Factors that Drive Environmentally Sustainable Tourism

ALT-CFT Case Study:

AQUINO, Timothy Jorelle B.


Case A1: The case is about the Philippine Department of Tourism (DOT) Secretary Ramon R. Jimenez Jr. looking to determine how much importance ASEAN tourism should give to environmental sustainability issues as it moves towards economic integration in 2015, and how ASEAN fares relative to the EU in this regard. Environmental sustainability was identified as the area of focus because of the benefits that the region’s tourism derives from its extraordinary natural heritage, but the lack of measures taken towards its preservation, as determined by the World Economic Forum (WEF). He commissioned his statistician, Michael Villanueva, to analyze the WEF’s Travel and Tourism Competitiveness Index (TTCI) using statistical tools to shed some insight into these issues. Seeing the results, Jimenez must now evaluate the utility of using the chosen statistical tools, ask himself if the kinds of conclusions derived from the interpretations of the results can convince his fellow ministers to take more action towards environmental sustainability, and determine the kinds of decisions and strategies that ASEAN can take towards pursuing environmentally sustainable tourism as a matter of regional policy.

Case A2: The second case serves as the prequel to the previous one, taking the reader back to when Villanueva was still working to produce the report commissioned by Jimenez that would investigate the relationship between environmental factors and tourism outcomes using the TTCI. The case is set after having just completed the regression analysis but before proceeding into the comparative analysis using difference of means. In addition, Villanueva opted to include three basic economic factors to offer a significant improvement in the explained variation rather than if he were to use environmental factors alone. The first is purchasing power parity, used to represent price competitiveness, the second, world GDP, which provides a snapshot for the state of the world economy, and third, the S&P Global Luxury Price Index, which represents the luxury substitutes to travel and tourism. Lastly, he introduced a dummy variable that would capture all the other extraneous differentiating factors between EU and ASEAN such as geographic proximity and location, degree of economic and political integration, etc.


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