The Arroyo administration introduced holiday economics in 2001 to boost local tourism industry in the country. However, questions on the soundness of adjusting the observance of dates of national holidays to give way to long weekends were raised. Critics claim this would affect economic productivity resulting in lower output.

NSCB computations show that if consumptions in tourism-related industries increased by 10 percent as a result of extended weekends/holidays, the country could actually experience a 3.5 percent growth in the level of Gross Domestic Product (GDP). This was the result of an Impact Analysis conducted by the NSCB using the 1994 Input-Output (I-O) Accounts. As in all IO-based exercises, however, it assumes that no technological change has happened since 1994.

Likewise, using the preliminary results from the 1998 Philippine Tourism Satellite Accounts (PTSA), six (6) industries are likely to be affected by the increase in tourism-related activities. These include: hotels and other lodging services, food and beverage, miscellaneous tourism services (trade) cultural services, recreational and other entertainment, passenger transport (land, air and water) and travel agency, tour operator and tourist guide services.

The results also showed that if consumption in the identified industries would increase by 10 percent due to holiday economics or other factors:

1. Consumer spending, as measured by the personal consumption expenditures (PCE), will grow by 4.9 percent;

2. The resulting 4.9 percent increase in PCE can push total final demand and total output by 3.5 percent and 3.8 percent, respectively;

3. Among the tourism-related industries, the levels of trade and food manufactures, which had a combined share to total GVA of 23.0 percent, will likely expand by 8.8 percent and 5.5 percent, respectively; and

4. In terms of GVA, the aggregate land, water and air transport could increase by 5.4 percent, beverage by 9.9 percent, recreational services by 4.4 percent and hotels and restaurants by 5.9 percent.

For inquiries, please contact:

Ms. Vivian R. Ilarina at telephone number 896-5372 or through e-mail addresses vr.ilarina@nscb.gov.ph.