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Freeman Cebu Business

PHL Tourism: A dismal 94th in world ranking

FULL DISCLOSURE - Fidel O. Abalos -

Generally, a survey is defined as “a gathering of sample of data or opinions considered to be representatives of a whole”. Some surveys, however, are regarded biased or sugarcoated. These are surveys where results are tailored more likely to the person or institution sponsoring it. Most of these surveys are political in nature and are used to influence decisions or solicit public sympathy.

On the other hand, businessmen and economists are entirely using a different one. In business and economics, we call this statistical survey. Statistical surveys, as opposed to the more familiar sounding “public opinion surveys” that are reported in the press, are not public opinion polls. These surveys are collected in a systematic way. These kinds of surveys provide important information for all kinds of research fields, e.g., marketing research, corruption index (per country) and competitiveness (e.g., on areas of technology) index. Due to the manner by which these are conducted, unlike public opinion polls (which are more political in nature), these surveys’ credibility is beyond question. One of these sorts of surveys is this year’s Travel & Tourism Competitiveness Report.

The Travel & Tourism Competitiveness Report 2011 is published by the World Economic Forum within the framework of the Centre for Global Competitiveness and Performance and the Industry Partnership Programme for Aviation, Travel & Tourism. As we are all aware of, the travel and tourism sector was in the receiving end in 2009 not only because of the global economic crisis but because of security threats, pandemics and strikes among personnel within the industry. Recently, however, the report is very encouraging. As reported, after a two-year free-fall, it is now emerging globally. 

As optimistically reported, the travel and tourism (T&T) sector has returned to the pre-crisis level in terms of tourist arrival with emerging markets on the lead. The World Travel & Tourism Council (WTTC) estimates “that, from direct and indirect activities combined, the T&T sector now accounts for a remarkable 9.2 percent of global GDP, 4.8 percent of world exports, and 9.2 percent of world investment”.   Clearly, therefore, the T&T sector remains very significant for the world economy. It accounts, among others, a sizeable share of global employment and has also provided an important opportunity for developing countries to improve and aim for bigger shares of the pie. 

While this upbeat news is very encouraging globally, it remains a big concern nationally. Absolutely, because while other lower ranked countries in 2009 have moved up, the Philippines declined farther down to the cellar. In the recent ranking of 139 economies, the Philippines was ranked 94th overall. This is a very sad 94th place out of 139 considering that in 2009 we were ranked 86th out of 133 countries. Worst, among ASEAN countries included in the survey, we are way below Singapore, Malaysia, Thailand, Brunei, Indonesia and Vietnam. If there is a consolation, we are a little better than the then civil war-ravaged countries of Cambodia and Timor-Leste.

The Travel & Tourism Competitiveness Report 2011 report had three main components. These are the “regulatory components”, “business environment and infrastructure”, and “human, cultural and natural resources”. In such report, it is encouraging that we ranked 75th in the area of “human, cultural and natural resources”. It is a great recognition of what nature has endowed us. However, such ranked was pulled down by our performances in “regulatory components” which was a mediocre 98th place and in “business environment and infrastructure” which was a negligible 95th. Thus, overall, we placed 94th.

Clearly, therefore, what we need are good regulatory components as well as better business environment and infrastructure.   Unfortunately, however, we are more engaged in useless arguments on concerns and issues without much value. 

To recall, late last year, we were so enraged with a non-catchy slogan. For all intents and purposes, however, a slogan is an advertising phrase. As such, investments poured into such advertising effort or promotion will only translate into profits if the products or services offered approximate the representation it makes. Otherwise, sustainability is not even an issue worth delving in. It is practically dead from the very beginning.

The country’s present crop of leaders, in probably trying to detach from the Arroyo brand, are trying to figure out a new tourism slogan. Departing from the relatively successful WOW Philippines, the Department of Tourism (DOT) launched late last year the new slogan, Pilipinas Kay Ganda (Philippines What a Beauty). Possibly coined by a person so engrossed with ABS-CBN’s Umagang Kay Ganda, the new slogan is just so bland. It simply lacks the needed sting and substance of a catchphrase.   Instead, as the website was instinctively labeledwww.beautiful pilipinas.com, tourism industry players feel that potential tourists may misinterpret it as promoting our women. Or, simply put, the slogan is trying to put premium on sex tourism.

Before we get carried away, however, by the inappropriateness of our new slogan, let’s take a look with objectivity at the better performing neighboring Southeast Asian countries and see whether the catchiness of their slogans alone catapulted them to where they are right now. Undoubtedly, Singapore, Thailand and Malaysia are this region’s leaders. Singapore brags about its “Uniquely Singapore” slogan. Thailand surprises everyone with its “Amazing Thailand” catchphrase. While Malaysia flaunts immeasurably its “Malaysia. Truly Asia” tagline.  

Looking at these countries’ performances, can we safely conclude that these were all because of their slogans? The answer is a big and deafening “NO”. They fared very well because they made sure the three components for a successful tourism program, such as, (1) product development, (2) adequate infrastructure and (3) promotion and marketing are in place. 

As we have all observed, marketing is well taken cared off. Sen. Richard Gordon started it through his WOW Philippines promotional campaign and Sec. Durano sustained it.   Yet, in 2009 we barely hit 3.0 million tourist arrivals.  

Apparently, therefore, the issue is not more on the slogan or on promotions and marketing. As far as the country is concerned, the big question is, what kind of tourism products are we promoting. Or, more appropriately, is there a good product worth promoting.

Thus, clearly, the key now is for DOT, in coordination with the private sector and LGUs, to develop products and places of interest. Hand-in-hand with other line agencies, this government should take the initiative of making these products and places of interest reachable by providing the much-needed infrastructure. Let us leave the promotions to the private sector. We all know too well that the private sector (especially, hotels, travel and tour organizers), profit-oriented as they are, can always find ways of letting the world know how great our products and spots are.

Indeed, it is true that tourism, despite the global economic crunch, is still a multi-billion dollar industry. However, it largely depends on the availability of patrons’ leisure time and disposable income. Therefore, the industry’s survival solely depends on the moneyed leisure lovers’ willingness to spend. Thus, their preferences are first and foremost in the minds of both major and minor players in the industry. Left undone, we will simply salivate on the prospect of having millions of tourists while our neighboring Southeast Asian countries are feasting on them.

For your comments and suggestions, please email to [email protected]. — THE FREEMAN

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