Professional Documents
Culture Documents
By
April 2015
i
Althea Mae M. Salcedo. 2015. All Rights Reserved.
TABLE OF CONTENTS
ii
Respondents Demographic Profile and Travelling Characteristics ................. 32
Demographic Profile...................................................................................... 32
Travelling Profile........................................................................................... 38
Implications ................................................................................................... 44
Binary Logistic Regression ............................................................................... 47
Binary Logistic Regression (Before Factor Analysis) ................................... 47
Factor Analysis .............................................................................................. 50
Binary Logistic Regression (After Factor Analysis) ..................................... 52
Importance-Performance Analysis .................................................................... 55
CHAPTER V: SUMMARY, CONCLUSION AND RECOMMENDATIONS .. 58
Summary ........................................................................................................... 58
Conclusion......................................................................................................... 59
Policy and Strategy Recommendations ............................................................. 61
Recommendations for Further Studies .............................................................. 63
BIBLIOGRAPHY ................................................................................................. 64
Appendix A: Survey ................................................................................................ I
Appendix B: Binary Regression Before Factor Analysis ...................................... V
Appendix C: Binary Logistic Model After Factor Analysis ................................. IX
iii
LIST OF TABLES
iv
LIST OF FIGURES
v
ACKNOWLEDGEMENTS
The author would like to express her appreciation and sincere gratitude to the
following:
Mrs. Cherry Lyn Rodolfo (thesis adviser) for her time and patience and
for always guiding me throughout this study
Ms. Viory Yvonne Janeo for being my internal reader, for her time and
for sharing her expertise
Mrs. Deborah Q. Tan for being my external reader and for her time and
inputs about the study
Ms. Maribel Buni and Ms. Ritchel Alcantara and other Palawan tourism
officers for welcoming me to Palawan, helping me finish my survey and
assisting me in securing clearance from CAAP
CAAP office of Palawan for allowing me to do my survey in Puerto
Princesa International airport
Ms. Ma. Cristina Velez Matta for her inputs and comments as a
distinguished member of the Palawan Tourism Council
Research, Education and Institutional Development (REID) for
sponsoring my accommodations in Palawan and sharing their connections
in the field of the tourism industry
My friends, batchmates and the whole IEP family for their continuous
support and care.
Keren and Thea for their time in helping me encode and for their
continuous help and support
My cousin for helping me finish my survey study and for coming to
Palawan with me
My parents for the support and sponsorship of the rest of my Palawan
trip, and for their unconditional love that has always been my motivation
Paolo for believing in me, for helping me relax and forget about stress,
and of course for also being my motivation and inspiration as I did this
study
My Father in Heaven for giving me the courage to face difficulties, for
continually guiding me in the right path, for always hearing my problems
and for allowing me to have such wonderful and supportive family and
friends
vi
EXECUTIVE SUMMARY
Palawan has always been one of Philippines pride in the tourism industry
as it has wonderful islands showcasing its natural wonders. However, is its natural
this study says it is not. Its growth rate has been fluctuating in the last 5 years and
attributes that affect a tourists decision and choices. Its natural wonders alone is
not enough to attract and maintain an increasing growth rate of tourist arrivals, the
revisiting Palawan. It aims to know which attributes are the drivers of the tourist
Airport and the gathered data from 236 respondents was subjected to equations of
the Logit regression models. Results show that Palawan as a tourism destination
itself attracts the touristsit is the inherent attributes of Palawan that attracts
tourists. There are no tourist related attributes (Age, Gender, Education, etc) that
affect the likelihood of revisit. There are also more first-time visitors than repeat
visitors that show that Palawan as a tourism destination is lacking attributes that
attract the visitors who has already been in the province. The domestic tourism
large portion of the tourist count throughout the years. Apart from this, another
vii
market worth taking into consideration when making tourism management plans
in the province is the tourists/visitors with high spending power. According to the
to Palawan are from an income class that consists of people earning more than
In order to attract the said markets, does Palawan have attributes that make
be implemented. It shows that all attributes identified in this study are very
important for the tourists but not all of them are satisfying. It is worth to mention
that the variable for Culture deviate from the satisfied cluster variables. Therefore,
in making tourism management and strategy plans, culture must be taken into
consideration.
Nature itself as an important variable in this study is not enough for the
tourism industry in the Province as the province cannot attract repeat visitors
based from the results. Culture plays an important role in attracting the tourist
revisitiation according to the logit model and the IPA framework and therefore
must be one of the focus in implementing new strategies for the tourism industry
in the province.
viii
CHAPTER I: INTRODUCTION
relevance and large pull function1. It involves different aspects such as travel,
the attributes that affect destination choice and decisions. The study of tourism
destination are vital to the improvement of the ability to estimate and understand
demand theory. However this theory does not account the importance of product
and destination attributes. Moreover, the theory does not include sensitivity to
various strategies that can influence and/or change tourist behavior2. In this study,
1
C. Liu, J. Chang, and A. Yang (Eds): ICICA 2011, Part I, CCIS 243, pp. 102-109, 2011
2
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179.
1
Althea Mae M. Salcedo. 2015. All Rights Reserved.
characteristics in determining tourism demand in the province of Palawan is
evaluated.
Tourism in Palawan
spanning 1.5 million hectares3. The province has managed to preserve its natural
habitat for years which has attracted both domestic and foreign tourists allowing
government of the Philippines. The blueprint of tourism development has been the
Philippine Tourism Master Plan (TMP) which started in 1989 and completed in
compatible with protecting and enhancing the natural resources and endangered
fluctuating rate for the given years (2008-2013). It significantly showed the
decrease of growth rate from the year 2012 to 2013 (from a 29.1 to 4.5 growth
rate). Moreover, it can also be seen that there are more domestic tourists coming
3
"Philippine Department of Tourism - Palawan." Philippine Department of Tourism - Palawan.
Accessed January 17, 2015. http://www.experiencephilippines.org/tourism/destinations-
tourism/palawan-department-of-tourism/.
2
870,478
832,595
645,147
523,872
362,565
283,037
1000000
900000
800000
700000
600000
500000
Foreign
Tourists
300000
200000
100000
0
2008
2009
2010
2011
2012
2013
Source: Palawan Tourism Promotions and Development Office
3
44.5
29.1
21.9 23.1
4.5
In the table above, it can be seen that in the recent 6 years, most travelers
the Underground river, a UNESCO World Heritage Site and one of the new 7
4
Wonders of Nature. It is actually located in a natural park and is a model of
biodiversity with more than hundreds of plant and animal species. A next
attraction for this destination is Honda Bays Island hopping. Boats take tourists
to nearby islands for lunch picnics, snorkeling and swimming. Puerto Princesa is
also known for its city. Touring around the city, tourists can check Bakers Hill,
island hop. Coron is actually a city itself, some tourists dub it as an expensive and
tinier version of Puerto Princesa. It is expensive because there are payments made
for each beach a tourist visits. Moreover, it also has direct flights to and from
Manila just like Puerto Princesa. El Nido is also famous for its island hopping and
less expensive than Coron. It is a quiet beach town populated by mostly tourists.
Much of the research done for the province involves ecotourism. This
study however will look into another perspective of understanding tourism in the
province. The study will look into the behavior of the tourists that can allow an
5
Statement of the Problem
drivers. Attracting tourists from different source markets enables the province to
growth rate through the years. In attempting to provide a solution to this problem
in growth rates, this study aims to answer: How do tourist characteristics and
Why do tourists choose Palawan as their main destination for travel and do the
Palawan?
6
Objectives of the Study
To identify the type of tourists that are most likely to revisit Palawan as
characteristics
characteristics.
province: government, the academe the private sector and the community.
For the government, this study will give light on the formulation of
policies that can improve the sustainability of the tourism industry in the province
of Palawan.
For the academe, this study will add to the literature on linking choice
7
Lastly, for the private sector and the community, this study will encourage
in employment and productive activities once the demand has been established. In
addition, already established tourism business can adapt new management plans
based on this study with the provision of inputs for the investors the kind of
This study only focuses on the characteristics of both tourists and Palawan
as the tourism product. It only includes the analysis of specific attributes which
The source of the raw data came only from one of the major gateways of
Palawan. The location where the survey was done was only in Puerto Princesa
International airportpre departure area and therefore does not include the
There are only a set if selected attributes based on the literature evaluated
8
Definition of Terms
tourist (or overnight visitor), if his or her trip includes an overnight stay4
are willing to acquire during a specific period of time and under certain
demand equation5.
or widowed
4
Defined by UNWTO "World Tourism Organization UNWTO." Understanding Tourism: Basic
Glossary. Accessed February 4, 2015. http://media.unwto.org/en/content/understanding-tourism-
basic-glossary.
5
Defined by Song and Witt, 2000 in Demand for Tourism in Portugal: A Panel Data Approach
6
Defined by UNWTO "World Tourism Organization UNWTO." Understanding Tourism: Basic
Glossary. Accessed February 4, 2015. http://media.unwto.org/en/content/understanding-tourism-
basic-glossary.
7
Defined by Lancaster 2001 in A model of tourism destination choice: a theoretical and
empirical analysis
9
8. Educational level: this refers to the highest educational attainment of an
10
CHAPTER II: REVIEW OF RELATED LITERATURE
In most of the empirical studies and literature, the underlying theory that
explains tourist flows is based on the traditional demand function which is always
characterized by price (stay and transport). Based on this theory, the individual
consumer is faced with a budget constraint that defines his or her choice set or
bundles allowing the ability to compare all positive alternatives8. The consumer
chooses consumption bundle, associated with the highest indifference curve that
theory: tourist arrivals, length of stay, and tourism expenditure which are often
transportation costs and exchange rate9. The most common econometric model
Papatheodorou introduces three drawbacks when using the traditional demand: (1)
8
Moshe Ben-Akiva & Steven R. Lerman (1985). Discrete Choice Analysis: Theory and
Application to Travel Demand, The MIT Press, Cambridge, Massachusetts.
9
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179
11
it assumes that a tourist travels to every destination he considered simultaneously;
(2) it neglects the possibility of the emergence of new destinations and the
withering of the old ones and does not take into account some of the elements of
suppliers in the tourism industry are able to exercise a certain oligopolistic power
with varying market structure in sectors of the industry10. These drawbacks were
tourist may potentially travel to one of the many travel destinations by different
utility function is very large. Another is that its assumption explaining that utility
explain why the theory does not account the importance of product differentiation
and excludes measures of the tourists attitudes towards service and destination
attributes. It also does not include sensitivity to various strategies that can
10
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179
11
Donald Rugg (1973). The Choice of Journey Destination: A Theoretical and Empirical
Analysis. The Revire of Economics and Statistics, vol. 55, Harvard University, Cambridge,
Massachusetts, USA.
12
Lancaster on Consumer Analysis-Product Characteristics Approach
approach. Based on this theory, the demand for goods is only a derived demand
since a consumer receives his utility from the intrinsic properties of the product
and not from the product itself. Consumers select the combination of goods that
will offer the optimal basket of characteristics which are embodied in a good. The
theory assumes that major product characteristics are additive or combinable. This
theory then is useful in understanding consumer choice and behavior since it does
not only account for prices of goods and services but also consider the
framework indicated that the travelers choice of journey destination given his
variables specified within the budget and time constraints. The model was tested
12
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179
13
characteristics defined within the structure of the model. Independent variable
include the product of the population, average of per capita, relative prices, price
destinations by modifying the budget constraint, and the modification of the time
constraint including the time costs involved when travelling between alternate
average monthly rainfall levels & weighted average of average hours of daily
incorporated the decision to travel (or not), the time and budget allocations, and
the choice of destinations which was based on an indirect utility function similar
comprehensive utility model based on the idea that various utilities will be yielded
in different tours because of the attributes of the tours themselves and their
13
Donald Rugg (1973). The Choice of Journey Destination: A Theoretical and Empirical
Analysis. The Revire of Economics and Statistics, vol. 55, Harvard University, Cambridge,
Massachusetts, USA.
14
H.R., Seddighi and A.L. Theocharous. "A Model of Tourism Destination Choice: A Theoretical
and Empirical Analysis." Tourism Management 23 (2002): 475-87.
15
Ibid
14
utilized hedonic price analysis where the price of a product is regressed in a set of
characteristics. This regresses the cost of living in a particular destination (or the
price of the respective holiday package in the case of inclusive tours) on a number
these characteristics. This led him to conclude that characteristics approach can
can be captured and analyzed with which they did field study in Cyprus. Their
starting point for the model are the tourists with each being identified by a number
domestic or foreign vacation. The main variable determining the choice between
16
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179
15
attitudes and perception towards alternative destinations. These characteristics
referred to as abstraction. Once feelings and perceptions are formulated, they are
situation and higher response rate when compared to other survey techniques. A
multivariate Logit analysis was utilized. This is to identify the type of tourists that
are most likely to revisit the destination given their feelings and attributes towards
certain characteristics which are the independent variables. Another study by Mao
and Zhang which also used the Lancasterian framework and the proposed
since the framework does not incorporate a substantial number of variables that
Its Limitations, the major contributions made with the 1966 model are dependent
16
theory. The theory is said to be relevant only under certain assumptions, where
nothing can be said about the efficiency of the consumer unless the goods are
giving an example when buying light bulbs, he pointed out that consumers
certainly care mainly about the total number of hours of lighting provided by the
bundle of bulbs. In his words, the key to the approach is to be able to sum up the
and data of consumption technology. The data problem is of the kind that arises
19
Reuven Hendler. (1975). Lancasters New Approach to Consumer Demand and its
Limitations.
20
Jean Tirole. (1988). The Theory of Industrial Organization, The Massachusetts Institute of
Technology Press, Cambridge, Massachusetts.
21
H.R., Seddighi and A.L. Theocharous. "A Model of Tourism Destination Choice: A Theoretical
and Empirical Analysis." Tourism Management 23 (2002): 475-87.
17
By applying Lancasters theory in tourism, the objective property can be a
characteristics.
Logistic Regression
the selection of the tourism destination. Logit analysis is used for unordered
model in the social sciences stems from: (1) the fact that the logit model is based
on the logistical curve for all the values of the independent variables, contraining
the value of the dependent variable to fall between zero and one; (2) the
Apart from Seddighi and Theocharous, there are also numerous studies
22
Ibid
23
Paolo Figini and Laura Vici. (2007). Off-season tourists and cultural offer of a mass-tourism
destination: The case of Rimini. The Rimini Centre for Economic Analysis. Rimini, Italy.
18
Another study done by Rittichainuwat, Qu and Mongknonvanit used logit analysis
revisiting Thailand as a tourism destination24. The results of the study showed that
quality, service, and value of food and lodging were significant in the model
comprise all factors that are associated to a destination, such as its physical and
cultural features, the mental and actual distance needed to reach the destination
interrelationship of three factors: its amenities or facilities, its attractions, and its
visitor safety and relaxing vacations. In a more recent study by Wong (2011), in
24
Bongkosh Ngamson Rittichainuwat, Haliin Qu and Jerrold K, Leong. (2002). A Study of the
Impact of Travel Satisfaction on the Likelihood of Travelers to Revisit Thailand Journal of
Travel & Tourism Marketing, vol. 12 no 2/3. Binghamton, The Haworth Press, Inc., New York,
USA, pp. 19-43.
25
Vincent C.S. Heung &Hailin Qu. (2000). Hong Jong as a Travel Destinaion: An Analysis of
Japanese Tourists Satisfaction Levels and the Likelihood of Them Recommending Hong Kong to
Others. Journal of Travel and Tourism Marketing.Vol. 9 no. , The Haworth Press, Inc.,
Binghamton, NY, USA, pp. 57-80
26
Ibid
19
analyzing how destination attributes serve as incentives to promote planned-event
review of the different travel attributes used in tourism studies which adopted
Sternquist, 1985; Haahti, 1986; Gartner and Hunt, 1987; Calantone et al, 1989;
Gartner, 1989; Embachar and Buttle, 1989 etc) presented was residents
attractions. Other attributes included in the study were: various activities; nature;
(Baker & Crompton, 2000; Kozak, 2002; Yoon & Uysal, 2005; Alegre & Garau,
determined by how the tourists evaluate the attributes related to the destination.
Results show that among the attributes which include food, attractions, climate
27
Anthony Wong. (2011). Using Destination Attributes to Promote Event Travel: The Case of
Macau
28
Martina G. Gallarza, Irene Gil Saura and Haydee Calderon Garcia. (2002). Destination Image:
Towards a Conceptual Framework. Annals of Tourism Research, vol. 29, no 1. Elsevier Science
Ltd., Great Britain, pp. 56-78.
20
and image, commodities, convenience, culture, people and price only climate and
29
Neeithiahnanthan Ari Ragavan, HemaSubramonian&SaeedPahlevan Sharif. (2014). Tourists
perceptions of destination travel attributes: An application to International tourists to Kuala
Lumpur. 5th Asia Euro Conference 2014.Procedia- Social and Behavioral Sciences 144 403-411.
21
CHAPTER III: THEORETICAL FRAMEWORK AND METHODOLOGY
Theoretical Framework
characteristics possessed by goods are, in principle, objective and the same for all
consumers. While the utility derived by the consumer is subjective and that it
contains the same amount of any characteristics for all consumers. However, each
fundamental propositions:
30
Andreas Papatheodorou. (2000) Why People Travel to Different Places Annals of Tourism
Research, vol 28, no. 1, Elsevier Science Ltd., Great Britain, pp. 164-179.
31
Reuven Hendler. Lancasters New Approach to Consumer Demand and Its Limitation. The
American Economic Review 65 1 (1975).
22
b. Individuals differ in their reactions to different characteristics, rather
and preferences for goods are indirect and derived in the sense that
that will give them their most preferred combination of characteristics which
means that consumers try to maximize the characteristics that they can purchase
with their budget. The characteristics that they can purchase with their budget.
produces32.
maximize U(z)
z = Bx
z, x 0
32
Kevin Lancaster (1966). A New Approach to Consumer Theory, The Journal of Political
Economy, vol. 74, The University of Chicago Press, Chicago, Illinois, pp. 132-157.
23
k = consumers budgeted income
behavior.
of goods that the operational use of the said model requires the identification of
the relevant characteristics and data consumption technology. Given the travel
By applying this in the case of tourism, it can be said that every objective property
24
can be a potential characteristic. Determining the relevant characteristics is the
framework followed in this study is in line with what Lancaster advocated, that is,
Conceptual Framework
multi-step process. The starting point for the model are the tourists then decides
whether to take a holiday. When tourist decides to take a holiday, he or she is then
25
Source: Modified version of H.R Seddighi, A.L. Theocharous
Figure 4: Theoretical Flow
26
Source: Author
Figure 5: Survey Framework
27
Empirical Framework and Methodology
In answering the first two objectives, the binary logit analysis is used
occur. After having the initial results from the survey, the factors shall be grouped
together using the factor analysis in order to determine the variables which has a
28
Source: Modified version of H.R Seddighi, A.L. Theocharous
For the third objective of this study, inputs from the importance and
satisfaction ratings from the respondents are gathered from the Importance-
averaged and then graphed in the scatter plot in order to identify which quadrant
the attributed or factor is according to the visitors. For each quadrant, there is a
29
Source: Liu, et al. 2000
Survey Design
The raw data that is used in this study are from primary sources through a
survey. The target respondents are tourists leaving the province of Palawan. They
questions (see appendix a) are guide to assess their perception of the tourism
able to improve the questionnaire, a pilot test has been done in Manila with 50
respondents.
30
Sampling Method
elements are selected on the basis of their easy availability as well as accessibility.
This method sampling allows a faster analysis focusing on the important aspects
of the study instead of calculating the best way to obtain population sample. One
can still be analyzed and will provide fairly significant insights in the study.
In order to determine the sample size, the following formula will be used:
! (1 )
=
MOE !
where Z represents the confidence level, p(1-p) refers to the data variability of a
proportion, and MOE pertains to the margin of error in the result of the estimation
process. In the study, a 95% confidence level will be used, Z=1.96. This is a
the value of p that obtains the maximum value of the data variability (p(1-
p)=0.25). For the margin of error, a 7% will be utilized. With the given values,
the computed sample size n is 196. An additional 20% of the computed sample
Data Collection
Airport.
31
CHAPTER IV: RESULTS AND DISCUSSION
This chapter presents the results of the study from the survey conducted. The
raw data was inputted and processed using Microsoft Excel and Statistical
Package of Social Sciences (SPSS) software. On the first part of this chapter, a
descriptive analysis of the gathered data is shown. This is followed by the logit
regression and factor analysis done to answer the first two objectives of the study.
(IPA) is done wherein the averages of the attributes were graphed in a scatter plot.
Demographic Profile
There are a total of 236 accomplished surveys for this study. Out of all the
respondents, 74% were domestic tourists and 26% were foreign tourists (see
figure 8).
Foreign
Tourists
26%
Domestic
Tourists
74%
Figure 8: Tourists
32
Table 2: Country of Residence
Country Frequency
Australia 4
Canada 10
Chile 1
Germany 4
Holland 1
Hongkong 2
India 2
Israel 1
Japan 1
Korea 2
UK 5
Netherlands 1
Norway 3
Singapore 1
Sweden 3
Taiwan 1
Turkey 1
Thailand 1
USA 15
USA/Thailand 2
in this study. Most of the foreign respondents were from USA and Canada.
tourism destinations besides Palawan and those who did not. 76% considered
other domestic destination while 24% did not consider other domestic destination.
30% of those who said they did not consider any other domestic tourism were
foreign tourists. For those who considered other domestic tourism destinations,
33
Did
not
consider
24%
Considered
other
Domes9c
Tourism
Des9na9on
76%
Figure 9: Considered other Domestic Tourism Destination vs. Those who did not
34
Table 3 shows the destinations considered by the respondents in making
their trip to Palawan. It seems that most were deciding more on whether they
would travel to Boracay and Cebu aside from Palawan. Aside from this, out of the
were foreign tourists. While for Cebu, out of the 23 tourists, 7 or 30% were
foreign tourists.
49% were male and 51% were female. In terms of age, 40% were ages 15 to 24,
45% were ages 25 to 44, 13% were ages 45 to 64, and 2% were over 65 (see
figure 11). With their civil status, majority are single with 59% of the total
respondents. This is followed by those who are married (37%). In terms of their
income and occupation, 30% of the total respondents are student. The other 70%
these, 9% (see figure 14) have a monthly income of less than Php 10,000 with
occupations such as instructors, cashier and sales staff. 18% have a monthly
20,000) has an occupation of administrative and sales job. 11% has a monthly
respondents are professionals and has an income greater than Php 50,000 (35%).
35
Male
49%
Female
51%
Over
64
2%
45-64
13%
15-24
40%
25-44
45%
36
Widowed
Divorced
0%
2%
Married
37%
Single
59%
Separated
2%
37
70
60
50
40
30
20
10
0
Less
than
P10,000
P21,000
P31,000
P41,000
Greater
than
P10,000
P20,000
P30,000
P40,000
P50,000
P50,000
Travelling Profile
them were for vacation. Figure 16 on the other hand exhibits where the
Palawan from TV/ Radio commercials. This is followed by the Internet and
38
90
80
70
60
50
40
30
20
10
0
Business/
Educa9on
Vaca9on
Mee9ngs
Visit
Family/
Others
Work
Friends
40
35
30
25
20
15
10
5
0
for the first time and those who have already been in the destination. Most of the
respondents were first-time visitors with over 60%. In addition, most of the
39
foreign tourists were first-time visitors. In terms of the first-time visitors gender,
Repeat
visitors
36%
First-9me
visitors
64%
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step OVDERALL 0 0 24 .0
0 EVALUATION 1 0 212 100.0
Overall Percentage 89.8
a. Constant is included in the model.
b. The cut value is .500
According to SPSS (see table 4) out of all the respondents, almost 90%
40
Table 5: Selected profile of respondents who would revisit vs who would not
revisit Palawan
41
Table 5 shows the profile of those who would revisit and not revisit Palawan
given their importance and satisfaction ratings. For those who would revisit
Palawan, 25% were foreign tourists and 55% of the foreign tourists considered
was considered the most. 68% of the total respondents who said they would
considered Boracay while 15% considered Cebu. 83% of them said they visited
Palawan for vacation while 3% were for visiting Friends/Family and 9% were for
business. 62% were first-time visitors while 38% were repeat visitors. 41% were
male and 59% were female. In terms of their marital status, 2.4% were divorced,
37.8% were married, 58% were single. 29% of the respondents who would revisit
were student. The other 71% have jobs with the incomes that vary from less than
Php 10,000: 10%; Php 10,000-20,000: 20%, Php 20,000-30,000: 11%, Php
30,000-40,000: 12%, Php 40,000-50,000: 13% and greater than Php 50,000: 34%.
For those who chose they would not revisit Palawan, 75% of the respondents
who would not revisit Palawan were first-time visitors while 25% were repeat
visitors. 42% of the respondents were foreign tourists and 40% of them
not revisit Palawan, 58% of considered other domestic destinations and these
destinations vary from Boracay to Iloilo etc. 96% said their purpose of visit was
for vacation. In terms of gender, 50% were male and 50% were also female. With
a 2 year college degree, 8% were from some college, 33% had their 4 year college
42
degree and 30% had Masters degree. None were from less than high school and
the professional or doctorate degree category. With their income profile, great
percentage were from the class that has an income of greater than Php50,000 with
41%.
Looking into the ratings for satisfaction and importance, 25% of the
respondents who would not revisit checked the box for Not Applicable in Night
life and Entertainment while 8% of these respondents checked the box for Not
4.333 then lastly by Nature with an average of 4.25. Their lowest average rating is
who would not revisit Palawan, they identified transportation and residents
receptiveness as both the most important attributes, with an average rating of 4.75
followed by Gastronomy with an average rating of 4.68. Nature is the third most
important attribute for the respondents who said they would not revisit Palawan
with an average rating of 4.63. Their least important attribute is Nightlife and
Entertainment.
43
Implications
In the first part of the profiling of the respondents, there seems to be more
Domestic tourists than foreign tourists surveyed in this study. It shows that there
are more domestic tourists coming to the province than foreign which can also be
seen in the historical data in the background of the study. This also suggests that it
is the domestic tourists that drive the tourism industry in the Province as it is more
accessible for these tourists to come back to the province. Domestic tourists are
characteristics of the tourists that would make domestic tourists increase the
In terms of the likelihood of return visit, there are more first-time visitors
than repeat visitor which is alarming since Palawan as a tourism destination need
to generate more repeat visitors. In the latter part of the profiling, a table is
presented wherein it shows the comparison of the profile of those who would
revisit Palawan and those who would not. It seems that there were more first-time
visitors who would not want to revisit Palawan. This shows that Palawan is
lacking attributes which can attract tourists to return to Palawan. Focusing more
on the attributes, the ratings of those who would not revisit seem to show that
some do not experience the attribute for Nightlife and Entertainment as well as
Culture. However it shows that Nightlife and Entertainment is the least important
attribute for them. Looking back at the demographic profile of the respondents,
there was also a great percentage for the age bracket of 15 to 24. This shows that
44
there is not much need for Palawan to focus on this attribute. Moreover, for the
main purpose of visit, a large percentage went to Palawan for vacation. Apart
from sightseeing, the tourism office should also look into other ways wherein
visitors could feel they are actually having a vacation. It implies an increasing
interest towards leisure traveling wherein vacationers spend their time on sports
and outdoor activities apart from a leisurely rest and relaxation they get from
nature. Also, the tourism office should also look into seasonality. What can
office could look into highlighting its cultural heritage more or activities that
would also cater to the ages 15-44 who are for vacation.
they considered other domestic destinations, Boracay seems to have the highest
also important therefore to look at what this destination can offer that Palawan
does not have as it is the destination that tourists prefer. As it can also be seen in
the latter part of the profile, most of those who would want to revisit considered
Palawan, it has to offer more than the usual given that most of those who said
they would not revisit were actually first-time visitors. Comparing Palawan to
as the Last Frontier seems to be becoming more and more popular but there is a
45
large portion of first-time visitors not wanting to revisit which sets a drawback for
province of Palawan is basic but there are still quite a number of unpaved roads
and the power is also limited. Boracay is developed and offers a wide variety of
activities from water sports during the day to bar hoping in the night since the
Most of the respondents have high income with the income of more than
Php 50,000 which confirms that a large number who visits Palawan earns a lot.
Given their high spending power, they are to be considered a good potential
market for the province. To be able to retain this market for the province, again,
the tourism destination must also offer more than nature. Going back to culture
attribute which is important for the respondents but not that satisfied with it (some
did not even feel it), the tourism office should promote their cultural heritage to
these markets attracting them to return to the province. One possibility is looking
into promoting festivals held in the province and making it a once in a year
therefore vital to always update their commercials with their brand as the Worlds
46
Binary Logistic Regression
For the first and second objective of this study, a logistic regression
Model Summary
Step -2 Log Cox & Snell R Nagelkerke R
likelihood Square Square
a
1 103.053 .198 .411
a. Estimation terminated at iteration number 7 because
parameter estimates changed by less than .001.
The first regression done for this study is a simple binary logistic
regression. Seen in table 6 is the evaluation of the regression. The Omnibus tests
of Model Coefficients shows a significant result with significant values less than
0.05. Aside from this, a more reliable test is the Hosmer and Lemeshow goodness
of fit test. The table shows a significant value higher than 0.05 which means it is
47
significant. Lastly, another test that could determine the usefulness of the model is
seen in the Model Summary wherein the Cox & Snell R square values (.198) and
the Nagelkerke R square (.411) shows that between 19.8% and 41.1% of the
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step OVDERALL 0 9 15 37.5
1 EVALUATION 1 4 208 98.1
Overall Percentage 91.9
a. Constant is included in the model.
b. The cut value is .500
accuracy. The overall accuracy rate for this model is 91.9% as showed in table 7.
48
Culture .626 .238 .009 1.870 1.173 2.982
revealed three significant variables at the 95% confidence interval. These are the
relationship was found with other variables. This also shows that only variables
from the Tourism product characteristics has a relationship with the dependent
variable and none from the tourist characteristics (Age, Gender, First Visit, Civil
Status, Income and Education) had a significant relationship with the dependent
variable.
variables i.e, Nature, Culture and Accommodations, the signs of the coefficients
were observed. It seems that all has a positive sign meaning that as the
satisfaction of the tourists towards the different attributes increases, the odds that
variables in influencing their return visit to Palawan, the different values of the
49
coefficient were analyzed. The results show that one unit increase in the
satisfaction with Nature variable, it would lead to an increase in the odds that a
tourist will return to Palawan by 4.836 or almost five times. Similarly, a unit
the odds that a tourist will return to Palawan by 1.870 or 87%. Same goes for the
Factor Analysis
For the next section of this chapter, a factor analysis was utilized in order
With the KMO and Bartley, the factor analysis meets the criteria necessary
50
Table 10: Factor Analysis
a
Rotated Component Matrix
Component
1 2
RR .768 -.018
Climate .732 -.093
Gastr .608 .387
Acc .602 .404
Nature .291 .271
Culture -.049 .797
NightlifeEn .003 .692
t
PVC .417 .573
Trans .442 .512
Extraction Method: Principal
Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 3
iterations.
The table for factor analysis (see table 10) shows that there are two factors
summarizing the tourism product characteristics. For the first factor grouping, the
Entertainment; Price, Value and Cost; and Transportation. The first factor is
renamed as Ambiance while the second factor is renamed as Activities and Price.
Nature is excluded in both factors since its factor loading value is lesser than 0.5
51
Binary Logistic Regression (After Factor Analysis)
Model Summary
Step -2 Log Cox & Snell R Nagelkerke R
likelihood Square Square
a
1 107.689 .182 .378
a. Estimation terminated at iteration number 7 because parameter
estimates changed by less than .001.
significant values less than 0.05. Next test is the Hosmer and Lemeshow goodness
of fit test which shows a significant value higher than 0.05 which means it is
significant. The Model Summary section of the table shows the Cox & Snell R
square values (.182) and the Nagelkerke R square (.378). This means that between
18.2% and 37.8% of the variability of the dependent variable is explained by the
independent variable which was lower than the Before Factor Analysis regression.
logistic regressions, these said correlation measures do not really tell much about
33
Gujarati, Damodar N. Essentials of Econometrics. New York: McGraw-Hill, 1992.
52
the accuracy or errors associated with the model. The important values to look at
accuracy. The overall accuracy rate for this model is 89.8% which is showed in
table 12.
53
FAC1 .484 .266 .068 1.623 .964 2.731
_2
FAC2 1.221 .284 .000 3.389 1.943 5.910
_2
Const -4.265 2.112 .043 .014
ant
a. Variable(s) entered on step 1: FirstVisit, Nature, Age, Gender, Civil, EDUC, income,
FAC1_2, FAC2_2.
The results are consistent with the first regression equation (i.e, before
factor analysis). It shows that at the 95% confidence interval, Nature, Factor 1
(Ambiance) and Factor 2 (Activities and Price) which are tourism product
relationship with the dependent variable. Again, none of the tourist characteristics
(Age, Gender, First Visit, Civil Status, Income and Education) had a significant
The signs of the coefficients shows that all of the significant variable has a
positive sign meaning that as the satisfaction of the tourists towards the different
attributes increases, the odds that they will be return to Palawan also increases.
coefficient show that one unit increase in the satisfaction with Nature variable, it
would lead to an increase in the odds that a tourist will return to Palawan by 4.532
or four and a half times which does not dive away from the first regression. A unit
the odds that a tourist will return to Palawan by 1.623 or 62.3%. With an increase
54
in Activities and Prices satisfaction, the odds that a tourist returning to Palawan
Importance-Performance Analysis
framework is utilized. In this framework the averages of the ratings will be plotted
in the graph creating quadrants that would identify policies and strategies
Averaging the ratings for the attributes of all respondents, the values
passed the quadrant wherein tourists identified them as important and are satisfied
with while in Palawanthe Keep up the good work quadrant. Therefore this
analysis shows that tourism stakeholders should maintain what they are already
offering. While it seems that the variable for Night life and Entertainment are a
unit away from the other variables in both importance and performance levels, it
shows that this variable is less important for the tourists when in Palawan as well
as they are less satisfied with this attribute than most attributes presented in the
matrix.
55
5
4.5
3.5
Performace
3
2
2.5
3
3.5
4
4.5
5
2.5
1.5
1
Importance
only shows the averages of the respondents who would not revisit Palawan. In
this case, most attributes are in the Keep up the Good Work quadrant. The
variables for Culture and Transportation are in the borderline near the
Concentrate Here quadrant. Again, it is obvious from the plot that the variable
for Night life and Entertainment is farther away from most of the variables and is
in the Concentrate Here quadrant. In this quadrant, it shows that the tourists
who would not revisit do not consider the said variables in Palawan as important
56
5
4.5
3.5
Performance
3
2
2.5
3
3.5
4
4.5
5
2.5
1.5
1
Importance
57
CHAPTER V: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
Summary
find out the characteristics of a tourist and the tourism product that would most
likely visit and revisit Palawan as a tourism destination which was done through a
The results of the logit regression model showed that the significant
variables come from the tourist product characteristics and none from the tourist
on the first regression wherein the attributes were not yet grouped. After the factor
analysis, the two factors grouped were significant in the regression. This is
excluding the variable Nature as it has a low factor loading thus retaining it as a
variable in the logit regression done. The results of the after factor analysis
regression were consistent with the before factor analysis regression that no
was done. Results show that for the average of all the respondents (both of whom
who said they would revisit Palawan and would not revisit Palawan), stakeholders
should maintain their current service since most of the respondents put
58
importance on all of the attributes presented and also are satisfied with it. In order
to improve the analysis, another matrix of the IPA framework was done. It shows
that all attributes are important for the respondents. However the satisfaction level
varied and the data points for the attributes are segmented in a way that variables
for Nature, Accommodation, Price, Value and Cost, Gastronomy, Climate, and
(also in the same quadrant but data points are farther) are in the borderline.
Nightlife and Entertainment has another quadrant which showed that respondents
were not satisfied with this attribute but deemed it important when they choose
Conclusion
The results of this study suggest that it is the inherent characteristics of the
tourism product itself that attract the tourists. It is for Palawan and what the
destination can offer that makes tourists revisit. Moreover since the results show
meaning the destination is for any types of tourist. Nature as another variable
those who said they would not revisit the province most of these tourists were first
time visitors which deemed the variable for nature as important and also very
satisfying. What is it then that makes the first-time visitors not want to revisit the
59
province? Nature is not enough for a sustainable growth rate of tourists arrivals.
In terms of importance and satisfaction ratings, the results suggest that for
those who said they would not revisit Palawan given their ratings, Nightlife and
quaint, rustic and underdeveloped. In developed cities such as Manila and Cebu,
nightlife is always crowded and very evident. This is also evident in Boracay
known for its beaches as well but is developed. However in Palawan, it seems to
be just a punctuation meaning its a break from a day filled with other activities,
i.e. sightseeing, island hopping and checking out its beaches and attractions.
need for Palawan to actually focus on this attribute. Moreover, 14% checked the
box for not applicable suggesting that they did not experience this attribute. Also
since one of the attributes that is significant and is almost on the same quadrant as
60
Policy and Strategy Recommendations
highest satisfaction rating for the variable Nature. Palawan has already long been
known for its island and beachesnatural factors. This is why Palawan is greatly
importance on environmental awareness for tourists not just the locals. The
importance of the concept of tourism should not just transcend on the locals, park
coordinators and local government but also to all the other sectors in the
community.
TV/ Radio commercials. Tourism marketers such as DOT and the different
destination in the country. Its future marketing strategies should also focus on its
brand as the Worlds Best Island given its natural attractions which are very
Palawan or revisit Palawan (also implied in the profiling of the respondents), the
local government must look into promoting its heritage through the historical sites
and by creating an event or promoting its festivals that would enhance the cultural
attribute of the destination. The local government should also take into
61
For the accommodation facilities (as one of the significant attribute in the
regression) and tourism agencies, the tourism office of the local government must
have criteria and ratings for allowing these facilities to maintain their business
domestic tourist-specific needs increasing the likelihood of return as they are the
visitors than repeat visitors in the profile of those who said they would not revist
generate more repeat visitors especially when tourists have high spending
powerwhich seems to be the case given that most of the visitors have an income
of greater than Php 50,000. Retaining the market through investments to making
the visitors spend more is appropriate. Moreover since most of the respondents
are in Palawan for vacation, it is an opportunity for the investors to invest heavily
on making the visitors feel vacation through leisure travelling wherein vacationers
spend time on sports and outdoor activities apart from leisurely rest and relaxation
via natural beaches. Apart from this, there are already activities in Palawan that
does not need heavy investments but only needs promotion. These are activities
such as hiking and trekking the mountains and falls. The term appropriate was
coined earlier since most of the respondents are ages 15-44 therefore can spend
62
Recommendations for Further Studies
Palawan which is the Busuanga Airport, a gateway for Coron, should also be
surveyed.
In addition to the attributes, since there are only a set of selected attributes
that are based on the literature evaluated in this study, attributes specific to
Palawan as a destination was not taken into consideration. Hygiene should also be
considered as one of the respondents interviewed for this study suggested. Other
attributes such as water source, and safety and security should also be considered.
More literature about Palawan specified attributes should also be done as a basis
In terms of the method, apart from binary logistic model, there should also
given that most of the tourists coming to Palawan have a high spending power.
63
BIBLIOGRAPHY
Bongkosh, N. R,, Qu, H. & Leong, J. K. (2002). A Study of the Impact of Travel
Satisfaction on the Likelihood of Travelers to Revisit Thailand Journal of
Travel & Tourism Marketing, vol. 12 no 2/3. Binghamton, The Haworth
Press, Inc., New York, USA, pp. 19-43.
Duan-qian, M., Jie, Z., & Hao-sheng, B. A tourist destination choice model based
on Lancasterian characteristics theory and destination image
theory:theoretical analysis and case study[J]. GEOGRAPHICAL
RESEARCH,2005, 24(6): 992-999.
Figini, P. and Vici, L. (2007). Off-season tourists and cultural offer of a mass-
tourism destination: The case of Rimini. The Rimini Centre for Economic
Analysis. Rimini, Italy.
64
Lancaster, K. (1966). A New Approach to Consumer Theory, The Journal of
Political Economy, vol. 74, The University of Chicago Press, Chicago,
Illinois, pp. 132-157.
Liu, C., Chang, C. & Yang, A. (Eds): ICICA 2011, Part I, CCIS 243, pp. 102-
109, 2011
Seddighi H.R. and Theocharous, A.L. "A Model of Tourism Destination Choice:
A Theoretical and Empirical Analysis." Tourism Management 23 (2002):
475-87.
65
Appendix A: Survey
Dear Sir/ Madam,
Good day! I am Althea Salcedo taking my Masters degree in Industrial
Economics at the University of Asia and the Pacific. Your perceptions and
opinions with regards to the importance of the various characteristics of the
tourism product particularly, Palawan as a tourism destination are very important
to my study. Your response will help me understand how travel destinations are
influenced by such characteristics and at the same time help estimate the impact
of each on the tourism industry.
Your participation in this study is entirely voluntary. The information that you
provide will be kept confidential.
Thank you!
1. Are you a resident of the Philippines?
Yes No
I
Althea Mae M. Salcedo. 2015. All Rights Reserved.
PRODUCT CHARACTERISTICS ITRAVEL ATTRIBUTES
Please rate the following attributes according to how importantthey are when
choosing a travel destination
II
PRODUCT CHARACTERISTICS IITRAVEL ATTRIBUTES
Please rate the following travel attributes of the Philippines based on how
satisfied you are during your visit
III
PERSONAL CHARACTERISTICS
OVERALL EVALUATION
Taking into consideration the answers you have provided above, please
indicate whether you will revisit Palawan:
Yes No
IV
Appendix B: Binary Regression Before Factor Analysis
a. If weight is in effect, see classification table for the total number of cases.
0 0
1 1
(1)
0 121 1.000
Gender
1 115 .000
a,b
Classification Table
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
Step 0 OVDERALL 0 0 24 .0
V
EVALUATION 1 0 212 100.0
Score df Sig.
RR 2.951 1 .086
VI
Omnibus Tests of Model Coefficients
Chi-square df Sig.
Model Summary
1 4.220 8 .837
1 13 12.550 11 11.450 24
2 5 5.205 19 18.795 24
3 1 2.775 23 21.225 24
4 3 1.433 21 22.567 24
5 1 .855 23 23.145 24
Step 1
6 1 .541 23 23.459 24
7 0 .335 24 23.665 24
8 0 .187 24 23.813 24
9 0 .088 24 23.912 24
10 0 .031 20 19.969 20
VII
a
Classification Table
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
OVDERALL 0 9 15 37.5
a. Variable(s) entered on step 1: FirstVisit, Age, Gender, Civil, EDUC, income, Nature,
Culture, NightlifeEnt, PVC, Trans, Acc, Gastr, Climate, RR.
VIII
Appendix C: Binary Logistic Model After Factor Analysis
a. If weight is in effect, see classification table for the total number of cases.
0 0
1 1
(1)
0 121 1.000
Gender
1 115 .000
a,b
Classification Table
Observed Predicted
0 1 Correct
0 0 24 .0
OVDERALL EVALUATION
Step 0 1 0 212 100.0
IX
b. The cut value is .500
Score df Sig.
Chi-square df Sig.
Model Summary
X
Step -2 Log likelihood Cox & Snell R Nagelkerke R
Square Square
a
1 107.689 .182 .378
1 11.791 8 .161
1 11 11.842 13 12.158 24
2 6 5.541 18 18.459 24
3 1 2.698 23 21.302 24
4 5 1.536 19 22.464 24
5 0 1.015 24 22.985 24
Step 1
6 1 .613 23 23.387 24
7 0 .390 24 23.610 24
8 0 .211 24 23.789 24
9 0 .115 24 23.885 24
10 0 .039 20 19.961 20
XI
a
Classification Table
Observed Predicted
OVDERALL Percentage
EVALUATION Correct
0 1
OVDERALL 0 5 19 20.8
Lower Upper
Gender(
.084 .522 .026 1 .873 1.087 .391 3.024
1)
Step
Civil .703 .584 1.449 1 .229 2.020 .643 6.345
a
1
EDUC .215 .203 1.122 1 .289 1.240 .833 1.845
a. Variable(s) entered on step 1: FirstVisit, Nature, Age, Gender, Civil, EDUC, income, FAC1_2,
FAC2_2.
Correlation Matrix
Const FirstVi Natur Age Gender Civil EDUC incom FAC1 FAC2
ant sit e (1) e _2 _2
Step Consta
1.000 -.334 -.865 -.275 -.165 .043 -.234 .303 .088 -.009
1 nt
XII
FirstVis
-.334 1.000 .109 -.084 .112 .160 .284 -.273 .060 -.098
it
Nature -.865 .109 1.000 .010 -.038 .077 .023 -.163 -.099 .187
Age -.275 -.084 .010 1.000 .164 -.523 -.229 -.361 .147 -.056
Gender
-.165 .112 -.038 .164 1.000 -.048 .099 -.183 .099 -.034
(1)
Civil .043 .160 .077 -.523 -.048 1.000 .145 -.142 -.015 .070
EDUC -.234 .284 .023 -.229 .099 .145 1.000 -.393 -.012 .055
income .303 -.273 -.163 -.361 -.183 -.142 -.393 1.000 -.097 -.057
FAC1_
.088 .060 -.099 .147 .099 -.015 -.012 -.097 1.000 .275
2
FAC2_
-.009 -.098 .187 -.056 -.034 .070 .055 -.057 .275 1.000
2
XIII