overview of phil tourism

OVERVIEW OF PHILIPPINE TOURISMUSEC. OSCAR P. PALABYABDepartment of Tourism

Good afternoon to all of you. On behalf of our Secretary, Joseph H. Durano, it is indeed a great honor for me to present the Secretarys thoughts on the deepening of Philippine-Spanish relations through tourism. We thank the organizers of the 2nd Tribuna Espaa-Filipina for the invitation to speak before this gathering. From the previous presentations, we can see that there is a need to improve relations between our two countries in practically all fields of endeavour, from a political, economic and commercial standpoint, to social and cultural relations. It is now my turn to speak on the last topic for the day, which addresses the question: What can the Philippine tourism industry offer Spain?Let me begin by pointing out the fact which is known by almost every Filipino schoolchild the Philippines was a colony of Spain for more than three hundred years. That long interlude in our history has given us a deep Hispanic heritage, and the Philippines today remains the only country in Asia with that particular distinction. Allow me to give you a profile of Spanish travellers to the Philippines.

The Growth of World TourismTourism growth over the past 50 years is dramatic- 25 Million in 1950 to 698 Million in 2000One of the most remarkable economic and social phenomena of that periodForecasts indicate the trend will continue with 1.5 Billion in 2020!

The Unstoppable Expansion of International Tourism

Worldwide Visitor Arrivals and Receipts 1996 - 2006

YearVisitor Arrivals(In Millions)% Inc/DecVisitor Receipts(In US$B)% Inc/Dec19965756.28 %434.05.60 %19975994.17443.02.0719986173.00443.0019996403.734552.7120006877.344825.9320016870464.0-3.7320027072.91474.02.162003694-1.8453512.87200476510.2363518.6920058065.366837.5620068424.47

International Tourist Arrivals 2005

France76Spain55.6U.S.49.4China46.8Italy36.5United Kingdom30.0Mexico21.9Germany21.5Turkey20.3Austria20.0

Country(In Millions)

Factors in Tourism GrowthIncrease in real incomeIncrease in life expectancyRetiring baby boomersFaster and cheaper air travelEasier access and more destinationsRapid developments in IT

Sampling of tourism expendituresInternational Visa Card holders spent P37.5 B in 2005 vs P29 B in 2004Top 5 Visa spending countries in RP

1. U.S.A. 2. United Kingdom 3. Japan 4. South Korea 5. Australia

Visa Card usersKorean card holders had highest average spending per transaction at US$175Metro Manila got 60% of total availments or P22.9 BLuzon = P72B of which Mindoro got P272M and Palawan P238MVisayas= P6.1 B (Cebu= P4B), others Negros, Leyte and Boracay

Spending patternMost popular are accommodation, retail goods, restaurants, transportation, sports and leisureLargest retail market= department stores and duty free shopsIn Metro Manila, hotels got P1.5 B, airlines P420 M, groceries, supermarkets P344 M

Trends in Asia Pacific RegionJapans 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 PhilippinesActual Arrivals (in Million)

YearVolumeGrowth Rate

1996 2.0516.4 %1997 2.22 8.5 %1998 2.15 (3.3)%1999 2.17 1.0 %2000 1.99 (8.2)%2001 1.80 (9.8)%2002 1.93 7.6 %2003 1.90 (1.3)% 2.29 23.0% 2.60 14.5%

2006 2.84 8.4% Projected Arrivals (in Million)


20073.2012%20083.6514%20094.2416%20105.0018%

Philippine Visitor ReceiptsActual Tourism Receipts (in US$ Billion)


19962.70 10.1%19972.83 4.8%19982.41(14.8)%19992.55 5.8%20002.13(16.4)%20011.72(19.3)%20021.74 1.0%20031.52(12.5)%20041.99 30.7% 2.23 12.32% 3.46 54.96%

Projected Tourism Receipts(in US$ Billion)


20062.7216.0%20073.1215.0%20083.5614.0%20094.0614.0%20104.5913.0%ActualProjected

Philippine Top 12 Markets, 2006 Korea is the number 1 tourist market in 2006 with a share of 20 percent and growth rate of 17 percent

China continues 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

CountryVolume% ShareGrowth RateKOREA572,13320.1%16.9%USA567,35520.07.4JAPAN421,80814.81.5CHINA133,5854.724.3TAIWAN114,9554.0-6.5AUSTRALIA101,3133.65.02HONGKONG96,2963.4-10.2SINGAPORE81,1142.916.8CANADA80,5072.810.5UNITED KINGDOM68,4902.48.7MALAYSIA53,2791.923.7GERMANY51,4021.82.0

Philippine Top 12 Markets, Jan Sept 2007

CountryVolumeJAN-SEPT 2007% ShareVolumeJAN-SEPT2006% Growth RateKOREA472,71120.9%406,48016.3%USA433,42519.1424,4942.1JAPAN303,42013.4326,219-7.0CHINA113,5935.098,13615.8TAIWAN85,5513.887,471-2.2HONGKONG84,9103.770,80419.9AUSTRALIA76,0483.469,3419.7SINGAPORE70,0543.157,82721.1CANADA60,7512.754,51111.4UNITED KINGDOM55,5642.548,82413.8MALAYSIA48,7352.238,06028.0GERMANY40,2111.837,1658.2

How Did Our Neighbors Do in 2006/2005?

COUNTRY20062005Percentage GrowthMalaysia17,500,00016,431,0556.51%Thailand13,650,00011,516,93618.52Singapore9,673,3628,875,9808.98Indonesia4,871,3515,002,101(2.61)Vietnam3,583,4863,430,0004.47Philippines2,843,3452,623,0848.40Cambodia1,700,0411,421,61519.59Lao PDR1,200.0001,081,60610.95Brunei 836,435815,0542.62Myanmar630,061660,206(4.57)

North Luzon Agribusiness Quadrangle (NLAQ)Luzon Urban BeltwayCentral PhilippinesMindanaoCyberservices Corridor

The Birth of the Super Regions

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.

And so with these initial intentions received, the government is doing its bit to lay down the groundwork to see these investments through to fruition.

The President has identified the Central Philippines Super Region as the development area of the country for tourism. This region spans the provinces of Palawan, Romblon, Camarines, Albay, Catanduanes, Masbate, Sorsogon, Guimaras, Aklan, Antique, Capiz, Iloilo, Negros, Bohol, Cebu, Siquijor, Biliran, Samar, Leyte, Camiguin and the islands of Siargao in Surigao and Dapitan in Zamboanga.

International Flights to Central PhilippinesThis Super region has 51 weekly flights with average seat capacity of 11,045 from major tourist markets

Having 51 weekly flights with an average seat capacity of 11,045, it is the hub of all our tourism activities.

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 lions share, raking in 38% and 35%, respectively

Visitors to Central Philippines reached 4.64 million or 29 percent of total regional travelers in 2006

North LuzonMetro Luzon Urban BeltwayTHE SUPERREGIONS

Central PhilippinesSuper RegionTourismMindanaoCamarinesSiargaoCamiguinLeyteSamarSorsogonAlbayRomblonMasbatePanayPalawanNegrosCebuBoholSiquijorCLUB MISIBISMPh 122.817 - PEZASHANGRI-LA MACTAN IS. RESORTMPh 310.400 BOI (Modernization)

IMPERIAL PALACE WATER PARKMPh 3,180.00 BOI

WATERFRONT CEBU TOURISM ESTATEMPh 350.00 - BOITHE BELLEVUE BOHOLMPh 334.1360 BOI

ESKAYA BEACH RESORTMPh 815.000 BOI

BLAUES MEER RESORTMPh 69.700 - BOIMACAGANG BUSINESS CENTERMPh 67.917 PEZA

AVENUE PLAZA HOTEL (2007)Mph 324.205 BOI

CAMARINES SUR TOURISM PARK (2007)MPh 1,002.93 - PEZABORACAY SHANGRI-LA HOTELS & RESORTS, INC.MPh 4,030 PEZA Locator

MICROTEL INNS & SUITES BORACAYMPh 128.300 - BOI

BORACAY SANDS HOTEL (2007)MPh 174.60 - BOIBoracayEndorsed Tourism Development Projects in Central PhilippinesYear 2006 September 2007Note: Total amount of ETDP in Central Philippines as of January 2006 September 2007MPh 10,910.005

SUMMARY OF MEDIUM TERM PUBLIC INVESTMENT PROGRAM FORCENTRAL PHILIPPINES

TYPE OF PROJECTAMOUNT(IN BILLIONS)PERCENTSHAREAIRPORTS30.57716.02SEAPORTS0.8670.45ROADS92.97348.70RAILWAY40.00020.95FLOOD CONTROL21.97811.52ENERGY4.5002.36TOTAL190.895100.00

With the government prioritizing its development under the medium term public investment program, we can expect new and improved airports, seaports, roads, railways, flood control structures and energy systems to materialize within the coming months. Public investment is estimated to total 190 Billion pesos.

As a matter of fact, a number of airport projects are already in the offing. Many of the seaport projects will be implemented starting 2007.

Key Tourist MarketsPriority 1: China, Japan, Korea

Priority 2: Taiwan, Hong Kong, Australia

Priority 3: ASEAN, Europe, North America

Philippine Global Strategy

Accelerate demand in existing core marketssuch 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 Demandfor the FutureLiberalize 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 NeedsCurrent supply Vs 2010 demand in accommodated tourist numberDomestic tourist# MM PAX18.522.84.3Foreign touristAt least additional 20,152 rooms to reach 85% occupancy rate** Or 38,489 rooms to reach 70% occupancy rate**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 roomsSource: DOT Hotel Census, August 2005, n=881; DOT Accreditation database as June 2005; Monitor estimation; Monitor analysisAdditional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010

Though government is taking the lead for the development of the necessary support infrastructure, we need the partnership of private investors in the building of tourism infrastructure.

Our limited supply of accommodation facilities is about to reach its full capacity in a few years. Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010.

RESULTS FROM 2005 HOUSEHOLD SURVEY ON DOMESTIC VISITORS, April Sept 200543.5% (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 2005ALMOST 99% OR 23.5 Million domestic travelers had independent domestic trips

17.5 Million spend an average of:

1. Accommodation P1,200.002. Food and beverage P 400.003. Sight seeing and guided tour P 600.004. Entertainment & Recreation P 300.005. Local transport (sea,air or land) P 400.006. Shopping P1,100.007. Others P3,200.00

RESULTS FROM 2005 HOUSEHOLD SURVEY ON DOMESTIC VISITORS, April Sept 2005MOST FREQUENTLY VISITED PLACES:NCRCAVITE BATANGASLAGUNAILOILOBULACANNUEVA ECIJAPAMPANGACEBUPANGASINANALBAY

Visitor Profile AndTravel Characteristics, 2006Mode of TravelAir (98.73%)Sea (1.27%)SexMale (61.22%)Female (37.40%)

Average Age38.26 years old

Purpose of VisitHoliday46.99%VFR (Visit Friends / Relatives)26.66%Business13.18%Convention 1.28%Official Mission 0.11%

Visitor Profile AndTravel Characteristics, 2006Frequency Visit(%)

- First Visit31.27- Repeat Visit51.30

Travel Arrangement

- Independent61.67- Package Tour18.56- Not Stated19.77Overall Average Length of Stay ( Nights) 12.06

- Foreign Visitors 10.98- Overseas Filipino 48.02Average Daily Expenditure

(US$) 83.91Foreign Visitors 84.70Overseas Filipino 55.78

Foreign Visitors Expenditure2006Average Daily ExpenditureUS$ 83.91

Major Items of Expenditure AccommodationUS$ 25.72Shopping 22.01Food and Bev. 20.39Entertainment7.02Local Transport 4.71Miscellaneous2.81Guided Tour0.36

Regional Statistics


Regional Destinations of Foreign Tourists Jan-Dec 2006*REGION VII-542,159REGION IV-434,530REGION VI-266,891NCR-262,364REGION III-155,394CAR- 76,812REGION I- 52,786REGION XI- 52,756REGION X - 46,284REGION V- 31,153REGION II- 24,453REGION XIII- 16,200REGION IX- 13,647REGION VIII- 13,329REGION XII- 4,606* Preliminary

Regional Destinations of Domestic Tourists Jan-Dec 2006*Region IV-5,852,860Region VI-1,259,332Region VII-1,081,903CAR- 902,917Region X- 837,851Region XI- 699,552Region XII- 618,077Region II- 610,715Region V- 587,823Region IX- 480,297Region XIII- 341,844Region I- 281,582Region III- 251,634Region VIII- 189,643NCR- 68,694* Preliminary

CLARK INTL AIRPORTVISITOR ARRIVALS, JAN DEC 2006

EAST ASIA37,481ASEAN27,093AMERICA8,209EUROPE7,046AUSTRALASIA/PACIFIC3,057AFRICA238MIDDLE EAST128UNSPECIFIED8FILIPINOS151,052GRAND TOTAL FOR 2006235,004GRAND TOTAL FOR 2005114,902GROWTH RATE104.5%

REGIONVOLUME

CLARK INTL AIRPORT International No of Flights, JAN - DEC 2006

TIGER AIRWAYS954AIR ASIA725ASIANA278CR AIRWAYS/HONGKONG AIRLINES100SHANGHAI AIRLINES5CHINA SOUTHERN3GRAND TOTAL2,065

AIRLINESNO. OF FLIGHTS

Thank You!


And so with these initial intentions received, the government is doing its bit to lay down the groundwork to see these investments through to fruition.

The President has identified the Central Philippines Super Region as the development area of the country for tourism. This region spans the provinces of Palawan, Romblon, Camarines, Albay, Catanduanes, Masbate, Sorsogon, Guimaras, Aklan, Antique, Capiz, Iloilo, Negros, Bohol, Cebu, Siquijor, Biliran, Samar, Leyte, Camiguin and the islands of Siargao in Surigao and Dapitan in Zamboanga.Having 51 weekly flights with an average seat capacity of 11,045, it is the hub of all our tourism activities.

With the government prioritizing its development under the medium term public investment program, we can expect new and improved airports, seaports, roads, railways, flood control structures and energy systems to materialize within the coming months. Public investment is estimated to total 190 Billion pesos.

As a matter of fact, a number of airport projects are already in the offing. Many of the seaport projects will be implemented starting 2007.

Though government is taking the lead for the development of the necessary support infrastructure, we need the partnership of private investors in the building of tourism infrastructure.

Our limited supply of accommodation facilities is about to reach its full capacity in a few years. Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010.


overview of phil tourism

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