cannot be over-emphasized.
Tourism on the economy
one of the very few industries that have identified as a….
cornerstone of the Philippine economy
] declares “tourism as an indispensable element of the national economy and an
industry of national interest and importance, which must be hamessed as an engine of socio-economic growth and
cultural affirmation to generate investment, foreign exchange and employment…”
Section 2 of Republic Act 9593, also known as Tourism Act 2009
Section 2 of Republic Act 9593
Tourism Act 2009
According to the …. tourism contributes to the
economy along three “pathways.”
United Kingdom’s Overseas Development Institute (2007)
(WTTC)
World Travel and Tourism
Council (WTTC)
produce induced effects.
travel and tourism
tourists spend for such commodities as accommodation, transportation, entertainment, and attractions.
direct effects
– refer to spending by international tourist in a country. Spending is considered as export
Visitor exports
- could be farms for food products, utility companies for water and electricity, and schools for human resource needs.
Non-tourism suppliers
collective spending by direct and indirect employees on food and beverage, recreation, clothing housing, and household goods.
Induced effects
- longer-term macro-level effects, such as general enhancement of skills within the economy, provision of better social services (health, education, security), and infrastructure (roads, airports, Internet).
Dynamic effects
terms of formal-sector jobs can range from 10% to 80% of income of poor people.
direct effects
formal-sector jobs can range
10% to 80%
biggest where the linkages are strongest, such as in big, rich, diversified economies.
indirect effects
Hummel in ODI (2007) outlined key findings from Value- Chain Analysis study:
- Revenues of semi-skilled and un-skilled workers constitute 27% of total tourist expenditure.
- Up to half of earnings of the poor come from the food supply chain.
- Income from craft is important for minority groups.
- Aside from the supply chain, most benefits from tourism are concentrated around capital cities, such as Luang Prabang, Laos, the area of his study.
author of entrepreneurship laws in the Philippines.
Senator Bam Aquino
speaking at a youth entrepreneurship convention at San Sebastian College Manila on September 17, 2015
Senator Bam Aquino
- tiny island of Boracay generates
50%
the raw materials needed by the establishments
5%
number of times tourism income is re-spent across sectors within the local economy.
Multiplier effect
- The higher the multiplier, the bigger the impact on the local economy.
Multiplier effect
50% to 90% in small, poor countries
Indirect effects
infrastructure can stimulate non-tourist growth and redistribution to “yellow brick road to export diversification.
dynamic effects
