WHAT THE EVENT IS ALL ABOUT

It’s been with us for the last 17 years (1994 - 2013)

Public clamor and expectations (hotels have been booked for February already)

Estimates indicate some P500-M is infused into local economy during 4-day fiesta (@100,000 spectators)

If nobody does it, somebody else will do it!

• DOT proposes to take the lead in pursuing the conduct of the 2014 ballooning event

• RD Tiotuico consulted Usec MVJ about the sudden cancellation; was told to seek advise from SRRJ

• RD Tiotuico wrote SRRJ letter to pursue the event

• SRRJ approved proposal with funding support on Dec. 3, 2013

• Proposal now elevated to TPB for funding allocation

• Presentation to Usec MVJ and COO Chicoy on Jan 15, 2103 with agreement on the P5.6-M funding support / suggestion to revise logo design

• RD Tiotuico signed contract with Mr. Steve Kim, a balloon pilot from Korea to undertake the project with 30 target number of balloons

Title of Event: PHILIPPINE INTERNATIONAL FRIENDSHIP BALLOON FESTIVAL (PFBF)Dates and Location: April 10 – 13, 2014, Clark Freeport ZonePresented by:

Philippine Friendship Balloon Festival, Inc. (PFBFI)Partners: DOT / TPB, CDC, CIAC, 600th ABW (PAF)

“It’s more than just hot air…”

(more vibrant activities on the ground: street dancing, cultural shows (Nayong Pilipino), live bands, quiz bee, cookfest, clowns, lechon festival, Robotics, car shows (limo and model cars, airsoft, Clark

tours, etc.)

To promote and develop Clark and Pampanga as the ballooning capital in Asia;

To foster unity and friendship among balloon pilots and balloon followers;

To attract more visitors into Clark and the province of Pampanga thru marketing and development of major activities such as ballooning and other air-sporting activities; and

To generate economic activity in and around Clark thru travel and tourism.

Nayong Pilipino Hotel and Restaurants of Pampanga (HARP) Pampanga Agents Travel Society (PATS) Alliance of Travel and Tour Agencies of Pampanga (ATTAP) Assn of Tourism Officers of Central Luzon (ATOCEL) Angeles City Tourism Office (ACTO) Subic Clark Alliance for Development (SCAD) Manila North Tollways Corporation (MNTC) Clark Investors and Locators Assn (CILA) Metro Angeles Chamber of Commerce (MACCII) Angeles City Four Wheel Drive Club, Inc. (ACFWDC) Angeles City Four Wheelers Club, Inc. (ACFWC) Kite Team Philippines Angeles Aviators (RC Aeromodelers)

Up for bids under www.philgeps.gov.ph

Presented by:Philippine Friendship Balloon Festival, Inc. (PFBFI)

Incorporators: Michael Palispis (ATOCEL), Mitch Otsuru (HARP), Gilda Padua (Ties That Travel / ATTAP), Carlo Ponti Zialcita (PRA), Lerma Quiambao (LQM Travel / PATS), Danilo Cerdena (Blue Voyage / PATS), Prisca Narciso (Metro Angeles Travel / PATS), Jose Moster (HARP) and Marcia Hernandez (Global Access / ATTAP)

Philippine Airlines (airline tickets / cargo shipment) San Miguel Corp. (food plaza / live bands etc) Globe or Smart Petron (fuel for balloons / chase crew) Ginebra San Miguel San Miguel Purefoods (hot dogs) SMC Global Power Marquee Mall / Ayalaland Eurotel Intl / Widus Hotel & Casino / Century Resort Hotel

(pilots’ billeting) SM Supermalls

Air Show Hot Air Balloon Friendship Flight (early

morning) Night Glow Sky Diving Exhibition Kite Flying Demonstration/ Lights in Flight

(night kite flying)

(Note: Korean Air Force Aerobatics Jetfighter Team is interested)

Live bands The Best of Central Luzon Festivals Bartending / Flairtending Competition Corporate Game Shows (airlines / ticketing

offices) Cultural Presentations Arts and Crafts Demo It’s More Fun Quiz Bee Cook-off Competition / Lechon Festival Car Shows Fun Run Airsoft Competition Nightly Fireworks Display (DOT – R3)

Trade booths (merchandising)Food Plaza

(close to 400 tented booths)

Expected to participate in the event are some 20 – 30 balloons from ASEAN, Europe and USA

DOT will seek the support of DOT overseas offices in extending invitation to balloon pilots nearest to our country

Will provide incentives for balloon pilots to participate: free airline tickets / free cargo shipment / free accommodation / food and souvenir items / awards / honoraria

Will solicit support from San Miguel / Petron / PAL / HARP / CILA for freebies

Will coordinate with CAAP / Bureau of Customs / NAIA / Immigration / DOT NAIA

Will solicit support of transportation groups / forwarder for delivery of cargo and pilots to Clark

Creation of an inter-agency committee (DOT, TPB, CDC, CIAC, 600th ABW, BOC, BID, CAAP, etc.) to handle operational plans (early release of balloon cargo, storage, etc.)

Mr. Steve Kim (a Korean veteran of ballooning for 30 years) – balloon event director

Event Manager - Overall management of the ground events, secretariat, stalls, daily program, sponsorship packages, financial, website, ingress / egress, live coverage, concerts (San Miguel), press conferences, souvenir program, tickets, inter-agency committee organization

DOT R3- Philgeps , meals, promotions, secretariat, souvenir items, rooms for pilots, meals, fuel, manpower, uniform T-shirt, IDs, media screening, fireworks, plaques

HARP – Cook-off competition / sell tickets PATS / ATTAP – More fun quiz bee, sponsors / sell tickets ATOCEL – Street dancing, cultural, flairtending / sell tickets Angeles City Four Wheel Drive – Chase crew CDC – Traffic, safety, emergency, lights / electrical / water, fencing,

F/A, portable toilets, parking CIAC – Airport assistance / security CAAP – Notice to Airmen (Notam) PAF – Venue, security, exhibits

Financial Support (TPB / DOT)

Airfare of balloon pilots, cargo shipment (balloon), accommodation, prizes and honoraria (foreign technical team for the competition, promo materials)

PhP 5,660,000

Entrance tickets sales P100/ person @ 100,000 pax for 4 days

10,000,000

Booth rental (food and merchandise)

P15,000 each booth at 400 units 6,000,000

Sale of Souvenirs P50 / piece at 3,000 T-shirts (share from sellers)

150,000

Sponsorships (to be confirmed)

PAL, Smart/Globe, San Miguel, Purefoods etc.

5,000,000

Parking fee (cars and buses)

P50 / car (1,000) plus P100 / bus (300)

80,000

TOTAL REVENUES   26,890,000 Expenses (conservative)   9,120,000

 NET INCOME (optimistic)   17,770,000 

Pilots’ allowance P880,000 for each regular shaped balloons (20 ) at $1,000 each plus P1,320,000 for each special shaped balloons (20 ) at $3,000 each

2,200,000

Pilots’ airfare P44,000 ($1,000) / team (30) 1,320,000Cargo shipment (balloon baskets / envelopes)

P44,000 ($1,000) / cargo (30) 1,320,000

Organizers’ accommodation

P12,000 / villa / 5 units / 6 nights 360,000

Souvenirs for pilots Caps, T-shirts, balloon pins, wooden plaques (P600 per / 200 pieces)

120,000

Uniforms / caps for volunteers, officers and staff

P250 / T-shirt plus cap (4 sets at 200 pax)

200,000

Rebate @ 30% (Event Organizer)

Management of the event 3,600,000

TOTAL 9,120,000The rest of the expenses (P12-M) will be handled by sponsors and DOT R-3, e.g. battle of the bands, street dancing, cook-off, quiz bee, physical maneuvers, etc.)

Pilots’ Honoraria P88,000 / special shape team (10 )/ P132,000 / regular shape team (20)

2,640,000

Pilots’ airfare P44,000 / team (20) 880,000Cargo shipment (balloon and basket)

P44,000 / cargo (30) 1,320,000

Competition Winners’ Prizes

1st Prize – P300,000 2nd – P1,000 3rd – P40,000

440,000

Honoraria for Technical Team (foreign delegates) / Observer

Five – man team to share amount 380,000

TOTAL   5,660,000

PAL may sponsor pilot’s airfare and balloon cargo. We may use the remaining funds for promotional and media programs.

It’s more than just hot air Partnership by government and

private sector More activities on the ground Air-conditioned tents Event to be owned by the community

Creation of a non-stock non-profit corporation composed of prominent members of tourism community (SEC-registered already as of Jan 17, 2014)

Key players: tourism stakeholders and major players All monies earned from the operation of the project is

retained by the organization Nothing goes to pockets of trustees or directors

(volunteerism) The organization may commission services of job-

order staff with salaries or wages Revenues to be used for the same event in the future To cancel the event is a national disaster Other LGUs are interested to host the same event due

to media and economic values it generates (Clark may no longer be viable in the future due to increased flight operations)

Does the former organizer have a proprietary ownership over the hot air balloon event?

I believe no person can claim ownership over an event that is universal in nature like ballooning. The name / title of the event may be registered with DTI or patent office for proprietary reason but the event itself cannot be claimed by a single person. This is just like such events like Sto. Nino Festival or Lechon Festival. The same event with the same

title is held in a number of places in the country. Our event title PFBF is already registered with DTI. In fact it was the DOT thru former Secretary Dr. Mina Gabor who first owned the event. It was then turned over to the private sector after three years. Now we are taking the cudgels in the meantime though in some countries, ballooning takes place twice a year.

Who is organizing the event? Initially, the Department of Tourism – Region III is taking the lead

in preparing for the 2014 ballooning event to establish the foundation for a well-oiled machinery like crafting proposals, work program, budgetary requirements, organizational structure, among other details. Right now, a non-stock, non-profit private corporation has been registered with SEC to handle the business side and operation of the project for sustainability. No single cent will get into the pocket of a single person. Income will be used for future events.

In other ballooning countries the event is organized by both government and private sector. The event in Albuquerque, New Mexico, USA is run by private non-profit organization (www.balloonfiesta.com) with government support. The Vietnam Intl Hot Air Balloon Fiesta is run by Binh Thuan Province People’s Committee, Department of Culture, Sports & Tourism and Chien Thang Company Limited (www.thevietnamguide.com). Saga Balloon Intl Balloon Fiesta is run by private corporation with support from Saga-City Promotions Office (http://www.sibf.jp/).

Endorsement from DOT to CAAP for issuance of NOTAM / permit to fly from PAF hangar site;

Endorsement from DOT to PAF for issuance of permit to use their site as the venue;

Financial support from DOT / TPB as start-up capital; and

Technical support from DOT (marketing and media values).