MICROECONOMICS COURSEWORK

Microeconomics Coursework: Philippines Tourism

Microeconomics Coursework: Philippines Tourism

Introduction

It is believed that Philippines has lost in the seas and oceans with more than seven thousand islands, the most popular destinations in South-East Asia. The 7107 Island, each of which has its own coach "character" - the abundance of discos and clubs to retreat in the lap of nature. The excellent climate, wonderful living flora and fauna, magnificent beaches are all about the Philippines. In this country travellers going to the level of income "above average": A lot of young people, couples, and eco-tourists find this country as a utopia in this real world.

As Philippines is to provide low-cost flights low cost airlines and much more, Philippines is becoming a very popular holiday place, and its attainment in the year 2004 of May, enabled Philippines to enhance the quality of holidays that it offers to its guests. The best preserved islands, because the country is often called, provide plenty of resorts and beaches, it is also a friendly, welcoming and the general population on the island and island life completely refresh the view with literally the great culture and being a place full of historical values. Most speak Pilipino and English, and being around the island of Philippines has become relatively easy and offering the public transport services, almost all the island areas and car rental services that is widely available for the tourists.

Discussion

In the last 40 years, the international tourism industry in Philippines has been very successful, and it is considered as international economic success (Coccossis and Parpairis 1995, pp.107). The positive effect of tourism on economic development is the driving factor behind the governments of in Philippines economy to pursue investment in tourism (Hall 1995, pp.12). Tourism is perceived as a means for regional, as well as, national development to enhance infrastructure, balance of payments, foreign exchange revenues and employment in Philippines (Edwards 2004, pp.9). In Philippines, sustainable tourism is especially important because it has the potential to bring social, economic, and environmental benefits.

Sustainable tourism seeks to meet three over-arching goals: the quality of life of host societies must be improved; to accomplish visitor happiness; and to guard natural resources in destination countries (Hunter and Green 1995, pp.31). Inskeep has defined sustainable-tourism as, “which… meets the needs of present tourists and host regions while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems” (1991, pp.461).

Tourism Demand and Supply

Demand and supply are said to be in equilibrium when producers do not have an incentive to change their supply, and consumers do not have any incentive to move their demand schedules. However, upward movements in demand could lead to a relatively shortened supply and creates a tendency of upward price movements. Therefore when there is excess demand, prices will be driven upwards whilst prices will fall if ...