Global financial crisis has severely hampered the consumer spending power; as a result, the inflow of tourists in the Philippines slumped drastically during October 2008.
The inflow of tourists from key markets such as South Korea, China and Japan to the Philippines slowed down in the month of October 2008, according to the figures released by the Department of Tourism, as reported by EasyBourse.
Tourist arrivals from South Korea, which has emerged as the biggest tourist market for the Philippines, declined by 9.4% on year to 45,007 in October 2008. China’s contribution to the Philippines tourism industry in terms of tourist arrivals plummeted 15% on year and that of Japan 9.1% on year. As per the available figures, the total foreign tourist arrivals in the country during October 2008 were recorded at 241,809, almost equal to 241,745 that were recorded in October 2007.
The main reason for decline in the tourist inflow is the global financial meltdown that severely dampened consumer sentiments leading to reduction in tourism spending. Japan and South Korea are two top markets that represent a significant proportion in the total foreign tourist arrivals to the Philippines, but the confidence level of people in both the countries is very low.
Besides, the Philippine hospitality industry that comprises hotel, travel and other industries is the most expensive compared to other Asian countries; this factor further restrained visitors from coming to the Philippines.
The downward trend of tourist arrivals is expected to continue in coming few months. The US representation in arrivals is projected to come down by the end of 2008 and the first half of 2009.
However, the Philippine government is taking all necessary measures to boost the tourist inflow by focusing its marketing campaigns and efforts on the neighboring countries because the growth in number of travelers in these countries is expected to be strong despite the financial crisis.
According to a Research Analyst at RNCOS, “The Filipino tourism industry is passing through a tough phase as the foreign tourist arrivals dropped amidst unfavorable business conditions. As the hotel prices are relatively higher in the Philippines than other Asian countries, the government should encourage construction of new hotels and other tourism-related establishments. Construction of new hotels will spur price competition and increase the availability of rooms, which, in turn, will push the foreign tourist arrivals in the country.”
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