Regression Analysis on Share of Employment of Tourism Industries to Total Employment

Abstract

This study, based on data accessed from the Philippine Tourism Satellite Account of the Department of Tourism of the Philippines spanning from 2000 to 2022, reveals the dynamic nature of the tourism sector's contribution to employment in the Philippines over two decades. It demonstrates steady growth from 2000 to 2019, with a peak at 13.6% in 2019, reflecting the increasing significance of tourism-related industries in job creation. However, a subsequent decline in 2020 and 2021, likely due to the adverse impacts of the COVID-19 pandemic on the global tourism industry, highlights the sector's vulnerability to external shocks. The slight recovery in 2022 suggests resilience and adaptability within the industry. Utilizing Linear Regression Analysis, the research identifies a statistically significant and positive relationship between the year and the share of employment in tourism industries, with an average annual increase of approximately 0.167%. The high R Square value of 0.678 indicates that a substantial portion of the variability in the employment share can be explained by the linear relationship with the year. These findings underscore the gradual but consistent growth of the tourism sector in providing employment opportunities, emphasizing its enduring significance in the Philippines' labor market while recognizing the challenges it faces in an ever-changing global landscape