Transcript Developing Successful Tourism Partnerships in the Local Market
OVERVIEW OF PHILIPPINE TOURISM
USEC. OSCAR P. PALABYAB Department of Tourism
The Growth of World Tourism
Tourism growth over the past 50 years is dramatic- 25 Million in 1950 to 698 Million in 2000 One of the most remarkable economic and social phenomena of that period Forecasts indicate the trend will continue with 1.5 Billion in 2020!
800
The Unstoppable Expansion of International Tourism International Tourist Arrivals by Receiving Region, 1950-2004* Average growth of 6.5% a year
700 600 500 400 300
Middle East Africa Asia and the Pacific Americas Europe 763 million 25 million
200 100 0 19 50 19 60 19 70 19 80 19 90 20 00 20 04 *
Worldwide Visitor Arrivals and Receipts 1996 - 2006
Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Visitor Arrivals (In Millions) 575 599 617 640 687 687 707 694 765 806 842 % Inc/Dec 6.28 % 4.17
3.00
3.73
7.34
0 2.91
-1.84
10.23
5.36
4.47
Visitor Receipts (In US$B) 434.0
443.0
443.0
455 482 464.0
474.0
535 635 683 % Inc/Dec 5.60 % 2.07
0 2.71
5.93
-3.73
2.16
12.87
18.69
7.56
International Tourist Arrivals 2005
Country (In Millions) France Spain U.S.
China Italy United Kingdom Mexico Germany Turkey Austria 76 55.6
49.4
46.8
36.5
30.0
21.9
21.5
20.3
20.0
Factors in Tourism Growth
Increase in real income Increase in life expectancy Retiring baby boomers Faster and cheaper air travel Easier access and more destinations Rapid developments in IT
Sampling of tourism expenditures
International Visa Card holders spent P37.5 B in 2005 vs P29 B in 2004 Top 5 Visa spending countries in RP 1. U.S.A.
2. United Kingdom 3. Japan 4. South Korea 5. Australia
Visa Card users
Korean card holders had highest average spending per transaction at US$175 Metro Manila got 60% of total availments or P22.9 B Luzon = P72B of which Mindoro got P272M and Palawan P238M Visayas= P6.1 B (Cebu= P4B), others Negros, Leyte and Boracay
Spending pattern
Most popular are accommodation, retail goods, restaurants, transportation, sports and leisure Largest retail market= department stores and duty free shops In Metro Manila, hotels got P1.5 B, airlines P420 M, groceries, supermarkets P344 M
Trends in Asia Pacific Region
Japan’s economy is registering an upward trend of 2.8%
Hongkong, China and Korea are predicted to grow by 5.5%
South East Asian countries are expected to grow from 6-7%, characterized by liberalization on outbound travel and increasing number of travel agencies
In China alone, there are about 111 M internet users now
Visitor Arrivals to the Philippines
5 4 3 2 1 Actual Projected 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Actual Arrivals (in Million) Volume Growth Rate 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2.05
2.22
2.15
2.17
1.99
1.80
1.93
1.90
2.29
2.60
16.4 % 8.5 % (3.3)% 1.0 % (8.2)% (9.8)% 7.6 % (1.3)% 23.0% 14.5% 2.84 8.4% Projected Arrivals (in Million) Year Volume Growth Rate 2007 2008 2009 2010 3.20
3.65
4.24
5.00
12% 14% 16% 18%
Philippine Visitor Receipts
2010
Year Actual Tourism Receipts (in US$ Billion) Volume Growth Rate
2009 2008
1996 2.70
10.1%
2007
1997 1998 1999 2000 2.83
2.41
2.55
2.13
4.8% (14.8)% 5.8% (16.4)%
2006 2005 2004
2001 2002 2003 2004 2005 1.72
1.74
1.52
1.99
2.23
(19.3)% 1.0% (12.5)% 30.7% 12.32%
2003 2002 2001
2006 3.46 54.96% Projected Tourism Receipts (in US$ Billion)
2000 1999
Year Volume Growth Rate
1998
2006 2007 2008 2009 2010 2.72
3.12
3.56
4.06
4.59
16.0% 15.0% 14.0% 14.0% 13.0%
1997 1996
0 1 2 3 Projected Actual 4 5
Philippine Top 12 Markets, 2006 Country
KOREA USA JAPAN CHINA TAIWAN AUSTRALIA HONGKONG SINGAPORE CANADA UNITED KINGDOM MALAYSIA GERMANY
Volume
572,133 567,355 421,808 133,585 114,955 101,313 96,296 81,114 80,507 68,490 53,279 51,402
% Share
20.1% 20.0
14.8
4.7
4.0
3.6
3.4
2.9
2.8
2.4
1.9
1.8
Growth Rate
16.9% 7.4
1.5
24.3
-6.5
5.02
-10.2
16.8
10.5
8.7
23.7
2.0
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
KOREA USA JAPAN CHINA TAIWAN HONGKONG AUSTRALIA SINGAPORE CANADA UNITED KINGDOM MALAYSIA GERMANY
Philippine Top 12 Markets, Jan –Sept 2007 Country Volume JAN-SEPT 2007
472,711 433,425 303,420 113,593 85,551 84,910 76,048 70,054 60,751 55,564
% Share
20.9% 19.1
13.4
5.0
3.8
3.7
3.4
3.1
2.7
2.5
Volume JAN-SEPT 2006
406,480 424,494 326,219 98,136 87,471 70,804 69,341 57,827 54,511 48,824
% Growth Rate
16.3% 2.1
-7.0
15.8
-2.2
19.9
9.7
21.1
11.4
13.8
48,735 40,211 2.2
1.8
38,060 37,165 28.0
8.2
How Did Our Neighbors Do in 2006/2005?
COUNTRY
Malaysia Thailand Singapore Indonesia Vietnam Philippines Cambodia Lao PDR Brunei Myanmar
2006
17,500,000 13,650,000 9,673,362 4,871,351 3,583,486 2,843,345 1,700,041 1,200.000
836,435 630,061
2005
16,431,055 11,516,936 8,875,980 5,002,101 3,430,000 2,623,084 1,421,615 1,081,606 815,054 660,206
Percentage Growth
6.51% 18.52
8.98
(2.61) 4.47
8.40
19.59
10.95
2.62
(4.57)
The Birth of the Super Regions North Luzon Agribusiness Quadrangle (NLAQ) Luzon Urban Beltway Central Philippines Mindanao Cyberservices Corridor
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.
This Super region has 51 weekly flights with average seat capacity of 11,045 from major tourist markets …
International Flights to Central Philippines
16 Flights/Week From S. Korea 2 Flights/week From Taiwan 5 Flights/week from Japan 14 Flights/week From Hong Kong 12 Flights/week From Singapore 2 Flights/week From Malaysia
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 lion’s share, raking in 38% and 35%, respectively POWDER FINE WHITE SAND BEACHES OF BORACAY
Visitors to Central Philippines reached 4.64 million or 29 percent of total regional travelers in 2006
Western Visayas 1,610,677 Romblon 23,780 Bicol Region 637,127 Eastern Visayas 203,569 Palawan 189,911 Surigao City 58,341 CENTRAL VISAYAS 1,631,445 Dapitan 47,769 Camiguin 220,062
THE SUPERREGIONS
North Luzon Metro Luzon Urban Beltway Central Philippines
Tourism
Mindanao BORACAY SHANGRI-LA HOTELS & RESORTS, INC.
MPh 4,030 –
PEZA Locator
MICROTEL INNS & SUITES BORACAY
MPh 128.300
- BOI
BORACAY SANDS HOTEL (2007)
MPh 174.60
- BOI Romblon Palawan
SHANGRI-LA MACTAN IS. RESORT
MPh 310.400 –
BOI (Modernization)
IMPERIAL PALACE WATER PARK
MPh 3,180.00 –
BOI
WATERFRONT CEBU TOURISM ESTATE
MPh 350.00 -
BOI Masbate
Endorsed Tourism Development Projects in Central Philippines Year 2006 – September 2007 MACAGANG BUSINESS CENTER
MPh 67.917 –
PEZA
AVENUE PLAZA HOTEL (2007)
Mph 324.205
–BOI
CAMARINES SUR TOURISM PARK (2007)
MPh 1,002.93
- PEZA
CLUB MISIBIS
MPh 122.817 -
PEZA
Camarines Albay
Sorsogon Samar Boracay
Panay
Leyte Siargao Negros
Cebu Bohol
Siquijor
THE BELLEVUE BOHOL
MPh 334.1360 –
BOI
ESKAYA BEACH RESORT
MPh 815.000 –
BOI
BLAUES MEER RESORT
MPh 69.700 -
BOI Camiguin
Note: Total amount of ETDP in Central Philippines as of January 2006 – September 2007 MPh 10,910.005
SUMMARY OF MEDIUM TERM PUBLIC INVESTMENT PROGRAM FOR CENTRAL PHILIPPINES
TYPE OF PROJECT
AIRPORTS SEAPORTS ROADS RAILWAY FLOOD CONTROL ENERGY
TOTAL AMOUNT (IN BILLIONS)
30.577
0.867
92.973
40.000
21.978
4.500
190.895
PERCENT SHARE
16.02
0.45
48.70
20.95
11.52
2.36
100.00
Key Tourist Markets
Priority 1: China, Japan, Korea Priority 2: Taiwan, Hong Kong, Australia Priority 3: ASEAN, Europe, North America
Philippine Global Strategy
Accelerate demand in existing core markets such 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 Demand for the Future
Liberalize 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 Needs
Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010
Current supply Vs 2010 demand in accommodated tourist number
18.5
22.8
4.3
2.7
# MM PAX Domestic tourist 15.7
18.4
At least additional 20,152 rooms to reach 85% occupancy rate** Or 38,489 rooms to reach 70% occupancy rate**
1.6
Foreign tourist 2.8
4.4
Current supply in 2010 projected Additional capacity accommodated tourist accommodated tourist needed number number* 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 rooms Source: DOT Hotel Census, August 2005, n=881; DOT Accreditation database as June 2005; Monitor estimation; Monitor analysis
RESULTS FROM 2005 HOUSEHOLD SURVEY ON DOMESTIC VISITORS, April – Sept 2005
43.5% (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 2005
ALMOST 99% OR 23.5 Million domestic travelers had independent domestic trips 17.5 Million spend an average of: 1. Accommodation 2. Food and beverage 3. Sight seeing and guided tour P 600.00
4. Entertainment & Recreation 5. Local transport (sea,air or land) P 400.00
6. Shopping 7. Others P1,200.00
P 400.00
P 300.00
P1,100.00
P3,200.00
RESULTS FROM 2005 HOUSEHOLD SURVEY ON DOMESTIC VISITORS, April – Sept 2005 MOST FREQUENTLY VISITED PLACES: 1.
2.
3.
4.
5.
6.
7.
8.
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10.
11.
NCR CAVITE BATANGAS LAGUNA ILOILO BULACAN NUEVA ECIJA PAMPANGA CEBU PANGASINAN ALBAY
Visitor Profile And Travel Characteristics, 2006
Mode of Travel
Air (98.73%) Sex
Male (61.22%) Sea (1.27%) Female (37.40%)
Average Age 38.26 years old
Purpose of Visit
Holiday 46.99% VFR (Visit Friends / Relatives ) 26.66%
Business Convention Official Mission 13.18% 1.28% 0.11%
Visitor Profile And Travel Characteristics, 2006
Frequency Visit (%) - First Visit 31.27
- Repeat Visit 51.30
Overall Average Length of Stay ( Nights) 12.06
- Foreign Visitors 10.98
- Overseas Filipino 48.02
Travel Arrangement - Independent 61.67
- Package Tour - Not Stated 18.56
19.77
Average Daily Expenditure (US$) 83.91
Foreign Visitors Overseas Filipino 84.70
55.78
Foreign Visitors Expenditure 2006
Average Daily Expenditure US$ 83.91
Major Items of Expenditure Accommodation Shopping Food and Bev.
Entertainment Local Transport Miscellaneous Guided Tour US$ 25.72
22.01
20.39
7.02
4.71
2.81
0.36
Regional Statistics
Regional Destinations of Foreign Tourists Jan-Dec 2006* 1.
2.
3.
4.
5.
6.
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10.
11.
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REGION VII REGION IV REGION VI NCR REGION III CAR REGION I REGION XI REGION X REGION V REGION II REGION XIII REGION IX REGION VIII REGION XII * Preliminary 542,159 434,530 266,891 262,364 155,394 76,812 52,786 52,756 46,284 31,153 24,453 16,200 13,647 13,329 4,606
Regional Destinations of Domestic Tourists Jan-Dec 2006* 1.
2.
3.
4.
5.
6.
7.
Region IV Region VI Region VII CAR Region X Region XI Region XII Region II 8.
9.
10.
11.
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Region V Region IX Region XIII Region I Region III Region VIII NCR * Preliminary 5,852,860 1,259,332 1,081,903 902,917 837,851 699,552 618,077 610,715 587,823 480,297 341,844 281,582 251,634 189,643 68,694
CLARK INT’L AIRPORT VISITOR ARRIVALS, JAN – DEC 2006 REGION VOLUME EAST ASIA ASEAN AMERICA EUROPE AUSTRALASIA/PACIFIC AFRICA MIDDLE EAST UNSPECIFIED FILIPINOS GRAND TOTAL FOR 2006 GRAND TOTAL FOR 2005 GROWTH RATE 37,481 27,093 8,209 7,046 3,057 238 128 8 151,052 235,004 114,902 104.5%
CLARK INT’L AIRPORT International No of Flights, JAN - DEC 2006 AIRLINES NO. OF FLIGHTS TIGER AIRWAYS AIR ASIA ASIANA CR AIRWAYS/HONGKONG AIRLINES SHANGHAI AIRLINES CHINA SOUTHERN GRAND TOTAL 954 725 278 100 5 3 2,065