Tourism Overview and
Directions
2011 - 2016
HSMA General Membership Meeting
18 August 2011
Scope of Presentation
Part I - Where Are We Today?
Part II - Visitors Travel Characteristics
Part III - National Tourism Development Plan
Global tourism continuous to GROW
Forecast• Visitor decline in
1998 and 2003 have
not dampen
tourism growth
• East Asia and the
Pacific overtook
Americas as
leading destination
• UNWTO forecast
global tourism to
grow at 5%-6%
between 2010-2020
Source: World Tourism Organization (UNWTO)
• China will
dislodge the
traditional
destinations
• China, Hong Kong
and Russia as
leading
destinations
• Thailand,
Malaysia,
Singapore and
South Africa will
attract more
visitors
World’s top tourist destinations
Destinations Base Year
(million)
Forecasts
(million)
Average Annual
Growth Rate
Market Share
(%)
1995 2020 1995-2020 1995 2020
China 20.0 130.0 7.8% 3.5% 8.3%
France 60.0 106.1 2.3% 10.6% 6.8%
United States 43.3 102.4 3.5% 7.7% 6.6%
Spain 38.8 73.9 2.6% 6.9% 4.7%
Hong Kong 10.2 56.6 7.1% 1.8% 3.6%
Italy 31.1 52.5 2.1% 5.5% 3.4%
United Kingdom 23.5 53.8 3.4% 4.2% 3.4%
Mexico 20.2 48.9 3.6% 3.6% 3.1%
Russian Federation 9.3 48.0 6.8% 1.6% 3.1%
Czech Republic 16.5 44.0 4.0% 2.9% 2.8%
Source: World Tourism Organization (UNWTO)
Outbound tourism trend
2010 2020 CAGR % Share
Europe 496 729 3.9% 46.7%
Asia & Pacific 197 422 7.9% 27.0%
Americas 154 232 4.2% 14.9%
Africa 28 62 8.3% 4.0%
Middle East 26 45 2.3% 2.9%
Others 29 71 9.4% 4.6%
Total 940 1,561 5.2%
Intra regional 751 1,183 4.6% 75.8%
Long haul 188 378 7.2% 24.2%
UNWTO Regional Outbound Forecasts, 2020(million)
Source Markets 2020 CAGR
Germany 153 2.9%
Japan 142 7.5%
United States 123 2.7%
China 100 12.8%
United Kingdom 95 3.3%
France 55 3.9%
Netherlands 46 3.0%
Italy 35 3.1%
Canada 31 2.0%
Russian Federation 31 4.0%
Major Tourist Source Markets(million)
Source: World Tourism Organization (UNWTO)
Source: World Tourism Organization (UNWTO)
Philippines and global tourism
International Visitors (in million)
2010 2009
World 940.00 882.00
% PH Share 0.37% 0.34%
Asia Pacific 203.80 180.90
% PH Share 1.72% 1.66%
ASEAN 67.55 60.41
% PH Share 5.21% 4.98%
Philippines 3.52 3.01
International Visitors to ASEAN (in million)
Rank Countries 2010 2009
1 Malaysia 24.58 23.65
2 Thailand 15.84 14.15
3 Singapore 9.16 7.49
4 Indonesia 7.00 6.32
5 Vietnam 5.05 3.75
6 Philippines 3.52 3.01
7 Cambodia 2.40 2.50
Source: World Tourism Organization (UNWTO)
Source: World Tourism Organization (UNWTO)
• PH lags behind ASEAN destinations
• Viet Nam has overtaken PH
• Cambodia fast rising destination
Visitor arrivals reached 3.5 million
• Roller coaster trend -
periods of ups and
downs
• Good years - bad years
• Resiliency to external
factors/ crisis
• Difficult and hard climb
to reach 3 M
• AAGR = 5.08% in 15
years
Source markets ...
44.4% East Asia
Americas
Europe
ASEAN
OFsOceaniaOthers
20.2%
10.2%
8.4%
6.5%
5.8%4.5%
39.9%
22.8%
10.9%
8.5%
6.6%6.1%5.2%
Tourism Indicators
Indicators 2010 2009 Growth
Rate
International Visitors 3.52 M 3.01 M 16.68%
International Receipts Php 109.22 B Php 99.66 B 9.59%
Domestic Travellers 25.1 M 24.9 M 0.72%
Domestic Receipts Php 932.83 B Php 810.81 B 15.05%
Total Tourism Receipts Php 1,042.05 B Php 910.47 B 14.45%
Tourism Gross Value Added Php 518.47B Php 458.98 B 12.96%
% Share to GDP 5.76% 5.72% 0.70%
Tourism Employment 3.697 M 3.547 M 2.81%
% Share to National Employment 10.12% 10.12% 0.0%
Sources: NSCB Tourism Satellite Account and DOT Statistical Reports
Scope of Presentation
Part I - Where Are We Today?
Part II - Visitors Travel Characteristics
Part III - National Tourism Development Plan
Holiday remains the main purpose
of visit to the Philippines
• Increasing holiday trips
• Greater holiday vacation for China, Japan and Korea
• Russia, Taiwan and Hong Kong are also motivated by
holiday trips
• Substantial VFRs for USA, Australia and Canada
• Growing number of business trips from India, Japan and
Hong Kong
Independent trips is increasing
• Japan, Korea, USA, Australia and Canada are seeking
from independent trips
• China and Taiwan are vetting for more package tours
• Growing independent trips from HK, India and Russia
Repeat visits are growing
• Repeat visits rapidly expanding
• Many of Chinese, Russian, Indian, Korean
visitors are frequently visiting the Philippine
Length of stay is declining
• Length of stay dropped from 16 nights in 2007 to
8 nights in 2010
• Korea, China, Japan, Hong Kong and Taiwan
stayed between 4 to 7 nights
• Australia, USA, Canada and Russia has longer
stay
ADE grew in the last 2 years
• ADE in 2010 amounted to US$ 83.93 vs US$ 75.76 in
2009
• Korea has the highest daily spending
• USA, HK, Russia, India and Australia second biggest
spenders
• China and Taiwan spend in the range of US$ 50 per
day
Shopping, accommodation and F&B are
major items of expenditure
• Shopping accounts for the biggest bulk of
visitor expenditure, followed by
accommodation, F&B
• Korea and Japan spend more on shopping
• Australia, Hong Kong, Russia and USA spend
more on accommodation
More and more visitors are getting information from
friends and business associates
• USA, Japan, Hong Kong, Russia depend on word of
mouth from friends and pears who have visited PH
• Korea, China and Taiwan solicit info from travel agents
• Australia, Canada and India secure info from internet• USA, Australia, Canada and HK are less dependent on
travel agents for information
Tourist Arrivals in Top Destinations
2000-2010 (thousand)
Source: DOT Regional Offices/ Local Tourism Offices/ Accommodation Establishments
Top destinations included: Metro Manila, Cebu, Camarines Sur, Boracay Island, Baguio City, Davao City, Cagayan de Oro,
Zambales, Bohol, Puerto Princesa City, Camiguin Island, Cagayan, Negros Oriental, Ilocos Norte
% Share of Domestic travellers = 71.82%
% Share of Foreign travellers = 28.18%
Domestic Travellers
(million)
Source: NSCB Tourism Satellite Account
• An average Filipino travels
twice in six months for
tourism purposes
• Main purpose
• Pleasure and vacation
• VFR
• Business
• Medical
• MICE
• Average spent per day is
Php 2,212 (2010)
• Average length of stay per
trip is 4 nights
Sources: NSO and NSCB
Factors shaping tourism trends
Major Determinants of Change
New economy
Advancement in technology
Travel facilitation
Security and safety
Changing visitor demographics
Globalization – Localization
Socio-environmental awareness
New marketing techniques
Tourism Megatrends
Polarization of tourist tastes
Tourists “shrinking world”
Power of electronic technology
Fast track travel
Customers will “can the shots”
Destination as “fashion accesory”
Three Es (entertainment,
excitement, education)
More focus on destination “image”
Everyone is chasing the Asian
tourist
Consumer campaign for
sustainable tourism
Scope of Presentation
Part I - Where Are We Today?
Part II - Visitors Travel Characteristics
Part III - National Tourism Development Plan
GOAL“An environmentally and
socially responsible
tourism that delivers more
widely distributed income
and employment
opportunities”
VISION
“TO BECOME THE
“MUST EXPERIENCE” DESTINATION IN ASIA.”
22
Formulate the National Tourism
Development Plan
Strategic Directions
• Rapidly expand capacity of secondary international airports
• Strengthen compliance with international air safety regulations
• Adopt policies that facilitate entry of international carriers and via free access by growth markets
• Design and implement a strategic access infrastructure program between secondary international airports and strategic destinations
Improve market access and connectivity
• Design and implement a sustainable tourism transportation and infrastructure program in the strategic destinations
• Facilitate the development of mixed use tourism complexes and community-based tourism programs in strategic locations
• Design and implement a PPP-based mandatory tourism enterprise accreditation/ certification system
• Facilitate tourism investment, and simplify business set-up and licensing procedures
• Design/ implement a five-year PPP-based and funded marketing strategy and one-year rolling action plan targeting key growth markets
Develop and market competitive tourist destinations and
products
• Clarify institutional roles and responsibilities of DOT and LGUs and undertake LGU awareness and capacity building program
• Develop a highly competent, well motivated and productive tourism workforce
• Improve governance in the area of safety, security, and in dealing with tourists, tourism investors and tourism enterprises at the national and local levels
Improve tourism institutional,
governance and human resource
capacities
Why are we underperforming?
AccessDestinations & Products
Promotions
Estimated Maximum Capacity
VS. Actual Arrivals
(MM Foreign Arrivals / year)
Arrivals
4.2
Note: 1The capacity is estimated based on the theoretically
maximum number of international arrivals in 2008;
Sources: DOT, REID
Max Arrivals
1
Airport Utilization Rate
(Passenger Movements)
No. of Intl Scheduled
Flights 2010810
Seats/wk 197,000
Total seat capacity
utilization65%
Airport2010 Ave.
Utilization
Manila 94%
Terminal 1 162%
Terminal 2 119%
Terminal 3 62%
Old
Domestic57%
DMIA 33%
Cebu 141%
Davao 133%
Laoag 18%
Tourism related infrastructure capacity is
already constrained and tightening
No. of Domestic
Scheduled Flights
2010
3,000
Seats/wk 348,000
Total seat capacity
utilization82%
Enhancing access
• Air– More seats, lower airfares
– Exchange reciprocal traffic rights (e.g.
Malaysia-PH Air Talks and the China
market)
– Direct flights to priority nine cluster
destinations
• Land
– Airport and tourism destination/
service centre connectivity
– Last mile access to tourism attractions
Developing the gateway airports
Ninoy Aquino International Airport
Runway and Terminal Congestion
Safety issues
Rationalize airport operations
Clark Airport Expansion
On-going terminal expansion
Need for clear policy with definite timeline
for roles of NAIA and Clark
27
Why are we underperforming?
AccessDestinations & Products
Promotions
21 Inclusive TourismCluster Destinations
10 Priority ClusterDestinations with 39 TDAs
Ilocos Norte
Central Luzon
Metro Manila and CALABARZON
Bicol Region
Palawan
WesternVisayas Central
Visayas
Zamboanga Peninsula
Northern Mindanao
Davao
Laoag – Vigan Tourism Cluster
Laoag International Airport
Tourism Development Areas:
TDA 1 - Laoag – PagudpudTDA 2 - Vigan
Theme:
Beach Resort, historic heritage, ecotourism, events
Destination and Product Development
Tourism Enterprise Zones in Pagudpud and Laoag
Improvement to 9 heritage sites (Php 141 Million)
Linking communities to tourism supply chain
Development Impact
2010: 34,000 jobs
2016: 29,000 additional jobs
Central Luzon Tourism Cluster
Clark International Airport
Tourism Development Areas:
TDA 1: Subic – Clark –Tarlac Corridor
TDA 2: Nueva EcijaTDA 2: PampangaTDA 4: BulacanTDA 5: ZambalesTDA 6: BataanTDA 7: Aurora
Theme:
Entertainment/amusement, sports, beach resort, events, MICE, ecotourism, wellness, medical and retirement tourism
Destination and Product Development
Mixed used resorts in Clark, Zambales, Subic
Improvement to 16 heritage sites (Php 140 Million)
Linking communities to tourism supply chain
Development Impact
2010: 72,000 jobs
2016: 75,000 additional jobs
Metro Manila and CALABARZON
Tourism Cluster
Ninoy Aquino International Airport
Tourism Development Areas:
TDA 1: Metro Manila andEnvirons,
TDA 2: Nasugbu-Looc-Ternate-Cavite
TDA 3: Laguna de BayTDA 4: BatangasTDA 5: Quezon
Theme:
MICE, Business, Resort, history, medical, and wellness, events, sight seeing, entertainment, shopping
Destination and Product Development
Tourism Enterprise Zones in Manila Bay and Batangas
Improvement to 15 heritage sites (Php 396 Million)
Linking communities to tourism supply chain
8,100 additional rooms needed (2011-2016)
7,700 planned or under construction
Development Impact
2010: 632,000 jobs
2016: 386,000 additional jobs
Bicol Tourism ClusterBicol International Airport
Tourism Development Areas:
TDA 1: Camarines and CatanduanesTDA 2: Albay-Sorsogon-Masbate
Theme:
Resort, marine, ecotourism, water sports, MICE
Market Access and Connectivity
Complete New Bicol International Airport
Destination and Product Development
Tourism roads with DPWH and DBM in national budget
P120 M for 3 projects for 2012
Improvement to 4 heritage sites (Php 105 Million)
Linking communities to tourism supply chain
Development Impact
2010: 181,000 jobs
2016: 183,000 additional jobs
Palawan Tourism ClusterPuerto Princesa International Airport
Tourism Development Areas:
TDA 1: Puerto PrincesaTDA 2: San Vicente-El Nido-TaytayTDA 3: Southern Palawan
Theme:
Coastal Island resort, ecotourism, sightseeing, MICE, adventure
Market Access and Connectivity
New Terminal and Taxiway in Puerto Princesa Airport
Destination and Product Development
Tourism Enterprise Zones in Puerto Princesa, San Vicente and El Nido
Tourism roads with DPWH and DBM in national budget
P1.38 B for 7 projects for 2012
Improvement to 6 heritage sites (Php 140 Million)
Linking communities to tourism supply chain
Development Impact
2010: 28,000 jobs
2016: 84,000 additional jobs
Western Visayas Tourism ClusterIloilo International AirportKalibo International Airport
Tourism Development Areas:
TDA 1: Bacolod-SilayTDA 2: Iloilo-GuimarasTDA 3: Boracay-Northern Antique
Theme:
Coastal and island resort, ecotourism, marine sports, events, MICE
Market Access and Connectivity
Complete Kalibo Airport upgrade
Provide international terminal service at Iloilo Airport
Destination and Product Development
Tourism Enterprise Zones in Iloilo, Guimaras and Bacolod
Tourism roads with DPWH and DBM in national budget
P1.27 B for 11 projects for 2012
Improvement to 8 heritage sites (Php 179 Million)
Linking communities to tourism supply chain
4,504 additional rooms needed (2011-2016)
Development Impact
2010: 194,000 jobs
2016: 150,000 additional jobs
Central Visayas
Tourism ClusterMactan - Cebu International Airport
Tourism Development Areas
TDA 1: Northern Cebu-Bantayan-Malapascua
TDA 2: Metro Cebu-Mactan-OlangoIsland
TDA 3: Southern CebuTDA 4: Negros Oriental-
Dumaguete-SiquijorTDA 5: Tagbilaran-Panglao
Island
Theme
MICE, Business, resort, history, events, sightseeing, entertainment, shopping, ecotourism
Market Access and Connectivity
Cebu terminal expansion and runway improvement
Gateway marketing program (e.g. World Routes)
Seamless connection from Mactan Airport to tourism
development areas
Tourism roads with DPWH and DBM in national
budget
P2.86 billion for 24 projects for 2012
Tagbiliran terminal expansion
Need for a Bohol gateway
Destination and Product Development
Tourism Enterprise Zones in Cebu and Panglao
Improvement to 17 heritage sites (Php 500 Million)
Linking communities to tourism supply chain
7,000 rooms needed (2011-2016)
5,000 rooms planned or under construction (2011-2016)
Development Impact
2010: 287,500 jobs
2016: 233,000 additional jobs
Zamboanga Peninsula Tourism Cluster
Zamboanga International Airport
Tourism Development Areas:
TDA 1: Zamboanga SibugayTDA 2: Zamboanga City-Sta.
Cruz-IsabelaTDA 3: Pagadian City-Zamboanga
del SurTDA 4: Dapitan-Dipolog
Theme:
Resort, marine sports, events, sightseeing
Destination and Product Development
Tourism Enterprise Zones in Dipolog and Dapitan
Improvement to 11 heritage sites (Php 169 Million)
Linking communities to tourism supply chain
Development Impact
2010: 61,000 jobs
2016: 14,000 additional jobs
Northern Mindanao Tourism Cluster
Cagayan de Oro International Airport
Tourism Development Areas:
TDA 1: Camiguin IslandTDA 2: Cagayan de Oro City-
Misamis OrientalTDA 3: Iligan City-Lanao del
NorteTDA 4: Misamis OccidentalTDA 5: Bukidnon
Theme:
Island resort, marine sports, history, sightseeing, events, ecotourism, adventure, business, MICE, entertainment
Market Access and Connectivity
Laguindingan Airport PPP for O&M
Destination and Product Development
Tourism Enterprise Zone in Laguindingan
Improvement to 8 heritage sites (Php 50 Million)
Linking communities to tourism supply chain
Development Impact
2010: 188,000 jobs
2016: 78,000 additional jobs
Davao Gulf and Coast Tourism Cluster
Davao International Airport
Tourism Development Areas:
TDA 1: Davao City-Samal Island-Davao del Norte
TDA 2: Davao del SurTDA 3: Compostela Valley-
Davao Oriental
Theme:
Island Resort, marine sports, history, sightseeing, events, ecotourism, adventure, business, MICE, entertainment
Market Access and Connectivity
Marketing of airport as international gateway
Destination and Product Development
Tourism Enterprise Zones in Sta Ana Wharf and Samal Island
Improvement to 2 heritage sites (Php 20 Million)
Linking communities to tourism supply chain
Development Impact
2010: 113,000 jobs
2016: 38,000 additional jobs
Product Portfolio
Nature based
Tourism
Cultural Tourism Sun and Beach
Tourism
Cruise Tourism
Shopping, Leisure
and Entertainment
MICE Health and
Wellness
Nautical Tourism
Why are we underperforming?
AccessDestinations & Products
Promotions
Promotions
Roll out new branding
Collaterals customized and product
specific to each market
Extensive use of New Media
PPP marketing programs
Marketing budget
• PH US$ 10 M, Malaysia US$ 80 M,
Thailand US$ 75 M
• Potential sources not released
(US$ 35 M from both PAGCOR and
airports)
Marketing Expenditure, 2007-2016
In US$ thousand
Source: General Appropriations, DOTCoverage: International and domestic
International and domestic tourism promotions budget has not changed significantly over the past 5 years
2016
6.6 M international
arrivals
34.8 M domestic
travelers
PhP1,759 B in total
expenditure
6.78% of GDP
6.5 M employment
2010
3.5 M international
arrivals
27.9 M domestic
travelers
PhP1,042 B in total
expenditure
5.76% of GDP
3.6 M employment
NTDP Targets
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