Tourist Behavior
Characteristics of tourists to the Philippines
TOP COP Program
The Tourism Product
A
combination of the ff:
1)
Tangible elements – the natural
environment, hotels, restaurants,
resorts, food, support facilities like
airports, aircraft, roads, food,
destination, festivals, etc.
2)
Intangible elements - Image,
hospitality, courtesy, friendliness,
helpfulness, ambiance, security,
etc.
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consulting
Thus, the tourism product we are offering is:
TANGIBLES
+
INTANGIBLES
= TOURIST EXPERIENCE

Hence, we are successful if the guests come
home with a positive and memorable
experience and tell their friends about it back
home
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“Always tailor the product to
the market, not the other
way around”

Find out what the tourists need and want and
then develop facilities and provide services that
will satisfy these needs and wants

Tayo ang makikibagay at makikisama sa mga
turista
Outline
 What
are the top markets of the
Philippines?
 Where do they go in the
Philippines?
 What are their tourist market
behavior patterns?
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Philippine Top Markets
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2010 Top Markets By Volume
Rank
Country
2010
% Increase
% Share
1.
KOREA
740,622
48.74%
21.04%
2.
USA
600,165
3.00%
17.05%
3.
JAPAN
358,744
10.39%
10.19%
4.
CHINA
187,446
20.92%
5.32%
5.
AUSTRALIA
147,489
11.44%
4.19%
6.
TAIWAN
142,455
39.29%
4.05%
7.
HONGKONG
133,746
8.93%
3.80%
8.
SINGAPORE
121,083
23.17%
3.44%
9.
CANADA
106,345
7.41%
3.02%
10.
UNITED KINGDOM
96,925
6.50%
2.75%
11
MALAYSIA
79,894
16.04%
2.26%
12
GERMANY
58,725
5.03%
1.67%
Philippine Top Markets
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2009 Arrivals
CHINA, 155,019
JAPAN, 324,980
AUSTRALIA, 132,330
HONGKONG, 122,786
TAIWAN, 102,274
CANADA, 99,012
SINGAPORE, 98,305
UNITED
KINGDOM, 91,009
KOREA, 497,936
MALAYSIA, 68,679
GERMANY, 55,912
USA, 582,537
Outline
 What
are the top markets of the
Philippines?
 Where do they go in the
Philippines?
 Who are these tourists?
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Where do they go?
Destinations
2010
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2009
Growth
Rate (%)
1
Metro Manila
848,318
724,572
17.11
2
Cebu
734,531
703,965
4.34
3
Boracay
378,694
337,664
12.15
4
Camarines Sur
348,139
344,459
1.0
5
Baguio City
318,677
373,820
-14.75
6
Davao City
275,658
273,492
0.79
7
Zambales
159,025
157,591
0.91
8
Bohol
143,276
139,162
2.96
9
Camiguin
105,262
90,269
16.61
10
Negros Oriental
102,394
98,738
3.7
11.
Cagayan
83,822
80,739
3.82
12.
Ilocos Norte
81,724
88,366
-0.52
13.
Puerto Princesa
73,986
54,754
35.12
3,653,706
3,467,591
5.01
TOTAL
Source : DOT Regional Offices/Local Tourism Offices/Accommodation Establishments 2009 and 2010 (January to May)
Outline
 What
are the top markets of the
Philippines?
 Where do they go in the
Philippines?
 What are their tourist market
behavior patterns?
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consulting
Why target the Europeans ?
Sophisticated / Well-educated / Experienced
Cultural / ethnic-oriented and open to
learning experiences/Strong interest in Asia
and the Philippines
Environment-conscious; lovers of sunny
exotic destinations
High disposable income
Highest propensity to travel; part of their
lifestyle
Long-staying (uninterrupted three to six
weeks)
Clear preference for staying in hotels and
resorts
Reasons for Choosing the
Philippines

Value for money

Beaches / Aqua Sports (Sun/Sand & Sea)

Adventure Activities (Scuba Diving,
Trekking, etc.)

Natural / Island-setting / Ecotourism

Cultural Experience e.g. Cuisine,
Festivals

Warm and Friendly People

Language Advantage
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Things Like/Dislike About the Philippines
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LIKES




Warm hospitality
and kindness of
people
Beautiful
scenery/nice
beaches
Good climate
food/delicacies
Apparel/textile/
garments
DISLIKES
Heavy traffic/ bad
roads
Air & water pollution/
dirty environment
Widespread poverty/
beggars/
unemployment
Rainy/humid weather
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United Kingdom
Sex
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Frequency of Visit
1. Male
64.54%
1. First Visit
22.74%
2. Female
35.04%
2. Repeat Visit
61.99%
Age Group (Average)
Travel by Arrangement
1. 35 - 44
22.36%
1. Package
2. 45 - 54
21.22%
2. Independent
3. 55 - 64
17.47%
3.44%
80.90%
Residence and Occupation
Purpose of Visit
1. Professionals
39.55%
1. Business
13.61%
2. Student/Minors
8.95%
2. Holiday
46.85%
3. Retired/Pensioner
7.61%
3. VFR
32.20%
United Kingdom
Interested in activities like dive, general leisure
Comes more often from big cities than from rural areas
Has a medium/high level of education and good purchase
capability, having an annual gross income of USD98,313
Stays 15.26 nights on average
Gets information about the Philippines from friends & relatives
Decides on his own when travelling to the Philippines
Counts every centavo
Loves Philippine seafood
Very safety conscious
Go for beach holidays and love the sun
Lager drinkers
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Singapore
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Outbound to the world
ASEAN
Singapore
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Sex
Civil Status
Male
74.85%
Married
72.20%
Female
24.73%
Single
24.60%
Average Age (yrs.)
39.78
Purpose of Visit
Influencers
1 Made own decision
66.70%
29.20%
1 Business
43.02%
2 Friends / Business Associates
2 Holiday
35.01%
3 Spouse
3 VFR
10.92%
Occupation
Factors in Choosing a Destination
4.20%
1 Professionals/Managerial/ Admin.
54.50%
1 Have friends & relatives in RP
33.30%
2 Clerical, Sales, Services
7.48%
2 Past experience, been to RP
25.00%
3 Student / Minors
6.57%
3 Proximity to own country
16.70%
Annual Gross Income
(US$)
60,343.33
Average Daily Spend
(US$)
68.75
(in nights)
5.74
Main Source of Information
1 Friends / Relatives / Bus. Associates
66.70%
Average Length of Stay
2 Previous visit
16.70%
Average Lead Time to decide (wks)
3 Internet
16.70%
5.88
Singapore
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






Travel in cheap package tours with high hotel
standards
Counts every centavo
Speak English very well
Love to eat hot and spicy food – check if no beef or
pork
Conscious in tipping
Love Philippine seafood
Very safety conscious (peace and order)
Singapore
Market Profile
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



Cash-rich but time poor
Price sensitive but always looking for
quality
Very dependent on travel information they
can read through the internet and other
travel publications
Values their time and have a tendency to
strictly adhere to the itinerary prepared
for them
Singapore
Market Profile
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




Generally aware of political issues within
the region, thus security conscious
Assertive with their preferences
Finds 3 to 4 different activities per day
interesting and enjoyable
Always on the lookout for travel freebies
and discounts
A mix of high end and bargain shopping is
very important.
Handling the SG Market
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



Ensure wide food selection especially for
Halal and vegetarian/organic food
Be ready with factual details like price
comparison, travel time, current events,
etc.
Provide a good amount of time for
shopping
Prefers to finish tour activities early in the
evening (as they are fond of
nightlife/entertainment)
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Canada
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Outbound to the World
ASEAN
Canada
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Sex
Civil Status
Male
49.43%
Married
58.90%
Female
50.22%
Single
25.80%
Average Age (yrs.)
39.36
Purpose of Visit
Influencers
1 Friends / Business Associate
53.30%
40.00%
1 VFR
47.75%
2 Made own decision
2 Holiday
36.49%
3 Other family members
3 Business
4.70%
Factors in Choosing a Destination
1 Have friends & relatives in RP
2 Past experience
3 Recommended by friends
36.70%
6.70%
20.00%
Main Source of Information
3.30%
Occupation
1 Professionals/Managerial/ Admin.
22.18%
2 Retired / Pensioner
11.13%
3 Student / Minors
11.64%
Annual Gross Income
(US$)
-
Average Daily Spend
(US$)
47.29
(in nights)
19.29
1 Friends / Relatives/ Associates
56.70%
Average Length of Stay
2 Internet
26.70%
Average Lead Time to decide (wks)
3 Travel Agents
6.70%
18.60
Canada

Filipino-Canadians (60% +)


Recession Proof Segments



First, Second, Third Generation
Dive
Medical Travel
Other Niches



Adventure/ Birdwatching
M.I.C.E.
Cruise tourism
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Taiwan
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Outbound to the world
ASEAN
Taiwan
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Sex
Civil Status
Male
58.01%
Married
64.90%
Female
39.94%
Single
34.10%
Average Age (yrs.)
37.87
Purpose of Visit
Influencers
1 Friends / Business Associates
55.30%
33.00%
1 Holiday
58.93%
2 Made own decision
2 Business
13.07%
3 Spouse
3 VFR
10.29%
Occupation
Factors in Choosing a Destination
6.00%
1 Professionals/Managerial/ Admin.
37.40%
1 Have friends & relatives in RP
33.60%
2 Student / Minors
7.44%
2 Curiosity, never been to RP
30.80%
3 Housewives
3.99%
3 Television / film
6.00%
Main Source of Information
Annual Gross Income
(US$)
28,280.96
Average Daily Spend
(US$)
48.38
(in nights)
6.21
1 Travel Agents
39.60%
Average Length of Stay
2 Friends / Relatives / Bus. Associates
31.30%
Average Lead Time to decide (wks)
3 Internet
19.70%
3.47
Taiwan
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










Seek flexibility in their requests, last minute changes are
common
Go for fresh and good tasting food in buffet or family style
serving
Appreciate good service standards
Need for Mandarin speaking guides to avoid miscommunication
Travel on package tours
Want Chinese food
Tipping practised and pre-oriented
Love Philippine seafood
Time and health conscious
Very safety conscious
Love to shop for Philippine specialties and delicacies
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Hong Kong
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Outbound to the world
ASEAN
Hong Kong
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Sex
Civil Status
Male
60.33%
Married
64.60%
Female
38.85%
Single
33.50%
Average Age (yrs.)
37.42
Purpose of Visit
Influencers
1 Friends / Business Associates
60.30%
32.40%
1 Holiday
60.19%
2 Made own decision
2 Business
19.04%
3 Spouse
9.41%
Occupation
3 VFR
Factors in Choosing a Destination
7.40%
1 Professionals/Managerial/ Admin.
38.33%
10.06%
1 Have friends & relatives in RP
44.10%
2 Clerical, Sales, Services
2 Past experience, been to RP before
14.70%
3 Students /Minor
3 Curiosity, never been to RP
10.30%
Annual Gross Income
(US$)
77,200.00
Average Daily Spend
(US$)
75.47
(in nights)
7.12
Main Source of Information
9.66%
1 Friends / Relatives/ Associates
60.30%
Average Length of Stay
2 Internet
16.20%
Average Lead Time to decide (wks)
3 Travel Books/ Guide Books / Directories
7.40%
7.78
Hong Kong
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
Appreciate flexibility in their requests, last minute changes are common

Look for fresh and good tasting food in buffet or family style serving

Seek good service standards

Need for Mandarin speaking guides to avoid miscommunication

Travel in cheap package tours with high hotel standards

Counts every centavo

Very meticulous with Chinese food without coconut oil

Tipping is pre-oriented in Hongkong

Love Philippine seafoods

Very safety conscious

Time and health conscious

Go shopping in big department stores
Handling HK and
Taiwanese Tourists
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consulting




Be flexible to their requests and demands as
last minute changes are not uncommon
Ensure that fresh good food is always
available. They prefer to eat buffet or family
style
Maintain service standards as minor
deficiencies or problems are often complained
To avoid miscommunication, provide the
assistance of a Mandarin translator/guide
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Australia
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Outbound to the world
ASEAN
Australia
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Sex
Civil Status
Male
61.01%
Married
59.00%
Female
38.67%
Single
36.20%
Average Age (yrs.)
39.90
Purpose of Visit
Influencers
1 Made own decision
44.20%
44.20%
1 VFR
40.28%
2 Friends / Business Associates
2 Holiday
37.37%
3 Spouse
3 Business
12.91%
Occupation
Factors in Choosing a Destination
7.10%
1 Professionals/Managerial/ Admin.
29.56%
11.59%
1 Have friends & relatives in RP
38.30%
2 Student / Minors
2 Recommended by friends
17.50%
3 Retired / Pensioner
3 Past experience, been to RP before
14.30%
Annual Gross Income
(US$)
125,800.00
Average Daily Spend
(US$)
82.70
(in nights)
11.58
Main Source of Information
7.41%
1 Friends / Relatives/ Associates
59.10%
Average Length of Stay
2 Internet
17.50%
Average Lead Time to decide (wks)
3 Travel Agents
9.70%
12.60
Australia
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









Prefer individual travel
Appreciate good service
Look for nature and local cultural experience
Like to do what the locals do
Shop for

Bargain

High End
Go for wellness
Tips are given based on service rendered
Beer drinkers
Shoppers of essential goods and very few handicrafts
Good, clean beds in spartan rooms is expected
Australia
Nature of Market
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




Prefer individual travel, free and easy
rather than group travel
Highly appreciative of good services and
experiences
Prefer activities in natural setting with
opportunities for cultural
experiences/interaction
Focuses on the competitive pricing of
products/services offered to them
Finds 1 to 2 activities or locations per day
interesting and enjoyable
Australia
Handling Australian Tourists
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




Provide opportunities for free time or
activities at their leisure
A good mix of up-market and bargain
shopping is important
Suggest wellness activities to complement
the tour
Prefers to have plated dinning
Provide factual information like average
cost comparison, duration of travel,
expected destination etc.
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The Australian tourist
Hi
Moyt!
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China
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Outbound to the World
ASEAN
China
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Sex
Civil Status
Male
56.15%
Married
62.00%
Female
40.97%
Single
37.50%
Average Age (yrs.)
35.05
Purpose of Visit
1 VFR
8.09%
Influencers
1 Friends / Business Associate
48.90%
2 Made own decision
38.20%
2 Holiday
55.97%
3 Other family members
3 Business
11.23%
Occupation
Factors in Choosing a Destination
6.20%
1 Professionals/Managerial/ Admin.
26.63%
1Curiosity, never been to RP
45.50%
2 Student / Minors
7.75%
2 Have friends & relatives in RP
25.30%
3 Clerical, Sales, Services
3.87%
3 Inexpensive to spend holiday
4.50%
Main Source of Information
Annual Gross Income
(US$)
16,063.88
Average Daily Spend
(US$)
54.27
(in nights)
8.79
1 Internet
35.40%
Average Length of Stay
2 Travel Agent
31.50%
Average Lead Time to decide (wks)
3 Friends / Relatives/ Associates
25.30%
3.62
China
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






See natural scenery
Go to the beach/ocean and visit historical sites
Taste local food/likes buffet or lauriat
Learn about local cultures
Go shopping
Travel in package tours with regular hotel standards but
expect amenities in 3-star hotels like they have in China
Some concerns

Safety

High Cost

Lack of family activities

Visa process

Lack of direct flights
China
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




Count every centavo
Speak little English
Tipping is pre-orinted
Time and health conscious
Usually have local Chinese contacts or associations for
their activities
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Nee
How
Maah
The Chinese tourist
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Japan
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Outbound to the World
ASEAN
Japan
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Sex
Civil Status
Male
77.41%
Married
89.00%
Female
21.44%
Single
10.20%
Average Age (yrs.)
40.60
Purpose of Visit
Influencers
1 Friends / Business Associate
77.20%
1 VFR
14.15%
2 Made own decision
20.10%
2 Holiday
58.13%
3 Other family members
16.50%
3 Business
15.60%
Occupation
Factors in Choosing a Destination
1 Have friends & relatives in RP
52.80%
2 Curiosity, never been to RP
17.90%
3 Recommended by friends
9.30%
Main Source of Information
1 Professionals/Managerial/ Admin.
28.51%
2 Student / Minors
20.73%
Annual Gross Income
(US$)
79,588.86
Average Daily Spend
(US$)
89.67
(in nights)
5.63
1 Friends / Relatives/ Associates
77.20%
Average Length of Stay
2 Myself
13.60%
Average Lead Time to decide (wks)
3 Internet
4.10%
10.95
Japan
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






Go for beach holidays
Do some sightseeing
Visit Historical & Cultural sites
Travel in package tours
More repeaters than first timers
Speak little English
Market Segments
 Ladies
 Seniors
 Golfers & Divers
Japan
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



Love Philippine seafood
Very safety conscious
Time and health conscious
Workaholics, bath conscious, groupism, consensusmindedness, dependency, inner-outer world, faceconsciousness
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The Japanese tourist
Mushimushi
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U.S.A.
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Outbound to the World
ASEAN
U.S.A.
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Sex
Civil Status
Male
54.73%
Married
66.70%
Female
44.97%
Single
25.90%
Average Age (yrs.)
40.60
Purpose of Visit
Influencers
1 Friends / Business Associate
46.50%
44.40%
1 VFR
50.40%
2 Made own decision
2 Holiday
26.66%
3 Other family members
3 Business
8.31%
Factors in Choosing a Destination
3.50%
Occupation
1 Professionals/Managerial/ Admin.
26.81%
1 Have friends & relatives in RP
42.30%
2 Retired / Pensioner
13.48%
2 Past experience
14.10%
3 Student / Minors
10.63%
3 Recommended by friends
13.40%
Annual Gross Income
(US$)
93,631.43
Average Daily Spend
(US$)
65.08
(in nights)
15.06
Main Source of Information
1 Friends / Relatives/ Associates
64.10%
Average Length of Stay
2 Internet
16.90%
Average Lead Time to decide (wks)
3 Travel Agents
3.50%
16.50
U.S.A.
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







Filipino-Americans (60%+)
Dental/Medical
Leisure
 Beaches
 History & Culture
 Natural Landscapes
 Adventure: Caving, Wildlife, Dive
 Shopping
Humanitarian and medical missions
More repeaters than first timers
Want continental food or classy food
Very safety conscious
Want everything like home – hot and cold shower, airconditioned
rooms
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consulting
The American tourist
I used to
be Pinoy
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South Korea
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Outbound to the World
ASEAN
South Korea
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Sex
Civil Status
Male
57.76%
Married
76.80%
Female
40.22%
Single
23.20%
Average Age (yrs.)
43.24
Purpose of Visit
1 VFR
7.62%
2 Holiday
62.79%
3 Business
8.88%
Factors in Choosing a Destination
Influencers
1 Friends / Business Associate
39.20%
2 Spouse
19.90%
3 Other family members
16.50%
Occupation
1 Professionals/Managerial/ Admin.
28.51%
20.73%
1 Have friends & relatives in RP
44.70%
2 Student / Minors
2 Family / Relatives
12.10%
3 Housewives
3 Television/Film/Radio/Internet
11.40%
Annual Gross Income
(US$)
29,466.67
Average Daily Spend
(US$)
116.59
(in nights)
7.34
Main Source of Information
6.13%
1 Friends / Relatives/ Associates
52.20%
Average Length of Stay
2 Internet
37.20%
Average Lead Time to decide (wks)
3 Travel Agents
9.80%
5.10
South Korea
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











Usually travel in groups
Have tendency to converse aloud
Visit the beach
Do some recreational activities
Visit friends
Conduct business
Study (ESL, college degree, graduate studies)
Shop (go for designer brands)
Go for spas,
Eat spicy food trip, Go drinking, Visit casinos
Play golf
Tipping is not practised in Korea
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The South Korean tourist
I came to
Philippines
to learning
English
Germany
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consulting
Sex
Frequency of Visit
1. Male
65.37%
1. First Visit
26.34%
2. Female
34.06%
2. Repeat Visit
59.86%
Age Group (Average)
Travel by Arrangement
1. 35 - 44
23.01%
1. Package
2. 45 - 44
25.54%
2. Independent
3. 55 - 64
15.95%
9.35%
70.43%
Residence and Occupation
Purpose of Visit
1. Professionals
27.99%
1. Business
13.11%
2. Student/Minors
8.71%
2. Holiday
54.45%
3. Retired/Pensioner
4.12%
3. VFR
25.35%
GERMANS
Travel in package tours
 Know how to tip
 Make sure everything mentioned in the brochure is
included
 Love Philippine beer, more on meat than seafood
 Very time conscious
 Go for the cultural aspect of the tourGermans prefer
rustic, tropical settings where they can relax
 They love to experience local culture and are very
interested in interacting with local people
 Most German tourists speak English fluently
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MIDDLE EAST
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Travel individually or with the entire family
Speak English
Look for accommodation with cooking facilities,
require halal food, need prayer rooms
Seek nature, not much of history and culture
Very generous with tips
Love Philippine seafood, disdain pork
Very safety conscious
Love to shop for “pasalubongs” like trinkets
Time is relative, they are on vacation
Many love the nightlife and casinos but should not
be caught on video, camera
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Malaysia: Market Profile
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Predominantly Muslim
Prefer to make travel arrangements with
agents in order to get more travel tips and
advice
Interested in attractions or trivia that
makes the Philippines’ and Malaysia’s
culture similar yet different in certain
aspects
Mid-range and bargain shopping is very
important
Handling the MH Market
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Halal Food is very important. In case Halal
food is not available, politely offer
alternative meals such as fresh fruits or
vegetables.
While on tour, constantly provide travel
information
Allow a good amount of time for shopping
(mostly for bargain)
Avoid discussion of religious or political
topics
INDIA
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International holiday as 2nd highest desire after owning a house;
foreign travel is
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Travel in cheap package tours with high hotel standards
Speak very accented English
Very meticulous with food – chilies and curries
Tipping is on case-to-case basis
Very safety conscious
Time and health conscious
Go for bargain shopping places like under Quiapo bridge/Very pricesensitive
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an elitist activity/ has snob value/ status symbol
charm of seeing new destinations/escape Indian heat
Price negotiation important part of buying process
Willing to spend more on hotels than airlines
Indian meals very important (strict vegetarian)
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Russia
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Sex
Frequency of Visit
1. Male
53.44%
1. First Visit
63.27%
2. Female
43.98%
2. Repeat Visit
19.76%
Age Group
(Average)
Travel by Arrangement
1. 25 - 34
29.36%
1. Package
33.39%
2. 35 - 44
28.67%
2. Independent
33.44%
3. 45 - 54
19.70%
Residence and Occupation
Purpose of Visit
1. Business
2. Holiday
3. VFR
1. Professionals
41.19%
6.23%
2. Clerical, Sales
0.66%
74.66%
3. Student/Minors
6.52%
2.75%
Growth Factors and Travel Behaviour

Increasing income and a rapidly
developing tourism industry has made
Russia into the fastest growing outbound
country in Europe
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Demand for trips continues to shift
towards more expensive travelling, such
as cruises, individual tours, extreme
tourism or visiting exotic countries
Privatization of travel companies will
bring higher standard of service
Prices for air tickets for popular
countries are decreasing as many charter
flights are organized during high season
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Philippines is competitively priced due
to USD weakness, thus they can afford
to stay in their preferred 4/5 star hotels
Russian travelers have significant
spending power, looking for 4/5 star
hotels with high grade service
They visit the Philippines usually for
beach resorts, often combined with
amateur diving and sightseeing
Majority of Russian visitors prefer to
stay in luxurious hotels
Other visit purposes are technical
diving, business, and traditional
medicine or healing
Our Tourists!
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the race to
10 million tourists
MARKET
DEVELOPMENT
Our take-off point
SECRETARY’S INSTRUCTIONS
“Market development is your
most important job from now on”
NATIONAL TOURISM DEVELOPMENT PLAN
Strategic directions:
1. Develop and market competitive products and
destinations
2. Improve market access and connectivity
3. Improve governance and human resource capabilities
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Scope of Market Development
1. Research and Analysis
Outbound trends and travelers profile of existing and new target markets
Profile of inbound travelers to the Philippines (in coordination with
OTPRIM)
Competitors and what they offer
2. Networking with New Partners
Building relationships with new partners
including route planners of
airlines and
cruise companies,
special interest
associations,
medical institutions,
ESL groups, government
counterparts
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Scope of Market Development
3. Niche Market and Opportunity
Market Development
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Niche market:
new demographic, psychographic and institutional segments
Opportunity market:
new source country markets with potential for high growth and yield
4. Route Development
Promoting air access opportunities in the Philippines by helping develop
new routes from target source markets to secondary destinations and
encouraging more chartered flights to the
country
Unlocking barriers to entry (CIQ)
Market Development
Strategy
NICHE MARKETS
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ESL
Health,
Wellness
and Medical
Dive
Expatriates
ESL
Market potential
Korea
China
travel) studied abroad in 2011
• ESL students from Japan grew
from 5,000 in 2010 to 16,000 in
2012
• Study abroad agents in Japan
increased from 5 companies in
2009 to 21 in 2012
About 35,000 Russian students
study abroad each year
Vietnam
• 500,000 additional English-speaking skilled workers needed by
2015 by the Vietnamese
• 85% of Vietnam’s English teachers lack confidence to teach the
language.
• 84,820 students in HCMC of below average rating in English
proficiency
• Vietnamese find the Philippines as a good destination for study
tour next to Singapore
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• Around 250,000 studied abroad in
2011 with about 39.3% for ESL • 816,000 (5.1% of total outbound
Japan
Far
East
Russia
• 2.1 million students sent abroad
from 2000 to 2010 with annual
growth rate of 28.2%.
• 340,000 studied abroad in 2011
Dive
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Market potential
China
Other
Asia
Europe
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• 93 registered dive centers located in Northern
China Region such as Shanghai and Beijing, 79
registered dive centers located in Southern China
Region
• 12 million divers
• Malaysia – 120,000 divers
• Thailand – one dive association
with 350,000 members
• Hong Kong – 16 big dive clubs
•France – 400,000
6 million total divers
•Italy – 800,000
Russia – 650,000
•Spain – 800,000
UK – 800,000
•Other European Countries – 500,000
Germany – 3.2 M
Dive
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Ability of Philippines to Win
Center of the Center
of Marine
Biodiversity
Variety of Dive Spots
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Year-round diving Professional and
caring service
providers
Value for Money
Ease of
Communicat
ion
Diverse
supporting
attractions and
Health and
Market Development Strategy
Wellness
Target USA, Canada
and Russia
Promote Manila and
Cebu as key
destinations
• Manila’s accredited hospitals by the US-based Joint
Commission Internationale (JCI) - St. Lukes Hospital,
Medical City, Makati Medical Center and by Accreditation
Canada – Manila Doctors
• Cebu’s Chong Hua Hospital accredited by US JCI
Provide quick access
to medical
treatments where
services have higher
demand
• Cosmetic & aesthetic surgery, liposuction, dental and eye
care treatments, executive check ups, etc.
• Treatments that have long waiting list for an elective
procedure in home country or which are not covered
by insurance companies in the developed countries
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JUST FOR EXPATS
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Short term promotional program designed for
targeted expats including diplomats, middle and
senior managers, and consultants.
Time frame: August to December 2013
Components
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Special Tour Programs
Tactical Ads and Joint Promo
Travel Fairs
Networking
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WHY THE EXPATS?
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Have a high net worth therefore have more
disposable income
Less price sensitive
They always travel as a family (almost)
Most enjoy double holiday specially for those with
foreign missions.
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WHY THE PHILIPPINES?
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Proximity
Friendliest people per annual visitor survey
English speaking
Unique culture (most Americanized in Asia and
European/Latin influence)
More purchasing power (vs PHP)
Only Christian-dominated country in Asia
Their holiday season (July – October) coincides with
the lean season of Ph
HONG KONG
SINGAPORE
CHINA
TARGET COUNTRY MARKETS
DOT’s New Thrust – Market Development

Opportunity Markets
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India
Middle East
Russia
Vietnam
Indonesia
Thailand
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VIETNAM
Market Development Strategy
Target high-income Vietnamese, MNCs and
government agencies in booming cities – Hanoi, Ho
Chi Minh, Da Nang and Hai Phong
Promote Manila, Cebu, Davao
Position the Philippines as the best ESL destination in
Asia offering quality yet affordable English education
and as ideal destinations for corporate travel groups
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INDONESIA
Market Development Strategy
Target the growing middle-class, Baby Boomers and
Generations X particularly from Jakarta, Surabaya, Bandung &
Medan
Push Manila, Davao, Cagayan de Oro, Cebu, Bohol, Palawan
Promote shopping, entertainment, culture and Halal tours for
general leisure and corporate travel groups
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THAILAND
Market Development Strategy
Target the early to mid working-age (24-44 yrs old) executives
and entrepreneurs in Bangkok and its suburbs, Chiang Mai and
Phuket
Push Manila, Cebu, Bohol, Palawan and dive destinations
accessible from Manila, Clark and Cebu (Anilao, Mindoro,
Moalboal, Malapascua, Balicasag, Apo Island)
Promote the Philippines as a fun, enjoyable, and memorable
holiday and dive destination
Push Philippine offerings focus on culture, arts, crafts, shopping,
culinary and lifestyle
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Route Development
Work Program
Rationale
1.
To promote international air access in the
Philippines by helping develop new routes from
target source markets to secondary destinations
and encouraging more chartered flights to the
country.
2.
To create increased tourism demand through
generation of new air services for various
gateways and destinations in the country.
3.
There is growing interest among foreign carriers
to fly to relatively new destinations in the
Philippines such as Davao, Tagbilaran, Puerto
Princesa and Legaspi, Airport upgrade and the
provision of CIQ must therefore be prioritized.
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Example of Route Development Support
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Possible market development assistance

Air side (airline)
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Land side (Travel suppliers)
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Provide information on:
 Market size
 Catchment area
 Passenger traffic movement
 Aircraft traffic movement
 Tourist arrivals
 Accommodation facilities
 Occupancy rates
Provide marketing support such as:
 Sales calls
 Familiarization tours
 Brochure support
 Advertising support
Airport Side

Provide coordination support for:
 Presence of CIQ
 Viable slotting of aircraft schedule
 Provision of incentives (e.g., waiver of
landing fees, parking fees, etc. for an
agreed period)
Example of Route Development Support

Conduct of Air Talks
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Lobby for airport upgrade
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Prioritizing air talks in countries where DOT expects to get large
number of tourists (the renegotiation with concerned countries in
Europe should be prioritized in view of PAL’s announcement)
Developing and agreeing on a clear negotiation strategy for the
Philippine panel prior to any air talks
Accelerating the refurbishing of NAIA terminal 1 and the upgrading of
priority secondary airports
Ensuring that NAIA terminal 3 is fully operational by first quarter of
2014
Facilitate entry
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Providing CIQ in all airports where carriers have expressed interest to
fly to
Continuing to relax visa requirements and ensuring consistent
application of relevant policies
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Example of Route Development Support
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Conduct joint marketing and promotions
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Promoting charter flights
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Participating in aviation and tourism events (ex: Routes Asia, World
Routes, ICAO exhibit, Aviation Outlook) with airlines, DOTC, and
other government agencies such as CAB, CAAP and the airport
authorities
Launching tactical ad campaigns with the airlines
Organizing familiarization tours for network planners and other
decision makers of the airlines
Supporting inaugural flights or new services through pre-launch and
actual launch activities (ex: PAL’s Toronto-Manila launch in
November 2012, Cebu Pacific’s Dubai-Manila launch in May 2013,
Tiger Air’s Singapore-Kalibo launch in July 2013)
Short-haul (from China, Taiwan, Korea, Singaporee)
Long-haul (Russia)
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Salamat po!
Presented by:
Francisco M. Lardizabal
Head, Team Middle East