Ruano, Mary Jannyn

Baluyut, Reinalyn Mae

Alcantara, Camille
Baustista, Crizz Angelica
Boon, Vanesa

Chapter 1
The Economic Effect of Tourism Industry in the Country
INTRODUCTION
Tourism has been criticised for having negative impacts on many of the destinations which
tourists visit. There three major tourism impacts - economic, environmental, & sociocultural. This research looks at economic impacts and finds that although there are some
negative aspects, most economic consequences of tourism are beneficial. These benefits
include the effects of price and income elasticity, and also the economic consequences of
tourism spending, including the generation of foreign exchange.
Tourism is a powerful economic growth engine for the country with great potential to
generate direct and indirect jobs, upgrade the levels of investment, and facilitate foreign
exchange movements. Tourism has major economic significance for a country. All
categories TTpromotion or by changes in air transport arrangement, tax changes and
special events such as festivals will have an impact on patterns of economic activity in
overall economy and especially in the locality who is directly affected.
Economic effect of tourism in the Philippines helped the Filipino economy rise by giving
jobs to the unemployed. Tourism activities give opportunities for the country to have
investments which could help the economy of the Philippines in terms of giving jobs to the
jobless Filipinos in the country. The investment of foreigners through foreign currencies
tends to give resistance for the Philippine peso to brawl against some foreign currencies
and to lessen the debt of the Philippines to the World Bank. Foreign investments also helps
to make the cost of imported good lower than the usual because of the Philippines peso to
US dollar exchange.
The tourism sector of the Philippines are trying their best to improve greater projects for the
foreign tourist/visitor and to improve the way of living of the tourism workers here in our
country. The anticipated growth in international visitor arrivals and domestic travel
movement is expected to bring out a corresponding increase in capacity requirements and
demand for new products, facilities and services, thus paving the way for local and foreign
investment opportunities. The need for improved accessibility will likewise open investment
opportunities in air, water and land transport operations. Department of Tourism likewise
encourages investments in tourism estates and eco-zones historic-cultural heritage projects
as well as ecotourism and health and wellness projects.
1

However, some impacts have been attributed to tourism though they may in fact originate
elsewhere. Instead, more appropriate sources may be the media, the advertising & fashion
industries, new industrial development, urbanisation, modern agriculture, mining and
forestry projects, and government and military activity. But while all these factors can be
described as major source of economic growth of the country, it is widely believed that
travel and tourism do generate larger impacts in our economy.

REFERENCES:
omgjulius.blogspot.com
http://www.tourism.gov.ph/Downloadable%20Files/Chap3%20Philippine%20Tourism
%20Industry.pdf
tourism gov ph
http://www.tourism.gov.ph/Downloadable%20Files/Chap3%20Philippine%20Tourism
%20Industry.pdf

STATEMENT OF THE PROBLEM

Tourism has contributed significantly to the growth and effectiveness of the Philippines. The
tourism industry in the Philippines generates substantial economic benefits to both host
countries and tourists home especially in developing countries.
I dont think that the government is doing their best to improve the tourism spots in the
country because there are still a lot of beautiful places in the Philippines that needed an
improvement but instead of using the money that the tourism brings to improve the
infrastructure in the area theyre using it to improve their own life. And I also think that they
over-centralized NCR as a city that they tend to neglect other provinces in the country.
According to National Statistical Coordination Board the tourism industry contributes 7.8%
to the Philippine gross domestic product (GDP) in 2014. Tourism activities give
opportunities for the country to have investments which could help the economy. Tourism
also helps the Filipino economy rise by giving jobs to the jobless Filipinos in the country.
The income from tourism may be used to improve and conserve the natural
environment/infrastructure of the area that is the reason why tourist came in the first place.
The Philippines is known for terrible corruption, poverty, traffic jam, poor education, and
other economic and social problems that are usually associated with being a third world
country. This gives the Philippines a bad name in the international market in terms of
investment. For this reason, bringing foreign investors into the country is not an easy
process as it takes longer time to convince them. However, as a tourism student we should
think of an idea to promote our own native land. Since all of us basically have a social
media, we can do much by doing simple things like posting pictures of our town in our
social media accounts. All we need to do is take photos of the beautiful sceneries and fun
activities in our town and post it on our social networking site. Also if you have a passion to
write, then blogging about your place can also help promote the place.
The only advice that we can give to those people in the tourism industry is to not stop
making our country more popular in terms of what can they offer to the tourists. Also, an
improvement in every destinations but somehow, still preserve the authenticity of the place
is such a great way to attract more people to visit our country