CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter includes the ideas, finished thesis, generalization conclusions,

methodologies and others. Those that were included in this chapter helps in familiarizing
information that are relevant and similar to the present study.

RELATED LITERATURE

According to Christopher Puhm (2017), Philippines’ rising appeal as a tourist

destination is undeniable. New hotels and hostels continue to pop up in Manila, catering
to an influx of business travelers and backpackers. More and more international tourists
arrive at our sandy shores, with some even deciding to stay permanently. Even at home,
local travel shows explore lesser known destinations which warrant a trip. The World
Economic Forum’s annual Travel and Tourism Competitiveness Report shows that
developing our nation’s tourism industry goes beyond effective social media campaigns
extolling our well-known warmth and ability to deal creatively with everyday challenges.
In order to remain viable, the report notes travel and tourism needs to be supported by an
“enabling ecosystem” which includes modern infrastructure in the form of public
transportation and airports, a suitable business environment, safety and security,
government policies advancing tourism, competitive pricing, and of course natural and
cultural resources.

As stated in Philippine Department of Tourism (2018) The PHILIPPINES stands

at the crossroads of the developed western world and the Orient. It lies in the heart of
Southeast Asia, stretching more than 1,840 kilometers. Composed of 7,107 islands, the
Philippines is readily accessible to the different capitals of the world. Its three main
islands are Luzon, Visayas and Mindanao.
 According to Deluna, Roperto Jr and Jeon, Narae (2014) Empirical estimation was
conducted to determine factors affecting Philippine tourism demand. These factors
include income, market size, and distance. Relative prices was also identified which
includes cost of living and price of goods and services in the Philippines and other related
tourism destination like Malaysia, Indonesia and Thailand. Supporting variables like
direct flights, conflict, commonality in language and common colonizer between the
Philippines and source of origin of the tourist was also examined. Furthermore, it also
includes impact of calamity in the tourist home country and common membership to
ASEAN. Empirical results show that tourist inflow is positively and significantly affected
by income of the origin country and is reduced by population and distance. Relative low
prices of tourism in term of cost of living and prices of goods and services in the
Philippines have no effect in attracting inbound tourist. Furthermore, international
demand for Philippine tourism is not affected by relative prices of tourism in Malaysia,
Indonesia and Thailand as the competing tourist destinations. Conflict and common
colonizer between Philippines and country of origin are not significant determinants of
international tourism demand. Among the variables, direct flights turned out to be the
most significant factor that can contribute to the increase in tourism demand of the
Philippines.

As claimed by Chang, W. J., & Katrichis, J. M. (2016) It is argued that tourism

planning should be about planning for residents as well as for visitors. If tourism is to be
a positive force in the lives of local residents, it is contingent upon local response,
involvement and support. Many tourism plans for developing area destinations give
inadequate attention to human resources development. Furthermore, many tourism plans
espouse forms of tourism that do not fit well with existing human resources capabilities
so that local people find it difficult to participate in tourism and, in consequence, benefit
less than might otherwise be the case. Human resources development often focuses on the
employment needs of large international companies, especially in hospitality, to the
neglect of the employment requirements and opportunities in tourism more broadly
conceived. In an attempt to expand perspectives on human resources development in
tourism planning, a policy–industry–locality framework is proposed together with
associated research questions and data requirements.

REFERENCES

Chang, W. J., & Katrichis, J. M. (2016). A literature review of tourism management

(1990–2013): A content analysis perspective. Current Issues in Tourism, 19(8), 791-823.
Retrieved from https://www.sciencedirect.com/science/article/pii/S0261517704002080.

Puhm C. (Jun 9, 2017). These Are The Key Factors That Keep Tourists From Visiting
The Philippines. Retrieved from https://www.esquiremag.ph/politics/this-report-shows-
why-more-tourist-aren-t-visiting-the-philippines-a00201-20170609.

Philippine Department of Tourism (2018). Its more fun in the Philippines. Retrieved from
http://www.experiencephilippines.org/tourism/home-tourism/.

Deluna, Roperto Jr and Jeon, Narae (2014). Determinants of International Tourism

Demand for the Philippines: An Augmented Gravity Model Approach. Retrieved from
https://mpra.ub.uni-muenchen.de/id/eprint/55294.