tourism performance 2

8/7/2019 tourism performance 2

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Tourism IndustryPerformance

Department of Tourism

Report on the Performance of the Arroyo Administration

House Oversight Committee

16 July 2009


2/30

Tourism Agenda: Increase Tourist

Arrivals to 5 Million by 2010

Generate more foreign exchange for the economy

Create jobs and livelihood for Filipinos

Enhance infrastructure to link tourists destinations


3/30

Economic Impact of Tourism

6.17%

6.16%

6.15%

6.19%

6.13%

6.14%

6.15%

6.16%

6.17%

6.18%

6.19%

2004 2005 2006 2007

Average share of tourism to GDP = 6.2%

Source: NSCB Philippine Tourism Satellite Account


4/30

Tourist Arrivals, 2004-2008

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2004 2006 2006 2007 2008

Tourist arrivals grew at

an average of10.6% in

the last five years.

Mid-2008 saw the globalfinancial crisis affecting

travel movement of

major tourist source

markets:

- Japanese outbounddeclined by 9.6%

- Korean outbound

dropped by 7.6%

- USA outbound travel

decreased by 0.4%Growth Rate 20.1% 14.5% 8.4% 8.7% 1.5%


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Top Tourist Markets, 2008

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

K or ea U SA K or ea C hi na A ustr al ia Tai wan H on g K on g C an ad a Si ng ap or e U ni ted

Kingdom

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Arriva ls G rowt h Rat e

Ma rke t A r r i v a l s G r o w t h R a t e

K o r e a 6 1 1 , 6 2 9 - 6 .4 %

U S A 5 7 8, 2 4 6 - 0 . 1 %

Ja p a n 3 5 9, 3 0 6 - 9. 0 %

C h i n a 1 6 3 , 6 89 3 . 9%

A u s t r a l i a 1 2 1 , 5 1 4 8. 1 %

T a i w a n 1 1 8, 7 82 5 . 9%

H o n g K o n g 1 1 6 , 6 5 3 4 . 2 %

C a n a d a 1 0 2 , 3 81 1 2 . 1 %S i n g a p o r e 1 0 0 , 1 7 7 6 . 6 %

U K 87 , 4 2 2 9. 7 %


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Fast Growing Tourist

Markets, 200834.3%

28.8% 28.1%

18.8%

15.8%13.9%

12.1%11.0%

9.7%

8.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Russian

Federation

UAE Vietnam France Norway India Canada Spain United

Kingdom

Australia


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Foreign tourism receipts to GDP ratiogrew from 1.9% in 2003 to 3.4% in 2007

Foreign tourism receipts to Total Exports

ratio more than doubled from 3.9% in2003 to 7.9% in 2007

Economic Impact of

Tourism



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24.14%

31.66%

8.31%

22.68%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

2004 2005 2006 2007

Domestic tourism expenditure posts

double digit growth!



9/30

Domestic Travel Movement

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2004 2005 2006 2007 2008*

*2008 Preliminary

Growth Rate 20.01% 17.22% 7.42% 20. %

Annual Average Growth Rate = 16.24%


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Arrivals in Selected Tourist Destinations

First Quarter 2009

0 50000 100000 150000 200000 250000 300000 350000 400000 450000

Sorsogon

Legaspi CityPalawan

Negros Oriental

Bohol

Zambales

Camarines Sur

Davao City

Boracay

Cebu

2008 2009

Tourist arrivals in selecteddestinations

grew by 10.33% in the first quarter of2009.

Domestic travel movement increased

faster by 12.87% than foreign arrivals

which expanded by 4.25%


11/30

Partly because of investments in tourism

destinations, construction sector grewby 23.1 % making it a big factor in the

record economic growth in 2007

Tourism accounted for 9.5% of totalemployment

Economic Impact of

Tourism



12/30

Room Supply in Selected Destination of

Central Philippines SuperR

egion

Since 2006, the focus onTourism for CentralPhilippines Super Regionhas spurred the:

- Expansion intourist arrivals

- Rise in room supply- Increase in investments- Hike in employment- Diversification ofproducts

0 5000 0000 5000

Pala an

ohol

oracay

Ce u

2007 2008


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TAIWAN

SHANGHAI

NOVOSIBIRSK

MOSCOW

VLADIVOSTOK

Legend:

Red Existing

Blue New Routes

Mandarin AirlinesTaipei-Kalibo

SeaAirKota Kinabalu-PuertoPrincesa

Jet Airlines

Kazakstan-Silay

Shenzhen AirlinesShanghai-Cebu

Fregat AeroMoscow-Cebu

ValdaviaAirNovosibirsk-Cebu

Philippine Airlines

Narita-Cebu

Vladivostok AirVladivostok-Cebu

China SouthernShanghai-Cebu

Mandarin Air

Taipei-CebuCebu PacificTaipei-Cebu

China AirlinesTaipei-Cebu

Hong Kong AirlinesHong Kong-Cebu

Philippine AirlinesHong Kong Cebu

Malaysia AirlinesKuala Lumpur-Cebu

Cebu PacificSingapore-Cebu

Silk AirSingapore Cebu

Asian SpiritPalau-Cebu

Asiana AirlinesPusan-Cebu

Korean AirIncheon-Korea

Qatar AirlinesDoha-Cebu


14/30


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2004 2005 2006 2007 2008

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%6.0%

7.0%

8.0%

In Million

Jobs Growth Rate

The tourism sectorcreated 4.3

millionjobs from 2004 to 2008


15/30

Jobs created with increased tourist arrivals

totaled 1.5 Million from 2004-2008

468,633

404,713

268,719

303,351

57,863

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000

2004

2005

2006

2007

2008

Tourist Arrivals

3,139,422

3,091,993

2,843,345

2,623,084

2,291,352


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9.62%

9.55%

9.54%

9.66%

9.48%

9.50%

9.52%

9.54%

9.56%

9.58%

9.60%

9.62%

9.64%

9.66%

2004 2005 2006 2007

On the average,

employment intourism industry was

9 .5 percent of the

total employment

from 2 0 0 4 to 2 0 0 7



17/30

Tourism Strategy

Market Product Focus

Establish Tourism Zones

Destination Development: CentralPhilippines


18/30

Definition of a good market portfolio for the DoT

Ensure mix of countries

creates balance across:

Growth cycles

Market development

Short haul vs. long-haul

Seasonality

Investment required

Current size and growth

Potential size and growth

Competitive

Position: How

competitive is the

Philippines vs. key

competitors (SE Asia)?

Ability to Deliver:

How adapted is the

Philippines offer to

consumer needs?

Note: Competitive Position (market share, awareness (unaided, aided), positivity towards RP, consideration of RP, information seeking about RP, likelihood of

visiting), Ability to Deliver (Ease of access, trade interest, product availability, importance of safety, Fit of assets vs. consumer preferences, seasonality of arrivals,presence of English speaking population),

Ability to

Win

Size of Opportunity

Core Markets

Markets that deliver the

bread & butter

Bulk of new investment

Best capabilities

allocated

Investment / Turnaround

Markets

Invest in these markets

ahead of return

i.e. invest for the future

Tactical / Momentum

Markets

With focused spend can

relatively quickly

generate increased

arrivals

Maintenance Markets

Markets that are on the

radar

Activity only to occur if

there is spare capacity

High

Low High


19/30

Market Prioritization Framework

Note: **US campaigns and activities can be extended to Canada; *Given limited resources and inherent barriers to activation, UK market has

been de-prioritized.However, UK remains a good investment market in EuropeSource: Monitor Analysis

Ability to Win

Competitive

Position

Ability to Deliver

Size of Opportunity

Current Attractiveness

Future Attractiveness

High

Low

Low High

Canada

India

Singapore

Spain

UK

China

Japan

Australia

Denmark

Germany

HK

Italy

Netherlands

Russia

Switzerland

Taiwan

US

Korea

Implications

Continue to focus bulk of resources

and best people on existing core

markets (China, Japan, Korea, US

Balikbayan)

Increase investment and focus on

Tactical/momentum markets

(Australia, Russia, Germany,US/Canada)

Maintain investment in turnaround

markets (Hong Kong, Taiwan,

Singapore) focusing efforts on

addressing key barriers to growth

Monitormaintenance markets (UK,Netherlands, Switzerland, and

Denmark) on an annual basis to test

for low-hanging fruit

Cut focus on Italy, Spain, and India


20/30

Focused Marketing and Promotions

Participated in major international travel fairs ASEAN Tourism Forum

PATA Travel Mart

Internationale Tourismus Borse, Germany World Travel Mart, United Kingdom

China International Travel Mart, China

Japan Association of Travel Agencies Tourism Fair, Japan

Korea World Travel Mart, Korea

Launched market specific campaigns Dive and adventure in the United Kingdom and Scandinavian Countries

Adventure in Australia


21/30


Organized the following international events in the Philippines UNWTO 6 th International Tourism Forum for Parliamentarians and Local

Authorities

Hong Kong Association of Travel Agents Annual Meeting United Federation of Travel Agents Association Congress

Spa and Wellness Summit

World Health Tourism Congress

Launched new campaigns Adventure Philippines

Live Your Dream

Shop Fest


22/30


Organized familiarization trips for wholesalers, travelagents and members of the media in major source

markets

Tapped the Bollywood Film Industry of India

Undertook innovative marketing through billboard, bus,train and taxi advertisements as well as thematic motifin Philippine Pavilion during travel fairs


23/30

Tourism Products

Beach Holiday Sightseeing

Ecotourism Adventure

Diving Shopping

Bird Watching Trekking

Cultural Historical

Conventions & Meetings Incentive

Medical Tourism Wellness

Education Filming

Agri-Tourism Rural/Community-based


24/30

P 150 Billion worth of private sector tourism investments were

endorsed from 2004 2008.

1,288

11,938

93,766

22,344 20,432

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2004 2005 2006 2007 2008

Endorsed Tourism Projects,2004-2008

(in Million Pesos) Compared with2004 level,2007

and 2008

investments

continued todemonstrate

substantial growth

due to rising

demand for

accommodation

and new generationof tourism facilities

and services


25/30

Major Tourism Investments

Year Name Location Category Investments

(in Pesos Million)

200 Manila Ocean Park Manila Theme Park 1,008

Hyatt Hotel and Casino Manila Hotel 3,98

Pamalican Island Tourism Ecozone Palawan Tourism Ecozone 37

Misibis Resorts and Esate Albay Resort 343

Hilton Cebu Resort and Towers Mactan Hotel 1,637

Marco Polo Plaza Cebu City Hotel 398

2006 CCP Culture and Tourism Ecozone Pasay Tourism Ecozone 2,300

Manila Bay Tourism and Leisure Park Paranaque Tourism Ecozone 2 ,043

Manila Marriot Hotel Pasay Hotel 2,6 6

John Hay Tourism Special Ecozone Baguio Tourism Ecozone 2,600

San Lazaro Leisure Park Cavite Tourism Ecozone 926

Sta Rosa Complex Tourism Ecozone Laguna Tourism Ecozone 617

Club Misibis Albay Resort 122


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Major Tourism Investments

Year Name Location Category Investments

(in Pesos Million)

2006 Boracay Shangri-la Hotel and Resort Boracay Hotel 4,030

Bellevue Bohol Bohol Resort 334

Imperial Palace Water Park & Resort Cebu Resort 3,180

2007 Khi-Ali Manila Makati Hotel 7,6 0

New Port City Pasay Tourism Ecozone 7,641

St. Francis Cabrini Medical Tourism Batangas Medical Tourism 1,418

Camarines Sur Tourism Park Camarines Tourism Ecozone 1,002

2008 The Medical City Pasig Medical Tourism 1,160

Makati Medical Center Makati Medical Tourism 2,972


27/30

Proclaimed Tourism Enterprise Zones

Date Proclaimed Proclamation Tourism Economic Zone Location

June 2002 PP No. 212 Eastbay Arts, Recreation and Tourism

Zone

San Roque, Angono,

Rizal

April 2004 PP No. 619 Fort Ilocandia Tourism Ecozone Ilocos Norte

March 200 PP No.803 Boracay Eco-Cultural Village Boracay IslandOctober 200 PP No. 927 Island Cove Resort & Leisure Park Cavite

February 2006 PP No. 998 Resorts & Enterprise Village Albay

November 2006 PP No. 1179 Pamalican Island Tourism Ecozone Palawan

July 2007 PP No. 1330 St. Frances Cabrini Medical Center Batangas

May 2008 PP No. 1 17 San Lazaro Leisure Park Laguna

July 2008 PP No. 1 7 Newport City Cyber Tourism Zone Villamor Airbase,

Pasay City

November 2008 PP No. 1681 Imperial Palace Waterpark Resort and Spa

Tourism Economic Zone

Lapu Lapu City

Cebu


28/30

Projected Visitor Arrivals

Year Volume Growth Rate

Medium High Medium High

2009 3,1 4,711 3,197, 01 0. % 1.9%

2010 3,204, 3,319,006 1.6% 3.8%

2011 3,328,261 3, 26, 77 3.9% 6.2%

2012 3,498,002 3,823,867 .1% 8.4%


29/30

Domestic Travelers, 2005

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

NCR

CAR

RegionI

RegionII

RegionIII

RegionIV

A

RegionIV

B

RegionV

RegionV

I

RegionV

II

RegionV

III

RegionIX

RegionX

RegionX

I

RegionX

II

RegionX

III

ARMM

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%Travelers % Share


30/30

Purpose of Visit of

Domestic Travelers

13 200

8 200

3

032

515

379

51

980

4 079

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

s

t Fr

ends or

e

at

ves

Peasure/

acaton

us

ness

E

tudy

Government ss on

ed ca / Hea th

Others

Documents

tourism performance 2