TOURISTS’ SATISFACTION AND EXPENDITURES ADMIST NEW NORMAL

A Thesis
Presented to the
FACULTY OF THE SENIOR HIGH SCHOOL DEPARTMENT
BOHOL WISDOM SCHOOL
City of Tagbilaran

In Partial Fulfillment
of the Requirements in
Practical Research 1

BAJAO , JHOMARI U.
COSARE , FRANCIS IVAN S.
MALUENDA , JOHN DAVID T.
MARATAS , NIGEL TIM SEAN A.
SUAREZ , JHON ANDREW M.
TROTIN , LEUC FRANCOIS

APRIL 2023
Chapter 1
THE PROBLEM AND ITS SCOPE
INTRODUCTION

Rationale

Tourism has become an important global economic and

leisure activity due to its growing acceptance and benefits.

Countries engage in numerous marketing and promotional

activities to attract more tourists and improve their

satisfaction. If a destination can identify and satisfy the

needs and wants of tourists, these tourists will probably

make repeat visits and spread positive word of mouth

publicity. Researchers have discussed the close

relationships among the psychological variables, such

as attitude, perception, satisfaction and expenditure.

In Alona Beach, Tourists have to walk in a bumpy

pathway to reach the spot, which is very inconvenient, and

not leaving pleasant impression to them as well. What’s

worse is that due to the weather condition in Bohol, the

road is easily be eroded by the heat and rain. Therefore, to

keep road in good condition, regular maintenance is

necessary. And for other place without proper maintenance,

the damage to road is obvious, which increase the difficulty

to travel around spots.

Virgin Island in Panglao Bohol has been the talk of the

town after a netizen took to social media to complain about

spending as much as P26,000 on food for a group of 19 people

who visited the famous tourist spot. The post went viral and

reached the attention of local and national officials. They

have already expected that food on the island will be

expensive because it is one of the more popular destinations

in Bohol. But they did not anticipate that it would be that

pricey.

Literature Background

Local and International tourists may encounter

challenges in their comfort and expenditure. This is the

time they experience cognitive and emotional image and has

been investigated the effect of both factors on the

components of satisfaction and loyalty. They are taught to

value the quality, price, emotional value, social value,

educational value, physical attributes, and nonphysical

attributes. If the tourists are satisfied with their

journey and experience to a destination, they are expected

to return or to offer the destination to others.

This study is anchored on Kotler & Keller's Customer

Satisfaction Theory (1980), Cowan’s Complexity Theory

(1980), and Ciorciari's Consumer Behavior Theory (2021).

Kotler and Keller's customer satisfaction theory is a

marketing concept that focuses on the importance of

satisfying customers' needs and expectations in order to

build long-term relationships with them. The theory suggests

that customer satisfaction is a crucial element for

achieving business success, as satisfied customers are more

likely to continue doing business with a company, recommend

it to others, and even pay a premium price for its products

or services.

According to Kotler and Keller, customer

satisfaction is determined by the perceived performance of a

product or service compared to the customer's expectations.

If the performance meets or exceeds the customer's.

Kotler & Keller's Customer Republic Act No. 7394

Satisfaction Theory Otherwise known as
Perceived outcomes the “Consumer Act of
against expectations  the Philippines”
(Philip Kotler 6
Kevin Lane Keller,
1980) Republic Act No. 9593 
Otherwise known as
the “The Tourism Act
Cowan’s Complexity Theory of 2009”
Emergent complexity
from collective
behavior (George
Cowan, 1980)

Ciorciari's Consumer
Behavior Theory
COVID-19's impact on
consumption behavior.
(Joseph Ciorciari,
2021)

Tourist in Panglao

Satisfaction Expenditures

Proposed Action Plan

Figure 1. Theoretical and Conceptual Framework

If the performance meets or exceeds the customer's

expectations, then the customer is likely to be satisfied.

However, if the performance falls short of the customer's

expectations, then the customer is likely to be dissatisfied

(Kotler & Keller, 2016, as cited in Bitner and Zeithaml,

2003)

Cowan’s Complexity Theory (1980) examines how simple

components can interact and create complex behaviors, as

well as how these behaviors evolve over time. It is used to

analyze the structure, dynamics, and behavior of complex

systems, and to develop algorithms and models to predict

their future behavior.

Application of complexity theory is an advance in the

theoretical reasoning as to how complex interactions of

causal factors combine to explain the occurrence of high/low

tourism expenditure scores. It provides new perspectives on

the relationships between predictors of outbound tourism

expenditure and enable us to explain the existence of

heterogeneous features, occurrences of contrarian cases, and

complex interactions of tourism expenditure antecedents

(Modelling tourism expenditure using complexity theory,

2017).

Ciorciari's Consumer Behavior Theory (2021) is based on

the idea that consumers do not always follow the same

pattern of purchasing decisions, but rather they create

unique, individualized strategies to determine which

products or services they will purchase. It offers valuable

insight into how consumers make purchasing decisions and can

be useful to marketers in better understanding and targeting

their target audiences.

The Covid-19 pandemic has had a significant impact on

Ciorciari's theory of consumer behavior. With a decrease in

consumer spending, a decrease in consumer lifestyle, a shift

in the way consumers shop, and a change in the culture

within which consumers operate, it is clear that the

pandemic has had a major impact on consumer behavior (B Yin,

2021)

Republic Act No. 7394 otherwise known as the “Consumers

Act of the Philippines”. Signed on April 13, 1992, the

Consumer Act of the Philippines was enacted by the Senate

and House of Representatives of the Philippines with the aim

to protect the interests of the consumer, promote his

general welfare, and establish standards of conduct for

business and industry.

Consumer rights are essential to ensure tourist

satisfaction and protect their interests. Tourists'

satisfaction is linked to the level of customer service they

receive, and they are more likely to spend more money on a

trip if they are satisfied with their experience. The

article emphasizes the need for businesses and government

agencies to prioritize tourists' rights and provide

excellent customer service to encourage repeat visits and

positive reviews (Habito, 2016).

Republic Act No. 9593, also known as the Tourism Act of

2009, is a Philippine law that aims to promote the

development of the country's tourism industry. The law

emphasizes the importance of sustainable tourism, community

involvement, and cultural preservation in the development of

the industry. Overall, the law seeks to increase tourism-

related investments, create job opportunities, and promote

the Philippines as a premier tourist destination.

The law recognizes the importance of tourist

satisfaction and the need for businesses to provide high-

quality products and services to attract more visitors and

increase their spending. The law also emphasizes the need

for sustainable tourism practices, community involvement,

and cultural preservation to ensure the long-term growth of

the industry.

According to Centeno & Marquez, Tourist satisfaction is

positively correlated with spending, and that the quality of

tourism services and experiences play a significant role in

shaping both satisfaction and spending behavior. Businesses

and government agencies should prioritize the development of

high-quality tourism products and services to increase

tourist satisfaction and encourage higher spending (Centeno

& Marquez, 2020).

The importance of tourist satisfaction makes it

necessary to measure tourist satisfaction and the factors

affecting it. The sustainable growth of the tourism industry

depends on a good plan for related services and facilities.

Measurement of satisfaction helps tourism industry managers

to understand the motivations and behaviors of tourists and

use it to increase industry performance. People travel from

one place to another to fulfill initial needs. It is crucial

to understand tourist satisfaction, especially in enhancing

the tourism business economy, by attracting tourists in the

future. Therefore, tourist’s satisfaction with each

attribute and its importance should be assessed to measure

overall satisfaction (Sonali et. al., 2022).

According to the Department of Tourism (2021), the

average daily expenditure by foreign tourists amounted to

around 6.8 thousand Philippine pesos in 2020. Overall, the

country saw a significant decline in tourist arrivals in

that year as a result of the travel suspensions implemented

in light of the global coronavirus (COVID-19) pandemic.

With 91% of the respondents coming from micro, small,

and medium enterprises (MSMEs), it’s not surprising that 73%

are planning to avail of government grants and subsidies to

help revive their operations (Impact of COVID-19 on the

Philippine Tourism industry, 2020).

The recent development in the tourism industry during

the last couple of decades has attracted the attention of

various sectors and spur initiatives that hasten market

competition. This development has prompted the importance of

the pre-purchase attributes of a product or service in

understanding tourist satisfaction and in developing

competitive advantage (Ledesma, 2022)

Tourist satisfaction is an important factor in crafting

effective marketing tools in order to attract customers and

create marketing plans on what products or services must be

provided in tourism market. Since tourist satisfaction level

is assessed by comparing the current destination with other

alternative destinations visited in the past, measuring

tourist satisfaction is a vital factor in tourist marketing

(Varona et al., 2021).

Tourists are less concerned about the cost of travel than

they would be if they were paying for it themselves. Higher

prices are not likely to deter travel, nor will lower prices

encourage more frequent travel. We can say, therefore, that

business travel is relatively price inelastic. Tourists will

be prepared to delay their travel or will book well in

advance of their travel dates if this means that they can

substantially reduce their costs.

For these travelers, price is becoming more important

than service. At the same time, narrowing profits in the

business world, and restrictions placed on content corporate

travel budgets are driving up price elasticity among

business travelers (Holloway, 2022).

Tourism and hospitality businesses are going through

more volatile, uncertain, complex and ambiguous

environmental conditions than ever before. Hence, ensuring

customer satisfaction and sustainability has become a more

challenging task for tourism and hospitality businesses (Koc

E., 2021).

According to the survey conducted by the Guide to the

Philippines (2020), safety and health are the top concerns

of Filipino tourists, with 61.9% of respondents citing it as

their main consideration when planning their trips. This

indicates that tourists may be more willing to spend on

travel if they feel that their safety and well-being are

assured. Overall, the survey provides valuable insights into

the spending behavior and preferences of tourists in the

country, particularly in the context of the COVID-19

pandemic. This information can help tourism businesses and

destinations tailor their offerings to meet the evolving

needs and expectations of travelers and develop pricing

strategies that are both competitive and sustainable (Tan,

2020)

Tourists’ expenditures, such as spending on

complementary items are categorized as exceptional expenses

of smaller magnitude compared to the overall holiday budget,

and in turn, are likely prone to be underestimated and to be

left unnoticed. To prevent overspending, consumers tend to

set mental budgets that limit their spending within defined

categories and it serves as a self-regulatory mechanism in

which spending within a particular category is allowed until

a specific limit is reached (Cozzio et al., 2020).

Tourist satisfaction plays a crucial role in shaping

both satisfaction and spending behavior. Businesses and

government agencies should prioritize the development of

high-quality tourism products and services to increase

tourist satisfaction and encourage higher spending.

Therefore, tourist satisfaction with each attribute and its

importance should be assessed to measure overall

satisfaction. Overall, measurement of satisfaction helps

tourism industry managers to understand the motivations and

behaviors of visitors and use it to increase industry

performance.

THE PROBLEM

Statement of the Problem

The researchers aim to find out the tourist

satisfactions and expenditures amidst new normal in Panglao.

It seeks to answer the following questions:

1. What is the respondent's profile in terms of:

1.1 age;

1.2 gender; and

1.3 nationality?
2. What is the respondents’ satisfaction in their stay in

Panglao?

3. What are the significant impacts of the COVID-19 pandemic

on tourist satisfaction and expenditures?

4. Which items/services did you spend the most money on

during your trip?

5. What action plan could be proposed based on the findings

of the studies?

Statement of the Null Hypothesis

There are no significant impacts of the COVID-19

pandemic on tourist satisfaction and expenditures.

Significance of the Study

This study will serve as reference or guide for the

future researchers who might conduct a similar study. The

results provide assistance to the following:

Tourists. This study may improve the overall

satisfaction of tourists in Panglao through the improvement

of businesses.

Businesses. This study helps to identify which areas of

the customer experience need to be improved upon in order to

attract and retain more customers. It can also provide

insight into how much money tourists are willing to spend on

their trips, and what type of experiences they prefer.

Community. This study will contribute to the Province

of Bohol's economic development. Additionally, it might

teach the locals about tourist behavior and provide them

with a source of income.

Future Researchers. This study will serve as a reference or

guide for future researchers who might conduct a similar

study.

RESEARCH METHODOLOGY

Design
To achieve the desired goals of this study, the

researcher employed a survey. The researcher aims to know

the satisfaction and expenditures of tourists in Panglao,

Bohol.

Direct participation from both the researcher and the

respondents was done to attain specific and detailed

information. The findings of the study were carefully

checked and thoroughly analyzed. From the obtained data, the

researcher was able to make a scientific interpretation.

Environment and Participants

This study will be conducted in Alona Beach. It is a

popular public beach located at the south-west tip of

Panglao Island, Bohol in the Philippines. It is known for

its white sand, rocky cliffs, and commercial facilities that

line the 1 kilometer stretch of the beach. It is located

near a coral reef and is a popular scuba-diving and

snorkeling spot.
The participants of this study will be the tourists in

Panglao. Participants of these selected places will be 20

tourists of each area, that will be available on the day of

the study to be conducted in Alona Beach, Panglao Bohol.

Instrument

This study is going to be conducted through the use of

a self-made questionnaire related to the current tourists'

satisfaction in Panglao as well as the tourists'

expenditures. The said questionnaire would undergo pilot

testing by the researchers before its actual distribution.

Data Gathering Procedure

The researchers will secure a list of the Local and

International tourists at Alona Beach. Then, the researchers

will be sending a letter to the Municipal mayor and to the

barangay captain of the municipality of Panglao Bohol for

the approval of conducting a survey. After which, the

questionnaires will be given to the target respondents where

they will be having enough time to answer.

DEFINITION OF TERMS

The following terms are defined in clear and specific language in

order to help explain the concepts discussed in the study.

The new normal. It refers to changes and adaptations in how the way

tourism and its businesses operate in Panglao as a result of the

COVID-19 pandemic.
Tourist satisfaction. It refers to the attitude of a tourist

towards his/her experience in the new normal, based on the

perceived quality of the experience and the degree to which the

experience meets the expectations of the tourist.

Tourist expenditure. It refers to the total amount or the average

amount of money spent by a tourist during the duration of his/her

stay, including expenditures on accommodation, transportation,

food and beverage, entertainment, shopping, and any other

services or products purchased by the tourist.

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Claudia Cozzio, Oksana Tokarchuk & Oswin Maurer (2021) The

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The_Case_of_Angeles_City_Philippines
RESEARCH INSTRUMENT

QUESTIONNAIRE ON THE TOURISTS SATISFACTION AND EXPENDITURE

AMIDST THE NEW NORMAL

Name (Optional):_________________________________________

A. Profile
1. Age
__ 18-25 years old __36-45 years old

__ 26-35 years old __46-50 years old

2. Gender

__ Male __ Female

3. Nationality

__ Filipino

__ Korean

__ American

Directions: Please answer these questions honestly. Your

answers are rest assured confidential and will be only used
to gather data for the study. Please put a check mark on the
box of your answer.

5 - Very Satisfied
4 - Satisfied
3 - Fair
2 - Dissatisfied
1 - Very Dissatisfied

B. On Tourist’s satisfaction. 5 4 3 2 1
1. Convenient opening hours.
2. Visually appealing physical
facilities.
3. Availability of transport vehicles
in going to Panglao
4. Safety and accessibility of the
road.
5. Pollution free surrounding
6. Clean and well- maintained area.
7. Free from noise.
8. Approachable and accomodating
personnel/staff.
9. Availability of online booking.
10. Maintained pandemic safety
protocols.

C. On Expenditure Statements 5 4 3 2 1
1. Food prices are reasonable for me.
2. Transportation going to Panglao is
cheaper than other tourist
destinations.
3. Buying gifts/souvenir here is
expensive.
4. Hotels are highly priced.
5. Island hopping is costly.
6. The prices of additional offer of
this tourist destination and
handcraft products are favorable.
7. Staying at this Tourist
destination is worth every peso
paid.
8. Services are expensive.
9. This tourist destination values
your money.
10. Overall stay here was costly.

Thank you for your cooperation!