Industry Review
Tourism is one of the growing industries in the world with annual revenues of over US$3.5 trillion. Tourism, according to World Tourism Organization Secretary-General Francisco Frangialli, is a powerful tool for economic and social development. It comprises more than ten percent of global economic output, as well as accounts for many jobs worldwide.

Tourism Masterplan
In the Philippines, tourism is one of the three strategic sectors expected to "pole-vault" economic development to the year 2000. The two other sectors are trade and telecommunications. The Medium-Term Philippine Development Plan (1993-1998) regards tourism as an important subsector in attaining a "globally competitive and empowered nation." The Plan also recognizes tourism as an effective tool in human development. Tourism is expected to promote the country, not only to increase foreign exchange, but also to attract more investments. The Department of Tourism (DOT) came up with a Tourism Master Plan which will serve as the blueprint for the development and expansion of tourism beyond the year 2000. The plan aims to achieve the following goals:

• Optimize the contribution of tourism to economic growth at a national and regional level;
  
• Enhance and contribute to social cohesion and cultural preservation at a local level; and
  
• Develop tourism on an environmentally sustainable basis and develop a diversity of destinations, attractions and markets to minimize exposure to major internal and external threats to tourism activity.

Accounted Revenues
The Philippines has a lot of tourist destinations to offer because of its rich history, culture, and sceneries. Last year, the Department of Tourism exceeded its target of two million tourist arrivals. This growth is attributed to Secretary Mina Gabor's aggressive campaign in highlighting "Islands Philippines" as a major tourism destination in the Far East. Although the industry exceeded its target, the count is comparatively lower than tourist arrivals in other Asian countries. On the other hand, the Philippines ranked highest in terms of tourism receipts compared to other destination countries. In 1995, visitors spent some US$1,392 per visit, as compared to Europe and the Americas which recorded an average of only US$709 per visit. In 1996, visitors to the Philippines brought in US$2.7 billion in tourist receipts. Thus, the industry continues to be the second biggest source of foreign exchange in the country, next to the US$ 4.3 billion remittances from overseas workers.

Tourism also serves as a means for bringing in foreign investments. Although the exact impact of the industry to the overall economy cannot be fully measured, a lot of changes can be seen in other industries. Tourism Secretary Gabor believes that the impact of tourism in the economy is bigger than the figure derived from the computation of tourist receipts, which is based on the average length of stay of each tourist and the average amount of money he spends in the country each day. She cited the impact of tourism on the publishing industry because tourists need brochures, maps and publicity materials.

According to the 1996 year-end report of DOT, the tourism industry has positioned the country as a prime tourist destination and convention center in the Asia-Pacific region; promoted domestic travel and showcased Philippine history and culture; expanded collaboration with the private sector in tourism infrastructure and destination development especially in the countryside and; strengthened support for the industry by forging agreements with international organizations.

Tourism-Related Activities Implemented In 1996 programs

• Positioned the country as a prime tourist destination and convention center in the Asia-Pacific region
  
• Promoted domestic travel and showcased Philippine history
  and culture
  
• Expanded government-private sector collaboration for tourism infrastructure and destination development
  
• Strengthened support for the tourism industry

Source: Department of Tourism and Attached Agencies' 1996 Year-End Report

Projects

• Implemented special promotional activities such as "Islands Philippines" campaign, "Bring Home a Friend," "Convention City Manila", and "Best of the Islands Philippines"
• Promoted the Philippines in international markets through participation in major international events such as the World Travel Fair (Japan and London), Asian Divers Conference (Singapore), PRINTEMP (France), 1996 APEC Leaders' Summit and Meeting of the Minds Summit.
• Set up exhibits, implementing programs that focus on the centennial anniversary of Philippine independence
• Launched the Philippine Tourism Highway Program and 14 Lead Tour Packages
• Formulated tourism development plans for different regions
• Implemented tourism infrastructure projects through construction, rehabilitation and improvement of different tourist areas
• Fostered community-based tourism by conducting training on Homestay Program
• Generated tourism-related investments by endorsing 113 projects worth P26B to the Board of Investments
• Forged international tourism agreements with the World Travel and Tourism Council (WTTC) for the development of the National Satellite Accounting System for Tourism; American Express International for the implementation of the Mabuhay Host Program for the next 5 years; and United Architects of the Philippines for the development of basic architectural designs for sea and mountain resorts for small-and-medium-size tourism projects
• Tapped technical and financial support to develop tourism by securing technical assistance of the Japanese International Cooperation Agency, forging an agreement with the WTO and securing the commitment of World Bank in providing financial assistance for tourism infrastructure projects.

Accessibility and Funding
Accessibility and inadequate funding are the problems that beset the tourism industry. Accessibility is attributed to the geography of the Philippines, since the country is an archipelago. A lot of beautiful places are isolated from other islands, making access difficult to different islands, in addition to limited transportation. There are a few direct flights from Europe to Philippines which limit more foreign tourist arrivals. Inadequate facilities call for more funding support for tourism-development projects undertaken by the private sector. Recently, a number of airlines addressed the problem of accessibility. Cebu Pacific Air, Inc., Pacific Airways Corporation, and Air Philippines Corporation increased their domestic flights. Cebu Pacific Air expanded its domestic route to Kalibo, Aklan, and increased its flights to Cebu. Pacific Airways Corporation drew up several packages of charter flights to different exotic island resorts throughout the archipelago. It now flies to non-traditional and otherwise inaccessible destinations by having the most extensive route network and serving all 219 airports in the country. Air Philippines Corporation which flies to 12 destinations with 28 flights a week has just launched its Manila-Cebu route and it will go international by 1998. On the other hand, Philippine Airlines and Grand International Airways, Inc. recently expanded their operations in international routes. Philippine Airlines has acquired a new plane to service European flights while GrandAir recently increased its flights to HongKong. These expansions in air transportation will address the problem of accessibility.

Ms. Chan was a former student trainee at MBC. She is finishing her International Studies and Marketing course at De La Salle University

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