Probing the Readiness of Philippine Tourism Enterprises for RCEP and CPTPP

Amid various trade agreements that define trade rules and commitments for economies globally, the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have emerged as the largest and most forward-looking agreements. The combined impact of these agreements is expected to promote deeper integration of member economies, resulting in sustained economic growth. However, these agreements also present threats, such as increased inequality and stiffer competition for local industries. Given these opportunities and threats to member economies, it is crucial to examine the readiness of enterprises for liberalization, especially in less developed economies like the Philippines. This study focuses on the Philippine tourism industry, given its economic significance. It underscores the continuously expanding economic role of tourism, identifies opportunities and threats, and assesses the readiness of tourism enterprises for trade liberalization. To address the research question of how tourism enterprises can prepare for the impacts of trade liberalization brought about by RCEP and CPTPP, a qualitative triangulation approach involving document reviews, key informant interviews, and focus group discussions was employed. The findings indicate that both trade agreements offer limited opportunities for tourism enterprises to participate in liberalization, as they are constrained by issues of mutual recognition and standardization of skills. These findings aim to evaluate the current status of tourism within the context of ongoing developments in the international economic environment.