PASSI CITY COLLEGE

SCHOOL OF HOSPITALITY MANAGEMENT

Passi City Tourism Industry Midst Pandemic:

RYAN A. CATALAN
RUTH CHEEZE R. DALIPE
LISLIE MEA H. PANES
MAEBEL C. PAREJA
ISABELL ROSE A. VISCAYA

Chapter I

INTRODUCTION TO THE STUDY

Chapter one consists of six parts: (1) Background of the Study, (2)

Epistemology and Theoretical Research Perspective, (3) Statement of the

Problem, (4) Scope and Limitation, (5) Definition of Terms and (6) Significance

of the Study.     

Part One, Background of the Study, gives the overview of the chosen

study, presents a situation and explains the reasons for choosing the study.

Part Two, Epistemology and Theoretical Research Perspective, states the

theory upon which the study will be anchored.

Part Three, Statement of the Problem, states the main problems that the

research hopes to answer.

1
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Part Four, Scope and Limitation of the Study, sets the scope of the

research in terms of respondents, research design, research instrument, and

data analysis procedure used in this study.

Part Five, Definition of Terms, gives the conceptual and operational

definitions of the important terms used in the study.

Part Six, Significance of the Study, specifies the beneficiaries and the

corresponding benefits that may be derived from the findings of the

investigation.

Background of the Study

Passi, officially the City of Passi, is a 4th class component city in

the province of Iloilo, Philippines. According to the 2020 census, it has a

population of 88,873 people.  It has a total land area of 25,139 hectares (62,120

acres), making up 5.39% of the provincial land area of Iloilo. Its relatively flat

land stretches alongside the Jalaur and Lamunan Rivers. Mountainous areas are

found along the northern part of the city. Passi is a rice, pineapple, and sugar-

rich area and the only component city and the largest in the Province of Iloilo in

terms of land area and income and second in population after Oton. It is

popularly known with its slogan "The Sweet City at The Heart of Panay" due to

its vast pineapple plantations and annual output in fruit production

(https://en.wikipedia.org/wiki/Passi,_Iloilo, ret. 10/21/2021).

2
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Passi City has played an important role in reaching its peak of progress.

Centrally situated in the province, Passi City is locally important as the District

Agri-Industrial Center of Iloilo with three sugar centrals. It is rich with agriculture

resources that have long formed the backbone of its economy and agricultural

diversification produces crops such as rice, corn, vegetables, coconut, sugarcane

and pineapple. Passi City has been an important pineapple producer for years, it

has long been known for other industries including fruit processing, wallboard

production, metalworking production and cut-flower propagation. Its locally

produced pineapple wine, jam and fruit preserves have already established

captured market with its exposure to various local trade fairs and exhibits such

as the annual Fiesta in the City celebration during May; TUMANDOK in

September; and WOW Philippines: the Best of the Region.

Famous attractions in the city are the wide pineapple plantations, the cock

farms, the Baroque Church of Saint William the Hermit, the old Muscovado

Chimney, the Chameleon Butterfly Garden, the Amorotic caves of Barangay

Magdungao, the breath-taking highway view with good sunset and the old

Railway Bridge which needs some preservation and attention spanning the Jalaur

River (https://en.wikipedia.org/wiki/Passi,_Iloilo#Economy, ret. 10/21/2021).

The COVID-19 viral disease caused the coronavirus 2019 pandemic

instigated by a fatal infection (SARS-CoV-2) (Aqeel et al., 2020). The health

experts first identified this virus in Wuhan, China, in late December 2019. The
3
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

WHO declared an outbreak of the COVID-19 a public health emergency of

international concern in January and a global pandemic in March 2020. As of

March 15, 2021, this pandemic has infected more than 119 million people, of

which more than 2.66 million individuals have died from the lethal infectious

disease (Lange, 2021). It has made this fatal virus one of the deadliest

pandemics in human history. Symptoms of the coronavirus virus infection vary

widely, from non to most lethal and life-threatening diseases (Abbas et al.,

2021). When people approach each other, the virus is mainly transmitted

through the air. It leaves the infected person breathing, coughing, sneezing, or

talking and entering another person through their mouth, nose, or eyes. It can

also spread through contaminated surfaces. Individuals remain infected from the

virus for up to two weeks and may spread the virus even if there are no

symptoms among infected people (Anjum et al., 2017; Monmousseau et al.,

2020; Rather, 2021).

The appearance of the lethal disease COVID-19 has resulted in massive

financial losses and caused global health and economic crises worldwide

(Anderson et al., 2020; Brewer, 2016). The most frightening news of the

seasonal influenza outbreaks, epidemics, pandemics, and catastrophes results in

a steep decrease in the travel and tourism industry, a dominant contributor to

the service industry (Abbas, 2021; Jones et al., 2015). The pandemics adversely

impact tourists' behaviors and their mental wellbeing (Aman et al., 2019; Bauer

4
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

et al., 2021; Park et al., 2019). As a result, they drop their planned tour plans in

fear of the disease infection, as it looks impossible to avoid transmission of the

virus during travel (Mamirkulova et al., 2020; Avery, 2017; Meadows et al.,

2019). Besides, tourists travel increases infection risk to other air passengers in

the absence of effective vaccines (Su et al., 2021; Hu and Zhang, 2014;

Reynolds and W.S., 2005; Tonsaker et al., 2014). Travelers play a significant role

in transferring viruses, epidemics', outbreaks, or pandemics between local

communities' destinations (Hollingsworth et al., 2006; Abbott, 2021; Zhong et

al., 2021; Li et al., 2018). The adverse consequences of the COVID-19 on the

travel and leisure industry resulted in novel viral disease appurtenance (Su et al.,

2020).

Tourism continues to be one of the sectors hardest hit by the coronavirus

pandemic and the outlook remains highly uncertain. OECD expects international

tourism to fall by around 80% in 2020. Destinations that rely heavily on

international, business and events tourism are particularly struggling, with many

coastal, regional and rural areas faring better than cities.

Encouraging news on vaccines has boosted hopes for recovery but

challenges remain, with the sector expected to remain in survival mode until well

into 2021.

5
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Domestic tourism has restarted and is helping to mitigate the impact on

jobs and businesses in some destinations. However, real recovery will only be

possible when international tourism returns. This requires global co-operation

and evidence-based solutions so travel restrictions can be safely lifted.

The survival of businesses throughout the tourism ecosystem is at risk without

continued government support and although governments have taken impressive

action to cushion the blow to tourism, to minimize job losses and to build

recovery in 2021 and beyond, more needs to be done, and in a more co-

ordinated way. Key policy priorities include: Restoring traveller confidence,

Supporting tourism businesses to adapt and survive, Promoting domestic tourism

and supporting safe return of international tourism, Providing clear information

to travellers and businesses, and limiting uncertainty (to the extent possible),

Evolving response measures to maintain capacity in the sector and address gaps

in supports, Strengthening co-operation within and between countries, and

Building more resilient, sustainable tourism.

While flexible policy solutions are needed to enable the tourism economy

to live alongside the virus in the short to medium term, it is important to look

beyond this and take steps to learn from the crisis, which has revealed gaps in

government and industry preparedness and response capacity. Co-ordinated

action across governments at all levels and the private sector is essential.

6
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

The crisis is an opportunity to rethink tourism for the future. Tourism is at

a crossroads and the measures put in place today will shape the tourism of

tomorrow. Governments need to consider the longer-term implications of the

crisis, while capitalizing on digitalization, supporting the low carbon transition,

and promoting the structural transformation needed to build a stronger, more

sustainable and resilient tourism economy

(https://www.oecd.org/coronavirus/policy-responses/rebuilding-tourism-for-the-

future-covid-19-policy-responses-and-recovery-bced9859/, ret. 10/22/2021).

The domestic tourism in Passi City was not spared from the effects of the

COVID-19 Pandemic. The businesses across the industry’s value chains have

been hit hard. Closures, Lay-offs and Profit Losses were unavoidable.

Hence, it is the main goal of this study is to understand the challenges the

tourism industry in Passi City encountered in the course of their businesses

during this time of pandemic and on how they have managed these challenges.

Epistemological and Theoretical Research Perspective

The recent study will be anchored to the following epistemological and

theoretical perspectives:

Institutional Theory. An institutional theory is a capable path for

exploring the borders between businesses or society that have been shaped

SMEs in various ways to sustainable growth (Fauzi & Sheng, 2020). Explaining

7
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

that sustainable pursuits is not primarily a voluntary act, as the performance of

firms are featured with several challenges, including government rules and

marketplace pressures. Therefore, institutional theory focuses on factors

that are externally or internally central within the firm and sustainable

innovation. From the institutional theory of sustainable growth for small and

medium-sized enterprises, opportunities with normative, coerciveness and

mimetic drivers to influence small and medium-sized enterprises to shape

environmental, social or economic decision-making and to legitimise the vision of

sustainable business practise (Shibin et al., 2020; Caldera, Desha & Dawes,

2019).

In many creative ways, business owners are responding to institutional

constraints, such as implementing innovative business strategies, developing

strength and courage, partaking in associations, trying to give back to the

community and collaborating with the authorities (Eijdenberg, Thompson,

Verduijn & Essers, 2019).

Institutional theory identifies broader and more resilient approaches to

social structures; consideration of structural-building processes as rules for the

social behavior of the authorities through rules and standards (Scott, 2004;

DiMaggio & Powell, 1983). In other words, Caldera, Desha and Dawes (2017)

tend to focus on a process in which practices can be incorporated into an

institution as recognized economic, social and environmental standards.

8
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Institutional theory refers to innovative elements or capabilities with sustainable

growth of small and medium-sized enterprises as a stimulus lens that encourages

management practices to pursue sustainable business growth (Srisathan,

Ketkaew & Naruetharadhol, 2020) in the form of factors such as culture, the

legal and social environment, traditional or cultural values, economic

incentive schemes and market value.

Appreciative Inquiry Theory. Appreciative inquiry (AI) is an approach

to organizational management that emphasizes working from strengths to find

new directions for growth rather than focusing on weaknesses or issues to be

solved. The origins of appreciative inquiry go back to a 1987 paper entitled,

“Appreciative Inquiry in Organizational Life,” by David Cooperrider and Suresh

Srivastva, but it is more strongly associated with Cooperrider. Appreciative

inquiry was created to provide an alternative to the problem solving approach to

management. Cooperrider saw the problem solving approach as limiting and

inherently biased towards the negative from the outset.

Appreciative inquiry begins with five basic principles meant to guide an

organization through the process. The original five principles are the

constructionist principle: Reality within an organization is subjective and it is

formed through language and interactions of the people within, the principle of

simultaneity: As questions are asked and interest grows, change has already

begun, the poetic principle: The character of an organization is created and

9
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

influenced by the stories people tell each other about it, the anticipatory

principle: Organizations and people work toward their images of the future and

the positive principle: True change requires working from positives to tap the

collective creativity of the group.

Pure appreciative inquiry is in use at many organizations all over the

world. In addition to being used by non-profit and for-profit organizations of

every size, Appreciative Inquiry has also been scaled up to municipal and

national levels. When successfully applied, Appreciative Inquiry has been

credited with increasing employee satisfaction, improving efficiency, driving sales

and so on (https://www.investopedia.com/articles/investing/111214/using-

appreciative-inquiry-solve-management-problems.asp, ret. 10/21/2021).

Contingency Management Theory. The contingency approach, often

called the Situational Approach is based upon the premise that all management

is essentially situational in nature. All decisions by managers will be affected (if

not controlled) by the contingencies of a given situation. 

There is no one good way to address any decision. Contingencies arise

from various environmental factors. As such, managers must take into account

these contingencies when making decisions that affect the

organization. Contingency theory also proposes structural changes or designs,

10
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

leadership styles, and control systems in an organization that allow it to react to

environmental contingencies.

The primary characteristics of contingency theory include Non-universality

of management theory - There is no one best way of doing things; Contingency -

Management decision making is contingent upon the situation; Environment -

Managerial policies and practices to be effective, must adjust to changes in the

environment; Diagnostics - Managers must possess and continue to improve

diagnostic skills so as to anticipate and ready for environmental changes; Human

Relations - Managers should have sufficient human relations skills to

accommodate and stabilize change; and Information and Communication -

Managers must develop a communication system adequate to deal with

environmental changes.

The commonly-identified contingencies influencing organizational

structure include Organization Size, Nature of Business and Technology (the

need for customization), Environmental Uncertainty, and Individual Differences

or Organizational Preferences.

The contingency approach defines not only patterns of internal interaction

but also suggests organization designs and management approaches most

appropriate for specific situations

(https://thebusinessprofessor.com/en_US/management-leadership-
11
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

organizational-behavior/contingency-approach-or-situational-approach-to-

management, ret. 10/21/2021)

The primary advantages of contingency theory include providing a realistic view

of management and organization; It discards the universal validity of principles;

Managers are situation-oriented and not stereotyped; and Lends itself to an

innovative and creative management style.

Innovation Theory. This theory was propounded by J.A. Schumpeter.

According to Schumpeter, entrepreneur is basically an innovator and innovator is

one who introduces new combinations.

In practice, new combination theory covers five cases which include the

introduction of a new good which consumers, are not yet familiar—or of a new

quality of a good; The introduction of a new method of production, that one not

yet tested by experience in the branch of manufacture concerned, which need by

no means be founded upon a discovery scientifically new and can also exist in a

new way of handling a commodity commercially; The opening of a new market

i.e. a market into which the particular branch of manufacture of the country in

question has not previously entered, whether or not this market has existed

before; The conquest of a new source of supply of raw materials or half

manufactured goods, irrespective of whether this source already exists or

whether it has first to be created; and The carrying out of the new organization

12
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

of any industry like the creation of a monopoly position (for example, through

trustification) or the breaking up of a monopoly position.

In Schumpeterian theory, the main theme is the innovation. He makes a

distinction between an innovator and an inventor. According to him, an inventor

discovers new methods and new materials. But, an innovator is one who applies

inventions and discoveries in order to make now combinations. With the help of

these new combinations, he produces newer and better goods which yield

satisfaction as well as profits.

In economic development process, entrepreneurs have been assigned a

crucial role so that tempo of growth is maintained effectively. Development

requires basic changes and entrepreneurs carry out the required changes. Thus,

entrepreneurial development brings economic development.

Schumpeter’s concept of entrepreneurship is quite broad based.

Entrepreneurship includes not only the independent business men but also

executives and managers who actually undertake innovative functions

(https://www.economicsdiscussion.net/entrepreneurship/theories-of-

entrepreneurship/31823, ret. 10/21,2021).

Below is the paradigm of the study showing the process of how the study

will be conducted.

13
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Paradigm

Social Challenges

Passi City Tourism Industry During

Cultural Challenges

Figure 1. Conceptual Framework

14
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Statement of the Problem

This study aims to determine the challenges of Tourism Industries in Passi

City, Iloilo. Specifically, this will answer the following qualitative research

questions:

1. What are the economic challenges encountered by Passi City Tourism

Industry during Pandemic?

2. What are the social challenges encountered by Passi City Tourism Industry

during Pandemic?

3. What are the cultural challenges encountered by Passi City Tourism

Industry during Pandemic?

4. Based on the findings of the study, what intervention programs will be

created to overcome the different challenges?

Scope and Limitation

This study aims to determine the challenges and coping strategies of the

Tourism Industry in Passi City, Iloilo.

The study will be conducted in Passi City, Iloilo. The results of this study

will be used for educational purposes.

The selection of participants for this study will based on a strategy

referred to as, “purposive sampling” which, by one definition (Maxwell as cited in

Besares 2018), denotes that “a selection strategy in which particular settings,

15
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

persons or activities are selected deliberately in order to provide information that

can’t be gotten as well from other choices”. The primary informants of the study

in Passi City, Iloilo are the tourism stakeholders such as owners of different

businesses and tourism staff who will be purposively chosen according to the

need set at the start of the study and will be selected based on the following

qualifiers; (1) proximity to the researcher, (2) availability of the informants, and

(3) financial and logistical considerations.

Qualitative research design specifically the ethnographic research design

will be used. Ethnography is a type of qualitative research that gathers

observations, interviews and documentary data to produce detailed and

comprehensive accounts of different social phenomena (Reeves, et al., 2013).

Interview using the researchers-made interview questions will be

conducted to the respondents to gather the data needed in this study.

Respondents’ responses will be recorded for interpretation and analysis. To

validate the respondents’ responses during the interview the researchers will also

observe the respondents during the actual conduct of the study.

Proper health protocols set by the Inter-Agency Task Force for COVID-19

(IATF) will be strictly observed in conducting the data gathering procedures.

Likewise, consent will be secured from the respondents of the study. Thematic

analysis will be used to analyze the data gathered from the respondents.

16
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Definition of Terms

For the clarity of the terms used in the study it is hereby defined

conceptually and operationally.

Challenges. Challenges refer to stimulating tasks or problems.

(Merriam Webster Dictionary, 2021).

As used in this study, challenges refer to the social, economic and

cultural difficulties encountered by business owners in Passi City in the course

of its business in all aspects of business management midst pandemic.

Pandemic. Pandemic refers to an outbreak of a disease that occurs

over a wide geographic area (such as multiple countries or continents) and

typically affects a significant proportion of the population.

As used in this study, pandemic refers to the prevalence of Covid-19

virus which affected the lives of Passinhons especially the Tourism industry.

Tourism Industry - Tourism industry can be defined as the set of

industries which facilitate by providing infrastructure and products and services

and make possible travelling for different purposes and travelling to places of

leisure and business interests. Tourism industry is all about providing necessary

means to assist tourists throughout their travelling. (http://www.market-

width.com/Tourism-Industry.htm, 2021).

17
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

As used in this study, this refers to the local businesses in Passi City

associated with local tourism, including but not limited to café’s restaurants,

resorts, farms, agri-tourism sites, etc., regardless of size and income.

Significance of the Study

This study will be undertaken to determine the challenges and coping

strategies of the Tourism industries in Passi City. The results of this study will be

beneficial to the following:

Tourism Industry Business Owners. This study will be beneficial to

the business owners not only in Passi City but in the Tourism industry in general

as the results would highlight the common challenges encountered by these

business entities. As such, fellow owners can refer to the experiences of one

another and learn from it. Also, best coping practices can be replicated by

business owners in order for them to easily overcome the challenges in the

course of their business.

Local Government Unit – Passi City. The local government will be

given a reference on the challenges encountered by the tourism industries in the

City. As such, they can formulate and implement policies, regulations and

programs for the benefit of these businesses. They can also assist these

economic entities in mitigating business challenges. With the support of the LGU,

these tourism industries will be an economic driver for the City.

18
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Tourism Industry. With the results of the study, the successes and

resilience of the tourism industries in the City will be highlighted and further

promoted. Along with the intervention of the LGU, this study may help

encourage budding entrepreneurs to set-up their own businesses with focus on

local tourism. The rise of these tourism industries will drive the tourist traffic in

the city.

Local and Foreign Tourists. The study will highlight the profile of the

tourism establishments together with what they can offer. These will help attract

more traffic into their businesses both from within the locality and from outside

tourists. These local and outside tourists will be presented with an array of

destination choices that they can enjoy and further promote.

The BSHM Students. The BSHM students can take insights from this

study. As the future, managers, decision-makers and workforce of the Hospitality

and Tourism Industry, they will be immersed in the real-life situations of these

Tourism establishments. As such, they can learn and reflect from it. This will

serve also as another learning avenue for them to further enhance their

understanding of the industry.

Future Researchers. The future researchers can benefit from this study.

Should they wish to pursue a study on the topic at hand, this can provide them

with a wide range of review on literature about the Tourism Industry in general.

19
 PASSI CITY COLLEGE
SCHOOL OF HOSPITALITY MANAGEMENT

Furthermore, the results may also be used in the conceptualization of

other research problems, particularly in the findings which focus on the need for

improvement.

20