TOURISM OPPORTUNITIES IN THE
PHILIPPINES:
THE NATIONAL TOURISM DEVELOPMENT
PLAN
Pre-Plenary Budget Hearings
Congress of the Philippines
September 20, 2013
KEY PERFORMANCE
International
VisitorINDICATORS
Arrivals
INTERNATIONAL VISITOR ARRIVALS 2012
Arrivals by Markets
Growth
Rate
Korea
11.5%
USA
4.5%
Japan
9.9%
China
3.1%
Taiwan
19.1%
Australia
12.0%
Singapore
7.6%
Canada
5.3%
Hong Kong
Malaysia
UK
2012
Germany
0
500
2011
1,000
Visitor arrivals In thousands
Arrivals by Year
4,600,000
4.3 M
4,200,000
3.9 M
3,800,000
3.5 M
3,400,000
3,000,000
2010
10,000,000
23.8%
8,000,000
8.4%
6,000,000
1,500
2012
Projected Arrivals
5.9%
9.5%
2011
5.6 M
4,000,000
2,000,000
0
2011 2012 2013 2014 2015 2016
2013 INTERNATIONAL
TOURISTARRIVALS
ARRIVALS
INTERNATIONAL
VISITOR
JANUARY - JULY
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
COUNTRY
KOREA
USA
CHINA
JAPAN
AUSTRALIA
SINGAPORE
TAIWAN
CANADA
HONGKONG
UNITED KINGDOM
MALAYSIA
GERMANY
OTHERS
GRAND TOTAL INCLUDING OTHERS
Source: A/D Cards and Shipping Manifests
JAN - JULY 2013
706,998
417,904
246,967
245,817
118,186
100,334
95,545
77,656
76,555
71,088
62,893
41,990
536,948
2,798,881
GROWTH RATE
22.30%
2.72%
48.58%
6.21%
11.42%
18.10%
-30.09%
3.78%
12.84%
6.75%
4.84%
5.14%
7.17%
11.05%
INTERNATIONAL
VISITOR
ARRIVALS
AVERAGE
LENGTH OF
STAY (IN
NIGHTS)
INTERNATIONAL
VISITOR(IN
ARRIVALS
VISITOR EXPENDITURE
US$)
INTERNATIONAL
VISITOR
VISITOR RECEIPTS
(IN US$ ARRIVALS
MILLION)
CAGR = 29.6%
CAGR = 5.2%
INTERNATIONAL
VISITOR ARRIVALS
DOMESTIC TRAVELLERS,
2012
Top Overnight Destinations
Domestic Travellers by Year
TOTAL
(Partial as of June 2012)
Metro Manila
974,397
19.6%
45,000,000
Boracay Island
702,798
14.1%
40,000,000
Cebu City
613,279
12.3%
35,000,000
Lapu Lapu City
396,289
8.0%
30,000,000
Puerto Princesa City
359,320
7.2%
25,000,000
Baguio City
338,992
6.8%
20,000,000
Albay
290,845
5.9%
Batangas
281,243
5.7%
Cagayan de Oro City
200,295
4.0%
Davao City
184,362
3.7%
Bohol
171,823
3.5%
Iloilo City
152,377
3.1%
Clark
151,454
3.0%
45,000,000
Negros Oriental
150,067
3.0%
40,000,000
Domestic
Foreign
0.0
175.0
350.0
525.0
700.0
40.7 M*
CAGR = 6.1%
2008 2009 2010 2011 2012
* Estimate
Projected Domestic Travellers
60,000,000
55,000,000
CAGR = 10.6%
50,000,000
44.1 M
35,000,000
30,000,000
2011 2012 2013 2014 2015 2016
NTDP 2011 – 2016
STRATEGIC DIRECTIONS
1. Develop and market competitive
tourist products and destinations
2. Improve market access, connectivity
and destination infrastructure
3. Improve institutional governance
and human resources
PRODUCT - MARKET DEVELOPMENT
Portfolio
Nature
Tourism
Cultural
Tourism
Sun and Beach
Tourism
Leisure and
Entertainment
Tourism
MICE & Events
Tourism
Health,Wellness,
and Retirement
Tourism
Cruise and
Nautical Tourism
Diving & Marine
Sports Tourism
Education
Tourism
PRODUCT – MARKET STRATEGIES
MARKETS
PRESENT
PRESENT
NEW
Market Penetration
Product Development
Aggressive promotion strategies
targeted to Japan, South Korea,
USA, China to increase the
number of overnight visitors.
Quality improvement strategies
that seek to increase daily
tourist expenditure through
higher quality tourist products
and services.
NEW
Main Strategy
Market Development
Diversification
Aggressive promotion strategies
targeted to Australia, Singapore,
Malaysia, Canada market to
increase the number of overnight
visitors.
Niche Strategy
Product development and
diversification strategies to
increase the average tourist
length of stay.
Secondary Strategy
NTDP 2011- 2016
STRATEGIC DIRECTIONS
1. Develop and market competitive
tourist products and destinations
2. Improve market access, connectivity
and destination infrastructure
3. Improve institutional governance
and human resources
TOURISM ROAD INFRASTRUCTURE
PROGRAM
INTERNATIONAL
VISITOR ARRIVALS
(DOT - DPWH CONVERGENCE PROGRAM)
• Developed the Tourism
In Billion Pesos
14,000
12,000
12,000
10,000
• Endorsed for approval
7,920
8,000
by the Tourism
Coordinating Council
167 road projects with
total of 598 kms worth
P 12 Bil for FY 2013
Budget
6,000
4,000
2,000
1,390
0
2011
2012
Road Infrastructure
Project (TRIP)
Prioritization Criteria
2013
• Organized capacity
building for CTWG and
RTWGs
CHALLENGES: AIRPORT AND SERVICES
Projected Arrivals in International Gateways - 2016
Inbound
Foreign
Passengers
Total Foreign
Passengers
Movement
Percent
Share
 Airport Development
and Promotion
Manila
3,631,695
7,263,390
36.3%
 Immigration Officers/
Equipment
Mactan – Cebu
2,483,991
4,967,982
24.8%
Clark
1,723,222
3,466,444
17.2%
Kalibo – Iloilo
821,806
1,643,612
8.2%
Davao
401,381
802,762
4.0%
Laguindingan
364,873
729,746
3.7%
Puerto Princesa
198,327
396,654
2.0%
Laoag
134,739
269,478
1.4%
Others
239,966
479,932
2.4%
10,000,000
20,000,000
100%
Airports
Total
PASSENGER TRAFFIC
IN MANILA
AND
INTERNATIONAL
VISITOR
ARRIVALS
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
AIR SEAT ENTITLEMENTS AND UTILIZATION
2012
MARKETS
Korea
Japan
China
Taiwan
Australia
Singapore
Hong Kong
Canada
Malaysia
United Kingdom
Germany
India
Indonesia
Thailand
Vietnam
TOTAL
SEAT ENTITLEMENTS
PH
FOREIGN
1,482,000
1,482,000
1,856,400
1,856,400
702,000
702,000
522,600
522,600
312,000
208,000
2,280,044
2,280,044
1,367,600
1,367,600
109,200
109,200
354,640
354,640
218,400
218,400
109,200
109,200
109,200
109,200
156,000
156,000
355,680
355,680
312,000
312,000
10,246,964
10,042,964
PH
1,177,800
533,624
617,760
239,358
250,068
882,544
958,880
109,200
355,680
0
0
99,112
147,368
313,976
122,304
5,807,674
ENTITLEMENT UTILIZATION
%
FOREIGN
79.47%
1,339,624
28.75%
247,520
88.00%
182,936
45.80%
178,204
80.15%
95,368
38.71%
721,136
70.11%
897,468
100.00%
0
100.29%
346,840
0.00%
0
0.00%
0
90.76%
0
94.47%
0
88.27%
158,600
39.20%
0
56.68%
4,167,696
%
90.39%
13.33%
26.06%
34.10%
45.85%
31.63%
65.62%
0.00%
97.80%
0.00%
0.00%
0.00%
0.00%
44.59%
0.00%
41.50%
AIRCRAFT DELIVERIES
ESTIMATED AIRCRAFT DELIVERY OF
PHILIPPINE AIR CARRIERS
January 2013 – March 2014
AIRBUS 320
AIRBUS 321
14
7
AIRBUS 330
BOEING 777
10
2
PPA Recommended
Ports of Call
Luzon
1. South Harbor, Manila
2. Poro Point, San Fernando City
3. Batangas Port, Batangas City
4. Subic Bay Freeport, Zambales
Visayas
5. Cagban Jetty Port, Boracay
6. Cebu Port, Cebu City
7. Iloilo Port, Iloilo City
8. Catagbacan Port, Bohol
Palawan
9. Coron Port
10. El Nido Port
11. Puerto Princesa Port
Mindanao
12. Davao Port
13. Cagayan de Oro Port
14. Siargao Port, Surigao del Norte
Cagban Jetty
Port
INTERNATIONAL
VISITOR
ROOM PROJECTION
INARRIVALS
2016
Destination
Clusters
Island
Grouping
Room Supply
(Available + Pipeline)
Available in
2012
In the
Pipeline
Room Gap
In Critical
Destination
Clusters
Northern PH
71,804
8,206
16,025
Central PH
61,978
5,129
20,757
Southern PH
28,922
1,686
570
Total PH
162,704
15,021
37,352
Critical Cluster
Destinations
Room
Demand
Available
Room
In the
Pipeline
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
9,851
6,855
106
2,890
Cordillera
Room
Gap
• 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
STRATEGIC DIRECTIONS
1. Develop and market competitive
tourist products and destinations
2. Improve market access, connectivity
and destination infrastructure
3. Improve institutional governance
and human resources
PROGRAMS
• 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 COMPETITIVENESS
2013 Headline
1. Switzerland
2. Germany
3. Austria
1. Singapore
2. Australia
PHILIPPINES
PHILIPPINES
24. Pakistan
25. Bangladesh
Strengths
138. Burundi
139. Chad
140. Haiti
PH as most
improved
country in
Asia and the
Pacific
Weaknesses
Natural Resources
Protection of Foreign Investments
Price Competitiveness
Starting Up a Business
Visa Regulation
Safety and Security
Air Services Agreement
Health and Hygiene
Transport and ICT Infrastructure
Source: World Economic Forum
INTERNATIONAL
ARRIVALS
TARGETS,VISITOR
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
4,431.0
4,914.0
5,431.0
156.0
205.4
269.9
40.7
44.1
47.7
162.7
176.2
191.0
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
Average Daily Expenditure (Pesos)
Visitor Receipts (Pesos bil)
Domestic Tourism
Domestic Travellers (mil)
Domestic Trips (mil)
Length of Stay (nights)
ECONOMIC IMPACT
PROJECTION
INTERNATIONAL
VISITOR
ARRIVALS
2012 - 2016
INDICATORS
2012
2013
2014
2015
2016
1,308.0
1,504.0
1,679.1
1,957.5 2,307.1
650.8
748.3
835.4
974.0 1,147.9
6.2
6.7
7.0
7.8
8.7
4.2
4.9
5.4
6.3
7.4
11.6
13.0
14.2
16.2
18.8
Gross Domestic Product
Total Visitor Receipts
(Pesos bil)
Tourism GVA (Pesos bil)
Share to GDP (%)
Employment
Tourism employment (mil)
Share to National
Employment (%)
Thank You!