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Challenges and Opportunities in Philippine Tourism amid the

COVID-19 Pandemic

Article · December 2021

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Challenges and Opportunities in Philippine Tourism amid the
COVID-19 Pandemic
Deoan D. Andulana1, Mayuan T. Calijan2, and Albert C. Albina3*
1,2,3 Negros Oriental State University Bayawan – Sta. Catalina Campus, Bayawan City,
Negros Oriental, Philippines
1 https://orcid.org/0000-0002-1791-0938, 2 https://orcid.org/0000-0002-4672-0228,
3
https://orcid.org/0000-0002-8124-7616
*Email Correspondence: albertalbina@norsu.edu.ph

Abstract
This exploratory study aims to discuss the multifaceted challenges and opportunities
of the Philippine tourism industry during the COVID-19 pandemic. These challenges and
opportunities are organized by following the elements of anti-pandemic strategies in the
COVID-19 Management Framework. Some pressing challenges are the decline in tourism
demand, layoff of workers, demand for online/digital transactions, avoidance of tourists to
occupy hotel rooms used as quarantine facilities, and compliance of disaster management
and control preparedness protocols. However, tourism industry can thrive through ample
opportunities like exploring local tourism, training employees on digital services and on
safety protocols, rebuilding company brand, improving business facilities, adapting to
modern technology, and collaborating with consultants on disaster and risk management.
These challenges and opportunities provide the bases for suggestions and recommendations
to improve policies for future pandemic planning to cushion any potential impact on the
tourism industry.

Keywords: tourism, tourism industry, challenges and opportunities, COVID-19, Philippines

1.0 Introduction 6.5% compared to 5.36 million in 2018. Share

The tourism industry plays a significant role of employment in tourism industries to total
in the Philippine economy and in labor market. employment in the country was recorded at 13.5”
“In 2019, the contribution of Tourism Direct Gross (Philippine Statistics Authority [PSA], 2020a: para.
Value Added (TDGVA) to the Philippine economy 1-2, 7).
as measured by the Gross Domestic Product was When 2019 was about to end, World Health
estimated at 12.7%. The TDGVA amounted to Organization’s (WHO) Country Office in the People's
PHP2.48 trillion [approximately US$ 51.25 million] Republic of China picked up a media statement
in 2019, was higher by 10.8% compared to PHP2.24 on December 31 about cases of ‘viral pneumonia
trillion [approximately US$ 46.29 million] in 2018. of unknown cause’ in Wuhan. Nine days later, the
Employment in tourism characteristic industries WHO reported that a novel coronavirus caused
was estimated at 5.71 million in 2019, higher by such viral pneumonia. The first death caused by the
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

novel coronavirus was then reported on January impacts, effects, implications, and costs brought
11, 2020 (World Health Organization [WHO], 2020). about by the current pandemic towards various
On March 11, 2020, the WHO declared COVID-19 a industries, including tourism. Undeniably, this
pandemic due to its spread and severity. Even with pandemic has altered the usual tourism-related
the massive rollout of COVID 19 vaccines in the activities and services such as travel booking,
Philippines, there have been more deaths reported traveling, hotel accommodation, tours, dining,
daily relative to virus transmission. Community nightlife, and the like. Obviously, these alterations
quarantines and accompanying restrictions are are due to national quarantine measures, non-
still being imposed, thereby affecting the tourism essential business closures, travel restrictions,
industry. border closures, social distancing, and stay-at-
The enormity of the COVID-19 pandemic has home orders that aim to contain and to stop the
severely impacted all industries including tourism widespread of pathogens that carry the highly
which is one of the hardest-hit (Nicola et al., 2020) contagious and deadly virus.
and greatly affected (PricewaterhouseCoopers, A range of scholars have studied the impacts
2020; United Nations World Tourism Organization (Alonso et al., 2020; Hao et al., 2020; Huang et al.,
[UNWTO], 2020). The COVID-19 pandemic 2020; Nicola et al., 2020; PricewaterhouseCoopers,
has undeniably brought organizational and 2020; Uğur & Akbiyik, 2020), effects (Karabulut et
operational disruptions in most, if not all industries, al., 2020; Sharma & Nicolau, 2020), implications
and consequently, in the global economy (United (Nicola et al., 2020; Sigala, 2020; Hu et al., 2020),
Nations Conference on Trade and Development and costs (Qiu et al., 2020) of the current pandemic
[UNCTAD], 2020). The International Labour to tourism and hospitality industry. However, the
Organization estimated that the new coronavirus researcher sees the need to put greater attention
would pose a threat to 25 million workers. This new the discussion about the COVID-19 pandemic
grim evaluation represents the complete or partial on realistic opportunities in the tourism and
lockdown steps impacting nearly 2.7 billion jobs, hospitality industries that go beyond the already
four out of five employees in the world (United established conventions and assumptions in the
Nations News, 2020). In the Philippines, “the Philippine context.
‘unemployment rate in July 2020 was estimated This study provides theoretical and practical
at 10.0%. It was higher than the unemployment insights on how the Philippine tourism industry
rate of the same month a year ago, placed at 5.4%. can be more resilient in addressing organizational
Unemployed Filipinos who are 15 years old and and operational disruptions. It also includes
over were estimated at 4.6 million in July 2020, the challenges carried by health crises like the
higher by 2.1 million compared to the same period COVID-19 pandemic and future phenomena that
a year ago” (Philippine Statistics Authority [PSA], would adversely affect the said industry.
2020b: para. 1). This study contributes to the increasing
The COVID-19 has become the epicenter of literature on the COVID-19 pandemic's challenges
academic research and discussions the world over. to Philippine tourism. Moreover, it provides
Specifically, much attention has been drawn to the practical insights for managers and policy-makers
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

in our tourism industry to respond effectively to Challenges and Opportunities in Philippine

crises and disasters, specifically those that result in tourism amid the COVID-19 pandemic
a standstill of usual operations and massive layoffs The challenges encountered by and the
of employees. Since this study is forward-looking, opportunities available for the Philippine tourism
as highly suggested by Kock et al., (2020) that industry in this time of pandemic are organized in
tourism-related research should not only confirm Table 1 following the elements of anti-pandemic
what is already known but rather investigate how strategies in the COVID-19 Management
tourism could fundamentally be different in a post- Framework (Hao et al., 2020), namely: leadership
COVID-19 era. This paper will contribute to the and communication, human resource, service
policy discussions by offering extensive insights provision, corporate social responsibility, finance,
with the opportunities available for the tourism and disaster management standard operating
industry in the country to thrive. procedure.

Table 1. Challenges and Opportunities in Philippine Tourism Based on the Elements of

Anti-pandemic Strategies

Elements of Opportunities in Philippine

Challenges in Philippine tourism
anti-pandemic strategies tourism
Leadership and • decline in tourism demand • exploration of local tourism
communication • collaboration with external
systems, promoting agri-
tourism and medical tourism
Human resource • layoffs of workers • training employees on digital
services and safety protocols
Service provision • lack of transparency on safety • rebuilding company brand,
and travel insurance improving business facilities,
• rising demand for online/ and adapting to modern
digital transactions technology

CSR • possible avoidance of tourists • building up goodwill

to occupy hotel rooms used as
quarantine facilities
Finance • rising demand for insurance • government subsidies to
and refund options hotels that serve as quarantine
facilities
Disaster management • high demand for disaster • team-up with expert
standard operating management and control consultants on Disaster and Risk
procedure preparedness Management

Note: The elements of anti-pandemic strategies in the first column are based on the COVID-19
Management Framework introduced by Hao et al. (2020). The information contained in the second and
third columns were the ones explored and elaborated by the researchers below.
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2.0 Challenges in Philippine tourism road network of the country to become a major
The decline in tourism demand travel destination. It would lead to the opening of
The Philippines has seen the growth of tourism sites, increase of infrastructure investment,
foreign and domestic travels from 2011 to 2015, creation of employment opportunities, and
with an increase in tourism internal expenditure expansion of small-scale enterprise. The plans are
amounting to PHP2.0 trillion in 2015 from 1.4 placed in a standstill. This COVID 19 pandemic will
trillion in 2011 (Department of Tourism, n.d). With significantly affect the income of tourism shared
the increased income of tourism in the Philippines, to the country's Gross Domestic Product (GDP)
it has been foreseen that the industry will continue (Department of Tourism, n.d). It implies that the
to attract visitors and will be driven to develop in income foreseen by the Department of Tourism
the next coming years. However, the presence of (DOT) for the coming years will also be decreasing.
the COVID-19 pandemic has dramatically changed Therefore, revisiting the National Tourism
the tourism demand in the country. Development Plan for 2016-2022 of the country is
The coronavirus pandemic has reshaped much likely needed.
tourists’ and residents' behaviors, which must be PwC Philippines, together with the DOT,
scrutinized (Zenker & Kock, 2020). This pandemic surveyed 247 decision-makers across different
is expected to affect the tourists' psyche and subsectors in May 2020. Forty-four percent of
considerably change tourism demand (Kock et respondents (i.e., travel agencies, bookings, tours,
al., 2020; Hao et al., 2020). According to previous and other service providers) come from the tourism
studies, tourists prefer to restrict their journeys services sector and 34 percent come from the
due to pressing health threats. In addition, the accommodation sector. According to the survey,
destination's carrying capacity is already being 97 percent say that COVID-19 can significantly
monitored, limiting the number of people who affect their business operations and cause great
can visit a tourist destination simultaneously concern (PricewaterhouseCoopers, 2020).
(Cruz, 2014). In 2019, the Philippines recorded The Philippines received only 1,323,956
8.3 million tourist arrivals and PHP550.2 billion foreign visitors in the year 2020; this is 83.97%
in international tourism receipts. However, lower compared to the 8,260,913 arrivals in the
recent projections show that tourist arrivals and year 2019 (Cordero, 2021). The same significant
international tourism receipts in 2020 would fall decrease was recorded at 83.12% based on total
to 3.9 million and PHP279.5 billion, respectively receipts generated from inbound tourism – from an
(PricewaterhouseCoopers, 2020). estimated PHP482.16 billion in 2019 to PHP81.40
Conversely, the presence of the COVID-19 billion in 2020 (Cordero, 2021). Specifically, Baguio
pandemic has affected the rising demand of the City, dubbed as the country’s tourism capital, was
tourism industry in the Philippines. Both foreign not spared from the ill-effects of the pandemic
and domestic visitors in the country are anxious towards tourism. In year 2020, the city experienced
to travel due to COVID-19. As a result, the demand an unprecedented decline of tourist arrivals of
for travel and leisure has continued to decrease around 82.5% compared to 2019; consequently, an
over time. The government wanted to expand the estimated P7 billion was lost (Llanes, 2021).
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

Layoffs of workers staffing requirements (PricewaterhouseCoopers,

The pandemic mainly affects the tourism and 2020).
hospitality industry, causing many workers to The Philippines’ 2016-2022 National Tourism
lose jobs (Nicola et al., 2020; Hao et al., 2020). The Development Plan requires tourism to create
airline employees, in particular, are among those a globally competitive and environmentally
who are directly affected (Sobieralski, 2020). Due sustainable and responsible social tourism
to pandemic, airlines has been forced to limit the industry. It encourages growth through job
capacity and has petitioned the authorities for opportunities and equitable income distribution,
emergency relief. creating a basis for a highly trusted society.
An estimated 5.7 million people are employed The tourism industry must give relevance to
in the country’s tourism sector. Around 4.8 the mandates in Section 13, Office of Industry
million of this population turned out to be Manpower Development, Chapter 2 of Tourism Act
underemployed or unemployed because of the of 2009 (2009) or Republic Act 9593. Therefore, it
COVID-19 pandemic (Bigtas, 2020). For instance, should develop training modules and undertake
the 314 boat operators who worked in a world- workshops and continuing education programs
renowned UNESCO heritage site, the Subterranean for the workforce of the industry, in collaboration
River National Park in Puerto Princesa, Palawan, with relevant government agencies and tourism
used to earn PHP10,000 – 15,000 per month companies and organizations, to enhance their
(USD200 – 300) (Fabro, 2020). With a maximum of quality, competence, and excellence in tourism
1,200 visitors daily, this site which earned PHP108 services.
million (USD2.1 million) in entrance fees from its However, the mandates are in contrast to the
331,356 visitors in 2019 (Fabro, 2020) was forced to present situation of the tourism industry in the
stop its operation due to quarantine measures and Philippines. Due to the COVID-19 pandemic, many
travel restrictions. Furthermore, most, if not all, of tourism industry staff were laid off for no one would
the 30,000 workers in the world-famous PHP 58.18 visit tourist destinations. As can be seen in Tourism
billion industry Boracay Island were affected by the Act of 2009 (2009) or R.A. 9593, the Department of
economic impact caused by the pandemic (Burgos, Tourism should have prepared separate modules
2021). In addition, some 14,000 hotel workers in El and preparation for workers who have been
Nido, Coron, and San Vicente, Palawan lost their displaced. Thus, training and modules should also
jobs because of the pandemic (Garcia, 2020). be made available to employees who have been
It was not a surprise anymore because only displaced to upgrade the skills required for the
businesses with essential products and services tourism industry.
were given a chance to continue their operations
in the different places in the country during the Lack of transparency on safety and travel insurance
quarantine periods. However, the restrictions and One factor contributing to the downturn in
the risks associated with health and safety during tourism demand is a lack of openness and the
this pandemic have resulted to lower demand insufficient facilities in low-income economies
in the tourism industry, resulting to a change in (Karabulut et al., 2020). Therefore, strict compliance
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

is required with hygiene and precautionary Rising demand for online/digital transactions
measures to safeguard the accommodation The skills required now in the tourism
experience of the customers. It includes complete industry involve adaptability and preparedness in
disinfection, control of food safety, distribution digitalization. The rise in smartphone ownership
of masks, online medical consultation, health and internet access by individuals manifests the
detection of consumers and employees, the rising demand of customers in the digital world
shutdown of laundry rooms, gyms, and other public (Ackehurst & Loveder, 2015; Deloitte Access
area facilities (Hao et al., 2020). These protective Economics & Ministerial Industry Commission,
measures are significant in restoring customers' 2014). In addition, the pandemic sees the need for
trust (Hao et al., 2020; Valle, 2020). smart services to boost both the industry's demand
The tourism industry in the Philippines has and supply. The digital network and innovative
been highlighted as one of the most powerful technology currently support contactless systems.
engines of long-term economic growth (Pilapil- To retain competitiveness in the post-
Añasco & Lizada, 2014). The decline of tourism pandemic, many hotel brands are moving into
demand during the COVID-19 pandemic created digital transformation (Hao et al., 2020; China
a significant impact on the country's economic Hospitality Association, 2020). To deploy workers
growth. The pandemic has resulted to travel and arrange events, hotel owners developed
restrictions across the board through border an effective way to command and control
restrictions and tourism attractions closure. The infrastructure that integrates online office
Department of Tourism (DOT) has gradually technologies, applications, and networks (Hao et
implemented precautionary measures to ensure al., 2020). Adopting this modern technology can
the safety and security of tourists visiting the help stabilize the quality of service, thus increasing
Philippines. customer loyalty and enhancing hotel performance
The Philippines has taken steps to combat (Hao et al., 2020).
the COVID-19 pandemic by issuing Memorandum The Department of Tourism in the Philippines
Circular No.2020-003 and addressing the country's is urging people to switch to electronic and
implementation of community quarantine. The contactless purchases. This is one of the "new
circular stipulates certain guidelines that highlight normal" protocols that must be followed for
"safety-first policy" which aim to safeguard the business to continue in the face of the COVID-19.
well-being of tourists. It also highlights the As a result, the use of modern technology that
policies of “No Mask, No Boarding, and Physical improves the safety protocols is practised. There
Distance”. A thermal scanner, emergency care aid is the application of the industry-driven best
kits, sanitation kits that include alcohol with 70% practices that provides clientele with optimum
solution or hand sanitizer are all requirements in all quality services to ensure customer satisfaction.
public utility vehicles (PUV’s) and tourism business Also, all DOT-accredited establishments are
establishments (Philippine News Agency [PNA], provided with a digital contact tracing SafePass
2020a). seal, health declaration, capacity planning, and
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

incident management solution (Philippine News foreign travellers, retuning OFW’s and Filipino and
Agency [PNA], 2020b). foreign nationals (Philippine News Agency [PNA],
Along with the surge of COVID-19 cases in 2020, 2021). Through this, the hotels not only help the
electronic payments have become increasingly people but also earn revenues through payments
popular, with cash transactions declining. This provided by the government, private businesses
indicates that the use of digital means such as bank and individuals staying in hotel isolation rooms.
transfers and QR codes are dramatically increasing. This action also mitigates the spread of COVID-19
This development reflects consumers' rising trust and ensures safety of Filipinos.
in digital techniques, which is projected to usher in
a coin-free and cashless world (Lucas, 2021). Rising demand for insurance and refund options
Flight insurance covers passengers from
Possible avoidance of tourists to occupy hotel the cancellation of the flight to flight delays and
rooms used as quarantine facilities provides assistance on the loss of luggage and
The Philippine government has tapped the on medical emergencies. During pandemic,
hotels' services in these times of pandemic to people are more particular about insurance and
serve as additional quarantine stations. There are refund options. It was stressed that travellers are
possible negative connotations of hotels that serve commenting on refunding some portion of the
as isolation stations, health facilities extensions, fees and modifying or cancelling travel plans (Uğur
and clinical team dormitories (Hao et al., 2020). & Akbiyik, 2020).
Skeptical customers might avoid them in the post- The Inter-Agency Task Force for Management
pandemic on the issue of hygiene and sanitation. of Emerging Infectious Diseases of the Philippines
Hotel management's decision to allow the has issued Resolution No. 52, which aims to
facilities to be temporarily used as quarantine strengthen adequate travel and health benefits to
stations for returning OFWs exemplifies "corporate cover rebooking and hotel costs if stranded and
social responsibility." The Senate Bill 2747, also hospitalization in case of illness in the amount
known as the Corporate Social Responsibility Act determined by the Department of Tourism. As
(2011), is a mandate of the Philippine government long as the COVID-19 threat is present, arguably,
that every business in the country is responsible individuals will still be afraid to travel even if
for balancing the 3P's: People, Planet, and Profit. It travel restrictions and border closures are lifted.
suggests that enterprises need to rely on income Nevertheless, enhancing of travel and health
and to consider the impact of their actions on the insurance is a welcome development, particularly
environment (planet) and on the workers (people). for those who need to travel for work.
The hotel industry in the Philippines has been The insurance business is facing a surge
very committed in supporting the national efforts in reimbursement demands now (Levantesi &
in prioritizing the public health and safety by Piscopo, 2021). Insurance companies have had a lot
converting hotel rooms into quarantine facilities of pressures from the public to include coverage
to the medical front-liners, business process for pandemics like the COVID-19. At the same time,
outsourcing employees, stranded local and it is an opportunity for the insurance business
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

because people are becoming more interested to cope with the consequences of such a threat.
in purchasing insurance to cover losses from Therefore, disaster preparation that everyone
potential new pandemic waves. They are willing expects is a crucial competency of tourism
to pay significant insurance premiums to have managers. Measurement of preparedness includes
resiliency with greater confidence. On the other awareness of emergency planning, the existence of
hand, the Department of Trade and Industry (DTI) precursors and alert systems, and, ultimately, the
issued Memorandum Circular No. 20-30 on June creation of emergency management and tourism
22, 2020, which outlined procedures for refunding management training and simulations (Ritchie,
events that were cancelled or scaled back due to 2008).
the pandemic. To ensure compliance with the To promote safety and comfort, The Manila
community quarantine's social distancing rules, Hotel, for example, has enhanced its cleanliness
business establishments would scale-down event routines and amenities following Department
to reduce the number of guests. This DTI circular of Health requirements. Ventilation is becoming
covers partial (i.e., down payment, reservation) or increasingly critical in limiting virus transmission as
full payments that may be eligible for a refund. The more information emerge regarding how the virus
DTI Circular further states that if a written contract might be transmitted in air-conditioned indoor
on force majeure exists, it will be acknowledged, environments. In response to the pandemic, the
and in the absence of one, the Civil Code will be Manila Hotel has added extra air filters and UV-C
used as a reference. radiation to a fresh air ventilation duct. It has an air
intake cover and duct fan to give fresh air into the
High demand for disaster management and control common spaces. As part of a system-wide sanitation
preparedness and cleaning drive, the management sanitizes
During this pandemic, the tourism industry rooms now considerably more thoroughly using
faces a challenge in recovering customers' trust EPA-listed disinfectants and UV lights to deep-
regarding many health and safety concerns. In the clean rooms. It frequently cleans air con filters and
first six months of 2020, international visitor arrivals systems and high-temperature linen washes. Their
dropped by 65%, with Asia and the Pacific suffering hotel staff has also received sufficient training in
the most with a 72% drop (UNWTO, 2020 as cited the new safety standards (The Manila Hotel, 2021).
in Kumar & Nafi, 2020). To execute the concept
of mitigation in the face of calamity, various Opportunities in Philippine tourism
structural and non-structural initiatives became Exploration of local tourism and collaboration with
the top priority in community preparedness external systems
(Wahyuningtyas et al. 2020). Effective training, This pandemic is an eye-opener for government
policy, and risk management are required to leaders and business managers to explore the local
reduce the effects (Wahyuningtyas et al., 2020). community's potentials in analysing the demand
With the increasing threat to tourism and supply of the tourism sector. During this
businesses and destinations from natural disasters, pandemic, residents have manifested interests
only a few tourism businesses have been prepared in the tourism destinations in their towns and in
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

other places. This necessitates Local Government Collaboration with external systems, promoting
Units to have a forecast on knowledge of tourist agri-tourism and medical tourism
flow to plan out their budget focused in the local The world is now in a situation where only
tourism development of tourism areas (Velos et resilient and robust leadership can save society
al., 2020). Tourism areas are challenged to become and the economy (Nicola et al., 2020). During this
adaptive to survive in this continually changing crisis, collaborative actions and social bricolage,
environment (Hartman, 2020). requiring coordination among authorities and
Strategic planning and good governance are stakeholders, are necessary for the tourism industry
needed for adaptive tourism to assess new areas' (Zenker & Kock, 2020), Promoting agri-tourism
ability to become viable tourism destinations as and medical tourism are valuable programs that
market demand changes (Hartman, 2016). It is an developing country such as the Philippines can
excellent time to collaborate with the government prioritize to help rebuild the country's tourism
and non-government agencies, especially with industry (Pricewaterhouse Coopers, 2020).
the health systems. In the sense of the COVID-19 The government is encouraging the
pandemic, the local government might be an involvement of the private sector and agri-tourism
avenue for establishing and promoting local to grow rural areas and sustain rural life. Through
tourist sites. Since many local tourists would like the partnership with the private sector, it improves
to visit, Local Government Units would create local the capacity-building of local government units
attractions as trend project. In this case, the LGUs (LGUs) in the management of local tourism
can generate income through the local tourists projects. It ensures reachable and low-cost
and can provide job opportunities for the residents destinations throughout the country, especially
near the tourist site. Through this project, the LGUs in areas that have proven a robust comparative
in the country will have the chance to develop advantage (Tourism Act of 2009, 2009). The World
tourism sites present in their place. Bank reports that about two-fifths of the total land
One example of a local attraction developed area of 300,000 square meters in the Philippines
during this pandemic and made open to the is devoted to agriculture, employing about one-
public in April 2021 was the Santabucks Eco fourth of the country's workforce. Republic Act No.
Adventure. This is located in a hinterland barangay 10816 recognizes the importance of agriculture in
in the Municipality of Sta. Catalina, Negros Oriental. producing food and other agricultural products
Among other things, this site offers a downhill ride to maintain and improve human life and provide
on a coconut palm frond (locally known as palwa), a significant portion of the population with a
giant spider web bouncing net (tied in coconut livelihood (Domingo, 2019).
palms), swing, lovers’ lane, coffee shop, and lovers’ The promotion of agri-tourism in the
elevators allowing someone a 360 degrees view of Philippines can help the people sustain their daily
the surrounding mountains in the area. This is an needs and have income through tourists visiting
ideal place to relax and to unwind since it has a the place. In times of crisis like COVID-19, the most
wide space which allows visitors to observe social important thing is having food on their tables
distancing and an open space that gives them an because they will be harvesting what they have
opportunity to breathe fresh air. planted. Therefore, they can still sustain their daily
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

needs even in the absence of tourists. Agri-tourism locations, including Taiwan, Vietnam, and South
is the process that develops agricultural activities Korea, which successfully flattened the curve
while a tourist is also free to interact. It includes and controlled to reduce the damage to their
diverse agricultural activities such as animal riding economies, are international leaders inside the
and the environment remains natural with fresh combat in opposition to the COVID-19. There
cuisine (Srivastava, 2016). are early indicators in the Philippines that many
One of the many agri-tourism sites which hospitals are going through severe monetary
develops in the country during the pandemic stress, such that a number of them have already
is the Artemio’s Heritage Eco farm in Sibugay, resorted to financial cuts, layoffs, and temporary
Zamboanga. Being owned by a couple, this eco suspension of certain services.
farm continues to make significant improvements. The Philippines is located in one of the most
The eco farm doubly promotes farming and agri- strategic spots in Southeast Asia. The country's
tourism since it is growing papaya and vegetables. tropical climate and the rich natural and human
It also has piggery, poultry, and tilapia pond. When resources, with its beaches and very hospitable
the COVID situation in the area permits, the couple and compassionate medical staff, are other
is planning to open to the public its campsite and significant factors why the country made it to the
restaurant (Taculao, 2021). list of medical tourist destinations compiled by
On the other hand, the country could use the International Healthcare Research Center and
this pandemic as an opportunity to improve its Medical Tourism Association, peaking at number
medical health sector. The Philippines is among the eight back in 2015 (Grajo et al., 2018). The challenge
Asian countries involved in medical tourism with now is to get the government's full support for the
Thailand, Singapore, India, and Malaysia. Since new needs of the country's health industry to maximize
medical and health technologies have allowed its potentials in the medical tourism program.
patients greater leeway in sourcing care and are It is now high time for the Philippine
not restricted to their residential cities and towns, government to work closely with the medical
medical tourism is becoming a norm. In addition, institutions and to invest effectively in health
as airfare has become more affordable and less facilities identified by health experts. Looking at
expensive medical care of comparable quality has the best practices of the neighboring countries in
become available in middle-income countries, dealing with the COVID-19, good public-private
patients have become open to traveling for care collaborations in the health sector are critical
with their families. Concerning the countries ingredients for their success. This is with emphasis
of origin of medical tourists and their leading on adopting knowledge dissemination and
competitors in Asia, the Philippines is very price- communication tracing technologies, with less
competitive (Picazo, 2013). emphasis on punitive lockout steps (Mendoza,
However, this clinical tourism program 2020). The government must also set aside their
affects how the authorities handle the COVID-19 political agenda to be more united in fighting this
pandemic and the different Asian international pandemic. As stressed in the recent debate in the
locations. Early proof shows that international United Nations, this pandemic requires collective
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

action to tackle shared threats and "vaccine and understanding inspire the implementation
multilateralism" to combat the coronavirus (UN, of safety criteria and protocols. In addition, deep
2020). alignment with safety behaviours that encourage
The Provincial Tourism Unit of Negros Oriental further learning is not stagnant. It is but a constant
has opened various tourist sites that the local activity, as workers further review their perceptions
community can visit. It is also one way of dealing of danger and safety procedures. Via three
with mental health challenges that occur during management practices: security, advancement,
the quarantine period. In addition, the province and engagement, managers will show their sincere
is fully implementing the health and social dedication to employee safety in the workplace
distancing guidelines by ensuring strict adherence (Hu et al., 2020), which subsequently benefits the
to the destination's carrying capacity, reducing the customers and the entire company.
number of local visitors entering the area.
Rebuilding company brand, improving business
Training employees on digital services and safety facilities, and adapting to modern technology
protocols The pandemic crisis allows businesses to revisit
To accept changes promoting multi-business their business model and marketing concept.
and multi-channel channels, hotels, and leisure The tourism industry can update or upgrade its
companies should begin engaging in workforce systems to create a brand that fits the digital
training for digital functions, support personnel civilization era. They should invest more in online
development, and job versatility (Hao et al., 2020). and cashless transactions and in digital marketing
The use of digital technologies will help the within the tourism industry. They should consider
Philippines restart tourism activities and operations the maximum benefits of the internet in sending
in the new normal. The tourism enterprise needs to products and messages to the market. Stories
implement digital transactions to ensure customer of customers posted online are very critical in
confidence towards their health, safety, and branding the business. Experiences of satisfied
security as per the Department of Tourism (Asian customers shared online create a positive image of
Development Bank, 2020). the company and establish trust and confidence,
The Department of Tourism has enforced the especially if the company passes international
country's tourism establishment to adopt health safety and quality accreditations. Also, sending
and safety protocols by contactless and cashless clear messages on health and safety measures
transactions (Asian Development Bank, 2020). With helps visitors feel safe at various attractions,
the use of digital services, the Philippines' tourism restaurants, or tours. This can be a significant factor
industry can bounce back to its operations. It just in tourists' decisions.
needs to ensure that both foreign and domestic The infusion of modern technologies and
visitors adhere to the government's health and applications in hospitality management and travel
safety protocols. operations is no longer a choice these days. It
Experience and profound compliance that is considered necessary to remain competitive.
integrate improvements in workers' knowledge The Travel Pulse has shared how post-COVID-19
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

pandemic technologies would reshape the hotel further to explore agripreneurship in their homes
industry. About every part of the hospitality during the pandemic.
experience can now be reached in the visitors’ Moreover, the company provides a series of
mobile devices, provided that hotels have online talks and webinars to equip employees
embraced the right software. Scanning QR codes, through knowledge support. It has online
contactless hotel check-in features, smartphone 'Kumustahan sessions' with team members to
room keys, touchless transactions, in-app check on their emotional and mental health. Other
shopping, and scheduling appointments may now services include re-skilling training through mini-
be used to replace physical restaurant menus and training, cross-training, and multitasking mindset.
paper in-room compendiums (Baratti, 2020). The management has prioritized employees' and
In terms of facilities, the tourism sector customers' safety and introduced the tag line,
focuses on specific priority areas, including the "Your safety is Gold." The company also came up
spacious rooms' layout, the ventilation, cleaning with more hashtags such as "Golden Prince cares!
and disinfection procedures, and complete We heal as one!"
emergency facilities (e.g., the first aid kit and Golden Prince Cebu has also adopted
emergency exits), safety and health measures, and advanced technology in observing safety and
green consumption and environmental protection health protocols in its daily operations, such as
measures (Hong et al., 2020). In addition to the basic using the significant investment in Automated
specifications of global guidelines, the internet Thermal Scanning technology and touch-free
provides several possibilities for operating back-of- sanitizers and advocating on locally-developed
house operations and streamlining organizational contact tracing apps. The hotel has also made
complexities such as organizing housekeeping new room service positioning, introducing the
processes, assigning personnel roles, and verifying 'Work-from-Hotel' concept and 'Self-Care Stay.' In
compliance with recently strengthened cleanliness addition, the company has observed enhanced
standards (Baratti, 2020). housekeeping cleaning standards and an
One of the most innovative companies in the automated ordering system for food services using
Philippine Tourism industry is the Golden Prince mobile apps to view menus and to take orders.
Hotel and Suite in Cebu City. Golden Prince was It has also promoted cashless transactions with
able to take its business model to the next level digital payment gateways like Gcash, Paymaya,
during the pandemic. The company earned high Paypal, and more. Furthermore, for events and
praises, especially from the DTI, for being one of the functions, the company has resorted to pocket
first businesses in Region 7 to have prepared for the events, virtual training activities, and more intimate
pandemic. The company has established some pre- gatherings with changes in their floor layouts to
COVID-19 best practices, including the company- observe proper distancing among attendees and
wide awareness campaign with the Department assisted buffet services with protective shields.
of Health during the year’s first quarter. It also This pandemic pushes the industry to employ
distributed safety kits to its employees during mobile and self-service technologies for more
the pre-quarantine send-off and awarded a grant efficient and effective operations management.
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

There is also an emphasis on the importance of In the Philippines, the Bayanihan Act of 2020
having strong ties with health insurance companies is granting powers to the President to reallocate
in the tourism industry and strengthening US$5.37 billion to fight against COVID-19. This
government commitment in the public-private includes the accommodation of Overseas Filipino
partnership to facilitate more projects and Workers (OFW) flying back to the country amidst
programs in health and tourism. COVID-19. Through this, the accommodation
sector can still gain income while the government
Building up goodwill will shoulder the expenses for the hotel rooms to
The consistency in providing accommodation be used for the 14 days quarantine of the OFWs.
services even during the pandemic shows In May 2020, Senator Juan Miguel Zubiri
commitment to the hospitality industry. Hotels introduced to the Senate of the Philippines Senate
that are used as quarantine stations during this Bill No. 1558, which is the planned Philippine
pandemic may have earned respect from the Economic Stimulus Act (PESA) for the country’s
community. This is a win-win situation between the growth and development in the aftermath of
hotel and dormitory establishment since they can COVID-19 and providing funds therefore. This Act
still gain income amidst the COVID-19 pandemic. calls the Department of Tourism to assist critically
Proper implementation of safety and sanitation impacted businesses that are DOT-accredited
protocols must be observed throughout. tourism enterprises in any of the following
On the other hand, the government can save programs: (1) interest-free loans or issuance
expenses since it will no longer build infrastructure of loan guarantees with terms of up to five (5)
for isolation purposes. Instead, it can use the saved years for maintenance and operating expenses;
amount to help Filipinos who are affected by (2) credit facilities for upgrading, rehabilitation,
the pandemic. Furthermore, the competence of or modernization of current establishments or
companies to handle adequately their employees facilities to be compliant with new health and safety
and customers in this crisis reinforces their standards; (3) marketing and product development
brand and builds goodwill among their staff and promotions and programs; (4) grants for education
customers. training, and advising of tourism stakeholders for
new normal alternative livelihood programs; (5)
Government subsidies to hotels that serve as utilization of information technology; and (6) other
quarantine facilities relevant programs, including infrastructure to
The local government provides subsidies to mitigate the economic effects of COVID-19 on the
hotels that serve as quarantine stations during the tourism industry” (Philippine Economic Stimulus
pandemic. With the increased number of infected Act [PESA], 2020).
cases that lead to the shortage of hospital beds, Republic Act No. 11494 provides funds to
many hotels have been used as accommodation industries in the Philippines affected by the
facilities for medical staff, construction workers, COVID-19 pandemic. This includes the tourism
and patients (Hao et al., 2020). This action can be businesses which could avail of the loan assistance
a win-win situation between the government and provided by the government, cash-for-work
the industry. programs, and the unemployment and involuntary
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

assistance for the displaced workers or employees Team-up with expert consultants on Disaster and
in the tourism sector. In the case of Negros Risk Management
Oriental, Philippines for instance, the Department The first step is to formulate an effective and
of Tourism (DOT) has allocated PHP11.840 million accountable team for disaster management and
as monetary assistance for a total of 2,368 workers appoint a team leader (Faulkner, 2001 as cited
from the tourism industry sector in the province in Hao et al., 2020). In the tourism context, risk
(Partlow, 2021). Of the total allocation, PHP6.815 management is the planning and implementation
million has been disbursed, covering 1,363 process for which it is directed towards managing
beneficiaries from 254 establishments, records contrary effects of crisis and disasters/calamities
showed. The financial aid is funded by the DOT on tourism (Ural, 2016).
with the Department of Labor and Employment Collaborating with expert consultants on
(DOLE) facilitating the beneficiaries' applications making Disaster and Risk Management Plan
under the Covid-19 Adjustment Measure Program for the Tourism Industry in the Philippines will
II (CAMP II) for DOT-accredited establishments. provide solutions to problems such as pandemic
Using other provisions of this Act to obtain grants, like COVID-19. It will minimize its effects on the
loans, or loan guarantees does not disqualify a industry and mitigate job opportunities for people
tourism enterprise from receiving economic relief. employed in Tourism. Likewise, this should be
The DOT will give preference to businesses that included in the formulation of the National Tourism
support the Balik Probinsiya, Bagong Pag-Asa Development Plan and needs to be mandated in
Program and follow the DOH's requirements to the Republic Act 9594 (Tourism Act of 2009).
ensure a sufficient and timely supply of health care This pandemic serves as a wake-up call
services. for the government and industry to be more
According to interim standards, only stringent in their disaster risk reduction and
facilities with legitimate Department of Tourism control systems deployment. The Philippine
accreditations were permitted to operate during Disaster Risk Reduction and Management Act of
the peak of the lockdown in the Philippines,. These 2010 require that each level of government form
hotels are either employed as quarantine hotels a DRRM Council, which acts as the first responder
or approved as places for staycations per interim to disasters and is at the forefront of DRRM in their
regulations. As quarantine hotels, they house geographical jurisdiction. According to a May 2020
guests who may have been exposed to the virus report from the National Disaster Risk Reduction
or become isolation facilities for COVID-19 positive and Management Council, numerous MDRRMCs
guests. Hence, the Department of Tourism with have prepared Memorandums of Understanding
its tourism response and recovery plan (TRRP) for further isolation areas/quarantine facilities
brings together several government departments to various hotels in their respective regions
to help the tourism industry in the country devise (NDRRMC). Stranded tourists in different areas of
new business strategies with health and safety the country, including Puerto Princesa, Palawan,
measures in its entire service delivery (Aquino et and Boracay, have received prompt assistance from
al., 2021). their local DRRMCs. Local governments and private
2021 A n d u l a n a , Ca l i j a n , & A l b i n a

companies worked together on risk management Economic implications

and control measures (NDRRMC, 2020). This paper offers several factors affecting
demand and supply in the Tourism sector which
3.0 Implications both the government and the industry should
Theoretical implications consider. Furthermore, it highlights proper
This paper provides additional support to government regulations and financial support in
the theory of complex adaptive systems (CAS). preserving the economic system.
This pandemic has brought many challenges and
inconveniences globally. However, it can also be 4.0 Conclusion
perceived from a different perspective, focusing The Tourism industry worldwide is vastly
on opportunities. The idea of Adaptive tourism affected by the COVID-19 pandemic, including
emphasizes the creativity and flexibility of the the Philippine Tourism industry. Travel bans and
Tourism sector, which are essential to sustain its other quarantine measures prevent tourists and
operations in a dynamic environment. residents, especially minors and senior citizens,
from being exposed in public places, thus affecting
Managerial implications demand. These changes are expected to have a
The COVID-19 pandemic puts businesses to long-term effect on customers' behavior involving
the test, where only resilient and robust leadership their preferences and buying decisions (Hao et al.,
can endure the challenges and see opportunities. 2020; Kock et al., 2020). Businesses in the tourism
By being aware of the present challenges and industry, like in travel and leisure, face significant
opportunities in the Tourism industry during this challenges in having strategies to continue their
pandemic, business leaders and managers can business with the strict implementation of social
revisit their business model and develop innovative distancing policies and safety precautions set by
strategies to sustain their business operations and WHO and the national and local government.
maintain social responsibilities. With low demand and many restrictions affecting
the operations of the Philippine Tourism Industry,
Practical implications only those who are resilient can survive with a
This paper is forward-looking. By properly strategic approach and innovative practices for
recognizing opportunities available for the the new normal. Proactive institutions use these
Tourism industry, particularly in the Philippines, challenging times as an opportunity for them to
the government can consider making policies to revisit their business model, renovate facilities,
strengthen local tourism and to help the locals remove unnecessary costs, and organize upskilling
survive challenging times. Moreover, ample and programs for their key workers. This study
clear opportunities provide a bigger chance highlights the significance of adaptive tourism
for improved productivity among firms and and how it fits into the current state of the country.
individuals. It mentions various aspects of the country's
 R e co l e to s M u l t i d i s c i p l i n a r y R e s e a rc h J o u r n a l D e ce m b e r

policies and regulations that have an impact Ethical approval

on local tourism enterprises. It also emphasizes No ethical approval is required.
the digitization of processes, the demand for
travel insurance, and other services. Aside from Sources of funding
theoretical and managerial implications, it involves This research was funded by Negros Oriental
economic repercussions such as the loss of income State University under Memorandum of Agreement
in the community for employees and workers in R.I.D.E. Project No. 2021-32.
the tourism sector. This paper can be a valuable
reference for future studies relative to the effects of Declaration of competing interest
COVID-19 on the Tourism industry. However, the The authors of the correspondence declare
researchers acknowledge that there is a vacuum in that they have no known competing financial
the scientific analysis as to the amount to which it interests or personal relationships that could have
will affect the overall industry, especially that the influenced the work reported in this paper.
crisis is still ongoing. This paper has the following
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