International Journal of Social Science Research (IJSSR) eISSN: 2710-6276 [Vol. 4 No. 2: June 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijssr
THEORETICAL ANALYSIS AND SECTORAL INSIGHTS ON PHILIPPINES’ DIGITAL TRANSITION AS A SMART
DESTINATION
Kim Niño G. Cantero1*, Mikka Ella Mayol2, Kizza Len G. Rama3, Abigail Irah A. Cudias4 and Regine A. Furaque5
1 2 3 4 5 Tourism and Hospitality Management Department, School of Business and Management University of San Jose-Recoletos, Cebu City, PHILIPPINES
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 26 May 2022 Revised date : 19 June 2022 Accepted date : 20 June 2022 Published date : 30 June 2022 To cite this document:
Cantero, K. N. G., Mayol, M. E., Rama, K. L. G., Cudias, A. I. A., &
Furaque, R. A. (2022).
THEORETICAL ANALYSIS AND SECTORAL INSIGHTS ON PHILIPPINES’ DIGITAL TRANSITION AS A SMART
DESTINATION. International Journal of Social Science Research, 4(2), 183- 194.
Abstract: Smart destination analysis and development incorporates an interactive and collaborative management style to improve citizens' quality of life. A destination can attain it by leveraging information and communication technology and other digital platforms. However, smart development necessitates baseline data on the destination's current conditions and its level of smartness. The Philippines is in the works compared to neighboring countries, given the current situation, and lacks local literature for smart destination research. The study aims to understand smart destination development and present that knowledge with theoretical and statistical evidence.
Furthermore, by gathering insights from industry players across various sectors, this study aims to lay the groundwork for smart destination analysis and development in the Philippines. The study employs an evaluative-descriptive design and mixed-methods techniques, i.e., literature review and content analysis, survey method, and Likert scale. These enable the acquisition, characterization, and description of theoretical findings and data. Results reveal that various sectoral stakeholders identified health and safety as a top priority for smart development. It also demonstrated that the country's governance is generally good, and the smart initiatives shaping smart experiences are relevant. With this, the study implies that the ultimate goal of smart development is to improve the destination's resource management efficiency, competitiveness, and sustainability.
Keywords: Smart Destination Analysis, SMARTourism Philippines, Philippine Smart Tourism.
1. Introduction
Smart destinations are urban communities that use technology and the internet to boost economic growth, quality of life, resource efficiency, governance, and social participation processes. These cities envision commerce, financial, and commercial hubs of the future to challenge existing global networks through extensive productivity expansion. Globally, smart destinations are continually changing and evolving in different countries today. It leverages technology to improve efficiency, people's quality of life, and long-term growth. In addition, it deploys cutting-edge technology to serve the citizens and visitors better alike (Ho, 2020).
Spending on smart development will nearly double between 2018 and 2023, from 81 billion USD in 2018 to 189.5 Billion USD (Statista Research, 2022). Furthermore, between 2020 and 2025, earnings are predicted to nearly triple across Asia based on its contribution to smart technology, products, and services, approximately 42.96 billion US dollars in 2021. The figures encompass all the money companies generate by selling innovations and solutions that employ information and data technologies. It is part of the findings of Arne von See, an international research lead expert in technology & telecommunications (2021).
Like any other destination, smart development's ultimate purpose is to improve resource management efficiency, competitiveness, and sustainability. In 2021, the Philippines' transition to a smart destination was one of the strategic goals of DOT and TPB. The agencies aim at incorporating innovation and digitization into smart travel while assuring data-driven planning and expanding other promotional and marketing tools. However, a foundation smart destination development study is scarce, particularly in the Philippines. Given the current situation, the cities in the country are still improving, in contrast to the neighboring countries in Asia.
Subsequently, academic investigators continue to seek further data and analysis to aid in contributing literature on smart development. It is necessary to bridge the gap and assess a destination's condition regarding standards, implementations, preparation, and systems required to run smart programs aligned to pioneering smart destinations’ standards.
2. Literature Support: A Comparative Review
Learning from the neighbors: Asia’s Leading Smart Cities
China. China leads in smart destination projects, with five of its smart cities in Asia last 2021.
For example, in Hangzhou. It has an iFlytek-backed education service that provides smart educational tools and tablets to local high schools. Mobile payment systems let residents pay for groceries, regular transactions, and public services with Alipay. In addition, there are voice- recognition service robots and voice-activated filing systems. Next is Chongqing. The city's big data strategy sends the public 800 categories of data on market regulation, judicial information, taxation, and transportation. Various measures promoting data integration and management have also helped the destination surpass urban challenges. Then we have Tianjin, whose smart operations depend on four robotic platforms: city sensing, resident care, voice recognition system, and integrated business solutions. A voice recognition system tells destination managers and workers about residents' moods and happiness. Resident care uses deep learning and correlation to help residents learn. Sensing the city gathers data on air quality, weather, and water levels.
In addition to boosting the local economy, enterprise services make the destination more business-friendly. Zhuhai is our last mainland city. Zhuhai has implemented innovative solutions to current problems with the help of major technology firms. For example, the advanced signal coordination system can make real-time adjustments based on data analysis to increase traffic efficiency by 30%. The smart service platform is another creative effort to make the city hall more accessible to citizens. It manages government, property, and information exchange.
Hong Kong. Hong Kong's innovative plans root in smart blueprint 2.0. This road map emphasizes innovation and technology to create a Smart Hong Kong brand with a strong economy and high standard of living. The road map focuses on innovative technologies across six smart verticals with 76 initiatives.
Taiwan. Taipei, Taiwan, was a Top 7 intelligent community from 2014 to 2016. Taipei has worked hard to provide public engagement platforms, meet urban sustainability standards, and bring innovative solutions. Big data, service integration, and smart leadership made it possible to obtain such honor. Taipei's growth depends on expanding high-speed internet to as many people as possible. With the premise that knowledge drives progress, education and data collection have prioritized the city's goals, fostering a culture of problem-solving, data analysis, and innovation.
Malaysia. Kuala Lumpur uses Alibaba cloud's computing infrastructure to create an innovative
"City Brain" project. It solves urban problems using internet-of-things sensors and data processing. For example, Kuala Lumpur recently deployed an intelligent traffic control system collaborating with Alibaba cloud and Sena Traffic Systems Sdn Bhd to ease traffic and travel.
South Korea. Seoul is one of Asia's most innovative cities. Smart mobility solutions like the
"Hopeful Seoul Monitoring System" track vehicle and pedestrian traffic. Free public bicycle programs, good public transportation, and other initiatives are helping Seoul become car-free by 2030. Busan also has a tremendous internet-of-things strategy. It is designed for smart transportation, tourism infrastructure, public safety, and disaster management, consuming less energy.
Singapore. Concluding Asia's smart milestone is the most innovative destination, Singapore.
Singapore has been a pioneering smart destination since 1999. It has won several smart awards.
Singapore's success depends on innovation and early adoption of smart technologies and concepts. For example, smart health projects focus on medical quality and public safety. The residents are happy and eager to adopt proactive projects and new technologies. A destination’s success is simple when its residents are safe. As a matter of fact, in 2018, McKinsey praised Singapore’s transportation infrastructure and its exceptional government service.
Going Global: Intercontinental Smart Experiences
Canada and the Americas. Internet-of-things enabled smart-city implementation in America (Kubina, 2021). For example, San Diego Airport has microgrids, electric car charging, and stormwater collection. Data-driven policing reduces crime and improves response times in Chicago. An intelligent bus system, GPS-enabled buses, and smart fares are available in Edmonton. New York, the world's economic hub, has integrated tech companies and free Wi- Fi in the city (Trattner, 2019).
According to the UN Commission on Science and Technology for Development, smart programs in Panama, Costa Rica, Buenos Aires, and Mexico use ICT to improve municipal service delivery and management efficiency, transparency, accessibility, and tourism. Lastly, in 2017, Canada and Sidewalk Labs developed Quayside, an 800-acre future town on Toronto's eastern shore (Trattner, 2019).
Australia. While Melbourne uses temperature sensors and internet-of-things to combat extreme heat, New South Wales has “Smart Move Smart Bus Stops” (Reichert, 2017). Adelaide has nbnTM, free Wi-Fi, a digital plan, and 10 Gig City inventions (Tariq et al., 2020). Newcastle's I2N innovation network uses internet-of-things to create dynamic human-environment interactions. “Dual-Naming Interactive Heritage Interpretation” and a “Beacon-Based All Abilities Access Pilot” are also in the works (Sarraf, 2020).
Africa. Young consumers and urbanization make some African destinations smart. For example, Nairobi, Kenya's "Nairobi e-service," offers daily online parking (Eduam, 2017).
Smarter destinations, like Pretoria, developed methods such as forming an urban management team, identifying key challenges, and collecting data. Pretoria is also in the works of the world's most extensive sectional property development, Mooikloof Megacity.
Europe. Thanks to "Smart Access" in Bordeaux, the region has become highly accessible. Turin has a "City Teller" app. Gothenburg uses a "Smart Map," while Spain integrates all services to strengthen the commercial sector and give consumers value. Another example is Maribor's green tourism initiative, which offers free electric minivan tours of the city's pedestrianized downtown (TIC Maribor, 2019). In Helsinki, Finland, the "Whim Application" connects public transportation to taxis, cars, and motorcycles. Copenhagen's "Smart Visitor Service" uses moving posters, robots, and virtual reality goggles to teach visitors about the city's attractions (Krook, 2020). Finally, Venice's "Smart Control Room." This integrated control room allows officials to assess a crisis and act quickly (Tommasi, 2021).
3. Methodologies
The study uses evaluative-descriptive design and mixed-methods techniques. Extensive literature review and content analysis help build existing knowledge and create new literature.
Well-established works of Fraenkal, Wallen & Hyun (2011) and Gay, Mills & Airasian (2016) support this technique. Moreover, by comparing the results and perspectives of further empirical evidence, researchers can determine where more research is needed (Snyder, 2019).
Proponents also utilized the survey method and Likert scale to determine which smart dimensions the government should prioritize and how smart destination initiatives are perceived. Both techniques allow acquiring and operationalizing data (Bhandari, 2022) and describing and characterizing information to establish study directions (Ponto, 2015). The researchers surveyed 100 study participants employed in various sectors using google forms.
The online survey abides with the COVID-19-IATF standards for field research. In compliance with research ethics, the researchers honor the participants' data privacy and participation rights through written consent. Likewise, the succeeding data and findings are only for scholarly purposes.
4. Data, Theoretical Findings, and Discussion
This study presents a large amount of data in a simple form through literature analysis and descriptive statistics. The results in this section are structured as follows: profile of the study participants (4.1), theoretical findings and data on smart project prioritization and governance (4.2), and the Philippines’ digital transition as a smart destination (4.3).
4.1 Profile of the Respondents
Table 1: Demographic Characteristics of the Respondents
Local (62) f % International (38) f %
Age Age
18 to 24 30 48.39 18 to 24 17 44.74
25 to 37 28 45.16 25 to 37 13 34.21
38 to 41 2 3.23 38 to 41 3 7.89
58 to 60 (and above) 2 3.23 42 to 47 5 13.16
Gender Gender
Female 36 58.06 Male 26 68.42
Male 22 35.48 Female 10 26.32
Gay 2 3.23 Gay 1 2.63
Pansexual 1 1.61 Transwoman 1 2.63
Transwoman 1 1.61 Education
Education Post Graduate Studies Graduate 2 5.26
Post Graduate Studies Graduate 1 1.61 Post Graduate Studies Level 1 2.63
Post Graduate Studies Level 1 1.61 Graduate Studies Graduate 2 5.26
College Graduate 36 58.06 Graduate Studies Level 3 7.89
College Level 19 30.65 College Graduate 18 47.37
Senior High School Graduate 4 6.45 College Level 9 23.68
High School Graduate 1 1.61 Senior High School Graduate 1 2.63
Sector High School Graduate 2 5.26
Academe and Education 5 8.06 Sector
Agriculture, Hunting, Fishing, Forestry 1 1.61 Academe and Education 4 10.53 Construction and Engineering 2 3.23 Banking, Commerce, Finance 5 13.16 Health and Social Work 3 4.84 Community, Social, Personal Services 2 5.26 Information and Technology 2 3.23 Construction and Engineering 6 15.79
Public service / Government 1 1.61 Health and Social Work 3 7.89
Real Estate, Renting, Business Services 2 3.23 Information and Technology 7 18.42 Tourism and Hospitality 29 46.77 Real Estate, Renting, Business Services 2 5.26
Transport: Land, Air, Sea 13 20.97 Textiles and Manufacturing 1 2.63
Wholesale and Retail Trade 2 3.23 Tourism and Hospitality 5 13.16
Others 2 3.23 Transport: Land, Air, Sea 1 2.63
Others 2 5.26
Table 1 presents the profile of both domestic and foreign participants. Locally, the majority of the respondents are on their 18-24 years of age (48.39%), female (58.06%), and college graduates, with a great representation from the tourism and hospitality sector (46.77%). On the other hand, the same with the locals, the majority of the foreign respondents are on their 18-24 years of age (44.74%) and college graduates (47.37%). In contrast to the locals, the majority of the foreign respondents are male (68.43%) with a good representation from the information and technology sector (18.42%).
Good sectoral representation in research is vital, especially for a smart destination. Multisector coordination requires stakeholders and sectors to work together to achieve a common goal.
Partners can take advantage of their diverse knowledge, expertise, reach, and resources as they work together to improve development outcomes. Combining various partners' strengths and diverse approaches can remove barriers to policy implementation, facilitate scaling up, and increase the sector's impact. Identifying opportunities for collaborative planning necessitates cross-sectoral coordination.
4.2 Smart Project Prioritization and Governance
Asia is seeing an increase in smart developments (Joo & Tan, 2021). People, Processes, and Technology are three principles that Asia uses to ensure smart destination development. Smart destinations in Asia utilize six smart dimensions: governance, environment, transportation, economy, people, and lifestyle. Indeed, according to the Index of Multiple Deprivation Smart Cities Report for 2021, Asian cities in the early literature dominate smart development projects.
Meanwhile, Europe dominates with seven destinations scoring higher for quality of life and sustainability (Bardnard, 2020). In 2021, a comparison of smart standards, implementation, and cluster models between North America and Europe emerged. While most focus on governance, environment, transportation, economy, people, and lifestyle, the British Standards Institution has developed a model for intelligent administration of European destinations that focuses on five key areas: accessibility, sustainability, digitalization, cultural heritage, and creativity (Kubina, 2021).
From a global perspective, smart projects that improve quality of life require groundwork in the Philippine setting. There is still work to do like new technology and other innovative ideas emerge in the coming years. Recent issues motivate the Philippines to launch smart projects to improve citizen services, emphasizing the need for ICT solutions for disaster response and resilience management programs (Giray, 2021).
An innovative destination necessitates a task force supported by baseline data and assessment to evaluate the government's level of smartness. Based on the findings of Hani (2021), a smart destination roadmap is also required to serve as the foundation for becoming a high-level smart destination. However, the government is still encountering difficulties along the way. Other problems include a massive digital gap in the country, a lack of policies and standards for implementing smart programs, and government changes (Simeon, 2022). Further, the investigators' theoretical analyses postulate that critical elements must be satisfied for the Philippines' digitalization to succeed.
First is the destination's level of digitalization and innovation. Discerning the necessities of the people is essential. Digital technologies are radically transforming numerous aspects of human lives, including communication, urban mobility, work, living, access to healthcare, education, permit processing, and resource management. These smart requirements translate to connectivity, mobility, employment, health and safety, education and skills, e-government, and consumption.
Table 2: Perception on the Degree of Smart Project Prioritization
Indicators Weighted Mean Factor Average Interpretation
E HP LWP LP
Health and Safety 2.68 0.84 0.08 0.01 3.61 Essential
Energy, water, and waste 2.44 0.9 0.14 0.02 3.50 Essential
Education and skills 2.2 1.17 0.12 0.00 3.49 Essential
Connectivity 1.88 1.23 0.24 0.00 3.35 Essential
Mobility 1.76 1.38 0.18 0.01 3.33 Essential
Employment services 1.52 1.44 0.20 0.04 3.20 High Priority
E-government 1.48 1.44 0.26 0.02 3.20 High Priority
Legend: 3.26-4.00 Essential; 2.51-3.25 High Priority; 1.76-2.50 Low Priority; 1.00-1.75 Least Priority
Table 2 allows us to see and understand what the industry players believe the government should prioritize insofar as smart development is concerned. While smart employment and government services are perceived as the lowest among the priorities with a factor average of 3.20, health and safety (3.61) essentially outranked smart consumption, education and skills, connectivity, and mobility. Health and safety are critical to long-term development. It is crucial in broadening economic and social benefits and is relevant to smart growth. It is ranked third among the development goals outlined in the 2030 United Nations Development Programme.
The second is governance and engagement. Stakeholder engagement and collaborations seek to increase civic involvement and harness the role of the business sector and residents in decision-making, which is crucial in developing smart destinations. Therefore, there must be equal representation among categories of stakeholders during public meetings and dissemination of concise reports of stakeholder meetings that the public should know. In addition, there are community development and mediation mechanisms available and implement a regular course of action to address existing problems. It involves inclusiveness, clarity of goals, capacity building, and institutionalization.
Table 3: Perception on the Quality of Service in Terms of Governance and Engagement Indicators Weighted Mean Factor Average Interpretation
E G F P
Adaptiveness, integration institutionalization, structuring
0.76 1.20 0.64 0.09 2.69 Good
Capacity and information 0.72 1.17 0.62 0.12 2.63 Good
Inclusiveness and equity 0.36 1.38 0.74 0.08 2.56 Good
Clarity of goals, transparency, and accountability
0.44 1.38 0.58 0.14 2.54 Good
Legend: 3.26-4.00 Excellent; 2.51-3.25 Good; 1.76-2.50 Fair; 1.00-1.75 Poor
Generally, the industry players perceive an overall factor average of 2.61 in good governance and engagement. Proponents postulate that strong government leadership and active citizen cooperation enable smart destination development. Public-private partnerships are now more common than ever.
Good governance aids developing countries in managing resources while making smart investments and partnerships with the neighboring countries. This claim confers to the good governance and convergence approach stipulated in the development plan of the Philippines under Republic Act 9593.
4.3 Philippines’ Digital Transition as a Smart Destination
Table 4 below shows that the Philippine tourism government has developed new ways to remind the world that the Philippines is still alive, worth seeing and exploring, and as beautiful and entertaining as ever. The participants regarded four initiatives as relevant and two as very relevant. New travel and technology trends go beyond improving operations or visitor experiences to altering the entire tourism system.
Table 4: Perception on the Degree of Relevance Initiated by the Philippine Tourism Government in Shaping Smart Experience
Indicators Weighted Mean Factor Average Interpretation
VR R SR LR
Creation of tourism microsite to include all the information about tourism destination circuits with reading articles, photos, and videos
1.96 1.32 0.10 0.02 3.40 Very Relevant
Partnership with Google in launching the virtual tourism map, which aims to show all the destinations, establishments virtually, and activities in the country
2.00 1.23 0.16 0.01 3.40 Very Relevant
Production of virtual reality tours stressing the campaign It’s More Fun with You," which aims to entice tourists to return to the Philippines and experience safe travel
1.76 1.20 0.26 0.03 3.25 Relevant
Creation of travel podcast series in a documentary format focusing on Philippine adventure identity, culture, the rhythm of the islands, fiestas, farm, and culinary
1.56 1.32 0.26 0.04 3.18 Relevant
Funding of PHP 111,653,600.00 to local government units for the development of the VISITA platform (an online visitor management and monitoring system), local tourism websites and mobile applications, and digital marketing tools
1.12 1.56 0.34 0.03 3.05 Relevant
Creation of OPM music and playlist which represents the Philippine tourism destinations
0.76 1.47 0.48 0.08 2.79 Relevant
Legend: 3.26-4.00 Very Relevant; 2.51-3.25 Relevant; 1.76-2.50 Slightly Relevant; 1.00-1.75 Least Relevant
Transitioning to "SMARTourism" is one of the DOT and TPB's strategic goals. The agencies aim at incorporating innovation and digitization into smart travel while assuring data-driven planning and expanding other promotional and marketing tools. These government-led initiatives from the Philippine tourism government are determined to rebuild better this year, armed with fresh branding strategies and vigorous promotional programs. Since the outbreak, DOT and TPB have worked together to use all possible online platforms to help people in the tourism industry switch to smart tourism. In addition, the extended lockdowns prompted the DOT, in partnership with tourist partners, to create virtual tours to relieve boredom and anxiety in those with limited or no movement. Despite the epidemic, the TPB has grown to over 500 stakeholders, ranging from resorts to tourism support groups.
Further, together with HIMO Global, Inc., the agencies unveiled the Travel Philippines App.
The app offers safety advice and travel advisories for newly reopened tourist destinations.
When the Philippine government reopens its tourist destinations, Travel Philippines is the official guide for safe and enjoyable travel. Domestic and foreign tourists will benefit from safer, more enjoyable travel experiences under the pandemic's new normal. The program is an itinerary planner that incorporates dining establishments, lodging, and tourism sites. Users can organize excursions by bookmarking places they read about on the platform. Boarding cards, hotel reservations, and medical records can all be saved by visitors in their Travel Philippines accounts. Additionally, the application will provide users with an encrypted folder for all their documentation and documents that they can access without an internet connection.
5. Summary
In bridging gaps in smart development preparations, statistical results reveal that various sectoral players identified health and safety (3.61) as a top priority for smart project development. It also manifested that the quality of the country's governance is generally good (2.61), and the Philippine tourism government's smart initiatives in shaping smart experiences are generally relevant (3.80).
6. Conclusion
The Philippine tourism administration strives to promote our country and culture online as much as possible. Officials from both agencies believe that technology is vital in promoting our country's destinations, activities, and attractions. Essentially, smart tourism relates to a site, interest, or even the traveler's technology skills. Like any other destination, its ultimate purpose is to improve resource management efficiency, competitiveness, and sustainability. The industry has made the most of digital opportunities by being in most, if not all, of the sleek apps on online platforms. Smart development's ultimate purpose is to improve the destination's resource management efficiency, competitiveness, and sustainability. As characterized through literature analysis supported by statistical findings, the lack of academic literature on Philippine smart destination development is now foundational.
7. Acknowledgment
The researchers acknowledge the contribution of the authors cited in this study. Same recognition is given to Mr. Rualdo A. Radomes, MBA – researcher and instructor of the University of San Jose-Recoletos, Cebu, Philippines, affiliated with Tourism Sustainability Nepal Research Network for the valued propositions and the exchange of scholastic thoughts.
Special thanks to the Tourism and Hospitality Management Department, Tourism Circle Organization, Hospitality Management Society, and the online viewers and evaluators for the tremendous online support and engagement: https://youtu.be/e_9bA_RHkZY.
Author’s Future Outlook and Declarations: Ethics and Academic Integrity
This study serves as baseline data and a valuable reference for future studies on smart destination development. Furthermore, the study opens opportunities for actual collaborative extension projects, policy development, and funding support, making it smart-specific if carried out at the municipal or city level.
The entire research proceedings did not involve financial interests, political aspirations, physical contact, distress, vulnerable groups, and mentally or psychologically challenged participants. The Center for Policy, Research, and Development Studies of the University of San Jose-Recoletos Philippines, tested, verified, and certified the manuscript's originality and writing quality. To view the technical review certification, kindly access the link provided:
https://drive.google.com/file/d/1qjoFReE6l8lcI0YlamJ9vARvZzYEvKIz/view?usp=sharing.
Notice to the public: as of date of publication, International Journal of Social Science Research (IJSSR) is not in the list of potential and/or predatory journals and publishers.
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