THE IMPACT OF SELECTED

TRANSPORT INFRASTRUCTURE TO
INTERNATIONAL TOURISM DEMAND
AND AND THE CAUSALITY
BETWEEN EMPLOYMENT AND
INTERNATIONAL TOURISM
DEMAND: THE CASE OF THE
PHILIPPINES

Dela Cruz, Issabel
Panganiban, Marienne O.
Santos, Antheya Robynne
During the year 2013, the Department of Tourism
received P2.9 billion which is 0.29% of the governments
budget.
It is considered to be an imperative part of the countrys
economy because it contributes P238 billion or 7.9% to
the countrys GDP.
Approximately 3% of our GDP which is 399 billion pesos
will be allocated for infrastructure development in 2014.
(NEDA)
A country may provide a sufficient number of transport
infrastructures but its quality may not meet the demands
of tourists.
The tourism industry is a labor-intensive sector making it
one of the worlds top creators of jobs. (ILO)
Tourism industry opens its door for the less skilled workers
which allow the quick entry of people in the labor force.
It is a question whether the tourism sector in the
Philippines requires employees to have a high-quality
education and decent training.

Research Questions
1. Is transport infrastructure (roads, railways and airports) a
determinant of international tourism demand?
2. Which of the following transport infrastructure (roads,
railways and airports) mostly affect international tourism
demand?
3. How much does the international tourism generate
employment in the tourism sector?
Research Simulacrum
Hypothesis
Hypothesis 1: There is a positive relationship between
roads and international tourism.
Hypothesis 2: There is a positive relationship between
railways and international tourism.
Hypothesis 3: There is a positive relationship between
airports and international tourism.
Hypothesis 4: International tourism demand causes
employment in the tourism sector.

Defining Conceptual Tags
Employment number of employed in the tourism sector
International tourism demand number of tourist arrivals
in The Philippines
Roads length of paved roads divided by the size of the
country
Railways route length of the railway network
Airports number of international airports in the country
Research Method
The researchers will gather secondary data from the
Department of Tourism, World Bank and National
Statistical Coordination Board.
Research Method
The econometric model used to determine the
relationship among the transport infrastructure (roads,
railways and airports) and the international tourism
demand is the multiple linear regression which is derived
from the study of Khadaroo and Seetanah.
(Eq.1) TOUR
odt
=
0
+
1
ROAD
dt
+
2
RAIL
dt
+
3
AIR
dt
+ odt


Research Method
The econometric model used to determine the
relationship between international tourism demand and
employment in the tourism sector is the Granger
Causality method.


(Eq.2)

(Eq.3)