The impact of government failure on tourism in the Philippines

While the Philippines aspires to be one of the top tourist destinations in Southeast Asia, self-inflicted wounds like the failure of the government to comply with international aviation safety standards may derail the country from achieving its goals. This article estimates the short- and long-term...

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Main Authors: Manuela, Wilfred S, Jr, de Vera, Manuel J
Format: text
Published: Archīum Ateneo 2015
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Online Access:https://archium.ateneo.edu/leadership-and-strategy-faculty-pubs/2
https://www.sciencedirect.com/science/article/pii/S0967070X15000724#!
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Institution: Ateneo De Manila University
id ph-ateneo-arc.leadership-and-strategy-faculty-pubs-1001
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spelling ph-ateneo-arc.leadership-and-strategy-faculty-pubs-10012020-06-06T02:42:08Z The impact of government failure on tourism in the Philippines Manuela, Wilfred S, Jr de Vera, Manuel J While the Philippines aspires to be one of the top tourist destinations in Southeast Asia, self-inflicted wounds like the failure of the government to comply with international aviation safety standards may derail the country from achieving its goals. This article estimates the short- and long-term impact of the US FAA downgrade of the Philippine civil aviation system in 2008 and the EU ban of Philippine carriers in 2010 on tourist expenditures, arrivals, and length of stay using monthly time series data. The econometric model, consisting of three equations due to the endogeneity of the tourist arrivals and length of stay variables in the tourist expenditures equation, is estimated simultaneously using the generalized method of moments. The results indicate that the US FAA downgrade and the EU ban impact monthly tourist receipts negatively in the short term while the downgrade also impacts tourist expenditures in the long term. Moreover, the ban impacts length of stay negatively in the short and long term while the downgrade impacts length of stay negatively only in the long term. The substantial decline in tourism receipts from 2008 to 2010 despite an increasing trend in tourist arrivals is due to the shorter stay of tourists, indicating that high-spending tourists have not returned following the downgrade and ban. 2015-01-01T08:00:00Z text https://archium.ateneo.edu/leadership-and-strategy-faculty-pubs/2 https://www.sciencedirect.com/science/article/pii/S0967070X15000724#! Leadership and Strategy Faculty Publications Archīum Ateneo Tourism Air transport safety US FAA downgrade EU ban Strategic Management Policy Tourism and Travel
institution Ateneo De Manila University
building Ateneo De Manila University Library
country Philippines
collection archium.Ateneo Institutional Repository
topic Tourism
Air transport safety
US FAA downgrade
EU ban
Strategic Management Policy
Tourism and Travel
spellingShingle Tourism
Air transport safety
US FAA downgrade
EU ban
Strategic Management Policy
Tourism and Travel
Manuela, Wilfred S, Jr
de Vera, Manuel J
The impact of government failure on tourism in the Philippines
description While the Philippines aspires to be one of the top tourist destinations in Southeast Asia, self-inflicted wounds like the failure of the government to comply with international aviation safety standards may derail the country from achieving its goals. This article estimates the short- and long-term impact of the US FAA downgrade of the Philippine civil aviation system in 2008 and the EU ban of Philippine carriers in 2010 on tourist expenditures, arrivals, and length of stay using monthly time series data. The econometric model, consisting of three equations due to the endogeneity of the tourist arrivals and length of stay variables in the tourist expenditures equation, is estimated simultaneously using the generalized method of moments. The results indicate that the US FAA downgrade and the EU ban impact monthly tourist receipts negatively in the short term while the downgrade also impacts tourist expenditures in the long term. Moreover, the ban impacts length of stay negatively in the short and long term while the downgrade impacts length of stay negatively only in the long term. The substantial decline in tourism receipts from 2008 to 2010 despite an increasing trend in tourist arrivals is due to the shorter stay of tourists, indicating that high-spending tourists have not returned following the downgrade and ban.
format text
author Manuela, Wilfred S, Jr
de Vera, Manuel J
author_facet Manuela, Wilfred S, Jr
de Vera, Manuel J
author_sort Manuela, Wilfred S, Jr
title The impact of government failure on tourism in the Philippines
title_short The impact of government failure on tourism in the Philippines
title_full The impact of government failure on tourism in the Philippines
title_fullStr The impact of government failure on tourism in the Philippines
title_full_unstemmed The impact of government failure on tourism in the Philippines
title_sort impact of government failure on tourism in the philippines
publisher Archīum Ateneo
publishDate 2015
url https://archium.ateneo.edu/leadership-and-strategy-faculty-pubs/2
https://www.sciencedirect.com/science/article/pii/S0967070X15000724#!
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