OVERVIEW OF PHILIPPINE TOURISM
USEC. OSCAR P. PALABYAB
Department of Tourism
The Growth of World Tourism
Tourism growth over the past 50 years is
dramatic- 25 Million in 1950 to 698 Million in
2000
 One of the most remarkable economic and
social phenomena of that period
 Forecasts indicate the trend will continue with
1.5 Billion in 2020!

The Unstoppable Expansion of International
Tourism
International Tourist Arrivals by Receiving Region, 1950-2004*
800
700
Average growth of 6.5% a year
Middle East
Africa
600
400
300
763 million
Americas
Europe
25 million
200
100
04
*
20
00
20
90
19
80
19
70
19
60
19
50
0
19
million
500
Asia and the Pacific
Worldwide Visitor Arrivals and Receipts
1996 - 2006
% Inc/Dec
Visitor
Receipts
(In US$B)
% Inc/Dec
575
6.28 %
434.0
5.60 %
1997
599
4.17
443.0
2.07
1998
617
3.00
443.0
0
1999
640
3.73
455
2.71
2000
687
7.34
482
5.93
2001
687
0
464.0
-3.73
2002
707
2.91
474.0
2.16
2003
694
-1.84
535
12.87
2004
765
10.23
635
18.69
2005
806
5.36
683
7.56
2006
842
4.47
Year
Visitor Arrivals
(In Millions)
1996
International Tourist Arrivals
2005
Country
France
Spain
U.S.
China
Italy
United Kingdom
Mexico
Germany
Turkey
Austria
(In Millions)
76
55.6
49.4
46.8
36.5
30.0
21.9
21.5
20.3
20.0
Factors in Tourism Growth
Increase in real income
 Increase in life expectancy
 Retiring baby boomers
 Faster and cheaper air travel
 Easier access and more destinations
 Rapid developments in IT

Sampling of tourism expenditures
International Visa Card holders spent P37.5 B in
2005 vs P29 B in 2004
 Top 5 Visa spending countries in RP
1. U.S.A.
2. United Kingdom
3. Japan
4. South Korea
5. Australia

Visa Card users
Korean card holders had highest average
spending per transaction at US$175
 Metro Manila got 60% of total availments
or P22.9 B
 Luzon = P72B of which Mindoro got
P272M and Palawan P238M
 Visayas= P6.1 B (Cebu= P4B), others
Negros, Leyte and Boracay

Spending pattern
Most popular are accommodation, retail
goods, restaurants, transportation, sports
and leisure
 Largest retail market= department stores
and duty free shops
 In Metro Manila, hotels got P1.5 B, airlines
P420 M, groceries, supermarkets P344 M

Trends in Asia Pacific Region

Japan’s economy is registering an
upward trend of 2.8%

Hongkong, China and Korea are
predicted to grow by 5.5%

South East Asian countries are
expected to grow from 6-7%,
characterized by liberalization on
outbound travel and increasing number
of travel agencies

In China alone, there are about 111 M
internet users now
Visitor Arrivals to the Philippines
Actual Arrivals (in Million)
5
Year
4
Projected
3
2.05
2.22
2.15
2.17
1.99
1.80
1.93
1.90
2.29
2.60
Growth Rate
16.4 %
8.5 %
(3.3)%
1.0 %
(8.2)%
(9.8)%
7.6 %
(1.3)%
23.0%
14.5%
2006
2.84
8.4%
Projected Arrivals (in Million)
2
1
Actual
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Volume
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Volume
Growth Rate
2007
2008
2009
2010
3.20
3.65
4.24
5.00
12%
14%
16%
18%
Philippine Visitor Receipts
Actual Tourism Receipts
(in US$ Billion)
Year
Volume
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2.70
2.83
2.41
2.55
2.13
1.72
1.74
1.52
1.99
2.23
Growth Rate
10.1%
4.8%
(14.8)%
5.8%
(16.4)%
(19.3)%
1.0%
(12.5)%
30.7%
12.32%
2010
2009
2008
2007
2006
Projected
2005
2004
2003
2002
2001
2006
3.46
54.96%
2000
Projected Tourism Receipts
(in US$ Billion)
Year
Volume
2006
2007
2008
2009
2010
2.72
3.12
3.56
4.06
4.59
Growth Rate
16.0%
15.0%
14.0%
14.0%
13.0%
Actual
1999
1998
1997
1996
0
1
2
3
4
5
Philippine Top 12 Markets, 2006
Country
Volume
%
Share
Growth
Rate
 Korea is the
KOREA
572,133
20.1%
16.9%
USA
567,355
20.0
7.4
number 1 tourist
market in 2006 with
a share of 20
percent and growth
rate of 17 percent
JAPAN
421,808
14.8
1.5
CHINA
133,585
4.7
24.3
 China continues
TAIWAN
114,955
4.0
-6.5
AUSTRALIA
101,313
3.6
5.02
HONGKONG
96,296
3.4
-10.2
SINGAPORE
81,114
2.9
16.8
CANADA
80,507
2.8
10.5
UNITED
KINGDOM
68,490
2.4
8.7
MALAYSIA
53,279
1.9
23.7
GERMANY
51,402
1.8
2.0
to demonstrate
robust growth at
24 percent in
2006 after
experiencing 171
percent increase
in 2005.
 Singapore and
Malaysia visitors
continued to
increase with the
proliferation of low
cost carriers
Philippine Top 12 Markets, Jan –Sept 2007
Country
Volume
JAN-SEPT
2007
Volume
JAN-SEPT
2006
% Share
%
Growth Rate
KOREA
472,711
20.9%
406,480
16.3%
USA
433,425
19.1
424,494
2.1
JAPAN
303,420
13.4
326,219
-7.0
CHINA
113,593
5.0
98,136
15.8
TAIWAN
85,551
3.8
87,471
-2.2
HONGKONG
84,910
3.7
70,804
19.9
AUSTRALIA
76,048
3.4
69,341
9.7
SINGAPORE
70,054
3.1
57,827
21.1
CANADA
60,751
2.7
54,511
11.4
UNITED
KINGDOM
55,564
2.5
48,824
13.8
MALAYSIA
48,735
2.2
38,060
28.0
GERMANY
40,211
1.8
37,165
8.2
How Did Our Neighbors Do in
2006/2005?
COUNTRY
2006
2005
Percentage
Growth
Malaysia
17,500,000
16,431,055
6.51%
Thailand
13,650,000
11,516,936
18.52
Singapore
9,673,362
8,875,980
8.98
Indonesia
4,871,351
5,002,101
(2.61)
Vietnam
3,583,486
3,430,000
4.47
Philippines
2,843,345
2,623,084
8.40
Cambodia
1,700,041
1,421,615
19.59
Lao PDR
1,200.000
1,081,606
10.95
Brunei
836,435
815,054
2.62
Myanmar
630,061
660,206
(4.57)
The Birth of the Super Regions





North Luzon
Agribusiness
Quadrangle (NLAQ)
Luzon Urban
Beltway
Central Philippines
Mindanao
Cyberservices
Corridor
The Central Philippines Super Region is composed of Regions 5, 6, 7,
and 8 and the provinces of Palawan, Romblon and Camiguin as well
as the island of Siargao and the City of Dapitan.
This Super region has 51 weekly flights with
average seat capacity of 11,045 from major
tourist markets …
International
Flights to
Central
Philippines
16 Flights/Week
From S. Korea
2 Flights/week
From Taiwan
14 Flights/week
From Hong Kong
12 Flights/week
From Singapore
2 Flights/week
From Malaysia
5 Flights/week
from Japan
Central Philippines Super Region

Seven of the ten most visited
beaches in the country are
located in provinces in the
Central Philippines Super
Region namely: Cebu, Aklan,
Negros Occidental, Bicol,
Samar, Palawan and Romblon

Tourism revenues from Central
Philippines reached P83.82
Billion in 2005, with Western
and Central Visayas getting the
lion’s share, raking in 38% and
35%, respectively
POWDER FINE WHITE SAND
BEACHES OF BORACAY
Visitors to Central Philippines
reached 4.64 million or 29
percent of total regional
travelers in 2006
Western Visayas
1,610,677
Romblon
23,780
Palawan
189,911
CENTRAL
VISAYAS
1,631,445
Dapitan
47,769
Bicol Region
637,127
Eastern Visayas
203,569
Surigao
City
58,341
Camiguin
220,062
Endorsed Tourism
Development Projects
in Central Philippines
THE SUPERREGIONS
North Luzon
Metro Luzon Urban Beltway
Year 2006 – September 2007
MACAGANG BUSINESS CENTER
MPh 67.917 – PEZA
Central Philippines
Super Region
AVENUE PLAZA HOTEL (2007)
Mph 324.205 –BOI
Tourism
CLUB MISIBIS
MPh 122.817 - PEZA
CAMARINES SUR TOURISM PARK (2007)
MPh 1,002.93 - PEZA
Camarines
Mindanao
Albay
Masbate
Sorsogon
Romblon
Samar
BORACAY SHANGRI-LA HOTELS &
RESORTS, INC.
MPh 4,030 – PEZA Locator
Boracay
Panay
Leyte
MICROTEL INNS & SUITES BORACAY
MPh 128.300 - BOI
BORACAY SANDS HOTEL (2007)
MPh 174.60 - BOI
Palawan
Siargao
Negros
Cebu
Bohol
Camiguin
Siquijor
SHANGRI-LA MACTAN IS. RESORT
MPh 310.400 – BOI (Modernization)
IMPERIAL PALACE WATER PARK
MPh 3,180.00 – BOI
WATERFRONT CEBU TOURISM ESTATE
MPh 350.00 - BOI
THE BELLEVUE BOHOL
MPh 334.1360 – BOI
ESKAYA BEACH RESORT
MPh 815.000 – BOI
BLAUES MEER RESORT
MPh 69.700 - BOI
Note:
Total amount of ETDP in Central Philippines
as of January 2006 – September 2007
MPh 10,910.005
SUMMARY OF MEDIUM TERM PUBLIC INVESTMENT PROGRAM FOR
CENTRAL PHILIPPINES
AMOUNT
(IN BILLIONS)
PERCENT
SHARE
AIRPORTS
30.577
16.02
SEAPORTS
0.867
0.45
ROADS
92.973
48.70
RAILWAY
40.000
20.95
FLOOD CONTROL
21.978
11.52
ENERGY
4.500
2.36
190.895
100.00
TYPE OF PROJECT
TOTAL
Key Tourist Markets

Priority 1: China, Japan, Korea

Priority 2: Taiwan, Hong Kong, Australia

Priority 3: ASEAN, Europe, North America
Philippine Global Strategy

Accelerate demand in existing core markets
such as China, Japan, Korea and Filipino
Americans

Increase investment and focus promotion
programs in strategic markets such as
Australia, Russia, Germany and US/ Canada

Reinvigorate marketing efforts in traditional
sources such as, UK, Italy, Spain and France
Building Sustainable Demand
for the Future

Liberalize air access to and from major
tourist markets either through direct
flights or chartered services

Upgrade and modernize infrastructure
and transport facilities to facilitate
access in tourist destinations especially
in the Central Philippines

Expand tourist accommodation and
recreation facilities

Diversify tourist products and services
such as medical and wellness tourism
for an enhanced tourism experience
Hotel and Resorts – Investment Needs
Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010
Current supply Vs 2010 demand in accommodated tourist number
18.5
22.8
4.3
2.7
# MM PAX
At least additional
20,152 rooms to
reach 85%
occupancy rate**
Domestic
tourist
18.4
Or 38,489 rooms to
reach 70%
occupancy rate**
15.7
1.6
Foreign
tourist
2.8
4.4
Current supply in
2010 projected
accommodated tourist accommodated tourist
number
number*
Additional capacity
needed
Note: *Accommodated tourist number does not equals to total tourist number as some tourists may not choose to stay in hotels and resorts
** Assuming demand growth rate for non-accredited establishment rooms is 50% of that for accredited establishment rooms
Source: DOT Hotel Census, August 2005, n=881; DOT Accreditation database as June 2005; Monitor estimation; Monitor analysis
RESULTS FROM 2005 HOUSEHOLD SURVEY
ON DOMESTIC VISITORS, April – Sept 2005

43.5% (23 Million)
Filipinos, 15 years
old and up traveled
within this period
EACH INDIVIDUAL
MADE 2 TRIPS AND
VISITED TWO
PLACES IN THE
COUNTRY FOR THE
SIX MONTH PERIOD
RESULTS FROM 2005 HOUSEHOLD SURVEY
ON DOMESTIC VISITORS, April – Sept 2005

ALMOST 99% OR 23.5 Million domestic travelers had independent
domestic trips

17.5 Million spend an average of:
1.
2.
3.
4.
5.
6.
7.
Accommodation
P1,200.00
Food and beverage
P 400.00
Sight seeing and guided tour P 600.00
Entertainment & Recreation
P 300.00
Local transport (sea,air or land) P 400.00
Shopping
P1,100.00
Others
P3,200.00
RESULTS FROM 2005 HOUSEHOLD SURVEY
ON DOMESTIC VISITORS, April – Sept 2005
MOST FREQUENTLY
VISITED PLACES:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
NCR
CAVITE
BATANGAS
LAGUNA
ILOILO
BULACAN
NUEVA ECIJA
PAMPANGA
CEBU
PANGASINAN
ALBAY
Visitor Profile And
Travel Characteristics, 2006
Mode of Travel
 Air (98.73%)
 Sex
 Male (61.22%)

Sea (1.27%)
Female (37.40%)

Average Age
38.26 years old

Purpose of Visit
 Holiday
46.99%
 VFR (Visit Friends / Relatives) 26.66%
 Business
13.18%
 Convention
1.28%
 Official Mission
0.11%
Visitor Profile And
Travel Characteristics, 2006

Frequency Visit
- First Visit
- Repeat Visit
(%)
31.27
51.30

Overall Average Length of
Stay ( Nights)
12.06
- Foreign Visitors 10.98
- Overseas Filipino 48.02

Travel Arrangement
- Independent
61.67
- Package Tour 18.56
- Not Stated
19.77

Average Daily Expenditure
(US$)
83.91
Foreign Visitors
84.70
Overseas Filipino 55.78
Foreign Visitors Expenditure
2006

Average Daily Expenditure

Major Items of Expenditure
Accommodation
Shopping
Food and Bev.
Entertainment
Local Transport
Miscellaneous
Guided Tour







US$ 83.91
US$ 25.72
22.01
20.39
7.02
4.71
2.81
0.36
Regional Statistics
Regional Destinations of Foreign Tourists
Jan-Dec 2006*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
REGION
REGION
REGION
NCR
REGION
CAR
REGION
REGION
REGION
REGION
REGION
REGION
REGION
REGION
REGION
* Preliminary
VII
IV
VI
III
I
XI
X
V
II
XIII
IX
VIII
XII
-
542,159
434,530
266,891
262,364
155,394
76,812
52,786
52,756
46,284
31,153
24,453
16,200
13,647
13,329
4,606
Regional Destinations of Domestic
Tourists Jan-Dec 2006*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Region
Region
Region
CAR
Region
Region
Region
Region
Region
Region
Region
Region
Region
Region
NCR
* Preliminary
IV
VI
VII
X
XI
XII II
V
IX
XIII I
III
VIII -
5,852,860
1,259,332
1,081,903
902,917
837,851
699,552
618,077
610,715
587,823
480,297
341,844
281,582
251,634
189,643
68,694
CLARK INT’L AIRPORT
VISITOR ARRIVALS, JAN – DEC 2006
REGION
VOLUME
EAST ASIA
37,481
ASEAN
27,093
AMERICA
8,209
EUROPE
7,046
AUSTRALASIA/PACIFIC
3,057
AFRICA
238
MIDDLE EAST
128
UNSPECIFIED
8
FILIPINOS
151,052
GRAND TOTAL FOR 2006
235,004
GRAND TOTAL FOR 2005
114,902
GROWTH RATE
104.5%
CLARK INT’L AIRPORT
International No of Flights, JAN - DEC 2006
AIRLINES
TIGER AIRWAYS
AIR ASIA
ASIANA
CR AIRWAYS/HONGKONG
AIRLINES
SHANGHAI AIRLINES
CHINA SOUTHERN
GRAND TOTAL
NO. OF FLIGHTS
954
725
278
100
5
3
2,065
Thank You!