Salcedo Thesis

A MODEL OF TOURISM DESTINATION CHOICE:
PALAWAN PROVINCE CASE
A Thesis Submitted to the Faculty of the

School of Economics
University of Asia and the Pacific
In Partial Fulfillment of the

Requirements for the Degree of
Master of Science in Industrial Economics
By
Althea Mae M. Salcedo
April 2015
i
Althea Mae M. Salcedo. 2015. All Rights Reserved.
TABLE OF CONTENTS
LIST OF TABLES ................................................................................................. iv

LIST OF FIGURES ................................................................................................ v
ACKNOWLEDGEMENTS ................................................................................... vi
EXECUTIVE SUMMARY .................................................................................. vii
CHAPTER I: INTRODUCTION............................................................................ 1
Background of the Study ..................................................................................... 1
Tourism in Palawan ......................................................................................... 2
Statement of the Problem .................................................................................... 6
Objectives of the Study ....................................................................................... 7
Significance of the Study .................................................................................... 7
Scope and Limitations ......................................................................................... 8
Definition of Terms ............................................................................................. 9
CHAPTER II: REVIEW OF RELATED LITERATURE .................................... 11
Neo-classical Traditional Demand Theory ....................................................... 11
Lancaster on Consumer Analysis-Product Characteristics Approach............... 13
Logistic Regression ........................................................................................... 18
Travel Attributes of a Destination ..................................................................... 19
CHAPTER III: THEORETICAL FRAMEWORK AND METHODOLOGY ..... 22
Theoretical Framework ..................................................................................... 22
Lancaster on Consumer Analysis-Product Characteristics Approach ........... 22
Koppelman et al on Consumer-Oriented Transportation Planning Approach
....................................................................................................................... 24
Theoretical Application in Tourism: Destination Choice.............................. 24
Conceptual Framework ..................................................................................... 25
Empirical Framework and Methodology .......................................................... 28
Logit Regression Model ................................................................................ 28
Importance-Performance Analysis Framework ............................................. 29
Survey Design................................................................................................ 30
Sampling Method .......................................................................................... 31
Data Collection .............................................................................................. 31
CHAPTER IV: RESULTS AND DISCUSSION ................................................. 32
ii
Respondents Demographic Profile and Travelling Characteristics ................. 32
Demographic Profile...................................................................................... 32
Travelling Profile........................................................................................... 38
Implications ................................................................................................... 44
Binary Logistic Regression ............................................................................... 47
Binary Logistic Regression (Before Factor Analysis) ................................... 47
Factor Analysis .............................................................................................. 50
Binary Logistic Regression (After Factor Analysis) ..................................... 52
Importance-Performance Analysis .................................................................... 55
CHAPTER V: SUMMARY, CONCLUSION AND RECOMMENDATIONS .. 58
Summary ........................................................................................................... 58
Conclusion......................................................................................................... 59
Policy and Strategy Recommendations ............................................................. 61
Recommendations for Further Studies .............................................................. 63
BIBLIOGRAPHY ................................................................................................. 64
Appendix A: Survey ................................................................................................ I
Appendix B: Binary Regression Before Factor Analysis ...................................... V
Appendix C: Binary Logistic Model After Factor Analysis ................................. IX
iii
LIST OF TABLES
Table 1: Top Destinations in Palawan .................................................................... 4

Table 2: Country of Residence ............................................................................. 33
Table 3: Other Domestic Tourism Destinations considered by the Respondents . 34
Table 4: Classification Table ................................................................................ 40
Table 5: Selected profile of respondents who would revisit vs who would not
revisit Palawan ...................................................................................................... 41
Table 6: Evaluation of Logistic Regression .......................................................... 47
Table 7: Classification Table ................................................................................ 48
Table 8: Binary Logistic Regression (Before Factor Analysis) ............................ 48
Table 9: KMO and Barlett's Test .......................................................................... 50
Table 10: Factor Analysis ..................................................................................... 51
Table 11: Evaluation of Logistic Regression ........................................................ 52
Table 12: Classification Table .............................................................................. 53
Table 13: Binary Logistic Regression (After Factor Analysis) ............................ 53
iv
LIST OF FIGURES
Figure 1: Trend of Tourist Arrivals in Palawan (2008-2013) ................................. 3

Figure 2: Domestic and Foreign Tourists (2008-2013) .......................................... 3
Figure 3: Growth rates of Tourist Arrivals (2009-2013) ........................................ 4
Figure 4: Theoretical Flow.................................................................................... 26
Figure 5: Survey Framework ................................................................................ 27
Figure 6: Empirical Framework ............................................................................ 29
Figure 7: Importance-Performance Analysis framework ..................................... 30
Figure 8: Tourists .................................................................................................. 32
Figure 9: Considered other Domestic Tourism Destination vs. Those who did not
............................................................................................................................... 34
Figure 10: Gender ................................................................................................. 36
Figure 11: Age ...................................................................................................... 36
Figure 12: Civil Status .......................................................................................... 37
Figure 13: Highest Educational Attainment ......................................................... 37
Figure 14: Monthly Income .................................................................................. 38
Figure 15: Purpose of Travel ................................................................................ 39
Figure 16: Source of Information ......................................................................... 39
Figure 17: First-time vs Repeat Visitors ............................................................... 40
Figure 18: Importance-Performance Analysis (all respondents) .......................... 56
Figure 19: Importance-Performance Analysis (respondents who will not revisit) 57
v
ACKNOWLEDGEMENTS
The author would like to express her appreciation and sincere gratitude to the
following:
Mrs. Cherry Lyn Rodolfo (thesis adviser) for her time and patience and
for always guiding me throughout this study
Ms. Viory Yvonne Janeo for being my internal reader, for her time and
for sharing her expertise
Mrs. Deborah Q. Tan for being my external reader and for her time and
inputs about the study
Ms. Maribel Buni and Ms. Ritchel Alcantara and other Palawan tourism
officers for welcoming me to Palawan, helping me finish my survey and
assisting me in securing clearance from CAAP
CAAP office of Palawan for allowing me to do my survey in Puerto
Princesa International airport
Ms. Ma. Cristina Velez Matta for her inputs and comments as a
distinguished member of the Palawan Tourism Council
Research, Education and Institutional Development (REID) for
sponsoring my accommodations in Palawan and sharing their connections
in the field of the tourism industry
My friends, batchmates and the whole IEP family for their continuous
support and care.
Keren and Thea for their time in helping me encode and for their
continuous help and support
My cousin for helping me finish my survey study and for coming to
Palawan with me
My parents for the support and sponsorship of the rest of my Palawan
trip, and for their unconditional love that has always been my motivation
Paolo for believing in me, for helping me relax and forget about stress,
and of course for also being my motivation and inspiration as I did this
study
My Father in Heaven for giving me the courage to face difficulties, for
continually guiding me in the right path, for always hearing my problems
and for allowing me to have such wonderful and supportive family and
friends
vi
EXECUTIVE SUMMARY
Palawan has always been one of Philippines pride in the tourism industry
as it has wonderful islands showcasing its natural wonders. However, is its natural
wonders enough for a sustainable tourism industry for the province?results of
this study says it is not. Its growth rate has been fluctuating in the last 5 years and
it sends a signal for a development in tourism management plans. Tourism
marketing decisions and strategies need knowledge and awareness of the
attributes that affect a tourists decision and choices. Its natural wonders alone is
not enough to attract and maintain an increasing growth rate of tourist arrivals, the
province has to offer more.
This study shows the relationship of specific attributes to the likelihood of
revisiting Palawan. It aims to know which attributes are the drivers of the tourist
arrivals. This is done through a survey conducted in Puerto Princesa International
Airport and the gathered data from 236 respondents was subjected to equations of
the Logit regression models. Results show that Palawan as a tourism destination
itself attracts the touristsit is the inherent attributes of Palawan that attracts
tourists. There are no tourist related attributes (Age, Gender, Education, etc) that
affect the likelihood of revisit. There are also more first-time visitors than repeat
visitors that show that Palawan as a tourism destination is lacking attributes that
attract the visitors who has already been in the province. The domestic tourism
industry is vital in this study since it is a good potential market as well as
marketers (through word-of-mouth phenomenon) of the province. They consist a
large portion of the tourist count throughout the years. Apart from this, another
vii
market worth taking into consideration when making tourism management plans
in the province is the tourists/visitors with high spending power. According to the
demographic profile of the respondents, the highest percentage of tourists coming
to Palawan are from an income class that consists of people earning more than
Php 50,000 per month.
In order to attract the said markets, does Palawan have attributes that make
the tourists come back to the province? The Importance-Performance Analysis
(IPA) is done in this study to look at possible recommendations and strategies to
be implemented. It shows that all attributes identified in this study are very
important for the tourists but not all of them are satisfying. It is worth to mention
that the variable for Culture deviate from the satisfied cluster variables. Therefore,
in making tourism management and strategy plans, culture must be taken into
consideration.
Nature itself as an important variable in this study is not enough for the
tourism industry in the Province as the province cannot attract repeat visitors
based from the results. Culture plays an important role in attracting the tourist
revisitiation according to the logit model and the IPA framework and therefore
must be one of the focus in implementing new strategies for the tourism industry
in the province.
viii
CHAPTER I: INTRODUCTION
Background of the Study
The tourism industry plays a major role in stimulating other various
industries making it an industry with strong comprehensiveness, high industry
relevance and large pull function1. It involves different aspects such as travel,
sightseeing, accommodation, food, shopping, and nightlife and entertainment
allowing it to be an industry that has a high potential in driving economic growth
and development in most developing countries. Marketing decisions and strategic
planning of tourism provisions and positioning need knowledge and awareness of
the attributes that affect destination choice and decisions. The study of tourism
demand that allows the determination of important attributes to a specific
destination are vital to the improvement of the ability to estimate and understand
the tourists behavior in choosing the destination.
Most tourism demand studies rely heavily on the neo-classical consumer
demand theory. However this theory does not account the importance of product
differentiation and excludes measures of the tourists attitudes towards service
and destination attributes. Moreover, the theory does not include sensitivity to
various strategies that can influence and/or change tourist behavior2. In this study,
the relationship of utility and consumption of the products intrinsic properties or
1
C. Liu, J. Chang, and A. Yang (Eds): ICICA 2011, Part I, CCIS 243, pp. 102-109, 2011
2
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179.
1
characteristics in determining tourism demand in the province of Palawan is
evaluated.
Tourism in Palawan
Palawan is known as the Philippines last frontier. It is the largest province
spanning 1.5 million hectares3. The province has managed to preserve its natural
habitat for years which has attracted both domestic and foreign tourists allowing
tourism as one of the regions backbone in regional development and growth.
Palawans enormous tourism potential has been known by the national
government of the Philippines. The blueprint of tourism development has been the
Philippine Tourism Master Plan (TMP) which started in 1989 and completed in
1991. For Palawan, a unique legislation is the Strategic Environmental Plan. It
provides a comprehensive framework for the sustainable development of Palawan
compatible with protecting and enhancing the natural resources and endangered
environment of the province.
As seen in the figures below, tourist arrivals are increasing but at a
fluctuating rate for the given years (2008-2013). It significantly showed the
decrease of growth rate from the year 2012 to 2013 (from a 29.1 to 4.5 growth
rate). Moreover, it can also be seen that there are more domestic tourists coming
to Palawan than foreign.
3
"Philippine Department of Tourism - Palawan." Philippine Department of Tourism - Palawan.
Accessed January 17, 2015. http://www.experiencephilippines.org/tourism/destinations-
tourism/palawan-department-of-tourism/.
2
870,478
832,595
645,147
523,872
362,565
283,037
2008 2009 2010 2011 2012 2013

Source: Palawan Tourism Promotions and Development Office
Figure 1: Trend of Tourist Arrivals in Palawan (2008-2013)
1000000
900000
800000
700000
600000
500000 Foreign Tourists
400000 Domes9c Tourists
300000
200000
100000
0
2008 2009 2010 2011 2012 2013
Figure 2: Domestic and Foreign Tourists (2008-2013)
3
44.5
29.1
21.9 23.1
4.5
2009 2010 2011 2012 2013

Source: Calculated figures from Palawan Tourism Promotions and Development Office
Figure 3: Growth rates of Tourist Arrivals (2009-2013)
Table 1: Top Destinations in Palawan
Rank 2013 2012 2011 2010 2009 2008

1st Puerto Puerto Puerto Puerto Puerto Puerto
Princesa Princesa Princesa Princesa Princesa Princesa
City City City City City City
2nd Coron Coron Coron Coron Coron Taytay
3rd El Nido El Nido El Nido El Nido El Nido El Nido
4th Brookes Brookes San San Taytay Coron
Point Point Vicente Vicente
5th San Taytay Taytay Taytay Brookes Busuanga
Vicente Point
6th Narra San Roxas Brookes San Quezon
Vicente Point Vicente
In the table above, it can be seen that in the recent 6 years, most travelers
seem to go to Puerto Princesa City followed by Coron and El Nido.
Puerto Princesas pride is its Subterranean River or as it is usually called:
the Underground river, a UNESCO World Heritage Site and one of the new 7
4
Wonders of Nature. It is actually located in a natural park and is a model of
biodiversity with more than hundreds of plant and animal species. A next
attraction for this destination is Honda Bays Island hopping. Boats take tourists
to nearby islands for lunch picnics, snorkeling and swimming. Puerto Princesa is
also known for its city. Touring around the city, tourists can check Bakers Hill,
Crocodile Farm, Butterfly Garden, Plaza Cuartel, Immaculate Cconception
Cathedral, Mitras Ranch, and many more.
Coron, on the other hand, is a gateway community for tourists planning to
island hop. Coron is actually a city itself, some tourists dub it as an expensive and
tinier version of Puerto Princesa. It is expensive because there are payments made
for each beach a tourist visits. Moreover, it also has direct flights to and from
Manila just like Puerto Princesa. El Nido is also famous for its island hopping and
less expensive than Coron. It is a quiet beach town populated by mostly tourists.
Surrounding the city are natural wondersmountains and the sea.
Much of the research done for the province involves ecotourism. This
study however will look into another perspective of understanding tourism in the
province. The study will look into the behavior of the tourists that can allow an
additional input in the plans of the provinces stakeholders.
5
Statement of the Problem
The province of Palawan considers tourism as one of its regional growth
drivers. Attracting tourists from different source markets enables the province to
achieve such growth. However as mentioned earlier, the province has an
increasing but fluctuating rate in terms of tourist arrivals. Growth rate
significantly decreased in 2013. To achieve a sustainable tourism growth in the
province, Palawan must attract more touristsmeaning achieving an increasing
growth rate through the years. In attempting to provide a solution to this problem
in growth rates, this study aims to answer: How do tourist characteristics and
tourism product characteristics affect the choice of destination? In particular,
Why do tourists choose Palawan as their main destination for travel and do the
tourism product characteristics increase the likelihood of tourists revisit in
Palawan?
6
Objectives of the Study
In order to address the problems presented, this study aims:
To identify the type of tourists that are most likely to revisit Palawan as
their chosen destination given their feelings/attributes toward certain
characteristics
To predict the conditional probability of tourists revisiting Palawan given
their feelings towards a number of product characteristics, and personal
characteristics.
Recommend policies and strategies which aim to enhance the
competitiveness of Palawan as a prime tourism destination
Significance of the Study
This study will primarily benefit the following stakeholders in Palawan
province: government, the academe the private sector and the community.
For the government, this study will give light on the formulation of
policies that can improve the sustainability of the tourism industry in the province
of Palawan.
For the academe, this study will add to the literature on linking choice
modeling and impact study on macroeconomy via an inclusive growth through a
specified list of indicators such as employment and gross value-added.
7
Lastly, for the private sector and the community, this study will encourage
additional investments through tourism business establishments thus an increase
in employment and productive activities once the demand has been established. In
addition, already established tourism business can adapt new management plans
based on this study with the provision of inputs for the investors the kind of
establishment and activities that needed to be developed.
Scope and Limitations
This study only focuses on the characteristics of both tourists and Palawan
as the tourism product. It only includes the analysis of specific attributes which
are considered in choice destinations.
The source of the raw data came only from one of the major gateways of
Palawan. The location where the survey was done was only in Puerto Princesa
International airportpre departure area and therefore does not include the
northern part of Palawan.
There are only a set if selected attributes based on the literature evaluated
in this study, attributes specific to Palawan as a destination (except Nature) was
not taken into consideration.
8
Definition of Terms
1. Tourists: A visitor (domestic, inbound or outbound) is classified as a
tourist (or overnight visitor), if his or her trip includes an overnight stay4
2. Tourism Demand: amount of a set of tourist products that the consumers
are willing to acquire during a specific period of time and under certain
conditions which are controlled by the explanatory factors used in the
demand equation5.
3. Tourist Destination: the main destination of a tourism trip; place visited
that is central to the decision to take the trip6
4. Tourism Product: comprises of everything that tourists buy, see and
experience during their journey to and from the destination. It is composed
of four major elements (access to the destinationtransport, amenities at
the destination, attraction at the destination, and the people)
5. Characteristics: the products intrinsic properties7
6. Age: this refers to age in years
7. Civil Status: refers to whether an individual is single, married, separated
or widowed
4
Defined by UNWTO "World Tourism Organization UNWTO." Understanding Tourism: Basic
Glossary. Accessed February 4, 2015. http://media.unwto.org/en/content/understanding-tourism-
basic-glossary.
5
Defined by Song and Witt, 2000 in Demand for Tourism in Portugal: A Panel Data Approach
6
Defined by UNWTO "World Tourism Organization UNWTO." Understanding Tourism: Basic
Glossary. Accessed February 4, 2015. http://media.unwto.org/en/content/understanding-tourism-
basic-glossary.
7
Defined by Lancaster 2001 in A model of tourism destination choice: a theoretical and
empirical analysis
9
8. Educational level: this refers to the highest educational attainment of an
individual such as high school, vocational or technical course, university
or college, and post graduate
10
CHAPTER II: REVIEW OF RELATED LITERATURE
Neo-classical Traditional Demand Theory
In most of the empirical studies and literature, the underlying theory that
explains tourist flows is based on the traditional demand function which is always
characterized by price (stay and transport). Based on this theory, the individual
consumer is faced with a budget constraint that defines his or her choice set or
consumption possibilities which are comprised of available and affordable
consumption bundles, each of which consists of combinations of commodities
and/or services that are assumed to be nonnegative continuous variables. Another
assumption is that the consumer has preferences over alternative consumption
bundles allowing the ability to compare all positive alternatives8. The consumer
chooses consumption bundle, associated with the highest indifference curve that
is tangent to the budget line, that maximizes his or her utility.
Tourism demand is basically measured by using one of following based on
theory: tourist arrivals, length of stay, and tourism expenditure which are often
regressed on independent variables such as price of tourist products,
transportation costs and exchange rate9. The most common econometric model
applied using this framework utilizes multiple regression. However,
Papatheodorou introduces three drawbacks when using the traditional demand: (1)
8
Moshe Ben-Akiva & Steven R. Lerman (1985). Discrete Choice Analysis: Theory and
Application to Travel Demand, The MIT Press, Cambridge, Massachusetts.
9
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179
11
it assumes that a tourist travels to every destination he considered simultaneously;
(2) it neglects the possibility of the emergence of new destinations and the
withering of the old ones and does not take into account some of the elements of
the tourism producthorizontal and vertical differentiation; (3) the theory
assumes a competitive environment, which is unlikely to happen in reality since
suppliers in the tourism industry are able to exercise a certain oligopolistic power
with varying market structure in sectors of the industry10. These drawbacks were
also recognized by Quandt(1970) in Ruggs work wherein he also provided and
further explained difficulties in using the traditional demand theory. Since a
tourist may potentially travel to one of the many travel destinations by different
modes, the list of travel-oriented commodities to be substituted into the traditional
utility function is very large. Another is that its assumption explaining that utility
maximizing point as an interior point of the budget line is unrealistic because it
entails that individuals consume some of every commodity11. These limitations
explain why the theory does not account the importance of product differentiation
and excludes measures of the tourists attitudes towards service and destination
attributes. It also does not include sensitivity to various strategies that can
influence and/or change tourist behavior.
10
11
Donald Rugg (1973). The Choice of Journey Destination: A Theoretical and Empirical
Analysis. The Revire of Economics and Statistics, vol. 55, Harvard University, Cambridge,
Massachusetts, USA.
12
Lancaster on Consumer Analysis-Product Characteristics Approach
In order to address the problem introduced by the traditional demand
theory in the field of tourism, another framework used by studies in understanding
tourism demand and tourist behavior is Kevin Lancasters characteristics
approach. Based on this theory, the demand for goods is only a derived demand
since a consumer receives his utility from the intrinsic properties of the product
and not from the product itself. Consumers select the combination of goods that
will offer the optimal basket of characteristics which are embodied in a good. The
theory assumes that major product characteristics are additive or combinable. This
theory then is useful in understanding consumer choice and behavior since it does
not only account for prices of goods and services but also consider the
specification of products. Moreover, it is useful in determining the implications of
changes in a firms product specifications.
Rugg (1973) was the first to apply the characteristics approach to
tourism12. He modeled a consumers choice of journey destination. His
framework indicated that the travelers choice of journey destination given his
preference function for characteristics depends upon the utility producing
destinational chatacteristics defined by consumption technology and upon
variables specified within the budget and time constraints. The model was tested
empirically by estimating thirteen demand functions for international air
passenger travel suggested by the constraint variables and destinational
12
13
characteristics defined within the structure of the model. Independent variable
include the product of the population, average of per capita, relative prices, price
of transportation, and length of stay13. The model developed by Rugg introduced
the inclusion of a time constraint, transportation costs between alternate
destinations by modifying the budget constraint, and the modification of the time
constraint including the time costs involved when travelling between alternate
destinations14. Results show that product of population, average per capita
disposable income, round trip price of transportation, weighted average of paid
vacation lengths, weighted average of the 24 average temp, weighted average of
average monthly rainfall levels & weighted average of average hours of daily
sunshine were significant.
As an extension of Ruggs work, the model developed by Morley (1992)
incorporated the decision to travel (or not), the time and budget allocations, and
the choice of destinations which was based on an indirect utility function similar
to one used in transport economics to model modal choice15. He constructed a
comprehensive utility model based on the idea that various utilities will be yielded
in different tours because of the attributes of the tours themselves and their
contribution to an individuals utility.
Another study by Papatheodorou (2000) utilized Lancasters
characteristics approach providing a discrete choice version of Ruggs model. He
13
Donald Rugg (1973). The Choice of Journey Destination: A Theoretical and Empirical
Analysis. The Revire of Economics and Statistics, vol. 55, Harvard University, Cambridge,
Massachusetts, USA.
14
H.R., Seddighi and A.L. Theocharous. "A Model of Tourism Destination Choice: A Theoretical
and Empirical Analysis." Tourism Management 23 (2002): 475-87.
15
Ibid
14
utilized hedonic price analysis where the price of a product is regressed in a set of
characteristics. This regresses the cost of living in a particular destination (or the
price of the respective holiday package in the case of inclusive tours) on a number
of sunlust, wanderlust, and infrastructure characteristics. His analysis reveals the
importance of corporate power and industrial organization16. He emphasized that
consumers destination choice depends on their preferences for specific
destinational characteristics allowing consumers to derive their satisfaction from
these characteristics. This led him to conclude that characteristics approach can
offer an explicitly systematic framework where actual destination choice is based
on a set of solid micro foundations.
Seddighi and Theocharous (2001) proposed a methodological framework
within which the impact of characteristics of a tourism product on foreign travel
can be captured and analyzed with which they did field study in Cyprus. Their
theoretical framework of the study was based on Lancasters characteristics
approach combined with Koppelmans consumer-oriented transportation planning
approach. They utilized a conditional Logit method in order to measure
perceptions or feelings to be able to come up with a preference ordering. The
starting point for the model are the tourists with each being identified by a number
of socio-economic or cultural characteristics. This is followed by deciding to take
domestic or foreign vacation. The main variable determining the choice between
the alternatives is the purchasing power of the tourists. The characteristics of
destination serve as the decision-making criteria for the formulation of tourist
16
15
attitudes and perception towards alternative destinations. These characteristics
include quality of service, advertising and political instability. The process of
using system characteristics as decision-making criteria for the formulation is
referred to as abstraction. Once feelings and perceptions are formulated, they are
subjected to an aggregation process determining the preference ordering17. The
method has considerable advantages including flexibility, control of interview
situation and higher response rate when compared to other survey techniques. A
multivariate Logit analysis was utilized. This is to identify the type of tourists that
are most likely to revisit the destination given their feelings and attributes towards
certain characteristics which are the independent variables. Another study by Mao
and Zhang which also used the Lancasterian framework and the proposed
methodology of Seddighi and Theocharous showed that age and tourism
promotion as an important factor in choosing a destination18. This study will
utilize Seddighi and Theocharouss proposed methodological framework with
additional variables based on other literatures (travel attributes of a destination)
since the framework does not incorporate a substantial number of variables that
may be relevant in tourism demand.
However, Lancasters theory also has its own drawbacks. According to
Reuven Hendler, 1975 in Lancasters New Approach to Consumer Demand and
Its Limitations, the major contributions made with the 1966 model are dependent
on the ability to distinguish between objective and subjective choice in demand

17
18
MAO Duan-qian, ZHANG Jie, BAO Hao-sheng. A tourist destination choice model based on
Lancasterian characteristics theory and destination image theory:theoretical analysis and case
study[J]. GEOGRAPHICAL RESEARCH,2005, 24(6): 992-999.
16
theory. The theory is said to be relevant only under certain assumptions, where
nothing can be said about the efficiency of the consumer unless the goods are
known to be mixable or the consumers utility function is given19. Tirole (1988)
added that the characteristics approach makes sense in a number of cases. By
giving an example when buying light bulbs, he pointed out that consumers
certainly care mainly about the total number of hours of lighting provided by the
bundle of bulbs. In his words, the key to the approach is to be able to sum up the
characteristics. In some cases, this approach is less handin particular, where
there are indivisibilities of consumption.20 The problem of divisibility
assumption was also stated in Trajtenberg (1979) and Rosen (1974).
Sloman and Sutcliffe (2001) explain that identifying and measuring
characteristics are difficult to quantify. The analysis becomes very complicated
when more characteristics are included since products have several
characteristics. In Seddighi and Theocharous, Lancaster noted that the
characteristics are taken to be objective properties of goods and that the
operational use of the model requires identification of the relevant characteristics
and data of consumption technology. The data problem is of the kind that arises
commonly with new ways of looking at things said Lancaster21.
19
Reuven Hendler. (1975). Lancasters New Approach to Consumer Demand and its
Limitations.
20
Jean Tirole. (1988). The Theory of Industrial Organization, The Massachusetts Institute of
Technology Press, Cambridge, Massachusetts.
21
17
By applying Lancasters theory in tourism, the objective property can be a
potential characteristic. The fundamental problem is the identification of
characteristics.
Logistic Regression
Seddighi and Theocharous utilized a multivariate logit analysis since it
enables the quantification of perceptions or feelings of tourists in the form of a set
of conditional probabilitiesconditional logit. This provide a ranking order for
the selection of the tourism destination. Logit analysis is used for unordered
responses given that the dependent variable is polytonous. According to Seddighi
et al and Gujarati in Seddighi and Theocharous, the wide applicability of Logit
model in the social sciences stems from: (1) the fact that the logit model is based
on the logistical curve for all the values of the independent variables, contraining
the value of the dependent variable to fall between zero and one; (2) the
probability function is a non-linear function following a logistical curve22.
Apart from Seddighi and Theocharous, there are also numerous studies
that usedlogitanalysis in analyzing tourist behavior. One of which is the study on
Riminis off-season tourists and cultural offer of a mass-tourism destination by
Figini and Vici. Their model incorporates attributes of a number of possible
changes to actual tourism features. Conditional logit analysis highlighted the
potential synergies and trade-offs between cultural and business tourism23.
22
Ibid
23
Paolo Figini and Laura Vici. (2007). Off-season tourists and cultural offer of a mass-tourism
destination: The case of Rimini. The Rimini Centre for Economic Analysis. Rimini, Italy.
18
Another study done by Rittichainuwat, Qu and Mongknonvanit used logit analysis
to find out the impact of travel satisfaction of travelers on the likelihood of
revisiting Thailand as a tourism destination24. The results of the study showed that
quality, service, and value of food and lodging were significant in the model
showing a relationship with the travelers likelihood of revisiting the country.
Travel Attributes of a Destination
Um (1987) describes travel attributes as the set of characteristics that
describes a place as destination when these are aggregated together25 which
comprise all factors that are associated to a destination, such as its physical and
cultural features, the mental and actual distance needed to reach the destination
etc. Holloway (1986) explains a destinations success depends on the
interrelationship of three factors: its amenities or facilities, its attractions, and its
accessibility. In a study done by Goodrich (1977), international travelers consider
four important destination attributes in their travel planning: cost, entertainment,
purchase opportunities, and climate for comfort26. Other significant attributes
identified by Singh (1986) comprise of reasonable prices, good accommodation,
visitor safety and relaxing vacations. In a more recent study by Wong (2011), in
24
Bongkosh Ngamson Rittichainuwat, Haliin Qu and Jerrold K, Leong. (2002). A Study of the
Impact of Travel Satisfaction on the Likelihood of Travelers to Revisit Thailand Journal of
Travel & Tourism Marketing, vol. 12 no 2/3. Binghamton, The Haworth Press, Inc., New York,
USA, pp. 19-43.
25
Vincent C.S. Heung &Hailin Qu. (2000). Hong Jong as a Travel Destinaion: An Analysis of
Japanese Tourists Satisfaction Levels and the Likelihood of Them Recommending Hong Kong to
Others. Journal of Travel and Tourism Marketing.Vol. 9 no. , The Haworth Press, Inc.,
Binghamton, NY, USA, pp. 57-80
26
Ibid
19
analyzing how destination attributes serve as incentives to promote planned-event
tourism in the emerging destination of Macau, the world's gaming
capitalsignificant attributes include food offerings and geographic proximity.
Respondents were least attracted by nightlife entertainment and casino
gambling27. Gallarza, Saura and Garcia (2002) presented an exhaustive literature
review of the different travel attributes used in tourism studies which adopted
Echtner and Ritchies use of the functional-psychological axis. The most
mentioned attribute in most of the studies (Crompton, 1979; Goodrich, 1982;
Sternquist, 1985; Haahti, 1986; Gartner and Hunt, 1987; Calantone et al, 1989;
Gartner, 1989; Embachar and Buttle, 1989 etc) presented was residents
receptiveness then followed by landscape and/or surroundings, and cultural
attractions. Other attributes included in the study were: various activities; nature;
nightlife and entertainment; shopping facilities; information available; sports
facilities; transportation; accommodation; gastronomy; price, value and cost;
climate; relaxation; accessibility; safety; social interaction; originality; and service
quality28. Ragavan, Subramonian and Sharif (2014) in evaluating the relationship
between destination travel attributes and tourist satisfaction, enumerated studies
(Baker & Crompton, 2000; Kozak, 2002; Yoon & Uysal, 2005; Alegre & Garau,
2010) in tourism literature that indicated that tourists overall satisfaction is
determined by how the tourists evaluate the attributes related to the destination.
Results show that among the attributes which include food, attractions, climate
27
Anthony Wong. (2011). Using Destination Attributes to Promote Event Travel: The Case of
Macau
28
Martina G. Gallarza, Irene Gil Saura and Haydee Calderon Garcia. (2002). Destination Image:
Towards a Conceptual Framework. Annals of Tourism Research, vol. 29, no 1. Elsevier Science
Ltd., Great Britain, pp. 56-78.
20
and image, commodities, convenience, culture, people and price only climate and
culture had significant positive influence on the overall tourist satisfaction29.
29
Neeithiahnanthan Ari Ragavan, HemaSubramonian&SaeedPahlevan Sharif. (2014). Tourists
perceptions of destination travel attributes: An application to International tourists to Kuala
Lumpur. 5th Asia Euro Conference 2014.Procedia- Social and Behavioral Sciences 144 403-411.
21
CHAPTER III: THEORETICAL FRAMEWORK AND METHODOLOGY
Theoretical Framework
Lancaster on Consumer Analysis-Product Characteristics Approach
Lancaster argued that utility is related to the consumption of the products
intrinsic properties which he termed as characteristics30. It is assumed that the
characteristics possessed by goods are, in principle, objective and the same for all
consumers. While the utility derived by the consumer is subjective and that it
depends on preference function. Given the units of measurement, any good
contains the same amount of any characteristics for all consumers. However, each
consumer may derive different level of utility31.
According to Seddighi & Theocharous, Lancasters work is based on two
fundamental propositions:
a. All goods possess objective characteristics relevant to the choices that
people make among various goods. The relationship between a given
quantity of a good (or a collection of goods) and the characteristics
which it possesses is essentially a technical relationship, depending on
the objective properties of the goods and sometimes in a context of
technological know-how, as to what the goods can do and how.
30
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179.
31
Reuven Hendler. Lancasters New Approach to Consumer Demand and Its Limitation. The
American Economic Review 65 1 (1975).
22
b. Individuals differ in their reactions to different characteristics, rather
than in their assessment of the characteristics content of various goods
collections. It is the characteristics which are of interest to the
consumers. They possess preference for collections of characteristics,
and preferences for goods are indirect and derived in the sense that
goods are required only in order to produce the characteristics.
Given a budget constraint, consumers choose the combinations of goods
that will give them their most preferred combination of characteristics which
means that consumers try to maximize the characteristics that they can purchase
with their budget. The characteristics that they can purchase with their budget.
The characteristics contained in a good are objectively determined by the
consumption technology identifying the proportion of characteristics that a good
produces32.
The basic model is as follows:
maximize U(z)
subject to px k (budget constraint)
z = Bx
z, x 0
where U = consumers utility function
z = vector of quantities of characteristics
32
Kevin Lancaster (1966). A New Approach to Consumer Theory, The Journal of Political
Economy, vol. 74, The University of Chicago Press, Chicago, Illinois, pp. 132-157.
23
k = consumers budgeted income
x = vector of the quantities of the various commodities
p = vector of corresponding prices
B = consumption technology coefficients
The function Bx explains the production characteristics by the
commodities which suggests that such characteristics are produced by the
commodities in fixed proportions.
Koppelman et al on Consumer-Oriented Transportation Planning Approach
According to Koppelman, the critical factor present in consumers
decision making, but absent in traditional demand models, is consumers
perceptions which mediate the relationship between system characteristics and
travel choice behavior. This examines the relationship between system
characteristics and consumers perceptions, feelings, preference, and choice
behavior.
Theoretical Application in Tourism: Destination Choice
Lancaster noted that the characteristics are taken to be objective properties
of goods that the operational use of the said model requires the identification of
the relevant characteristics and data consumption technology. Given the travel
attributes discussed in chapter II of this paper, the relationship of the holiday-
decision-making process will be analyzed. Moreover, the analysis requires
personal reactions to characteristicsselecting which characteristics to measure.
By applying this in the case of tourism, it can be said that every objective property
24
can be a potential characteristic. Determining the relevant characteristics is the
fundamental problem. Once these relevant characteristics are determined, then
can the study proceed to take appropriate measurements. The methodological
framework followed in this study is in line with what Lancaster advocated, that is,
to give the problem of measurement of the good-characteristics relationship to
people directly involved in this study: the tourists.
Conceptual Framework
Figure explains the flow of theories presented with destination choice as a
multi-step process. The starting point for the model are the tourists then decides
whether to take a holiday. When tourist decides to take a holiday, he or she is then
faced with two alternatives: domestic or foreign vacation. The system
characteristics defined serve as the decision-making criteria for the formulation of
prospective tourists attitudes and perception towards alternative destinations.
25
Source: Modified version of H.R Seddighi, A.L. Theocharous
Figure 4: Theoretical Flow
26
Source: Author
Figure 5: Survey Framework
27
Empirical Framework and Methodology
Logit Regression Model
Logistic regression is generally used to analyze relationships between a
dichotomous dependent variable and metric or dichotomous independent
variables. The logit regression model is appropriate in models of choice behavior
where the explanatory variables include attributes of the choice alternatives as
well as the characteristics of the individuals making choices.
In answering the first two objectives, the binary logit analysis is used
allowing the quantification of perceptions/feelings of tourists in the form of a set
of conditional probabilitiesthat logistic regression computes the probability that
a case with a particular set of values for independent variable is a modeled
category. These conditional probabilities act to give a measure of
perceptions/feelings of tourists given the characteristics of tourists and the tourism
product. This also predicts the conditional probability of a tourist revisiting
Palawan, given his/her feelings towards a number of product characteristics &
personal characteristicsestimating the probability that a particular event will
occur. After having the initial results from the survey, the factors shall be grouped
together using the factor analysis in order to determine the variables which has a
high correlation to the endogenous variable (visitor overall evaluation).
28
Source: Modified version of H.R Seddighi, A.L. Theocharous
Figure 6: Empirical Framework
Importance-Performance Analysis Framework
For the third objective of this study, inputs from the importance and
satisfaction ratings from the respondents are gathered from the Importance-
Performance Analysis approach. The results of importance and satisfaction is
averaged and then graphed in the scatter plot in order to identify which quadrant
the attributed or factor is according to the visitors. For each quadrant, there is a
corresponding strategy in relation to the variable.
29
Source: Liu, et al. 2000
Figure 7: Importance-Performance Analysis framework
Survey Design
The raw data that is used in this study are from primary sources through a
survey. The target respondents are tourists leaving the province of Palawan. They
are assumed to have experienced Palawan as a tourism product. The survey
questions (see appendix a) are guide to assess their perception of the tourism
product, in particular, Palawan as a tourism destination. The question number is
highlighted in figure 5 which is grouped according to its travel attributes. To be
able to improve the questionnaire, a pilot test has been done in Manila with 50
respondents.
30
Sampling Method
Convenience sampling is utilized in this study where the population
elements are selected on the basis of their easy availability as well as accessibility.
This method sampling allows a faster analysis focusing on the important aspects
of the study instead of calculating the best way to obtain population sample. One
of the major drawbacks is the representativeness of the sample. Nonetheless, data
can still be analyzed and will provide fairly significant insights in the study.
In order to determine the sample size, the following formula will be used:
! (1 )
=
MOE !
where Z represents the confidence level, p(1-p) refers to the data variability of a
proportion, and MOE pertains to the margin of error in the result of the estimation
process. In the study, a 95% confidence level will be used, Z=1.96. This is a
considered as the acceptable confidence level. The probability p is 0.5 since it is
the value of p that obtains the maximum value of the data variability (p(1-
p)=0.25). For the margin of error, a 7% will be utilized. With the given values,
the computed sample size n is 196. An additional 20% of the computed sample
size is added yielding 236 sample size.
Data Collection
A self-administered survey was conducted for 6 days during the period of
2015 April3 to April 8 at the boarding area of Puerto Princesa International
Airport.
31
CHAPTER IV: RESULTS AND DISCUSSION
This chapter presents the results of the study from the survey conducted. The
raw data was inputted and processed using Microsoft Excel and Statistical
Package of Social Sciences (SPSS) software. On the first part of this chapter, a
descriptive analysis of the gathered data is shown. This is followed by the logit
regression and factor analysis done to answer the first two objectives of the study.
Finally to help answer the last objective, an Importance-Performance Analysis
(IPA) is done wherein the averages of the attributes were graphed in a scatter plot.
Respondents Demographic Profile and Travelling Characteristics
Demographic Profile
There are a total of 236 accomplished surveys for this study. Out of all the
respondents, 74% were domestic tourists and 26% were foreign tourists (see
figure 8).
Foreign
Tourists
26%
Domestic
Tourists
74%
Figure 8: Tourists
32
Table 2: Country of Residence
Country Frequency
Australia 4
Canada 10
Chile 1
Germany 4
Holland 1
Hongkong 2
India 2
Israel 1
Japan 1
Korea 2
UK 5
Netherlands 1
Norway 3
Singapore 1
Sweden 3
Taiwan 1
Turkey 1
Thailand 1
USA 15
USA/Thailand 2
Table 2 exhibits the country of residence of the foreign tourists surveyed
in this study. Most of the foreign respondents were from USA and Canada.
Figure 9 shows the division of those who considered other domestic
tourism destinations besides Palawan and those who did not. 76% considered
other domestic destination while 24% did not consider other domestic destination.
30% of those who said they did not consider any other domestic tourism were
foreign tourists. For those who considered other domestic tourism destinations,
23% were foreign tourists.
33
Did not
consider
24%
Considered
other
Domes9c
Tourism
Des9na9on
76%
Figure 9: Considered other Domestic Tourism Destination vs. Those who did not
Table 3: Other Domestic Tourism Destinations considered by the Respondents
Domestic Tourism Destinations Frequency

Bacolod 1
Ilocos 7
Baguio 4
Baler 1
Banaue 1
Batanes 6
Bicol 2
Bohol 12
Boracay 38
Camarines Sur 2
Cebu 23
Davao 10
Iloilo 4
Manila 8
Batangas 2
Negros Occidental 1
Pangasinana 1
Pampanga 1
Sagada 2
Surigao 1
Siquijor 1
Tagaytay 2
34
Table 3 shows the destinations considered by the respondents in making
their trip to Palawan. It seems that most were deciding more on whether they
would travel to Boracay and Cebu aside from Palawan. Aside from this, out of the
38 tourists who also considered Boracay as their tourism destination, 14 or 37%
were foreign tourists. While for Cebu, out of the 23 tourists, 7 or 30% were
foreign tourists.
Figure 10 shows the profile of the respondents with regards to gender.
49% were male and 51% were female. In terms of age, 40% were ages 15 to 24,
45% were ages 25 to 44, 13% were ages 45 to 64, and 2% were over 65 (see
figure 11). With their civil status, majority are single with 59% of the total
respondents. This is followed by those who are married (37%). In terms of their
income and occupation, 30% of the total respondents are student. The other 70%
of the respondents vary from professionals, clerical to housewives and retirees. Of
these, 9% (see figure 14) have a monthly income of less than Php 10,000 with
occupations such as instructors, cashier and sales staff. 18% have a monthly
income of Php 10,000-20,000. Majority of the second category (Php 10,000-
20,000) has an occupation of administrative and sales job. 11% has a monthly
income of Php 21,000-30,000) who were mostly engaged in entrepreneurship.
Another 11% with an income of Php 31,000-40,000 were also engaged in
entrepreneurship. 14% has an income of Php 41,000-50,000 with jobs such as
accountants, sales officer, programmer and entrepreneurs. Majority of the
respondents are professionals and has an income greater than Php 50,000 (35%).
35
Male
49%
Female
51%
Figure 10: Gender
Over 64
2%
45-64
13%
15-24
40%
25-44
45%
Figure 11: Age
36
Widowed Divorced
0% 2%
Married
37%
Single
59%
Separated
2%
Figure 12: Civil Status
Doctorate Professional Degree Less than High High School

Degree (MD, JD) School Graduate
0% Masters Degree 2% 3% 11%
17%
Some College
8%
2-Year College
4-Year College Degree (Voca9onal)
Degree 7%
52%
Less than High School High School Graduate
Some College 2-Year College Degree (Voca9onal)
4-Year College Degree Masters Degree
Doctorate Degree Professional Degree (MD, JD)
Figure 13: Highest Educational Attainment
37
70
60
50
40
30
20
10
0
Less than P10,000 P21,000 P31,000 P41,000 Greater than
P10,000 P20,000 P30,000 P40,000 P50,000 P50,000
Note: N=166, students not included
Figure 14: Monthly Income
Travelling Profile
Figure 15 shows the respondents purpose of travel. It seems that most of
them were for vacation. Figure 16 on the other hand exhibits where the
respondents learned Palawan as a tourism destination. Most of them learned about
Palawan from TV/ Radio commercials. This is followed by the Internet and
Travel Brochures/ Magazines.
38
90
80
70
60
50
40
30
20
10
0
Business/ Educa9on Vaca9on Mee9ngs Visit Family/ Others
Work Friends
Figure 15: Purpose of Travel
40
35
30
25
20
15
10
5
0
Figure 16: Source of Information
Figure 17 shows the percentage of the respondents who visited Palawan
for the first time and those who have already been in the destination. Most of the
respondents were first-time visitors with over 60%. In addition, most of the
39
foreign tourists were first-time visitors. In terms of the first-time visitors gender,
most of them were male.
Repeat visitors
36%
First-9me
visitors
64%
Figure 17: First-time vs Repeat Visitors
Table 4: Classification Table
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step OVDERALL 0 0 24 .0
0 EVALUATION 1 0 212 100.0
Overall Percentage 89.8
a. Constant is included in the model.
b. The cut value is .500
According to SPSS (see table 4) out of all the respondents, almost 90%
said they would revisit Palawan.
40
Table 5: Selected profile of respondents who would revisit vs who would not
revisit Palawan
Characteristics Revisit Palawan (89.8%) Would not revisit Palawan

(10.2%)
First-time 62% were 38% were 75% were 25% were
visitors vs. first-time repeat first-time repeat visitors
Repeat visitors visitors visitors visitors
Gender 41% Male 59% Female 50% Male 50% Female
Foreign vs. 25% Foreign 75% 42% Foreign 58%
Domestic tourists Domestic tourists Domestic
Tourists tourists tourists
Considered 68% 32% did not 58% 42% did not
other domestic considered consider considered consider other
destinations vs other other other domestic
did not domestic domestic domestic destinations
consider other destinations destinations destinations
domestic
destination
Main Purpose 83% were for Vacation, 9% 96% were for Vacation
of Visit for Business and 3% for
visiting family/ friends
Highest Less than High School: High school graduates:
Educational 2.8% 25%
Attainment High school graduates: 2 yr course: 4 %
9.4% Some college: 8%
2 yr course: 7.5 % 4 year degree: 33%
Some college: 8% Masters Degree: 30%
4 year degree: 54.2%
Masters Degree: 14.6%
Doctorate Degree,
Professional Degree
(MD, JD): 3.3%
Income Less than Php 10,000: Less than Php 10,000:

10% 6%
10,000-20,000: 20% 10,000-20,000: 6%
20-30k: 11% 20-30k: 18%
30-40k: 12% 30-40k: 6%
40k-50k: 13% 40k-50k: 24%
Greater than 50k: 34% Greater than 50k: 41%
41
Table 5 shows the profile of those who would revisit and not revisit Palawan
given their importance and satisfaction ratings. For those who would revisit
Palawan, 25% were foreign tourists and 55% of the foreign tourists considered
other international destinations. Among the international destinations, Indonesia
was considered the most. 68% of the total respondents who said they would
revisit Palawan considered other domestic destinations. 21% of these respondents
considered Boracay while 15% considered Cebu. 83% of them said they visited
Palawan for vacation while 3% were for visiting Friends/Family and 9% were for
business. 62% were first-time visitors while 38% were repeat visitors. 41% were
male and 59% were female. In terms of their marital status, 2.4% were divorced,
37.8% were married, 58% were single. 29% of the respondents who would revisit
were student. The other 71% have jobs with the incomes that vary from less than
Php 10,000: 10%; Php 10,000-20,000: 20%, Php 20,000-30,000: 11%, Php
30,000-40,000: 12%, Php 40,000-50,000: 13% and greater than Php 50,000: 34%.
For those who chose they would not revisit Palawan, 75% of the respondents
who would not revisit Palawan were first-time visitors while 25% were repeat
visitors. 42% of the respondents were foreign tourists and 40% of them
considered other international destinations. Of the total respondents who would
not revisit Palawan, 58% of considered other domestic destinations and these
destinations vary from Boracay to Iloilo etc. 96% said their purpose of visit was
for vacation. In terms of gender, 50% were male and 50% were also female. With
regards to their highest educational attainment, 25% were HS graduates, 4 % had
a 2 year college degree, 8% were from some college, 33% had their 4 year college
42
degree and 30% had Masters degree. None were from less than high school and
the professional or doctorate degree category. With their income profile, great
percentage were from the class that has an income of greater than Php50,000 with
41%.
Looking into the ratings for satisfaction and importance, 25% of the
respondents who would not revisit checked the box for Not Applicable in Night
life and Entertainment while 8% of these respondents checked the box for Not
Applicable in Culture. They were mostly satisfied with the residents
receptiveness with an average rating of 4.38 followed by Climate with a rating of
4.333 then lastly by Nature with an average of 4.25. Their lowest average rating is
Nightlife and Entertainment with an average rating of 2.63.
For the importance ratingaccording to the average rating of the respondents
who would not revisit Palawan, they identified transportation and residents
receptiveness as both the most important attributes, with an average rating of 4.75
followed by Gastronomy with an average rating of 4.68. Nature is the third most
important attribute for the respondents who said they would not revisit Palawan
with an average rating of 4.63. Their least important attribute is Nightlife and
Entertainment.
43
Implications
In the first part of the profiling of the respondents, there seems to be more
Domestic tourists than foreign tourists surveyed in this study. It shows that there
are more domestic tourists coming to the province than foreign which can also be
seen in the historical data in the background of the study. This also suggests that it
is the domestic tourists that drive the tourism industry in the Province as it is more
accessible for these tourists to come back to the province. Domestic tourists are
also the main marketers of tourism through word-of-mouth phenomenon.
Therefore, there is a need to focus on the domestic-specific needs and
characteristics of the tourists that would make domestic tourists increase the
likelihood of revisit in Palawan.
In terms of the likelihood of return visit, there are more first-time visitors
than repeat visitor which is alarming since Palawan as a tourism destination need
to generate more repeat visitors. In the latter part of the profiling, a table is
presented wherein it shows the comparison of the profile of those who would
revisit Palawan and those who would not. It seems that there were more first-time
visitors who would not want to revisit Palawan. This shows that Palawan is
lacking attributes which can attract tourists to return to Palawan. Focusing more
on the attributes, the ratings of those who would not revisit seem to show that
some do not experience the attribute for Nightlife and Entertainment as well as
Culture. However it shows that Nightlife and Entertainment is the least important
attribute for them. Looking back at the demographic profile of the respondents,
there was also a great percentage for the age bracket of 15 to 24. This shows that
44
there is not much need for Palawan to focus on this attribute. Moreover, for the
main purpose of visit, a large percentage went to Palawan for vacation. Apart
from sightseeing, the tourism office should also look into other ways wherein
visitors could feel they are actually having a vacation. It implies an increasing
interest towards leisure traveling wherein vacationers spend their time on sports
and outdoor activities apart from a leisurely rest and relaxation they get from
nature. Also, the tourism office should also look into seasonality. What can
tourists do when its natural wonders could not accommodate touriststourism
office could look into highlighting its cultural heritage more or activities that
would also cater to the ages 15-44 who are for vacation.
For the next section of profiling wherein respondents identified whether
they considered other domestic destinations, Boracay seems to have the highest
number of respondents who considered the destination apart from Palawan. It is
also important therefore to look at what this destination can offer that Palawan
does not have as it is the destination that tourists prefer. As it can also be seen in
the latter part of the profile, most of those who would want to revisit considered
Boracay as another tourism destination. In order to generate more return visits to
Palawan, it has to offer more than the usual given that most of those who said
they would not revisit were actually first-time visitors. Comparing Palawan to
Boracay, Palawan is a huge island and underdeveloped while Boracay in the
middle sections of the beach is becoming overdeveloped wherein it can
accommodate different people from different income classes. Palawan described
as the Last Frontier seems to be becoming more and more popular but there is a
45
large portion of first-time visitors not wanting to revisit which sets a drawback for
the tourism industry of the province. Compared to Boracay, travelling in the
province of Palawan is basic but there are still quite a number of unpaved roads
and the power is also limited. Boracay is developed and offers a wide variety of
activities from water sports during the day to bar hoping in the night since the
night life and entertainment is known more in Boracay than in Palawan.
Most of the respondents have high income with the income of more than
Php 50,000 which confirms that a large number who visits Palawan earns a lot.
Given their high spending power, they are to be considered a good potential
market for the province. To be able to retain this market for the province, again,
the tourism destination must also offer more than nature. Going back to culture
attribute which is important for the respondents but not that satisfied with it (some
did not even feel it), the tourism office should promote their cultural heritage to
these markets attracting them to return to the province. One possibility is looking
into promoting festivals held in the province and making it a once in a year
experience for the tourists as other destinations offer. Another could be
sponsoring a major event or holding conventions.
Majority of the respondents learned about Palawan from the TV/radio
commercials. It is a common source of information for domestic tourists. It is
therefore vital to always update their commercials with their brand as the Worlds
number one Island.
46
Binary Logistic Regression
For the first and second objective of this study, a logistic regression
(Binary logistic regression) is utilized.
Binary Logistic Regression (Before Factor Analysis)
Table 6: Evaluation of Logistic Regression
Omnibus Tests of Model Coefficients

Chi-square df Sig.
Step Step 52.136 15 .000
1 Block 52.136 15 .000
Model 52.136 15 .000
Hosmer and Lemeshow Test

Step Chi-square df Sig.
1 4.220 8 .837
Model Summary
Step -2 Log Cox & Snell R Nagelkerke R
likelihood Square Square
a
1 103.053 .198 .411
a. Estimation terminated at iteration number 7 because
parameter estimates changed by less than .001.
The first regression done for this study is a simple binary logistic
regression. Seen in table 6 is the evaluation of the regression. The Omnibus tests
of Model Coefficients shows a significant result with significant values less than
0.05. Aside from this, a more reliable test is the Hosmer and Lemeshow goodness
of fit test. The table shows a significant value higher than 0.05 which means it is
47
significant. Lastly, another test that could determine the usefulness of the model is
seen in the Model Summary wherein the Cox & Snell R square values (.198) and
the Nagelkerke R square (.411) shows that between 19.8% and 41.1% of the
variability of the dependent variable is explained by the independent variable.
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step OVDERALL 0 9 15 37.5
1 EVALUATION 1 4 208 98.1
To characterize the model as useful, a comparison of the overall
percentage accuracy rate produced by the software at the last stepchance
accuracy. The overall accuracy rate for this model is 91.9% as showed in table 7.
Table 8: Binary Logistic Regression (Before Factor Analysis)
B S.E. Sig. Exp(B) 95% C.I.forEXP(B)

Lower Upper
S FirstVisit -.150 .651 .818 .861 .241 3.082

t Age -.288 .590 .625 .750 .236 2.383
e Gender(1) .048 .544 .929 1.049 .361 3.048
p
Civil .605 .613 .324 1.830 .550 6.088
EDUC .219 .219 .317 1.244 .811 1.910

1
a income -.161 .164 .327 .851 .617 1.175
Nature 1.576 .481 .001 4.836 1.886 12.405
48
Culture .626 .238 .009 1.870 1.173 2.982
NightlifeEn -.006 .189 .974 .994 .686 1.441

t
PVC .385 .373 .302 1.470 .708 3.054
Trans .459 .313 .143 1.582 .856 2.924
Acc .672 .355 .058 1.958 .977 3.924
Gastr .326 .378 .389 1.385 .660 2.907

Climate -.112 .415 .786 .894 .397 2.014
RR -.329 .478 .492 .720 .282 1.836
Constant - 3.521 .001 .000

11.86
7
Table 8 presents the results of the binary logistic regression which
revealed three significant variables at the 95% confidence interval. These are the
variables for Nature, Culture and Accommodations while no significant
relationship was found with other variables. This also shows that only variables
from the Tourism product characteristics has a relationship with the dependent
variable and none from the tourist characteristics (Age, Gender, First Visit, Civil
Status, Income and Education) had a significant relationship with the dependent
variable.
To examine the direction of the impact of these identified significant
variables i.e, Nature, Culture and Accommodations, the signs of the coefficients
were observed. It seems that all has a positive sign meaning that as the
satisfaction of the tourists towards the different attributes increases, the odds that
they will be return to Palawan also increases.
In terms of determining the relative importance of the three significant
variables in influencing their return visit to Palawan, the different values of the
49
coefficient were analyzed. The results show that one unit increase in the
satisfaction with Nature variable, it would lead to an increase in the odds that a
tourist will return to Palawan by 4.836 or almost five times. Similarly, a unit
increase in the satisfaction with Culture variable, it would lead to an increase in
the odds that a tourist will return to Palawan by 1.870 or 87%. Same goes for the
Accommodation, with an increase in its satisfaction, the odds that a tourist
returning to Palawan will increase by 1.958 or 95.8%.
Factor Analysis
For the next section of this chapter, a factor analysis was utilized in order
to see the groupings of the tourism product characteristics variables.
Table 9: KMO and Barlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .777

Bartlett's Test of Sphericity Approx. Chi-Square 439.744
df 36
Sig. .000
With the KMO and Bartley, the factor analysis meets the criteria necessary
to proceedtable 9 reveals a Kaiser-Meyer-Orlin Measure of Sampling
Adequacy higher than 0.5.
50
Table 10: Factor Analysis
a
Rotated Component Matrix
Component
1 2
RR .768 -.018
Climate .732 -.093
Gastr .608 .387
Acc .602 .404
Nature .291 .271
Culture -.049 .797
NightlifeEn .003 .692
t
PVC .417 .573
Trans .442 .512
Extraction Method: Principal
Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 3
iterations.
The table for factor analysis (see table 10) shows that there are two factors
summarizing the tourism product characteristics. For the first factor grouping, the
variables included are: Residents receptiveness; Climate; Gastronomy; and
Accommodation. The second factor grouping includes: Culture; Nightlife and
Entertainment; Price, Value and Cost; and Transportation. The first factor is
renamed as Ambiance while the second factor is renamed as Activities and Price.
Nature is excluded in both factors since its factor loading value is lesser than 0.5
meaning it has no effect in either of the factor therefore in the following
regression it is included as another variable.
51
Binary Logistic Regression (After Factor Analysis)
Table 11: Evaluation of Logistic Regression

Chi-square df Sig.
Step 1 Step 47.500 9 .000
Block 47.500 9 .000
Model 47.500 9 .000

1 11.791 8 .161
Model Summary
Step -2 Log Cox & Snell R Nagelkerke R
likelihood Square Square
a
1 107.689 .182 .378
a. Estimation terminated at iteration number 7 because parameter
estimates changed by less than .001.
The Omnibus tests of Model Coefficients shows a significant result with
significant values less than 0.05. Next test is the Hosmer and Lemeshow goodness
of fit test which shows a significant value higher than 0.05 which means it is
significant. The Model Summary section of the table shows the Cox & Snell R
square values (.182) and the Nagelkerke R square (.378). This means that between
18.2% and 37.8% of the variability of the dependent variable is explained by the
independent variable which was lower than the Before Factor Analysis regression.
Goodness of fit tests are just secondary importance in binary regression33. In
logistic regressions, these said correlation measures do not really tell much about
33
Gujarati, Damodar N. Essentials of Econometrics. New York: McGraw-Hill, 1992.
52
the accuracy or errors associated with the model. The important values to look at
are the coefficients and their statistical interpretations and significance.

a
Classification Table
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step OVDERALL 0 5 19 20.8
1 EVALUATION 1 5 207 97.6
a. The cut value is .500
To characterize the model as useful, a comparison of the overall
percentage accuracy rate produced by the software at the last stepchance
accuracy. The overall accuracy rate for this model is 89.8% which is showed in
table 12.
Table 13: Binary Logistic Regression (After Factor Analysis)
Variables in the Equation

B S.E. Sig. Exp(B) 95% C.I.forEXP(B)
Lower Upper
Step FirstVi -.146 .613 .811 .864 .260 2.872

a
1 sit
Nature 1.511 .426 .000 4.532 1.967 10.441
Age -.035 .588 .953 .966 .305 3.056
Gende .084 .522 .873 1.087 .391 3.024

r(1)
Civil .703 .584 .229 2.020 .643 6.345
EDUC .215 .203 .289 1.240 .833 1.845
incom -.206 .149 .167 .814 .608 1.090

e
53
FAC1 .484 .266 .068 1.623 .964 2.731
_2
FAC2 1.221 .284 .000 3.389 1.943 5.910
_2
Const -4.265 2.112 .043 .014
ant
a. Variable(s) entered on step 1: FirstVisit, Nature, Age, Gender, Civil, EDUC, income,
FAC1_2, FAC2_2.
The results are consistent with the first regression equation (i.e, before
factor analysis). It shows that at the 95% confidence interval, Nature, Factor 1
(Ambiance) and Factor 2 (Activities and Price) which are tourism product
characteristics are significant in the regression and that it has a significant
relationship with the dependent variable. Again, none of the tourist characteristics
(Age, Gender, First Visit, Civil Status, Income and Education) had a significant
relationship with the dependent variable.
The signs of the coefficients shows that all of the significant variable has a
positive sign meaning that as the satisfaction of the tourists towards the different
attributes increases, the odds that they will be return to Palawan also increases.
In terms of determining the relative importance, the values of the
coefficient show that one unit increase in the satisfaction with Nature variable, it
would lead to an increase in the odds that a tourist will return to Palawan by 4.532
or four and a half times which does not dive away from the first regression. A unit
increase in the satisfaction with Ambiance variable would lead to an increase in
the odds that a tourist will return to Palawan by 1.623 or 62.3%. With an increase
54
in Activities and Prices satisfaction, the odds that a tourist returning to Palawan
will increase by 3.389 or three and a quarter times.
Importance-Performance Analysis
For the last objective of this study, the Importance-Performance Analysis
framework is utilized. In this framework the averages of the ratings will be plotted
in the graph creating quadrants that would identify policies and strategies
enhancing the competitiveness of the Palawan as a prime tourism destination.
Averaging the ratings for the attributes of all respondents, the values
passed the quadrant wherein tourists identified them as important and are satisfied
with while in Palawanthe Keep up the good work quadrant. Therefore this
analysis shows that tourism stakeholders should maintain what they are already
offering. While it seems that the variable for Night life and Entertainment are a
unit away from the other variables in both importance and performance levels, it
shows that this variable is less important for the tourists when in Palawan as well
as they are less satisfied with this attribute than most attributes presented in the
matrix.
55
5
4.5
3.5
Performace
3
2 2.5 3 3.5 4 4.5 5
2.5
1.5
1
Importance
Nature Culture NightEnt PVC Trans Acc Gastr Climate RR
Figure 18: Importance-Performance Analysis (all respondents)
In order to improve the analysis with regards to enhancing the
competitiveness of Palawan, another matrix for the IPA framework is done. It
only shows the averages of the respondents who would not revisit Palawan. In
this case, most attributes are in the Keep up the Good Work quadrant. The
variables for Culture and Transportation are in the borderline near the
Concentrate Here quadrant. Again, it is obvious from the plot that the variable
for Night life and Entertainment is farther away from most of the variables and is
in the Concentrate Here quadrant. In this quadrant, it shows that the tourists
who would not revisit do not consider the said variables in Palawan as important
but are not satisfied with it.
56
5
4.5
3.5
Performance
3
2 2.5 3 3.5 4 4.5 5
2.5
1.5
1
Importance
Nature Culture NightEnt PVC Trans Acc Gastr Climate RR
Figure 19: Importance-Performance Analysis (respondents who will not revisit)
57
CHAPTER V: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
Summary
This study sought to identify the characteristics that make significant
effect in a decision to return to a destination. In particular, this study wanted to
find out the characteristics of a tourist and the tourism product that would most
likely visit and revisit Palawan as a tourism destination which was done through a
survey and running a logit regression model on the data gathered.
The results of the logit regression model showed that the significant
variables come from the tourist product characteristics and none from the tourist
characteristics. Nature, Culture and Accommodation are the significant variables
on the first regression wherein the attributes were not yet grouped. After the factor
analysis, the two factors grouped were significant in the regression. This is
excluding the variable Nature as it has a low factor loading thus retaining it as a
variable in the logit regression done. The results of the after factor analysis
regression were consistent with the before factor analysis regression that no
tourist characteristics were identified as significant in the regression.
Another aim of this study is to recommend policies and strategies which
aim to enhance the competitiveness of Palawan as a prime tourism destination.
To help answer this objective, an Importance-Performance Analysis framework
was done. Results show that for the average of all the respondents (both of whom
who said they would revisit Palawan and would not revisit Palawan), stakeholders
should maintain their current service since most of the respondents put
58
importance on all of the attributes presented and also are satisfied with it. In order
to improve the analysis, another matrix of the IPA framework was done. It shows
that all attributes are important for the respondents. However the satisfaction level
varied and the data points for the attributes are segmented in a way that variables
for Nature, Accommodation, Price, Value and Cost, Gastronomy, Climate, and
Residents receptiveness are grouped together while Transportation and Climate
(also in the same quadrant but data points are farther) are in the borderline.
Nightlife and Entertainment has another quadrant which showed that respondents
were not satisfied with this attribute but deemed it important when they choose
their tourism destination.
Conclusion
The results of this study suggest that it is the inherent characteristics of the
tourism product itself that attract the tourists. It is for Palawan and what the
destination can offer that makes tourists revisit. Moreover since the results show
tourist characteristics do not significantly affect the tourists choice in revisiting
Palawan, Palawan as a tourism destination is not tourist characteristic-specific
meaning the destination is for any types of tourist. Nature as another variable
excluded from the groupings is definitely significant in the equation meaning it
does increase the likelihood of revisitation. However, as seen in the profile of
those who said they would not revisit the province most of these tourists were first
time visitors which deemed the variable for nature as important and also very
satisfying. What is it then that makes the first-time visitors not want to revisit the
59
province? Nature is not enough for a sustainable growth rate of tourists arrivals.
The province must offer more.
In terms of importance and satisfaction ratings, the results suggest that for
those who said they would not revisit Palawan given their ratings, Nightlife and
Entertainment attribute needs to be one of the focus in improving the tourism
product itself or enhancing Palawan as a tourism destination. Palawan remains
quaint, rustic and underdeveloped. In developed cities such as Manila and Cebu,
nightlife is always crowded and very evident. This is also evident in Boracay
known for its beaches as well but is developed. However in Palawan, it seems to
be just a punctuation meaning its a break from a day filled with other activities,
i.e. sightseeing, island hopping and checking out its beaches and attractions.
Therefore, in maintaining its quaint and rustic characteristics, there is actually no
need for Palawan to actually focus on this attribute. Moreover, 14% checked the
box for not applicable suggesting that they did not experience this attribute. Also
since one of the attributes that is significant and is almost on the same quadrant as
the Nightlife and Entertainment attribute, Culture, also need to be in consideration
in making management and strategic plans when enhancing Palawan as a tourism
destination choice of the tourists.
60
Policy and Strategy Recommendations
According to the importance and satisfaction ratings, tourists have the
highest satisfaction rating for the variable Nature. Palawan has already long been
known for its island and beachesnatural factors. This is why Palawan is greatly
known because it offers Eco-tourism. The local government should put
importance on environmental awareness for tourists not just the locals. The
importance of the concept of tourism should not just transcend on the locals, park
coordinators and local government but also to all the other sectors in the
community.
Most of the respondents learned Palawan as a tourism destination from
TV/ Radio commercials. Tourism marketers such as DOT and the different
tourism agencies should continue promoting Palawan as a prime tourism
destination in the country. Its future marketing strategies should also focus on its
brand as the Worlds Best Island given its natural attractions which are very
important for the tourists when choosing a tourism destination.
In response to its Culture attribute that seems to deviate from a high
satisfaction rating but has a significant effect for a tourist to be attracted in
Palawan or revisit Palawan (also implied in the profiling of the respondents), the
local government must look into promoting its heritage through the historical sites
and by creating an event or promoting its festivals that would enhance the cultural
attribute of the destination. The local government should also take into
consideration the preservation of cultural tribes since it also attracts tourists.
61
For the accommodation facilities (as one of the significant attribute in the
regression) and tourism agencies, the tourism office of the local government must
have criteria and ratings for allowing these facilities to maintain their business
such as having continuous trainings of manpower to improve tourism product,
ensuring safety and security, and maintaining cleanliness
Since there are more domestic tourists, there is a need to focus on
domestic tourist-specific needs increasing the likelihood of return as they are the
marketers through word-of-mouth phenomenon. There are also more first-time
visitors than repeat visitors in the profile of those who said they would not revist
Palawan which is alarming since Palawan as a tourism destination need to
generate more repeat visitors especially when tourists have high spending
powerwhich seems to be the case given that most of the visitors have an income
of greater than Php 50,000. Retaining the market through investments to making
the visitors spend more is appropriate. Moreover since most of the respondents
are in Palawan for vacation, it is an opportunity for the investors to invest heavily
on making the visitors feel vacation through leisure travelling wherein vacationers
spend time on sports and outdoor activities apart from leisurely rest and relaxation
via natural beaches. Apart from this, there are already activities in Palawan that
does not need heavy investments but only needs promotion. These are activities
such as hiking and trekking the mountains and falls. The term appropriate was
coined earlier since most of the respondents are ages 15-44 therefore can spend
energy on outdoor activities.
62
Recommendations for Further Studies
To be able to generalize for the whole Palawan, the other gateway of
Palawan which is the Busuanga Airport, a gateway for Coron, should also be
surveyed.
In addition to the attributes, since there are only a set of selected attributes
that are based on the literature evaluated in this study, attributes specific to
Palawan as a destination was not taken into consideration. Hygiene should also be
considered as one of the respondents interviewed for this study suggested. Other
attributes such as water source, and safety and security should also be considered.
More literature about Palawan specified attributes should also be done as a basis
for additional attributes.
In terms of the method, apart from binary logistic model, there should also
be ordered logistic model to take into consideration the degree of satisfaction.
For the benefit of the stakeholders, another study focusing on the
concentration of spending of these tourists should also be taken into consideration
given that most of the tourists coming to Palawan have a high spending power.
63
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pp. 57-80
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Lancaster, K. (1966). A New Approach to Consumer Theory, The Journal of
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65
Appendix A: Survey
Dear Sir/ Madam,
Good day! I am Althea Salcedo taking my Masters degree in Industrial
Economics at the University of Asia and the Pacific. Your perceptions and
opinions with regards to the importance of the various characteristics of the
tourism product particularly, Palawan as a tourism destination are very important
to my study. Your response will help me understand how travel destinations are
influenced by such characteristics and at the same time help estimate the impact
of each on the tourism industry.
Your participation in this study is entirely voluntary. The information that you
provide will be kept confidential.
Thank you!
1. Are you a resident of the Philippines?
Yes No
If No, please proceed to question # 2

If Yes, please proceed to question # 4
2. What is your country of residence? ____________

3. Did you consider any other international destinations aside from the
Philippines?
Yes No
Please state the destination: ____________
4. Did you consider any other domestic destinations?
Yes No
Please state the destination: ___________
5. Which airline did you use in going to the Palawan?
Philippine Airlines Cebu Pacific
AirAsia Others: (please specify)
______________
6. What was your main purpose for visiting Palawan?
Business / Work Related Vacation
Visit Friends / Relatives Stop-over
Meetings / Conferences Others: (please specify)
______________
7. How did you learn about Palawan?
Travel Agencies Friends / Relatives
Airlines Internet
Travel Brochures / Magazines Others: (please specify)
______________
TV / Radio Commercials
____________________________
8. Is this your first visit to Palawan?
Yes No
If Yes, when was your last visit? _________
I
PRODUCT CHARACTERISTICS ITRAVEL ATTRIBUTES
Please rate the following attributes according to how importantthey are when
choosing a travel destination
Attributes Extrem Moderat Somewhat Minima Not

ely ely Important lly Important
Importa Importan Importa
nt t nt
1. Attractive natural
and scenic spots
2. Interesting
cultural and
historical
attractions
3. Interesting
nightlife and
entertainment
4. Quality of
products
5. Reasonable prices
of products
6. Convenient
transportation
7. Reasonable price
of plane ticket
8. Good
accommodation
facilities
9. Price of
accommodations
10. Variety of food
and dining
establishments
11. Quality of food
12. Good climate
13. The people
(hospitality and
kindness)
14. The quality of
labor force (hotel/
restaurant etc)
II
PRODUCT CHARACTERISTICS IITRAVEL ATTRIBUTES
Please rate the following travel attributes of the Philippines based on how
satisfied you are during your visit
Attributes Very Satisfi Neutr Dissatis Very Not

Satisfie ed al fied dissatisf Applica
d ied ble
1. Palawans
attractive
natural and
scenic spots
2. Palawans
cultural and
historical
attractions
3. Nightlife and
entertainment
4. Quality of
products
5. Prices of
products
6. Transportation
7. Price of plane
ticket
8. Accommodatio
n facilities
9. Price of
accommodation
s
10. Food and
dining
establishments
11. Quality of food
12. Climate
13. Its people
(hospitality and
kindness)
14. Quality of labor
force (hotel/
restaurant etc)
III
PERSONAL CHARACTERISTICS
Age: 15-2 25-44 45-64 over 64 Gender: Male Female

Civil Status: Highest Educational Attainment:
Single Less than High School
Married High School Graduate
Separated Some College
Divorced 2-Year College Degree (Vocational)
Widowed 4-Year College Degree
Masters Degree
Doctorate Degree
Professional Degree (MD, JD)
Occupation: _______________ If youre a student
Monthly Personal Income: Monthly Allowance:
Less than P10,000 Less than P1,000
P10,000 P20,000 P1,000 P2,000
P21,000 P30,000 P2,000 P3,000
P31,000 P40,000 P3,000 P4,000
P41,000 P50,000 P4,000 P5,000
Greater than P50,000 Greater than P5,000
OVERALL EVALUATION
Taking into consideration the answers you have provided above, please
indicate whether you will revisit Palawan:
Yes No
IV
Appendix B: Binary Regression Before Factor Analysis
Case Processing Summary

a
UnweightedCases N Percent
Included in Analysis 236 100.0
Selected Cases Missing Cases 0 .0
Total 236 100.0

Unselected Cases 0 .0
Total 236 100.0
a. If weight is in effect, see classification table for the total number of cases.
Dependent Variable Encoding
Original Value Internal Value
0 0
1 1
Categorical Variables Codings
Frequency Parameter coding
(1)
0 121 1.000
Gender
1 115 .000
Block 0: Beginning Block
a,b
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step 0 OVDERALL 0 0 24 .0
V
EVALUATION 1 0 212 100.0

B S.E. Wald df Sig. Exp(B)
Step 0 Constant 2.179 .215 102.321 1 .000 8.833
Variables not in the Equation
Score df Sig.
FirstVisit 1.407 1 .236
Age .125 1 .724
Gender(1) .316 1 .574
Civil 1.225 1 .268
EDUC .701 1 .402
income .418 1 .518
Nature 24.650 1 .000
Variables Culture 19.776 1 .000

Step 0
NightlifeEnt 3.512 1 .061
PVC 13.505 1 .000
Trans 18.206 1 .000
Acc 18.498 1 .000
Gastr 6.939 1 .008
Climate .157 1 .692
RR 2.951 1 .086
Overall Statistics 51.205 15 .000
Block 1: Method = Enter
VI
Chi-square df Sig.
Step 52.136 15 .000
Step 1 Block 52.136 15 .000
Model 52.136 15 .000
Model Summary
Step -2 Log likelihood Cox & Snell R Nagelkerke R

Square Square
a
1 103.053 .198 .411

1 4.220 8 .837
Contingency Table for Hosmer and Lemeshow Test
OVDERALL EVALUATION = 0 OVDERALL EVALUATION = 1 Total
Observed Expected Observed Expected
1 13 12.550 11 11.450 24
2 5 5.205 19 18.795 24
3 1 2.775 23 21.225 24
4 3 1.433 21 22.567 24
5 1 .855 23 23.145 24
Step 1
6 1 .541 23 23.459 24
7 0 .335 24 23.665 24
8 0 .187 24 23.813 24
9 0 .088 24 23.912 24
10 0 .031 20 19.969 20
VII
a
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
OVDERALL 0 9 15 37.5
Step 1 EVALUATION 1 4 208 98.1
FirstVisit -.150 .651 .053 1 .818 .861
Age -.288 .590 .238 1 .625 .750
Gender(1) .048 .544 .008 1 .929 1.049
Civil .605 .613 .972 1 .324 1.830
EDUC .219 .219 1.000 1 .317 1.244
income -.161 .164 .960 1 .327 .851
Nature 1.576 .481 10.757 1 .001 4.836
Culture .626 .238 6.922 1 .009 1.870

a
Step 1
NightlifeEnt -.006 .189 .001 1 .974 .994
PVC .385 .373 1.067 1 .302 1.470
Trans .459 .313 2.144 1 .143 1.582
Acc .672 .355 3.592 1 .058 1.958
Gastr .326 .378 .743 1 .389 1.385
Climate -.112 .415 .074 1 .786 .894
RR -.329 .478 .473 1 .492 .720
Constant -11.867 3.521 11.356 1 .001 .000
a. Variable(s) entered on step 1: FirstVisit, Age, Gender, Civil, EDUC, income, Nature,
Culture, NightlifeEnt, PVC, Trans, Acc, Gastr, Climate, RR.
VIII
Appendix C: Binary Logistic Model After Factor Analysis
Case Processing Summary

a
UnweightedCases N Percent
Included in Analysis 236 100.0
Selected Cases Missing Cases 0 .0
Total 236 100.0

Unselected Cases 0 .0
Total 236 100.0
a. If weight is in effect, see classification table for the total number of cases.
Dependent Variable Encoding
Original Value Internal Value
0 0
1 1
Categorical Variables Codings
Frequency Parameter coding
(1)
0 121 1.000
Gender
1 115 .000
Block 0: Beginning Block
a,b
Observed Predicted
OVDERALL EVALUATION Percentage
0 1 Correct
0 0 24 .0
OVDERALL EVALUATION
Step 0 1 0 212 100.0
IX
Step 0 Constant 2.179 .215 102.321 1 .000 8.833
Variables not in the Equation
Score df Sig.
FirstVisit 1.407 1 .236
Nature 24.650 1 .000
Age .125 1 .724
Gender(1) .316 1 .574
Variables Civil 1.225 1 .268

Step 0
EDUC .701 1 .402
income .418 1 .518
FAC1_2 4.663 1 .031
FAC2_2 24.075 1 .000
Overall Statistics 45.435 9 .000
Block 1: Method = Enter
Chi-square df Sig.
Step 47.500 9 .000
Step 1 Block 47.500 9 .000
Model 47.500 9 .000
Model Summary
X
Step -2 Log likelihood Cox & Snell R Nagelkerke R
Square Square
a
1 107.689 .182 .378

1 11.791 8 .161
Contingency Table for Hosmer and Lemeshow Test
OVDERALL EVALUATION = OVDERALL EVALUATION = Total

0 1
Observed Expected Observed Expected
1 11 11.842 13 12.158 24
2 6 5.541 18 18.459 24
3 1 2.698 23 21.302 24
4 5 1.536 19 22.464 24
5 0 1.015 24 22.985 24
Step 1
6 1 .613 23 23.387 24
7 0 .390 24 23.610 24
8 0 .211 24 23.789 24
9 0 .115 24 23.885 24
10 0 .039 20 19.961 20
XI
a
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
OVDERALL 0 5 19 20.8
Step 1 EVALUATION 1 5 207 97.6
B S.E. Wald df Sig. Exp(B) 95%

C.I.forEXP(B)
Lower Upper
FirstVisit -.146 .613 .057 1 .811 .864 .260 2.872
Nature 1.511 .426 12.590 1 .000 4.532 1.967 10.441
Age -.035 .588 .003 1 .953 .966 .305 3.056
Gender(
.084 .522 .026 1 .873 1.087 .391 3.024
1)
Step
Civil .703 .584 1.449 1 .229 2.020 .643 6.345
a
1
EDUC .215 .203 1.122 1 .289 1.240 .833 1.845
income -.206 .149 1.907 1 .167 .814 .608 1.090
FAC1_2 .484 .266 3.326 1 .068 1.623 .964 2.731
FAC2_2 1.221 .284 18.506 1 .000 3.389 1.943 5.910
Constant -4.265 2.112 4.078 1 .043 .014
a. Variable(s) entered on step 1: FirstVisit, Nature, Age, Gender, Civil, EDUC, income, FAC1_2,
FAC2_2.
Correlation Matrix
Const FirstVi Natur Age Gender Civil EDUC incom FAC1 FAC2
ant sit e (1) e _2 _2
Step Consta
1.000 -.334 -.865 -.275 -.165 .043 -.234 .303 .088 -.009
1 nt
XII
FirstVis
-.334 1.000 .109 -.084 .112 .160 .284 -.273 .060 -.098
it
Nature -.865 .109 1.000 .010 -.038 .077 .023 -.163 -.099 .187
Age -.275 -.084 .010 1.000 .164 -.523 -.229 -.361 .147 -.056
Gender
-.165 .112 -.038 .164 1.000 -.048 .099 -.183 .099 -.034
(1)
Civil .043 .160 .077 -.523 -.048 1.000 .145 -.142 -.015 .070
EDUC -.234 .284 .023 -.229 .099 .145 1.000 -.393 -.012 .055
income .303 -.273 -.163 -.361 -.183 -.142 -.393 1.000 -.097 -.057
FAC1_
.088 .060 -.099 .147 .099 -.015 -.012 -.097 1.000 .275
2
FAC2_
-.009 -.098 .187 -.056 -.034 .070 .055 -.057 .275 1.000
2
XIII

Salcedo Thesis

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Salcedo Thesis

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A MODEL OF TOURISM DESTINATION CHOICE:

PALAWAN PROVINCE CASE

A Thesis Submitted to the Faculty of the

In Partial Fulfillment of the

Althea Mae M. Salcedo

LIST OF TABLES ................................................................................................. iv

Table 1: Top Destinations in Palawan .................................................................... 4

Figure 1: Trend of Tourist Arrivals in Palawan (2008-2013) ................................. 3

wonders enough for a sustainable tourism industry for the province?results of

it sends a signal for a development in tourism management plans. Tourism

marketing decisions and strategies need knowledge and awareness of the

province has to offer more.

This study shows the relationship of specific attributes to the likelihood of

arrivals. This is done through a survey conducted in Puerto Princesa International

industry is vital in this study since it is a good potential market as well as

marketers (through word-of-mouth phenomenon) of the province. They consist a

demographic profile of the respondents, the highest percentage of tourists coming

Php 50,000 per month.

the tourists come back to the province? The Importance-Performance Analysis

(IPA) is done in this study to look at possible recommendations and strategies to

Background of the Study

The tourism industry plays a major role in stimulating other various

industries making it an industry with strong comprehensiveness, high industry

sightseeing, accommodation, food, shopping, and nightlife and entertainment

allowing it to be an industry that has a high potential in driving economic growth

and development in most developing countries. Marketing decisions and strategic

planning of tourism provisions and positioning need knowledge and awareness of

demand that allows the determination of important attributes to a specific

the tourists behavior in choosing the destination.

Most tourism demand studies rely heavily on the neo-classical consumer

differentiation and excludes measures of the tourists attitudes towards service

the relationship of utility and consumption of the products intrinsic properties or

Palawan is known as the Philippines last frontier. It is the largest province

tourism as one of the regions backbone in regional development and growth.

Palawans enormous tourism potential has been known by the national

1991. For Palawan, a unique legislation is the Strategic Environmental Plan. It

provides a comprehensive framework for the sustainable development of Palawan

environment of the province.

As seen in the figures below, tourist arrivals are increasing but at a

to Palawan than foreign.

2008 2009 2010 2011 2012 2013

Figure 1: Trend of Tourist Arrivals in Palawan (2008-2013)

400000 Domes9c Tourists

Figure 2: Domestic and Foreign Tourists (2008-2013)

2009 2010 2011 2012 2013

Figure 3: Growth rates of Tourist Arrivals (2009-2013)

Table 1: Top Destinations in Palawan

Rank 2013 2012 2011 2010 2009 2008

seem to go to Puerto Princesa City followed by Coron and El Nido.

Puerto Princesas pride is its Subterranean River or as it is usually called:

Crocodile Farm, Butterfly Garden, Plaza Cuartel, Immaculate Cconception

Cathedral, Mitras Ranch, and many more.

Coron, on the other hand, is a gateway community for tourists planning to

Surrounding the city are natural wondersmountains and the sea.

additional input in the plans of the provinces stakeholders.

The province of Palawan considers tourism as one of its regional growth

achieve such growth. However as mentioned earlier, the province has an

increasing but fluctuating rate in terms of tourist arrivals. Growth rate

significantly decreased in 2013. To achieve a sustainable tourism growth in the

province, Palawan must attract more touristsmeaning achieving an increasing

tourism product characteristics affect the choice of destination? In particular,

tourism product characteristics increase the likelihood of tourists revisit in

In order to address the problems presented, this study aims:

their chosen destination given their feelings/attributes toward certain