Tourism related investments reach P62 billion in 9 years

CEBU, Philippines - For the past nine years, since year 2000 to 2009, the dynamic tourism industry of the Philippines has acquired total investments worth P62 billion, this according to a study conducted by the Asian Foundation (TAF) and the Center for Research and Communications (CRC).

The research examined the economic impacts of tourism, mainly on job creation, economic growth, and local area development.

Cherry Lyn Rodolfo of the CRC said that the tourism sector has produced over three million jobs in the last nine years.

Citing a data from the National Statistical Coordination Board (NSCB), Rodolfo said that employment generated by the tourism sector reflects 9.5 percent share of the national employment.

As of May 2010, a total of 2,343 tourism-related establishments in Central Philippines, Metro Manila, and Tagaytay produced 46,048 jobs.

In terms of local area development, there is at least a demand of P14 million for food supplies in tourism destinations. Of which, 60 percent is sourced from local markets and neighbors, citing the experiences in Palawan resorts like Amarela, El Nido, Dos Palmas, and Microtel in Boracay.

Investments from private stakeholders also contributed to the increased jobs in tourism-related businesses.

“Their aggressive presence in both international and domestic markets, through their promotions and various packages, continued to entice tourists. The growth in the supply side was spurred by expansions, new businesses that they invested in, which in turn created local employment,” said tourism secretary Joseph Ace Durano.

When asked on the Department’s key strategies for the past years, he said, “A large part of new marketing efforts were DOT-initiated, such as tapping the incentive market in China.”

According to the DOT Planning and Promotions, aside from the traditional markets in the travel trade, particularly US and Japan, alternative, niche market segments have been developed in the past years, which include China, South Korea, Russia, India, and the Middle East.

“The study presented the realistic picture of industry’s gains for the country and our communities. We commend the efforts of TAF and CRC in coming up with a comprehensive report on the key developments in tourism, diversifying our marketing strategies that later on translated to growth in the local level,”   noted Undersecretary for Planning and Promotions Eduardo Jarque, Jr. said. 

Aside from international marketing, the DOT has also been actively supporting community-based, LGU-initiated projects by providing training and technical assistance to local government units. Included in this program are are the Sohoton Cave Tour in Basey, Samar, the Danao Adventure Park in Bohol, and the Iwahig River Project in Palawan.

 “Community-led initiatives greatly helped in the development of tourism in the grassroots level. The DOT was the supporting role in the case of Palawan’s Iwahig River Project. Established and funded by Bantay Kalikasan, the DOT gave technical support, training, and promotions,” Durano said.

“If you look at it, it is a combination of DOT initiatives and various partnerships. It’s the sum of all of these efforts that resulted to the gains that CRC reported about,” Durano continued.

"Tourism propels not only our country’s macro-economic activity, but also encourages growth in small communities, areas that originally were not part of the tourism circuit,” Rolando Cañizal, Director for Tourism Planning and Development, said.

Commenting on the CRC study he added, “Focusing on the effects of tourism at the micro-scale allows for a better appreciation of the long-term benefits in grassroots level. Effective tourism development means finding the hidden qualities in a small town for economic and livelihood growth.”