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    The Effects of COVID-19 On The Tourism and Hospitality Industry in Ilocos Norte and How To Potentially Combat Them

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    Maryam Balanon
    The COVID-19 pandemic had severe negative effects on the tourism and hospitality industry in Ilocos Norte, Philippines. Hotels saw a large increase in cancellations which resulted in lost revenue and unemployment. The province's tourism industry suffered an estimated PHP14.8 billion loss in expected tourist receipts. To help revive the struggling industry, the document proposes promoting lesser known tourist attractions in Ilocos Norte to domestic tourists and a gradual reopening to international tourists once restrictions are lifted further.

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    The Effects of COVID-19 On The Tourism and Hospitality Industry in Ilocos Norte and How To Potentially Combat Them

    Uploaded by

    Maryam Balanon
    91 views4 pages
    The COVID-19 pandemic had severe negative effects on the tourism and hospitality industry in Ilocos Norte, Philippines. Hotels saw a large increase in cancellations which resulted in lost revenue and unemployment. The province's tourism industry suffered an estimated PHP14.8 billion loss in expected tourist receipts. To help revive the struggling industry, the document proposes promoting lesser known tourist attractions in Ilocos Norte to domestic tourists and a gradual reopening to international tourists once restrictions are lifted further.

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    The Effects of COVID-19 on the Tourism and Hospitality Industry in Ilocos Norte and How to Potentially Combat Them

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    The COVID-19 pandemic had severe negative effects on the tourism and hospitality industry in Ilocos Norte, Philippines. Hotels saw a large increase in cancellations which resulted in lost revenue and unemployment. The province's tourism industry suffered an estimated PHP14.8 billion loss in expected tourist receipts. To help revive the struggling industry, the document proposes promoting lesser known tourist attractions in Ilocos Norte to domestic tourists and a gradual reopening to international tourists once restrictions are lifted further.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    91 views4 pages

    The Effects of COVID-19 On The Tourism and Hospitality Industry in Ilocos Norte and How To Potentially Combat Them

    Uploaded by

    Maryam Balanon
    The COVID-19 pandemic had severe negative effects on the tourism and hospitality industry in Ilocos Norte, Philippines. Hotels saw a large increase in cancellations which resulted in lost revenue and unemployment. The province's tourism industry suffered an estimated PHP14.8 billion loss in expected tourist receipts. To help revive the struggling industry, the document proposes promoting lesser known tourist attractions in Ilocos Norte to domestic tourists and a gradual reopening to international tourists once restrictions are lifted further.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    The Effects of COVID-19 on the Tourism and

    Hospitality Industry in Ilocos Norte and How to Potentially Combat Them

    Term Paper Submitted in Partial Fulfillment of the Requirements on Basic Microeconomics (Ecn 21)
    Mariano Marcos State University
    November 2020
    Introduction
    The COVID-19 is a disease caused by a newly discovered coronavirus that is contagious. Most
    individuals infected with it will undergo mild to moderate respiratory illness and recover without special
    treatment being needed. When an infected individual coughs or sneezes, the virus spreads primarily
    through droplets of saliva or discharge from the nose. Because of it, many are affected and that includes
    our business industries. In this paper, the focuses are the hospitality and tourism industry.
    The world was not ready when COVID-19 struck, but there were solutions: restrictions.
    Restricting the public meant creating rules, regulations, and policies that would protect the people and
    prevent the virus from infecting more and more people. With these new rules, the term New Normal
    emerged once again, and it affected the whole world.
    Economies all around the globe get boosted by their tourism and hospitality industries, but with
    their recent paralysis due to travel bans, most economies went stagnant. It is important to address the
    impact that the virus had in order to arrive at potential solutions, and this paper aims to impart in that.
    In this way, not only will it acknowledge the repercussions on Ilocos Norte, but it will also contribute
    in representing the whole country of the Philippines.

    The Effects of COVID-19 on Tourism and Hospitality Industry


    The rapid increase in the spread of COVID-19 led to the contrasting drop of consumer demand;
    no one was allowed to go outside, hence not much can be consumed and demanded other than essential
    household items. The crisis affects both demand and supply at the same time, because usually, when
    there is less demand, there is also less supply. Nonetheless, the aftermath is pretty much uncertain,
    specifically in terms of the longer-term price index. In a hypothetical point of view, a decrease in
    demand results in a decrease in price but, a decrease in supply results in a rise in price. Focusing on the
    hospitality and tourism industry, they are both types of good and services. Due to the COVID-19 crisis,
    the low demand and supply provoked a low production and sales rate that resulted to stagnation and
    bankruptcy, which then led many business owners to resort to closing their doors to the public. This
    entails the unemployment of numerous citizens, thus, decreasing the employment rate. Biwota (2020)
    revealed that COVID-19 has increased cancellations of hotels and travel bookings that resulted in
    revenue loss and unemployment situations, resulting in the loss of substantial revenue to the government
    and increasing incidence of poverty among others. According to the latest issue of the UNWTO World
    Tourism Barometer, Asia and the Pacific, the first region to suffer the impact of the pandemic, saw a
    79% decrease in arrivals in January-August 2020. Among many countries in Asia is the Philippines,
    which has its tourism as one of the major contributors to its economy. In 2019, the travel and tourism
    industry contributed 12.7% to the country's GDP.
    In the northwestern part of the Philippines lies the Ilocos Region, and it is where we can find
    the province of Ilocos Norte. The province has its reputation as one of the top tourist destinations in the
    Philippines, with a UNESCO World Heritage-listed tourist spot and with tourist arrivals reaching its
    peak during the Holy Week. A report by the Ilocos Norte Tourism Office (INTO) declared that there
    was a 208% rise in tourist arrivals during the Holy Week in 2019.
    The effects of COVID-19 can be observed in the province’s tourism and hospitality industry,
    with numerous hotels having noted a dramatic surge in cancellations for reservations. Furthermore,
    several locations were completely locked down, which in turn slowed down the development of the
    industry. Things also took quite a turn when Governor Matthew Marcos Manotoc of the province of
    Ilocos Norte signed the Executive Order No. 60-20 that placed the province under community
    quarantine on March 14, 2020. This resulted to the banning of entry and exit through the province,
    therefore resulting to a rapid halt in industries that heavily relied on tourism and hospitality. The local
    tourism industry has an estimated loss of PHP14.8 billion based on estimated tourist receipts due to the
    pandemic, according to the INTO, relative to tourist arrival data for the same time in 2019.
    As of Oct. 9, 2020, 208 hotels and resorts in Ilocos Norte have been given certificates of
    authority by the Tourism Department, and in a positive turn of events, the province reopened its tourism
    industry to people from Luzon on October 15, 2020.

    Plan of Action
    One marketing technique designed to target the population of a particular city is called
    “Hyperlocal”. In short, it is the domestic market that is being encouraged to try out different things that
    could boost up and reawaken the tourism and hospitality industry. While it may not be a fast way to
    recover, it will surely kickstart the progress as international tourism is still not fully opened at this point.
    Reviving the industry could start by promoting lesser known, but breathtaking areas of the
    province like the Pungaw Falls in Nueva Era, the Sentinela Hill in Bangui, the Watch Tower in
    Currimao, and the Sea of Clouds in Vintar. This way, they will be killing two birds with one stone –
    gradually boosting the tourism, which will then contribute to the larger economy of the country, and
    adding new tourist spots to the long list of reasons to visit the province. In the short term, domestic
    tourism is expected to accommodate the sector until international tourism opens back up.

    References
    Adriano, L. (2019, April 25). Ilocos Norte tourist arrivals reach 600K during Holy Week. Retrieved
    from Philippine News Agency: https://www.pna.gov.ph/articles/1068185

    Adriano, L. (2020, October 16). Local tour guides welcome tourists in Ilocos Norte. Retrieved from
    Philippine News Agency: https://www.pna.gov.ph/articles/1118738

    Adriano, L. (2020, November 24). More Laoag sub-villages locked down. Retrieved from Philippine
    News Agency: https://www.pna.gov.ph/articles/1122751
    Bianchi, D. L. (2020). Economic theories on COVID-19’s impact on hospitality and tourism. Retrieved
    from EHL Insights: https://hospitalityinsights.ehl.edu/economic-theories-covid-impact-
    hospitality-tourism

    Biwota, S. M. (2020, August 26). The Impact of COVID -19 Pandemic on Hospitality (Tourism&
    HotelSector) and Mitigation Mechanism in Ethiopia review. Agri Res & Tech: Open Access J.

    DOT. (2018). Welcome to Ilocos Norte. Retrieved from Department of Tourism Philippines:
    https://philippines.travel/destinations/ilocos-norte

    DOT. (2020, October 9). DOT welcomes reopening of Ilocos Norte to Luzon tourists on Oct 15.
    Retrieved from REPUBLIC OF THE PHILIPPINES DEPARTMENT OF TOURISM
    Kagawaran ng Turismo:
    http://www.tourism.gov.ph/news_features/DOTreopeningIlocosNorte.aspx

    Geducos, H. T. (2020, October 9). Ilocos Norte welcomes back tourists starting Oct. 15. Retrieved from
    Manila Bulletin: https://mb.com.ph/2020/10/09/ilocos-norte-welcomes-back-tourists-starting-
    oct-15/

    PGIN-CMO. (2019, April 26). Ilocos Norte posts 208% rise in tourist arrivals during Holy Week.
    Retrieved from Ilocos Norte: https://ilocosnorte.gov.ph/news/ilocos-norte-posts-208-rise-in-
    tourist-arrivals-during-holy-week

    Sotelo, Y. (2020, August 2). Ilocos tourism rides out pandemic wave. Retrieved from Inquirer News:
    https://newsinfo.inquirer.net/1315396/ilocos-tourism-rides-out-pandemic-wave

    UNWTO. (2020, October). IMPACT ASSESSMENT OF THE COVID-19 OUTBREAK ON


    INTERNATIONAL TOURISM. Retrieved from World Tourism Organization:
    https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism

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