Building Competitive Destinationsby Enabling the Local Tourism Sector

Randi Alampay, Ph.D.LED Program Managerralampay@lgsp-led.ph

Building Competitive Tourist Destinations by Enabling the Local Tourism Sector

• Focus on the destination for local economic development

• Destination development = local tourism industry development

• Destination competitiveness

All tourism is local.

Subic Kota Kinabalu

Paris PhuketBoracay

Bali

Chinatown Osaka

DGT

Allah ValleyMNL

SINTYO

The interaction between visitors and hosts happens at the local level.

The real benefits of tourism are felt at the local level...

The costs of tourism are also experienced at the local level.

The demand for tourism services is derived from the demand for the locality.

That is why our approach to economic development through tourism is based on building competitive tourist destinations

We can define our destinations as tourism circuits

The tourism circuit explains the destination in terms of how tourists experience (could experience) the place.

Where most of them will stay...

How tourists get to the destination...

... the things that will do, the attractions they will see, and the other sites they will visit from the place they will be

staying in

The circuit’s transportation

gateways and their links to other

destinations help define where the

SOURCE MARKETS for our LGUs can come

from

The circuit’s tourist attractions and products help define which ACTIVITY-BASED SEGMENTS

the LGUs can target and position for.

LGSP-LED: What we do.

Local Governance Support Program for Local Economic Development (LGSP-LED)

8-year program (2008-2016) between Canadian and Philippine governments

Implemented through DILG with a Canadian Executing Agency

Assisted 134 LGUs in 9 Regions covering 17 Provinces

Our Current ProjectsPalawan

Albay - Sorsogon

Negros Occidental

Iloilo

Aklan-Antique

Negros Occidental

Negros Oriental

Siquijor

Cebu

Davao del Norte

3 Batches of Local Projects since 2009.Currently working in 9 TDAs involving 11 Provinces

Increased investments and employment in the destination

Make the destination more attractive/competitive for investors and local business community

Increase visitor arrivals and length of stay

(MARKET OPPORTUNITIES)

Ensure necessary infrastructure

(ACCESS and SUSTAINABILITY)

Ensure business-friendly and tourism-supportive LGU

(ENABLING ENVIRONMENT FOR INVESTMENT)

Marketable products

(attractions & activities)

Quality human resources

Enabling policies and programs, inc. dest’n marketing

Support Institutions

The Goal

The Challenge

Need to strengthen the private sector and market-orientation of our LED model, to better achieve these

investment and employment goals.

Defining the destination as a

tourism circuit or TDA, highlights the inter-relationships and common tourism

opportunities among the municipalities in

the cluster.

By mapping the tourism circuit and assessing the key tourism sites in it, LGUs and their private sector partners can identify –

and locate -- the opportunities for generating jobs and investments in the destination.

The tourism circuit helps identify how the LGUs in a destination are linked together as a tourism

value chain. LGUs can be host communities for tourists and/or supplier

communities for the tourism industry in this

value chain.

Where are the poor in relation to the employment, livelihood, and income opportunities in and around the tourism sites?

The tourism circuit approach to destination planning allows for more inclusion and protection of vulnerable groups.

Laying the tourism value chain on top of the tourism circuit, allows the LGUs to visualize

HOW and WHERE to support their industry partners.

The challenge of tourism circuit development for LGUs is to enable and

support the growth and expansion of the tourism industry around the

natural and cultural sites (places) of the destination.

Local Tourism Planning to Enable Destination Competitiveness.

What should LGUs focus on?

The Travel and Tourism Competitiveness Index*

Enabling Environment

Business Environment

Safety and Security

Health and Hygiene

Human Resources and Labour Market

ICT Readiness

T&T Policy and Enabling Conditions

Prioritization of Travel & Tourism

International Openness

Price Competitiveness

Environmental Sustainability

Infrastructure

Air Transport Infrastructure

Ground and Port Infrastructure

Tourist Service Infrastructure

Natural and Cultural Resources

Natural Resources

Cultural Resources and Business Travel

* - the set of factors and policies that enable the sustainable development of the Travel & Tourism sector, which in turn, contributes to the development and competitiveness of a country.** PH is #74 out of 141

The Travel and Tourism Competitiveness Index*

Enabling Environment

Local Enabling Implications

Business-friendly LGU

Ensuring availability of quality human resources through workforce development

Public or PPP investments in clean water supply, sanitation, electricity supply, and broadband Internet

Business Environment

Safety and Security

Health and Hygiene

Human Resources and Labour Market

ICT Readiness

T&T Policy and Enabling Conditions

Local Enabling Implications

Prioritization of tourism as a sector – LGU tourism office– Destination marketing– Tourism development plan– Etc.

Public or PPP investments in wastewater treatment and other infrastructure to protect tourism sites and resources

Policies and programs for the protection of threatened species

Prioritization of Travel & Tourism

International Openness

Price Competitiveness

Environmental Sustainability

Infrastructure

Local Enabling Implications

Public or PPP investments in transportation infrastructure and transport services, and other visitor utilities

– Airports and no. of operating airlines– Roads/railroad infrastructure– Port facilities– Ground transportation network

Promotion of investments in tourist infrastructure

– Hotel rooms– Car rental companies– ATMs accepting credit cards

Air Transport Infrastructure

Ground and Port Infrastructure

Tourist Service Infrastructure

Natural and Cultural ResourcesLocal Enabling Implications

Support for development and enhancement of natural/cultural attraction sites and associated tourist activities

Online marketing “buzz” and tourism branding

Investments in attraction site infrastructure (e.g. renewable energy sources, water, and other utilities)

Local policies for the protection of natural and cultural heritage

Investment promotion for MICE facilities

Natural Resources

Cultural Resources and Business Travel

LED-ENABLING POLICIES, PROGRAMS, STRUCTURES, and LGU MANAGEMENT SYSTEMS

DEVELOPMENT AND ENHANCEMENT OF THE DESTINATION’S TOURISM PRODUCT to create

competitive enterprises (e.g. attractions, activities, accommodations, and visitor amenities) and

encourage business investments in and around the key sites of the destination/circuit.

INFRASTRUCTURE INVESTMENTS to improve access and promote sustainable site development

DESTINATION MARKETING to increase visitor

arrivals and encourage

longer stays along the

tourism circuits.

LGU Tourism Planning for Destination Competitiveness

POINTS TO PONDER

Holistic approach to destination development.Don’t forget the software.

Destinations are most often defined by tourists. What destination is our LGU part of?

What tourism opportunities arise from being part of that destination/circuit?

Build destinations. Not just sites.Enable the private sector to strengthen and

extend the tourism value chain.

Four Pillars of Destination Competitiveness:

1) Business-friendly LGU environment, 2) Support for tourism sector, 3) Infrastructure, 4) Sustainable development of quality tourism product

Thank you very much