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LABOR POLICIES FOR THE PHILIPPPINE HOSPITALITY INDUSTRY by Dr. Romulo A. Virola Secretary General National Statistical C

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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LABOR POLICIES FOR THE PHILIPPPINE HOSPITALITY INDUSTRY by Dr. Romulo A. Virola Secretary General National Statistical C

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  1. LABOR POLICIES FOR THE PHILIPPPINE HOSPITALITY INDUSTRY by Dr. Romulo A. VirolaSecretary 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

  2. Outline of the Presentation • Reaction to the keynote paper • Recent trends in Philippine tourism • Tourism Employment • Challenges and Opportunities • Initiatives towards quality employment

  3. Reaction to the keynote paper

  4. I. Reaction to the Keynote Paper

  5. II. Recent trends in Philippine tourism

  6. 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 Source: Philippine Department of Tourism (DOT)

  7. 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

  8. 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! Source: NSCB

  9. 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 Source: NSCB

  10. 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 Source: NSCB

  11. III. Employment in Tourism Industries

  12. 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 Source: NSCB

  13. III. Employment in Tourism Industries Current Employment Trends Employment in tourism industries is dominated by employment in passenger transport (43%) When fuel prices keep rising, tourism employment is affected! Source: NSCB

  14. 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! ?

  15. IV. Challenges and Opportunities

  16. 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

  17. 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

  18. IV. Challenges and Opportunities Supply of Labor • Graduates on tourism courses represent only of less than 1% to total graduates!

  19. 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!

  20. IV. Challenges and Opportunities Supply of Labor • Number of schools with enrolment of tourism courses and the average enrollees increased!

  21. 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)

  22. V. Initiatives Towards Quality Employment

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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)

  28. 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!

  29. V. Initiatives Towards Quality Employment Potential of Women in Tourism • More evidently, female are more interested in tourism related disciplines!

  30. 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:

  31. 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

  32. Maraming Salamat po! URL: http://www.nscb.gov.ph e-mail: info@nscb.gov.ph

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