Strama Paper

[ BLUE HORIZON ] IX. STRATEGY EVALUATION IX. STRATEGY EVALUATION

At the end of the year performance evaluation will be conducted in order to know if the strategies implemented are efficient to achieve organizational goal.  Company evaluation and control program are parts of company’s evaluation, company quantifiably monitor the important features and characteristics of its products and services moreover the company evaluates the performance of the employees together with the staff as well as management and process creating the company’s products and services.

       By performance measures support in top management decision-making (managerial aspect) together with the middle management in providing useful information on how efficient and effective are the company’s process and performance of people within the organization towards to their objectives and goal. If the company satisfies the customer needs and desire, if the implemented strategies generate more income, if the product and services improvements are necessary for the market growth and increase in market share. All potentials outcome as a result of the strategies implemented should be monitor and evaluate to make some necessary adjustment, revision and improvements are needed.

Strama Paper

[ BLUE HORIZON ] IX. STRATEGY EVALUATION IX. STRATEGY EVALUATION

At the end of the year performance evaluation will be conducted in order to know if the strategies implemented are efficient to achieve organizational goal.  Company evaluation and control program are parts of company’s evaluation, company quantifiably monitor the important features and characteristics of its products and services moreover the company evaluates the performance of the employees together with the staff as well as management and process creating the company’s products and services.

       By performance measures support in top management decision-making (managerial aspect) together with the middle management in providing useful information on how efficient and effective are the company’s process and performance of people within the organization towards to their objectives and goal. If the company satisfies the customer needs and desire, if the implemented strategies generate more income, if the product and services improvements are necessary for the market growth and increase in market share. All potentials outcome as a result of the strategies implemented should be monitor and evaluate to make some necessary adjustment, revision and improvements are needed.

Strama Paper
STRAMA PAPERS-TOTI DULAY

[blue horizon] strama paper(con 4.0 Technological Forces

Technology affect the tourism industry, the better information system that travel agency have the efficient and effective is the services provided by them. The travel industry is being fundamentally altered by Information Technology. Historically airlines and large hotel chains, for example, have been early adopters of new technologies such as Computer Reservations Systems (CRSs).The distribution network being used by the travel industry is in many ways outdated, relying on third parties such as CRS vendors or travel agents who have traditionally justified their presence through a specialized technology infrastructure and specific knowledge. Impact of Information Technology is that the emergence of electronic markets will promote the bypassing of intermediaries and ability of Information Technology to significantly reduce transaction costs. Travel products and services possess many characteristics needed to function in the electronic environment. The ease of description and commodity-like nature of many travel products (such as airline seats or hotel rooms) suggests that the travel industry exhibits the product attributes that are favourable for electronic commerce. 

Blue Horizons Travel and Tours use the advanced Abacus Space system for our airline reservations.

             Abacus Space System is Asia’s leading travel technology and online partner with a proven reputation for helping its customers succeed online.Our solutions and services for the Online Agency empowers you to offer differentiated service, build customer loyalty and increase up sell/cross-sell opportunities

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[blue horizon] strama paper (con.)

B. PORTER’S FRAMEWORK

1.    Rivalry with the industry

The travel agency segment in the Philippines continues to mirror tight and heavy competitions. As time runs more and more Travel Agencies and innovate their respective services. As in the process of doing this Porter’s Framework, the researchers listed three competitors for Blue Horizon Travel and Tours Inc. They are the Philippine World Travel Inc., Phil scan Travel and Tours Inc.  and Phil explorer Travel Company. These travel agencies offer almost the same services and the competition now will only depend on their performances when it comes to rendering services for their respective clients.

2.    Threat to the new entry

       For Blue Horizon Travel and Tours Inc. to be productive against its competitors, the said travel agency had to come up with an effective marketing strategy to attract customers by having both inbound and outbound travel divisions and handling all kinds of travel requirements to any destination here in the Philippines including the domestic flights, packaging tours, hotel reservations and more. Blue Horizon Travel and Tours Inc. were voted “Best Travel Agency in the Philippines” in 2008 and 2009 by readers of TTG Asia Magazine.

3.    Availability of the Substitute

Some of the new entrants in the travel agency industry are WOW Philippines travel agency and Philippine Holiday. The mentioned travel agencies became very popular with the help of heavy advertisements that helped them to be recognized by the people even before the peak of their career. 

4.    Bargaining power of the suppliers

The customers of Blue Horizon Travel and Tours Inc. are clearly the person who belong to middle to upper class and consists of tourists/foreigners, government officials, students, professionals such as businessmen and stockholders and children of all ages. Considering the fact that not all people can afford their services’ prices, many people still believe that the price of the Blue Horizon’s services is worth to satisfy their amusement needs and it is very convenient. 

5.    Bargaining power of the customers

The suppliers and partners of Blue Horizon Travel and Tours Inc. are International Air Transport Association (IATA), Pacific Asia Travel Association (PATA), Philippine Conventions & Visitors Corporation (PCVC), Philippine Travel Agencies Association (PTAA), Philippine Tour Operators Association (PHILTOA), Philippine IATA Agents Travel Association (PIATA), Movement of Incentive Travel Executives (MITE), British Chamber of Commerce of the Philippines, Australia & New Zealand Chamber of Commerce, Makati Tourism Foundation, Cebu Association of Tour Operators (CATO) and Cebu Travel Agencies Association (CTAA).

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[blue horizon]strama paper(con.)

C. MAJOR COMPETITORS

1.    Rajah Travel Corporation  

    Rajah Travel Corporation established in 1972. It has always been a BSP/IATA-approved travel agency that concentrates on international and domestic ticketing and reservations, wholesaling of tour packages and consolidating for airlines, international affiliation with Carlson Wagonlit Travel (CWT). Rajah Travel has been part of the CWT Network since 1995, through which we have optimized our ticketing capability, as well as benefited from the acquisition of several Global and Regional Clients. Rajah Travel Corporation offers unique and affordable tour packages within the Asia Pacific Region, Europe, North and South America.
       At present, Rajah Travel is Philippines’ General Sales Agent for Insight Vacations PTE LTD since 1982 and Contiki Tours International, Limited since 1997, two of the largest motor coach operators in Europe. It is also the Preferred Sales Agent for Norwegian Cruise lines, Star Cruises, and Silver sea Cruise lines. It is also a consortium member of various airline programs. Its achievements have been recognized through its existence and received a host of Top Producer Awards from various airlines and international tourism organizations.

       Rajah Travel Corporation has a long-standing partnership with embassies and government entities with which it is accredited.

EMBASSY ACCREDITATIONS

* Embassy of Japan – one of only 5 accredited agencies under Category A

* Embassy of the Republic of Singapore – one of only 4 accredited agencies

* Embassy of the Federal Republic of Nigeria

* Embassy of the People’s Republic of China

GOVERNMENT ACCREDITATIONS

* Department of Tourism

* Department of Foreign Affairs

* Bureau of Immigration

* National Statistics Office 

Awards 

Rajah Travel Corporation’s achievements have been recognized through its existence and have received a host of 

Top Producer Awards from various airline and tourism organizations.

Some Top Producer Awards: 

Air France / KLM

Cathay Pacific

Cebu Pacific

Northwest Airlines

Philippine Airlines

Qantas Airways

Singapore Airlines

International Awards: 

Voted by readers of Travel Trade Gazette (TTG) and TTG MICE as Best Travel Agency - Philippines for the years 2005, 2006 & 2007

Voted by readers of Travel Weekly as Best Travel Agency - Philippines 2007 - First ever recipient of this award.

RAJAH TRAVEL
Service: International and domestic travel and tours,
ticketing (cruise and airplane), and travel document processing
Contact Numbers: 5238801-07
Address: G/F Glc Building A. Mabini Corner T.M. Kalaw Streets Manila

 2.  Travel Guru Inc 

       The Travel Guru Inc is a fully licensed travel agency located at the heart of business centre in Ortigas Pasig City, Manila, Philippines. Travel Guru Inc provides information and services for tourists to the 7,107 beautiful islands of the Philippines particularly Boracay, Bohol, Cebu, Davao and Palawan (Busuanga, Coron, El Nido and Puerto Princesa). Travel Guru Inc also provide international travel services offer all hotels, car rentals, package tours and air tickets to all destinations worldwide like Alaska, Australia, Brunei, Cambodia, Canada, China, Europe, Hong Kong, India, Indonesia, Japan, Latin America, Macau, Malaysia, Middle East, North America, Russia, Singapore, South America, South Korea, Thailand, United Kingdom and Vietnam. 

       Established in April 2005 under “TRAVEL GURU VENTURES”, the company initially catered to various contacts’ personal travels both leisure and business. The Travel Guru Inc is equipped with Global Distribution System (GDS) called Amadeus used for reservations of all airline flights/hotels/car rentals. Allows the agency to promptly reply for the availability of flight/car/hotel.

SERVICES OFFERED

CAR RENTAL

DOMESTIC & INTERNATIONAL TICKETS

Offer cheap domestic and international air tickets to all destinations worldwide either one-way or roundtrip travel. Take advantage of big discounts by planning vacation ahead. Ticket cost varies on travel dates and length of stay in the destination.

HOTEL ACCOMMODATION

The Travel Guru Inc is equipped with Amadeus, a Global Distribution System (GDS) which enables to book over 80,000 hotels worldwide.

TOUR PACKAGES

Promotional and year round tour packages for domestic Philippines and worldwide destinations include roundtrip ticket from Manila, roundtrip airport transfers, accommodation at various hotels and daily breakfast. Most packages include city tours. Package tours originating from other destination apart from Manila. Services can be included and deducted according to client requirements.  Cruises, pilgrimage and specialized tours are also offered.

TRAVEL INSURANCE

Company offers affordable, worldwide-accepted and Schengen-accredited travel and medical insurance that will keep you covered during your trip. Choose from a wide range of Peso, Dollar and Euro Plans. 

VISA ASSISTANCE

The Travel Guru Inc offers tourist visa assistance to the following destinations:
 Australia
 Canada
 Korea
Spain

 3.    FUNTASTIC TRAVEL AND TOURS INC.

       Incorporated in 2003 with the main office in Cebu City, Funtastic Travel & Tours is a company owned by the Management. Their expertise which stem up from long years of experience in the industry enable them to have total involvement in all facets of our preparation / delivery and travel arrangements which mean the best rates , current up-to-date itineraries, quick responses o request and fast communication flow.

SERVICES
Work experience has given the expertise to handle:
· Individual and Group Travel for holidays and
business
· Incentive Travel for both Inbound and Outbound
destinations
· Conferences and Meetings in the Philippines, most
particularly Cebu and its environs
· Special Interest Packages for the more
sophisticated and demanding clientele
· Ticketing and worldwide Hotel Reservations
· Transportation Rental
· Pass porting
· Visa Processing : students, migrants , fiancé
(contract) 

Tel # +63.32.254-9682 | +63.32.254-9682 | +63.32.412-5565 (TF)
Room 222 Raintree Mall, General Maxilom Avenue Cebu City Cebu 

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[blue horizon] strama paper (con.)

Competitive Profile Matrix (CPM) Analysis

       It shows that Blue Horizons has a strong competitive position although that the Rajah Travel Corp. Got the highest weighted score. The 3.40 weighted score of Blue Horizons mean that the company is doing well in the industry though it needs a lot of development and improvements to be on top of competitors.

External Factor Evaluation (EFE) Matrix Analysis

       Blue Horizon is performing above average in their external environment. The company is responding for the outstanding way to the existing opportunities and threats need to be addressed more aggressively in such as decreasing operating costs, increase competition especially in international market, provide and develop superior customer service to resort for survival in political interference, terrorism and fluctuations of tourism industry.

   Terrorism results a fluctuation of tourism industry as well as price hike that can cost high operating expenses. This is the largest threat in the company of Blue Horizons.

Internal Factor Evaluation(IFE) Matrix Analysis

       Blue Horizon score ban above average of 3.29 on the IFE Matrix which means that the company was able to provide quality services to its customers while working on some of its weaknesses to turn it into strength.

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[blue horizon] strama paper (con.)

V. OBJECTIVES

 By performance measures support in top management decision-making (managerial aspect) together with the middle management in providing useful information on how efficient and effective are the company’s process and performance of people within the organization towards to their objectives and goal. If the company satisfies the customer needs and desire, if the implemented strategies generate more income, if the product and services improvements are necessary for the market growth and increase in market share. All potentials outcome as a result of the strategies implemented should be monitor and evaluate to make some necessary adjustment, revision and improvements are needed. 

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[BLUE HORIZON] STRAMA PAPER (Con.)

TOWS Analysis

Strength- Blue Horizon has a quality services as well as travel tour packages, competitive prices especially in corporate clients and having technological advancement.

Weaknesses- High operating cost is the major weakness of the company.

 Opportunities- Fast growing power of internet as communication tools to the customers, large international network and world class natural attractions are the opportunities of Blue Horizons to achieve market growth and generates more market shares.

 Threats- Terrorism, price hike, political interference and economic downfall are the threats that Blue Horizon facing and need to cope-up.

Recommended Strategies

       To increase more market share and achieve growth in the market, market penetration and product development strategies may acquire. It includes the advertising expenditures, increasing the publicity effort and offering extensive travel and tour promotion packages. Product development usually entails large research and expenditures development. In tourism industry, the companies always seek for product/services development because it is competitive advantage over the rival firm.

SO Strategies

   Strength and opportunities is edge of company to increase the market share and market growth.

       a. Develop superior customer service- superior customer service pays great dividends to an organization’s long-term stability and growth. It obtains customer’s satisfaction, happy customer become repeat customer means that competent, well-trained travel agents and staff are needed to handle customer transactions. It also creates loyalty and lessens the cost needed to attract new customers.

       b. Launching new events to increase recognition to the company, it creates more public sound about the company, publicity and awakens tourist’s awareness and brand-recognition.

       c. Tie ups with Department of tourism- government can help the industry to develop more product line and provide better infrastructures’ for services in tourists.

WO Strategies

       Lower the operating cost- company may outsource for the materials and supplies of the company to the other country wherein the price is far cheaper.

ST Strategies

       a. Intensifying the marketing strategies program and promos- the company may offer package travel and tour discounts and promos to attract more tourists.

       b. Develop marketing campaigns for the company it gives good reputation to the company.

WT Strategies

       Develop more flexible new product/services that would accommodate the needs and desire of tourists.

SPACE Matrix Analysis

  In Strategic Position and Action Evaluation (SPACE) Matrix of Blue Horizon shows that the company in the market is aggressive, it means that Blue Horizon has to use internal strength to develop market penetration and product development strategies.

      In product development the company may use the market-product focus wherein the company may offer packages in travel and tour which is competitively reasonable at price, affordable packages for long weekends, and annual vacation in the domestic market, convenient and well organized package tour, multiple destination maybe offers, affordable package offering a range of activities like shopping and dining.

BCG Matrix Analysis

  BCG Matrix shows that Blue Horizon generates large amount of cash in customized/specialized tours, worldwide corporate clients, competitive prices, technological advancement and rates/rebates/airlines incentives. The company has a strong relative market shares and high growth rate (STAR). However the company of Blue Horizon was matured in the industry considered that some of offered product/services (airlines reservation, international tours, local tour and travel and airlines ticket) are CASH COW, exhibit a return on assets that is greater than the market growth rate and thus Blue Horizon generates more cash than they consume. Strategy analysis resulted to product development and market penetration.

Internal-External Matrix Analysis

       The average computation of the IFE and EFE matrix, the result shows EFE= 3.74 and IFE= 3.29 is above average and highly respective. The strategies use are product development and market penetration.

GSM Analysis

       Based from the average computation of the Industry Strength (IS) and Competitive Advantage (CA) 4.50 and -1 which are rapid growth and strong competitive position. The strategies should be uses are market development and market penetration.

Table of Strategies from Matching Stage

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[BLUE HORIZON] VII. Recommendation

VII. Recommendation

A. Primary Strategy (Market Penetration)

       The tragedy happened in Hong Kong tourists in the Philippine affects the tourism industry, this tragedy put down the reputation of the country as well as the travel agencies suffered losses and down fall of industry growth. To recover and maintain the competitive advantages especially in international market, we recommend that the Blue Horizons Travel & Tours, Inc will have a marketing penetration it includes media campaign internationally and locally, use the power of internet to promote the opportunities of the country of having world class natural attractions and destination, advertisement also may do some tourist’s awareness regarding the company’s product/services offered. Launching of new events that would recognize and create sounds to the publicity of the company.

B. Product Development

       We recommend that the Blue Horizons Travel & Tours, Inc will use the strategy in product development. It helps the company to provide wide and flexible product/services. Product development includes the market-product focus wherein the company offers the competitive travel and tour packages for tourists, training centers for tourism industry travel agents and staff should be established in order to upgrade service standards and achieve superior customer service, it may help the company to gain tourist’s satisfaction and customer loyalty. Develop well-organized package tours based on convenient flights to specific cluster areas offering sightseeing, shopping for native branded goods, eating out, and a good range of accommodation, varied accommodation, and also varied choices of convenient sun and fun activities and convenient and well organized adventure activities at natural sites, affordable packages for long weekends and annual vacations in the domestic market, offer multiple destinations and world-class convention and exhibit facilities together with competitively priced flights and hotel accommodations.

Major destinations: comprising Cebu/Bohol/Camiguin, Palawan, Manila plus Tagaytay, and Davao as potential major destinations;

“Minor destinations: Vigan/Laoag and Clark/Subic; and

“Special interest destinations: Baguio/Banaue, and Boracay 

External Recommendation 

External threats are the interface problems of the company especially when it comes to terrorist attack. In regards to the Hong Kong tragedy in order that the company as well as tourism industry regain the trust of international market (tourists) to travel here in the country, the company may implement the product development and market penetration as strategies it is because the company is to limited especially when it comes to terrorism attack, it is uncontrollable environment, the company may do some strategies to improve and provide  quality products and services while working for the high level of security and insuring the protection of  tourists, gradually if the tourists satisfied by the company’s performance  and the customer assured the security of them while here in the country for their travel and tour, it may regain the trust and confidence of international market. However emphasizing on superior customer relation, strong communication in the customers creates competitive advantage as customer loyalty.

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Strama Paper
STRAMA PAPERS-TOTI DULAY

2.1 SOCIAL FORCES

Tourism in the Philippines has big impacts on social development however it was too broad and deep. It can affect the labor and capital intensive, it promotes skills and vocational development that can be exported and it promotes a “culture of tourism” through a safer and cleaner environment that benefits not only tourists but also the entire community. Philippine Tourism promotes and creates strong peripheral benefits to other economic sectors and society as a whole through tourism infrastructure spending, catalyzing entrepreneurship and improving the image of the country in international trade and investment. In the Philippines there’s a lot of social movements to support the tourism industry, however it may or may not efficient and effective for the industry’s operation. 

A. Social- consumer behavior

Lean Season

June 15-October 15 

Peak Season

Christmas Season (December 20-January 6)

Holy Week and Chinese New Year

Regular Season

January 6-June 14, October 16-December 19, except during peak season dates 

       The holiday season is one of the traveling peak seasons all over the world especially in the Philippines, many Filipinos book their tickets and tour package in travel agency to go back in their hometowns, in the same way to the foreigner to enjoy their leisure days and also in domestic travels. Moreover during summer season many foreigners go to Manila, Boracay, Cebu, Palawan and many hot spots places in the Philippines to enjoy their vacation. Some tourist book their tickets ahead of time to get savings and discounts in their package tour because travel agency as well as airlines give discount prices if tourist book their travel tickets and tour package ahead of time, about 1-3 months before your travel. 

       In the year 2009 the Philippine tourism never had it so good. According to the year-end report of Department of Tourism (DOT), stated that the total tourist traffic in the top 14 destination last year reached 8.9 million for a 14% growth. About 1.2% increase of tourist traffic in the Cebu which is the top destination of Korean. In the year 2010 tourism industry suffered huge loss with Hong Kong and China accounting 9% tourist arrival for about P40 million ($ 890,000) in two weeks time of Hong Kong tragedy. The average tourist stay in the Philippine was 27 nights in the year 2010.

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2.2 Cultural Forces

Culture of Philippines exhibits a strange amalgamation of religions, various settlements and countries. The Philippines located in the Malay Archipelago, consists of 7,107 islands. While most of the Filipinos are of Austronesia origin, some have Spanish, Chinese, American, and Arab lineage. Thus Filipino culture shows a fusion of native traditions of the Philippines blended with Spanish and American customs, as well as Chinese, Indonesian and Indian specialties. You will also notice Hispanic influences in Filipino culture, which shows prominence in many of the religious festivals and even in naming of streets, towns and provinces as well as in cuisine. As you explore the Filipino dishes like noodles, you will notice the Chinese influence. Interestingly enough, English language is commonly used in Philippines and shows trends of American influence in the spoken style, basketball, fast-food joints, sprouting interest in American music and movies. Friendship, bondage in families, nationalism and commitment are greatly appreciated in Culture of Philippines.

Filipinos has a lot of festival, which the people considered as part of their culture habits which can attract foreign tourists. Tourists visited the country believe and proved that Filipino culture was unique and world class. This is the competitive advantage of Philippine tourism industry all over the world.

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2.3 Environmental Forces

       Over a hundred ethnic groups, a mixture of foreign influences and a fusion of culture and arts have enhanced the uniqueness of the Filipino and wonder. Philippine has abundant in nature, rich in culture, and filled with pleasant discoveries. The Philippines has three main islands - Luzon in the north, Visayas; a cluster of smaller islands in the middle, and Mindanao down south; the largest island. The Philippines enjoys a diversity of destinations, activities, and events which every explorer experiences in this archipelago of wonders. Vast mountains and volcanoes tell of great legends. Old cities share stories of the past, caves excite. Shimmering waters and a tropical climate lure travellers all year round.

       Considered the third-largest English-speaking country in the world, the Philippines offers world-class facilities and services - excellent accommodations, fine restaurants, modern shopping centre and communication services, efficient congress and exhibition organizers and professional tour operators. Whatever activity that tourists intend to do in their vacation, from Diving to Wellness, Golf to City Life, Cultural and Heritage to Adventure and Adrenaline Rushes. 

Tourism industry together with many corporations promotes green and environmental friendly movements, wherein giving environmental care for the sustainability of environment for today’s and future generations. Also many social movements were practices to save the earth from being destroyed as well as being concern in climate change. Department of Tourism (DOT) is trying to improve the quality of tourism industry in the country were the environment is not being suffered.

Blue Horizons Travel is part of promoting the environmental movement wherein the Blue Horizons Travel Mountaineering Club, Inc (BHTAMC) is an organization of BHTA and non-BHTA employees who share a common love for the outdoors and special concern for the environment.

Since its founding in 1979, BHTMC has conducted numerous climbs, both local and international. It has participated in search and rescue operations as well as environmental projects such as rehabilitation and preservation of mountains and forests. It has launched various medical and dental missions, established safe trails, and hosted summer camps, among other things.

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2.4 Demographic Forces

Philippines Demographics Profile 2010 Population 99,900,177 (July 2010 est.) Age structure 0-14 years: 35.2% (male 17,606,352/female 16,911,376) 15-64 years: 60.6% (male 29,679,327/female 29,737,919) 65 years and over: 4.1% (male 1,744,248/female 2,297,381) (2010 est.) Median age Total: 22.7 years male: 22.2 years female: 23.2 years (2010 est.) Population growth rate 1.931% (2010 est.) Birth rate 25.68 births/1,000 population (2010 est.) Death rate 5.06 deaths/1,000 population (July 2010 est.) Net migration rate -1.31 migrant(s)/1,000 population (2010 est.) Urbanization Urban population: 65% of total population (2008) rate of urbanization: 3% annual rate of change (2005-10 est.) Sex ratio At birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1 male(s)/female 65 years and over: 0.76 male(s)/female total population: 1 male(s)/female (2010 est.) Infant mortality rate Total: 19.94 deaths/1,000 live births male: 22.49 deaths/1,000 live births female: 17.26 deaths/1,000 live births (2010 est.) Life expectancy at birth Total population: 71.38 years male: 68.45 years female: 74.45 years (2010 est.) Total fertility rate 3.23 children born/woman (2010 est.) HIV/AIDS - adult prevalence rate Less than 0.1% (2003 est.) HIV/AIDS - people living with HIV/AIDS 8,300 (2007 est.) HIV/AIDS - deaths Fewer than 200 (2007 est.) Major infectious diseases Degree of risk: high food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever vector borne diseases: dengue fever, malaria, and Japanese encephalitis water contact disease: leptospirosis (2009) Nationality Noun: Filipino(s) Adjective: Philippine Ethnic groups Tagalog 28.1%, Cebuano 13.1%, Ilocano 9%, Bisaya/Binisaya 7.6%, Hiligaynon Ilonggo 7.5%, Bikol 6%, Waray 3.4%, other 25.3% (2000 census) Religions Roman Catholic 80.9%, Muslim 5%, Evangelical 2.8%, Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian 4.5%, other 1.8%, unspecified 0.6%, none 0.1% (2000 census) Languages Filipino (official; based on Tagalog) and English (official); eight major dialects - Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan Literacy Definition: age 15 and over can read and write Total population: 92.6% male: 92.5% female: 92.7% (2000 census) School life expectancy (primary to tertiary education) Total: 12 years male: 12 years female: 12 years (2008) Education expenditures 2.6% of GDP (2007)

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[blue horizon] strama paper (con.)

3.2 Governmental and Political Forces

Political Stability

One factor that may bring growth in tourism industry is having political stability. Good political reputation as well as good governance in one’s country signifize the peace order and develop the trust of tourists for their security. However the instability in political and governance is a big threat to the industry.

       The Hong Kong tragedy on August 23, 2010 brings the big threat in the industry as well as a reputation of the Philippine all over the world. Anger, disbelief and grief are the mood in Hong Kong following the hostage drama in the Philippines. The 12-hour hostage drama aboard a tourist bus in Manila ended in bloodshed with at least seven Hong Kong tourists dead along with the disgruntled ex-policeman who hijacked the vehicle and demanded his job back. The crisis began when the dismissed policeman, 55-year-old Rolando Mendoza, armed with a M16 rifle, seized the busload of tourists to demand his reinstatement in the force. According to newspaper reports from 2008, he was among five officers who had been charged with robbery, extortion and grave threats after a Manila hotel chef filed a complaint alleging the policemen falsely accused him of using drugs to extort money. This tragedy results the fluctuation of tourism industry as well as disappointment of China, Hong Kong and other countries in Filipino’s government to handle crisis situation, mishandled and unprepared policemen.

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3.1 Legal Forces

 Blue Horizon Travel Agency is a fully licensed and legally registered travel agency. By Philippines’ Law, the following requirements must be met to legally operate a Philippines travel agency:

1. DTI - “Department of Trade and Industry” Certificate of Business Name Registration.

2. SEC Registration “Philippines Securities & Exchange Commission” - Certificate of Incorporation.

3. Corporate Bank Account- Name Must Match that of the Business Permit.

 4. BIR “Bureau of Internal Revenue “Registration.

5. Business Permit / Mayor’s Permit.

6. License to Operate a Travel Agency - “The Cultural Affairs and Tourism Office”. 7. SSS Registration / Phil health Registration / Pag-ibig Registration.

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Tax Regulation

The travel tax is a levy imposed by the Philippine government on the following individuals who are leaving the country irrespective of the place where the air ticket is issued and the form or place of payment, as provided for by Presidential Decree (PD) 1183, as amended:

A. Citizens of the Philippines;

B. Permanent resident aliens whose immigration status maybe any of the following:

Sec. 13 

-Quota or Preference Immigrant Visa 

Sec. 13 A 

-Visa issued to an Alien Spouse of Philippine Citizen 

Sec. 13 B 

-Child born outside the Philippines by a 13A Mother 

Sec. 13 C 

-Child born in the Philippines by a 13A Mother

Sec. 13 D

-Loss of Citizenship by a Filipino Woman by her Marriage to an Alien

Sec. 13 E

-Returning Resident

Sec. 13 G

-Former Natural-born Citizen of the Philippines who was Naturalized by a Foreign Country

TRV

-Temporary Residence Visa

RA 7919

-Alien Social Integration Act of 1995

RC /RFC

-Recognition as Filipino Citizen

RA 7837

-Permanent Resident

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C. Non-resident aliens who have stayed in the Philippines for more than one (1) year.

NOTE:  Non-immigrant aliens who have not stayed in the Philippines for more than a year are not covered by the travel tax. However, PTA F356 need to be prepared by the ticketing officer for passengers with the following immigration status except for FGO & their dependents (Sec. 9E) who have stayed for more than a year, they have to secure Travel Tax Exemption Certificate.

EO 408 / E0

-Tourist without visa

EO 21

-Stay valid for 21 days

11 Days

-Stay valid for 11 days

7 Days

-Stay valid for 7 days

BB

-Balikbayan

Sec. 9A

-Temporary Visitor coming for business or for pleasure or for reasons of health

Sec. 9B

-Transit Passengers

Sec. 9C

-Foreign Seamen

Sec. 9D

-Treaty Trader / Investor

Sec. 9E

-Foreign Government Officials

Sec. 9F

-Foreign Students

Sec. 9G

-Pre-arranged Employee

47 A2/PEZA

-Special Non-immigrant Visa

47B

-Refugees

PD 1034

-Executives of Multinational Companies

EO 63 / EO 226 / RA 8756

 -Omnibus Investment Act of 1987

SIRV

  - Special Investor Resident Visa

RA 7227

  -Bases Conversion and Development Act of 1992

SSIV

   - Subic Special Investor’s Visa

SSRV

   - Subic Special Retiree Visa

 SSRV

   - Subic Special Retiree Visa

 SSWV

   - Subic Special Working Visa

 SCWV

   - Special Clark Working Visa

EO 1037 / SRRV

   -Special Resident Retiree Visa

EO 191

-Granting No-Visa Entry for Initial Stay of 7 Days for Chinese Nationals who are holders of Macao - Portuguese Passport

LOI 911 / LOI

-Granting No-Visa Entry for Initial Stay of 7 Days for holders of HK-British-HK-SAR Passport

As mandated by the law, the taxes are divided among the Philippine Tourism Authority (PTA), the National Parks Development Committee (NPDC), the National Commission for Culture and the Arts (NCCA), Commission for Higher Education (CHED), and the General Fund of the National Government for use in government programs.

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How do you avail of a Travel Tax exemption/reduced rate?

A. If ticket was issued outside the Philippines:

Secure original documents specified for either exemption or reduced rate

Make one copy of each

Proceed to the nearest PTA Travel Tax Office, and:

·         Show original documents for authentication of photocopies;

Note: Original of some documents have to be submitted.

·         Submit copies;

·         Pay tax and/or processing fee; and

·         Wait for release of certificate and official receipt (O.R.)

Present the certificate of Travel Tax Exemption/official receipt to the PTA personnel at the airport upon demand

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B. If ticket will be issued in the Philippines:

Secure original documents specified for either exemption or reduced rate

Make one copy of each

Proceed to the nearest PTA Travel Office, and:

·         Show original documents for authentication of photocopies;

Note: Original of some documents have to be submitted

·         Submit copies;

·         Pay processing fee; and

·         Wait for release of certificate and official receipt (O.R.)

Submit the Travel Tax Exemption/Reduced Travel Tax Certificate to the airline 
    ticketing/travel agency office for the issuance of air ticket.

How do you pay the full Travel Tax?

For those with tickets issued outside of the Philippines, payment is direct to the PTA Travel Tax Office

For those whose tickets will be issued in the Philippines, payment is through the airline/travel agency.

IMPORTANT REMINDERS

Travel Tax Exemption/Reduced Travel Tax Certificates can only be issued by the PTA Travel Tax Office

Air tickets which will be issued in the Philippines will only be released upon payment of the Travel Tax or submission of the Travel Tax Exemption / Reduced Travel Tax Certificates to the ticketing office.

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Strama Paper
STRAMA PAPERS-TOTI DULAY BLUE HORIZONS STRAMA PAPER—- GROUP 4

I. EXECUTIVE SUMMARY 

       The Blue Horizons Travel & Tours, Inc. is an internationally owned and managed travel and tours organization established in 1981. Blue Horizons Travel & Tours, Inc. has two (2) operating divisions; theInbound Division is the ground handler in the Philippines for some of the biggest tour wholesalers in Europe, the Middle East and Asia. Its services cover sightseeing, packaged tours and roundtrips, domestic air reservations and ticketing, car and coach rentals, multi-lingual tour guides, study tours, congress and conventions and “Inspired Incentives”, a collection of incentive travel programs and events specially designed for corporate winners and top producers while the Outbound Division, which is IATA (International Air Transport Association) accredited, provides comprehensive international travel service to corporate and institutional clients. This comprehensive travel service includes a computerized reservation system, automated ticketing, travel management, itinerary planning, documentation and ground arrangements worldwide for leisure or business travelers. Blue Horizons also owns and manages its own tourist transportation equipment.

       It is apparent that Philippine is facing many problems in the development of its tourism industry. Blue Horizon together of many companies is facing major problems about several crucial issues that government needs to look into immediately to regain the tourist’s trust in the industry.

       We have identified three (3) major competitors of Blue Horizons Travel & Tours, Inc. which are Rajah Travel Corporation , Travel Guru Inc and

       Our recommended strategies for Blue Horizons Travel & Tours, Inc. are market penetration as primary strategy and product development as secondary. Market penetration includes externally, strategic marketing planning and promotion activities are required to improve the company’s public image and expand its international market share, launching new events to increase recognition to the company, and it creates more public sound about the company, publicity and awakens tourist’s awareness and brand-recognition, advertising expenditures, increasing the publicity effort. This strategy helps the company to recognize internationally and locally.

       Product development includes market-product focus wherein the company may offer packages in travel and tour which is competitively reasonable at price, affordable packages for long weekends, annual vacation in the domestic market, convenient and well organized package tour, multiple destination maybe offers, affordable package offering a range of activities like shopping and dining. Superior customer service because it also creates loyalty and lessen the cost needed to attract new customers and  tie ups with Department of Tourism, government can help the industry to develop more product line and provide better infrastructures for services in tourists.

       The Blue Horizons Travel & Tours, Inc. must know the strength and weaknesses of its company to improve and maintain competitive advantages. Based on the result of Competitive Profile Matrix (CPM), Blue Horizons Travel & Tours, Inc. fall behind the Rajah Travel Corporation n and this is due because of lack of advertisement.

       According to the SPACE Matrix that the Blue Horizons Travel & Tours, Inc. strong company that has achieved competitive advantages. Develop market penetration and product developments are strategies that suited for the company.

       Base on the Internal-External Matrix of Blue Horizons Travel & Tours, Inc. that the company should maintain competitive strengths as well as use the opportunities to resort for survival in threats of the industry. Quadrant I means that the company has a strong and high competitive advantages.

       The Boston Consulting Group (BCG) Matrix, the Blue Horizons Travel & Tours, Inc. is in position of “star” because the company remains stable with the market growth and high in market share.

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II. COMPANY PROFILE

A. Vision and Mission Statement

The mission of Blue Horizons Travel & Tours, Inc. is to be the leading travel and related services company of choice, providing premier services and innovative options to all customers. We will accomplish this by: ·         Ensuring that we have the best qualified and trained professional staff ·         Expanding market strength through superior service levels ·         Developing business opportunities through unique travel services that meet all business and leisure travel needs ·         Maintaining flexibility to adapt to local and international market trends ·         Establishing our team as the optimum service provider ·         Operating continuously in compliance with applicable industry principles and standards  

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B. Company History

       Blue Horizons Travel & Tours, Inc. is an internationally owned and managed travel and tours organization established in 1981.

Over the years, Blue Horizons Travel & Tours, Inc. has earned a reputation for competence and reliability. Highly trained and motivated team of 90 staff ensures that their clients receive the highest standard of service possible – whether for outbound travel or inbound tours.

Blue Horizons Travel & Tours, Inc. has two (2) operating divisions:

The Inbound Division is the ground handler in the Philippines for some of the biggest tour wholesalers in Europe, the Middle East and Asia. Its services cover sightseeing, packaged tours and roundtrips, domestic air reservations and ticketing, car and coach rentals, multi-lingual tour guides, study tours, congress and conventions and “Inspired Incentives”, a collection of incentive travel programs and events specially designed for corporate winners and top producers.

The Outbound Division, which is IATA (International Air Transport Association) accredited, provides comprehensive international travel service to corporate and institutional clients. This comprehensive travel service includes a computerized reservation system, automated ticketing, travel management, itinerary planning, documentation and ground arrangements worldwide for leisure or business travelers. Blue Horizons also owns and manages its own tourist transportation equipment.

Services & Solutions 

The services of Blue Horizons are divided into two divisions: Outbound Division, and Inbound Division. The services offered by these divisions include the following:

Itinerary Planning & Consultation

Experience with Travel Counsellors which can provide an advice to the travellers’ on the best route to their destination, at the most cost-effective rate. They can also provide alternative routes for those who wish to explore other avenues and design itineraries that allow additional cities to be visited – where possible, at no extra cost.

Airline Reservations 

 Blue Horizons use the advanced Abacus Space system for their airline reservations. Using this system, highly trained and experienced outbound agents are able to make fast, cost-effective reservations for their clients.

Airline Tickets

 Blue Horizons offers itinerary planning, routing and carrier suggestions, lay over (transit time), recommendations, reservations, reconfirmation (and/or amendments), ticketing, passenger briefing (if required), check-in service of an airport coordinator for groups upon departure and facilitation upon arrival.

Rates/Rebates/Airline Incentive 

In the event that other company has contracted rates with any airline which is lower than Blue Horizons Travel & Tours are offering, such favourable rate shall be applied.

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Employee Incentive Travel Arrangements Blue Horizons provide conceptualization of the overall theme for the tour program, itinerary planning, conceptualization and delivery of themed events, recommendation and sourcing of pillow gifts/giveaways, hotel/transport reservations and ticketing. International Tours Blue Horizons provide clients with a wide variety of options in international tours, including tour packages to Europe, North America, Asia, and the rest of the world. Local Tours & Travel Blue Horizons highly skilled Inbound Division handles all kinds of travel requirements to any destination in the Philippines. This includes domestic flights, package tours, hotel reservations, and more. Customized/Specialized Tours For Blue Horizons corporate clients, they can plan business conferences, conventions and meetings. These can be designed to meet specified budgets and frameworks. International/Local Hotel Reservations Through international partner of Blue Horizons which is FCm Travel Solutions, they are able to offer outstanding negotiated rates for hotels around the world. For both individual and group travel, a service includes assistance in selection of suitable hotels overseas, reservation/confirmation (and/or protection booking in alternative hotels) pre payment facilities and message relay service when travel is in progress. International/Local Car Rental Reservations Transportation and sightseeing requirements at the destinations can likewise be arranged prior to departure. To a limited extent, and in selected countries only, rail, steamer, and boat reservation can be processed as well. Airport Assistance Blue Horizons can provide VIP airport assistance for people arriving at Ninoy Aquino International Airport (NAIA), to ensure smooth and hassle-free arrival in Manila. Ground Transportation Services Blue Horizons operates its own fleet of vehicles which can be used for transfers to/from the International and Domestic Airports, client’s hotels, offices or residences. Insurance Documentation department in Blue Horizons can provide travel and baggage insurance upon request, at preferred rates which are negotiated with suppliers. Travel Information Programs Blue Horizons offers programs designed to enhance client awareness of travel procedures as well as available products and services. They conduct seminars on reservations & ticketing, including a detailed overview of airline operations. They also produce a personalized newsletter containing information about travel procedures, breaking news and more. Visas & Other Documentation Processing Includes a competent review of required support documents in the application and renewal of passports, filing and releasing; visa application, processing and releasing; immigration clearances – entry, exit permits, etc.

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Blue Horizons has the following trade affiliations: 

·         International Air Transport Association (IATA)

·         Pacific Asia Travel Association (PATA)

·         Philippine Conventions & Visitors Corporation (PCVC)

·         Philippine Travel Agencies Association (PTAA)

·         Philippine Tour Operators Association (PHILTOA)

·         Philippine IATA Agents Travel Association (PIATA)

·         Movement of Incentive Travel Executives (MITE)

·         British Chamber of Commerce of the Philippines

·         Australia & New Zealand Chamber of Commerce

·         Makati Tourism Foundation

·         Cebu Association of Tour Operators (CATO)

·         Cebu Travel Agencies Association (CTAA)

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Blue Horizons Travel & Tours, Inc. Branches 

MANILA

Blue Horizons Travel and Tours, Inc.
20th Floor, Trafalgar Plaza,
H.V. Dela Costa Street,
Salcedo Village,
Makati City

Tel: + (63-2) 988-5000
Fax: + (63-2) 988-5001 and 848-3909
Email: info@bluehorizons.travel 

CEBU

Blue Horizons Travel and Tours, Inc.
G/F, Zeraus Building,
Gorordo Avenue,
(Beside Equitable PCI Bank)
Cebu City 6000

Tel: + (63-32) 232-8886
Fax: + (63-32) 232-8890
Email: cebu@bluehorizons.travel 

BORACAY

Blue Horizons Travel and Tours, Inc.
46-D, D-Mall de Boracay,
Balabag, Boracay Island,
5608 Malay, Aklan

Tel: + (63-36) 288-4901
Fax: + (63-36) 288-4030
Email: boracay@bluehorizons.travel 

BOHOL

Bohol Travel and Tours, Inc.
Ideal Cinema Bldg.,
Tagbilaran City,
Bohol

Tel: + (63-38) 411-2984
Fax: +(63-38) 411-3840
Email: bohol@bluehorizons.travel 

KALIBO (Partner Office)

Vacanze International, Inc
71-B Castillo Bldg.,
P. Burgos Street,
Kalibo, Aklan

Tel: + (63-36) 268-4098
Fax: + (63-36) 262-5215

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Blue Horizons Travel & Tours, Inc. Clients

Inbound (Travel Agency) Clients

Blue Horizons Travel & Tours, Inc. is theground handler in the Philippines for some of the biggest tour wholesalers and airlines in Europe, the Middle East and Asia. They are also the DMC for many of the top “Dot Com” companies around the world.

For reasons of confidentiality (because they are a behind-the-scenes partner) they cannot disclose the names of our B2B clients.

Corporate Clients

Corporate clients include some of the most well known names in global business, from a wide range of industries.

·         ADP Pharma

·         Agility Logistics

·         Airspan Communications

·         ALCON Industries

·         Associated Press

·         Avon Products, Inc.

·         Cadburys

·         Canadian Embassy

·         Cereal Partners

·         CTSI Logistics

·         Cyber-dynamics International

·         Dabur Pharma

·         Duncan Philippines

·         Edward Keller (DKSH)

·         Embassy of Finland

·         Foreign Exchange Association of the Philippines

·         Glaxo Smith Kline

·         Golden Arches Development Corp. (McDonalds)

·         Goodyear Philippines

·         Hewlett Packard

·         Hexal Philippines

·         International School, Manila

·         IST

·         Kumon Philippines

·         Luen Thai

·         Mandarin Oriental

·         Money Market Association of the Philippines

·         Natrapharm

·         Nestle Philippines

·         Nivea Philippines

·         Otsuka Pharmaceutical Company

·         Paperless Trail

·         Philippine House of Representatives

·         Philippine League Against Epilepsy

·         Philippine Neurological Society

·         Republic Cement

·         Schenker Philippines

·         Schering Plough Corp.

·         Sinclair James

·         SITA

·         Software Factory

·         Stroke Society of the Philippines

·         Tate & Lyle

·         The Walt Disney Company

·         UCB Pharma

·         Wartsila Philippines, Inc.

·         Worldwide Fund for Nature

·         Zuellig Pharma

Awards

Blue Horizons Travel & Tours, Inc. is proud of their industry awards, because they reflect the dedication and excellence of their people. Some of the more notable ones include:

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Hotels and Resorts

·         Top Producers Award, Discovery Shores (2008)

·         Top Ten Producers Award, El Nido Resorts (2008)

·         Ten Year Plaque of Appreciation, Le Soleil de Boracay (1998-2008)

·         Top Producer Award, Best Western Hotels (2008)

·         Top Producer Award, Bellevue Hotel (2008)

·         Top Producer Award, Boracay Regency Beach Resort (2007)

·         Top Producer Award, Patio Pacific (2007)

·         Top Producer Award, Bayview Park Hotel (2007)

·         Top Producer Award, Waling Waling Beach Hotel (2007)

·         Top Producer Award, ASB Condotels (2007)

·         Top Producer Award, Oxford Suites (2007)

·         Top Producers Award, Club Paradise (2007)

·         Top European Agent Award, Fridays Resort Boracay (2007)

·         Top Ten Producers Award, Ridgewood Residences (2007)

·         Valued Client Award, Pearl Farm Beach Resort (2007)

·         Top Producer Award, Holiday Inn Galleria (2006)

·         Top Ten Producers Award, Makati Shangri-la (2006)

·         Top Ten Producers Award, Millenium Plaza (2006)

Airlines

• Bronze Award, Philippine Airlines (2006) • Top Producer Award, South East Asian Airlines (2006) • Top Producer Award, Northwest Airlines (2005) • Top Agents Award, KLM Airlines (2005)

 Government and Travel Trade

• Best Travel Agent in the Philippines – Travel Trade Gazette (2009) • Best Travel Agent in the Philippines – Travel Trade Gazette (2008) • Best Travel Agent in the Philippines – Travel Trade Gazette (2004) • Kalakbay Hall of Fame (1999) • National Tourism Award, Kalakbay (1999) • National Tourism Award, Kalakbay (1996) • National Tourism Award, Kalakbay (1995) • National Tourism Award, Kalakbay (1989)

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III. EXTERNAL AUDIT

A. KEY EXTERNAL FACTOR

1.0 ECONOMIC FORCES

Current Economic Conditions in the Philippines

INBOUND

        In the year 2009, Department of Tourism (DOT) maximize the opportunities in the international markets and encourage domestic travel movement for the sustainability growth of tourism in the Philippines despite of global crisis and health threat of influenza A(H1N1), and year 2010 is a tough year in tourism industry in the country because of Hong Kong Tourists tragedy on August 23, 2010 were in seven Hong Kong tourists were killed and another eight injured, with two in serious conditions, in the abduction tragedy in the country. A 21-member Hong Kong tour group aboard a bus was hijacked by a dismissed Filipino policeman earlier in the day. The August 23 bloodbath outraged China and Hong Kong residents and prompted many prospective visitors to cancel their tour in the country. Wherein some tourists already in the country left abruptly before their tour was completed. The country suffered huge loss with Hong Kong and China accounting 9% tourist arrival in the Philippines according to the Department of Tourism (DOT). Philippine lost about P40 million ($ 890,000) in tourist income 2 weeks after the hijacking. Some government officials visited the Hong Kong and China and said that the tragedy happened was front-pages news there in radio, television and other media outlet. Philippines are again faced with a major tourism setback involving safety of foreign inbound tourists. Philippine government look forward for better condition of tourism industry in the country, said that this tragedy took only short-term effect in the tourism industry but not on overall economy of the Philippines. However the travel agencies said that the incident will deal a major blow to Philippine tourism after all tours to the country was immediately called off and some countries issued alert travel order (travel bans) like Hong Kong, Indonesia, Thailand, Nepal, Iran and Russia. The country also got condemnation from United States and China, say’s that it was tragic and disappointing. Moreover the Philippine government is optimistic that the hostage crisis would have little effect in country’s tourism industry and that foreign investors would understand that the incident is not reflective in the actual situation in the entire country. Though the Philippine government give relevant investigation and the Hong Kong government accepted it, the industry of tourism is still in challenge to recover and improve better travel in the country especially for the security of inbound foreign tourists, regain travel trust in the country.

OUTBOUND

       In previous years, three major problems had hindered outbound tourism from India and Pakistan to the Philippines: difficulties in securing visas, the high cost of international flights, and a lack of awareness among the travel trade and the general public.

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STRAMA GROUP IV (BLUE HORIZON TRAVEL AND TOURS INC. POLICY

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STRAMA GROUP IV (BLUE HORIZON TRAVEL AND TOURS INC. POLICY

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frontpageBLUE HORIZON TRAVEL & TOURS INC.

By:

M0531

Kalingo, Arnel Idris S.

Caguete, Andri Ferdinand R.

Galindez, Kenneth M.

Liu Linan

Lorenzo, Joanne V.

Pacheco, Darren Kenneth B.

Santos, John Rollid

Zhang Luxin

Zhang Peng

Zhang Zhe

2nd

this is my link to all my previous classmates in the Philippines and the world wide web

this is my first entry for my blog to be uploaded in strama.:)