanying lake create an unparalleled landscape, showcasing beauty and charm that are truly unmatched.

La Union:

Situated in the Ilocos region on Luzon Island, La Union is celebrated for its captivating beaches. Beyond the coastal allure, the region’s local Ilocano cuisine adds to its charm, making it an ideal spot for those seeking a harmonious blend of natural beauty and cultural richness.

Puerto Galera:

Positioned approximately 130 kilometers south of Manila at the southwestern end of the Isla Verde Passage, Puerto Galera beckons with a unique combination of water adventures and camping experiences. Surrounded by warm waters and boasting pristine beaches, the island is a haven for nature enthusiasts. The surrounding forests further elevate its appeal, earning Puerto Galera the moniker of “The best of both worlds.”

Corregidor Island:

Seaport aficionados find solace in the memories embedded in Corregidor Island. Nestled in the southwestern part of Luzon Island, at the entrance of Manila Bay, this historical island offers a unique exploration opportunity, blending scenic beauty with a rich maritime past.

Baguio City:

Known as one of the coolest places in the Philippines, Baguio City stands at a high altitude and holds the prestigious title of the summer capital of the country. Besides its refreshing climate, the city is renowned for its exquisite wooden crafts, drawing tourists from around the globe who seek both cool respite and cultural immersion.

Boracay:

Boracay unfolds as a dream destination for every tourist, boasting transparent and glassy sand beaches. The island’s hospitality and accommodations further enhance the allure of this paradise, creating an enchanting environment for those in search of a beachfront escape.

Banaue Rice Terraces:

Nestled on the slopes of Mt. Ifugao, the 2000-year-old Banaue Rice Terraces stand as a testament to the ingenuity of the Ifugao people. Carved into the mountain, these terraces offer not only stunning vistas but also a profound glimpse into ancient agricultural practices, making it a UNESCO World Heritage site and a must-visit for cultural enthusiasts.

Sagada:

A sanctuary for hikers and nature lovers, Sagada captivates with its vast and boundless vistas. The rugged terrain and unique geological formations make it an ideal destination for those seeking an immersive outdoor experience in a setting of unparalleled natural beauty.

Pagudpud:

Pagudpud entices with its crystal-clear waters, white sand beaches, and refreshing cool air. Beyond the serene coastal environment, the region boasts attractions such as windmills, lighthouses, and waterfalls, creating a diverse tapestry for tourists to explore.

Palawan:

Home to the Underground River recognized as one of the seven Wonders of Nature, Palawan unveils a realm of captivating natural wonders. The Cabayugan River, coursing over 15 miles underground through caves adorned with stalactites and stalagmites, culminates in a majestic flow into the West Philippine Sea. Exploration of this subterranean marvel by boat offers an unforgettable journey through Palawan’s unique geological landscape.

Potential of Tourism Industry in the Philippines

As per the data of the Department of Tourism (DOT), the Philippines has recorded over four million international arrivals in the first ten months of 2023. The influx has contributed 344 billion Philippines pesos in revenues to the economy, according to Tourism Secretary Christina Frasco.

The Philippines is one of the tourism-dependent economies in the world that was struck the hardest during the COVID-19 pandemic, bringing its 13% GDP contributions to its knees. To reap the benefits of the potential of the tourism industry in the Philippines, the government launched the “It’s More Fun in the Philippines” campaign, promoting domestic travel, and saw great returns as there was a 39% increase over that same time.

Challenges and Road Blocks for the Tourism Sector in the Philippines

Covid-19 Related issues

If there is one thing that has impacted tourism in the Philippines, it is the COVID-19 pandemic, which has brought unprecedented challenges to the Philippines tourism sector. The industry has been one of the hardest-hit sectors, with a significant decline in international and domestic arrivals. As a result, businesses have suffered due to restrictions on travel, social distancing requirements, and a decrease in tourist spending.

According to the Consumer Report Philippines 2023, which surveyed over 1,000 Filipino respondents in November 2022, more than half 53.6% stated that health and safety-related issues were their biggest worry about traveling in 2023.

Airline Woes & Airfare Costs

The primary task facing the Philippine tourism zone is the limited variety of air hyperlinks among home and international locations. For many years, the US has relied heavily on its domestic airlines to offer service to both local and foreign passengers. However, with a limited range of flights to be had, it may be difficult for tourists to go to a couple of destinations within the same trip. The lack of direct routes from different countries additionally proves to impede the ones hoping to tour the Philippines for a holiday or business experience. Adding to this mission is the high price of airfare that influences the Philippine tourism area. The value of oil fees has been rising step by step during the last few years, and the value of airfare is one of the most affected regions because of this fashion.

Infrastructural challenges

Another challenge facing the Philippine tourism sector is inadequate infrastructure and services such as hotels, transportation networks, and attractions available at tourist destinations across the country. Inadequate infrastructure often leads to overcrowding at major tourist hotspots during peak season and prevents visitors from enjoying all that each destination has to offer.

Way Forward for the Philippines Tourism Industry

The Philippine government has already undertaken various measures to boost the tourism sector. In 2021, it launched the Tourism Response and Recovery Plan (TRRP) to help mitigate the impacts of COVID-19 on the industry and protect jobs, visitors, and communities by providing financial assistance for businesses and individuals in need. The plan also included an incentive program for domestic tourists, which was implemented in late 2021 and it helped revive local tourism by offering discounts on accommodations, food, and activities.

Philippians are hopeful about the future of the tourism industry. Last year, the country welcomed 2.6 million visitors, surpassing its 2022 goal of 1.7 million arrivals. This achievement has encouraged the Philippines to set a new target of attracting 5 million foreign visitors in 2023. This optimism for the future of the tourism industry is grounded in the successful implementation of key strategies and initiatives.

A pivotal catalyst for the envisioned tourism boom in 2023 is the E-Arrival Pass Integration, a groundbreaking initiative streamlining information from five government agencies into a unified platform. This not only removes barriers that could dissuade tourists but ensures a seamless and convenient travel experience. As emphasized by the Department of Tourism Secretary, Christina Garcia Frasco, this integration makes travel to the Philippines as convenient as possible, fostering an environment conducive to tourism growth.

The commitment to excellence in service is highlighted through the “Bisita (Visitor) Be My Guest” Program, launched in 2022. This innovative initiative encourages Filipinos, especially those residing abroad, to become ambassadors for their country by bringing friends to visit. Participants stand a chance to win prizes and enjoy discounts through the program’s privilege card.

Additionally, partnerships for improved tourism centers and the exploration of new markets, particularly focusing on Middle-Eastern tourists, showcase the Philippines’ dedication to enhancing the visitor experience and expanding its reach in the global tourism landscape.

To attract more international visitors, the government is introducing a Tax Refund scheme for tourists starting in 2024. Foreigners will be eligible for VAT refunds on purchases made in the Philippines, further enhancing the country’s appeal as a tourist destination. Simultaneously, the Philippines is diversifying its tourism products, exploring new markets, embracing digitalization, and prioritizing human capital development—endeavors that collectively underscore the nation’s commitment to becoming a regional and international leader in the hospitality industry.

Digitalization in Tourism is another pivotal aspect of the Philippines’ strategy, with the creation of a Tourist Lifecycle App on the horizon. This app, developed in collaboration with the Department of Information and Communication Technology (DICT), aims to provide comprehensive communication links for every aspect of a tourist’s journey, further streamlining the travel experience.

Finally, the emphasis on Tourism Human Capital, and Social Development reinforces the Philippines’ commitment to education. The Department of Tourism (DOT) prioritizes educating one hundred thousand Filipinos in the art of service excellence, leveraging the country’s reputation for warm and welcoming hospitality to position itself as a regional and international leader in the hospitality industry.