Situating the Informal Sector in the Philippine Tourism Value Chain: Evidence, Opportunities, and Contentions in the Case of Binondo, Manila

Abstract

Informality in the tourism sector of the Philippines is a pervasive phenomenon, yet only few studies have explored the former's contribution to the latter, especially at the local level. Hence, this chapter utilizes a tourism value chain model developed by the United Nations World Tourism Organization and Directorate-General for Development and Cooperation (DEVCO) to determine the presence and examine the role of the informal sector in various spheres of Binondo's tourism industry. Findings reveal that informality is thriving in the areas of transportation, food and beverage, handicraft, leisure, excursion, tours, and support services. Conversely, they are inexistent or less visible in the accommodation and tourism assets in destination segments. Moreover, the fragmented tourism value chain of Binondo is heavily shaped by three primary challenges, namely, difference in perception between decision-makers and economic actors, resistance to change by the informal sector, and lack of relevant data to support evidence-based policymaking. To address these issues, the local government of Manila City may hence consider the following policy options: (i) mainstream a “whole-of-locality” approach, (ii) conduct an industry mapping of Binondo's tourism value chain, (iii) facilitate linkages between formal and informal businesses, (iv) develop shared infrastructure and extend capacity-building to the informal sector, and (v) employ a regulatory sandbox approach.

Citation

Katigbak, J.J.P. and Dopeño, A.J.E. (2024), "Situating the Informal Sector in the Philippine Tourism Value Chain: Evidence, Opportunities, and Contentions in the Case of Binondo, Manila", Rivera, J.P.R., Gutierrez, E.L.M. and Roxas, F.M.Y. (Ed.) Revisiting Sustainable Tourism in the Philippines (New Perspectives in Tourism and Hospitality Management), Emerald Publishing Limited, Leeds, pp. 67-84. https://doi.org/10.1108/978-1-83753-678-820241004