CASE STUDY ON MEASURING VISITOR EXPENDITURE FOR INBOUND TOURISM:

THE PHILIPPINES

CASE STUDY ON MEASURING VISITOR EXPENDITURE FOR INBOUND TOURISM:

THE PHILIPPINES

EVELYN B. PANTIGUndersecretary

Department of Tourism

EVELYN B. PANTIGUndersecretary

Department of Tourism

Outline of PresentationOutline of Presentation

• Visitor Sample Survey (VSS)– Objectives, Coverage, Sources– Data Collection and Generation– Limitation of Visitor Sample Survey– Compatibility with WTO Instruments

• Travel and Tourism and Statistical System– Objectives, Scope and Sources of Data– Methodology and Flow of Activities

• Relevance to the Tourism Satellite Account

• Visitor Sample Survey (VSS)– Objectives, Coverage, Sources– Data Collection and Generation– Limitation of Visitor Sample Survey– Compatibility with WTO Instruments

• Travel and Tourism and Statistical System– Objectives, Scope and Sources of Data– Methodology and Flow of Activities

• Relevance to the Tourism Satellite Account

VSS Definition

• Personal interview among foreign visitors

• Completed visitation

• Leaving for next destination or country of residence

• Personal interview among foreign visitors

• Completed visitation

• Leaving for next destination or country of residence

VSS Coverage

• Ninoy Aquino International Airport;

• Mactan-Cebu International Airport;

• Davao International Airport;

• Subic International Airport; and

• Laoag International Airport

• Ninoy Aquino International Airport;

• Mactan-Cebu International Airport;

• Davao International Airport;

• Subic International Airport; and

• Laoag International Airport

VSS Objective

• Aims to generate quantitative and qualitative data on:– Demographic profile– Travel characteristics– Visitor expenditure– Assessment of tourist services and facilities– Preferences, impressions and other

psychographic factors

• Aims to generate quantitative and qualitative data on:– Demographic profile– Travel characteristics– Visitor expenditure– Assessment of tourist services and facilities– Preferences, impressions and other

psychographic factors

VSS RespondentsVSS Respondents

• Visitors stayed at least 24 hrs but not more 59 days for the following purpose:– Go on pleasure/ vacation– Pursue business/ engage in professional work– Visit friends and relatives– Attend conventions/ conferences/ seminars– Attend an exchange program– Pursue official government mission– Pursue health reasons

• Filipino nationals permanently residing abroad on temporary visit to the Philippines

• 15 years and older

• Visitors stayed at least 24 hrs but not more 59 days for the following purpose:– Go on pleasure/ vacation– Pursue business/ engage in professional work– Visit friends and relatives– Attend conventions/ conferences/ seminars– Attend an exchange program– Pursue official government mission– Pursue health reasons

• Filipino nationals permanently residing abroad on temporary visit to the Philippines

• 15 years and older

VSS ExclusionsVSS Exclusions

• Below 15 years old• Transit or change-plane passenger who did

not leave the airport premises• Philippine immigrants or alien residents• Aliens on pre-arranged employment• Overseas contract workers• Filipinos traveling abroad as tourists

• Below 15 years old• Transit or change-plane passenger who did

not leave the airport premises• Philippine immigrants or alien residents• Aliens on pre-arranged employment• Overseas contract workers• Filipinos traveling abroad as tourists

VSS Sampling MethodVSS Sampling Method

• Grouping of flights based on day, time and flight or destination

• Conducting interview for one week at NAIA and one week once a year in other ports

• Distributing at random the week to be covered• Selecting at random respondents

– Monthly average of 600 respondents or 7,200 respondents a year

• Grouping of flights based on day, time and flight or destination

• Conducting interview for one week at NAIA and one week once a year in other ports

• Distributing at random the week to be covered• Selecting at random respondents

– Monthly average of 600 respondents or 7,200 respondents a year

VSS QuestionnaireVSS Questionnaire

• Flight and interview date

• Qualifying questions

• Travel characteristics

• Respondents impression and rating

• Tourist profile

• Flight and interview date

• Qualifying questions

• Travel characteristics

• Respondents impression and rating

• Tourist profile

VSS InterviewersVSS Interviewers

• Personal interview in English, Japanese and Chinese– Expansion program ( Korean speaking)

• Structured questionnaire

• Questions to clarify ambiguous responses

• Personal interview in English, Japanese and Chinese– Expansion program ( Korean speaking)

• Structured questionnaire

• Questions to clarify ambiguous responses

VSS Data CollectionVSS Data Collection

• All data are edited, validated, coded, encoded, and tabulated using a computer system

• All income and expenditure of tourists are expressed in US Dollar

• Average daily expenditure of visitor is calculated

• All data are edited, validated, coded, encoded, and tabulated using a computer system

• All income and expenditure of tourists are expressed in US Dollar

• Average daily expenditure of visitor is calculated

VSS ReportsVSS Reports

• Demographic profile including nationality and country of residence, age and sex, annual gross income, civil status, education and occupation

• Travel characteristics/preference– Purpose of visit, Lead times of decision, Sources of

information, Decision maker– Information on visit to the country– Travel patterns

• Ratings of tourist services and facilities• Recommendations to visit the Philippines

• Demographic profile including nationality and country of residence, age and sex, annual gross income, civil status, education and occupation

• Travel characteristics/preference– Purpose of visit, Lead times of decision, Sources of

information, Decision maker– Information on visit to the country– Travel patterns

• Ratings of tourist services and facilities• Recommendations to visit the Philippines

VSS LimitationsVSS Limitations

• Difficulty to recall information pertaining to the trip

• Refusal to cooperate• Difficulty to understand and communicate in

English• Refusal of airlines to allow interview at

business lounge

• Difficulty to recall information pertaining to the trip

• Refusal to cooperate• Difficulty to understand and communicate in

English• Refusal of airlines to allow interview at

business lounge

VSS and WTO InstrumentVSS and WTO Instrument

xLength of stay in destination

Multi purposeMulti purpose with an identified main

purpose

Purpose of visitxPre Trip ExpenditurexMode of payment

xLess than 1 day stay

xxAir arrivalsxBorder workers

xSea arrivalsxxDate of Departure

WTOVSSFactors/Consideration

Travel and Tourism Statistical System (TTSS)

• Objectives– To generate quantitative as well as

qualitative information on visitor profile and travel characteristics to serve as inputs in tourism development planning and policy formulation

– To generate statistics on the number of arrivals by country market to serve as input in the estimation of visitor receipts

• Objectives– To generate quantitative as well as

qualitative information on visitor profile and travel characteristics to serve as inputs in tourism development planning and policy formulation

– To generate statistics on the number of arrivals by country market to serve as input in the estimation of visitor receipts

TTSS Scope and CoverageTTSS Scope and Coverage

International Airport– Ninoy Aquino International Airport (NAIA)– Mactan-Cebu International Airport (MCIA)– Davao International Airport– Laoag International Airport– Subic International Airport– Diosdado Macapagal (Clark) International Airport

Seaport– Manila South Harbor– Cebu Sea Port– Zamboanga Sea Port– Batangas Sea Port– Subic Sea Port

International Airport– Ninoy Aquino International Airport (NAIA)– Mactan-Cebu International Airport (MCIA)– Davao International Airport– Laoag International Airport– Subic International Airport– Diosdado Macapagal (Clark) International Airport

Seaport– Manila South Harbor– Cebu Sea Port– Zamboanga Sea Port– Batangas Sea Port– Subic Sea Port

TTSS Scope and CoverageTTSS Scope and Coverage

Included in Visitor Count Not Included in Visitor Count

Tourist Transit /change planeExcursionist Aliens with pre-arrangedCruise passengers employment in Phil.Overseas Filipinos Immigrants

Filipino Overseas Contractworkers

Returning Residents

Included in Visitor Count Not Included in Visitor Count

Tourist Transit /change planeExcursionist Aliens with pre-arrangedCruise passengers employment in Phil.Overseas Filipinos Immigrants

Filipino Overseas Contractworkers

Returning Residents

TTSS Sourcesof DataTTSS Sourcesof Data

Arrival/ Departure Card

The Arrival/Departure Cards Processing Center (ADCPC) located in NAIA is responsible for the gathering, collection, encoding, data validation and downloading of initial files in NAIA, Cebu, Laoag, Davao, Subic and Clark. The downloaded data are further processed by the DOT’s TTSS.

TTSS Sources of DataTTSS Sources of Data

• Sea Manifests– Sea manifests gathered by the DOT from Manila South Harbor, Cebu,

Subic, Zamboanga and Batangas are being encoded in DOT-OTDP using the TTSS sub-system

– Sea manifests from other ports being gathered by the DOT regional offices are being encoded in DOT using the TTSS sub-system

• Bureau of Immigration Report– Other data culled from the Bureau of Immigration Report which is

being gathered by the DOT regional offices and other tourism office are being encoded in DOT using the TTSS sub-system

• Region XI (Davao)• Subic/Clark

• Sea Manifests– Sea manifests gathered by the DOT from Manila South Harbor, Cebu,

Subic, Zamboanga and Batangas are being encoded in DOT-OTDP using the TTSS sub-system

– Sea manifests from other ports being gathered by the DOT regional offices are being encoded in DOT using the TTSS sub-system

• Bureau of Immigration Report– Other data culled from the Bureau of Immigration Report which is

being gathered by the DOT regional offices and other tourism office are being encoded in DOT using the TTSS sub-system

• Region XI (Davao)• Subic/Clark

TTSS MethodologyTTSS Methodology

• Encoding of data from various international ports of entry

• Downloading and incorporation of initial files to the DOT - TTSS system

• Validation and processing of data• Generation of reports• Dissemination of reports

• Encoding of data from various international ports of entry

• Downloading and incorporation of initial files to the DOT - TTSS system

• Validation and processing of data• Generation of reports• Dissemination of reports

TTSS Flow of ActivitiesTTSS Flow of Activities

STARTSTART

Encoding of data in Arrival/Departure Cards Processing Center (ADCPC)

Back up and validation of encode data and submission to DOT (Two days after completion of encoding)

Gathering/Batching of Data A/D Cards from NAIA, Cebu, Subic, Davao, Clark, Laoag (throughout the reference month up to 7 days after reference month)

1-37days

37days

37days

Submission of inputs by the regional offices

2days

39days

2days

39days

Gathering and encoding of data from Batangas, Subic, and Clark

2days

41days

Validation and pre-processing of encoded data 1days

42days

TTSS Flow of ActivitiesTTSS Flow of Activities

Validation, editing and generation of statistics

Preparation of report/ analysis/ memo

Consolidation of data encoded in ADCPC and DOT

1days

43days

Dissemination of visitor statistics(Memo, fax, e-mail, postal mail)

1days

44days

1days

45days

1 day

42days

End45

days

TTSS OutputsTTSS Outputs

• Statistics on visitor arrivals by– country of residence– demographic profile– travel characteristics– mode of travel– port of entry– nationality

• Statistics on the actual volume of Overseas Filipino permanent residents abroad

• Statistics on former Filipino citizens by country of residence

• Statistics on Outbound Philippine residents

• Statistics on visitor arrivals by– country of residence– demographic profile– travel characteristics– mode of travel– port of entry– nationality

• Statistics on the actual volume of Overseas Filipino permanent residents abroad

• Statistics on former Filipino citizens by country of residence

• Statistics on Outbound Philippine residents

VSS and TTSS Relevance to TSAVSS and TTSS Relevance to TSA

Length of stayOvernight stay3. VSS

Mode of transportMeans of transport

No. of arrival by country of residence

No. of arrivals2. TTSS

Type of accommodationForm of accommodation

Frequency of visitNo. of trips

Table 10 – Non -monetary indicators

Table 10 – Non-monetary indicators

Table 2 – Tourism consumption expenditure in the Philippines

Table 1 – Inbound tourism consumption by categories of visitors

1. VSS / TTSS

PTSA TABLESWTO TSA TABLESSOURCE

THANK YOU!THANK YOU!

VSS ReportVSS Report

Average Daily Expenditure Per Item per Respondent X

Average Daily Expenditure Per Item per Respondent X

=Total expenditure in US$No. of nights and no. of

respondents

X1 + X2 + X3 + ……………… XnAverage Daily Expenditure per Respondent

Average Daily Expenditure per Respondent

=