DEPARTMENT OF TOURISM
THE
PHILIPPINE NATIONAL
TOURISM DEVELOPMENT PLAN
2011-2016
Draft Action Plan
(for discussion purposes only)
June 2011
The Philippine Tourism –Diagnosis
Suboptimal socioeconomic development contribution
Highly concentrated pattern of tourism with limited local
community participation
Insufficient tourist facilities and services
Low tourism growth volumes
Inadequate public and private sector
investment
Low budgets for marketing and promotions
FOCAL
PROBLEM
Underdeveloped tourism sector relative to its market and product
development potential
Inadequate
international airport
infrastructure
Inadequate air, sea,
and road
connectivity to
destinations
Limited number of
competitive
destinations
Inadequate
destination/site
infrastructure
Inability to develop and expand air accessibility to
key growth markets
Cumbersome business
operating environment
Discriminatory tax
regime for hotels and
carriers
Perception of the
Philippines as an unsafe
destination
• Poor compliance
with safety standards
• Destination/site security
Overlapping institutional regulatory functions between the
national government and LGUs
Weak LGU tourism development capacities
CAUSE
Formulation of the Philippine National Tourism Development Plan
Inconsistent quality of tourist facilities and services
EFFECT
2
NP-1
A
International Airport
INCLUSIVE
DESTINATION
CONCEPT
Principal Airport - Class 1
Principal Airport – Class 2
A
NP-2
Community Airport -
A
B
Sea Port
A
Tourism Cluster
NP-3
B
NP-4
Gateway to
Tourism Cluster
Tourism Cluster
B
A
A
A
B
NP-5
Tourism
Development
Area
Tourism Development Area
C
International Gateway
Strategic Destination
Clusters
B
D
A
B
NP-6
C
A
D
NP-7
B
CP-1
C
Tourism Site
D
A
E
F
A
B
A
CP-3
21 strategic thematic tourism destination
clusters covering 77 Tourism Devt Areas)
 7 strategic clusters in Northern Philippines
(North Luzon, CAR, CALABARZON, NCR) covering
27 tourism development areas
 7 strategic clusters in Central Philippines
(MIMAROPA, Bicol, The Visayas) covering 24
tourism development areas
B
C
C
B
D
C
E
CP-7
A
A
A
A
CP-5
B
A
B
CP-6
SP-1
B
CP-4
A
B
C
B
A
A
C
SP-2
A
B
A
SP-3
B
B
A
C
C
D
B
A
B
 7 strategic clusters in the Southern Philippines
(Mindanao) covering 26 tourism development
areas.
SP-4
A
A
B
SP-7
B
D
C
E
SP-6
A
B
SP-5
Formulation of the Philippine National Tourism Development Plan
CP-2
3
Strategic Vision:
“TO BECOME THE “MUST EXPERIENCE” DESTINATION IN ASIA.”
• Rapidly expand capacity of secondary international airports
• Expand connectivity between Philippines and its key growth markets
• Implement a strategic access infrastructure program between secondary
Developing
and
marketing
competitive
tourist
destinations
and
products
• Implement a sustainable tourism destination infrastructure program
• Develop diversified tourism products that engage local communities
• Implement a PPP-based mandatory tourism enterprise accreditation
Improving
tourism
institutional,
governance
and human
resource
capacities
international airports and strategic destinations
system and facilitate tourism investment and lower cost of business
• Safeguarding natural & cultural heritage and vulnerable groups
• PPP-based marketing strategy and action plan
• Institutionalize roles and responsibilities of DOT and LGUs
• Develop a competent well motivated and productive tourism workforce
• Improve governance in the area of safety, security, and in dealing with
tourists
GOAL:
“An environmentally
and socially
responsible tourism
that delivers more
widely distributed
income and
employment
opportunities as
indicated by
6.6 M international
arrivals and
34.8 M domestic
travelers generating
PhP1,759 billion in
total expenditure,
contributing
6.78% to GDP
and employing
6.5 million people by
2016.” 4
Formulation of the Philippine National Tourism Development Plan
Improving
market
access and
connectivity
Rapidly expand capacity of secondary international
airports


improve visitor’s
impression
Increase passenger
handling capacities
Prioritize:
 NAIA, Mactan-Cebu, Clark
and Davao (2011-2012)
 Puerto Prinsesa, Iloilo
(2012-2013)
 Laoag and Zamboanga
(2013-2014)
Formulation of the Philippine National Tourism Development Plan
 Reduce congestion to
5
Expand connectivity between Philippines and its key
growth markets


Market Countries
Reduce Air International Air Operations Cost in the
Philippines
Simplify border formalities/procedures for key growth
markets
Formulation of the Philippine National Tourism Development Plan
 Renegotiate Air Service Agreements with Key Growth
6
NP-1
A
International Airport
Implement a strategic
access infrastructure
program between
secondary international
airports and strategic
destinations
Principal Airport - Class 1
Principal Airport – Class 2
A
NP-2
Community Airport -
A
B
Sea Port
A
NP-3
B
NP-4
Tourism Cluster
B
A
A
A
B
NP-5
Tourism Development Area
C
International Gateway
Strategic Destination
Clusters
B
D
A
B


Improve, rehabilitate,
and expand 23 domestic
airports
Improve, rehabilitate,
and expand 21 seaports
Improve, rehabilitate,
and upgrade 28 strategic
connecting roads with
total distance of
approximately 850kms
C
Strategic Links
A
D
NP-7
B
CP-1
C
D
A
E
F
A
B
A
CP-2
CP-3
B
C
C
B
D
C
E
CP-7
A
A
A
A
CP-5
B
A
B
CP-6
SP-1
B
CP-4
A
B
C
B
A
A
C
SP-2
A
B
A
SP-3
B
B
A
C
C
D
B
A
B
SP-4
A
A
B
SP-7
B
D
C
E
SP-6
A
B
SP-5
Formulation of the Philippine National Tourism Development Plan

NP-6
7
Implement a sustainable tourism destination
infrastructure program
 Destination Infrastructure
locations), and solid waste management in (27 locations)
 Design and construction of tourism information centers and
support infrastructure (26 tourism development areas)
 Design and construction of transport terminals and services in
(26 tourism development areas)
 Tourism sites access and visitor improvements
Formulation of the Philippine National Tourism Development Plan
 Provision of water and water treatment (6 locations), power (4
8
Develop diversified tourism products that engage local
communities


vicinity of the International Airports
Linking local communities to the tourism value chain
created by the major mix use tourism complexes
upgraded tourist sites in their vicinity
Review regulations that impede new product
development. (e.g. retiree, medical tourism) and amend
accordingly
Formulation of the Philippine National Tourism Development Plan
 Developing Major Mixed-use Tourism complexes in the
9
10
Formulation of the Philippine National Tourism Development Plan
11
Formulation of the Philippine National Tourism Development Plan
12
Formulation of the Philippine National Tourism Development Plan
13
Formulation of the Philippine National Tourism Development Plan
Simple Tourism Value Chain
Travel Agent
Providing
accommodation
food, etc.
Transport to the
destination
Hotel, Restaurant
Transport
Company
Organise event,
experience
Site Operator, Cultural
Group
Transport
from the
destination
Formulation of the Philippine National Tourism Development Plan
Advising tourist on
product, contract
Transport
Company
CO-ORDINATION OF SERVICES
Tour Operator
Tourism Authority
14
Formulation of the Philippine National Tourism Development Plan
Tourism Value Chain at work
15
Implement a PPP-based mandatory tourism enterprise
accreditation system and facilitate tourism investment
and lower cost of business
 Design and implementation of a PPP-based mandatory
Formulation of the Philippine National Tourism Development Plan

tourism enterprise accreditation system
Facilitating business investment and simplifying business
set-up and licensing procedures and cost
16
Formulation of the Philippine National Tourism Development Plan
Proposed Framework of the DOT Accreditation Process
Primary Tourism Enterprises 2012 – 2016
17
Safeguarding natural & cultural heritage and vulnerable
groups


recognition
Advocating the sustainable use of heritage sites
Providing a professional interface between sustainable
heritage and tourism
Formulation of the Philippine National Tourism Development Plan
 Developing uniquely Filipino destinations and products
 Increasing number of heritage sites for international
18
19
Formulation of the Philippine National Tourism Development Plan
20
Formulation of the Philippine National Tourism Development Plan
21
Formulation of the Philippine National Tourism Development Plan
Marketing strategy and action plan




highly-focused new products
Design TPB as a product marketing oriented organization
Define new target markets and undertake market
penetration.
Set up a unique market positioning that boosts and
differentiates the Philippines as a tourism destination.
Establishing customized promotional initiatives to source
markets
Formulation of the Philippine National Tourism Development Plan
 Consolidate present product offering and develop
22
Formulation of the Philippine National Tourism Development Plan
Market Positioning Approach
23
Formulation of the Philippine National Tourism Development Plan
Product-Market Mix Approach
24
Nature-based
tourism
Sun & Beach
Cultural tourism
Shopping,
Leisure &
Entertainment
Health and
Wellness tourism
MICE
Educational
Tourism
Key growth markets
Domestic Market
Japan
South Korea
USA
China
Strategic markets
Australia
Singapore
Canada
Opportunity markets
India
Hong Kong
Taiwan
Very High
High
Medium
Russia
Niche markets
UK
Low
Very Low
Germany
100% - Full
potential
Source: T&L research,
75% - potential
50% - potential
25% - potential
0% - potential
Formulation of the Philippine National Tourism Development Plan
Malaysia
25
Special Interest Segments
Typically: young, male, single, regular travelers
Diving is the main motivation for travelling to the destination.
The fame of the under water world and the pristine
biodiversity are the reasons for travelling to the Philippines
Adventure Experiences
Adventure tourists want to experience remote and unexplored
areas while undertaking soft or hard adventure activities.
Shopping, Leisure and Entertainment Tourists
Shopping, Leisure & Entertainment Tourism is a relatively
young breed of tourist, who is seeking escapism,
entertainment and fun. Time may be limited, but disposable
income levels are high.
Honey Mooners
Newly weds on their honey moon spend an important amount
of money on a dream destination. Residing in luxury resorts.
The trend goes from only passive holidays to active
experiences.
MICE
Meeting, Incentives, Congress and Events. The tourists
consuming this tourism product travel with their company to
the Philippines or are there for business issues. They expect
and demand perfect services.
Educational Tourism
Regional pupils from all ages come to the Philippines in order
to learn and improve their English language skills
Source: T&L
research,
Bird Watchers
Bird watchers are passionate about birds and wish to
experience them in their natural habitat. Mostly, Bird
Watchers are driven by the wish to see specific and rare
birds. For this they are willing to travel around the world.
Health and Wellness Tourism
Due to the high costs of medical care in the tourists home
country . This type of consumer seeks to look and feel
better, to lose weight, to slow the effects of aging, to
relieve pain or discomfort, to manage stress, or to partake
in the use of natural supplements like vitamins and
minerals to improve their health..
Culture Explorers
Formulation of the Philippine National Tourism Development Plan
Divers
Search for participation in new cultural experiences,
whether they are aesthetic, intellectual, or emotional. They
find satisfaction in visiting museums, archeological sites
and experience living culture traditions and festivals
Beach Relaxation
Tourists that seek for relaxation and sun along the
Philippines beaches. In addition, activities mostly
undertaken are: fishing, scuba diving, sailing, golf, water
skiing, whale watching, windsurf, relaxation therapies, spa,
etc.
Golf Tourists
Golf Tourists are passionate about Golf. Their main
motivation is to play Golf all year round and travel to the
destination that entitle them to do so.
National Tourism Marketing Program
 Strategic Marketing
 Branding
 Product Development Clubs
 Marketing Intelligence
 International Marketing Network
priorities
 Create DOT regional market offices and use local market
representatives at country level
 Operational Marketing
 Commercialization
 Promotion
 Communication
 Public relations
Formulation of the Philippine National Tourism Development Plan
 Adapting DOT marketing & representation offices to market
27
Marketing Action Plan Budget 2012-2016 (USD)
1. Strategic Marketing
Program
Sub-porgram 1: Philippine's Tourism
Positioning Management
Sub-porgram 2: Tourism Product Clubs
Development Franework
Sub-program 3: Marketing Intelligence
Management
2. Tourism Marketing
Network Program
Sub-program 1: International
Network Offices
Sub-program 2: Fostering National
Tourism
3. Operational Marketing
Program
Sub-program1:
Commercialization
Sub-Program 2:
Promotion
Sub-program 3:
Communication
Sub-program 4: Public
Relations
Sub-program 5: Market
Intelligence
TOTAL BUDGET MARKETING MACRO
PROGRAM
2013
2014
2015
2016
TOTAL
795,000
50,000
390,000
300,000
390,000
1,925,000
355,000
50,000
50,000
50,000
50,000
555,000
190,000
-
190,000
100,000
190,000
670,000
250,000
-
150,000
150,000
150,000
700,000
750,000
3,041,068
3,087,759
3,140,841
3,201,190
13,220,859
450,000
2,700,000
2,700,000
2,700,000
2,700,000
11,250,000
300,000
341,068
387,759
440,841
501,190
1,970,859
9,477,000
13,050,547
15,195,698
17,305,945
20,837,995
75,867,184
960,000
1,877,613
2,127,219
2,665,461
3,669,206
11,299,499
4,265,000
6,138,857
7,322,641
8,092,293
9,715,254
35,534,044
2,334,000
2,853,513
3,266,765
3,729,745
4,249,260
16,433,282
1,148,000
1,305,155
1,483,825
1,686,953
1,917,888
7,541,820
770,000
875,409
995,248
1,131,493
1,286,388
5,058,538
11,022,000
16,141,615
18,673,457
20,746,786
24,429,185
91,013,043
Formulation of the Philippine National Tourism Development Plan
2012
28
Forecast arrivals per country of origin 2011 - 2016
USA
Japan
China
Australia
Taiwan
Hong Kong
Singapore
Canada
United Kingdom
Malaysia
Germany
India
Russia
Scandinavia
Others
TOTAL
2012
2013
2014
2015
2016
CAGR
792.466
855.863
941.449
1.082.666
1.245.066
1.469.178
11%
636.175
687.069
755.776
846.469
931.116
1.024.227
8%
286.995
286.995
295.605
304.473
319.697
335.682
3%
215.563
254.364
305.237
381.546
496.010
669.614
21%
165.165
184.985
203.484
234.006
269.107
312.164
11%
149.008
156.458
164.751
175.459
188.180
203.235
5%
143.108
153.555
165.225
178.856
195.848
216.412
7%
135.613
151.887
179.226
211.487
253.784
317.230
15%
111.131
116.243
121.706
129.617
139.338
151.182
5%
101.771
106.860
112.203
117.813
125.471
136.763
5%
89.257
99.968
114.963
132.208
153.361
180.966
13%
60.487
62.301
64.793
68.033
72.115
77.884
4%
38.039
42.604
48.994
57.813
68.220
78.453
13%
15.521
16.607
17.936
20.088
23.101
26.335
9%
51.237
55.080
59.486
64.536
70.990
78.089
7%
727.937
815.290
913.125
1.031.831
1.176.287
1.340.967
11%
3.719.473
4.046.128
4.463.959
5.036.903
5.727.691
6.618.381
11%
Formulation of the Philippine National Tourism Development Plan
Korea
2011
29
Institutionalize roles and responsibilities of DOT and LGUs



and LGU’s in key areas
Strengthening tourism governance and policy
formulation in the DOT
Strengthening DOT support for Local Government Units
(LGU’s) by establishing DOT provincial units
LGU Awareness and capacity building
Formulation of the Philippine National Tourism Development Plan
 Clarify the institutional role and responsibility of DOT
30
Tourism Governance and Management Model for the
Philippines
National Level
Strategic level
Tactical Level
Tourism Advisory and
Consultative Bodies
Department of Tourism
(Tourism Coordination CouncilTourism Congress-Regional
Tourism Congresses)
Regional Level
Regional Tourism
Councils/ Congresses
TIEZA
Regional Tourism Offices
(DOT-Tourism Congress-Civil
Society)
Provincial Tourism
Councils
(DOT-Tourism Congress-Civil
Local Level
Tourism
Promotion
Board
Regional &
Provincial Level Tourism Units
Society)
Local Tourism Councils
and Action Groups
City and Municipality Tourism Units
Formulation of the Philippine National Tourism Development Plan
Proposed Philippine Tourism Governnance & Management Framework
31
 Skills capability building
 Improving labor relations
 Professional Tourism Training and Education
 HR Recognition, Networking, and Development
Formulation of the Philippine National Tourism Development Plan
Develop a competent well motivated and productive
tourism workforce
32
Formulation of the Philippine National Tourism Development Plan
Proposed Tourism and Hospitality Management
Education System (2012 – 2016)
33
Formulation of the Philippine National Tourism Development Plan
Human Capital
Development
Philippine
Tourism Industry
2011 - 2016
34
35
Formulation of the Philippine National Tourism Development Plan
Improve governance in the area of safety, security, and in
dealing with tourists




International Ports
Expanded DOT TOP-COP Program
Tourism Front-Liners Awareness and Values Training
Program
Establish Tourism Crisis Management Unit
Pilot PPP based local tourism civil order programs in
each region targeting reduced
 Criminality and lawlessness
 Traffic congestion
 Littering and waste
Formulation of the Philippine National Tourism Development Plan
 “Mabuhay! Tuloy Po Kayo” Program for CIQS at
36
37
Formulation of the Philippine National Tourism Development Plan
38
Formulation of the Philippine National Tourism Development Plan
Provisional Cost Estimates of NTDP in (PhP ‘000s)
2012
3,787,320
2013
2014
2015
3,798,600 1,760,950 1,416,185
Developing and
marketing
competitive tourist
destinations and
products
0
3,957,811
6,747,997 7,279,105 4,607,570 1,448,838
Improving tourism
institutional,
governance and
human resource
capacities
0
171,194
5,000
7,916,325
Improving market
access and
connectivity
Grand Total
170,399
69,961
64,340
2016 Total
339,685 11,107,740
24,041,322
64,340
540,233
10,716,995 9,110,016 6,088,095 1,852,863
35,689,295
Formulation of the Philippine National Tourism Development Plan
2011
5,000
39
NTDP Implementation Approach
 Full time coordination and supervision of the
implementation of the strategic programs will be
required at the national, regional, and local level
 National Tourism Coordinating Council
 DOT NTDP Program Implementation Coordination &
Monitoring and Evaluation Unit
 Infrastructure programs and projects to be implemented
by related agency project management and
implementation units
Formulation of the Philippine National Tourism Development Plan
 Overall implementation to be coordinated through:
40
Formulation of the Philippine National Tourism Development Plan
Project Implementation Organization Arrangement
41
Type of
Infrastructure
Lead
Agency
Mode of Financing
Capex and O&M
Possible
Financing
Partners
Project
Implmentation
1. Secondary
International Airport
Infrastructure
Upgrading Program
DOTC
Annual Budgets
Project Loans
User fees and charges
Public sector
lenders
Private Sector
as providers
and O&M
DOTC Project
Management and
Implementation
Units
2. Air, sea and land
connectivity to
strategic cluster
destination entry
points improvement
program
DOTC/
DPWH
Annual Budgets
Program/Project Loans
User fees and charges
As above
DOTC/DPWH
Project
Management and
Implementation
Units
3. Tourist development
area utility destination
infrastucture program
DPWH/
LGUs
Annual Budgets
Program/Project Loans
User fees and charges
As above
DPWH/LGU
Internal Project
Management and
Implementation
Units
4. Tourist center
support and site visitor
infrastructure program
DOT/DENR
/NCCA/
LGUs
Program Loans
LGU Counterpart
User fees and charges
As above
Specially created
Project
management and
Implemetation
Units
Formulation of the Philippine National Tourism Development Plan
Infrastructure - Implementation, Financing and
Operations and Maintenance Arrangements
42