The tourism industry is observed to have great potential in contributing positively to different sectors of society, part from just the economy in general. Positive and negative impacts of tourism on economy are various, and of the impacts of the tourism industry on the local and wider scale of the economy is the effect that the tourism industry can have on the real estate industry. In the content of this blog, there will be a brief overview of tourism, the impacts of tourism, relevant details regarding the tourism industry, and the positive contributions of tourism on real estate properties like your condo in Tagaytay.
The general purpose of tourism
Tourism is a popular word thrown around in advertising, including real estate, to which people commonly get the idea of travelling to countries and regions that are different from the places and real estate that they usually go to. The main purpose of this travelling would be for self-enjoyment, specifically engaging in the activities unique to the region being travelled to that would appease the five senses of sight, hearing, smell, touch, and taste of the person engaging in the act of tourism and travelling.
This definition is not far off from more formal definitions of tourism, which states that tourism is the process of travelling away from home, in particular, in order to seek out recreation and pleasure in other places. With this comes the impacts of tourism on both the tourist and, most especially, the region receiving tourists.
A key detail that does not immediately come to one’s mind is that tourism virtually always is involved with utilizing the commercial services of the region being travelled to; and the existence of these commercial services bring with it the idea that tourists typically “travel a beaten path” or go to a place where an ample amount of development – the kind that fulfills the basic necessities of people – has been established.
The tourism sector enables businesses to keep running
In the tourism industry, their agencies are tasked with advertising the potential of the region or country they belong to in order to provide pleasurable experiences to the tourists who take the opportunity to travel to the said region or country. When a place receives tourists, it would be to the benefit of the region’s economy to provide tourism accommodation. This can come in many forms, such as a region’s varying industries. For example, food is a basic necessity that virtually all people find enjoyment in given the cuisines that are unique to every region.
As a result, a region that receives tourists can have its different industries, such as its culinary industry be benefitted by having more people dine in the restaurants existing in the region, and stores and markets that sell local delicacies will benefit from tourists buying their products in sizable amounts either for self-enjoyment or for the tourist to bring back to their homes.
Tourism boosts employment
The impacts of tourism are also found in how it creates more jobs for locals that contribute to tourism accommodation. When tourists engage in the different activities of the varying places of a region, there are numerous jobs that can open up for the purpose of profiting from the engagement that travelers invest in tourism.
For example, tourists that visit the parks and malls of a region will increase the activity of said areas. Therefore, there will be more work required of maintenance staff and staff that are tasked with providing services for the entertainment of the tourists. Shops from other industries such as those concerned with selling clothing and textiles will also be able to receive business from tourists visiting different areas of a region.
Tourism fosters the incentive of developing real estate
So far, some examples of how tourism fosters businesses and employment have been given. A common denominator to both of this is the fact that tourism boosts the development of real estate. In order for businesses to have a place to settle in and offer jobs to people, there is typically a need for a proper venue – and this is where real estate development comes into the picture. Commercial real estate, in particular, is bound to greatly benefit from a significant amount of tourism in a region. This is because commercial real estate is primarily concerned with commercial ventures and businesses, which includes developments of resorts, restaurants, healthcare, and hotels.
When tourism is plentiful in a region, commercial businesses will profit a lot more, incentivizing the prospect of developing more commercial real estate for tourism accommodation. Another perspective of looking at the impact of tourism is that some tourists may find a region attractive and enjoying to the extent that they would consider buying residential properties in an area within the region, like a condo in Tagaytay. This, in turn, would incentivize the development of residential real estate.
The possibility of pre-pandemic tourism to return to the PH
The pandemic scene has become a more faded memory as the world continues to move forward, and the concept of ventures and settings in society returning to “pre-pandemic” level is said to occur for the tourism industry in the Philippines as well, particularly in 2024. The Department of Tourism (DOT) is stated to have a benchmark goal of 4.8 million tourists for 2023, and it is observed that 84% of this goal has been achieved; and comprising a large amount of this percentage are tourists from America, South Korea, and Australia.
Tourists from Japan and China also comprised an ample portion of the tourists that visit the Philippines based on the country’s pre-pandemic tourism; however it’s been observed that there is significantly less Chinese and Japanese tourists in the 84% progress observed in achieving the goal of the DOT. Factors influencing this are enumerated to be unemployment, slowed economic progress, and inflation.
All of the aforementioned benefits of tourism can be observed much more with the country’s tourism statistics returning to pre-pandemic levels. In light of this, numerous hotel projects are said to be in development in the National Capital Region, perhaps near your condo in Tagaytay. Moreover, there is said to be plans of developing local airports and hotels in Bohol, Palawan, and Cebu.
