Path Analysis of Climate and Tourism to the Economic Growth in the Philippines

Abstract

This study is an empirical validation of the economic and environmental parameters of tourism in the Philippines. The determined tourism factors to be affected by tropical depressions are: tourist arrivals, tourism employment rate and travel price. These factors had varied impacts on economic growth in terms of annual gross domestic product through: exchange rate, inflation rate, consumer price index, and employment rate. The researcher utilized a path analysis to determine which among the tourism factors had a robust effect by the tropical depression. This study also concludes the effects (both direct and indirect) of predictors to GDP. A model was established from the predictors (x) to its response (y). To demonstrate the paths from the origin to the end, a computed path coefficients were generated. The summation of value effects was determined and an effect model was established. Findings revealed that travel price factor was a prevalent element that influenced the volatility of GDP and not more on the tourist arrivals and tourism employment rate. Tourists, regardless of nationality, prefer to spend more their money, enjoy and mesmerize the natural beauty of Philippines even with the occurrence of natural disturbances. Hence, this study implies on strengthening the policy of fixed prices on travels and all in-country cost, developing more the outdoor and indoor tourism industry, the Philippines infrastructure to sustain and enhance tourism services.