R&d Identification Of Sectors

Tourism Consumption Expenditure Accomodation Food and Beverages Transportation

I-O Industries Hotels and motels Other short-stay accommodation Restaurants, bars, canteens and other eating and drinking places Rail Transport Services

IO sector No. 223 224 225 181

Road Transport Services -Busline operation -Public utility cars and Taxicab operation -Jeepney, tricycles (motorized and non-motorized) and other -road transport -Tourist Buses and cars including chartered and rent-a-car

182 183 184 185

Water Transport Services

Guided Tour Entertainment/ recreation Miscellaneous Tourism Services

-Sea and Coastal water transport -Inland water transport (including renting of ship with operator)

187 188

Air Transport Services

190

Tour and Travel Agencies Motion picture and video production and distribution Motion picture projection Radio and Television activities Other recreational and cultural services Retail trade

191 234 235 236 237 198

Identification of the Tourism sub-sector in Input-Output Table

Since tourism cannot be defined as a single-independent- industry, it requires products from different tourism-oriented firms. It does not have a homogenous product, thus, it is not simple to identify the tourism sub-sector. The input-output (IO) table does not readily offer information on what items should be included as tourism-subsector. The Philippine Tourism Satellite Accounts (PTSA) conducted by the NSCB provides the description of tourism-specific industries, products and services that relates to the tourism consumption expenditure (see Appendix A). This definition was employed to determine the tourism subsector in the input-output table. Based on the PTSA definition, the tourism consumption expenditure has seventeen (17) corresponding industries in the input-output table. This is indicated in Table 5.11. The tourism consumption expenditure is divided into major items namely accommodation, food and beverages, transportation, guided tour, entertainment and recreation, and miscellaneous tourism services.

Table 5.11 Relationship between Tourism Consumption Expenditure and Input-Output industries

Tourism-Related Sectors With the use of transaction table and technical coefficient matrix it is possible to provide perspective about the production and consumption behaviors among sectors in the economy. In the study, the 240-sector provided by the NSCB was aggregated into 50 sectors. The way of aggregation among industries was done to have a tourism sector. For this portion of the analysis, the tourism sector includes accommodation and restaurant facilities since a large portion of industry can attributed to these industries (see Appendix B for aggregation). Tourism-related sectors, in this context, refer to other sectors that have a relationship with the tourism sector either as producer of the inputs needed by the sector or as purchaser of the products of tourism. Reading down a column of the direct coefficient table describes the proportion of purchases made from each of the sector, thus depicting the inter-industry purchases of inputs for production from other sectors. Technical coefficient represents the proportion of inputs required to produce one peso value of output. Table 5.12 depicts the top 20 sectors that have a highest proportion of inputs required by the tourism sector to produce additional one peso value of output. As shown, most of the inputs required by the tourism sector can be categorized as food products. Specifically, twenty-five percent (25 %) of the inputs required come from other food manufactures, followed by the meat, beverage and fishery at 9%, 5% and 3% respectively. Moreover other food products such as dairy, vegetables, fruits, coconut and oils, and poultry products also comprise the major inputs purchase by the tourism sector.

Other purchases of the sector are the commercial services (2.14%), fuel, electricity and water (1.75%), trade (1.63%), chemical products (1.25%) and financial services (0.9%). Aside from these, a certain proportion of inputs also comes from textile, paper and wood, metal, appliances and electrical, and, petroleum industry. Table 4.12 Top 20 Sector- Producer of Tourism Inputs Technical Sector Code Coefficient Food manufactures 019 0.2490141 Meat 016 0.0970578 Beverage 020 0.0577412 Fishery 012 0.0341520 Commercial services 046 0.0214274 Dairy, milk and butter 017 0.0190287 Fuel, electricity and water 037 0.0175273 Trade 040 0.0163083 Vegetables 005 0.0159001 Chemical products 027 0.0125822 Fruits 006 0.0117062 Coconut 003 0.0100588 Financial Activities 041 0.0093897 Coconut and vegetable oil 018 0.0093353 Poultry 011 0.0089469 Textile 022 0.0083981 Paper, wood 024 0.0068468 Metal 031 0.0066559 Appliances/ Electrical 033 0.0045994 Petroleum and asphalt 029 0.0044120 Reading across the table rows provides an alternative interpretation wherein the sales of each sectors to other sectors is depicted. Similarly, using the technical coefficient, it is possible for the tourism sector to track the sectors to whom the sales are being made. Table 4.13 depicts the top 20 sectors that have the highest proportion of purchases from the tourism sector for an additional one peso value of output produced by the sector.

Table 5.13 Top 20 Sector- Purchaser of Tourism Output Technical Sector Code Coefficient Media 049 0.0467677 Other services 050 0.0467677 Financial Activities 041 0.0304784 Commercial services 046 0.0259091 State mgt & defense 045 0.0145206 Education 043 0.0112846 Health and Social Work 044 0.0111500 Textile 022 0.0039318 Chemical products 027 0.0035282 Real Estate 42 0.0023763 Construction 036 0.0019953 Beverage 020 0.0014465 Other food manufactures 019 0.0011835 Other manufactured goods 035 0.0008228 Science and Technology 048 0.0007132 Transport Services 038 0.0005897 Appliances/ Electrical 033 0.0005701 Hotel and tourism 047 0.0002803 Garments and Footwear 023 0.0001589 Tanneries & leather 026 0.0001203

Aside from being a purchaser of products from other sectors, tourism sectors also produces and sells products to other sectors. A certain proportion of the output is sold to media and other services at both 4.68%. It is followed by financial and commercial services at 3.04% and 2.59 % respectively. Other purchaser of tourism products includes state management and defense, education, health and social work, textile, chemical products, real estate and construction industries. Tourism also sold to sectors such as beverage, other food manufactures, other manufactured goods, science and technology, transport services, appliances and electrical, garments and footwear, tanneries and leather industries, and even to hotel and tourism industry itself.