Factors associated with domestic tourism in the Philippines

Date

2012-04

Authors

Nogaliza, Janel D.
Trajano, Christine Mae N.

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Abstract

Tourism plays a vital role in the economy as exhibited by other countries. In addition to bringing in more investments and tourism receipts to the local economy, tourism boosts employment opportunities. It is important to identify the various determinants of tourist arrivals to help promote the tourism industry. Through pooled cross-section and time series (200 1 - 201 0) on the 14 regions of the Philippines (except NCR and ARMM), our results show tourist arrivals' responsiveness to certain factors. In this paper, we aim to examine the effects of such factors on tourist arrivals per region over the indicated 1 0-year period. We also try to draw implications for policy that would give a boost to domestic tourism that benefits the local economy. Using random effects panel-data analysis, a comprehensive examination of the results will be presented confirming the robust relationship of the number of domestic tourist arrivals to four of the explanatory variables that consistently appear to be significant in the regressions. These explanatory variables are relative prices, gross domestic regional product, population density, and land area.

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Keywords

Domestic tourism, Determinants

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