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The first issue is “sex tourism”, which includes prostitution. Tourists generally have a higher level of income than the local population which allows them to buy sexual services. In countries with high poverty levels, such as the Philippines, women and children will come to the city for the sex industry.8 Another issue is that with gaming comes addiction. Making it available near a large city such as Manila makes it more available and accessible to many people. Asia does have a gambling problem, but because of the Asian‟s love for gaming, the industry is expanding rapidly in that part of the world. Researchers feel that due to this, pathological gambling could reach epidemic proportions in coming years.9 In is incumbent on the Philippine government and the tourism department to try to stem this from lessons learned in other places such as Macau and Singapore.

3. If you were going to market the Philippines as a tourist destination, and you were putting on your yellow hat from de Bono, what items would you stress to market tourism? (10 points)

According to our readings, the Philippines main attraction is its diversity.10 It is a country of 7107 islands, it has large scale resorts and smaller ecotourism developments, it has history, and it has beautiful beaches and mountains. This diversity and the fact that there is something for everyone to do is what needs to be marketed. Also, this diversity means that even the local population should be targeted since probably many have not seen everything there is to see. The Department of Tourism has already begun this in a campaign to encourage the public to take long weekends and tour the country, whether in nearby municipalities or provinces. 11

There is another area that could be targeted and that is a combination of Filipinos living abroad and the real estate market in the Philippines. There are over three million Filipinos in the U.S. alone who still value their Filipino culture, history, and heritage. There is a push to get them to buy a second home in the Philippines. Once they have this property in the Philippines there is a tendency to vacation there more often and for longer periods of time12. This is actually part of their “The Philippines: Live Your Dream” campaign. Come vacation here and buy a vacation home while you‟re here. The cost of living is low and the real estate market is booming right now, making it look like an ideal investment right now.13

4. Godbey and Haworth Hospitality Press discuss the future of leisure. They mention the experience economy. What is our current economy now referred to and how will this change in economy change the way hospitality leaders do business? How would you apply this to the Philippines.(20 points)

We are currently in the service economy which refers to a couple of economic developments. One is that today, more of the Fortune 500 companies are service companies rather than manufacturing companies. It also refers to the relative importance of service in a product offering; today‟s products have a higher service component than in previous decades. This is called the servitization of products: everything purchased has a significant service component.14 In other words, value is added by adding service.

However, the experience economy is now replacing the service economy. Consumers are not looking for services, they are looking for experiences. Consumers dine at theme restaurants, shop at experiential destinations, and vacation at resorts and theme parks that offer a grand experience. When people buy an experience, they pay to spend time enjoying a series of memorable events that engage them in a personal way.15

This will change the way hospitality leaders do business, as they will now need to not just focus on what services to provide but how to ensure that the service provides the guest with a memorable experience. The

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