(Contributed by EYLLA LAURE GUTIERREZ, JOHN PAUL RIVERA and FERNANDO MARTIN ROXAS)
The growth of Philippine tourism prior to the coronavirus (COVID-19) pandemic has been primarily generated by domestic tourists. In 2019, Filipinos spent ₱3.1 trillion travelling within the country, contributing to about 80 percent of total tourism receipts. Despite this stellar contribution to the Philippine economy, tourism has been gravely challenged by the measures used to manage and contain the spread of the virus.
Arguably, the pandemic revealed the systemic issues plaguing Philippine tourism. For one, it is still considered a fragmented industry where each value chain member functions independently from each other — where accommodations, food and beverage, and transportation players work at arm’s length from each other. Second, Philippine tourism continues to suffer from poor connectivity, lacking transportation and communication infrastructure. Therefore, the successful recovery of the industry necessitates tackling these systemic issues in preparation for a better normal.
The COVID-19 pandemic, as an unparalleled crisis, requires recovery measures that challenge existing mindsets and business models. Thus, we propose several recommendations pertinent to the reopening of tourism activities across the country.
First, stakeholders should now re-think tourism products and services that will compel the diversion from mass to sustainable tourism. Part of this effort is optimizing small networks or “bubbles.” This will allow more travel vendors, particularly the micro, small, and medium enterprises to participate in the market and sustain livelihoods. With small networks, tourism suppliers can redesign their offerings into customizable products and services that will appeal to specific target segments. Rather than catering to larger parties, tour operators can split them and employ more guides to take them around in a more leisurely pace.
Second, the pandemic calls for tourism stakeholders to re-design the value chain, specifically its fragmented nature. We need to promote a value chain strategy rather than a destination strategy. The industry needs to pay attention to how different value chain members (e.g., accommodations, food and beverage, transportation, souvenirs, tour guiding) can cooperate to provide a seamless and enhanced tourists’ experience while creating livelihood for local communities. This requires engaging local communities, including women and indigenous peoples, to help recreate local offers and in welcoming the new wave of visitors coming to destinations. Cooperation of value chain members is critical in regaining local visitor’s travel confidence and trust.
Third, there is a need to modify products and services to address the reshaped interests and priorities of visitors. Travelers are now willing to travel to multiple destinations with the prospects of extending their trips, as shown in the survey conducted by the Department of Tourism, Asian Institute of Management – Dr. Andrew L. Tan Center for Tourism, and Guide to the Philippines. It is high time to disperse travelers to the many untapped destinations in the country.
In relation to the previous recommendation, the concept of island bubbles as travel destinations comes to the fore. Professor Rene T. Domingo of the Asian Institute of Management points out that safely reopening “one island bubble at a time” makes perfect sense. Because the spread of the virus knows no borders, it is sensible to put destinations in a bubble enclosed by geographical borders. This can be implemented in relation to the existing tourism circuits marketed by the DOT. As Domingo enumerated, island destinations such as Boracay can be an ideal bubble, together with peninsulas such as Bicol, and mountainous destinations such as the Cordilleras. Instead of utilizing established administrative regions, it makes management sense to take advantage of natural borders.
With the recent developments in infection rates and emerging new variants, we continue to emphasize that we cannot rush tourism recovery. It must be done in phases – slowly but surely. Until the pandemic is fully arrested, herd immunity achieved, planning for the return of travel and tourism to pre-pandemic situation is futile. The pandemic has rendered existing business models of tourism obsolete, and it warrants new and novel ways of doing tourism.