TOURISM OPPORTUNITIES IN THE PHILIPPINES: THE NATIONAL TOURISM DEVELOPMENT PLAN Pre-Plenary Budget Hearings Congress of the Philippines September 20, 2013
Jan 12, 2016
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
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