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The Relevance of Accreditation to Accommodation Establishment’s Performance

Chapter 1

THE PROBLEM

Rationale

The Republic Act No. 9593 (Tourism Act of 2009) mandates the DOT to ensure the

harmonious implementation of the standards and procedures for the accreditation of tourism

enterprises nationwide. According to the Department of Tourism (DOT), as of September 15,

2020, there are a total of 10, 042 tourism enterprises in the country that has attained the

accreditation certificate from the department. It is 32.36 percent greater from the figure in the

previous year 2019. Included on those thousands of enterprises who complied with the minimum

standards for the operation of a tourism facility and services are 18 tourism businesses from

Lanao del Norte. They include a resort, a travel and tour business, mabuhay accommodation

businesses, restaurants, and agri-tourism enterprises. The number of accredited establishments

are just a tiny slice in the entire pie of tourism establishments in the country (Arnaldo, 2020). In

the Philippine Statistics Authority’s survey of tourism establishments in 2014, the agency

managed to cover close to 40,000 establishments in the formal tourism economy.

Issaverdis (1998) has defined ‘tourism accreditation’ as “programs that provide a means

of establishing the extent to which a business offering tourism experiences meets industry

nominated standards. The program encourages the delivery of consistently high quality products
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and promotes continuous improvement”.

Specific favorable effects on business operations, according to David Taylor (2014),

included improved health, safety, and risk management, greater business esteem and staff
morale, and streamlining of procedural procedures. Though there are some unfavorable attitudes

regarding accreditation, such as a lack of customer and industry awareness, weak program or

government backing, and inadequacy.

In the Philippines, only Primary Tourism Enterprises (PTE) such as accommodation,

travel and tours services, Meetings, Incentives, Conventions, and Exhibitions (MICE), tourism,

ecotourism, and tourism front liners, are required under Republic Act No. 9593 (Tourism Act of

2009) to be accredited with the DOT. Secondary tourism enterprises such as hospitals, spas,

ambulatory clinics, agri-tourism sites, shopping malls and department stores, museums and

galleries, restaurants, tourism entertainment complexes, tourism recreational facilities, tourism

training institutes, restrooms, zoos, and tourism trainers may get themselves accredited

voluntarily (Arnaldo, 2020).

According to Tourism Secretary Bernadette Puyat (2020), the DOT has been hard-

pressed getting more establishments to secure accreditation because of the earlier confusing

guidelines it issued on the policy. Some enterprises also complained about the third-party
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contractors used by the DOT in evaluating the establishments.

Hence, it is included in the 2011 Executive Summary of the DOT conducted by the

Commission on Audit (COA), a few recommendations which includes (a) performing a vigorous

push to compel all tourism businesses to become accredited, both voluntarily and mandatory; (b)

encourage local governments to make DOT accreditation a requirement for the renewal or

issuance of business permits; and (c) strengthen the monitoring mechanism for compliance with

accrediting standards and regulations, as well as the penalties for non-compliance. It should also

be noted that the personnel that will evaluate the establishment are fair and does not have any

personal conflict and/or interest to and against the establishment.

as a favored travel destination in Asia. In the previous years, the country’s government stance in

developing a more sustaining tourism industry has paid off. Philippines not only became one of

the most frequently visited industry in Asia, but also provides more jobs for Filipinos regardless

of the local diversity and culture (Prosser, 2017). Hence, since tourism industry is one of the

most growing industry in the world, businesses relating to tourism products and services are

everywhere. Thus, the accreditation that the Department of Tourism (DOT) gives to these

businesses gives assurance that these establishments passed and complied with the minimum

standards set by the department.

With that, the Department of Tourism encourages tourism enterprises in the country to

apply for the accreditation to gain the following incentives and benefits aside from : (a)

Endorsement to COMELEC for exemption from liquor ban during election-related events; (b)

Endorsement to embassies and travel trade associations for utilization of establishment’s

facilities and services; (c) Being prioritized for DOT training programs; (d) Endorsement to

international and domestic airports (if appropriate) for Issuance of Access Pass to Qualified

Personnel; (e) Qualification for Exemption from the United Vehicular Volume Reduction

Program (UVVRP) of the Metro Manila Development Authority (MMDA); (f) Endorsement to

Land Transportation Franchising and Regulatory Board (LTFRB) for Issuance of Tourist

Transport Franchise; and (g) Technical / Security / Facilitation Support or Assistance.4

Furthermore, this research study aimed to understand the relevance of the tourism business

accreditation issued by the Department of Tourism to accommodation enterprises in the province

of Lanao del Norte in terms of its business performance.

Conceptual Framework
 The study will have two sets of variables, with progressive accreditation system as

the independent and its relevance to tourism businesses as the dependent variables.

The Progressive Accreditation System (PAS) is a three-level recognition scheme for

primary tourism enterprises entailing progressive minimum standards and reflecting customers’

expectations. The system aims to develop a database of primary tourism enterprises in the

country, making DOT accreditation system more inclusive and motivate stakeholders to maintain

and improve the quality of property’s facilities and services. In line with this, the DOT aims to

unify the ads for the accreditation program of DOT to further increase the number of tourists that

choose DOT accredited establishments and at the same time increase the quantity of

establishments that follow DOT standards and regulations.

Another variable, is the relevance of PAS to tourism business in terms of

performance, competitiveness, facilities and services, as well as to customer satisfaction. This

refers to the capabilities of a tourism enterprise to maximize their qualifications in order to

provide top notch operations and increase consistency with their functions. This also pertains to

the enterprise’s level regarding their system and procedures which enables them to meet

expectations, roles and responsibilities in their respected industry which will give them status

and recognition towards the tourism business industry and to the public.

Independent Variables Dependent Variables

Relevance of Accreditation

Progressive Accreditation in Terms of:

Statement of the Problem

The study was conducted to determine the relevance of accreditation to accommodation

establishments in the province of Lanao del Norte in terms of performance.

Specifically, it answers the following questions:

1. What is the accreditation level of accommodation establishments in the following

progressive accreditation system:

1.1. Registration

1.2 Regular Accreditation

1.3 Star Accreditation?

2. What is the relevance of accreditation on accommodation establishments in terms of:

2.2 Competitiveness

2.3 Facilities

2.4 Services
 2.5 Customer Satisfaction?

3. Is there a significant relationship between the level of accreditation on

accommodation establishments’ performance?

Statement of Hypothesis:

The following will be tested at 0.05 level of significance:

Ho1: There is no significant relationship between the accreditation of hotels when grouped with

profile.

Significance of the Study

This study is deemed relevant for the following reasons:

Business Owners. The result of the study will provide business owners the actual impact

of DOT accreditation program on their business. By doing so, the results will serve as their

cross-reference that will give them reason to apply for accreditation.

Managers. The outcome of the study will facilitate them to formulate efficient strategies

and approaches to improve daily operations. Also, the result may make them realize their tasks

on increasing business esteem and marketing.

Management and Employees. The result of the study will provide them relevant

information in assessing and evaluating the program. Furthermore, this will provide them

assessment on the efficiency of the program.

Tourism Business. The idea presented shall provide them additional information in

relation to operation and decision making in the organization.

Customers. This study will provide them a means of evaluation in purchasing decision

and awareness on assessing good service and quality product.

Scope and Limitation of the Study

The scope of the study focused on the accommodation businesses situated in the

province of Lanao del Norte, Philippines that has a certificate of accreditation from the

Department of Tourism and those enterprises that used to be part the accreditation program or

yet to renew their certificate. It is limited only to presently operating accommodation enterprises

and their management and employees.

The researchers will find ways on identifying these tourism businesses through the

official list of accredited tourism businesses found on the Department of Tourism’s official

website and the records from the provincial tourism office of Lanao del Norte.

Definition of Terms
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The following terms are operationally and conceptually defined for the study:

Accommodation. This refers to a place where people can live or stay especially on

vacation. It is a set of rooms or a building where someone may live or stay. It is essential for

visitors who wish to travel to another destination or go on a trip because they will always require

a place to stay.

Accreditation. It refers to the assurance that institutions and businesses undergo to

confirm that they meet strict and recognized set of service and operational standards.

Business Performance. This pertains to the business’s ability to make the best use of

resources it manages in its business activities that are closely connected with business

competencies, which help them to achieve business goals.

Department of Tourism (DOT). This is the executive department of the Philippine

government responsible for the regulation of the Philippine tourism industry and the promotion

of the Philippines as a tourist destination.

DOT Accreditation. It is a certification issued by the Department of Tourism (DOT) to a

tourism enterprise that officially recognizes it as having complied with the minimum standards

for the operation of tourism facilities and services.

National Accommodation Standards. The required standards for hotel operations set by

the DOT to check if the hotel standards may pass or fail in security, hygiene, ease and

expediency for hotel guests.

Primary Tourism Enterprises. These are facilities and services that are directly related

to tourism.

Progressive Accreditation System. This is a three-level recognition scheme for primary

tourism enterprises entailing progressive minimum standards and reflecting customers’

country, making DOT accreditation system more inclusive and motivate stakeholders to maintain

and improve the quality of property’s facilities and services.

Secondary Tourism Enterprises. This refers to all other tourism enterprises that may be

related to tourism but are not primary tourism enterprises.

Tourism. It is the activities of people traveling to and staying in places outside their

usual environment for leisure, business or other purposes for not more than one consecutive year.

Tourism Business. Pertains to the business that offers products, facilities and services

that are related to tourism.