Technical Notes

 

PTSA Technical Notes

A. Conceptual Framework of the Philippine Tourism Satellite Accounts

The basic reference of PTSA is the International Recommendation for Tourism Statistics 2008 (IRTS 2008) and Tourism Satellite Account: Recommended Methodological Framework 2008 (TSA: RMF 2008).

B. Concepts and Definitions

Tourism satellite account can be viewed from two perspectives, the demand side and supply side. The demand side refers to the demand for goods and services associated with tourism, whereas the supply side refers to the supply of these goods and services.

Demand Perspective

a. Travel/traveler - Travel refers to the activity of travellers.  A traveller is someone who moves between different geographic locations for any purpose and any duration (IRTS 2008, para. 2.4).

Travel within a country by residents is called domestic travel.  Travel to a country by non-residents is called inbound travel, whereas travel outside a country by residents is called outbound travel (IRTS 2008, para. 2.5).

b. Trip refers to the travel by a person from the time of departure from his usual residence until he/she returns: it thus refers to a round trip. A trip is made up of visits to different places (IRTS 2008, para. 2.33).

c. Inbound trip will correspond to the travel between arriving in a country and leaving, whereas a domestic trip or an outbound trip will correspond to the travel between leaving the place of residence and returning. A domestic trip has a main destination in the country of residence of the traveller, while an outbound trip has a main destination outside this country
(IRTS 2008, para. 2.31)

d. Visitor is a traveler taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited. These trips taken by visitors qualify as tourism trips. Tourism refers to the activity of visitors (IRTS 2008, para. 2.9).

e. Usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines (IRTS 2008, para 2.21). The purpose of introducing the concept of usual environment is to exclude from visitors those travelers commuting regularly between their place of usual residence and place of work or study, or frequently visiting places within their current life routine, for instance homes of friends and relatives, shopping centers, religious, health-care or any other facilities that might be at a substantial distance away or in a different area but are regularly and frequently visited (IRTS 2008, para. 2.23).

f. Tourism is a subset of travel and visitors are a subset of travellers. These distinctions are crucial for the compilation of data on flows of travellers and visitors and for the credibility of tourism statistics (IRTS 2008, para. 2.12).

g. Visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor) if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise (IRTS 2008, para. 2.13).

Forms of Tourism

a. Domestic tourism, which comprises the activities of a resident visitor within the country of reference either as part of a domestic tourism trip or part of an outbound tourism trip (IRTS 2008, para. 2.39a);

b. Inbound tourism, which comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip (IRTS 2008, para. 2.39b); and

c. Outbound tourism, which comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip (IRTS 2008, para. 2.39c).

Tourism expenditure is the amount paid for the acquisition of consumption goods and services as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves as well as expenses that are paid for or reimbursed by others (IRTS 2008, para. 2.21)

Tourism consumption has the same formal definition as tourism expenditure. Nevertheless, the concept of tourism consumption used in the TSA goes beyond that of tourism expenditure. Actually, besides “the amount paid for the acquisition of consumption goods and services, as well as valuables for own use or to give away, for and during tourism trips” that corresponds to monetary transactions (the focus of tourism expenditure), it also includes services associated with vacation accommodation on own account, tourism social transfers in kind and other imputed consumption. (IRTS 2008, para. 2.25)

Supply Perspective

a. Tourism characteristic goods and services refer to products that are typical for tourism, which in the absence of visitors, in most countries would probably cease to exist in meaningful quantity or for which the level of consumption would be significantly reduced and for which it seems possible to obtain statistical information (IRTS 2008, para. 5.10).

b. Tourism connected goods and services include those that have been identified as tourism specific in a given country but for which this attribute has not been acknowledged on a worldwide basis.

c. Tourism characteristic activities are the activities that typically produce tourism characteristic products (IRTS 2008, para. 5.11).

Variables Characterizing the Tourism Industries

a. Gross Value Added of Tourism Industries (GVATI)

The GVATI is the sum of total gross value added of all establishments belonging to tourism industries, regardless of whether all their output is provided to visitors and the degree of specialization of their production process.

b. Tourism Direct Gross Value Added (TDGVA)

The TGDVA refers to the part of gross value added generated by tourism industries and other industries of the economy that directly serve visitors in response to internal consumption. It also includes the part of gross value added associated with the output of other (non-tourism) industries as long as this output responds to tourism consumption.

c. Tourism Employment

Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, or as a count of the jobs in tourism industries (IRTS 2008 para. 7.9.)

C.  Data Sources

Demand Side

Data

Description/Uses

Source

Arrival/Departure (A/D) Card

Provides passenger identification and record of a person’s entry to and departure from the country. It is the primary source of information on the volume of inbound visitors in the country and outbound Filipino visitors.

Bureau of Immigration

Visitor Sample Survey (VSS)

Provides information on average expenditures and length of stay of inbound visitors. The survey is conducted by the Department of Tourism (DOT) on a monthly basis.The VSS is a personal interview of randomly selected sample of departing visitors in international airports worldwide. It is the source of the average daily expenditure, and the average length of stay of inbound visitors.

DOT

Meetings, Incentives, Conventions and Exhibitions (MICE) Survey

Provides information for average expenditures paid on behalf of inbound visitors and domestic visitors

DOT

Household Survey on Domestic Visitors (HSDV)

Used for the volume, average expenditures, and length of stay of domestic visitors

DOT and PSA

Regional Travelers

Information is sourced from the Local Government Units (LGUs) and DOT. It is used to extrapolate data on volume of domestic visitors of HSDV

DOT

Supply Side

Data

Description/Uses

Source

Census of Philippine Business and Industry (CPBI) and Annual Survey on Philippine Business and Industry (ASPBI)

Primary source of benchmark estimates for tourism industries and parameters on employment in tourism industries

PSA

Labor Force Survey (LFS)

Provides information on employment generated by industries

PSA

National Accounts of the Philippines (NAP)

Provides the output indicators (derived from sales and revenues) used in deriving the production component of PTSA

PSA

Supply and Use Table (SUT)

Primary source for the benchmark estimation of the production accounts of tourism and non-tourism industries. It provides information on the economic structure of the country. The 2018 SUT provides the benchmark ratios used in estimating the production account on tourism industries (GVATI and TDGVA)

PSA

D. Estimation Methodology

Table 1 Inbound Tourism Expenditure

- is the sum of product of:

  • total inbound visitor arrivals (r)
  • average length of stay (l)
  • average daily expenditures for each of the expenditure items (e)

where:
i refers to the expenditure items, namely:
1. accommodation services for visitors
2. food and beverage serving services
3. transport services
4. travel agencies and other reservation services
5. entertainment and recreation
6. country specific tourism characteristic goods (shopping)
7. miscellaneous

Table 2 Domestic Tourism Expenditure

- is the sum of the product of:

  • total inbound visitor arrivals (r)
  • average length of stay (l)
  • average daily expenditures for each of the expenditure items (e)

where:
i refers to the expenditure items, namely:
1. accommodation services for visitors
2. food and beverage serving services
3. transport services
4. travel agencies and other reservation services
5. entertainment and recreation
6. country specific tourism characteristic goods (shopping)
7. miscellaneous

Table 3 Outbound Tourism Expenditure

- is the sum of the product of:

  • total outbound visitor arrivals (r)
  • average length of stay (l)
  • average daily expenditures for each of the expenditure items (e)

where:
i refers to the expenditure items, namely:
1. accommodation services for visitors
2. food and beverage serving services
3. transport services
4. travel agencies and other reservation services
5. entertainment and recreation
6. country specific tourism characteristic goods (shopping)
7. miscellaneous

Table 4 Internal Tourism Expenditure

- is the sum of inbound (Table 1) and domestic tourism expenditure (Table 2)

Table 5 Gross Value Added of Tourism Industries (GVATI)

- presents the production accounts of tourism industries and other industries in the economy of reference

Table 6 Tourism Direct Gross Value Added (TDGVA)

- is an extension of Table 5

Table 7 Employment in Tourism Industries

- number of persons employed in each of the identified tourism-characteristic industry

E. TSA Tables and Accounts

The following are the available tables:

Table 1
Inbound Tourism Expenditure

Refers to the expenditure of non-resident visitors within the Philippines

Table 2
Domestic Tourism Expenditure

Refers to the expenditure of resident visitors within the country

Table 3
Outbound Tourism Expenditure

Refers to the expenditures of Filipino residents outside the Philippine economy

Table 4
Internal Tourism Expenditure
Refers to the tourism consumption of both resident and non-resident visitors within the Philippine economy or the sum of inbound tourism expenditure (Table 1) and domestic tourism expenditure (Table 2).
Table 5
Gross Value Added of Tourism Industries (GVATI)

Refers to supply table that focuses on tourism characteristic products and tourism industries

Table 6
Tourism Direct Gross Value Added (TDGVA)

Refers to the reconciliation of internal tourism consumption with domestic supply

Table 7
Employment in Tourism Industries

Refers to the employment in tourism characteristic industries

Table 8
Derived Indicators

It includes quantitative indicators that are related to the previous tables

 

F. Sources of Revision

The revision of PTSA came from several sources. The most significant is the incorporation of 2018 SUT and revised indicators from the 2018-based Philippine System of National Accounts (PSNA).  In addition, the results of 2016 HSDV and establishment survey are incorporated. The 2016 PTSCS is adopted for the classification of tourism characteristic products and tourism characteristic industries. Sources of revision on the values in Tables 1 to 6 are specified below.

a.) Table 1. Inbound Tourism Expenditure

Published

Revised

Source Agency

a. Passenger Transportation Services from the 2000-based PSNA

Passenger Transportation Services from the 2018-based PSNA

PSA

b.) Table 2. Domestic Tourism Expenditure

Published

Revised

Source Agency

a.   Implicit Price Index from the 2000-based PSNA

Implicit   Price Index from the 2018-based PSNA

PSA

b.   Parameters from the results of 2005 and 2010 HSDV

Parameters from the results of 2016 HSDV

DOT and PSA

c. Domestic travelers from distribution of regional travelers (as of May)

Domestic travelers from distribution of regional travelers (as of August)

DOT

c.) Table 3. Outbound Tourism Expenditure

Published

Revised

Source Agency

a. Number of outbound Filipinos

Number of outbound Filipino visitors

DOT

b. Preliminary data on average daily expenditure and average length of stay

Latest data on average daily expenditure and average length of stay

Other countries, DOT and PSA

d.) Table 4. Internal Tourism Expenditure

  • Revision was due to the revised table 1 and 2.

e.) Table 5. GVATI and Table 6. TDGVA

Published

Revised

Source Agency

a. 2012 Input-Output Accounts and 2000-based GDP levels

2018 SUT and 2018-based GDP levels

PSA

b. Output structure from 2006 IOSPBI

Output structure from 2018 SUT

PSA

c. Published estimates of Internal Consumption Expenditure

Revised estimates of Internal Consumption Expenditure

PSA

 

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Contact Us

Technical Inquiries:

Ms. Vivian R. Ilarina
Assistant National Statistician
Macroeconomic Accounts Service
Telephone: (02) 8376-1996
E-mail: v.ilarina@psa.gov.ph

Mr. Gerald Junne L. Clariño
Division Chief
Satellite Accounts Division
Telephone no: (632) 8376-1959
E-mail: g.clarino@psa.gov.ph

Publication Inquiries:

Ms. Maria Belen Pecson
Librarian II
Telephone no: (632) 8462-6600 loc. 839
E-mail:  info@psa.gov.ph

 

Given the importance of tourism in the overall economic growth in the country, one would wonder how much income does tourism bring into the country. In response to this, the Philippine Statistics Authority (PSA)  and the Department of Tourism (DOT) are closely working together to measure the contribution of tourism in the economy through the institutionalization of the PTSA.