Analysis of Sustainable Tourism Development in the Philippines Report

This report provides a detailed analysis of sustainable tourism development, focusing on the Philippines as a case study. It explores the benefits of stakeholder involvement in tourism planning, examining both internal (tourists, employees) and external (local businesses, residents, government, competitors, customers) perspectives. The report also evaluates the advantages and disadvantages of public-private partnerships in tourism, crucial for infrastructure development. It delves into the features of tourism development planning at international, national, regional, provincial, and site levels, emphasizing the significance of interactive planning systems and processes to address issues like overcrowding and socio-cultural depreciation. Furthermore, the report evaluates various methods for measuring the impacts of tourism in the Philippines, including economic and environmental measures. It examines factors hindering sustainable tourism, analyzes different planning stages for sustainability, and discusses methods for resolving conflicts of interest and balancing supply and demand. The report also addresses ethical issues like enclave tourism, current issues in developing countries, and offers recommendations for future tourism development. The conclusion synthesizes the findings, highlighting key takeaways and implications for sustainable tourism practices in the Philippines.

Sustainable Tourism
Development

TABLE OF CONTENT
INTRODUCTION..........................................................................................................3
1.1 Discuss how stakeholders can benefit from planning of tourism with reference
to a current case study...........................................................................................3
1.2 Advantages and disadvantages of public and private sector...........................5
2.1 Analyse features of tourism development planning at different.....................6
2.2 Evaluation of significance of interactive planning systems and processes in
tourism development in the Philippines................................................................7
2.3 Evaluation of different methods available to measure tourist impact in the
Philippines.............................................................................................................8
P3.1 Justification of introduction of concept of sustainability in tourism
development in the Philippines.............................................................................9
P3.2 Analysis of factors which prevents sustainable tourism development in
Philippines...........................................................................................................10
3.3 Analysis of different stages in planning for sustainability in Philippines . . .10
4.1 Evaluation of methods of resolving conflict of interests to assure future well-
being of Philippines............................................................................................11
4.2 Analysis of implications of balancing supply and demand in Philippines...12
4.3 Evaluation of moral and ethical issues of enclave tourism in Philippines....13
5.1 Current issues associated with tourism development in developing country and
an emerging destination......................................................................................14
5.2 Evaluation and recommendations for future development of tourism in the
chosen destinations ............................................................................................14
CONCLUSION ...........................................................................................................16
REFERENCES.............................................................................................................17

INTRODUCTION
Tourism is one of the world's fastest growing industries. It is a key source of
foreign exchange and employment for many countries. Sustainable tourism is seen as
the best utilisation of natural, cultural, social and financial resources for national
development on an equal and self-sustaining way to deliver a unique travelling
experience and an enhanced quality of life through partnerships among government,
the private sector and communities.
Sustainable tourism development cannot work without the participation of all
relevant stakeholders as well as powerful leadership. Sustainable tourism is a regular
process and it needs to be supervised on a regular basis by looking at the effects and
introducing the correct protective measures when necessary, Fabinyi, (2010).
Sustainable tourism should also include a level of tourist contentment and assure a
meaningful experience to visitors by raising their awareness about sustainability
issues and promoting sustainable tourism practices.
This aim of this assignment is to look at sustainable tourism using the
Philippines as will cover the reasons for planning within the travel and tourism
industry, and analysis of features of tourism development planning at different levels
and the current issues related to tourism development planning along with impacts of
tourism in developing nations and emerging destinations.
1.1 Discuss how stakeholders can benefit from planning of tourism with reference to a
current case study
Tourism can provide short and long term economic, environmental and socio-
cultural impacts on tourist destination like Philippines. In the whole planning process,
there needs to be a careful consideration in the decisions.

Illustration 1;Stakeholders in tourism planning process
Figure 1, name year source:(Meadows,G.,2017)
The benefits of involving stakeholders in tourism planning process with reference to
Philippines are as follows:
Internal:
 Tourists: They are the major stakeholders in whole planning process.. The
age, gender and nationality of tourists affect the planning process of tourist
places. For example: if plans are made according to the needs of old aged
people for a particular tourist without knowing that mostly youngsters vi9sit
that destination, it will ruin the whole planning.
 Employees: Individuals working in hotel, restaurants, resorts also plays an
important role in formulating plans for tourism. Their opinions, views,
knowledge can give a major contribution in the tourism planning process.
External:
 Local businesses: The local business owners who have their shops at famous
tourist places in Philippines can give several benefits in planning process.
They are aware of preferences, tastes, likes and dislikes of the visitors who
visit tourist places. They know the reactions and responses of visitors and
therefore, they can give significant support in making plans for developing
tourism in cited country (Mbaiwa, 2011).
 Residents/ local community: The local people who live in popular tourist
sites in the Philippines sometimes make healthy relationship with the travellers

who visit there. This gives help in making policies, plans and procedures in
tourism development as they are aware of views and opinions of tourists about
a specific tourist destination.
 Government: The government of Philippines and its bodies have a significant
contribution in making plans for tourism development. The schemes, visa
policies, etc. make immense effects on the whole planning procedure for
tourism development (Estoque, and Murayama, 2013). This will make sure
that the plans which are being formulated are aligning with the rules,
regulations and laws designed by government and its institutions.
 Competitors: There is a significant competition in the tourism organisations,
travel agencies, tour operators, hotel, resorts which plays a key role in
designing the plans and polices for tourism.
 Customers: They are a very important part in the whole planning process for
tourism. Their preferences, tastes, needs, desires and wants are to be taken into
account when making the plans for tourism.
1.2 Advantages and disadvantages of public and private sector
Public private partnership abbreviated as PPP is a collaboration between
public and private sector to achieve a long term goal, generally for a project which
results in development of an area or region. The tourism sector has many types of
alliances such as franchise, management contracts and also, public private
partnerships which work to a specific tourism infrastructure of a region as these forms
of projects need huge investment and must offer a standard for both tourists and for
the locals of the Philippines (Lee, 2013).
Various benefits of public partnership for a developing tourist destination like
Philippines are:
 Enhanced infrastructure solutions compared to an initiative that is fully public.
 Quicker project completions and less delay on infrastructure projects by
involving time-to-completion as a tool to measure performance and profit.
 A public partnership's return on investment can be higher than the traditional,
wholly public ways as innovative designs and financing approaches become
available when the two sectors work jointly (Orozco, 2010).

 Public have authority from government to maintain in the market sharings as
well as have shareholders investors in the companies.
Various benefits of private partnership for a developing tourist destination like
Philippines are:
 Decision are made directly by managers which is quick and easy
 It promotes innovation in delivering the services.
 By public private partnership, risks is distributed and shared.
There are some drawbacks of a public partnership also which are as follows:
 There is always a risk for in public partnership that somewhat expects to be
compensated for accepting those risks that can add to government costs.
There are some drawbacks of a private partnership also which are as follows:
 If expertise in partnership depends largely on the private side, the government
has to bear disadvantages. It may be incapable to accurately assess the
proposed costs.
 If there is a smaller number of private entities that can perform tasks of
tourism planning then it may restrict the competitiveness needed for cost
effective partnership (Jalani, 2012).
 The shareholders are limited in private companies which gives not much
capital for the businesses
 Government looses control over prices, decision-making.
 Needs huge cost in planning and implementation regarding higher taxation
policies and whole costs.
2.1 Analyse features of tourism development planning at different
Tourism development planning is the process of collecting and assessing information
to determine and prioritise the current tourism development issues. Thinking of a
desirable future state of tourism in a destination such as the Philippines and selecting
from a number of options for accomplishing them is a good process. This process is
made up of analysing situations and visions i.e. the expected future state of the

Philippines and their mission and goals. This means adding targets for tourism and it’s
objectives. (Gössling, S., Hall and et. al., 2010). There is a need to analyse the
features of each different level of tourism development planning in applying this to
the Philippines to understand why they are important. The different levels are listed
below:
International level: This relates to international transportation services, the flow and
tour programming of tourists in a number of countries, free development of main
attraction features in nearby countries, marketing in different countries, and two-way
activities usually are done at this level by international organisations (Julian, 2017 ).
National level: This looks at several factors such as tourism policies, physical
structure plans, key infrastructure, main tour routes in the Philippines and their
regional connections, tourism organisational structures, legislation and investment
policies, tourism marketing strategies, promotional programs, education and training
programs, socio-cultural environmental and economic factors and impact analysis,
facility development and design standards, and national implementation techniques.
Regional level: Regional levels of tourism planning are for specific regions of the
Philippines. Regional levels are made using the framework of a country's national
tourism policy and plan.
Provincial planning: This level of planning is more special planning compared to
regional level planning but it isn’t as detailed as city or municipal planning or site
level planning.
Site-level planning: This is a very specific type of planning for individual buildings
or complexes of buildings like hotels, commercial centres and visitor facilities
(Gallagher, and Hammerschlag,2011).
2.2 Evaluation of significance of interactive planning systems and processes in
tourism development in the Philippines
The evolution in tourism has brought many problems to the local community of
Philippines such as overcrowding in tourist areas, traffic congestion and socio-cultural
depreciation.(Westerberg Jacobsen and Lifran, 2013).Most of these issues are due to
liberal tourism policies and inadequate planning. (Jalani, 2012)Some tourist
destinations have received advantages from tourist development without any
planning.The majority of countries have formed tourism development plans and
strategies but some of these plans can only be partly applied because of the lack of

interactive planning system and processes. Interactive planning systems focus on top-
down, accompanied by bottom-up contribution, for improved applications of plans
(Zoomers, 2011). This means that the tourism planning needs to provide the right
foundation for the customer/visitor. It is a collective type of planning that should be
included in the starting plan, focused along the same lines. The incorporation of
opinions and wants of local communities in the planning process has to be applied.
Through these better decisions can be made by this participation process.
The importance of interactive planning system and processes is to make sure
that all levels of an organisation, communities and visitors get included in the plan to
avoid over budgeting. The aim of this is to reduce the negative impacts on local
communities and increase the potential of tourist destinations for places like the
Philippines. If there is not enough interactive activity from private developers, local
and national authorities with host communities, the Philippines could face poor
facilities and unskilled workers, services not meeting the demand and a decrease in
expectations from the tourism sector because of poor stability and security in host
communities (Westerberg, Jacobsen, and Lifran, 2013).
2.3 Evaluation of different methods available to measure tourist impact in the
Philippines
There are many methods that can be used to measure the impacts of tourism in
the Philippines. To avoid a large reduction of socio-cultural, environment and
economic impacts in attraction and destinations within the country, it is essential to
measure these effects:
 Economic measures: Development has a close connection with the economic
prosperity of a tourist destination. So, the most preferred and used measures
are concerned with economic affects. The economic tourism potential can be
measured as the gross increase in income of people in an area. In general this
is measured in monetary terms, and changes in incomes that take place when
there is no tourism activity. (Orozco, 2010). Measures that are included in the

direct benefits of tourism consist of earnings, business profits, growth in
number of jobs and return on revenue.
 Environmental measures: This type of method concentrates on the evaluation
of environmental costs. The aim is to predict the environmental impacts of a
future development activity, to make sure that any potential risks are predicted
and then the right measures are avoided, or ways to counterbalance the
environmental harms are made. As mentioned in the case study, the
Philippines has started to recognise the need to take up new development
approaches for introducing tourist products and services which are
environmentally sensitive.
 Social measures: The impacts of tourism investments and development plans
are really hard to measure and count because they are highly qualitative and
personal. There are two leading methods for gathering information for social
affect measurement. The main method is by collecting primary sources of
information by conducting surveys, interviews and questionnaires. The second
way is by analysing secondary sources found in records held by the Philippine
government, public documents, newspapers and documentaries (Kim, Ritchie,
and McCornick 2012)
P3.1 Justification of introduction of concept of sustainability in tourism development
in the Philippines
 Tourism in the Philippines is one of the major sources of strong and
sustained economic growth. Through the years, after World War 2nd, several
initiatives are being taken by government and its bodies, non-government
organisation, private entities to grow and sustain this industry in the
Philippines. This industry makes significant contributions in improving the
living standard of people in the country. Other than these significant
contributions, tourism also places an impact on social development, which is
wide and deep as it is labour as well as capital intensive. It encourages skills
and vocational development that can be transferable and boosts a culture of
tourism through a secure and clean environment, which benefits tourists as
well as an entire community (Ziegler, Dearden, and Rollins, 2012). It also
encourages and creates strong advantages to other economic sectors and
society as a whole. Additionally the Philippines can compete and win by

developing its tourism industry due to “timeless” competitive benefits of their
location to the North-East Asia, especially China, Japan and Korea. The
country also possesses world-class natural attractions. It is comparatively free
of restrictions unlike the other industries of the economy and can make niche
markets. Finally, the tourism sector maintains cultural integrity, important
ecological processes, biological diversity and life support system.
P3.2 Analysis of factors which prevents sustainable tourism development in
Philippines
Poor use of internet and other media: This is the most fixable area of bad
performance of the tourism sector in the Philippines. The country has not
actually taken benefit of a lot of free publicity that could be gained through
social media and the internet. Getting publicity is a very easy and cheaper
than before. The Department of tourism cannot even afford to run
advertisements on television. It does not have a YouTube channel and not
even an official Facebook page (Javier, and Elazigue, 2011).
Lack of infrastructure: Enough infrastructures are required to provide for
additional visitors with a positive image of the Philippines. Although, there
are many improvements in terms of new roads and airports being built and
new hotels being developed, there are issues such as whether the progress of
aiding infrastructure could support in this booming tourism industry.
Climatic changes: Tourism may be one of the simplest ways to attain inclusive
growth in the country, but extreme weather conditions are threat to its speedy
growth.
National events: The circumstances in Metro Manila are not very good when
attracting visitors. It used to be called the Pearl of the Orient. Now it is
known for its dirt. The reality is that in the present situation, it should not
even be shown on programs for the purpose of attracting tourists (Dodds, and
Graci,2012). They will only come and leave it with a negative image of the
country and its people. Even worse this will lead to them discouraging future
visitors.
3.3 Analysis of different stages in planning for sustainability in Philippines
National, regional and local are the three levels of sustainable tourism planning,
which consists of the stages below:

Stage 1: This is concerned with analysing the current situation and gives the direction
for the next stages. It considers the policies and plans of other public sector
institutions that have an impact on the tourism industry and identify present
situations, related programmes and events. This analysis leads to an assessment
of tourism resources elements of the region and preparation of their stock (Jalani,
2012).
Stage 2: At this stage, a deep research and analysis is done regarding the resources
and markets. On the basis of stock that was made in the first phase, main
resources are identified and allocated and their potential is examined. Here a
detailed study related to current and future markets of an area is recommended
for comprehensive planning.
Stage 3: This is one of the most essential and creative stages in the process of tourism
planning. The major conclusions from the research and study in the first two
phases are developed in this phase. The mixture of existing situations and the
expected future situation in the Philippines gives the basic future direction for
development of tourism (Orozco, 2010).
Stage 4: Under this stage, the goals, strategies and goal related plan objectives of
tourism are formed and designed. These should complement to the goals and
objectives of the tourism policy. The planning goals are accomplished from
several approaches or strategies. The tourism plan objectives are directly linked
with the strategy followed for achieving the goals.
Stage 5: The development of the plan itself forms this stage of the planning process.
Here, the details of plan, actions and programmes needed to accomplish plan
objectives, apply the strategy and fulfil goals of planning.
4.1 Evaluation of methods of resolving conflict of interests to assure future well-being
of Philippines
Conflict is an natural feature of sustainable tourism and any other industry. It
is important to understand why conflicts of interests take place and identify the
conditions that create conflicts. Stakeholders mostly intentionally or unintentionally
submit development and management duties to government bodies of the Philippines,
along with the advantage to shape its public presentation. Several stakeholders take an
active part in tourism conflicts and look to public interest to form their analysis.
Conflicts are more likely to take place in developing nations like Philippines, so the

tourism industry is affected (Mbaiwa, 2011). In order to get back visitors, they must
be provided with a range of experiences. The smallest issue of bad security can drive
travellers to go to another destination. Conflicts affect different areas of the tourism
industry as well as the economy in developing nations like the Philippines.
Some methods to that can be used to resolve conflict in the Philippines are
listed below:
 Discussion: Most of the time, conflict takes place due to a lack of
communication. For example: The government of Philippines does not
implement any effective means to promote it’s tourist places and policies. This
creates a communication gap between tourists and the government who are the
major stakeholders in tourism. Interactive sessions should be organised for
them to discuss about the issues.
 Mediation: When two stakeholders are involved in a conflict and are not able
to work it out together, then help from a third party has to be found. For
instance: The local business owners and visitors had a bad quarrel on a tourist
location in the Philippines . If they are unable to resolve it then, authorities of
government may have to intervene on behalf of government (Jalani, 2012).
4.2 Analysis of implications of balancing supply and demand in Philippines
Balancing the supply and demand side of the tourism industry is a tough task.
Implications include: services are direct; they cannot be sold. Other impacts are that
there is a high degree of producer and consumer interaction in the production of
service, which is a mixed advantage; on one side consumers are a source of
productive capacity, but on the other hand the role of the consumer creates doubt for
managers about the time of process, the quality of products and the facility's
adjustment of wants of consumers. Another effect is that because a service cannot be
moved, the consumer should be brought to the service delivery system or the system
to the consumer. Additionally, due to the vague nature of output of service, forming
and measuring levels of capacity for service operation can be extremely miscalculated
and qualitative tasks (Zoomers, 2011) . For measuring this supply demand balance,
the degree of management is evaluated. This concept is taken from synergetics. If a
system is experiencing a style transition, this is recognised by its outside control
factors and that the transition itself is driven by the attitude to self organise. There are
generally four laws to connect the supply and demand because if demand goes up and

supply does not change, then the prices of service increases due to a deficit. It is also
possible that demand does not change and supply can rise. In a situation like that the
imbalance can be seen in the form of surplus where prices of services will fall due to
surplus in the market. The unaffected supply with the fall in demand also ahows the
problems in the form of excess issues where prices begin to fall (Orozco, 2010).
4.3 Evaluation of moral and ethical issues of enclave tourism in Philippines
Tourism is known to bring employment, increasing GDP. It can also be
known for negative aspects like a weakening of natural resources, introducing
unwanted behaviours such as drugs and overcrowding. It is one of the largest
industries in the world, but it is facing a lot of issues with the ethics, morals and
society. It is essential to increase awareness regarding these issues that the local
communities all over the world have to face, so the future developments are
sustainable. The travel and tourism industry has a lot of ethical issues that include
leakage of income, green issue ethics, false advertisement ethics, unethical consumer
issues and employment ethics (Fabinyi, 2010). There are two models that attract
people with less disposable income, which have negative ethical impacts. Enclave
tourism refers to serve the customers in all complete services so that the local business
does not get chances to serve customers. In this way, the enclave tourism delays
progress growth of tourism in the Philippines and encourages customers to take
services form the hotel for their every single need during their visit. Enclave tourism
support the less share in economic terms. For example: the travellers in ships and five
star hotel of the Philippines are enclave to reach their every requirement so that local
hotels and restaurant do not receive opportunities to deliver the cultural and social
values with tourists. In this form, the ethical and social issues emerge between the
branded popular businesses and local communities for economic progress and
survival. (Mbaiwa, 2011).

5.1 Current issues associated with tourism development in developing country and an
emerging destination
There are various factors that impact development of tourism in developing
nations and emerging tourist destinations. In this context, comparison will be done
between Hungary, which is an emerging tourist destination, and Nepal, which is a
developing tourist destination. There are many similarities and differences in the
problems faced by these two countries in their tourism industries. Both of them are
facing a crisis in their economies. Because of a slowdown in the global economy,
people are less interested in visiting these tourist places because they are not very well
known and popular destinations on the global tourism map (Erkuş-Öztürk, and
Eraydın, 2010). The factors associated with environment make a large contribution to
the tourism industry. Nepal also called as the Himalayan Kingdom and lies in the lap
of Himalaya, is highly affected by earthquakes and landslides but there is no such
problem in Hungary. It has rich biodiversity in the form of lakes, forests and
mountains.
The infrastructure of tourism in Nepal is relatively bad and visitors face many
types of problems such as transportation, lodging facilities, language issues etc. On
the other hand, Hungary has a better infrastructure. But language problem exist there
because people do not know English and travellers have difficulties in communicating
with them. With regard to policy application, Nepal do not have any clearly framed
tourism policies which leads to tough situations at times. In Hungary there are no such
problems as it has clearly designed policies for the tourism sector (Lee, 2013).
5.2 Evaluation and recommendations for future development of tourism in the chosen
destinations
There are issues in the tourism industry, but the conditions can be expected to
get better because the purchasing power of people is growing all over the globe. With
the expansion of social media, the two nations are receiving enough attention
resulting to the popularity of both of the destinations. Both of them should pay
attention to development and identification of new places for adventure tourism. They
should arrange large marketing campaigns to show these places. Adventure tourism
and nature tourism are the recent trends in tourism and matching tourism policies in
this direction would support more business (Liburd, and Edwards, 2010).

Other areas for improvement specially so for Nepal would be the development of
infrastructure. The government should take measures to develop local transportation
facilities so that travellers can move around easily in Nepal. There is also a
requirement to develop world class hotels and restaurants so that tourists can have fun
and exciting experiences. Hungary possesses good infrastructure and should lay
emphasis on the human resource available in the nation. Skill enhancement programs
will benefit the industry. Both Nepal and Hungary are required to focus on the
language hurdle so that the tourists can engage in better communication. In the current
global environment, terrorism is a threat to all nations (Ruhanen, 2013). It is essential
for both the nations to assure that the security and safety measures are secure enough
for visitors.

CONCLUSION
This study is based upon Sustainable tourism development that discusses the
advantages of stakeholders from the planning of tourism development in Philippines.
It has also identified the benefits and drawbacks of public and private partnership in
tourism development. The report has analysed the characteristics of tourism
development at different levels as well as evaluating the importance of interactive
planning systems and processes. Several ways have been discussed to measure the
tourism effects with methods of evaluation for solving conflicts of interests in tourism
development. The impacts of balancing supply and demand have been explained by
focusing on issues associated with enclave tourism. The report also compares the
current issues in developing destination Nepal and emerging destination Hungary.
Recommendations and evaluation have been analyses for future growth within the
tourism sector.

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