CRISIS IN THE PHILIPPINES TOURISM INDUSTRY

A CASE STUDY

PRESENTED

TO

STI COLLEGE GENSAN

IN PARTIAL FULLFILMENT

IN

MACRO PERSPECTIVE IN TOURISM AND HOSPITALITY

Presented By:

Nikka Deypalubos

Charles Nuñez

Venzz Bernal

Dave Tupas

Kate Winslet Ocampo

August 2019
 Background of the Study

The travel and tourism industry here in the Philippines was nearly reached its

fatal state. Surrounded by the crisis those are still continuing vigorously until now. The

archipelagic nature is given but the foreign visitor’s feels that it is not safe destination

anymore. Tourist began having doubts about travelling to Philippines and even

cancelled reservations in hotels and tour operations. Furthermore, this might have a

large impact on economy since there are multiple places in the world that generate most

of their economy through tourism. Tourism industry is a great potential to boost

economic growth and one of the big industry who create jobs and infrastructures.

A crisis can be described as a triggering event which causes or has a potential to

cause significant change. Every crisis is unique and unexpected; urgency and danger

are characteristics for these. (Hermann 1972 in Henderson 2007, 3.) The tourism

industry has suffered from terrorism, natural disasters, security issues and crisis mode.

These are that types of crises that you can hear about through the all forms of media. In

addition, this case study is concentrated on this crisis because a traveler does not have

any influence on these circumstances.

The private and public sector launches their projects to counteract the impact of

negative news about the country to increase the number of tourist continuously in spite

of the President Rodrigo Duterte declared a curfew to entire country and martial law

especially in Mindanao. Those sectors reassure their statement regarding the crisis in

tourism and need to act fast to seize this very alarming situation.
 Statement of the Problem

The problem that rises from the article is that tourist may be come frightened to

travel to certain places and destinations due to being a high risk zone and the tourism

industry continues to decrease of foreign visitors who travel in country. These are the

following crisis in tourism:

1. Terrorism - a standard definition of terrorism does not exist but it can describe

as an act of violence motivated by political or religious factors targeted at civilians

with the goal of influencing and audience (Henderson, 2007, 53). Terrorism often

associated in tourism industry and it appears in many forms, such as bombing,

shooting, kidnapping and beheading. In a purpose of seeking attention to the

large-scale of media networks around the world and demand in multiple nations,

instead of just one. Sometimes, they are associated with kidnapped with ransom,

they will ask for a certain amount of money in exchange of a person.

2. Natural Disasters - The geography of a destination may be an attractive

characteristic to travelers, but it can also include factors, which may frighten

travelers away. Both in coastal location, in the mountains as well as on the

riverside, there are diverse forms of natural disasters by which travelers may be

affected. The power of the nature seems appealing to many travelers, but at the

same time its brutality can cause human losses and influence the tourism

industry of the region. (Henderson 2007, 92-93). Earthquakes, flashfloods,

landslides and typhoons are examples of natural disasters that create fear and

concern in people’s minds which may affect travelling habits of people.

3. Personal Security Issues – This section is a combination of different fears that

tourist may have towards their personal security when travelling. It includes

issues such as health risks, crime and political riots (Peltomaki, 2015, 18.).

Health and well-being risks while travelling maybe besides to the other crisis

situations a concern for many travelers. These risks cover a great variety of

different kinds of diseases such as infectious diseases, tropical diseases and

disease outbreaks, also known as epidemics. Drinking water, hygiene, injuries,

violence, pharmaceutical products, sexual health, vaccines, poisons, food safety,

drugs, noise pollution and ultraviolet radiation are also some examples of health

issues in the tourism industry. (WHO 2010.) Besides sickness and disease

issues, accidents and injuries are also included in health hazards. Health threats

may be divided into involuntary and voluntary threats, the latter including sexually

transmitted illnesses and adventure tourism. (Henderson 2007, 104.) In crime

against tourist is also known and accelerating phenomenon in many travel

destinations. (Peltomaki, 2015,). It does appear that many tourist areas do

experience higher than average crime rates and we are likely depending upon

the unreliable police statistics. The common crimes are hijacking, theft and

assault. So it is important to take care of tourist and assist victims of a certain

crime. Lastly, the political riots it can also have a negative effect on the tourism

industry. These are the known political disputes; Bombings, threat of war, and

unstable political situation/ wars in neighboring countries. The reason why

tourists are often targeted by criminals is simple. Tourists are known to carry with

them larger amounts of cash and valuable things.

 Alternative Courses of Action

The private and public sector in any organizations of tourism launches a project

in a purpose of having a solution to the crisis in tourism industry. A choice limited to

one of two or more possibilities, as of things, propositions, or courses of action, the

selection of which precludes any other possibility. There are the two projects that

organizations built:

1. “A very Aggressive PR Campaign” – by Alejandra “Dading” Clemente, Rajah

Tours Philippines chair and grand dame of the industry. She urges the

Department of Tourism to launch this project. This Public Relation Campaign is a

challenge consists in identifying the most efficient ways of promoting tourist

products, building a positive image, increasing the visibility of tourist destinations,

in order to attract a significant number of tourists. These also counteract the

impact of negative news about the country. It focuses on gaining audiences

understanding and acceptance in spite of the crisis. It is a strategic form of

communicating to the foreign visitors and tourist.

2. “A Special Contingency Fund” – from Department of Tourism Secretary

Wanda Teo. This aims for the emergency and crises. To undertake marketing

and promotions activities that will encourage sustained tourism interest in the

Philippines and that will address the adverse effects of these emergencies

(Teenee, 2009). Development of the tourist attractions will encourage tourists to

visit the country. It also helps to promote the tourism industry. This fund shall be

used exclusively for requirements of new and/or urgent projects and activities

that need to be implemented during the year.

 Recommendation

This final chapter draws together the main conclusions from the case studies,

discusses follow-up initiatives under the Private and Public Sector, and makes general

recommendations on how to respond to the crisis in tourism. Identifying the workable

solution and implementation to the problem we have identified.

1. “A very Aggressive PR Campaign” – A Public Relation Campaign focuses on

opposing the negative news about the country. These are the some initiatives

they have taken:

 Media Relations

This is all about building relationships with reporters and editors and

securing favorable coverage. Most often, this involves cold pitching, distributing

press releases, and connecting on social media. Ensure that the right information

gets out fast to people who need it, and stop problems from spiraling even further

out of control. That’s where crisis communications come in. Influencer marketing

is one of a hot topic these days, but it isn’t often openly discussed as a PR tactic.

That’s a good reminder that PR is dictated by its goals, and not just the tactics

and channels used.

 Government Relations

Companies and organizations that interface with government agencies

have a need to manage those relationships well. To improve the tourism by

helping each other.

  Community Relations

Companies, organizations, and nonprofits often have a need to manage

the connection they have with their surrounding communities. This can also

extend to online communities and community management.

 Customer Relations

Beyond just customer support, how do companies shape perceptions and

build relationships with their customer base? Strong customer relations can go a

long way toward building brand loyalty without relying on advertising or content

alone. Promoting tourist products, building a positive image, increasing the

visibility of tourist destinations.

 Corporate Social Responsibility

In the modern era, people expect companies to act responsibly and to be good

stewards of natural resources. CSR helps businesses show what they’re doing to

make a positive impact (and in turn, build goodwill with potential customers).

(Sailer, 2019)
2. “A Special Contingency Fund” – The DOT’s project in a purpose for

emergencies and crises that are happening. And to increase patronage to

restaurants, attractions, hotels, and events in the country through financial

assistance. The following initiatives of DOT’s project is discussed below:

 Reinvestment in tourism products - The purpose of this grant program

is to enhance the tourism experience, increase overnight stays and

increase visitor spending in-county. The Tourism Reinvestment Marketing

Grant is intended to enhance and grow the tourism products and

destination awareness. Which aim to reach audiences through media

outlets and product development projects. (Cumberland,2019)

 Place-making projects – Are fundamentally place making actions

intended to shape the image and image ability of a place.

 Special events - As part of event tourism has been described as specific

rituals, presentations, performances or celebrations that are well planned

and carried out to mark special occasions or achieve particular social,

cultural or corporate goals and objectives.

 Public-private partnerships - To benefit all parties involved, through

alignment of their resources and goals. PPPs are becoming more

common, because governments realize these agreements may have

many tangible and immediate benefits, and the private sector is granted

access to new markets and opportunities (PARTNERING, 2002).

According to Kim, Kim and Lee (2005), PPPs are essentially partnerships

between public sector organizations and private sector and corporate

investors, for the purpose of conception, planning, funding, construction

and supply of infrastructural equipment or exploration of services. ECLAC

(2007) adds that PPPs are characterized by the sharing of risks,

investment, resources, responsibility and rewards.

 References

Cumberland, 2019. Tourism Reinvestment Marketing Grant. Office of Tourism.

Maryland

ECLAC - Economic Commission for Latin America and the Caribbean. Tourism in the
Caribbean competitiveness, upgrading, linkages and the role of public-private
partnership (PPP) and public policy. United Nations, 2007.

Henderson, J.C. 2007. Tourism Crises: Causes, Consequences and Management.

Elsevier Inc. USA

KIM, D.; KIM, C.; LEE T. Public and private partnership for facilitating tourism
investment in the Apec Region. APEC Tourism Working Group (TWG) & Ministry of
Culture and Tourism, Republic of Korea, Asia-Pacific Economic Cooperation, 2005.

PARTNERING for the future - public-private partnerships in tourism development.

Investment & Development Office, Ministry of Tourism, Culture & Recreation, Province
of Ontario, Canada, 2002.

Peltomaki, S. M. 2015. Crises in the Tourism Industry and their Effects on different
Generations. HAAGA- HELIA: University of Applied Sciences

Sailer, B. 2019. 29 Effective Examples of Public Relations Campaigns and Tactics to

Inspire Your Strategy. https://coschedule.com/blog/public-relations-examples/

Teenee, 2009. Tourism Act of 2009: Tourism Promotions Board (TBP) and the Tourism
Promotions Fund. URL: http://visitpinas.com/tourism-act-of-2009-tourism-promotions-
board-tbp-and-the-tourism-promotions-fund/

WHO 2010.Health topics. URL: http://www.who.int/topics/en/Quoted: 16.12.2010.

Documentation