Presented by:

DOMINGO RAMON C. ENERIO III Assistant Secretary, Department of Tourism

Officer-in-Charge, Tourism Promotions Board

% Difference: -9.8% 7.6% -1.3% 20.1% 14.5% 8.4% 8.7% 1.5% -3.9%

16.7%

1.797

1.933

1.907

2.291

2.623

2.843 3.092

3.139

3.017

3.520

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Visitor Arrivals to the Philippines (in millions) Source: DOT – TRSD Reports: A/D Cards, Shipping Manifest

Decrease of visitors are

manifested in years of

international crises

10-Year Average Growth of

9.6%

And for the past 5 years, an

average of 4.8%

Tourism Promotions Board

Rank Country 2010 % Share

1 KOREA 740,622 21.04

2 USA 600,165 17.05

3 JAPAN 358,744 10.19

4 CHINA 187,446 5.32

5 AUSTRALIA 147,469 4.19

6 TAIWAN 142,455 4.05

7 HONG KONG 133,746 3.80

8 SINGAPORE 121,083 3.44

9 CANADA 106,345 3.02

10 UNITED KINGDOM 96,925 2.75

11 MALAYSIA 79,694 2.26

12 GERMANY 58,725 1.67

* Overseas Filipinos 228,445 6.49

Source: DOT – TRSD Reports: A/D Cards, Shipping Manifest Philippines Major Markets, 2010 source: DOT-TRSD Report

Philippine Visitor Receipts (in US$ millions)

1500 1700 1900 2100 2300 2500 2700 2900 3100

2005

2006

2007

2008

2009

2010

2236.05

2753.12

2957.08

2428.68

2235.92

2490.23

% Inc/Dec

11.37%

- 7.94%

- 17.87%

7.41%

23.12%

Tourism Promotions Board

Average Daily

Expenditure of tourists:

US$ 83.93

Activities:

Shopping 27%

Food/Beverage 27%

Accommodation 23%

Entertainment

and Recreation 16%

Average length of stay:

8.01 nights

(Source: A/D card, Shipping Manifest & VSS)

Tourism Promotions Board

Visitor Profile (2010)

Visitor Profile &

Travel Characteristics 2010

Source: DOT – TRSD Reports: A/D Cards, Shipping Manifest, VSS

Average Daily Expenditure = US$ 83.93

Shopping

23.0727%

Accommodation

19.3123%

Food/Beverage22.5127%

Entertainment and Recreation

13.75

16%

Local Transport

3.044%

Guided Tours0.671%

Miscellaneous1.532% Visits to Attractions

0.050%

TOP 10

ACTIVITIES

UNDERTAKEN

IN THE PHILS.

(2010) Source: VSS Jan – Dec 2010

Tourism Promotions Board

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TOURISM CHARACTERISTIC INDUSTRIES 2,566 2,724 2,799 2,940 3,077 3,136 3,217 3,359 3,415 3,550

Hotels and Similars 70 76 79 86 92 98 101 103 109 115

Restaurants and Similar 541 592 614 665 714 763 785 804 845 894

Passenger Transport 1,085 1,157 1,181 1,262 1,326 1,339 1,356 1,419 1,415 1463

Travel Agents, tour operators and tourism guides 115 124 126 127 137 142 163 172 177 179

Recreation, entertainment and cultural services 240 245 250 265 278 258 267 310 309 309

Retail trade on tourism-charactersitic goods 179 205 219 219 229 240 245 248 252 263

Miscellaneous 336 325 330 318 301 297 300 302 309 327

TOTAL EMPLOYMENT IN THE PHILIPPINES 28,294 29,154 30,062 30,627 31,611 32,312 32,962 33,564 34,089 35,060

Share to Total Employment 9.07% 9.34% 9.31% 9.60% 9.73% 9.71% 9.76% 10.01% 10.02% 10.13%

Source of data: Labor Force Survey

National Statistics Office (NSO)

In thousand persons

EMPLOYMENT IN TOURISM INDUSTRIES, 2000 - 2009

Tourism Promotions Board

Domestic Travellers (in millions)

14.59

16.93 15.91

17.29

20.22

24.63 25.11

30.17

24.91 25.1

27.91

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• 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

2,212.00 (2010)

Sources: NSCB Tourism Satellite Account and NSO

Tourism Promotions Board

Target: 6.3 Million Visitors by 2016 Double visitor arrivals and receipts as well as

generate additional 3 million jobs in 5 years

Arrivals Receipts Jobs

2016 6.3 Million $4.5 Billion 7.7 Million

2010 3.5 Million $2.4 Billion 3 Million

2011 3.74 Million $2.67 Billion 4.57 Million

Tourism Promotions Board

Target Tourist Arrivals for 2011 – 2016 in millions

3.02

3.52

3.38

3.744.16

4.67

5.19

5.72

6.36

0

1

2

3

4

5

6

7

2009 2010 2011 2012 2013 2014 2015 2016

Target Arrivals (2010 released)

ActualArrivals

2011 Adjusted Target Arrivals

The Philippines is the “must experience” destination in Asia

Tourism Promotions Board

GDP

Contribution

2011 Increase

per annum 2021

(Projection)

Direct

Contribution

P 326.5 B (3.4% of Total GDP)

6.4% P 606.2 B (3.9% of Total GDP)

Total

Contribution

P 1,094.7 B (11.4% of Total GDP)

6.0% P 1,955.8 B (12.6% of Total GDP)

Economic Impacts of Tourism

to the Philippine Economy

With the doubling of arrivals, tourism receipts are likewise

expected to double within the next 10 years

Tourism Promotions Board

3.52 million foreign

tourists in 2010

4.8% average growth rate

over 5-year period

US$2.49 billion in 2010

in tourist expenditures

11.3% increase over 2009 of USD 2.23

Billion

Tourism Promotions Board

SUSTAINED GROWTH IN FOREIGN VISITORS

AND TOURIST EXPENDITURES

Inherent:

Located in the fastest growing

region in the world, at the

crossroads of Asian and

international trade

- convenient access from and to major

international cities and the 550 Million-

strong ASEAN Market

- proximity to other regional hubs such

as Hong Kong, Seoul, Singapore

Shanghai and Tokyo, which provide

numerous travel options

Tourism Promotions Board

Comparative Advantage

of the Philippines

Tourism Promotions Board

Diverse and World Class

Destinations

Nature at its best, although one is able to swim with

the world’s largest mammal: the whale shark,

or play with the world’s smallest primate: the tarsier;

Adventure, although our Bicol region is the site for

television’s popular Survivor series, Amazing Race, etc.;

Culture – where West was assimilated into East

and emerged as the only Latin country in Asia;

Shopping in the region’s largest malls or tightest flea markets.

Population:

- one of the largest English-speaking countries in the world;

fluent in English, which is popularly used as medium for

communications, commerce and education

- renowned worldwide for warmth and hospitality

- open to inter-cultural exchange and adaptable to universal

and western cultures

Tourism Promotions Board

Comparative Advantage

of the Philippines

Population:

- Young and highly educated; 94.6 % literacy

rate, with 405,000 University/ College

graduates per year

- 37.89 Million-strong labor force, highly

qualified, skilled in global communication

and technical talent; well trained manpower

with fast learning curve; disciplined, with

strong customer service orientation and

high level of commitment and loyalty;

exported and sought worldwide, but can be

harnessed in local service economy

- has a dynamic and progressive business

outlook, and high-level of commitment and

loyalty

Tourism Promotions Board

Comparative Advantage

of the Philippines

has new civil aviation policy regime that will lead to greater

air access

ideally placed to participate in high-demand services such as

Business Process Outsourcing (BPO)

has a government that identified tourism as a priority

undertaking, encouraging tourism investments, and

aggressively supporting heavy investment in

infrastructure development and marketing activities

Tourism Promotions Board

Comparative Advantage

of the Philippines

Tourism Promotions Board

Infrastructure and

Telecommunications Network

• Extensive Infrastructure Expansion and

Support

• Established Telecommunications

Systems and Networks

• Completely deregulated industry

• International connectivity and

expanding multi-media

infrastructure

• Fiscally empowers TPB as the tourism investments

promotion arm

The Philippine Tourism Promotions Board (TPB), to bring

a greater awareness of the Philippines as an attractive tourist

investments destination.

Tourism Promotions Board

TOURISM ACT OF 2009 (RA 9593)

• Creates a tourism investment monitoring agency

The Tourism Infrastructure and Enterprise Zone

Authority (TIEZA), to generate new investment in the tourism

sector by granting fiscal and other incentives.

BOI and PEZA have been the 2 agencies responsible for bringing in tourism

investments. Because of the Tourism Act of 2009, investors can also look to

TIEZA now as a specialized agency dedicated to the tourism sector.

TIEZA goes further than BOI & PEZA by recognizing the peculiar needs of the

tourism industry – offering the same non-fiscal incentives in terms of:

- providing special visas

- assuring investment repatriation

- protecting investments from government expropriation

- facilitating investments through a one-stop-shop process to cut down on the

bureaucracy and red tape

- 6-year income tax holiday, compared to 4 years for BOI and PEZA - tax holiday is extendable by up to 6 more years for substantial expansions or

upgrades in facilities and services

- after the income tax holiday period, the investor has the option to be taxed on

gross income

- also available is a special social responsibility incentive, which will be a tax

credit of up to 50% of expenses on environmental protection, heritage

preservation, or sustainable livelihood programs for host communities.

- also to assist locators with local issues concerning their host communities

Tourism Promotions Board

TIEZA

Tourism Promotions Board

Tourism Business

Investment

Opportunities

Tourism Promotions Board

Tourism Investment

Areas

PRIME TOURISM ACTIVITIES

GEOGRAPHICAL DESTINATIONS

Retirement

Meetings, Incentive Travel, Convention,

Exhibition/Event (MICE)

Medical Tourism (Healthcare and Wellness)

General Tourism Investments

Value Proposition:

• World-class medical healthcare services

which are some of the best in Asia.

• Abundance of highly qualified English

speaking medical workers sophisticated

private hospitals and competitive pricing of

medical services.

Tourism Promotions Board

• Filipinos have a genuine compassionate nature

• Our doctors and nurses are among the country’s most successful overseas

workers – our care givers are known for the Filipino brand of “tender loving care”.

• The Philippine medical tourism program also includes traditional and alternative

healthcare services.

MEDICAL TOURISM (Healthcare & Wellness)

We have some of the world’s best but affordable spa

retreats and wellness resorts. A number of these have

entered into joint venture with foreign investors,

including a popular resort that offers holistic and

alternative treatment in a lush tropical farm setting.

Tourism Promotions Board

MEDICAL TOURISM

These are all complemented with eco-tours, adventure

tours, and cultural tours.

The Philippines is an ideal Southeast Asian Retirement

island-country offering an attractive blend of the following:

• Warm weather / Tropical climate

• Low cost of living

• Qualified, English-speaking and caring medical professionals

• Trained care-givers with the Filipino touch

• World-class medical / health facilities and services

• Good accessibility and telecommunications access

• Less stressful environment and helpful community

• Religious tolerance

• a popular destination with rising tourist arrivals

Tourism Promotions Board

“Retire twice as rich and five times happier in the Philippines”

RETIREMENT VILLAGES

Luzon

• Club Amore, Cavite

• Canyon Woods, Tagaytay

• Hacienda San Benito, Batangas

• Chateau Royale Sports & Country Club,

Batangas

• Poco a Poco Condotel, Olongapo

• Subic Homes, Olongapo

• Subic Holiday Villas, Olongapo

Visayas

• Kiener Hills Mactan Condominium, Cebu

• Marco Polo Residences, Cebu

• Citylights Gardens, Cebu

Mindanao

• Linmarr Towers, Davao

Tourism Promotions Board

Retirement Villages / Facilities

Metro Manila • Bay Gardens, Roxas Blvd.

• 8 Newport Boulevard, Pasay

• One, Two and Three Central, Makati

• Oriental Garden (Lilac Tower), Makati

• The Grand Midori, Makati

• The Koncord, Makati

• Park Terraces, Makati

• Riverview Mansion, Binondo

• 168 Residences, Binondo

• City Place, Binondo

• ADB Avenue Tower, Pasig

• BSA Twin Towers, Pasig

• Eton Emerald Lofts, Pasig

• The Capital Towers, Quezon City

• Pacific Century Tower, Quezon City

Source: Philippine Retirement Authority (PRA)

Value Proposition:

Tourism Promotions Board

Meetings Incentive, Conventions, Exhibitions/Events (MICE) delegates spend more

than the average tourists due to extended multi-destination trips before and/or after

the event (pre/post tours):

Visitors Average

Daily Expenditure

Regular Tourists US$ 83.93

M.I.C.E. Delegates US$ 759.00

As such, MICE events create a huge multiplier contribution on expenditures of

every convention or exhibition to other downstream industries like hotels, F&B,

transport, promotions, equipment rentals, project staffing.

Furthermore, tradeshows and conventions also usually have an exhibition

component which contribute additional spending to the local economy.

M.I.C.E. FACILITIES

MICE Visitor Profile:

Industry professionals / service providers and their clients:

• Airlines, Hotels / Resorts, Health Resorts & Spas, etc.

• Meeting Planners / Conference Organizers

• Convention / Visitor Bureaus

• Destination / Event Management Companies

• Incentive House / Agencies

• Trade Associations

• Venue Owners

• Marketing Services Companies

• Consulting Companies

• Press / Media

• Tour Operators, Travel Agencies

• Group Travel Organizers

• Tourist Attraction & Entertainment Providers

• Business Travelers

• Wholesalers

Tourism Promotions Board

M.I.C.E.

Market Opportunity:

Asia has become the most sought after location for M.I.C.E. With

its Asian neighbours, the Philippines is expressing its desire to join

the race and to receive the share in its rewards.

The current infrastructure boom in the country can support a new

M.I.C.E. industry resurgence...

Yet we are still lacking in new, larger and more advanced MICE

venues and facilities that can accommodate large-scale

conventions and events under one roof.

Tourism Promotions Board

M.I.C.E.

Tourism Promotions Board

HOTELS / RESORTS

Tourist resorts are expected to be popular among foreign property

investors due to the following:

• relatively low prices

• guaranteed annual income

HIGH-END RESORTS •VIP Tourist with special needs •High-end lodging options •Cutting-edge facilities

POPULAR RESORTS •General Tourists •Affordable lodging facilities •Eco-lodges

MARINE RESORTS Marine Resort = Breathtaking View of Open Sea + Marine Sports Activities

Tourism Promotions Board

Golf Resorts

Source Markets: USA, Korea, Japan, HK, Canada

Competitive Advantage

- world class golf courses with de luxe and first

class accommodation facilities

- spa and wellness facilities nearby golf areas

- light activities (e.g. shopping, side trips to other

leisure destinations)

Golf represents the largest sports-related travel market. It has

been valued at US$20 Billion, with over 50 million golf tourists

travelling the world to play on some of the estimated 32,000

courses.

Tourism Promotions Board

Culture and Entertainment Zones

Competitive Advantage:

- Rich and colourful history

- Vibrant traditional culture and heritage

- Strong tradition of arts and crafts

- Presence of culinary tradition / Local restaurants

- Distinct local lifestyle

Growth propelled by:

-Popularity of outdoor activities for family

-Demand for mass entertainment

The trend now is to integrate theme parks

with hotel, housing facilities / condotels,

entertainment centers, e.g. Disneyland, Lotte

World, Universal Studios, among others.

US$ 29.5 B market demand by 2015

Theme Parks

Tourism Promotions Board

Source Markets: Korea, Taiwan, Japan, China

Competitive Advantage:

- ESL and other degree courses for foreign students

- Language learning institutions accredited by BI and DOT

- Light adventure and sightseeing activities

- Availability of professional and qualified teachers

Education Tourism (ESL, etc.)

Training Centers / Institutes

Tourism Promotions Board

GEOGRAPHICAL DESTINATIONS:

Potential Tourism Business Investment Sites

• Agriculture: Laguna, Bukidnon, Cordillera, Bacolod, Benguet

• Arts and Crafts: Cebu, Laguna, Rizal

• Culinary: Pampanga, Bacolod, Ilocos, Zamboanga, Bicol

• Festival: Aklan, Cebu, Iloilo, Davao, Quezon, Baguio, Marinduque

• Health and Wellness: Batangas, Tagaytay, Pampanga

• Heritage and Culture: Taal/Batangas, Iloilo, Bacolod

• Language / Educational: Manila, Subic, Cebu, Tagaytay, Bicol,

Zambales, Baguio

• Nature Based: Bohol, Zambales, Baguio, Dongsol/Sorsogon,

Sagada/Benguet,

Pangasinan, Palawan, Antique

• Sports and Adventure: Batanes, Davao, Bohol, Camarines Sur,

Siargao

• Sun and Beach Tourism: Guimaras, Camiguin, Pagudpud

Tourism Promotions Board

Latest Tourism Business

Investment / Development Projects

SM BAY CITY ARENA

Currently under construction, this will be the newest structure at

the Mall of Asia (MOA) complex, where large events like

concerts, circus, ice shows, and other sports and entertainment

events can be held.

~ Seating Capacity: 15,000

~ Target Date of Completion: 2012

COMING SOON

Tourism Promotions Board

COMING SOON ASEANA BUSINESS PARK

Also known as Central Business Park One,

ASEANA Business Park is a Flagship

National Government Project being

implemented by the Philippine

Reclamation Authority (PRA) along the

Build Operate Transfer (BOT) scheme and

pursuant to existing special laws and

Executive Orders.

PRA has partnered with R-1 Consortium to

reclaim and develop approximately 204

hectares of land along Manila Bay.

The master plan includes a PAGCOR City, plus Alphaland Bay City which will

feature a complete array of real estate products ranging from high-end residential

units, office clusters, a marina and yacht club, retail strip, and a retirement

community.

Tourism Promotions Board

COMING SOON

GRAND HYATT HOTEL AT THE FORT

Federal Land is now constructing the

66-storey skyscraper at the heart of

Fort Bonifacio. Its first 25 floors will

house the Grand Hyatt Hotel (500 to

600 rooms).

THE SHANGRI-LA AT THE FORT

Target date of opening: Mid to late 2014

Features: 60 storeys; 544 guest rooms;

146 long-stay residences; 6,800 square meters

of meeting and banqueting facilities which

includes a grand ballroom, junior ballroom, 11

function rooms, boardroom, business centre and

individual teleconferencing room.

Tourism Promotions Board

• Property developer Ayala Land Inc. (ALI) is set

to launch a boutique-type hotel in 2012 at Fort

Bonifacio, with an average of 150 rooms,.

This new hotel will cater mainly to business

travelers.

• F1 CITY CENTER HOTEL, FORT BONIFACIO (by Best Western International)

Target Date of Opening: First Quarter of 2011

This 240-room hotel enjoys a prime location

within The Fort at Global City. The newly

developed area is home to upscale residential

buildings, trendy restaurants and bars, retail

outlets, and the Market! Market! Shopping

Centre.

COMING SOON

Tourism Promotions Board

Approaching saturation in their invested markets and seeking

new destinations, investors now view the Philippines as the

next big Southeast Asian destination, notwithstanding our

limited accessibility and underdeveloped infrastructure.

Tourism related infrastructure capacity is already constrained

and tightening, but with the diffused development of resorts,

especially along the shores, visitors have gone to practically

all over the Philippines for vastly improved eco-tourism

facilities.

Tourism Business

Investment Prospects

Tourism Promotions Board

However, many destinations are still in need of more tourism

facilities. Many more places await new opportunities for

infusion of tourism investments.

The Philippines is like a blank canvass waiting for the image

to be painted. Like many works of art, it depends on the

combination of colors, themes and brush strokes that will

ultimately determine its success or failure. We are those

combinations of brush strokes and colors. We make up the

scenery of our tourism industry. We need to inspire one

another to make a better Philippine tourism industry.

We call upon the Real Estate sector to heed the challenge for

the development of more facilities that will support tourism-

related activities, and find new markets and investors.

The DOT acknowledges the property sector’s initiatives in

taking a more active role as “facilities provider” that support

the national tourism development programs of the Aquino

Administration. DOT values CREBA’s continued partnership,

as it strives to trickle-down the benefits of tourism directly to

our local communities all over the country, that will ultimately

fulfill the administration’s national goal:

~ revenue generation

~ job creation

~ and, most importantly, poverty alleviation

Tourism Promotions Board