TOURISM OPPORTUNITIES IN THE PHILIPPINES:

THE NATIONAL TOURISM

DEVELOPMENT PLAN

Pre-Plenary Budget HearingsCongress of the Philippines

September 20, 2013

0 500 1,000 1,500

Germany

UK

Malaysia

Hong Kong

Canada

Singapore

Australia

Taiwan

China

Japan

USA

Korea

Arrivals by Markets

2012 2011

International Visitor ArrivalsInternational Visitor Arrivals

Visitor arrivals In thousands

GrowthGrowthRateRate

11.5%11.5%

4.5%4.5%

9.9%9.9%

3.1%3.1%

19.1%19.1%

12.0%12.0%

7.6%7.6%

5.3%5.3%

5.9%5.9%

23.8%23.8%

8.4%8.4%

9.5%9.5%

3,000,000

3,400,000

3,800,000

4,200,000

4,600,000

2010 2011 2012

Arrivals by Year

3.5 M

3.9 M

4.3 M

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2011 2012 2013 2014 2015 2016

Projected Arrivals

KEY PERFORMANCE INDICATORSKEY PERFORMANCE INDICATORSINTERNATIONAL VISITOR ARRIVALS 2012INTERNATIONAL VISITOR ARRIVALS 2012

5.6 M

INTERNATIONAL VISITOR ARRIVALS2013 INTERNATIONAL TOURIST ARRIVALS2013 INTERNATIONAL TOURIST ARRIVALSJANUARY - JULYJANUARY - JULY

RANK COUNTRY JAN - JULY 2013 GROWTH RATE

1 KOREA 706,998 22.30%2 USA 417,904 2.72%3 CHINA 246,967 48.58%4 JAPAN 245,817 6.21%5 AUSTRALIA 118,186 11.42%6 SINGAPORE 100,334 18.10%7 TAIWAN 95,545 -30.09%8 CANADA 77,656 3.78%9 HONGKONG 76,555 12.84%

10 UNITED KINGDOM 71,088 6.75%11 MALAYSIA 62,893 4.84%12 GERMANY 41,990 5.14%13 OTHERS 536,948 7.17%GRAND TOTAL INCLUDING OTHERS 2,798,881 11.05%

Source: A/D Cards and Shipping Manifests

INTERNATIONAL VISITOR ARRIVALSAVERAGE LENGTH OF STAY (IN NIGHTS)AVERAGE LENGTH OF STAY (IN NIGHTS)

INTERNATIONAL VISITOR ARRIVALSVISITOR EXPENDITURE (IN US$)VISITOR EXPENDITURE (IN US$)

INTERNATIONAL VISITOR ARRIVALSVISITOR RECEIPTS (IN US$ MILLION)VISITOR RECEIPTS (IN US$ MILLION)

CAGR = 29.6%

CAGR = 5.2%

INTERNATIONAL VISITOR ARRIVALSDOMESTIC TRAVELLERS, 2012DOMESTIC TRAVELLERS, 2012

0.0 175.0 350.0 525.0 700.0

Negros Oriental

Clark

Iloilo City

Bohol

Davao City

Cagayan de Oro City

Batangas

Albay

Baguio City

Puerto Princesa City

Lapu Lapu City

Cebu City

Boracay Island

Metro Manila

Top Overnight Destinations(Partial as of June 2012)

Domestic

Foreign

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2008 2009 2010 2011 2012

Domestic Travellers by Year

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

2011 2012 2013 2014 2015 2016

Projected Domestic Travellers

TOTAL

974,397 19.6%

702,798 14.1%

613,279 12.3%

396,289 8.0%

359,320 7.2%

338,992 6.8%

290,845 5.9%

281,243 5.7%

200,295 4.0%

184,362 3.7%

171,823 3.5%

152,377 3.1%

151,454 3.0%

150,067 3.0%

CAGR = 6.1%

CAGR = 10.6%

40.7 M*

44.1 M

* Estimate

3. Improve institutional governance 3. Improve institutional governance and human resourcesand human resources

NTDP 2011 – 2016NTDP 2011 – 2016STRATEGIC DIRECTIONSSTRATEGIC DIRECTIONS

1.1. Develop and market competitive Develop and market competitive tourist products and destinationstourist products and destinations

NatureTourism

Cultural Tourism

Sun and Beach Tourism

Cruise and Nautical Tourism

Leisure and Entertainment Tourism

MICE & Events Tourism

Health,Wellness, and Retirement Tourism

Diving & Marine Sports Tourism

Portfolio

Education Tourism

PRODUCT - MARKET DEVELOPMENTPRODUCT - MARKET DEVELOPMENT

Main Strategy

Niche Strategy Secondary Strategy

1. Develop and market competitive 1. Develop and market competitive tourist products and destinationstourist products and destinations

2. Improve market access, connectivity 2. Improve market access, connectivity and destination infrastructureand destination infrastructure

3. Improve institutional governance 3. Improve institutional governance and human resourcesand human resources

NTDP 2011- 2016NTDP 2011- 2016STRATEGIC DIRECTIONSSTRATEGIC DIRECTIONS

INTERNATIONAL VISITOR ARRIVALSTOURISM ROAD INFRASTRUCTURE PROGRAMTOURISM ROAD INFRASTRUCTURE PROGRAM(DOT - DPWH CONVERGENCE PROGRAM)(DOT - DPWH CONVERGENCE PROGRAM)

1,390

7,920

12,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013

In Billion Pesos • Developed the Tourism Road Infrastructure Project (TRIP) Prioritization Criteria

• Endorsed for approval by the Tourism Coordinating Council 167 road projects with total of 598 kms worth P 12 Bil for FY 2013 Budget

• Organized capacity building for CTWG and RTWGs

Projected Arrivals in International Gateways - 2016

Airports Inbound Foreign

Passengers

Manila 3,631,695

Mactan – Cebu 2,483,991

Clark 1,723,222

Kalibo – Iloilo 821,806

Davao 401,381

Laguindingan 364,873

Puerto Princesa 198,327

Laoag 134,739

Others 239,966

Total 10,000,000

Airport Development and Promotion

Immigration Officers/ Equipment

Total Foreign Passengers Movement

Percent Share

7,263,390 36.3%

4,967,982 24.8%

3,466,444 17.2%

1,643,612 8.2%

802,762 4.0%

729,746 3.7%

396,654 2.0%

269,478 1.4%

479,932 2.4%

20,000,000 100%

CHALLENGES: AIRPORT AND SERVICESCHALLENGES: AIRPORT AND SERVICES

INTERNATIONAL VISITOR ARRIVALSPASSENGER TRAFFIC IN MANILA AND PASSENGER TRAFFIC IN MANILA AND SECONDARY GATEWAYS (2008 – 2012)SECONDARY GATEWAYS (2008 – 2012)

• Passenger traffic in secondary gateways experienced a growth of 8.18%, 26.15%, 26.67% and 53.89% respectively during the past 5 years

• Passenger traffic in Manila grew only by 1.37%, 9.97%, 6.28% and 6.56% respectively during the past 5 years

Source: Civil Aeronautics Board CAAP

MARKETS SEAT ENTITLEMENTS

  PH FOREIGN

Korea 1,482,000 1,482,000

Japan 1,856,400 1,856,400

China 702,000 702,000

Taiwan 522,600 522,600

Australia 312,000 208,000

Singapore 2,280,044 2,280,044

Hong Kong 1,367,600 1,367,600

Canada 109,200 109,200

Malaysia 354,640 354,640

United Kingdom 218,400 218,400

Germany 109,200 109,200

India 109,200 109,200

Indonesia 156,000 156,000

Thailand 355,680 355,680

Vietnam 312,000 312,000

     

TOTAL 10,246,964 10,042,964

ENTITLEMENT UTILIZATION

PH % FOREIGN %

1,177,800 79.47% 1,339,624 90.39%

533,624 28.75% 247,520 13.33%

617,760 88.00% 182,936 26.06%

239,358 45.80% 178,204 34.10%

250,068 80.15% 95,368 45.85%

882,544 38.71% 721,136 31.63%

958,880 70.11% 897,468 65.62%

109,200 100.00% 0 0.00%

355,680 100.29% 346,840 97.80%

0 0.00% 0 0.00%

0 0.00% 0 0.00%

99,112 90.76% 0 0.00%

147,368 94.47% 0 0.00%

313,976 88.27% 158,600 44.59%

122,304 39.20% 0 0.00%

       

5,807,674 56.68% 4,167,696 41.50%

AIR SEAT ENTITLEMENTS AND UTILIZATION AIR SEAT ENTITLEMENTS AND UTILIZATION 20122012

ESTIMATED AIRCRAFT DELIVERY OFPHILIPPINE AIR CARRIERSJanuary 2013 – March 2014

AIRCRAFT DELIVERIESAIRCRAFT DELIVERIES

AIRBUS 320 14AIRBUS 321 7AIRBUS 330 10BOEING 777 2

LuzonLuzon

1.1. South Harbor, Manila South Harbor, Manila 2.2. Poro Point, San Fernando CityPoro Point, San Fernando City3.3. Batangas Port, Batangas CityBatangas Port, Batangas City4.4. Subic Bay Freeport, ZambalesSubic Bay Freeport, Zambales

VisayasVisayas

5.5. Cagban Jetty Port, BoracayCagban Jetty Port, Boracay6. Cebu Port, Cebu City7. Iloilo Port, Iloilo City8. Catagbacan Port, Bohol

PalawanPalawan

9.9. Coron PortCoron Port10.10. El Nido PortEl Nido Port11.11. Puerto Princesa PortPuerto Princesa Port

PPA Recommended PPA Recommended Ports of CallPorts of Call

MindanaoMindanao

12.12. Davao PortDavao Port13.13. Cagayan de Oro PortCagayan de Oro Port14.14. Siargao Port, Surigao del NorteSiargao Port, Surigao del Norte

Cagban Jetty Port

INTERNATIONAL VISITOR ARRIVALSROOM PROJECTION IN 2016ROOM PROJECTION IN 2016

Destination ClustersIsland

Grouping

Northern PH

Central PH

Southern PH

Total PH

Critical Cluster Destinations

Room Demand

Available Room

In the Pipeline

Room Gap

Metro Manila & CALABARZON

54,818 37,311 7,330 10,177

Central Visayas 41,402 27,447 2,124 11,831

Bicol 15,804 8,549 130 7,125

Cordillera 9,851 6,855 106 2,890

• Manila will still need the most rooms between now and 2016

• Key demand cities outside of Manila are: Cebu, Panglao, Bicol, Cordillera

• Current accommodation development in the pipeline covers only 40% of room requirement

Room Supply(Available + Pipeline)

Available in 2012

In the Pipeline

71,804 8,206

61,978 5,129

28,922 1,686

162,704 15,021

Room Gap In Critical

DestinationClusters

16,025

20,757

570

37,352

1. Develop and market competitive 1. Develop and market competitive tourist products and destinationstourist products and destinations

3. Improve institutional governance 3. Improve institutional governance and human resourcesand human resources

STRATEGIC DIRECTIONSSTRATEGIC DIRECTIONS

PROGRAMSPROGRAMS

• Improve the Philippines ranking in the WEF Travel and Tourism Competitive Index

• Reduce business cost and improve compliance

• Implement Hotel and Resort Quality Assurance and Accreditation System (HRQAAS)

• Train 5,000 tourism workers

• Certify 500 tourism professionals under the ASEAN MRA

TRAVEL AND TOURISM COMPETITIVENESSTRAVEL AND TOURISM COMPETITIVENESS

Source: World Economic Forum

1. Switzerland1. Switzerland2. Germany2. Germany3. Austria3. Austria

138. Burundi138. Burundi139. Chad139. Chad140. Haiti140. Haiti

1. Singapore1. Singapore2. Australia2. Australia

24. Pakistan24. Pakistan25. Bangladesh25. Bangladesh

PHILIPPINES

PHILIPPINES

StrengthsStrengths WeaknessesWeaknesses

Natural ResourcesNatural Resources Protection of Foreign InvestmentsProtection of Foreign Investments

Price CompetitivenessPrice Competitiveness Starting Up a BusinessStarting Up a Business

Visa RegulationVisa Regulation Safety and SecuritySafety and Security

Air Services AgreementAir Services Agreement Health and HygieneHealth and Hygiene

Transport and ICT InfrastructureTransport and ICT Infrastructure

2013 Headline2013 Headline

PH as most PH as most improved improved country in country in

Asia and the Asia and the PacificPacific

INTERNATIONAL VISITOR ARRIVALSTARGETS, 2012 - 2014TARGETS, 2012 - 2014

INDICATORS 2012 2013 2014

International Tourism

Visitor Arrivals (mil) 4.3 5.5 6.8

Length of Stay (nights) 8.0 9.0 9.0

Average Daily Expenditure (Pesos) 4,431.0 4,914.0 5,431.0

Visitor Receipts (Pesos bil) 156.0 205.4 269.9

Domestic Tourism

Domestic Travellers (mil) 40.7 44.1 47.7

Domestic Trips (mil) 162.7 176.2 191.0

Length of Stay (nights) 4.7 4.7 4.7

Average Daily Expenditure (Pesos) 2,469.0 2,580.0 2,593.0

Domestic Receipts (Pesos bil) 1,152.0 1,298.6 1,409.2

INTERNATIONAL VISITOR ARRIVALSECONOMIC IMPACT PROJECTION ECONOMIC IMPACT PROJECTION 2012 - 20162012 - 2016

INDICATORS 2012 2013 2014 2015 2016

Gross Domestic Product

Total Visitor Receipts (Pesos bil)

1,308.0 1,504.0 1,679.1 1,957.5 2,307.1

Tourism GVA (Pesos bil) 650.8 748.3 835.4 974.0 1,147.9

Share to GDP (%) 6.2 6.7 7.0 7.8 8.7

Employment

Tourism employment (mil) 4.2 4.9 5.4 6.3 7.4

Share to National Employment (%)

11.6 13.0 14.2 16.2 18.8

Thank Thank You!You!