Local Economy in the City of Baguio Essay
Local Economy in the City of Baguio
The study dealt with the impact of tourism programs for the years 20012004 to income, employment and taxation as perceived by TOEs and TREs. The study used the descriptive method that analyzed and described the perceived impact of TOEs and TREs. There were two groups of respondents wherein each of the group, there are four sub groups. There were 98 TOEs and 105 TREs with a total of 203 respondents. The primary tool used in the data gathering was the questionnaire. Secondary sources were books, articles, journals, websites in the internet, unpublished theses and other printed sources related to the study that were also to support and strengthen the findings of the study.
Descriptive statistics were used to analyze and interpret the data gathered such as percentages, averages and weighted means. The weighted means were used to describe the perceptions of the TOEs and TREs while the F-test was used test the null hypothesis of the study. The chi-square was further used to see if there lies a significant difference between the perceptions of the TOEs and TREs per year. The 0.05 level of significance was used as reference in accepting or rejecting the null hypothesis. As to the TOEs, they did not differ from each other except for accommodation facilities.
The perception of TREs showed that they did not differ from each other. As to the difference of the perception of the sub-industries, they do not differ, regardless if there are considered as TOEs or TREs. Though they differ if there is a comparison per year. 8.2. Findings
As to the impact of tourism programs to income, employment and taxation of accommodation facilities, the alternative hypothesis was accepted. For the travel agencies and tour operators, the weighted mean yielded low. Thus, the null hypothesis was accepted. The perceived impact of curio shops yielded low which led to the acceptance of the null hypotheses. And the other TOEs, the weighted mean also yielded low thus the researcher accepted the null hypothesis.
For the second group, the TREs, the four sub industries namely, restaurant/dining establishments, bars/cafes/entertainment establishments, recreation facilities and other TREs, all yielded low impact of tourism programs to income, employment and taxation. Thus the researcher accepted the null hypothesis. For the third problem as to difference of the perceptions of TOEs per sub industry, there was no significant difference. This was also true for TREs. The researcher further employed the chi-square to see if there lies a significant difference on the perception per year, it yielded no significant difference for TOEs and TREs. 8.3. Conclusions
The researcher concludes that majority of the TOEs and TREs found tourism programs of the City of Baguio yielded low. The study should not be considered as immaterial. The study should be considered as a benchmark to show that tourism programs being implemented in the city were not beneficial all year long to the TOEs and TREs. That there was seasonality in terms of the realization of tourism benefits. Only the accommodation facilities experienced medium impact because tourists only stay in the City for a short time and accommodation facilities are inevitable.
However for the other sub industries it was only in the year 2004 that they perceived tourism programs to have a medium impact. The researcher also concludes that for the years 2001 to 2003, tourism programs are not considered as income, employment and taxation generating. For the year 2004, almost 65% of the programs are income, employment and taxation generating. The researcher also concluded that among TOEs and TREs, it showed that there are no variations to their perception on tourism programs to income, employment and taxation. 8.4. Recommendations
In view of the findings, the researcher has the following recommendations.
8.4.1. As to the perceived impact of tourism programs to the income, employment and taxation of TOEs For accommodation facilities, they must formulate more schemes such as promotions and discounts to attract visitors to stay in their
facility rather than saying in accommodation facilities not accredited by the Department of Tourism (DOT). It is also their societal responsibility to show the tourists the beauty of the city. The repercussion of these tourists staying in some accommodation facility not accredited by the DOT is the dissatisfaction of the tourists due to substandard facilities. The practical implication in providing accommodation facilities is standard to convince these tourists to come back and visit the city. For travel agencies and tour operators, most of them cater to Baguio residents who visit other places.
According to some travel agencies, their income comes from processing of visas or passports as well as bookings to other places. They also observed that only a few tourists avail of their services because it is more practical for them to visit Baguio on their own. For tour operations, only a few tourists avail of their services precisely because most of the tourist spots in the city are accessible and can easily visit these places even without the help of a tour guide company. Curio shops are located in places near tourist spots, however due to competition; their prices tend to go very low to the extent that it is impractical for them.
Their products can also be considered homogenous, they have the same products and that such products do not meet high quality preferred by tourists. There should be a product enhancement program to be implemented by the city. The city, knowing the seller’s background, should help shouldering the expenses so that these SME’s will attend and participate in the formulated program. For convention facilities, there is no problem for hotels because it can be included in the promotion and discounts. However for the others, there should be maintenance of these facilities. In the Baguio Convention Center alone, there are a lot to be maintained there.
For some other Convention sites, what is needed is advertisement because only little knows the presence or even existence of such place. It is better if they use an advertisement so that they can be noticed and be known. 8.4.2 As to the perceived impact of tourism programs to the income, employment and taxation of TOEs For Restaurants and Dining Establishments, the dishes in the menu that they offer should be enhanced for the greater satisfaction curtailing to the tourists taste and preference for food add dishes and delicacies which can only be found tasted in the city should be added.
They also need to consider giving discounts to tourists as part of their marketing strategy. As well as bars, cafes, entertainment establishments, they also need to consider giving discounts to tourist as part of their marketing strategy. Recreation Facilities should also offer, aside from the discounts is included,
promo’s and packages that will not only cater to only a single person but to groups like families, companies, organizations and the like. Gasoline Stations, described as filling stations should not only be a filling station but serve also as a one-step-shop where they could stay and have a rest for a while. Shopping Establishments, the researcher observed that these are too generic in character. Generic in a sense that they are homogenous with other shopping establishments. In transforming the City as a firstclass tourist destination, these shopping establishments must have marketing strategies such as having a cultural motif which depicts the character of the city and that they also must, form time to time, inspect the establishment to be clean always and that the goods fit the customers tastes and preferences as well their services to be accommodating.
This is a must for shopping establishment because they must set up a good standing for the customers to go back. 8.4.3 As to the problems encountered, the following should be implemented to tourist, TOEs and TREs and to the City of Baguio. On the part of the City Government of Baguio in cooperation the Department of Tourism and the various organizations of TOEs and TREs, the following statements are recommended not just to enhance products and services but also to improve and develop the tourism activity. There should be a development plan good for one year as an experimental stage.
That there should be personnel stationed in kiosk or toll-like booths of the Baguio Tourism Council (BTC) and or Department of Tourism (DOT), designated in the different entry points especially Marcos Highway, Naguillan Road, Kennon Road and La Trinidad. They should give tourists passes, which will entitle them benefits in the city. The city in cooperation with the TOEs and TREs who will participate will provide high standard of service and provide high quality products to our tourists.
These TOEs and TREs shall extend a 10% discount on all services and products if tourists shall purchase any product or avail any service worth P500.00. It shall be standardized so as not to prejudice the small owners of TOEs and TREs. If the TOEs and TREs will be part of this project, they will be entitled to tax incentives and that the City of Government of Baguio will help in shouldering the promotion in which the City Government, the TOEs and the TREs will benefit from such program. Employment assistance will also be extended to them. The tourists will be given passes to avail of the benefits provided by the city and participating TOEs and TREs. For tourists who patronize such TOEs and TREs incentives shall be given to them.
The City Government of Baguio shall also tie up with other Local Government Units (LGUs) especially those considered as sister cities and municipalities to promote the tourism programs of the city. They shall also push for legal actions against establishments specifically accommodation facilities that are not accredited or even permitted by the city to operate. The licensing office of the city shall also be vigilant that before releasing any license for these establishments, they shall at least meet the required minimum standard so as not to allow establishments to be operating not only with substandard facilities but also substandard services.
This recommendation can also address the problem on the tourism data bank inadequacy that is necessary for the proper study and analysis of factual information in formulating future tourism plans. The researcher endorses the above recommendations, which if implemented will help both the City Government and TOEs and TREs in the City of Baguio in term of Income, Employment, Taxation and hopefully redound to increase in tourist satisfaction including the goods and services the City of Baguio offers.