Tourism as a Development Strategy - August 2006

Over the last few decades several countries have looked towards tourism as a means of promoting development and economic growth. Tourism has grown to become the world’s second largest industry, directly accounting for 3.8 percent of global GDP in 2005 according to the World Travel and Tourism Council (WTTC). Experiences from various countries have shown that tourism can have significant effects, both positive and negative, on an economy. It has been noted that the very process of developing tourism and the consequences of this development imposes social, cultural and environmental costs for the country. Nonetheless, more recent studies point out tourism’s potential as an anti-poverty strategy. As the Philippines attempts to jumpstart a tourism industry which has lagged behind its neighbors such as Thailand, Malaysia and Indonesia, it is worthwhile to examine the tourism industry as an agent of development as well as actions that need to be taken by the government to support the sustainable growth of this sector.