THE ECONOMIC AND SOCIAL IMPACT OF TOURISM
DLSU Business & Economics Review 22.1 (2012), pp. 119-128
An Economic Analysis of the
Philippine Tourism Industry
Krista Danielle Yu
School of Economics, De La Salle University, Manila, Philippines krista.yu@dlsu.edu.ph The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities. According the Department of Tourism (2011), the industry is one of the three largest industries in the country.
This study aims to measure the economic impact of tourism to the Philippine economy through the use of input-output analysis. The tourism industry is mainly a consumer of inputs and producer of final goods, hence, its impact on the output is relatively higher. Also, its interdependence with other industries as shown by the linkage indices prove that other sectors do benefit from the tourism sector.
The government should promote tourism in the country. The past government administration applied holiday economics to help boost tourism domestically. The current administration may choose to consider continuing the program.
Keywords: Input-output analysis, tourism, linkages, impact multipliers
INTRODUCTION
The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities.
According the Department of Tourism (2011), the industry is one of the three largest industries in the country, where most of the visitors came from East Asia, Korea in particular. It can be noted that the highest inflow of visitors arrived during December 2010. This may be attributed to the warm weather of the country relative to their countries of origin.
Figure 1 shows that there has been an increasing trend in international tourist receipts as a percentage of gross domestic product (GDP), which remained higher
An Economic Analysis of the
Philippine Tourism Industry
Krista Danielle Yu
School of Economics, De La Salle University, Manila, Philippines krista.yu@dlsu.edu.ph The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities. According the Department of Tourism (2011), the industry is one of the three largest industries in the country.
This study aims to measure the economic impact of tourism to the Philippine economy through the use of input-output analysis. The tourism industry is mainly a consumer of inputs and producer of final goods, hence, its impact on the output is relatively higher. Also, its interdependence with other industries as shown by the linkage indices prove that other sectors do benefit from the tourism sector.
The government should promote tourism in the country. The past government administration applied holiday economics to help boost tourism domestically. The current administration may choose to consider continuing the program.
Keywords: Input-output analysis, tourism, linkages, impact multipliers
INTRODUCTION
The archipelagic nature of the Philippines, as well as its colonial heritage, offers a wealth of scenic views that invite both locals and foreigners to participate in tourism-related activities.
According the Department of Tourism (2011), the industry is one of the three largest industries in the country, where most of the visitors came from East Asia, Korea in particular. It can be noted that the highest inflow of visitors arrived during December 2010. This may be attributed to the warm weather of the country relative to their countries of origin.
Figure 1 shows that there has been an increasing trend in international tourist receipts as a percentage of gross domestic product (GDP), which remained higher
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