Effectiveness of Tourism - Research Paper Example

? Effectiveness of Tourism Introduction Almost no country on this planet is self-sufficient; every country requires assistance and help from other states in order to survive. This help or assistance can be of various forms; for instance, some countries have agriculture-based economies, which means that their agricultural productivity is higher than their current requirements, so they have this luxury of exporting these agricultural products to countries that are in need. Similarly, countries with industrial economies are self-sufficient in terms of tools and equipments required for different purposes, so they export or sale these products to countries that are in need of them (Singh, 2008). This buying and selling of products, goods and services somehow helps maintain the equilibrium on this planet, as it works according to the principle “You scratch my back, I scratch yours”. However, different countries rely on different sources for generation of income. These sources vary from small basic household products to large-scale destructive missiles (weapons of mass destruction), from daily used dairy products to fashion and clothing accessories, from agricultural products to the latest high-tech gadgets, and from medical equipment to services related to hospitality. Hence, there are countless ways by which countries are earning their livelihoods and generating profit. Tourism is also one of the important ways adopted by many countries of the world, and as a result these countries are generating large amount of income. Tourism fulfills the basic human needs of rest and recreation and can give maximum fruits to countries in many ways (Smith, 1994). It is beneficial for countries that are already developed, and for countries that are willing to develop, tourism can play an effective role provided they have sights to offer to tourists (Octaviano, 2012). Tourism can play a vital role in raising the GDP of the countries; it can be fruitful in many ways for under-developed countries as these countries usually lack power and are looking for ways to shift their status from that of a third world country to that of a first world country (Urry, 2003). For instance, the role played by Philippines government in the promotion of tourism has worked for the country in a number of ways, and the tourism history of this country can be used as a “road map” for other under-developed states. Philippines did some structural adjustments with the help of World Bank in mid 70s (1973-1974) and initiated a program to endorse tourism. Moreover, different countries during the same tenure also made structural adjustment programs to promote tourism. They adopted variety of techniques: for instance, they attracted investors and transnational corporations that have in most cases the control over resorts, hotels and transportation; they helped programs funded by other countries, providing them with full government support to enable them to carry out their operations; and they took loans from various different sources in order to create an infrastructure for tourism expansion. The Philippines Tourism Strategy as a Role Model for Under-Developed Countries The Philippines tourism strategy can be considered as a classic example of what tourism has to offer to under-developed countries (“The Philippines”, n.d.). As it is believed, tourism in Philippines emerged due to major contributions by Marcos (dictator) in 1973 (Lumang, 2008), who had this vision of making Philippines a City of Man. Chasing that vision, he restlessly worked on engaging international hotels chains and other businesses to come and invest in the country in order to promote tourism. Marcos made relaxed and favorable policies for these foreign businesses so that their stay in the country could be prolonged. More than three decades have passed, and still tourism in Philippines is giving fruits and has matured in a number of ways. It has shown growth and is still following the same trend. Moreover, this trend is achieved because of the development plans, goals, policies and programs that they made and altered many times (for instance, plans like the National Tourism Master Plan (1991 to 2010), Medium Term Development Plan for 2000 to 2004, etc). Furthermore, Philippines’ tourism department is very keen in terms of marketing. Timely marketing and advertisement campaigns are launched in order to encourage more people to come and enjoy tourism in Philippines. Moreover, Tourism Act of 2008 is another important development in terms of tourism expansion of Philippines. This act focuses on creating tourism enterprises/economic zones (TEZs) for different parts of Philippines such as Bohol, Davao, Cebu, Iloilo, Laguna, Cavite, Boracay and Palawan (Lumang, 2008). Different hotels, resorts and other entities related to tourism are active in the abovementioned places, which will further encourage tourists to come and enjoy the stay. Similarly, different policies have been devised for these tourist zones like providing amenities for work, business and leisure purposes. Furthermore, Philippines have developed different kinds of tourism programs: eco tourism, cultural tourism, health tourism, etc. Meanwhile, Philippines is also keen on enhancing handicraft products and creating different recreational activities and is also prepares ways for adventure tourism. Besides these advancements in terms of strategy, English language is also considered to be the second language for the abovementioned programs. The Philippines tourism strategy is keen on having more international investors, so the country is giving different kinds of luxuries or benefits to investors and tourism-related businesses. For instance, policies regarding foreign employment, tax holidays, land ownership for foreigners, foreign exchange remittances, and duties exemptions on imports are not strict. These are few main policies that Philippines government has adopted in order to promote tourism. These strategies are somehow the limelight for many under-developed countries. Adopting the abovementioned policies or strategies can give to under-developed countries a boost in terms of tourism. Some Important Facts and Figures of Philippines Tourism Industry Philippines over the decades has gained many benefits from tourism industry and is still collecting them. According to the estimation put forward by the Department of Tourism of Philippines, tourism industry alone has created 3.49 million jobs across the country, which obviously has resulted in strengthening of the economy plus and sharing of the burden amongst the government and tourism industry. Furthermore, according to the Department of Tourism of Philippines, tourism industry generated revenue of US $ 2.54 billion in 2006, which later showed an enormous increase by 144 %, reaching to the value of 4.89 billion US$ in the year 2007. This again is very striking for under-developed countries, as its shows that if proper planning is carried out in tourism industry, it can do wonders for those countries, provided that other important factors are also considered and emphasis is placed on different tourism products and strategies. These should be devised accordingly, with focus on core issues and high-value tourism services and products, which include proper education, corporate events, wellness, diving, honeymoons, shopping, etc. These services and products, one way or the other, have much potential of driving and booming up the visitors’ spending. Likewise, it is expected that tourism industry of Philippines is likely to grow by 4.5 % per annum from 2009 to 2018; also, it has generated almost 1,377,000 jobs in 2008 (Lumang, 2008). The Main Drivers (Current and Future) of Tourism Industry of Philippines According to the Department of Tourism of Philippines, the country’s tourism industry is likely to achieve 44 billion US$ by the end of 2015. Moreover, it is expected to create employment opportunities for around 4.0 million Filipinos (directly or indirectly) (Lumang, 2008). In order to achieve this target, the country’s Department of Tourism in 2007 has devised a strategy and highlighted some of the high-value tourism products and services, which will prove beneficial and fruitful, as these products and services are likely to make an increase in per capita spending of the tourists. These high-value products and services were of different kinds; for instance, in medical field these services were named as medical tourism. Furthermore, various important developments were done, considering the high-value tourism products; for instance, for old age retired foreigners different havens were created equipped with all the basic necessities that would be required for giving comfort to these people. Philippines was advertised to them as a retirement spot, which again shows the country’s serious aptitude for tourism and knowledge of the industry. Likewise, further image portraying was done showing Philippines as English language learning travel centre. The concept of medical tourism first appeared in 2004 (Herrick, 2007), but due to some reasons it was not put to practice effectively (Connell, 2006); however, after deep thinking and working on medical tourism, which is also known officially as Medical Tourism Philippines (MTP), it was modified and executed in 2006 with the involvement and assistance of the Department of Health (Lumang, 2008). Medical Tourism Philippines had some insecurity regarding the health tourism and some concerns were raised; however, the results were favorable because of the overall potential of generating of enormous amount of money. This was an important gamble, especially considering that Philippines tourism industry can face a drastic loss of revenue and resources; nevertheless, the idea of sticking with the plan has worked. Furthermore, one should also focus on the technique adopted by Department of Tourism regarding targeting the retired foreigners around the world. For doing that, they considered an average pension, which ranges from 1000 US$ to 1500 US$ in many developing countries. The Department of Tourism of Philippines was fully aware of the impact of inflation and that because of inflation these pensions amount will not be enough for retired people living in developed countries. Therefore, as a result, a proper policy has been designed considering that these people they can prove to be an extra source of income for the tourism industry. The Department of Tourism created havens for retired people and marketed Philippines as a potential home for them. The Tourism Department offered various different services for this group so as to give them a sense of joy and comfort in their last days. These services included housing facilities, health and fitness, farming, club house services, etc. Furthermore, there are few more developments planned in the Philippines tourism industry. For instance, a coastal strip is under development to promote farming and attract more tourists. Almost 5,700 hectares of Hamilo coast are being developed by SM group, and it will surely add some more money in terms of tourist spending, will add one more tourist spot for the foreigners, and will provide more opportunities. Besides this project, various other products have been initiated, which, one way or the other, will give extra support to the tourism industry of Philippines. These are some of the main drivers that are very well adopted by Philippines, and if these drivers are considered by other under-developed countries, they can improve their tourism industry, too. Conclusion On the basis of this analysis, the effectiveness of tourism can be understood. As regards generating more revenues, tourism industry can do wonders for under-developed countries and for developing countries. There is much potential in this field; it holds great opportunities and chances for new-comers as new-comers are likely to offer new places to explore, new culture to learn from and new paradigms to learn about. Furthermore, by adopting the methods and techniques of the Philippines Tourism Department, under-developed countries can also gain benefits. Tourism gives not only benefits in terms of revenue generation but also knowledge about different cultures of the world and assists in maintaining peaceful relations with them. Furthermore, through the promotion of tourism, intermingling of culture and knowledge is achieved, and this assists in raising the standards of people. Tourism can also help achieve technological advancement and educational breakthroughs. Therefore, for tourism to improve economics, the policies and methods as practiced in the tourism industry of Philippines should be adopted. References Connell, J. (2006). Medical tourism: Sea, sun, sand and surgery. Tourism Management, 27, 1093-1100. Herrick, M. (2007). Medical tourism: Global Competition in health care. National Center for Policy Analysis. Retrieved from http://w.medretreat.com/templates/UserFiles/Documents/Medical%20Tourism%20-%20NCPA%20Report.pdf Lumang, J. (2008). Tourism as a development strategy: Is it the right way to progress? Contours, 18 (4), 8-11. Octaviano, T. (2012). Tourism industry report: Beyond campaigns. Business World Online. Retrieved from http://www.bworldonline.com/content.php?section=Beyond&title=Tourism-Industry-Report:-Beyond-campaigns&id=49133 Singh, L. K. (2008). Issues in tourism industry: Fundamental of tourism and travel. Delhi: Isha Books. Smith, S. (1994). The Tourism product. Annals of Tourism Research, 21 (3), 582-595. The Philippines (n.d.) Retrieved from http://www.philippines.hvu.nl/tourism2.htm Urry, J. (2003). Social networks, travel and talk. British Journal of Sociology, 54 (2), 155–175. Read More