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By Marinel E. Peroy 

Bouncing back from the brunt of the pandemic , the Philippines welcomes the upward trajectory it experiences as the fastest-growing economy in Southeast Asia. Brandishing the GDP growth of 5.6% last year and bullish outlook of 6.2% projected growth in 2024, these indications Spearheaded by the Philippine Hotel Owners Association, Inc. (PHOA), the 1st Philippine Tourism and Hotel Investment Summit hosted an event discussing trends, opportunities, challenges, and strategies for 2024 in both sectors. 

In cooperation with Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the event was held at the New World Hotel Makati which gathered various experts, industry leaders, and investors from government, private, and other stakeholders last June 21. 

According to UN Tourism, the country holds a strong position as a premier destination of tourism investments with its positive economic growth and stability, growing investment destination, government initiatives and incentives, and attracting significant foreign direct investment in the tourism sector. 

Moreover, the presentation of Peter Janech, Coordinator of Innovation, Education, and Investments of United Nations Tourism — Insights into the Global & Regional Tourism Investments — believes that the Philippines has its competitive advantage in safety, price competitiveness, and environmental sustainability on the Travel and Tourism Development Index – Asia and the Pacific (World Economic Forum 2024), respectively. 

The Philippines’ commitment to developments in sustainable tourism development, hotel, and hospitality infrastructure, and post-pandemic strategies for the hospitality sector are some of the efforts that make the country a ‘leading and resilient destination’ for international tourists and investors. According to the UN Tourism data, there were 5 million international tourist arrivals to the Philippines in 2023. The country also met a completion of 3,900 new hotel rooms in 2023, a record-high for the industry. 

Meanwhile, the Department of Tourism shared that ₱509 billion in total tourism investment in 2023, with a growth rate of 11.7% to the entire Philippine economy from the previous year.

To make the Philippines a tourism powerhouse in Asia, a national tourism development plan 2023-2028 was established with the following objectives: a) improve tourism infrastructure and accessibility; b) cohesive and comprehensive digitalization and connectivity; c) enhancement of overall tourist experience; d) equalization of tourism product development and promotion; e) diversification of portfolio through multidimensional tourism; f) maximization of domestic and international tourism; and g) strengthening tourism governance through close collaborations with national and local stakeholders. 

Aside from revitalizing tourist arrivals to make the country a tourism investment destination, the hotel industry is expected to fully recover by 2025, as stated in the forecast of real estate brokerage company, Leechiu Property Consultants, Inc. (LPC) with PHOA. It is interesting to note that based on the information provided by the Philippine Investment Outlook Survey (PIOS) report from March to April 2024, there is a robust responders’ confidence of 89% for a positive outlook in the hospitality industry over the medium term. The report also revealed that the Highest Investment Interest in the following locations in the Philippines: Bohol, Metro Manila, Cebu City, Siargao, and El Nido. For the investors, their top three (3) key priorities in post-pandemic financial strategy are cash flow management, stakeholder relationships, and sustainability. 

In conclusion, the report emphasized the crucial collaboration between the government and the private sector to sustain the momentum of mutually beneficial relationships and ensure success in the industry’s ever-changing demands.

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What is the DOT Accreditation?

A certification issued by the Department to a tourism enterprise that officially recognizes it as having complied with the minimum standards for the operation of tourism facilities and services.

Learn how to use Online Accreditation System

Who may apply for a dot accreditation, primary tourism enterprises.

These are facilities and services directly related to tourism. DOT-certified primary tourism enterprises shall be periodically required to obtain accreditation from DOT to ensure the quality of its facilities and services.

Accommodation Establishments

• Apartment Hotel
• Mabuhay Accommodation (tourist inns, motels, pension houses, and bed and breakfast, among others)

Travel and Tour Services

• Travel and Tour Agency
• Travel Agency
• Tour Operator
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• Motorized Banca

Meetings, Incentives, Conventions and Exhibitions (MICE)

• MICE Organizer
• MICE Facility/ Venue

Adventure/ Sports and Ecotourism Facilities

Tourism Frontliner

Secondary Tourism Enterprises

These are facilities and services that may be related to tourism. Accreditation shall be voluntary for secondary tourism enterprises that follows minimum DOT standards.

Tourism-related Enterprises

• Tourism Training Center
• Target Shooting Range
• Department Store/ Shopping Mall/ Tourist Shop/ Specialty Shop
• Farm Tourism Camp
• Gallery/ Museum​
• Tourism Entertainment Complex
• Tourism Recreation Center
• Rest Area/ Restroom
• Surfing Camp​

Health and Wellness Services

• Ambulatory Clinic​
• Tertiary Hospital​
• Tourism Trainer
• Surfing Instructor

What are the Benefits and Incentives of Accreditation?

• Endorsement to COMELEC for exemption from liquor ban during election-related events*
• Endorsement to embassies and travel trade associations for utilization of establishment’s facilities and services.
• Being prioritized for DOT training programs
• Endorsement to international and domestic airports (if appropriate) for Issuance of Access Pass to Qualified Personnel**
• Qualification for Exemption from the United Vehicular Volume Reduction Program (UVVRP) of the Metro Manila Development Authority (MMDA).***
• Endorsement to Land Transportation Franchising and Regulatory Board (LTFRB) for Issuance of Tourist Transport Franchise.*** Technical / Security / Facilitation Support or Assistance

*For accommodation establishments and restaurants only. **For Tour Operators and Accommodation Establishments only. ***For Tourist Land Transport Vehicles only.

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Statistics for the 2023 & 2024 Philippines Tourism And Hotel market trends, created by Mordor Intelligence™ Industry Reports. Philippines Tourism And Hotel trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Philippines Tourism And Hotel Industry

Expanding airways network in philippines.

Air travel benefits the economy as a whole and consumers by enabling quick connectivity between places. The essential drivers of economic growth, the flows of people, capital, goods, and ideas, are made possible by these virtual bridges in the sky. During the busiest travel season, which runs from March to April, there is an extraordinary demand from tourists and expats for travel between the United Arab Emirates and popular places in the Philippines, such as Manila, Cebu, and Clark. Travel agencies in the industry claim that increased traffic from the United Arab Emirates resulted from the start of the super-peak tourist season during Holy Week/Easter. Additionally, carriers in the Philippines and the United Arab Emirates are working hard to capitalize on the seasonal demand.

By collaborating with Philippine Airlines, Emirates will be able to increase its presence in East Asia and create new channels for trade and tourism that will bring in more visitors. In the upcoming months, they want to grow the partnership by adding more points via Cebu and providing the partner airline's customers with more travel options to Emirates destinations in the Americas, Europe, and the Middle East.

Increase in Sales in the Food and Beverages Sector

In the Philippines, the food and beverage industry is a rapidly expanding sector that makes a substantial economic contribution. It encompasses a variety of companies, ranging from tiny food carts to large international enterprises. Jobs in the industry range from those for cooks and waiters to those in marketing and sales. One of the main drivers of the Philippine economy is the quickly expanding food and beverage sector, which accounts for roughly half of the country's manufacturing sector. Food production in the Philippines is among the highest in Asia, with the food processing industry. For the food and beverage business in particular, brand reputation is crucial due to rising brand consciousness, worries about food safety, and the comparatively high rate of counterfeiting in the nation.

The food and beverage business is growing rapidly as a result of the rise in restaurants, fast-food franchises, and meal delivery applications like Grub Hub, Caviar, and others that increase customer access. In addition, one of the main factors predicted to boost demand for the food and beverage market is consumers' growing desire for fresh, natural, and organic foods as a result of growing health consciousness.

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Hospitality Industry in the Philippines Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

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How does the Philippines envision tourism after the pandemic?

The Philippines | Tourism

Tourism played a central role in the Philippines’ economic development in the years leading to 2020, and an increasing emphasis on sustainability and responsibility underscores the sector’s importance for the years to come. While the popular island of Boracay has long drawn tourists, local authorities continue work to diversify destinations through the creation of tourism enterprise zones (TEZs). These endeavours, as well as those aimed at widening source markets, have laid the groundwork for an expanded yet more tailored offering.

Although the Covid-19 pandemic had a negative effect on the sector and the economy as a whole in 2020, policymakers and stakeholders are looking to adapt the sector’s offering and prioritise domestic tourism to support the national recovery. Enhanced health and safety measures have been implemented to align hotels, tourism sites and other services with the demands of the new normal. Meanwhile, a shift towards digitalisation and the use of technology to upskill the workforce are readying the sector for the future.

Structure & Oversight

The Department of Tourism (DOT) is the sector’s main regulator and also markets the Philippines as a destination via its overseas offices. While international arrivals were banned for much of 2020 due to Covid-19 restrictions, these branches are expected to be key to reviving international tourism once international restrictions are eased. Meanwhile, the Tourism Promotions Board (TPB) is responsible for designing promotions and marketing campaigns. In 2019 the TPB began new programmes to market alternative destinations such as Pampanga, Southern Cebu, Samar and the Bangsamoro Autonomous Region in Muslim Mindanao.

The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) – which operates under the auspices of the DOT – works to drive investment in designated areas through fiscal and non-fiscal incentives such as six-year income tax holidays. Created in 2009, it also develops, manages and supervises tourism infrastructure projects, as well as designing, regulating and supervising TEZs. There are five TEZs: Bucas Grande, a 167.7-ha area in Socorro, Surigao del Norte; the Amorita Resort in Panglao, Bohol; Aton Land and Leisure in Negros Occidental; the Magikland Cultural Zone inside Aton Land and Leisure; and the King Dome Stadium in Davao. TIEZA is also looking to develop tourism clusters, with different areas of the country focusing on specific segments. “Clark could be an appealing destination for business and shopping tourists from China and other Asian markets, while remote islands can be attractive to European and other western markets,” Pocholo Paragas, COO of TIEZA, told OBG. “It is not possible to base all tourism on ecotourism; there has to be variety, and clusters are a promising way of facilitating diversification,” he added.

The DOT’s National Tourism Development Plan (NTDP) 2016-22 is the framework that guides the industry’s development. It aims to encourage sustainable and socially responsible tourism. It identified 20 tourism clusters around the country, each including priority tourism development areas. It was designed with the aim of almost doubling tourism revenue from P2.1trn ($41.8bn) in 2015 to P3.9trn ($77.6bn) in 2022, while also increasing the number of inbound visitors from 5.4m to 12m. “It is important to prioritise some products and services in order to reach the NTDP’s goals of improving access, developing the product and protecting the environment,” Aileen Clemente, chairman and president of travel service provider Rajah Travel, told OBG. The roadmap also aims to boost the sector’s competitiveness on a global scale. In 2019 the Philippines ranked 75th out of 140 countries in the World Economic Forum’s travel and tourism competitiveness index, up from 79th in 2017. It performed best on price competitiveness (24th), natural resources (36th), and human resources and the labour market (37th).

Visitor arrivals had steadily increased since the implementation of the NTDP’s baseline of 5.4m in 2015. The country welcomed 6m visitors in 2016, above the plan’s target of 5.9m, with 6.6m arriving the following year, above the targeted 6.5m. However, in 2018 visitor arrivals fell short of the targeted 7.4m, totalling 7.1m. This was largely attributed to the closure of Boracay, one of the country’s most popular destinations, between April and October in order to rehabilitate the island from the effects of unchecked development, overburdened wastewater facilities and overpopulation. Upon reopening, measures were put in place to prevent future damage, including a maximum allowance of tourists and workers, and strict environmental accreditation procedures. Arrivals bounced back in 2019, surpassing the NTDP’s target of 8.2m to reach almost 8.3m – a 15.2% increase. The Philippines’ most popular destination for foreign arrivals in 2019 was the newly reopened Boracay, which hosted 1.6m foreign guests, according to the DOT; followed by Cebu, with 1.4m; and Davao del Sur, with 1.3m.

Covid-19 was an understandable setback for the NTDP’s goal of 9.2m foreign visitors in 2020. In late March the country closed its borders to most foreign arrivals, with exceptions for the spouses of citizens, diplomats, airline crew and holders of certain special long-term visas. In the first seven months of 2020 arrivals dropped by 73%, from 4.9m to 1.3m. Pandemic-related lockdowns also imposed restrictions on business operations and domestic travel, limiting the potential for local travellers to make up for international visitors. Tourism revenue similarly fell by 72% year-on-year (y-oy) to P81bn ($1.6bn) as a result. While the country is expected to remain closed to most foreigners through mid-2021, in October 2020 the Inter-Agency Task Force for the Management of Emerging Infectious Diseases ordered a technical working group to review the ban on foreign arrivals. Exemptions and other issues remained under discussion as of late 2020.

Looking ahead, a July 2020 survey of around 250 businesses in tourism-related segments by PwC found that 79% of respondents were optimistic about a recovery by mid-2021, while 21% expected a longer time frame. PwC similarly forecast that international arrivals would bounce back in the medium term, from an estimated 3.9m in 2020 to 6.2m by 2024.

Hotel Infrastructure

As visitor arrivals grew over the 2010-19 period, hotel infrastructure expanded by an average of 2000 hotel rooms per year – with around 2800 rooms completed in 2018. While real estate consultancy Colliers initially expected 6870 new hotel rooms to come on-line between 2020 and 2022, for an average of 2300 rooms per year, this projection was revised downwards in light of the pandemic. Nonetheless, even after hotel room construction slowed to 375 rooms in the first half of 2020, the agency noted in August that it still expected 1725 rooms to enter the market by the end of the year.

Hotel performance similarly reflected rising visitor numbers, with the average hotel occupancy rate countrywide reaching 72% in 2019, before falling to 50% in April and May 2020 amid Covid-19-related restrictions ; full-year occupancy is expected to drop to 30%. Continued air transport disruptions are likely to affect the segment for some time, with Colliers forecasting occupancy rates will hover below 50% through 2021. Meanwhile, average daily room rates in Metro Manila are expected to fall by 30.4% from $79 in the second half of 2019 to $55 by the end of 2020.

Spending, Employment & Investment

The rise in visitors in recent years saw higher expenditure, with tourism spend reaching P3.7trn ($73.6bn) in 2019, up 12.1% from P3.3trn ($65.6bn) in 2018. Domestic tourists contributed the majority, at P3.1trn ($61.7bn), while foreign visitors spent P548.8bn ($10.9bn). These totals were considerably higher than the previous year, up 10.7% and 23.2%, respectively. Tourism revenue also rose, reaching a record $9.3bn, up 20.8% from $7.7bn in 2018. Higher levels of spending and revenue had a trickle-down effect, increasing the number of jobs in the sector from 5.4m to 5.7m, with 14% of employed Filipinos working in tourism-related industries.

Investors, in turn, were attracted to the burgeoning market. Investment from the private and public sector reached P663.2bn ($13.2bn) in 2019 – P569.1bn ($11.3bn) of which came from private investment and P94.1bn ($1.9bn) from the government – according to figures from the Philippine Statistics Authority. Government spending on tourism grew by 23.5% over the year, highlighting the sector’s importance to economic development. Indeed, tourism contributed 12.7% to GDP in 2019, up from 12.3% in 2018 and 11.7% in 2017. Tourism direct gross value added reached P2.5trn ($49.7bn), 10.8% above 2018’s figure of P2.2trn ($43.8bn).

Source Markets

Even as the number of travellers to the Philippines rose, the composition of visitors remained relatively consistent. South Korea has been the top source market since 2010, with nearly 2m visiting in 2019, comprising 24% of all tourists. These figures were up from 1.6m visitors and 22.7% of all arrivals in 2018. Visitors from China – the second-largest source market – also rose, from 1.3m in 2018 to over 1.7m in 2019, increasing from 17.6% to 21.1% of the total. Other major source markets are the US, with 1.1m visitors and 12.9% of the total, Japan (683,000, 8.3%) and Taiwan (327,000, 4%). Of the top-12 markets by volume, China was the fastest growing in 2019, with visitor numbers expanding by 38.6%, followed by Taiwan (35%), South Korea (22.5%) and Germany (12.7%).

Domestic Tourism

With an eye on reopening and recovery, in early September 2020 the government announced a gradual resumption of domestic tourism starting in October. “The year 2021 will be about local tourism,” Bernadette Romulo Puyat, secretary of tourism, told local press. Under the plan, domestic travel bubbles were created within specified regions to facilitate travel while adhering to health mandates. The popular island of Boracay, however, was opened to all domestic tourists, with travellers required to show a negative Covid-19 PCR test result and a confirmed booking with an accredited establishment. The government also encouraged Filipinos to take staycations in local hotels in some low-risk areas starting in May, gradually expanding to areas under general community quarantine (GCQ) – characterised by a lifting of the stay-at-home order, the resumption of limited public transport and the reopening of some establishments – in October. In mid-October it was also announced that some hotels in areas under GCQ, or the more relaxed modified GCQ, would be permitted to return to 100% operational capacity – subject to DOT approval and based on hotel compliance with safety guidelines.

Indeed, the volume of local tourists could even offset the loss of foreign tourists, according to a September 2020 report from the Asian Development Bank (ADB): around 8m Filipinos travelled abroad in 2018, exceeding the 7.1m international arrivals. In a positive sign for tourism players, 77% of 12,000 respondents to a DOT poll released in June reported a willingness to travel domestically upon the easing of restrictions. Participants stated a preference for destinations closer to home, although Boracay, Siargao and Baguio were also named as top destinations. With regard to priority tourism activities, beach trips ranked highest, selected by 69% of respondents as a likely reason for travel, followed by road trips (54%) and staycations (41%).

Health & Safety

Integral to the DOT’s efforts to reopen to both domestic and international tourists is ensuring health and safety; however, some hard-hit players have voiced concerns about their ability to finance the necessary changes to enable social distancing and enhance sanitation. To facilitate these alterations, in June 2020 the DOT and the Board of Investments (BOI) announced the approval of incentives to help entities upgrade and modernise tourism facilities to ensure the health of customers. Included in these incentives was a BOI-led, three-year income tax holiday, with the list of eligible project types including barriers and deionisers in transport, as well as the renovation of rooms and the installation of partitions, automatic doors and elevators, thermal scanners and ventilation in hotels. The DOT also issued new health-related guidelines for accommodation facilities, with protocols launched in late May for activities such as guest handling; housekeeping; food and beverage services; kitchen sanitation and disinfection; transport; and the treatment of symptomatic guests. In June the DOT and the Department of Trade and Industry issued recommendations for restaurants, such as advisories for delivery services, sanitation, and employee and customer health. As the country moved to reopen domestic tourism, in September the DOT issued rules for beaches and other island operations. Under the guidelines, visitors must present bookings at an accredited establishment upon arrival, with walk-in guests prohibited unless they are part of an organised day tour or present a return ticket for the same day.

The DOT worked to align its health-related protocols with international standards. In late September 2020 the World Travel & Tourism Council (WTTC) gave the department the SafeTravels Stamp, certifying it complied with global health standards. This enabled the DOT to grant the stamp, in turn, to hotels, airlines, restaurants, tour operators, attractions and transport that follow the WTTC’s health and safety protocols.

Government Assistance

In response to Covid-19, President Rodrigo Duterte signed the first national stimulus package, the Bayanihan to Heal as One Act, into law in late March. The legislation, supported with P275bn ($5.5bn) of funding, granted the president emergency powers to address the pandemic.

The Bayanihan to Recover as One Act, or Bayanihan 2, was signed by President Duterte in mid-September 2020 and provided a further P165.5bn ($3.3bn) to aid recovery. This package specified a P10bn ($198.9m) allocation for the tourism industry and micro-, small and medium-sized enterprises (MSMEs). MSMEs comprise around 99.9% of all accommodation and food service businesses, and will therefore be instrumental in the recovery of the tourism sector. Some P6bn ($119.3m) of this sum was designated for a loan programme: DOT-accredited MSMEs and businesses licensed by local government units will be prioritised for no-collateral, interest-free loans, payable in three years with a one-year grace period. P3bn ($59.7m) of the remaining assistance was earmarked for financial aid for displaced and unemployed tourism workers, with the remaining P1bn ($19.9m) for road infrastructure improvements.

The DOT has altered its marketing strategies to reflect the new reality. In April 2020 it launched the Travel from Home campaign, encouraging potential travellers to explore destinations virtually – including virtual backgrounds of top travel spots for video calls. The following month, it launched the Wake Up in the Philippines campaign, featuring videos from all 16 regions, 360-degree underwater virtual tours and instructional cooking videos from well-known Filipino chefs, to continue the promotion of local destinations. These campaigns followed the relaunch of It’s More Fun in the Philippines in 2019, which crowdsourced photos and videos to promote new travel destinations and highlight the importance of sustainable tourism.

Like much of the economy, the pandemic prompted the tourism industry to digitalise. In addition to marketing and online expos embracing trends like virtual meetings, in September 2020 the DOT digitalised its accreditation system, which certifies that enterprises adhere to minimum standards and environmental regulations. The portal handles accreditation requests, contactless transactions and government services, and features real-time application status notifications and online payments. The gateway aims to ease the burden on MSMEs, which often lack the resources of larger companies. There were 10,042 accredited tourism enterprises by mid-September, marking a 32.4% increase y-o-y, according to the DOT.

Technology is also being used to upskill tourism workers to enable them to capitalise on post-pandemic opportunities. In April the DOT launched an online training programme to help stakeholders manage pandemic-related challenges, aiming to enhance the quality of tourist services by analysing previous performance and unlocking the full potential of human capital.

Technology has also been used in the meetings, incentives, conferences and exhibitions (MICE) segment. In late September 2020 the 19th Philippine Travel Exchange was held virtually, with 161 Filipino tourism service providers, 124 customers and 350 delegates in attendance. Participants from Africa, Europe and South America, as well as players from the region, signed into the online platform to generate P4.5m ($89,500) worth of future bookings. Highlighting the importance of the segment, in July the DOT announced it would allow MICE events in certain areas, at 50% capacity, with safety measures such as distanced seating, wide aisles and pre-packaged individual meals.

While 2020 proved to be a challenging year for tourism, the Philippines’ push to encourage domestic travel and staycations could provide a short-term cushion. Meanwhile, efforts to improve infrastructure and adjust to the new normal are readying hotels, tour operators and other service providers for the eventual return of international guests, expected in 2021.

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Seda Hotels wins as ‘Philippines Leading Hotel Group’ in the World Travel Awards and ‘Employer of Choice’ in HRD Awards Asia 2021

• BusinessMirror
• November 21, 2021
• 2 minute read

October 2021….Seda Hotels won as “Philippines’ Leading Hotel Group” for the eighth consecutive year in the World Travel Awards Asia, in addition to Seda Residences Makati bagging an independent trophy for “Philippines’ Leading Serviced Apartments.” Seda Hotels was also honored with two awards from HRD Awards Asia—“Employer of Choice” and “Best Health and Wellness Program.”

The World Travel Awards is considered “The Oscars of the travel and tourism industry,” celebrating excellence across all key sectors of the travel, tourism and hospitality industries.

Running for just two years, HRD Awards Asia has been recognized as one of the region’s leading independent awards for the HR profession. The “Employer of Choice” award recognizes the best organization to work for in Asia. Nominees are judged on leadership, engagement, communication and employee benefits. In its winning entry, Seda Hotels emphasized its determination to fulfill its obligations to all its stakeholders during the pandemic while remaining steadfast to its company values. The “Best in Health and Well-Being” Program award recognized Seda Hotels’ excellence and innovation in workplace health and well-being programs and initiatives.

Seda Hotels is owned and operated by AyalaLand Hotels and Resorts Corp. Its President and CEO, Javier Hernandez, says, “We dedicate these prestigious awards to all our employees who have kept our hotels operating seamlessly even under very challenging circumstances. The entire team remained focused and united throughout the pandemic, allowing the properties to rise to the challenge and emerge stronger and victorious despite the situation.”

Seda has 11 city hotels, resorts and serviced residences in 10 destinations throughout the Philippines. Its first hotel opened in late-2012 in BGC, Taguig and since then, its properties have received various recognitions for product and service excellence from various award-giving bodies, including online booking sites and restaurant guides, and pioneered innovations that resulted in elevating the customer experience. Seda hotels are located in Bacolod, Cagayan de Oro, Cebu, Iloilo, Nuvali, Laguna, Makati, Quezon City, El Nido, Palawan and BGC, Taguig.

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2020 Survey of Tourism Establishments in the Philippines (STEP) - Economy-Wide: Preliminary Results

This Special Release highlights the preliminary results of the 2020 Survey of Tourism Establishments in the Philippines (STEP) for tourism characteristic industries classified according to the 2016 Philippine Tourism Statistical Classification System (PTSCS).

Number of establishments in the tourism characteristic industries increased by 5.5 percent

The preliminary results of the 2020 Survey of Tourism Establishments in the Philippines (STEP) showed that a total of 40,815 establishments in the formal sector of the economy were engaged in tourism characteristic activities. This was higher by 5.5 percent compared with the 38,699 recorded tourism characteristic establishments in 2014. (Table A)

Among the tourism characteristic industries, food and beverage serving activities recorded the highest share to the total number of establishments at 24,584 or 60.2 percent. Education, health and personal service activities followed with 7,591 establishments (18.6%). On the third spot was accommodation for visitors with 4,070 establishments (10.0%). (Table 1 and Figure 1)

Food and beverage serving activities hired the highest number of workers

A total of 672,947 workers were engaged in tourism characteristic activities in 2020. This represents a decrease of -12.6 percent compared with the reported 770,202 workers in 2014. (Table A)

By tourism characteristic industry, food and beverage serving activities hired the highest number of workers of 275,715 or 41.0 percent of the total. This was followed by education, health and personal service activities with 214,675 workers or 31.9 percent.  Far behind was accommodation for visitors with 83,457 workers (12.4%). (Table 1 and Figure 2)

Figure 2. Distribution of Employment by Tourism Characteristic Industry: Philippines, 2020

Food and beverage serving activities reported the biggest share to revenue generated from tourists

The total revenue generated from tourists in 2020 amounted to PhP 360.96 billion. Compared with the total revenue generated from tourists in 2014, this reflects a decrease of -26.2 percent. (Table A)

The top three industries in terms of revenue generated from tourists in 2020 were as follows:

1. Food and beverage serving activities with PhP 188.45 billion (52.2%); 2. Air passenger transport with PhP 58.87 billion (16.3%); and                                               3. Accommodation for visitors with PhP 40.45 billion (11.2%). (Table 1 and Figure 3).

About 6.1 percent of the establishments planned to expand and 8.2 percent planned to renovate within the next five years

Of the total 40,815 tourism characteristic establishments registered in  2020, 6.1 percent  planned  to expand  their business operations within  the  next five years.  This was lower by 4.5 percentage points from the 2014 proportion of 10.6 percent.

Meanwhile, the proportion of establishments with plan to renovate within the next five years was 8.2 percent, lower by 7.7 percentage points from the  15.9 percent recorded in 2014. (Figure 4, Tables A and 1)

Listed below are the top tourism characteristic industries relative to their expansion and renovation plans within the next five years:

1. Food and beverage serving activities with 47.6 percent of the establishments with expansion plan and 41.0 percent with plan to renovate; 2. Education, health and personal service activities with 23.0 percent of the establishments with plan to expand and 21.9 percent with plan to renovate; and 3. Accommodation for visitors with 15.4 percent of the establishments with expansion plan and 20.5 percent with plan to renovate. (Table 1 and Figure 4)

Solid waste generated from tourism characteristic industries totaled to 67.55 million kilograms in 2020

More than 95.0 percent of the total solid waste disposed by tourism characteristics industries in 2020 were generated by three out of the 12 tourism characteristics industries. These three industries with highest solid waste disposal in 2020 were food and beverage serving activities with 49.5 percent share, followed by education, health and personal service activities, and accommodation for visitors with 25.4 percent and 20.2 percent share, respectively. (Table 1)

Air passenger transport recorded the highest proportion of establishments with DOT accreditation

About 27.0 percent of the total tourism characteristics establishments reported in 2020 were accredited by the Department of Tourism (DOT). This was higher by 3.1 percentage points than the reported proportion of 23.6 percent in 2014. (Table A)

DIVINA GRACIA L. DEL PRADO, Ph.D. (Assistant National Statistician) Officer-in-Charge, Deputy National Statistician Sectoral Statistics Office

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the 2020 Survey of Tourism Establishments in the Philippines (STEP).

The 2020 STEP is the third survey conducted on tourism establishments in the Philippines. It is a rider to the 2020 Annual Survey of Philippine Business and Industry (ASPBI). Data collected from the survey provide information on the availability of supply of tourism goods, products and services, which are valuable inputs in the compilation of the Philippine Tourism Satellite Account (PTSA).

The conduct of the 2020 STEP is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

II. Data Collection and Processing

The survey was conducted nationwide in 2021 with the year 2020 as the reference period of data, except for employment which is as of 15 November 2020.

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

• online questionnaire available at https://step.psa.gov.ph; • electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and • printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 STEP questionnaires in the provinces.

Data are presented by tourism characteristic industries classified according to the 2016 Philippine Tourism Statistical Classification System (PTSCS).

III. Taxonomy of Establishments

An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

Legal Organization refers to the legal form of the economic entity, which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, or cooperative.

Industrial Classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC, which was approved for adoption by government agencies and instrumentalities through PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment as of the time of visit during the latest Updating of the List of Establishments.

T otal Employment (TE) refers to the total number of persons who work in or for the establishment. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Also included are persons on short-term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of 31 December 2020 was used for the 2020 STEP.

IV. Scope and Coverage

The 2020 STEP was a nationwide undertaking and covered tourism characteristic industries classified according to the 2016 Philippine Tourism Statistical Classification System (PTSCS) as defined in Table 1.

Table 1. Scope and Coverage of the 2020 STEP

The survey was confined to the formal sector of the economy, which consists of the following:

• Corporations and partnership • Cooperatives and foundations • Single proprietorship with employment of 10 and over; and • Single proprietorships with branches

Hence, the 2020 STEP covered only the following economic units:

All establishments with total employment (TE) of 10 or more, and;

• All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

V. Sampling Design

The 2020 STEP uses stratified systematic sampling design with 5-digit PSIC serving as industry strata (industry domain) and the employment size as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata , and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases the precision of “overall” survey estimates.

The geographic domain of the 2020 STEP is at the national level. The industry domain/stratum is 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2020 STEP is the establishment.

Sampling Frame of Establishments

The frame for the 2020 STEP was the list of samples of the 2020 ASPBI, which was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021.   This is to ensure that the sample of STEP is a sample of ASPBI as well.

Estimation Procedure

By MSME Classification

a. Total Estimate by MSME Classification

     m    denotes the employment stratum based on MSME classification        j   1, 2, 3,…, nm establishments   X mj    value of the j th establishment in the employment stratum based on MSME classification at the national level W mj    weight of the j th establishment in the employment stratum based on MSME classification at the national level

N m   total number of establishments in the employment stratum based on MSME classification at the national level n m   number of sample establishments in the employment stratum based on MSME classification at the national level

By Industry Domain

a. Non-certainty stratum (All other establishments not classified as MICE)

    g    denotes the non-certainty stratum for an industry domain     j    1, 2, 3,…, ng establishments X gj      value of the jth establishment in the non-certainty employment stratum for an industry domain at the national level W gj    weight of the jth establishment in the non-certainty employment stratum for an industry domain at the national level

N g   total number of establishments in the non-certainty employment stratum for an industry domain at the national level n g   number of sample establishments in the non-certainty employment stratum for an industry domain at the national level

b. Certainty stratum (Establishments under Meetings, Incentives, Conferences and Exhibitions (MICE) as identified by the Department of Tourism (DOT)

The estimate of the total of a characteristic ( X c ) for the certainty stratum in an industry domain at the national level is

    c  denotes the certainty stratum     j  1, 2, 3, …, hc establishments X cj   value of the jth establishment in the certainty employment stratum in an industry domain at the national level h c   number of establishments in the certainty employment stratum industry domain within each region

c. Total Estimate by MSME and Industry Domain

where   d denotes the MSME or industry domain

Weight Adjustment Factor for Non-Response

To account for non-response and non-eligible respondents of the survey, the base weight was multiplied with the adjustment factor for each of the sampling unit. The computation of the weights is as follows.

a. Base Weight

W hj   = weight of the j th establishment in the h th stratum N h     = total no. of establishments belonging to the h th stratum n h      = total no. of sample establishments in the h th stratum

a. Adjustment Factor

To take into account for the non-responding sample establishments and non-eligible respondents, the adjustment factor by region and industry domain is as follows:

A s    = adjustment factor for industry domain s X 1i   = eligibility status of the ith establishment (1 if eligible, 0  otherwise) X 2i   = responding status of the ith establishment (1 if responding, 0 otherwise)

b. Final Weights

The final weights is the product of the base weight and adjustment factor.  That is,

VI. Response Rate

Response rate for 2020 STEP was 92.7 percent (9,132 out of 9,849 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out of scope establishments.

Of the total respondents, 226 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 were not included in the generation of statistical tables.

VII. Concepts and Definitions of Terms

Accreditation refers to a certification issued by the Department of Tourism, which recognizes the holder to having complied with its minimum standards in the operation of the establishment concerned.

Bed capacity is the maximum number of beds, which can be installed or set up in an assisted living facility at any given time for use of residents.

Booking office is a room where tickets are sold and booked, especially in a theater or station.

Carrier refers to a transportation company, such as an airline, motor coach, cruise line, or railroad, which carries passengers and/or cargo carrying capacity: the amount of tourism a destination can handle.

Carrying capacity is the amount of visitor activity that a site or destination can sustain.

Commission refers to the percentage of selling price paid to a retailer by a supplier. In the travel industry, travel agents receive commissions for selling tour packages or other services.

Computer reservation systems (CRS) are used for inventory management by airlines, hotels and other facilities. CRS can allow direct access through terminals for intermediaries to check availability, make reservations and print tickets.

Composting refers to the controlled decomposition of organic matter by micro-organisms, mainly bacteria and fungi, into a humus-like product.

Contractual employee refers to one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal.

Disposal refers to the discharge, deposit, dumping, spilling, leaking or placing of any solid waste into or in any land.

Domestic tourism refers to tourism of resident visitors within the economic territory of the country of reference.

Electronic payment (e.g. Credit card, ATM) refers to money   paid electronically. Also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency.

Inbound tourism refers to tourism of non-resident visitors within the economic territory of the country of reference.

Non-supervisory employees include any employee who does not have authority to hire, discharge, promote, transfer, suspend, layoff, or discipline other employees or to effectively recommend such action, or who is not in a confidential relationship with management. Determination of non-supervisory and confidential status shall be made by the manager.

Outbound tourism refers to tourism of resident visitors outside the economic territory of the country of reference.

Regular or permanent employment is when an employee performs activities that are usually necessary or desirable in the usual business or trade of the employer.

Seasonal workers are individuals who were hired for a specific period to augment the regular employees due to high demand of clients and/or increased work demands during peak months.

Solid waste includes all discarded household, commercial waste, non-hazardous institutional, ports/harbour and industrial waste, street sweepings, construction debris, agriculture waste, and other non-hazardous/non-toxic solid waste.

Supervisory employee refers to an employee who, in the interest of the employer, effectively recommends managerial actions if the exercise of such authority is not merely routinely or clerical in nature but requires the use of independent judgement,

Tourism refers to activities of foreign and domestic visitors traveling to and staying in places outside their usual environment for not more than one year for leisure, business and other purposes not related to employment with pay from within the place visited. Traveling for the purpose of conducting businesses, for education and training, etc., can also be part of tourism. Both foreign visitors (country of residence is other than the Philippines) and domestic visitors (Philippine residents) are covered in the survey.

Tourist/Visitor refers to a person traveling to a place other than that of his/her usual environment for less than 12 months and whose main purpose of the trip is other than the exercise of an activity remunerated within the place visited.

Tourism activities encompass all that foreign and domestic visitors do for a trip or while on a trip. It is not restricted to what could be considered as “typical” tourism activities such as sightseeing, sunbathing, visiting site, etc. From an economic point of view, the basic activity of foreign and domestic visitors is consumption, that is, the acquisition of consumption goods and services to satisfy individual or collective needs and wants.

Worker displacement is defined as the separation of workers to their jobs or termination of the employment relationship that is involuntary on the part of the worker, with a permanent effect without assurance of re-employment to the same employer or industry, and that is not caused by the worker’s job performance, work behavior and attitude, or work relations and other factors that are not attributable to the characteristics of the individual worker.

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Tourism Industry in the Philippines: Part II

Op-ed by Bob Shead

In the second part of this article, I will discuss the various sectors of the Philippine tourism industry. The first part of the article, covering the opportunities and incentives for foreign investors in the tourism industry, can be read here .

The main sectors of tourism in the Philippines are:

Casino and Gambling

The gaming/casino industry in the Philippines is becoming more developed, on the back of growing supply and heightened competition, a recent independent report stated.   The Philippine Amusement and Gaming Corporation (PAGCOR), the gaming industry regulator, has said that the casino industry continues to grow. This has led to an 18.1 percent increase in PAGCOR’s net income in 2016 to P4.46 billion (US$89 million) from gaming operations.  The total gaming revenues in 2016 increased by 22.9 percent to P53.31 billion (US$1.06 billion).  PAGCOR also owns and operates 13 casinos in the Philippines, including three in Manila.

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A recent report by Fitch states, “We expect high single-digit gross gaming revenues in 2017 driven by the opening of the US$2.4 billion Okada Manila Resort and the continued economic growth in the Philippines. Longer term, competition from Macau and other Asia Pacific countries will restrain growth.”   It should also be noted that junket sourced VIP business, makes up about one third of gross gaming revenues at private casinos. However, Fitch also noted that while the initial results of the first three casinos operating under the licenses granted by PAGCOR are encouraging, relative to the investments made, this may not be the case in the longer term.

The current major private casinos, include Travellers International Hotel Group, a joint venture between Genting Hong Kong and a local conglomerate Alliance Global;  Bloomberry Resorts Corporation, owned by Enrique Razon; City of Dreams Manila operated by Melco Resorts Leisure (PHP) Corporation, a subsidiary of Melco Resorts and Entertainment (Philippines) Corporation; and Tiger Resorts (still under construction) owned by Kazuo Okada.

There is much speculation at present as to whether the interest in the Philippine gaming industry by Chinese nationals will continue to improve.  The current Philippine Government has promoted stronger ties with China, as more tourists from the Chinese Mainland come to the Philippines to play.  However, the Chinese Government has, in the past couple of years, also clamped down on Chinese nationals taking their funds outside of China.

It is recognised that gaming companies, particularly casinos, stand to benefit the most from stronger ties with China as the growing number of tourists from China should boost gaming revenues.  In the past four years, the number of tourists coming from China to the Philippines increased by 19.2 percent, and during the first eight months of 2016, Chinese tourist arrivals jumped 50.3 percent to 484,567.  China is now the Philippines’ third largest visitor market, accounting for 12 percent of total tourist arrivals during the first eight months of 2016.

Cruise Lines

The Philippines is in the process of becoming one of Asia’s top international cruise destinations, and there is an increasing interest from Cruise Lines to boost infrastructure development in order to support international cruise ships. To date, Philippine ports have hosted cruise ships from Royal Caribbean Cruise Ltd (RCCL) and Star Cruises amongst other smaller expedition cruise companies.  International cruise calls at ports in the Philippines grew annually at 27.8 percent from 2014 to 2016, and now expect to host approximately a hundred port calls in 2017, with around 122,000 passengers.  The Department of Tourism’s National Cruise Tourism Strategic Plan is targeting 300 port calls by 2020.

The Department of Tourism (DOT) has said that cruise tourism is one of its priorities for 2017, and the agency plans to create more ports that will be attractive to, and able to meet the standards of, international cruise ships. Manila, Puerto Princesa in Palawan, Boracay, and Davao City in Mindanao, have been identified as cruise ship destinations.  Included in the DOT’s plans is the construction of a cruise port with a terminal in Manila that will be able to host international cruise liners carrying over 3,000 passengers.

The DOT, along with the Province of Aklan recently signed an agreement with RCCL that allows Aklan Province to work with RCCL, who wish to develop a partnership to support the construction of a purpose built terminal in Caticlan, adjoining Boracay, the Philippines’ most popular beach resort. The Japanese cruise company JCL will now include the Philippines as a regular port of call, the DOT recently announced following an investment-promotion visit to Japan by the Philippines Secretary for Tourism Wanda Teo.

Cruise tourism is one of the nine product portfolios identified in the DOT’s National Tourism Development Plan (NTDP) which aims to enhance the country’s competitiveness as a tourist destination in the Asia-Pacific region. The promotion of cruises was further elaborated in the National Cruise Tourism Strategy, completed by the DOT last year, and the ASEAN Cruise Brand, an intra-regional and multi-country initiative.

Island Resorts

The Philippines is made up of 7,107 islands (only 2000 are inhabited); each island offers a rich biodiversity ranging from tropical rain forests, mangroves, and coral reefs to mountain ranges, world class beaches, beautiful islands and a diverse range of flora and fauna.   There is increasing interest in investments in island resorts.  Coron Islands in Palawan is a good example of recent environment friendly resort development. 

General Tourism/Business Visits and Hotels

The hotel industry in the Philippines is expected to see a continued growth over the next five years, although a decline in hotel occupancy rates in the first half is forecasted.  Hotel occupancy rates in Manila slipped to an average of 68 percent in the first half of 2016, lower than occupancy rates the previous year, however still better than in other ASEAN countries.  Hotel chains continue to pursue their respective expansion projects.  The Filinvest Group is increasing its hotel portfolio in both Alabang and Cebu, plus the Filinvest Group’s Chroma Hospitality, that focusses on hotel management services, is investing P2.6 billion (US$52 million)  for two Canvas brands – a 228 room Canvas Hotel in Cubao, and a 185 room Canvas Hotel in Mactan.  Additionally, Filinvest is introducing a Crimson Hotel in Boracay, Quest Hotels in Dumaguete and Tagaytay.  It is planned that these hotels will open between 2018 and 2019.  Chroma Hospitality is also looking to expand in Pasig, Quezon City, Batangas, Cavite, Laoag, Baguio, Cebu and Davao.

Another leading investor, Ayala Land plans to launch the Seda hotel chain across the Philippines over the next five years.  This will be in addition to Seda Hotels currently located in Bonifacio Global City, Cagayan de Oro City, Davao City and Laguna.  Ayala Land are planning 2,000 new hotel rooms by 2018, and 6,000 hotel rooms by 2020. Red Planet, formerly Tune Hotel, is also planning to expand in the Philippines over the next five years.  The rebranded hotel currently has 10 hotels, and plans to have 20 hotels in the Philippines over the next five years.

Along with the anticipated 7 million foreign tourists this year, there are approximately 50 million domestic tourists.   Obviously, the continuing improvements in infrastructure such as airports, roads and rail transport systems is seen as the key that can unlock the Philippines potential for tourism growth.  Research has also found that tourists constitute 79 percent of total hotel guests outside Metro Manila.

Yachting and Sailing

Tourism in the Philippines has grown steadily during the last few years.  There are increasing numbers of sailing enthusiasts looking for sailing and yachting experience amongst the Philippines archipelago.  The only way to get to many of the Philippines islands is by sea, and many of the islands are inhabited.   Palawan is one of the favourite destinations for those yacht and sailing enthusiasts.  The main ports where charter boats can be rented, are Puerto Galera, Boracay, Coron, Puerto Princesa, and Cebu.

The industry of yacht chartering in the Philippines is still in early stages.  The yachting and sailing fleets available for rent are mainly composed of privately owned boats, and skippered by the owners who want to share the sailing experience in the Philippines. The priority destinations tend to be Boracay, Puerto Galera, Palawan, Subic Bay, Cebu and Bohol, with other destinations becoming popular.

More generally, Southeast Asia is fast emerging as the yachting hub of Asia, with industry watchers highlighting the potential in markets like Thailand and Indonesia.  However, there is not a large yachting culture in Asia, despite the region’s growing wealthy population.   Currently only 4.3 percent of the world’s super yachts are Asia-based, despite the region boasting a large number of high net worth individuals.  For general information, a super yacht is typically at least 25-30 meters in length.

The countries that have the highest potential in yacht growth are Thailand, Indonesia, the Philippines and Malaysia.  This is due to the natural beauty of the islands, existing yacht clubs, a viable and strong tourism industry, as well as a strong expat community who have a history and support for yachting.

Scuba Diving

The Philippines have the most species in the least space of anywhere in the planet. Out of the planet’s 500 coral species, more than 400 are in the Philippines.  The Philippines is at the center of the world’s Coral Triangle, and host to a very rich marine biodiversity, the whole Philippine archipelago can be considered a dive location.

There are over 100 identified diving spots across the Philippine islands that are rich in corals and marine species.  The Philippines is currently working at tapping a larger share of the world’s diving market.  The current figures for foreign dive tourists in the Philippines is expected to be 200,000 in 2017. Previous figures released by DOT were 59,572 in 2010, 89,911 in 2011 and 126,200 in 2012.  The biggest markets were South Korea, USA and Germany.

Medical Tourism

Medical tourism in Philippines is a rapidly growing market.  In 2015, the Philippines was ranked eighth among the top medical tourism destinations globally, according to the International Healthcare Research Center and the Medical Tourism Association (MTA).  Patients arriving in the Philippines for medical tourism, come mainly from East Asia (China, Japan, Korea, Taiwan), USA, Australia, and increasingly from Europe.

The Philippine Government’ Departments of Tourism (DOT), Health (DOH), Trade and Industry – Board of Investments (DTI–BOI) have combined for a joint programme to promote Philippine medical tourism. This informal partnership has resulted in a programme that identified five major priorities in the medical travel sector – tourists who come for wellness services; medical tourists, who need low-acuity medical procedures;  medical travelers, who need more complex procedures;  international patients, including overseas Filipino workers, including retirees; accompanying guests, and immediate next of kin.

To date, medical tourism in the Philippines caters to approximately 80,000 to 250,000 patients or clients annually.  Currently, 62 hospitals around the country are now internationally accredited, and to date, five Philippine medical institutions, the Asian Hospital and Medical Center (Muntinlupa City), Makati Medical Center (Makati City), St. Luke’s Medical Center (Bonifacio Global City and Quezon City), and The Medical City (Pasig City) have been certified for international medical care and treatment.

A 2014 study reported that the Philippine medical tourism industry generated US$145 million in 2014. Among the factors cited in the survey included competitive price for health and wellness services, high standards of healthcare provided in internationally accredited hospitals and English speaking healthcare professionals. The Philippines proximity to major international hubs, along with good tourism destinations for recovery periods were also factors.

Negative Aspects of the Philippine Tourism Industry

There is, of course, some issues concerning tourism in the Philippines, and these need to be discussed further.  These mainly concern infrastructure, personal security and safety hazards.  However, much is being done to improve these issues, and tourists must realise the potential problems before they chose to visit the Philippines.

Although the recent Resorts World Manila tragic incident, that left at least 38 dead was very disturbing, and opened up many questions concerning security and safety, it is predicted that this is not likely to affect general investor sentiment although it may well affect tourism in general. The Philippine Travel Agencies Association (PTAA)has acknowledged that tourist arrivals would likely take a short term hit for this year, particularly also because of the ongoing crisis in Marawi City, Mindanao, which has led to a Presidential declaration of Martial Law in Mindanao. 

This has meant that security in general has been stepped up, especially in public places like shopping malls, resorts and hotels.  It has also been recognised by organisations such as the Makati Business Club, the Philippine Chamber of Commerce and Industry, the American and European Chambers of Commerce that a better Crisis Management system is necessary and important.  Although the Resorts World incident has been recognised as an isolated incident, it is recognized that, also in the light of the Marawi invasion that Crisis Management and security procedures must be improved, and that tourists will continue to feel confident to travel to the Philippines.  Financially, all the casinos lost revenue in the days following the Resorts World attack and resulting tragic loss of lives.

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However, at the end of the day, the Philippine tourism investment industry is increasing rapidly, despite the various and sometimes overplayed downsides.  It is still a destination that to some extent is off the main radar of ASEAN countries, compared to Thailand, Malaysia and Singapore. However, this on the other hand makes it a more exotic destination for dedicated travelers and those who would like to get off the beaten track.  Manila as a hub for the casino and gaming industry will increase in size, and stands a good chance of replacing Macao as the casino hub of Asia.

The hotel and resort industry in the Philippines is rapidly expanding – and of course, linked to the casino and gaming industry.  This is especially true in the luxury 5 star hotel sector and luxury hotels continue to appear on the skyline in Manila.  I will in the future cover the different aspects of the tourism industry in more detail, including the retirement programme.  The tourism market in the Philippines is immense and diverse and will continue to remain so.

In this issue of ASEAN Briefing magazine, we provide an introduction to the Philippines as well as analyze the various market entry options available for investors interested in expanding to the island nation. We also discuss the step-by-step process for setting up a business entity in the Philippines, highlighting the various statutory requirements for overseas investors. Finally, we explore the potential for Singapore to serve as a viable base to administer investors’ Philippine operations.

• Previous Article Tourism Industry in the Philippines: Part I
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This Giant Hospitality Group Is Betting Big on Philippine Tourism

O ne of the world’s biggest names in hospitality is betting on the local tourism industry and is set to expand its footprint in the Philippines. Marriott International said two new properties are expected to open by the first quarter of 2025: AC Hotel Ortigas, with 150 keys, and Fairfield by Marriott Mahi in Mactan, with 196 keys. 

The American hospitality chain currently has 10 properties located in six destinations in the country, including its flagship Manila Marriott Hotel at Newport City in Pasay. The others are Courtyard by Marriott in Iloilo, Sheraton Manila Bay, Sheraton Manila Hotel, Clark Marriott, Four Points by Sheraton in Boracay and in Puerto Princesa, The Westin Manila, Sheraton Cebu Mactan Resort, and Fairfield by Marriott Cebu (Mandaue).

Marriott has signed different management agreements with several owners and developers, including Megaworld Corp. for Marriott properties in Newport City in Pasay, AppleOne Properties in Cebu, Hann Development in New Clark City (NCC) in Tarlac, Robinsons Hotels and Resorts Corp. in the Ortigas central business district, and others.

Megaworld Hotels & Resorts Joins Forces with Trip.com to Boost Global Presence

SM Hotels Poised for Major Expansion in These Areas

Other projects across the country are in various stages of development, including in Davao, NCC in Tarlac, Palawan, and Bohol.

"We see the growth, we see the potential, we see the untapped markets, and we are connecting that with local partners that are interested in joining with us," said Bruce Winton, Marriott International’s multi-property vice president for the Philippines. 

Winton’s "positive" outlook for Marriott’s properties aligns with the general recovery of tourist arrivals in the country. The Department of Tourism (DOT) has projected inbound arrivals to reach 7.7 million this year, 41.3-percent up from the 5.45 million recorded last year. 

"The intent and the desire to grow the tourism industry as a main pillar of the Philippine economy…and DOT’s projection of 12 million arrivals by 2028 — I don’t know how many markets around Asia Pacific  are projecting a 50-percent growth in tourism over the next three years—so that’s definitely got Marriott International’s attention," Winton said.

The executive said Marriott’s own properties, particularly in Metro Manila, have already exceeded pre-pandemic records, with overall revenue per average room (RevPAR) "growing by 20 percent from 2019" thanks to the return of the corporate travel, and normalization of leisure travel.

During a news briefing to present the Marriott Group’s plans in the country, Winton also highlighted the company’s sustainability initiatives. These include tapping local farmers to supply fresh produce and establishing hydrophonics gardens onsite for vegetables and herbs. The group is also instituting a general reduction in energy-consumption program, a renewable energy project for the properties in Newport, which consists of the construction of 8,000 solar panels in the integrated resort, 85 percent of which is already complete.

The company has also started a portioning initiative in its own cafeteria that serves 8,000 meals a day that Winton estimates has reduced food waste by as much as 70 percent.

"We also collect rainwater, tapped underground fresh spring for our freshwater, and have chiller optimization, across the country," he noted. "If you’re a successful company in 2024, sustainability is the heart of everything you do. And I assure you that’s the case for Marriott," said Winton.

The Department of Tourism has projected inbound arrivals to reach 7.7 million this year, which is up 41.3 percent from the 5.45 million recorded last year.

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The State of the Hospitality Industry in the Philippines in 2020

The Philippines’ hospitality industry is currently weathering a blow from COVID-19. As of October 2019, tourism in the country is a Php 2.2-trillion-strong industry and generates more than 12% of the GDP. According to the Department of Tourism (DOT) Secretary Bernadette Romulo-Puyat, the industry also employs about 5.4 million people under various sectors such as accommodations and transportation.

By May 2020, the numbers have changed drastically. Tourist arrivals in the Philippines have declined by more than 50%, from 2.8 million to just above 1 million. Secretary Puyat also said that the revenue from tourist arrivals have decreased by 55% from January to April of this year. Worldwide, tourist travels have dropped by nearly 60%.

How the Biggest Luxury Resorts and Casinos Are Faring

The same fate has also struck the country’s biggest luxury resorts. The most prominent among them include multi-billion-dollar resorts City Of Dreams, Solaire, and Okada in Paranaque and Resorts World in Pasay. For perspective, luxury resort and casino Okada, which opened only last December 2016, announced in May 2020 that they will be laying off more than 1,000 of its staff. And with these establishments also housing casinos as part of their entertainment options, this has undoubtedly also affected the local casino industry.

If you want to learn more about the status of the casino industry in the Philippines. It reviews the top casino sites for Filipinos and monitors the changes in the local laws. The bottom line, however, is that resort-casinos are currently experiencing losses. They are also trying to capitalize on the possibilities of online gaming.

Indeed, just as various industries and individuals have turned to online work arrangement and income opportunities, the casino industry has also turned to digital set-ups. The outlook is hopeful; in the third quarter of 2019, e-gaming parlors and other online gaming outfits generated about US$ 13 million in gross gaming revenue or GGR. This is a 13% increase from the same period in 2018.

Meanwhile, another form of legal gambling in the country is set to reopen. The Philippine Charity Sweepstakes Office (PCSO) resumed lotto games last August 4, which is certainly good news for lotto outlet operators .

The New Normal for the Hospitality Industry

There are plenty of viable business opportunities during the pandemic, most of which are predominantly online. While not completely possible for the hospitality industries, there are certain aspects that can be more smoothly transitioned to digital platforms. For example, museums can offer virtual tours to minimize physical contact. It can even be an avenue for expansion since local museums can easily attract customers from out of town or even out of the country.

The DOT has also issued tourism standards, which will be in place until a vaccine for COVID-19 has been developed. The protocols, which include the following, are based on information provided by the Department of Health and the World Health Organization:

• Maximum of double occupancy for hotels.
• 50% occupancy in terms of dining operations.
• Regular sanitation/disinfection of hotels, resorts, tourist transports, meeting and exhibit venues, spas, and similar tourism-related establishments.
• Proper PPE or personal protective equipment and sanitation/disinfection devices for tourism workers, provided by the establishments.
• No buffets are allowed in hotels and restaurants.
• Strict capacity limits for hotels, restaurants, parks, meetings and conventions, transport services, and the like.
• Contactless check-ins for hotels.

In addition to these above protocols, the DOT is also set to develop online systems so that they can continue to conduct tourism-related transactions such as accreditations and training. Moreover, there will also be regular inspections of all tourism-related establishments.

The Future of Tourism Post-COVID

According to DOT Undersecretary for Tourism Regulation, Coordination, and Resource Generation Arturo P. Boncato Jr, there are already about 1,000 hotels that have resumed operations as of May 2020. They account for more than 60,000 rooms, although most of these are allocated for OFWs and employees in essential industries. Boncato also said that, under general community quarantine, the hotel industry is also allowed to fully reopen following the guidelines mentioned above.

Meanwhile, last April 2020, Horwath HTL Singapore and Tajara Hospitality published a sentiment survey among 49 hotels and 23 resorts in the Philippines. Horwath HTL is the world’s largest hospitality consulting brand, while Tajara is a local hospitality consulting and development company.

The respondents of the survey are highly optimistic regarding domestic corporate demand. They are also confident that domestic leisure travel will recover positively, even as they noted that foreign leisure travel might not experience the same improvements. In the same vein, the respondents felt that domestic demand for MICE or meetings, incentives, conventions, exhibits will also have a healthy recovery.

When it comes to flights, the Air Carriers Association of the Philippines has conducted studies on what kinds of measures to adopt in the new normal. Some of the suggestions include not making the middle seats unavailable to passengers and imposing a 70% capacity on all planes. PPEs are also required for the flight crew, while passengers may be required to wear both masks and face shields.

There are a lot of factors that need to be fulfilled before the hospitality industry can resume full operations and start on the road to recovery. These include the reduction of local transmission of the virus, as well as the development and timely acquisition of a vaccine. Until then, major players in the hospitality industry can only wait with bated breath.

Glen Dimaandal is the founder and CEO of the GDI SEO Company, a search marketing agency based in the Philippines. He is a former SEO Manager at Fortune 500 corporations and is now a full-time entrepreneur.

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Vision and Mission

By 2028, TIEZA is the recognized tourism development agency contributing to inclusive and sustainable economic growth in the Philippines.

To contribute to national tourism development goals and showcase Philippine culture by designating, supervising, and regulating sustainable Tourism Enterprise Zones; undertaking viable Tourism Infrastructure Projects; and managing assets.

*On 09 December 2021, the TIEZA Board of Directors reviewed and approved the TIEZA Mission and Vision which are included in the submission of the TIEZA Revised 2022 Performance Evaluation Scorecard documents.

Quality Policy

We at TIEZA, in the pursuit of our mandate and to align our organizational objectives with national goals, are fully committed to:

1) Implement quality infrastructure and development projects to spur inclusive tourism growth; 2) Continually improve systems, processes and prudent management of travel tax, assets, tourism enterprise zones, infrastructure projects and other financial resources for the satisfaction of our stakeholders; address risk and maximize opportunities; 3) Enhance competencies, provide conducive environment for safe and productive work, and support employees engagement in quality management; 4) Comply with public policies and all statutory and regulatory requirements, and the requisites of the ISO 9001 Standards of Quality Management Systems; and 5) Review periodically the suitability of our quality policy to make it adaptive and resilient through the changing times.

We affirm to adopt this policy as we uphold our corporate values of excellence, integrity and innovation.

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Discover Heartfelt Hospitality in the Philippines

Posted in news april 23, 2019 •.

Discovery Hospitality was launched in 2011 as “The Discovery Leisure Company, Inc.” Forward progress ever since. We’re a (proudly) home-grown Filipino hospitality group. And one of the Philippines’ best-loved brands. Our service style wins hearts and minds. And awards.

HEARTFELT HOSPITALITY IN THE PHILIPPINES’ MOST EXCITING DESTINATIONS

Discovery Hospitality is a (proudly) home-grown Filipino hospitality group, managing the Philippines’ best-loved brands. We have emerged as pioneers in the Philippine hospitality industry – owning and operating a diverse and vibrant collection of properties, in the Philippines’ most celebrated destinations.

DISCOVER OUR LOCATIONS  

We turn prime locations into dream destinations. Our ever-growing portfolio features some of the most exciting properties anywhere in the Philippines:

• Discovery Suites – all-suite serviced residence in Ortigas Business District
• Discovery Shores Boracay – multi-award-winning resort on White Beach
• Club Paradise Palawan – award-winning island resort in Palawan
• Discovery Primea – multi-award-winning luxury hotel in the heart of Makati
• Manami Resort – the first Signature Collection property and crown jewel of Negros Island
• Discovery Samal – Davao’s newest 5 star luxury resort with biggest convention facilities in Mindanao

HOSPITALITY WITH HEART

We have a uniquely warm service style that wins hearts and minds. And awards. Everything we do is defined by thoughtful gestures and the highest standards. Every stay is steeped in modern comforts and remarkable experiences.

We also uplift every locale where we have properties through our advocacy work. Protecting the environment and providing local communities with invaluable education and employment.

A FUTURE-FACING BRAND  

Discovery Hospitality is an innovative pioneer – forging iconic, forward-thinking brands and remarkable experiences that build superior value and leave a profound impact on our customers.

Confident in the growing Filipino hospitality industry, we are excited about what the future holds as we leverage our brand equity and trust for further growth in hotel management and expansion.

We’re passionate about the wonders of travel and the importance of delivering authentic experiences that are true to the locale. We strive to build hotel brands that inspire the modern traveler. From the chic urban luxury of Discovery Primea to the timeless icon resort Discovery Shores Boracay. Each with its own irresistible character. All underpinned by genuine Filipino warmth.

Posted in News April 23, 2019 • By Admin

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DATA PRIVACY SEAL

“ COZY AND HOMEY. This was our 6th or 7th stay and the staff is still very accommodating. The location is strategic being right beside convenience stores, mall, and restaurants… I can say we plan to make it a habit to greet the new year here.”

feetdraggerdoctor, Tripadvisor

“ OUTSTANDING AND FRIENDLY SERVICE. The service at the facility is outstanding from arrival to departure. Any thing you ask for is done promptly and with a smile. The gym is pretty good with all the requirements of a hotel gym, with sauna, personal trainers and group classes.”

gdogs2, Tripadvisor

“ FABULOUS LOCATION AND SUPERB STAFF. The suites themselves are excellent with modern self catering facilities, fabulous bathrooms, comfy beds and exceptionally clean. The location is great for the CBD and restaurants and malls are all close by.”

AdrianM853, Tripadvisor

“ COMFORTABLE HOME AWAY FROM HOME. I stayed in the Discovery suites hotel for 7 weeks in March and April while in Manila for work. And it was very easy for me to start calling it home after a few days! The location is great – podium mall across the street, Starbucks next door and across the street, megamall and Robinson’s galleria only a couple of blocks away.”

pconneen, Tripadvisor

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Tourism Accreditation in the Philippines: Government and Private Sector Perspectives

• First Online: 28 September 2022

Cite this chapter

• Reil Cruz 5  

Part of the book series: Perspectives on Asian Tourism ((PAT))

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This chapter describes the status of the mandatory accreditation system for primary tourism enterprises (PTEs) in the Philippines and identifies issues surrounding its implementation. A multi-method case study was utilized, including content analysis of online news articles, and focus group discussion data. Results indicated that while accreditation rates have increased, adoption has generally been lacking across the tourism sub-sectors. In addition, the imposition of additional requirements, inconsistent enforcement, DOT’s expansion of the scope of accredited establishments, high cost of compliance, inability of the DOT to protect the accredited PTEs from unfair competition, and private sector’s creativity in circumventing accreditation, were seen as the major challenges in the implementation of the mandatory accreditation system. Based on the results from this study, policy recommendations and future research directions are suggested.

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Cruz, R. (2022). Tourism Accreditation in the Philippines: Government and Private Sector Perspectives. In: Aquino, R.S., Porter, B.A. (eds) Tourism in the Philippines. Perspectives on Asian Tourism. Springer, Singapore. https://doi.org/10.1007/978-981-19-4497-0_6

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Business Diary Philippines

Small business startup ideas and money making guide

Top 50 Travel and Tourism Business Ideas

In the Philippines alone, travel and tourism is a multi-billion peso business industry.  It contributes a lot in the economic growth and Gross domestic product (GDP) of the country. If you want to have a piece of the pie in tourism and travel business industry, why not try one of these travel and tourism business ideas .

The Philippines is a vibrant and diverse archipelago known for its stunning natural landscapes, rich cultural heritage, and warm hospitality. Within this tropical paradise, there exists a myriad of exciting travel and tourism business opportunities. From pristine beaches and adventurous water sports to historical city tours and gastronomic adventures, the Philippines offers a wide array of experiences waiting to be explored.

Entrepreneurs can consider launching eco-tourism ventures to showcase the country’s breathtaking natural beauty, open food tours to introduce travelers to the sumptuous Filipino cuisine, or start adventure tourism services like scuba diving and island-hopping. Moreover, the Philippines’ burgeoning travel tech industry presents a fertile ground for the development of innovative travel applications, booking platforms, and services that cater to the ever-growing number of tourists flocking to this enchanting Southeast Asian destination.

With the nation’s tourism industry on the rise, there’s no shortage of creative and lucrative travel and tourism business ideas to be explored in the Philippines.

Top 50 Travel and Tourism Business Ideas

1. Tour Guide Service : Offer guided tours of popular tourist destinations.

2. Eco-Tourism Tours : Focus on environmentally responsible tours in natural settings.

3. Food Tours : Provide guided tours to local restaurants and food hotspots.

4. Wine Tours : Organize tours to local wineries and vineyards.

5. Historical Tours : Create tours focused on the history of a particular area.

6. Adventure Tours : Offer activities like hiking, kayaking, or zip-lining.

7. Cruise Planning : Help individuals plan and book cruise vacations.

8. Travel Agency : Start a full-service travel agency to assist with bookings.

9. Vacation Rental Management : Manage vacation rentals for property owners.

10. Bed and Breakfast : Open a cozy B&B for travelers.

11. Hostel : Create a budget-friendly accommodation option for backpackers.

12. Luxury Retreats : Cater to high-end travelers with luxury accommodations and experiences.

13. Travel Blogging/Vlogging : Share your travel experiences and monetize through ads and sponsorships.

14. Travel Photography : Offer photography services to tourists.

15. Local Souvenir Shop : Sell local and handmade souvenirs.

16. Online Travel Magazine : Create a digital publication focused on travel.

17. Transportation Services : Start a taxi, shuttle, or car rental service.

18. Online Travel Agency (OTA) : Build a website that aggregates travel bookings.

19. Pet-Friendly Travel Services : Cater to pet owners traveling with their animals.

20. Adventure Travel Gear Store : Sell equipment for adventure travelers.

21. Language Learning for Travelers : Offer courses in the languages of popular destinations.

22. Travel Insurance Broker : Help travelers find the right insurance for their trips.

23. Yoga and Wellness Retreats : Combine travel with health and wellness experiences.

24. Cultural Exchange Programs : Facilitate cultural exchange experiences for travelers.

2 5. Volunteer Tourism : Connect travelers with volunteer opportunities abroad.

26. Travel App Development : Create apps for travelers, such as navigation or language translation.

27. Luggage Rental Service : Rent out luggage and travel gear to tourists.

28. Eco-Friendly Tours : Promote tours with minimal environmental impact.

29. Rail Tour Packages : Offer vacation packages that involve train travel.

30. Virtual Reality (VR) Tourism : Develop VR experiences for those who can’t travel.

31. Niche Travel Tours : Specialize in specific niches like bird-watching or stargazing.

32. Agritourism : Promote farm and agricultural experiences.

33. Travel Consultation Services : Provide expert advice on travel itineraries.

34. Travel Subscription Boxes : Send curated travel-related products to subscribers.

35. Travel Tech Startups : Develop innovative travel-related technology.

36. Local Experience Marketplace : Connect tourists with unique local experiences.

37. Airport Transport Service : Provide shuttle services to and from airports.

38. Travel Influencer Marketing Agency : Connect brands with travel influencers.

39. Travel Safety and Security Training : Offer courses on staying safe while traveling.

40. Travel Podcast : Start a podcast about travel experiences and tips.

4 1. Historical Reenactment Tours : Create tours featuring historical reenactments.

42. Travel Writing Workshops : Teach others how to become travel writers.

43. Travel Event Planning : Plan destination weddings, conferences, and events.

44. Wearable Tech for Travel : Develop smart wearables for travelers.

45. Travel Health and Wellness Services : Offer wellness services tailored to travelers.

46. Travel Bookstore : Sell travel-related books and guides.

47. Sustainable Travel Products : Create and sell eco-friendly travel gear.

48. Travel Art Gallery : Showcase travel-inspired art and photography.

49. Travel Document Services : Assist travelers with visas and other documents.

50. Travel Therapy/Counseling : Provide counseling and support for travelers dealing with stress or anxiety.

When choosing a travel and tourism business idea, consider your interests, expertise, and the specific needs of your target audience. Conduct market research to understand the demand for your chosen niche and create a solid business plan to get started.

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Statistics about Travel, Tourism & Hospitality in Philippines

• Expenditures on accommodation services in inbound tourism Philippines 2012-2023
• Industry revenue of “restaurants and mobile food service activities“ in the Philippines 2012-2024
• Employment in accommodation, food and beverage business Philippines 2012-2022
• Industry revenue of “other accommodation“ in the Philippines 2012-2024
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• Industry revenue of “accommodation and food service activities“ in the Philippines 2012-2024
• Industry revenue of “accommodation“ in the Philippines 2012-2024
• Industry revenue of “short term accommodation activities“ in the Philippines 2012-2024
• Industry revenue of “beverage serving activities“ in the Philippines 2012-2024
• Industry revenue of “food and beverage service activities“ in the Philippines 2012-2024
• Expenditures on accommodation services in outbound tourism Philippines 2012-2023
• Leading bars Philippines 2022, by sales
• Number of inbound tourists on business trips Philippines 2012-2021
• Value of outbound tourism expenditure for business trips Philippines 2012-2021
• Value of inbound tourism expenditure for business trips Philippines 2012-2021
• Share of cafes and bar restaurants Philippines 2020, by category
• Leading cafes Philippines 2022, by number of stores
• Leading cafes Philippines 2022, by sales
• Cafes and bars restaurant sales Philippines 2015-2023
• Penetration rate of travel & tourism in the Philippines 2019-2028, by type
• ARPU of travel & tourism in Philippines 2019-2028, by type
• Revenue of the cruises industry in the Philippines 2019-2028
• Popular time for ordering from food delivery apps Philippines 2023, by gender
• Reasons for positive experience ordering from a virtual restaurant Philippines 2021
• Food delivery apps usage during COVID-19 Philippines 2023, by gender
• Popular time for ordering from food delivery apps Philippines 2023, by age
• Food delivery apps usage during COVID-19 Philippines 2023, by age
• Popular food delivery apps Philippines 2023
• Average spending on one order on a food delivery app Philippines 2023
• Reasons for reduced food delivery app orders after COVID Philippines 2021, by age
• Revenue of online food delivery Philippines 2018-2028, by segment
• Online food delivery users in the Philippines 2023, by segment
• Frequency of using food delivery apps Philippines 2023
• Penetration rate of online food delivery in the Philippines 2023, by segment
• Reasons for ordering from food delivery apps after COVID lockdown Philippines 2021
• Reasons for reduced food delivery app orders after COVID Philippines 2021, by gender
• Reasons for ordering from food delivery apps after COVID Philippines 2021, by gender
• Likelihood of ordering online COVID-19 after lockdown Philippines 2021, by age
• Likelihood of ordering online after lockdown COVID-19 Philippines 2021, by gender
• Likelihood of ordering online COVID-19 after lockdown Philippines 2021
• Reasons for negative experience ordering from a virtual restaurant Philippines 2021
• Food order experience from virtual restaurant or cloud kitchen Philippines 2021
• Motivations for ordering from virtual restaurant or cloud kitchen Philippines 2021
• Consumers who ordered food from virtual restaurants Philippines 2021
• Familiarity with virtual restaurant and cloud kitchen Philippines 2021
• Revenue of the online food delivery industry in the Philippines 2018-2028
• Food delivery apps usage during COVID-19 Philippines 2023
• Popular food items ordered from food delivery apps Philippines 2023, by gender
• Reasons for reduced food delivery app orders after COVID lockdown Philippines 2021
• Popular food items ordered from food delivery apps Philippines 2023
• Frequency of using food delivery apps Philippines 2023, by age group
• Frequency of using food delivery apps Philippines 2023, by gender
• Reasons for ordering from food delivery apps after COVID Philippines 2021, by age
• Consumer sentiment on food deliveries during COVID-19 Philippines 2020
• Popular time for ordering from food delivery apps Philippines 2023
• Domestic travel destination preference Philippines 2022
• Preferred destinations for international travel Philippines 2021
• Number of tourists from the Philippines in Israel 2018-2020
• Yearly visitors to the Philippines from South Korea 2004-2023
• Preferred destinations for domestic travel Philippines 2021
• Making reservations when dining out among diners Philippines 2022
• Preferred types of dine out or food buying locations Philippines 2022
• Favored mealtimes for eating out Philippines 2022, by age group
• Favored mealtimes for eating out Philippines 2022
• Means of making reservations when eating out Philippines 2022
• Likelihood to go to a restaurant in the next six months Philippines 2021
• Making reservations when dining out among diners Philippines 2022, by gender
• Average spending for lunch when eating out Philippines 2022, by age group
• Share of consumer consumption of food services Philippines 2020-2021, by method
• Average spending for breakfast when eating out Philippines 2022
• Average spending for dinner when eating out Philippines 2022, by age group
• Average spending for dinner when eating out Philippines 2022
• Average spending for lunch when eating out Philippines 2022
• Average spending for breakfast when eating out Philippines 2022, by age group
• Frequency of eating outside of home Philippines 2022
• Preferred eating out companion Philippines 2022
• Preferred eating out companion Philippines 2022, by age group
• Share of food services sales revenue Philippines 2022, by sector
• Food service sector sales Philippines 2015-2023
• Expenditures on food and beverage services in outbound tourism Philippines 2012-2023
• Expenditures on food and beverage services for inbound tourism Philippines 2012-2021
• Leading street stalls or kiosks Philippines 2022, by sales
• Philippines - visited fast food restaurants 2018
• Share of food service orders Philippines 2016-2021, by channel
• Expenditures on food and beverage services in domestic tourism Philippines 2012-2023
• Street stalls or kiosks sales Philippines 2015-2023
• Share of full-service restaurants Philippines 2022, by category
• Full-service restaurants sales Philippines 2015-2022
• Leading full-service restaurants Philippines 2022, by number of stores
• Leading full-service restaurants Philippines 2022, by sales
• Planned domestic travel activities Philippines 2022
• Minimum overnight quarantine room rates Metro Manila, Philippines 2021, by city
• Highest overnight room rates of hotels in Metro Manila, Philippines 2023, by city
• Length of stay of visitors from the Philippines in 5-star hotels in Macao 2013-2023
• Total number of visitors from the Philippines in 5-star hotels in Macao 2013-2023
• Likelihood to stay in a hotel in the next six months Philippines 2021
• Preferred airlines for next air travel Philippines 2022
• Possibility to use travel agency for domestic trip Philippines 2022
• Revenue growth of package holidays in the Philippines 2019-2028
• Preference on transportation for next local trip Philippines 2022

The future of farm tourism in the Philippines: challenges, strategies and insights

Journal of Tourism Futures

ISSN : 2055-5911

Article publication date: 12 March 2021

Issue publication date: 22 April 2024

This study aims to draw observations on the current status and potentials of the Philippines as a farm tourism destination and identify the underlying factors that inhibit farm tourism development. It intends to gauge the challenges that Filipino farmers face in diversifying farms and operating farm sites and uses these challenges in crafting strategies and policies for relevant stakeholders. It also provides Philippine farm tourism literature to address the limitations of references in the topic.

Design/methodology/approach

The study adopts an exploratory type of inquiry method and secondary data collection from various sources, such as published journal articles, news articles and reports, to gain insights and relevant information on farm tourism. The study also uses a threats, opportunities, weaknesses and strengths analysis approach to develop competitive farm tourism strategies.

The Philippines, with vast agricultural land, has the necessary base for farm tourism, and the enactment of the Farm Tourism Development Act of 2016 bridges this potential. With low agricultural outputs, the country draws relevance for farm tourism as a farm diversification strategy to supplement income in rural communities. While having these potentials, crucial initiatives in physical characteristics, product development, education and training, management and entrepreneurship, marketing and customer relations and government support must be implemented. Farmers' lack of skills, training and capital investment potential to convert their farms into farm tourism sites serves as the major drawback. Thus, developing entrepreneurial and hospitality skills is crucial.

Originality/value

This work presents a historical narrative of initiatives and measures of the Philippine farm tourism sector. It also provides a holistic discussion and in-depth analysis of the current state, potentials, strategies and forward insights for farm tourism development.

• Farm tourism
• Agri-tourism
• TOWS analysis

Yamagishi, K. , Gantalao, C. and Ocampo, L. (2024), "The future of farm tourism in the Philippines: challenges, strategies and insights", Journal of Tourism Futures , Vol. 10 No. 1, pp. 87-109. https://doi.org/10.1108/JTF-06-2020-0101

Emerald Publishing Limited

Copyright © 2020, Kafferine Yamagishi, Cecil Gantalao and Lanndon Ocampo.

Published in Journal of Tourism Futures . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

The Philippines has one of the fastest growing economies in the Association of Southeast Asian Nations (ASEAN) region, with an average growth rate of 6.3% (i.e. 2010–2016 coverage) and a 6.7% growth rate in 2017, as reported in the ASEAN Economic Integration Brief (2019) . As an agricultural country, 47% of its land area is intended for agriculture OECD (2017) with a recent reported sectoral growth of 2.87% in the third quarter of 2019 comprising primarily of crops and livestock, poultry and fisheries ( PSA, 2019 ) . As of January of 2018, about 10.9 million Filipinos were employed in the sector, which accounts for 26% of the national employment of the same month. This growth is insignificantly higher than its 25.5% share in January 2017. Unlike in the USA and Israel, where farmers are considered as middle-class citizens due to their high productivity ( Tarriela, 2016 ), which is ten times higher than the productivity of the country at 2.8%, Filipino farmers are still classified poor; thus, the need to provide them with a supplementary source of income. The country's agricultural sector has been underperforming since 1961. Globalization, industrialization and development encroachment are threatening small farms, as it is evident that farmers are forced to sell their lands and work due to industrialization ( Ghatak and Mookherjee, 2014 ). On this note, there is a need for Filipino farmers for the provision of the latest trends and technological advances in the field of farming to be on par with other ASEAN countries. .

In the Philippines, almost half of the population resides in rural areas that depend on agriculture as their primary source of income; among them are the indigenous people, landless farmers and fishermen ( Briones et al. , 2017 ). As an archipelagic country, it has diverse natural resources, rich cultural heritage, abundant agricultural produce and ideal sceneries. The country could access these resources in agriculture and address relevant issues vis-à-vis both the agriculture and tourism sectors. These components constitute an emerging type of tourism in the country, farm tourism – a sub-sector of rural tourism which focuses on providing an experience that endorses the very concept of farming and farm living ( Roberts and Hall, 2001 ). Rural tourism is defined as “a form of tourism that takes place in rural areas and involves the exploitation of natural and anthropogenic tourist resources of the rural area, and the conduct of social and economic activities that generate benefits for local communities” ( Dorobantu and Nistoreanu, 2012 ). It has recently been considered a viable approach to promote the countryside potentially and get the community involved ( Amir et al. , 2015 ). It is especially valuable in areas where traditional agricultural activities are decreasing ( Hoggart and Buller, 1995 ; Cavaco, 1995 ). The tourism and natural resource management literature are starting to take an interest in farm tourism because of its capability to provide potential benefits to local development ( Iorio and Corsale, 2010 ; Mastronardi et al. , 2015 ; Karampela and Kizos, 2018 ), especially with the alarming decline of the agriculture industry ( Kuo and Chiu, 2006 ). Ollenburg and Buckley (2007) pointed out that farm tourism enterprises are formed by the resulting combination of the commercial constraints of regional tourism, the non-financial attributes of family businesses and the inheritance nuances of family farms. Farm tourism paves the way to inclusive and sustainable agricultural and rural development as it opens possibilities for diversification of income for small-scale farmers while promoting sustainable agricultural systems and community involvement and participation (SEARCA, 2017).

The Philippines has enacted a national legislative measure, the Republic Act 10816 (R.A. 10816), popularly known as the Farm Tourism Development Act of 2016, which provides an overarching framework for developing and promoting farm tourism activities in the country. It defines farm tourism as “the practice of attracting visitors and tourists to farm areas for production, educational and recreational purposes”. It includes any agricultural or fishery-based activity for farm visitors, tourists, farmers and fisher folks who want to be educated and trained on farming and its related activities. Also, it provides a venue for outdoor recreation and accessibility to family trips. The country has set standards for the farm tourism industry and formalizes the industry players to boost sectoral growth through the promulgation of R.A. 10816 further. As farm tourism develops under the branch of nature-based tourism, it focuses on low-impact, nature-based and community-based activities involving the locals in ways culturally, socially and economically cultivating. In the Philippines, farm tourism accounts for 20%–30% of the overall tourism market ( Padin, 2016 ).

With the Department of Tourism (DOT) data, the country's tourism policy and implementation arm, more than 170 farm sites were accredited ( Talavera, 2019 ) and are mostly concentrated in the Luzon area, the Philippines' largest island in its northern part. Most travel agencies and tour operators in the country are not offering stand-alone farm tours but merely include one to two farm visits in their usual itinerary. As most of the tourism destination sites in the provinces are sun-sea-sand attractions, the country is less known for its agricultural sites. However, as roughly 40% of the land use is devoted to agriculture ( Talavera, 2019 ), developing and promoting these farm sites could not only generate additional revenue for the tourism sector but could also create some scale economies as crucial components and productive factors for farm tourism already exist, without altering the farm's orientation ( Veeck et al. , 2006 ). As the government is pushing for efforts to develop the farm tourism sector, more opportunities become available for local farmers to augment their income and diversify their lands. Thus, farm tourism does not only offer alternative tourist attractions in the country, but it also promotes agricultural farms and creates an outlet for farmers to sell their produce.

Despite such efforts of the Philippine Government for developing the farm tourism sector, several challenges remain roadblocks to development, and some directions seem to be counterintuitive. For instance, Montefrio and Sin (2019) noted that agritourism (i.e. farm tourism) in the Philippines is driven by a “complex elite network” of state and private entities which, along with uneven power dynamics, allows conditions favoring old and new landed elites while keeping marginalized small farmers at a distance. Addressing these challenges and attempting to offer possible strategies to overcome them require a country-level discussion that thoroughly provides an in-depth inquiry and analysis of the sector's current status and performance, along with managerial and policy insights on ways forward. Initiatives of this kind have been reported in the literature for decades. For instance, Pearce (1990) described the social aspects of farm tourism in New Zealand based on social situations analysis. Davies and Gilbert (1992) reported the development of farm tourism in Wales. From a gender perspective, Caballé (1999) brought insights from farm tourism in Spain. Potočnik-Slavič and Schmitz (2013) analyzed farm tourism development in nine European countries (UK, Belgium, France, Germany, Italy, Poland, Croatia, Slovenia and Ireland) and presented some major observations. Nematpour and Khodadadi (2020) examined the potential socioeconomic development of Iran with farm tourism as the driving force. However, despite such importance of conducting this report, such an initiative in the Philippines is lacking and presenting a rigorous discussion of the country's challenges and possible directions for developing the farm tourism sector becomes an imperative.

a historical narrative of Philippine farm tourism initiatives and measures;

an analysis of the potentials of the country as a farm tourism destination;

an inquiry on the underlying challenges that inhibit the country in developing numerous world-class farm sites in contrast to other sites in leading Asian countries; and

an in-depth investigation and analysis of the possible strategies, initiatives and policy insights of the relevant stakeholders (e.g. the government, farm tourism operators, among others) in addressing the challenges of farm tourism development.

Likewise, this study addresses the limitations of the collection of the relevant literature of Philippine farm tourism and intends to provide a rigorous investigation that will provide a reference work on the topic. Aside from the practical contribution of this work, analyzing the case of farm tourism of the Philippines offers an interesting set of insights to farm tourism as a domain field of study. First, farmers in the Philippines are generally classified as poor, and the agricultural output is relatively low despite having vast agricultural land. Secondly, the output of the tourism industry in the country is relatively low compared to other countries in the ASEAN region despite the presence of diverse natural resources, ideal sceneries, abundant agricultural produce and rich cultural heritage. Finally, the Philippine Government is committed to the development of farm tourism, and investments in various initiatives become evident. The nexus of these current socioeconomic and political conditions, along with various structural challenges, provides an interesting discussion on how farm tourism can be advanced in such an environment.

To address these gaps, this study used content data analysis from various literature, such as published journal articles, news articles and reports in drawing observations. This type of approach is ideal for gaining insights and in-depth information regarding the country's farm tourism. Content data analysis is a process used to describe written, verbal or graphic communications and creates a quantifiable description from qualitative data. Direct content analysis was adopted in sorting out the cases of the examined phenomenon, highlighting data, followed by labeling the highlighted information through predetermined codes. Data that were coded from the existing coding scheme would be given a new code. Direct content analysis foresees the variables of interest or the relation among variables determined through the coding scheme or relation between codes ( Mayring, 2000 ). It also uses the existing theory or prior research by identifying the critical variables in the coding categories ( Potter and Levine-Donnerstein, 1999 ). While we acknowledge the limitations of content analysis pertaining to data and information quality, the use of primary data sourcing methods (e.g. focus group discussion, interviews, surveys) may not be relevant at this point in Philippine farm tourism development as the sector is still relatively young with a limited pool of experts on the topic. The direct content analysis then generated the current status and challenges of the country's farm tourism sector. Some case illustrations in the local regions of the country were utilized to describe better the potential of farm tourism along with its corresponding challenges. This set serves as inputs to the weaknesses–opportunities (WO) analysis – a strategy design tool that is an extension to the strengths, weaknesses, opportunities and threats (SWOT) analysis. The leverage of the WO analysis lies in its capability of designing strategies that access external opportunities while reducing internal weaknesses ( Weihrich, 1982 ). Policy insights were then identified from the strategies generated by the WO analysis. The entire process of this work serves as a platform for developing an in-depth analysis of possible strategies and policy insights for farm tourism in the Philippines.

This paper is organized as follows. Section 2 discusses the background of farm tourism and its comprehensive benefits. Section 3 presents the current status and potentials of the farm tourism sector, as well as its challenges and strategies. Section 4 provides an in-depth “mini-maxi” strategies for addressing the sector's challenges. Policy insights are outlined in Section 5. It ends with a conclusion and discussion of the future work in Section 6.

2. Background of the study

2.1 farm tourism: background, issues and concerns.

With the onset of the UN Sustainable Development Goals (SDGs), agriculture is considered the largest employer globally, which provides the livelihood for 40% of the current global population. Developing countries have barely 30% of the total agricultural production, while high-income economies have 98%, which suggests that enormous opportunities for developing countries like the Philippines are available in agribusiness. One of the targets of the Zero Hunger Goal of the UN SDGs is to double the agricultural productivity and income of small-scale food producers in 2030, particularly women, indigenous peoples, family farmers, pastoralists and fishers through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment. The eighth UN SDG, on the other hand, is to have a Decent Work and Economic Growth, which is targeting in the promotion of development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. The notion of farm tourism attempts to address these two important goals, as discussed in the current literature ( Iorio and Corsale, 2010 ; Mastronardi et al. , 2015 ; Karampela and Kizos, 2018 ). Like other countries, the Philippines has already made a significant step by promulgating the R.A. 10816, which provides a set of national policy guidelines on the development of farm tourism.

Tourism is a significant economic activity to the rural economies, characterized by low income from farming with defined economic opportunities ( Talbot, 2013 ). Developed economies viewed tourism as a response to employment and livelihood gaps in rural areas ( Sharpley and Vass, 2006 ). Due to the widespread impact of agriculture, in many countries, tourism is currently the focus of farm diversification ( Fisher, 2006 ; Garrod, 2011 ). Governments worldwide have recognized the need to encourage farm enterprises that provide alternative sources of income to address the threat of rural area desertion and agricultural neglect, resulting in farm diversification ( Hjalager, 1996 ). Farm-based tourism has been very successful in many parts of Europe and has increasing popularity in Canada, the USA and New Zealand ( Busby and Rendle, 2000 ). This movement is greatly attributed to the changing policy context of agriculture in developed nations ( Davies and Gilbert, 1992 ; Walford, 2001 ). These agricultural policies have experienced some fundamental changes over the past 50 years ( Sharpley and Vass, 2006 ). Agricultural policy reforms, as well as changes in social, political and economic conditions in Norway, for instance, have encouraged their farmers to diversify their farms to generate additional income ( Haugen and Vik, 2008 ).

Farm tourism is expected to encourage employment in rural communities as well as the vitality and sustainability of these areas ( Davies and Gilbert, 1992 ; Garcia-Ramon et al. , 1995 ; Sharpley and Vass, 2006 ; Forleo et al. , 2017 ) and is considered as part of the shift in their economic base ( Blekesaune et al. , 2010 ). Garcia-Ramon et al. (1995) were optimistic by noting that while farm tourism generates new job opportunities, it contains a multiplier effect that supports other local economic sectors. Additionally, farm tourism is considered a value-adding activity for farmers as it strengthens the resource base of the farm, builds upon the farm and the competency of farmers and on what the farm means in terms of mentality and lifestyle ( Brandth and Haugen, 2011 ). However, tourism on farms is small-scale and economic viability is considered not always good ( Forbord et al. , 2012 ). One of the earliest opposing viewpoints about farm tourism was presented by Maude and Van Rest (1985) , which argued that farm tourism returns are small brought about by rigorous planning regulations. Hjalager (1996) also identified the tendency of farmers to give priority to traditional agriculture as one of the drawbacks. Sharpley and Vass (2006) added that the desire of farmers for the development of farm tourism is rooted in an employment concept, rather than from a diversification motivation. These conditions have changed for the past 30 years, and governments have sorted out some of its challenges. Nevertheless, farm tourism covers a variety of services and products, and the combination of production on agricultural products and tourism can lead to an advantage of increased and efficient use of labor on a farm ( Fleischer and Tchetchik, 2005 ). Additionally, extending the notion of Mastronardi et al. (2015) , farm tourism offers the opportunity to farmers to sell their produce directly to the consumers, thus reducing transactions with commercial intermediaries, which would, in effect, dramatically increase their profit margins. In this scenario of direct interaction, farmers implement direct marketing initiatives and new product introductions with minimal market risk while consumers benefit from direct information exchange, strengthening of social relations and availability of local produce at competitive prices ( Mastronardi et al. , 2015 ). However, it is argued that farm tourism still lacks a comprehensive body of knowledge and a theoretical framework ( Oppermann, 1995 ) since only a handful of studies have conducted rigorous investigations on this area.

As diversification to farm tourism is increasingly considered as a viable development strategy in promoting a more diverse and sustainable rural economy while countering declining farm incomes, one of the major challenges identified in the domain literature is the lack of additional business and entrepreneurial competencies of farmers, who by nature of the agriculture sector, have the dominant productivity-driven mindset ( Busby and Rendle, 2000 ; Haugen and Vik, 2008 ; Phelan and Sharpley, 2012 ). Pesonen et al. (2011) considered these entrepreneurs' roles and skills as fundamental for rural tourism as new products and services must be introduced to meet ever-changing market demands at competitive prices. The transition from farming (or tourism on farms) to farm tourism is considered difficult as farmers are mostly in isolation with tourism, with a lack of knowledge, expertise and training in the field ( Busby and Rendle, 2000 ). Interestingly, some works have pointed out that women have higher motivation for agritourism (or farm tourism) than men ( McGehee et al. , 2007 ; Haugen and Vik, 2008 ). Besides these entrepreneurial skills, other economic variables such as food service, direct selling, public subsidies and other external factors such as proximity to urban or cultural centers are also determinants of farm income performance ( Giaccio et al. , 2018 ). Most recently, Da Liang et al. (2020) highlighted the match between farm image and farm experience activities as contributory to positive tourist response in farm tourism sites. Some current areas of interest in farm tourism have extended to the inclusion of culinary tourism experiences in agri-tourism destinations ( Testa et al. , 2019 ), educational rural farm tourism ( Cornelia et al. , 2017 ), recreation on farms ( Barbieri et al. , 2016 ), the combined recreational-educational rural tourism on farms ( Petroman et al. , 2016 ) and cultural integration on-farm activities ( Prayukvong et al. , 2015 ), among others. Note that this list is not intended to be comprehensive.

2.2 Benefits of farm tourism

The tourism industry perceives farm tourism as a medium for the diffusion of tourists away from the gateway cities ( Ollenburg and Buckley, 2007 ). These areas allow easy access to potential tourists ( Garrod, 2011 ). In Taiwan, Thailand and Japan, tourists gather to farms and partake in activities such as rice planting and vegetable harvesting. The majority of the farms have increased their income, and consequently profit, by adding farm tourism activities in their operations ( Tew and Barbieri, 2012 ). Haghiri and Okech (2011) agreed that farm tourism activities in their countryside or province are generally viewed as alternative income sources, usually above the earnings from various on-farm activities. It aims to promote tourism in rural areas and balances development through economic dispersal and providing opportunities in the countryside. Gabor (2016) noted that farm tourism is an excellent example of inclusive growth for the local communities. Some reports from Australia, Taiwan, Thailand, the USA, Costa Rica and some European countries indicated that jobs and revenues are created in local communities through farm tourism activities.

Furthermore, farm tourism conserves and preserves the environment through the notion of sustainability and its nature- and community-based tourism concept. Recio et al. (2014) highlighted that while agriculture maintains the environment, farm tourism, on the other hand, enables the farmers to innovate and diversify their landscape for various purposes, and at the same time, protects the natural resources which would benefit tourism and other sectors. Aside from an environmental point of view, farm tourism also protects and promotes cultural traditions and develops a sense of pride and ownership to the locals while enriching the tourists' authentic cultural experience. At present, tourists yearn to embody the local rural experience and not merely become onlookers in the rural environment ( Cloke and Perkins, 2002 ). Farm tourism encourages visitors to experience firsthand the agricultural life ( Mansor et al. , 2015 ) and can be a catalyst for revival or strengthening rural traditions and culture. In farm tourism sites, tourists may know the differences and dynamics of culture of the locality, even with the tone or the accent of their dialect. This cultural impact of farm tourism and agritourism on a rural community is considered by Amelia et al. (2017) as the most important undertaking as it changes the cultural behavior and thinking of culture in contact with another culture.

Finally, farm tourism provides education about the importance and role of agriculture. The majority of the visitors are families with young children, community organizations and schools that set the significance of farm offerings in educating the public ( Tew and Barbieri, 2012 ). It creates a mutual learning experience when farmers share their abilities and affirm their role in the community. This notion was supported by Gabor (2016) by citing that farm tourism represents the business of attracting visitors to farm areas generally for educational and recreational purposes ( Gabor, 2016 ). It encourages the development of a symbiotic relationship between the farmers and the tourists ( Busby and Rendle, 2000 ). If properly planned and managed, farm tourism bridges the gap and creates a harmonious relationship between the rural and urban communities.

3. Findings

3.1 status of the philippine agricultural sector.

The Philippines has roughly 30 million hectares of land, of which 9.7 million are considered agricultural. The agricultural industry portrays an important role in the Philippine economy and the development of the country. However, the country has lagged by neighboring ASEAN countries. As shown in Figure 1 , the productivity rate of the country is lower than Indonesia, with 3.73%, Malaysia 4.10%, Thailand 3.21, Myanmar 3.67 and Vietnam 4.16%. Note that these countries have also invested in farm tourism ( Leh et al. , 2017 ; Ahmad et al. , 2018 ; Nguyen et al. , 2018 ). With exports related to agri-food, the country is also underperforming based on the 2014 data with US$6.7bn earnings in comparison to other ASEAN countries, as shown in Figure 2 . In 2014, the Philippines exported US$6.7bn worth of farm products but imported US$8.6bn for a deficit of US$1.9bn ( Dar, 2017 ). Thailand transported US$38.4bn in farm products the same year abroad and imported US$12.9bn with a surplus of US$25.5bn. Indonesia has US$38.8bn in farm exports and US$17.5bn in agricultural imports for a surplus of US$21.3bn, while Malaysia has US$26.2bn in farm exports and US$18.3bn in agricultural imports for a surplus of US$7.9bn. On the other hand, Vietnam US$24.8bn in farm exports and US$13.4bn in agricultural imports for a surplus of US$11.4bn.

Such low agricultural productivity can be attributed to some of the challenges that the agriculture industry is facing nowadays. At present, there are widespread conversions of prime agricultural land partly due to rapid urbanization and population growth. For instance, there is a growing need for housing projects, residential villas and commercial properties, which have led to the immense conversion of agricultural lands not just in Metro Manila but in key cities across the country ( Cabildo et al. , 2017 ). The development trajectory has been extended to Visayas and Mindanao (i.e. two of the largest group of islands in the country), causing a tremendous shift in land use patterns. The Department of Agrarian Reform (DAR), the Philippine Government agency for the distribution of agrarian land, distinguished Negros Occidental and Misamis Oriental (i.e. provinces in the country) known for vast sugarcane and coconut plantations accordingly were among the top ten provinces with the highest number of land conversions ( Cabildo et al. , 2017 ). With such foregoing conditions, agriculture has been stagnant ( Beus, 2008 ), and farm output has declined due to human and external factors. Due to the complementary nature of farm tourism to agricultural activities, it is recognized as an alternative activity to diversify economic growth ( Tiraieyari and Hamzah, 2012 ). Thus, as part of the diversification efforts of Philippine agriculture, farm tourism is a potentially vital key in sustaining economic and environmental security.

3.2 Farm tourism in the Philippines

Farm tourism started in the country in the 1990s. The DOT, the Philippine Government agency for tourism, has long seen the importance of farm tourism before the promulgation of R.A 10816. In 1991, DOT and United Nations Development Program (UNDP) worked together and developed a Philippine Tourism Master Plan, which aimed to develop tourism in a sustainable manner and farm tourism is on the list. DOT also spearheaded the Philippine Agri-Tourism Program as early as 1999. In 2002, DOT and the Department of Agriculture (DA) issued a joint circular order that identified the ten farm sites in the country. The DOT accreditation has set the minimum standards for all operations and maintenance activities to guarantee tourist satisfaction. Accreditation of farm sites is voluntary and shall be valid for two years. Farm tourism sites in the country are categorized into two: day farms and farm stays. Day farms are usually located near highways, while farm stays offer accommodations and dining experience. The accreditation is based on the minimum standard set by the DOT based on the following requirements: location, facilities and amenities, infrastructure, operation, safety and security and sanitation. Accreditation may be suspended or revoked for any violation of the standards. In 2012, a house bill in the Philippine Congress had been filed to promote farm tourism in the country by providing tax credits to registered activities to offset the expenses in venturing into farm tourism and provide technical assistance to farmers entering the business. In 2016, the bill was signed into law, the R.A 10816, or the Farm Tourism Development Act of 2016, which encourages, develops and promotes farm tourism. Subsequently, some provinces, including Bukidnon, Batangas, Tarlac and Tagaytay, are well recognized for their potential to become a farm tourism destination ( Nawal, 2013 ).

investment promotion and financing;

market research, trends, innovations and information;

accreditation of farm tourism camps;

market promotion and development;

agriculture and fishery research, development and extension;

institutional and human resource development; and

infrastructure support ( Makati Business Club (MBC), 2016 ).

The law also mandates to establish a Farm Tourism Board that shall recommend projects for funding opportunities through the DOT, the DA, the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Department of Public Works and Highways (DPWH), the Department of Transportation and Communications (DOTC) and other concerned government agencies concerning farm tourism development. The board is tasked to increase farm tourism awareness through relevant marketing campaigns. In cooperation with DA, DOT is mandated to accredit farm tourist sites that are voluntary and valid for two years. Historically, DOT has been accrediting farm sites since the 1990s under the provision of Executive Order No. 292, following the rules and regulations to govern the accreditation of farm sites. To further strengthen the institutionalization of farm tourism in the country, and to further solve the issues of hunger and poverty, and to sustain food security, the national convergent program was launched in line with R.A 10816. Lazara (2017) , a Philippine senator explaining that the essence of the law is for the government to recognize tourism coupled with agriculture could bring the value of agriculture in the economic and cultural development of the country, serves as catalysts of agricultural and fishery development and provide additional income to the farmers and fisherfolks. It also reiterated that the most important provision of the law is its encouragement to establish at least one farm tourism camp in every province (Lazaro, 2017).

3.3 Potentials of farm tourism

Cebu has a dynamic trade and commerce, particularly in agriculture, since it has a high demand for agri-fishery products driven by the numerous hotels, restaurants, fast-food chains, supermarkets and other corporate buyers Galolo, 2016 ).

The province is in an avian influenza-free region and can sell poultry products anywhere in the country and even abroad ( Galolo, 2016 ).

Cebu has a steady population growth and increases per capita consumption, furthering the demand ( Galolo, 2016 ).

Farm-based tourism is a good diversification strategy if farms are located or close in central districts and located near scenic attractions with several outdoor activities to enjoy ( Walford, 2001 ). Farm-based tourism works best in areas with high scenic and heritage values ( Walford, 2001 ) in which Cebu possessed along with the numerous cultural and natural attractions it is known for. Most vegetation comes from the southern part of the province in the municipality of Carcar City and Dalaguete, which is also known for its tourist attractions ( Lorenciana, 2014 ).

Opportunities are available for agriculture and fishery to flourish further in the province. However, like other provinces in the country, Cebu is not maximizing its full potential in this sector. Cebu is already a well-known tourist destination among local and foreign tourists, and inculcating farming with tourism can potentially alleviate the popularity of farming in the province. Such an approach encourages a sense of gratitude among tourists to the food they are taking in and inspires the youth to be more involved in the agriculture industry. Nevertheless, Cebu needs to manage and strengthen its agricultural and farm resources to reap low-hanging fruits in farm tourism.

3.4 Challenges and strategies of Philippine farm tourism

Amidst the potentials that the farm tourism sector has and the efforts that the Philippine Government has taken, the sector is possibly faced by impediments that are likewise experienced by other farm tourism sectors worldwide. Based on the reports gathered, some factors impede the growth of farm tourism in the country. A thematic presentation is shown here.

3.4.1 Physical characteristics.

The general concern of the farmers in the country is the erratic climate brought about by the possible effects of climate change, which is considered a threat to their crops ( Lorenciana, 2014 ). Furthermore, the country has limited agricultural lands and is worsened by the effects of industrialization through land conversions credited to the high popularity and demand for real properties such as housing and condominium development. Cebu, as a case in point, has mountainous topography that limits agricultural potential. Due to its strategic position, Cebu also has a highly urbanized image. This position curbs further expansion of agricultural development in the province. Most farms are small-family owned, commonly situated in upland slopes, paling compared to the farms in the Luzon area where the topography is generally plain.

3.4.2 Product development.

The DA has a positive outlook on farm tourism as a long-term solution to improve the quality of living of the farmers and fishers ( Villarin and Miasco, 2017 ). However, many farmers lack the necessary resources (i.e. financial, technical and human resources) in diversifying their farms into a farm tourism business ( Moraru et al. , 2016 ). This may be due to the limited and inequitable access of the farmers to the provisions of the government and the private sector for these resources. There is an insufficient number of farm tourism sites and poor consistency in the quality of farm tourism products demonstrated by a few farm tourism operations that are market-ready ( Moraru et al. , 2016 ). The majority of the farm sites in the country cannot compete with those in other Asian countries (e.g. Taiwan and Japan) due to its lack of innovation and marketing. This manifestation is also heightened by the lack of understanding and application of the contextual research of farm tourism supposedly carried out by Philippine universities.

3.4.3 Education and training.

There is an aging populace of farmers in the agricultural sector, and a critical need for succession becomes obvious ( Santiago and Roxas, 2015 ). Only a few people are engaging in agriculture nowadays. Agriculture has been typecasted as a low-level career in the country. The University of the Philippines-Los Banos, College of Agriculture, the top agricultural university in the country, reported that enrollment had declined drastically from 1980 with 51% enrollees down to 43% in 1995 to 4.7% in 2012 ( Cinco, 2012 ). In 2014, official reports highlighted that the average age of Filipino farmers is 57 years old, a few years before retirement ( Casauay, 2014 ). Furthermore, the young generations (i.e. millennials, generation X) witness their parents grow old and poor with farming and do not positively view agriculture as a lucrative career ( Alave, 2011 ). The PSA reported the most recent estimates that the farmers have the highest poverty incidence in the country, with 34.3% in 2015, closely followed by the fishermen at 34% ( PSA, 2017 ). These estimates are corroborated by the latest agricultural wage rate survey in 2018, which highlights that the average daily income of farmers is posted at Php 306 (roughly US$6) or a monthly rate of Php 8,000 (US$157) ( PSA, 2019 ). The positive outlook on agriculture can be bridged by increasing the farmers' per capita income that can be potentially addressed through supplementary income sources such as, including, among others, farm tourism. On this note, excellent education and skills development on farm tourism become crucial in the provision of marketable farm tourism products.

At present, the Philippine Government encourages the formation of farm tourism camps or farm schools all over the country to serve as avenues of learning for farmers. The two agencies (i.e. DOT and DA) are tasked under R.A. 10816 to lead in the establishment of at least one farm tourism camp in every province in the country. In 2012, the Philippine Congress enacted into law the R.A. 10618 or the Rural Farm Schools Act that promotes sustainable agricultural productivity and rural development by empowering the human capital in the countryside through access to avenues of learning suitable to the needs of the rural agricultural communities. The rural farm school curriculum is intended to follow the core secondary education curriculum of the Department of Education (DepED) with add-on courses highlighting agri-fishery arts. The last two academic years in the rural farm school educational system is designed to focus on integrative learning across all subject disciplines in the curriculum with an emphasis on farm entrepreneurship theory and practice and its promotion as a tool in cultivating local entrepreneurs, revitalizing rural economies and repopulating rural communities.

3.4.4 Management and entrepreneurship.

Phelan and Sharpley (2012) argued that the current dynamics of the farm tourism business require farmers to possess a certain degree of entrepreneurial skills that remain lacking among them. McNally (2001) and Grande (2011) suggested that farmers have great opportunities to cater to tourists, but they need the necessary skills to diversify their farms and accommodate tourists in a sustainable manner that does not affect their regular farming and create a new business venture. It is widely understood that entrepreneurial skills are among the most important aspects of modern-day farming ( Smit, 2004 ). Farmers are recognized these days as entrepreneurs that require new skills and capabilities to develop to become or remain competitive ( McElwee, 2006 ). In the Philippine context, the DA has taken steps to address the lack of entrepreneurial skills among farmers by encouraging local government units in identifying specific needs of farmers and addressing these needs by conducting seminars and training, which would highlight these required skills in farming ( Lorenciana, 2014 ). The concept of agripreneurship has also been in the limelight of the Philippine Government by incorporating it into the Philippine Agriculture 2020 Plan. Despite these efforts, Santiago and Roxas (2015) remained reserved and noted that one of the leading causes of failure of government efforts in agriculture has been on increasing productivity rather than on entrepreneurial initiatives. Santiago and Roxas (2015) noted that shifting from productivity to entrepreneurial activity would allow more selling on value-added produce than producing more of the same crops.

3.4.5 Marketing and customer relations.

Shifting from the traditional agriculture mindset to diversifying it towards farm tourism requires the necessary skills in marketing and customer relations among farmers. The majority of the farm tourism businesses lacks the training to render useful service, as well as marketing skills to the tourist ( Sharpley, 2002 ). Moraru et al. (2016) added that most farmers and their workers do not possess the skills to ensure success in farm tourism. There is limited relevant information provided to the farmers regarding tourism markets and trends ( Moraru et al. , 2016 ). Consequently, ineffective communication exists among farmers and the market in terms of promoting their farms ( Moraru et al. , 2016 ). There are also inadequate knowledge and skills in customer management ( Haghiri and Okech, 2011 ). These conditions are prevalent in the Philippine context ( ESFIM, 2009 ). At the micro and macro level, among the challenges that the country is facing are the lack of market information and the inability to analyze this information, poor transport infrastructures and poor farm product quality standards ( ESFIM, 2009 ). Most of these challenges are highly associated with the lack of marketing and customer relation skills of the farmers at the micro-level as they are mostly dependent on market intermediaries in selling their products. With the lack of farm to market access, farm tourism can bridge such limitations by providing opening opportunities for direct selling.

3.4.6 Government support.

Moraru et al. (2016) pointed out that government support is crucial to farmers in harnessing their business growth and encouraging and educating the potential tourists about farm tourism. This presents a new challenge to the Philippine Government. The main landmark of the government's efforts on promoting and developing farm tourism is the enactment of the R.A. 10816 or the Farm Tourism Development Act of 2016, which highlights the provisions on creating the Farm Tourism Development Board, investment promotion, financing and incentives, market research and information, accreditation of Farm tourism camps, market promotion and development, agriculture and fishery research, development and extension, institutional and human resource development and infrastructure support. Less than five years after its promulgation, the policy has not been fully implemented down to the micro-level. Currently, DOT has accredited roughly more than 170 farm tourism sites in the country. Despite such efforts, the Philippine Government has not addressed crucial issues such as widespread public awareness of farm tourism and its benefits, poor understanding of farm tourism among relevant government agencies and limited marketing efforts exerted by the local government units, among others. As DOT accreditation is voluntary, operators become hesitant to undergo the accreditation process without enough understanding of its benefits farm tourism. Thus, public awareness is crucial at the outset of any marketing efforts. Furthermore, there is poor coordination of relevant government agencies in the promotion of farm tourism. For instance, the promotion of activities of local government units on farm tourism is often not coordinated with the DOT as a national tourism agency. Additionally, the local tourism offices highly depend on farm tourism operators' individual marketing efforts in promoting their sites.

4. Weaknesses–opportunities (WO) analysis

With the identified benefits in the current literature and the challenges faced by the farm tourism industry in the Philippines, a WO analysis is presented here. WO analysis is one of the distinct strategic groups of the threats, opportunities, weaknesses and strengths (TOWS) matrix developed by Weihrich (1982) . The TOWS matrix is an extension of the widely adopted the SWOT analysis that scans internal factors (strengths and weaknesses) and external environment (opportunities and strengths). The main objective of the TOWS matrix is to provide means in developing strategies based on the logical two-factor combinations of internal and external factors of SWOT. The WO strategies, also termed as a mini-maxi (competitive) strategy, are taking advantage to access external opportunities while reducing internal weaknesses ( Weihrich, 1982 ). Some relevant applications of the TOWS matrix include the Basel norms ( Kapoor and Kaur, 2017 ), strategic marketing ( Proctor, 2000 ), strategic choice ( Kulshrestha and Puri, 2017 ), strategy formulation ( Dyson, 2004 ; Wang and Hong, 2011 ; Dandage et al. , 2019 ) and strategic natural resources management ( Kajanus et al. , 2012 ). TOWS matrix has also been applied specifically in the tourism domain such as formulation of tourism destination development strategies ( Goranczewski and Puciato, 2010 ), strategic marketing planning for tourism ( Wickramasinghe and Takano, 2010 ), ecotourism development ( Hong and Chan, 2010 ; Asadpourian et al. , 2020 ) and strategy identification for a food firm ( Ingaldi and Škůrková, 2014 ), among other applications. Among the four strategic groups, the development of the WO strategies is deemed appropriate for creating development strategies for the farm tourism sector as the sector is mostly dominated by weaknesses but is operating in a favorable environment. Details for the WO strategies for farm tourism are provided in Table 1 .

With the given WO analysis of farm tourism in the country, strategies are developed to mitigate the weaknesses while advancing farm tourism opportunities. First is the promotion of urban and vertical farming in cities that address the limitation of agricultural land for farm tourism. Urban vertical farming produces food on vertically inclined surfaces and an agricultural technique that involves large food production mostly in high-rise buildings with controlled environmental conditions for fast growth and planned production ( Kalantari et al. , 2018 ). United Nations (2007) reported that the world population would rise to 9 million in 2050, mostly will live in urban areas. Thus, urban vertical farming can potentially aid the country or the locality in meeting the elevating demand for an agricultural product without additional farmlands. Urban vertical farming has been applied in Singapore, Japan, South Korea, Sweden, China ( Kalantari et al. , 2018 ), among others. Travel trends are dynamic with the changing market preferences and are paralleled with innovating products to maintain a competitive advantage. Farm tourists are characterized by a high educational level, with an age range belonging to millennials and generation X ( Dubois et al. , 2017 ). In generational marketing, millennials are adventurous and often travel for experiences ( Machado, 2014 ); thus, offering farm tourism as an alternative or additional attraction can benefit both farmers and the government. Therefore, government support for farm tourism is inevitable to harness its economic, socio-cultural and environmental impacts that will eventually enhance the performance of Philippine tourism. Traditionally, farms are more inclined to produce agricultural products as factual evidence of their productivity; however, with the diversification direction of farm tourism, these farms must conform to the operational needs of farm tourist sites. This conformity involves acquiring new skills to operate farm sites profitably. Training and seminars shall be initiated and spearheaded by relevant government agencies (e.g. DOT, local tourism offices, LGU) on enhancing the entrepreneurial skills, management and customer relation of the farmers that are projected to have a long-term positive effect on the success of farm tourist sites. These ventures are an ideal venue for information sharing on important data (e.g. market trends, market profile) that will capacitate farm tourism operators in understanding the market trends and tourist interests. Developing skills to novice players in farm tourism would potentially augment tourism performance in the country.

The strategy “research and development, and science and technology intervention to further develop farm sites and farm products” can be implemented by policymakers (i.e. the government) and the farm tourism sector (i.e. operators, NGOs). This strategy aims to address the insufficient number of farm tourism sites, poor consistency in the quality of farm tourism products and farmers' lack of entrepreneurial and marketing skills while accessing two opportunities: growing trend and tourist interest in farm tourism and increasing government support for farm tourism. With the emerging interests of tourists for farm tourism, an increase in tourist influx is expected, and farm operators could respond to such opportunity by establishing close coordination with the government and the academe to develop and implement R&D programs (e.g. research projects, seminar modules, training, workshops, benchmarking visits, among others) to advance the entrepreneurial and marketing skills of farmers. With universities spearheading the R & D programs, product research on enhancing farm tourism products could be implemented along with the farm tourism sector members. The financial and infrastructural requirements to support these activities could be bridged through increasing government spending for farm tourism to support the R.A. 10816. With R&D programs to improve farm tourism site accreditation and increased government support for such activity, there would be an expected increase in the number of farm tourism sites and strengthening public awareness for farm tourism.

Another strategy that the Philippine Government could initiate is to offer financial assistance to small farmers in diversifying their farms with tourism. Such a strategy takes advantage of increased government support for farm tourism and economic development dispersal direction to rural areas while curbing the insufficiency of the number of farm tourism sites and poor consistency in the quality of farm tourism products. Direct financial assistance could be possible in low-interest loans, tax incentives and tax holidays for farm tourism operators. Indirect aid could be in the form of free training and seminars on relevant topics such as technical skills as well as entrepreneurial and marketing skills for farm tourism. The government could also assist in the marketing and promotion of farm tourism sites and support for relevant infrastructure. The current trajectory of development in the Philippines is associated with dispersal to rural areas to decongest traffic and address overpopulation in highly urbanized cities. With financial support to small-scale farmers for farm tourism and the development direction toward rural communities, these farmers could capitalize on the propagation of farm tourism sites and enhance farm tourism products. Finally, creating and promoting farm tours to tourists and educational institutions could capture the opportunity of the growing trend and tourist interest in farm tourism and improved Philippine tourism performance while addressing the insufficiency of the number of farm tourism sites and poor consistency in quality of farm tourism products, and farmers lack entrepreneurial and marketing skills. With increased farm tours, potential farm operators could get attracted to invest in diversifying toward farm tourism, and those current farm operators would be obliged to improve the quality of their farm tourism products and to invest in human resource improvement in their soft skills (i.e. entrepreneurial and marketing skills).

5. Policy insights

This section outlines insights to stakeholders, including the government, farm tourism operators and other relevant tourism offices for policy formulation, resource management, strategic planning, among others. The promotion of urban agriculture through vertical and urban farming could address the issues related to the scarcity of agricultural lands. In 2013, there was a proposed Urban Agriculture bill in the Philippine Congress, which is supposed to institutionalize urban farming in highly urbanized areas to encourage the production, processing and marketing of food crops and livestock. The bill also advocates vertical farming, which involves indoor agriculture. However, it was not yet enacted up until the present. Vertical farming has been successful in Singapore, a small city-state, limiting its agricultural land ( Hui, 2011 ; Yusoff et al. , 2017 ).

To ensure the quality of delivering the farm tourism products and services, DOT accredits farm tourism sites that complied with the minimum standards set by the agency. However, the tourism products could be further enhanced through relevant actions on a macro level: (R&D projects are needed to spearhead farm tourism development, especially farm sites. Several Asian countries have already been very aggressive in their promotion and development of farm tourism, and contributions to economics, social, cultural and environmental have been evident. Tourism Infrastructure Enterprise Zone Authority (TIEZA), the Philippine national government agency under the DOT tasked for the development, promotion and supervision of tourism projects in the country, and the Office of the Undersecretary for Tourism Planning of the DOT must be proactive in initiating research projects that would provide cutting edge information on market trends related to tourism and farm tourism. They also need to spearhead the development of more farm sites to strengthen not just the tourism industry in providing alternative attractions but also the agriculture industry. Close coordination between DOT, local government units and other government offices is vital for the success of farm sites in a local area. This coordination can be implemented through information and resource sharing to facilitate the efficient delivery of services. On the other hand, existing farm sites must address the basic needs of the tourists as required in the accreditation guidelines for farm sites. As small family farms have limited access to resources to invest in farm tourism, the government must support these farms by initiating activities which include offering an agriculturally oriented educational experience suitable for different ages, providing basic services, such as parking, signage and guides, and ensuring safety and security in farm sites.

In generational marketing, the millennials and generation X currently have the highest purchasing power and potential to educate later generations on appreciating farm tourism. These two generations are more inclined in experiential activities of farm tourism which highlights tourist experience, can encourage and enhance the appreciation of these generations to get involved in farming. Consequently, it can address the declining number of enrollments in agriculture academic programs in the country ( Cinco, 2012 ). The current educational system of the country should further impart great appreciation and value to the agricultural industry ( Briones et al. , 2017 ). Farm schools can become more attractive once they become accessible, most notably in rural areas, and if farming is perceived as a good income source. Locals can be taught modern farming techniques, which can uplift their livelihood and sense of satisfaction and make farming a viable option instead of moving to the urban cities for employment ( Torrevillas, 2016 ). Moreover, agriculture needs investment in skills development and training to create a new breed of agriculturists. Many academic and tourism experts are now tapping on the potential of farm tourism to alleviate poverty and promote agriculture courses in schools and universities. For instance, some farm tourism graduates from the Central Bicol State University of Agriculture (CBSUA), a state university in the northern Philippines, are currently involved in research and development efforts and are contributing to the promotion of Laguna farm sites, such as the Costales Nature Farms. Dar (2017) argued that empowerment and capacity development to harness the potential of human capital, such as skills enhancement of farmers and developing relevant educational curriculum and innovative pedagogy for various interest groups, are two crucial directions for the government. The outcome should be a farmer possessing qualities such as efficient producer, team player, scientist/technologist, businessman or entrepreneur and environmentalist. A case in point is the Costales Nature Farms, which is a multi-awarded farm site that has grown from a small family farm advocating organic farming in 2005 to the first farm site in the Philippines accredited by the DOT. The farm is visited for leisure and relaxation or education. Furthermore, the Costales Nature Farms is an accredited private extension service provider of the national government agencies for agriculture and tourism (e.g. Agriculture Training Institute, DA, DAR, DOT). It provides workshops on sustainable organic farming and farm tourism. The farm has partnered with renowned hotels and restaurants and supermarkets, and it became one of the major producers of high-value organic vegetables and herbs in the country.

The government should start conducting infomercials or information commercials about the value of agriculture. For instance, the government must pass a measure that would mandate all broadcasting and online media to allocate a certain portion of time a day to broadcast public service announcements and infomercials regarding laws, social welfare, public safety, procedures and other matters of national interest that could be an effective medium to disseminate information about agriculture. Although the government is offering undergraduate and graduate scholarships, this has been less appealing to the intended public due to the negative perception of a career in agriculture. However, if enhanced information dissemination on the diverse opportunities an agriculture career can offer is proactively undertaken, then the negative perception of the public about agriculture as a low income and low skilled career venture may be eradicated ( Whitmell, 2012 ). Changing perceptions through marketing and packaging agriculture to make it more appealing to the young generation would become necessary to the government. It is not just an issue in the country but other countries as well. Possible directions could be undertaken to increase the interest of the youth towards agriculture. The first is to have a social media existence. For instance, a Facebook page that aims to inspire the youth to be involved in agriculture can be developed, serving as a social forum and building agricultural networks. It may include inspirational stories of farmers to empower the youth. Second is through blogs, which are discussion or informational websites that can serve as a platform for information dissemination. A training, capacity building and promotion program can be catalyzed by sharing thoughts about agriculture. The third is having good public relations. There should be a good farming public relation by projecting more inspiring stories, personal satisfaction and incentives that can be gained from farming. The government should create an agriculture personality, such as employing celebrity ambassadors that embody the ideals of the farmers and serves as a role model.

The government has put forward comprehensive assistance programs for the farmers, such as training, initiatives and financial support, to convince the farmers and their children to stay in agriculture. This is possibly done by projecting that farming is a profitable enterprise. A relevant and emerging concept is advocating social entrepreneurship that pursues innovative ideas with the potential to solve a community problem. One successful social entrepreneurship case in the Philippines is the Gawad Kalinga Enchanted Farms (GKEF). Social entrepreneurs in GKEF adopted the concept to develop more agricultural projects and help curb the declining number of farmers. This movement has already attracted people worldwide and should be considered as a good benchmark for farm tourism. Additionally, as millennials and generation X are highly technology-oriented, to obtain more traction from these generations, the farm tourism sector must embrace the emerging trend of technological innovation. Approaches may include the incorporation of virtual reality in farm sites, development and selling of online packages (e.g. klook), increased digital visibility, among others.

The shift from the traditional agricultural productivity focus to entrepreneurial and service orientation in farm tourism further complicates the agricultural business processes of the farmers. This complexity requires assistance from the government sector in terms of soft skills, among others. Most farmers are well-equipped with farming skills and possess innate hospitality, mainly credited to the Filipino culture; however, they lack marketing and entrepreneurial skills. To address this gap, the following insights could be considered. First, R&D activities on the market are crucial to the success of the farm sites. The DOT and the DA must carry out initiatives to make this information on market trends and innovations in agriculture available to compete with other ASEAN countries offering farm tourism. Second, an inter-agency government collaboration may conduct training for the local farmers in customer relations management to better off their interaction with the tourists and ensure their safety and high-quality experience. Finally, the DOT may encourage travel agents and tour operators to create stand-alone farm packages, conduct farm tours and promote farm visits. Further encouragement of farm visits to universities to gain firsthand experience and learn the value of agriculture is an appropriate direction forward.

Lastly, proper mechanisms of integrating initiatives at the national level and local government units must be implemented to increase coordination for farm tourism activities. With the onset of the R.A. 10816, it is deemed appropriate that the country has an excellent national policy involving agriculture and tourism. However, the effectiveness of such a national measure is highly dependent on its implementation. Short- and long-term plans and controls must be developed to ensure that the goals and objectives of the measure are satisfied and the intended benefits to the general public are achieved. The local government units must also consider creating some initiatives and strive for linkages in their locality. Through the government-academe-industry linkages, knowledge transfers and collective to and from the academe to the industry are flourished, and more significant results (e.g. livelihood in the countryside, increased per capita income of farmers, sustainability, among others) may become visible in the long-term.

6. Conclusions and future work

Farm tourism is considered one of the drivers of Philippine tourism's growth with R.A 10816 along with the DOT farm site accreditation standards to ensure quality farm sites in the country. Intergovernmental collaboration and coordination are mandated in the said policy in developing, promoting and strategizing farm tourism in the country. With the current government initiatives, an increasing number of farm sites and farm tourists is projected. The research literature on farm tourism has been prevalent in developed countries and is undoubtedly scarce in developing countries. There are hardly any fundamental works on farm tourism in the Philippine context, such as the works of McDaniels and Trousdale (1999) , Recio et al. (2014) , Tuzon et al. (2014) and Lago (2017). This limitation about literature may have instigated the gradual growth of farm tourism amidst the vast agricultural land in the country. As such, this study provides relevant data on the potential of the Philippines as a farm tourism destination and the challenges that inhibit the country from developing profitable farm sites. The challenges highlight the physical characteristics, product development, education and training, management and entrepreneurship, marketing and customer relations and government support. This information is vital in mapping strategies through WO analysis (mini-maxi) as a competitive strategy of the TOWS matrix that intends to address the weaknesses while targeting the opportunities that could potentially enhance farm tourism status in the country.

Philippine agriculture plays a significant role in the Philippine economy, yet its performance is deemed low compared to other neighboring ASEAN countries as to its production rate, import rate and export earnings. The low productivity of agriculture is credited to the challenges faced by the industry. These challenges include rural areas are now slowly urbanized due to these developments credited to the growing population and demand for industrialization; farming has become stagnant with depleting farm product output as younger generations have perceived agriculture as an unremunerative career option; the climatic conditions, as possible effects of climate change, are considered as threats to farmlands; and the farmers have limited government and non-government access and provision to needed resources (i.e. financial, technical and human resources) to diversify farms into farm sites. As such, farms can improve economic performance by diversifying farms and offering alternative farm tourism activities. These limitations can result in poor consistency and quality and innovativeness of the farm sites. Farmers also entail acquiring skills other than entrepreneurial (e.g. customer relations, marketing). With this, the Philippine Government initiated the development of farm tourism camps or farm schools in the country as a venue for farmers to gain new insights. For instance, the DA and DOT have encouraged the local government units to identify the farmers' needs and be addressed through seminars and training. However, the unavailability of the market information and inability to analyze this information, as well as the poor transport infrastructures in most rural areas, contribute to the poor farm tourism quality. With this, the support of the government is crucial in honing the farmers to the improvement of farm tourism. The R.A 10816 is an aggressive move towards developing and promoting farm tourism in the country; however, the policy has not been fully implemented down to the micro-level since it was enacted in 2016. In summary, the main contribution of this study is the identification of challenges of the farm tourism sector in the Philippines and the corresponding strategies and insights to address these challenges. The findings contribute to the future of farm tourism in bridging the negative social outlook on employment associated with agriculture, at least in the Philippines. The promotion, development and education of farm tourism to the present and future generations could generate a proactive outlook on farming as an economic and social driver in advancing tourism and agricultural performance. The insights of this work can address the limited literature of farm tourism in the Philippine context. This work could catalyze farm tourism development research and foster talents in developing farm tourism.

The study has an exploratory approach and the findings of the study must be interpreted with limitations. Despite the limitations of the study, it yields strategies and policy insights that are valuable in the early stage of farm tourism. The study is qualitative research in nature and has used secondary data. The findings of the study have focused on the Philippine context and may possess the same conditions as other farm tourism sites in developing countries. This work is limited in providing a historical narrative and collection of relevant literature specific to the Philippine setting. Hence, future works in farm tourism in the Philippine context are encouraged to improve further the quality of farm tourism offerings in the country and other relevant countries. Quantitative research can be undertaken for primary relevant data that can be obtained. Future works may include identifying the challenges, strategies and insights to farm sites utilizing primary data generated from a case study, focus group discussion, interviews and surveys. Thus work must be continuously undertaken in the context of evaluating farm capacity for tourism and determining the willingness of farmers to engage in it. Finally, a comparative study on the farm tourism sectors in the ASEAN may be undertaken to identify the hotspots, benchmarks and areas for possible improvements.

2014 Agriculture productivity rate in some countries of the ASEAN

2014 Agri-related export product (in US$ billion)

WO Analysis with recommending strategies

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Corresponding author

About the authors.

Kafferine Yamagishi is based at the Department of Tourism Management, Cebu Technological University, Cebu City, Philippines.

Cecil Gantalao is based at the School of Business and Economics, University of San Carlos, Cebu City, Philippines.

Lanndon Ocampo is based at the Department of Industrial Engineering, Cebu Technological University, Cebu City, Philippines.

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