The impact of government failure on tourism in the Philippines.

9 shows a decreasing trend in the monthly average length of stay from January 2007 to December 2012, which includes the periods that correspond to the long-term impact of the FAA downgrade (January 2008–December 2012) and EU ban (April 2010–December 2012).

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Although the expected daily expenses of foreign visitors in the Philippines and international shocks are highly significant and have the correct sign, their impact on length of stay is trivial.

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The substantial decline in tourism receipts from 2008 to 2010 despite an increasing trend in tourist arrivals is due to the shorter stay of tourists, indicating that high-spending tourists have not returned following the downgrade and ban.

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