Transcript Document

LABOR POLICIES FOR THE PHILIPPPINE
HOSPITALITY INDUSTRY
by
Dr. Romulo A. Virola
Secretary General
National Statistical Coordination Board
The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
Bali, Indonesia, 30 March – 2 April 2009
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
Outline of the Presentation
I. Reaction to the keynote paper
II. Recent trends in Philippine tourism
III. Tourism Employment
IV. Challenges and Opportunities
V. Initiatives towards quality employment
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
I. Reaction to the keynote paper
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
I. Reaction to the Keynote Paper
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
Potentials of Philippine tourism
 Stable Amidst a Global Tourism Downturn
 Despite international market developments, inbound visitor
arrivals grew by 1.5% in 2008
 Dispersed growth to regional destinations
 Expanded tourism receipts to key destinations
 English as Second Language (ESL) Program
 Diving
 Medical Tourism
 Intensified impact to the economy
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Source: Philippine Department of
Tourism (DOT)
The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
Initiatives in Measuring Economic Impact of Tourism
 Philippine Tourism Satellite Accounts (PTSA)
 The Inter-Agency Committee on Tourism Statistics (IACTS)
endorsed the approval of the PTSA Methodology and was
approved by the National Statistical Coordination Board
(NSCB) Executive Board on March 11, 2009.
 IAC-TS is composed of representatives from different
government and private agencies whose function include
the review and evaluation of current, as well as emerging,
issues and/or concerns encountered in the generation of
tourism statistics and compilation of the TSA, and serves as a
forum in resolving such issues and/or concerns
 NSCB is the highest policy-making and coordinating
agency on statistical matters in the Philippines
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
Initiatives in Measuring Economic Impact of Tourism
 Some estimates from the PTSA
For the years 2000 to 2007, the average share of TDGVA to
GDP is about 6.2 percent!
Share of TDGVA to total GDP, 2000-2007
7,000,000
In million Php
6,000,000
6 .2 8 %
6.25%
6 .2 6 %
6 .2 2 %
6.20%
6 . 17%
5,000,000
6 . 19 %
6 . 14 %
6.15%
4,000,000
6 . 16 %
6 . 15%
6.10%
3,000,000
6.05%
2,000,000
6.00%
1,000,000
5.95%
-
5.90%
2000
Source: NSCB
8
2001
2002
TDGVA
The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
2003
2004
GDP
2005
2006
% share
2007
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
Initiatives in Measuring Economic Impact of Tourism
 Some estimates from the PTSA
Except for few years, Internal Tourism Expenditure grew faster
than the GDP at current prices
Comparison of Annual GDP (at current prices) with Internal tourism
expenditure, 2000-2007
35.00
2 7. 3 3
30.00
2 3 .6 1
Growth (%)
25.00
20.00
2 2 .9 3
15.00
10 . 8 2
15. 3 6
8.89
10.00
12 . 8 6
11. 7 5
10 . 2 0
9 . 15
8.25
6 .9 6
8 .2 4
5.00
0 .2 1
Source: NSCB
2001
2002
2003
2004
GDP current
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The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
RAVirola/31/March/2009
2005
2006
2007
ITE
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
II. Recent trends in Philippine tourism
Some recent indicators
 Estimates from the Quarterly National Accounts
2nd half of 2008 growth of tourism related services sectors was
slower than the GDP; failed to continue the momentum which
started in Q3 2006
Com parison of Quarterly GDP w ith GVA of tourism related sectors
Q1 2006 to Q4 2008, At constant prices
14 . 0
GDP
Growth (%)
12 . 0
Tourism Sectors
10 . 0
8 .0
6 .0
4 .0
2 .0
Q1
Q2
Q3
Q4
Q1
2006
Q2
Q3
2007
Q4
Q1
Q2
Q3
Q4
2008
Source: NSCB
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III. Employment in Tourism Industries
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III. Employment in Tourism Industries
Current Employment Trends
Employment in tourism industries grew by 1.5% in 2008, slower
than the 2.6% growth of the total Philippine employment
Com parison of Tourism Industries' Em ploym ent w ith Total Em ploym ent
2000 to 2008
10 . 0
Total Employment
8.3
7. 5
Tourism industries
Growth (%)
6.9
5.9
5. 0
4.3
3.7
3.6
2.9
2 .5
00-01
0 1- 0 2
0.5
(0.4)
1.4
0.6
02-03
03-04
2.6
1.5
2.4
0.0
(0.0)
04-05
0 5- 0 6
06-07
0 7- 0 8
( 2 . 5)
Source: NSCB
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NATIONAL STATISTICAL COORDINATION BOARD
III. Employment in Tourism Industries
Current Employment Trends
Employment in tourism industries is dominated by
employment in passenger transport (43%)
Share of Industries to Employment of Tourism Characteristic Industries
Passenger Transport
43%
Travel Agents, tour
Restaurants and
operators and tourism
Similar
guides
25%
4%
Recreation,
entertainment and
cultural services
Hotels and Similars
3%
10%
Miscellaneous
Retail trade on tourism-
7%
charactersitic goods
8%
Source: NSCB
When fuel prices keep rising, tourism employment is affected!
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III. Employment in Tourism Industries
Tourism Employment Target
 Based on the Medium Term Philippine Development
Program (MTPDP) 2004 – 2010, tourism employment
generated shall increase from 3 million to 6 million!
Em ploym ent in Tourism Characteristic Industries vis-à-vis MTPDP Target
7,000.0
6,000.0
?
Growth (%)
5,000.0
4,000.0
3,000.0
2,000.0
1, 0 0 0 . 0
2000
2001
2002
2003
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TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
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2004
2005
2006
2007
2008
2009
2 0 10
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
IV. Challenges and Opportunities
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IV. Challenges and Opportunities
The Effect of Global Financial Crisis
 Growth rate for hotels/restaurants and recreational services
slowed down to 0.78% in Q3 2008 and 4.01% in Q4 2008.
 Employment in tourism industries for 2008 only grew by
1.5% in 2008 from 3.7% in 2007!
 Employment in passenger transport which constitute 43% of
the total employment in tourism industries dropped by 0.1%
in 2008.
 Employment in hotels and restaurants slowed down to 2.6%
and 1.7% in Q4 2008 and Q1 2009, respectively after having
grown by 7.2% in Q2 2008 and 7.7% in Q3 2008
The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
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NATIONAL STATISTICAL COORDINATION BOARD
IV. Challenges and Opportunities
Measurement Issues
 Less indicators were obtained to adequately describe tourism
employment situations
 Tourism employment include a large portion coming from
informal and unorganized sector which at present are
inadequately measured in the existing data collection
system
 Measures like hours worked or full time equivalent
employment are also required in order to gauge the amount
of labor assigned to a particular tourism industry
 There is a need to integrate tourism employment information
from household surveys, establishment surveys and
administrative records
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NATIONAL STATISTICAL COORDINATION BOARD
IV. Challenges and Opportunities
Supply of Labor
 Graduates on tourism courses represent only of less
than 1% to total graduates!
Number of Graduates for Programs on Tourism, Tourism and Travel Management and Hotel and Restaurant Management
in comparison to total number of graduates in all courses
School Year
Program
00/01
01/02
02/03
03/04
04/05
05/06
06/07
Tourism
2,160
2,506
2,440
2,134
1,775
1,947
1,992
Travel&Management
182
96
118
82
71
140
277
Tourism and Hotel
Restaurant
Management (HRM)
46
39
52
75
125
170
47
TOTAL
% GROWTH
ALL COURSES
Share of tourism courses to
total courses
2,388
2,641
0.8
363,640
10.6
383,839
0.66
0.69
2,610
(1.2)
405,716
0.64
2,291
(12.2)
386,920
0.59
1,971
(14.0)
409,724
0.48
2,257
2,316
14.5
400,387
2.6
473,613
0.56
0.49
Source: Commission on Higher Education (CHED)
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TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
18 RAVirola/31/March/2009
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NATIONAL STATISTICAL COORDINATION BOARD
IV. Challenges and Opportunities
Supply of Labor
 Enrolment on tourism courses represent only of less
than 1% to total enrolment!
 However, significant improvements were observed
in the past three years – a source of optimism for
tourism employment ahead!
Enrollment for Programs on Tourism, Tourism and Travel Management and Hotel and Restaurant Management
in comparison to total number of enrolment in all courses
Program
00/01
13,936
550
01/02
14,504
809
108
02/03
14,021
795
1,035
03/04
15,202
721
1,237
04/05
12,687
349
104
05/06
13,115
619
1,678
14,486
15,421
15,851
17,160
13,140
8.4
2,430,842
6.5
2,466,056
2.8
2,426,976
8.3
2,420,856
0.60
0.63
0.65
0.71
Tourism
Travel&Management
Tourism and Hotel
Restaurant
Management (HRM)
TOTAL
% GROWTH
ALL COURSES
Share of tourism courses to
total courses
(23.4)
2,402,315
0.55
06/07
16,811
1,128
1,814
07/08
19,066
4,129
551
15,412
19,753
23,746
17.3
2,483,645
28.2
2,530,550
20.2
2,565,534
0.62
0.78
0.93
Source: Commission on Higher Education (CHED)
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NATIONAL STATISTICAL COORDINATION BOARD
IV. Challenges and Opportunities
Supply of Labor
 Number of schools with enrolment of tourism courses
and the average enrollees increased!
Other Indicators
Indicators1/
Number of schools with enrolees
Average enrolees per school
00/01
86
168
01/02
111
139
02/03
133
119
67
36
76
35
81
32
Number of schools with graduates
Average graduates per school
School Year
03/04
04/05
150
132
114
100
70
33
95
21
05/06
177
87
06/07
184
107
114
20
144
16
07/08
211
113
Source: Commission on Higher Education (CHED)
1/ Number of schools, number of enrolees and number of graduates for the three programs: tourism, tourism and travel management and HRM
The Fifth UNWTO International Conference on Tourism Statistics
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IV. Challenges and Opportunities
Excellent Institutional Linkage
 The Philippine Department of Tourism (DOT) and the
National Statistical Coordination Board (NSCB) work
closely in the development of tourism indicators
 Interagency cooperation is institutionalized through
the Inter-agency Committee on Tourism Statistics
(IACTS) which include not only the government
agencies but also the private sector such as the
Philippine Travel Agencies Associations (PTAA),
Philippine Tour Operators Associations (PhilTOA) and
the Hotel and Restaurant Association of the Philippines
(HRAP)
The Fifth UNWTO International Conference on Tourism Statistics
TOURISM: AN ENGINE FOR EMPLOYMENT CREATION
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Enhancement of Labor Policies
 Developments on the regulation on employment of foreign
nationals in tourism sector
 Issuance of Department Orders by the Department of Labor
and Employment (DOLE) which reduced the processing
requirements and time of issuance of Alien Employment
Permit (AEP) and the understudy training program
 Specifically, the provision of five (5) working days grace
period for elective and appointive officers to file renewal
application without penalty. (Dept Order No.19-02)
 Exemptions for securing employment permit were extended
to resident foreign nationals employed or seeking
employment in the Philippines
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Enhancement of Labor Policies
 Proposed commitments on Mode 4 (Presence of Natural
Persons) on tourism in the WTO, AFAS and other free trade
agreements
 None or no limitations for foreign nationals seeking
employment in the hotels, resorts, travel agencies, tour
operation and professional congress organizers except as
indicated in the horizontal section of the Philippine Offer
 Tour guides may be allowed subject to reciprocity and
limitations listed in the horizontal section
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Enhancement of Labor Policies
 Liberalizing the movement of natural persons in tourism
 Competency-based standards and certification program
for tourism professionals have been developed in
accordance with the APEC and ASEAN regional initiatives
 Series of workshops and consultations have been
undertaken with the tourism industry over the past three
years to elicit inputs and recommendations from
stakeholders
 The ASEAN Mutual Recognition Agreement (MRA) for Tourism
Professionals was timely to facilitate the freer movement of
employment of qualified and certified personnel between
ASEAN member countries
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Enhancement of Labor Policies
 The Way Forward in Preparation for the Liberalization of Mode 4
 Continuing dialogues and consultations with the labor sector
and employer groups must be undertaken to ensure that their
interests are safeguarded in the negotiation process
 Education and training should continually be enhanced and
upgraded to allow the Filipinos to be more competitive in the
global labor market for tourism
 Community residents in tourism areas must be given
extensive training so they can be given priority in job
placement
 Competency-based skills standards must be advocated at
the regional and local levels
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Strengthening Institutional Linkages
 Adequately measure tourism employment by enhancing
coordination between the labor, tourism and statistics agencies
 inclusion of representative from Department of Labor and
Employment (DOLE) in the Inter-agency Committee on
Tourism Statistics (IAC); and/or
 representation of Department of Tourism (DOT) in the IAC on
Labor and Productivity Statistics (IACLPS)
 Advocacy to undertake more programs/courses on tourism
discipline by strengthening the linkage of DOT, Department of
Education (DepEd), Commission on Higher Education (CHED) and
Technical Education Skills and Development Authority (TESDA)
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Potential of Women in Tourism
 In terms of education, women in the Philippines are better
than their male counter part!
Education
No Education/Elem (%)
Highschool Undergraduate (%)
Highschool Graduate (%)
College and Higher (%)
Women
8.4
27.2
33.2
31.2
Men
13.4
32.3
29.7
24.3
Source: Updates on Women and Men
NSCB
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NATIONAL STATISTICAL COORDINATION BOARD
V. Initiatives Towards Quality Employment
Potential of Women in Tourism
 More evidently, female are more interested in tourism
related disciplines!
Enrollment (2007/08) and Graduates (2006/07) by Program by Sex
Enrolment (2007/08)
Tourism
Tourism and Travel
Hotel &Management
Restaurant
Management (HRM)
Male
0.21
0.22
0.15
0.31
Ratio
Female
0.79
0.78
0.85
0.69
Total
1.00
1.00
1.00
1.00
Graduates (2006/07)
Tourism
Travel&Management
Tourism and Hotel
Restaurant
Management (HRM)
0.23
0.25
0.10
0.21
0.77
0.75
0.90
0.79
1.00
1.00
1.00
1.00
Indicator by Program
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V. Initiatives Towards Quality Employment
Enhancing the Role of Tourism in Nation Building
 As highlighted in the Medium Term Philippine
Development Program (MTPDP) 2004 – 2010, the tourism
industry is among the sectors that has the potential to boost
the Philippine economy
 The measurement of tourism as a whole, together with its
component such as employment should be enhanced in
order to capture how the sector support the country’s
development
 Thus, several factors should be considered:
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V. Initiatives Towards Quality Employment
Enhancing the Role of Tourism in Nation Building
 On capacity building
 need to strengthen the statistical capacity of producers as
well as users of statistics on tourism, both on national and
sub-national levels
 On resources
 need to improve the resources of statistics agencies through
the cooperation of the government and the private sector in
developing the political will to invest in statistics
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Maraming Salamat po!
URL: http://www.nscb.gov.ph
e-mail: [email protected]
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