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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 competes with each other in order to attain a high position in the minds of the people and maximizing its share in the market. However, due to the complexity of the industry, there are many different elements that have to be taken care for sustainable development of the travel and tourism industry. This assignment will discuss all these elements with reference to the Philippines.
The Philippines is very popular among the tourist in the 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 local community of the Philippines. The tourism development at 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 have put in extra effort to plan the tourism business, so they will get numerous benefits in terms of high degree of success. Also the government will get the additional revenues in 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 opportunity for tourism related business and work opportunities which will help them to improve living standard (Alampay, 2005).
Community- Moreover, the local authorities which are working for the nature conservation are another stakeholders who will be benefitted. The community will get benefits of resources and marketing to grow personal objectives parallel to the tourism development. Competition and employment by the tourism are two main consideration for the Philippines community. The development will also boost infrastructure development in the country. Further, it will strengthen the local hospitability 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– The sustainable tourism development will help to protect the natural resources. Further, the tourism development process provide the assets and resources in the nation to complete the marketing and contribute in tourism services.
Competitive Edge– Philippine can attain a competitive edge by the tourism industry to develop the resources availability and their use in the nation. Also, the business and employees get advantages from the development of tourism as they get the chances and scope to provide best services together with effective control on novel market.
Integration– In Philippines, the incoming visitors can support in 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.
The Philippines has both public and private sector in the working of the tourism market. The successful implementation of the project can only be achieved by the coordination amongst both the sectors. The advantages and disadvantages arising out of the partnership of private and public sector are discussed as below:
Value for Money– The significant advantage of public private partnership is the money value creation. It means a project delivery with same quality as under the conservative procurement for less money or excellent quality project delivery on the same money. Also, PPPs reduce the overall cost of the project due to cost sharing between the two sectors (Aronsson, 2000). The main driver 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 project.
Time to Delivery Savings– PPPs can result in time-to-delivery savings, caused by more private incentive to generate revenue and improve the experience with public private partnerships. The presence of private sector will restrict the level of corruption and which will further result in cost reduction and shorter period of time for completing the project. The support of public sector will also help in smooth sanctioning of various approvals, which will reduce the project delays (Choi and Sirakaya, 2005).
Public Treasury Reduction– PPPs support in reducing public treasury capital demands for the development of infrastructure. It also provide more freedom to government to invest in other non-infrastructural activities in short run.
Wide Support– The PPPs are greatly supported by the national, local and regional government and European government 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 project. But the developing and tendering costs are generally much more than in the 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 sector 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 site will be frustrated by less co-operation of other party. Moreover, when party enters in 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 money value. But can lead to ineffectiveness because of the less competition and contestability. At the beginning, the tender-process may have presented competition, the developer who signed the agreement will have exclusive rights on facility of infrastructure, thus enjoy the whole monopoly. Throughout the phase of operation inefficiencies might be created because of lack of competition and contestability.
Cultural Gap- The cultural gap between private and public sector may affect the working styles and performance of each other (Cruz, 2006). It is because the motive of private sector to take participation in PPPs is image-building or profit-making, while the public sector aim is mainly social attractiveness.
Therefore, it can be referred from above analysis that the mutual existence of the public and private will 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).
The tourism planning should be developed considering different levels such as local, national and international level in order to nurture and support tourism activities at the particular level. Features of tourism development planning has been analysed at different levels as below:
Local-Level: The local authorities work for the maintenance of the various tourist sites located at particular region. They should work for preserving the valuable history and traditions. Working together with the local communities and local organizations is essential to improve the 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 acts as a supervisor for the regional levels. As new projects require higher funds, the government should work at this level to develop the sites of tourist importance (Tribe, 2002).
International-Level: Organizations are working at the international level in order to bring the Philippines tourism as one of the popular tourist destination in the world. Also, organizations like United Nations Educational, Scientific and Cultural Organisation (UNESCO) helps to preserve the heritage values of the country’s various sites (Ghimire, 2013).
The Philippines is an emerging tourism destination and have limited resources so it needed to utilise them to the best of their 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 which will be required for the development of the industry. Therefore, the proper planning will ensure no wastage of limited available resources. Further, it will help the government to plan for the future requirement in order to sustain the position in the market (Gibson, 2009).
Planning is done at different level and different sectors. An interactive planning system is created by using the data haul out from different levels. Hence, it eliminates the chances of ambiguity of plans and reduces the chances of over budgeting. Also, other barriers of tourism development such as socio-cultural depreciation, traffic congestions and overpopulated destinations can be overcome with the interactive planning system (Hannam and Ateljevic, 2007).
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 number of job opportunities, 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 the society and culture through various means like conducting surveys, interviews and secondary analysis from published records or other media sources (Kaosa-ard, Bezic and White, 2013).
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 Philippines, the tourism development blueprint has been created in the country’s TMP (Tourism Master Plan) in 1989-1991. In the year 1993, 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 government to sustainability (Kotler and et.al., 2006).
The term sustainable development of the travel and tourism industry implies that the 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 the 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 et.al., 2009).
There are the following factors that may hinder sustainable tourism development in 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) recognizes 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 of objectives or goals for the strategy: The clear understanding of the objectives is the next step which needs to be achieved by the development of tourism. With reference of the Philippines, these objectives may be: to exploit the economic benefits of the tourism by maximizing foreign exchange earnings and increasing employment opportunities.
STEP 3: Survey of existing data: Existing data search is conducted before the data collection stage.
STEP 4: New survey implementation: Various data related with tourism attraction, travel patterns of tourists, facilities, economic structure, environmental and socio-cultural characteristics ad relevant legal regulations are collected.
STEP 5: Analysis: Market analysis is conducted, existing assets are evaluated, impact of several factors is analysed and planning is developed.
STEP 6: Policy formulation: The survey data and analysis provide 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
The two main attractions for tourists in the Philippines are the resorts and wild-life. The coastal zone area for resorts contains a good mix of salt water and sand provide perfect settings for relax. On the other hand other areas provide several productive, complex and diverse ecosystems which make interactions with the other (Chok, Macbeth and Warren, 2007). Most of these issues arises due to business conflicts as distinct access and uses restrictions. Tourist over-crowding at one of the area affects the traffic flow of the other. Therefore, the main focus of Philippines government should be on the tourism planning and tourists 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 favourable seasons when demands are to be met which are never ending in nature. So in this case the government should formulate 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 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).
The tourist services arise as a response to rising demand of potential tourists. A balance of demand and supply in terms of quality, price, quantity and range is necessary for the 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 of Philippines tourism is likely to increase in future, the products quality and service attributes are constantly changing. Tourists are becoming more critical and experienced, more conscious about quality and seek innovative experiences and more value to the money (Neto, 2003). For instance, some of the tourist resorts in the Philippines have already experienced decline in the business due to differentiated offerings by neighbouring countries. For this reason, in order to develop 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).
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 with such enclave tourism in the Philippines are listed below:
The Philippines, as an emerging tourist destination should measure its performance for a sustainable tourism development against its competitors. Thailand, as a developing country is far ahead from 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|
A negative image of political instable destination due to many political troubles like highly publicised kidnapping incidents, crime, military coups etc.
Thailand has been also affected by recent terrorist attacks which question security issues in the country.
|Social Issues||The Philippine 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 serve the purpose of attracting tourist by displaying various traditional language, arts and festivals in streets (Edensor, 2001).|
|Economic Issues||Lower inflation rates in the Philippines than visitor’s home country affects the overall spending due to higher prices (Faulkner, 2001).||On the other hand higher inflation rates at Thailand, tourists find vacation packages at lower prices.|
The growth of tourism in the Philippines and Thailand has been different in spite of similar South Asian tourism destinations. Thailand seems to be more tourist-friendly destination as compared to 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 which has been created by media for the sustainable development of country’s tourism as well as for the benefits of local communities and 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 lack of stakeholders’ interests, mainly local people and government, it cannot be used in effective manner. There are ample growth opportunity in the travel and tourism industry and especially the Philippines market should consider the environmental aspects of the 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.
Hospitality Management, Resort Management and Spa Management, Restaurant Management, Travel and Tourism Management, Accounting and Book keeping, Business Economics, Business Finance, Business Management and Operations, Business Marketing
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