Sustainable Tourism Development of Philippines


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The travel and tourism industry around the world is one of the most cherished industries in the world. There are many countries in the world competing with each other in order to attain a high position in the minds of the people and maximize their share in the market. However, due to the complexity of the industry, there are many different elements that have to be taken care of for the sustainable development of the travel and tourism industry. This assignment will discuss all these elements with reference to the Philippines.

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1.1 Discuss how stakeholders can benefit from planning of tourism developments with reference to the Philippines case study

The Philippines has been very popular among tourists in recent times growing demands of new places and new things from the industry around the world. Stakeholders consist of the people who are affected by achieving the objective of an entity including investors, employees, suppliers, customers, supporting authorities, and the local community of the Philippines. The tourism development in the country can include the stakeholders in the process so that sustainable advantages can be attained. These are:

Economic Development- The travel and tourism industry has put in extra effort to plan the tourism business, so they will get numerous benefits in terms of a high degree of success. Also, the government will get the additional revenues in the form of foreign exchange which can be used for the development of the economy. The tourism development will be good for the people of the Philippines as they will get opportunities for tourism-related business and work opportunities which will help them to improve their living standards (Alampay, 2005).

Community- Moreover, the local authorities that are working for nature conservation are another stakeholder who will benefit. The community will get the benefits of resources and marketing to grow personal objectives parallel to tourism development. Competition and employment by tourism are two main considerations for the Philippines community. The development will also boost infrastructure development in the country. Further, it will strengthen the local hospitality sector and will increase the number of hotels and restaurants in the country as well as the quality of service will also be improved keeping in mind the global customers (Añasco and Lizada, 2014).

Resources– Sustainable tourism development will help to protect natural resources. Further, the tourism development process provides the assets and resources in the nation to complete the marketing and contribute to tourism services.

Competitive Edge– The Philippines can attain a competitive edge through the tourism industry to develop the resources available and their use in the nation. Also, businesses and employees get advantages from the development of tourism as they get the chance and scope to provide the best services together with effective control of a novel market.

Integration– In the Philippines, the incoming visitors can support increasing the economic values of the destination development, as an effective integration will improve the revenue model and the nation can get advantages from the outsiders and visitors.

1.2 Discuss the advantages and disadvantages of public/private sector tourism planning partnerships drawing on the Philippines case study

The Philippines has both public and private sectors in the working of the tourism market. The successful implementation of the project can only be achieved by the coordination between both sectors. The advantages and disadvantages arising out of the partnership of private and public sectors are discussed below:


Value for Money– The significant advantage of public-private partnership is the money value creation. It means a project delivery with the same quality as under the conservative procurement for less money or excellent quality project delivery for the same money. Also, PPPs reduce the overall cost of the project due to cost sharing between the two sectors (Aronsson, 2000). The main drivers for money value are risk transfer, long-term contracts, output-based specification, incentives and performance measurement, competition, and private sector management skills.

Cost Efficiencies– Both sectors may have distinct resources and by working in partnerships, these resources can be brought together. It will help to improve the performance of both the sectors and cost efficiencies through increased level of risk transfer, better costing, improved innovation, and close integration of distinct aspects of the project.

Time to Delivery Savings– PPPs can result in time-to-delivery savings, caused by more private incentives to generate revenue and improve the experience with public-private partnerships. The presence of the private sector will restrict the level of corruption which will further result in cost reduction and a shorter period of time for completing the project. The support of the public sector will also help in the smooth sanctioning of various approvals, which will reduce project delays (Choi and Sirakaya, 2005).

Public Treasury Reduction– PPPs support reducing public treasury capital demands for the development of infrastructure. It also provides more freedom to the government to invest in other non-infrastructural activities in the short run.

Wide Support– The PPPs are greatly supported by the national, local regional government, and European governments and by the private sector, due to the money value creation and new income source.


Poor money value– There are some opportunities represented by PPPs to lessen the total cost of the project. However, the developing and tendering costs are generally much more than in conventional procurement. Moreover, the contracts of PPPs are more complicated to administer and negotiate than the contracts of traditional construction due to the involvement of more actors. Also, the delay or inefficiency by any of the sectors will lead to extra cost and time for the completion.

Insecurity– When more than two parties enter into an agreement, there is a threat that the administrative efforts on all sites will be frustrated by less cooperation from the other party. Moreover, when a party enters a tender process then may not granted with concession. Due to such insecurities, the bidder’s number might be limited and thus reduce the tender process competitiveness.

Inefficiencies– The operating contracts of long-term can result in monetary value. But can lead to ineffectiveness because of the less competition and contestability. In the beginning, the tender process may have presented competition, the developer who signed the agreement will have exclusive rights on the facility of infrastructure, thus enjoying the whole monopoly. Throughout the phase of operation, inefficiencies might be created because of a lack of competition and contestability.

Cultural Gap- The cultural gap between the private and public sectors may affect the working styles and performance of each other (Cruz, 2006). This is because the motive of the private sector to participate in PPPs is image-building or profit-making, while the public sector's aim is mainly social attractiveness.

Therefore, it can be referred from the above analysis that the mutual existence of the public and private will be overall beneficial as it would ensure that the economy is balanced and there is also a remarkable growth in the national income of the country (Xiang and Gretzel, 2010).

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2.1 Analyse features of tourism development planning at different levels with reference to the Philippines case study

Tourism planning should be developed considering different levels such as local, national, and international levels in order to nurture and support tourism activities at a particular level. Features of tourism development planning have been analysed at different levels as below:

Local-Level: The local authorities work for the maintenance of the various tourist sites located in a particular region. They should work to preserve the valuable history and traditions. Working together with the local communities and local organizations is essential to improve tourism in the region (Gayle, 2002).

National-Level: Proper planning is needed at this level to promote tourism at the national level. The government and national authorities should act as supervisors at the regional levels. As new projects require higher funds, the government should work at this level to develop sites of tourist importance (Tribe, 2002).

International-Level: Organizations are working at the international level in order to make the Philippines tourism as one of the most popular tourist destinations in the world. Also, organizations like the United Nations Educational, Scientific and Cultural Organisation (UNESCO) help to preserve the heritage values of the country’s various sites (Ghimire, 2013).

2.2 Evaluate the significance of interactive planning systems and processes in tourism development with reference to the Philippines

Case Study

The Philippines is an emerging tourism destination and has limited resources so it needs to utilise them to the best of its ability. For this purpose, they need to have a firm plan in place which includes their study of the market and the proper allotment of their resource. Appropriate planning is significant for the success of tourism. There are many advantages for the government with proper and firm planning (Tosun, 2000). For instance, the planning will be useful to understand the position of the country’s tourism industry in the world and estimate the amount of resources that will be required for the development of the industry. Therefore, proper planning will ensure no wastage of limited available resources. Further, it will help the government to plan for future requirements in order to sustain its position in the market (Gibson, 2009).

Planning is done at different levels and in different sectors. An interactive planning system is created by using the data haul out from different levels. Hence, it eliminates the chances of ambiguity in plans and reduces the chances of over-budgeting. Also, other barriers to tourism development such as socio-cultural depreciation, traffic congestion, and overpopulated destinations can be overcome with the interactive planning system (Hannam and Ateljevic, 2007).

2.3 Evaluate different methods available to measure tourist impact with reference to the Philippines case study

The assessment of impacts on different aspects like economic, social, and environmental are measured as follows.

Economic Factors: The government needs to ensure that tourism development investment should yield positive returns for the country’s economy. To assess the same, the increase in the income of the people or other direct economic benefits of tourism such as a number of job opportunities, and the profitability of tourism-related businesses, are analysed (Hennighausen, 2015).

Environmental Factors: The development should not adversely affect the natural resources or other harmful effects. The Philippines authorities should measure the environmental cost of the project to avoid any potential damage (Stark, 2002).

Social Factors: The impact of tourism is measured on society and culture through various means of conducting surveys, interviews, and secondary analysis from published records or other media sources (Kaosa-ard, Bezic and White, 2013).


3.1 Justify the introduction of the concept of sustainability in tourism development with reference to Philippine's sustainable tourism development

The term sustainability can be defined as “the development that meets the present needs without compromising the future generation’s ability to meet their own requirements.” Moreover, the World of Tourism and Travel Council highlights sustainable tourism planning for the development of sustainable tourism for determining development (Sharpley, 2000). In the Philippines, the tourism development blueprint was created in the country’s TMP (Tourism Master Plan) in 1989-1991. In the year 1993, in a presentation to the WTO (World Tourism Organization), the DOT (Department of Tourism) highlighted some particular elements of the plan that reflected the commitment of the government to sustainability (Kotler and, 2006).

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The term sustainable development of the travel and tourism industry implies that tourist destinations should not be devastated and exhausted and must be preserved so that the tourist site does not lose its soul over a period of time. Moreover, the tourism product should be maintained and timely renewed so that steady tourist flow can be assured for improving tourist satisfaction. Last but not least, the benefits and costs are politically accepted in the Philippines for government entities at different levels like local destination, national, and international (Middleton and, 2009).

3.2 Analyse factors that may prevent/hinder sustainable tourism development with reference to the Philippines

There are the following factors that may hinder sustainable tourism development in the Philippines:

  • Traditional planning does not have a long-term vision that deals only with physical elements. Also, it ignores the environment as a crucial factor in the process of development, making the environmental assessment studies just supplementary.
  • For sustainable tourism, awareness in the host community for the same is crucial. In the Philippines, it is necessary to change the behavior of people regarding preserving natural resources. The government’s intervention will be needed to initiate environmental education in the local schools and community.
  • The private sector comprises various hotels, tour operators, travel agencies, etc. lacks investors who can encourage sustainable tourism as their main concerns are about hospitality and resort development with minimal interest in the environmental aspects.

3.3 Analyse different stages in planning for sustainability with reference to the Philippines

The different steps for a sustainable tourist destination planning process with reference to the Philippines are discussed:

STEP 1: Study recognition and preparation: Authorities (public or private) recognise the importance of tourism as a desirable development option along with the awareness of the demand-supply gaps for which the destination site will be developed.

STEP 2: Setting objectives or goals for the strategy: A clear understanding of the objectives is the next step that needs to be achieved by the development of tourism. With reference to the Philippines, these objectives may be: to exploit the economic benefits of tourism by maximizing foreign exchange earnings and increasing employment opportunities.

STEP 3: Survey of existing data: An existing data search is conducted before the data collection stage.

STEP 4: New survey implementation: Various data related to tourism attraction, travel patterns of tourists, facilities, economic structure, environmental and socio-cultural characteristics, and relevant legal regulations are collected.

STEP 5: Analysis: Market analysis is conducted, existing assets are evaluated, the impact of several factors is analysed and planning is developed.

STEP 6: Policy formulation: The survey data and analysis provide a basic foundation on which several strategies are developed.

STEP 7: Recommendation: The planning team recommends a preferred after selecting on the basis of the analysis.

STEP 8: Implementation of the plan

STEP 9: Monitoring control and reformulating the plan if desired


4.1 Evaluate methods of resolving a conflict of interests to ensure the future well-being of a developing tourism destination such as


The two main attractions for tourists in the Philippines are the resorts and wildlife. The coastal zone area for resorts contains a good mix of salt water and sand providing perfect settings for relaxation. On the other hand, other areas provide several productive, complex, and diverse ecosystems which make interactions with each other (Chok, Macbeth, and Warren, 2007). Most of these issues arise due to business conflicts as distinct access and use restrictions. Tourist overcrowding in one of the areas affects the traffic flow of the other. Therefore, the main focus of the Philippines government should be on tourism planning and tourist facilities operation integration into the instruments of local planning (Alvarez, 2014).

In the Philippines market, there is a high level of competition and complexity between these two businesses which cause conflicts during the course of the operations. The level can be even higher in the favorable seasons when demands are to be met which are never-ending in nature. So in this case the government should formulate a plan in such a way that the problem is solved with mutual benefits (Rigouzzo, 2010). The plan should safeguard access for both the market in order to get out of the conflict smoothly. They should evaluate all the available approaches and select the one in which maximum profit, in the long run, can be secured with the least amount of investment. Moreover, the strategy of tourism planning must preserve the local culture, promote local ownership, and respect local traditions to bring the community closure to saving natural resources (Bramwell and Lane, 2000).

4.2 Analyse the implications of balancing supply and demand with reference to the Philippines Case

Tourist services arise as a response to the rising demand of potential tourists. A balance of demand and supply in terms of quality, price, quantity, and range is necessary for sustainable development. An increase in one side of the supply or demand equation should be supplemented by changes in the other one. Also, the extent and nature of the demand and the connected services and facilities given will also influence directly the wider development aspects (Clifton and Benson, 2006). Although the demand for Philippines tourism is likely to increase in the future, the product's quality and service attributes are constantly changing. Tourists are becoming more critical and experienced, more conscious about quality, and seeking innovative experiences and more value for the money (Neto, 2003). For instance, some of the tourist resorts in the Philippines have already experienced a decline in business due to differentiated offerings by neighboring countries. For this reason, in order to develop the sustainability of tourism, the proper management of demand in terms of providing services as per the fluctuating needs of customers is essential (Cohen and Cohen, 2012).

4.3 Evaluate the moral and ethical issues of enclave tourism in the Philippines Case study

Enclave tourism resorts are mainly operated by foreign operators. In these resorts, the tourists can experience the entire travel intentions in one resort without the requirement of going away from it. The moral and ethical issues related to such enclave tourism in the Philippines are listed below:

  • These resorts take a lot of land and a huge chunk of the seaside where the local people are dependent for living.
  • Most of the natural resources which are limited are consumed by these resorts. For example, water which is used by people for the purpose of drinking and growing crops is used for filling large swimming pools and growing grass lawns (Dwyer and, 2009).
  • The huge traffic flow pollutes the environment like jet emissions.
  • The business of local guides, travel operators, and restaurants is negatively affected as tourists do not wish to go out of the resort premises.
  • The commercialization of national culture to suit the tourists’ expectations is another concern (Du Cros, 2001).

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5.1 Compare current issues associated with tourism development in a developing country and an emerging destination where the impacts of tourism are different

The Philippines, as an emerging tourist destination, should measure its performance for sustainable tourism development against its competitors. Thailand, as a developing country, is far ahead of the Philippines in terms of tourist arrival volume. A comparison of these two markets with respect to several issues such as political, social, and economic is tabled below:

  Emerging destination – The Philippines Developing country – Thailand
Political Issues

A negative image of a politically unstable destination due to many political troubles like highly publicised kidnapping incidents, crime, military coups, etc.
Tourism is highly politicized and therefore, lacks strategic leadership for sustainable development toward long-term growth (Dwyer and, 2000)

Thailand has been also affected by recent terrorist attacks which question security issues in the country.
But the difference lies in the approach, with the use of media marketing, the government is focusing on promoting the country as a safe tourist destination (Liu and Wall, 2006).

Social Issues The Philippines lacks pedestrian safety, tourists find major streets to be empty of consumer shops and pedestrians. Therefore, tourists who are not aware of the non-pedestrian culture are affected by muggings. Comparatively, Thailand has a more pedestrian-friendly urban culture. Also, the local culture serves the purpose of attracting tourists by displaying various traditional languages, arts, and festivals in the streets (Edensor, 2001).
Economic Issues Lower inflation rates in the Philippines than in visitor’s home countries affect overall spending due to higher prices (Faulkner, 2001). On the other hand higher inflation rates in Thailand, tourists find vacation packages at lower prices.


5.2 Evaluate, with recommendations, the future development of tourism in these chosen destinations

The growth of tourism in the Philippines and Thailand has been different in spite of similar South Asian tourism destinations. Thailand seems to be a more tourist-friendly destination as compared to the highly politicised Philippines tourism. The role of government here becomes essential to promoting peace and order. Moreover, the Philippines should learn from the experience of Thailand that a strong public-private partnership is essential for sustainable and integrated tourism development (Tourism growth in Thailand gets back on track, 2017). Its focus should be on minimizing the negativity that has been created by media for the sustainable development of the country’s tourism as well as for the benefit of local communities and the economic growth of the country (Jamal, 2004).


The various elements of sustainable tourism with respect to the Philippines have been discussed in this assignment paper. The report suggests that the concept of sustainable tourism is an effective concept but due to a lack of stakeholders’ interests, mainly local people and government, it cannot be used in an effective manner. There are ample growth opportunities in the travel and tourism industry and especially the Philippines market should consider the environmental aspects of sustainable tourism development for the long-term perspective. Finally, the comparison with a developing country Thailand suggests that profitability is another concern for the long-term sustainable growth of the sector.


  • Gayle, D.J., 2002. Island tourism and sustainable development: Caribbean, Pacific, and Mediterranean experiences. Greenwood Publishing Group.
  • Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
  • Gibson, C., 2009. Geographies of tourism:(un) ethical encounters. Progress in Human Geography.
  • Hannam, K. and Ateljevic, I. eds., 2007. Backpacker tourism (Vol. 13). Channel View Publications.
  • Tribe, J., 2002. Education for ethical tourism action. Journal of Sustainable Tourism.
  • Xiang, Z. and Gretzel, U., 2010. Role of social media in online travel information search. Tourism management.
  • Dwyer, L., Edwards, D., Mistilis, N., Roman, C. and Scott, N., 2009. Destination and enterprise management for a tourism future. Tourism management.
  • Dwyer, L., Forsyth, P., Madden, J. and Spurr, R., 2000. Economic impacts of inbound tourism under different assumptions regarding the macroeconomy. Current Issues in Tourism.
  • Edensor, T., 2001. Performing tourism, staging tourism (Re) producing tourist space and practice. Tourist studies.
  • Faulkner, B., 2001. Towards a framework for tourism disaster management. Tourism management.

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