Global Tourism Trends, Revised

Trends & Prospects in theTourism Industry

A Presentation by:

Undersecretary SIMEON P. MARFORI, IIDepartment of Tourism

Presentation Outline

World Tourism Statistics

Philippine Tourism Overview

General Global Travel Trends

Tourism Product Trends

DOT General Policy and Thrusts

TRCRG Key Strategies

TVET and the New Tourism

2009 World Tourist Arrivals (in Millions)

Source:UNWTO World Tourism Barometer

Vol . 8 No. 1, January 2010

Top International Destinations (2009)Rank Country Volume

1 France 74.2

2 United States 54.9

3 Spain 52.2

4 China 50.9

5 Italy 43.2

6 United Kingdom 28.0

7 Turkey 25.5

8 Germany 24.2

9 Malaysia 23.6

10 Mexico 21.5

Source: UNWTO World Tourism Barometer Interim Update April 2010

World Tourist Receipts (in US $ Billions)

Source:UNWTO World Tourism Barometer

Vol . 8 No. 1, January 2010

94.2

53.2

48.7

40.2

39.7

34.7

30.1

25.6

21.3

21.8

2.4

0 20 40 60 80 100

1 United States

2 Spain

3 France

4 Italy

5 China

6 Germany

7 United Kingdom

8 Australia

9 Turkey

10 Austria (2008)

* Philippines (2008)

2009 World Top Earners: Tourism Receipts (in US$ Billion) (Source: UNWTO World Tourism Barometer, Interim Update, April 2010)

2009 Regional Tourism Receipts (in US$ Billions)

International Tourist Arrivals by (Sub) Regions (in Millions)2004 - 2008

2004 2005 2006 2007 2008Growt

h Rate

(‘08/’07)

World InboundTourist

World 764.4 803.7 847.3

904.2 921.8 1.9%

Europe 424.4 441.6 462.2 487.3 487.9 0.1% 52.9%

Asia and the Pacific

144.2 153.6 167.0 181.9 184.1 1.2% 20.0%

Southeast Asia

47.1 48.5 53.1 59.7 61.6 3.1% 6.7%

Americas 125.7 133.3 135.8 142.9 147.2 2.9% 16.0%

Africa 33.8 37.3 41.4 45.1 47.0 4.0% 5.1%

Middle East 36.3 37.9 40.9 47.0 55.6 15.5%

6.0%

Source: UNWTO World Tourism Barometer Vol. 7 Np. 2, Vol.6, No. 2; Vol. 4. No.3

2008 Southeast Asia Tourist Arrivals (by millions)Source: UNWTO World Tourism Barometer Vol. 7, No. 2, June 2009

Southeast Asia

2008

Malaysia 22,052

Thailand 14,584

Singapore 7,778

Indonesia 6,234

Vietnam 4,236

Philippines 3,139

Cambodia 2,001

Myanmar 193,000(thousand

)

Source:UNWTO World Tourism Barometer Vol . 7, No. 2, June 2009

2004-2009 Visitor Arrivalsto the Philippines

Average Growth Rate: 5.85%

Major Tourist Markets in the Philippines, 2009

Fast Growing Markets in the Philippines (2004 – 2009)

39,581

3,570

18,221

2,273

89,175

155,019

10,674

32,817

55,832

132,330

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

China Russia India Middle East Australia

2004 2005 2006 2007 2008 2009 Linear (2004)

• Foreign Tourism Receipts to GDP ratio grew from 1.9% in 2003 to 3.4% in 2007

• Foreign Tourism Receipts to Total Exports Ratio more than doubled from 3.9% in 2003 to 7.9% in 2007

Importance of Tourism in the Philippine Economy Today

Source:Republic of the Philippines

NATIONAL STATISTICAL COORDINATION BOARD

• Partly because of investments in tourism destinations, construction sector grew by 23.1 % making it a big factor in the record economic growth in 2007

• Employs 9.7% of total employment. Directly employing 3.2 million Filipinos today.

Importance of Tourism in the Philippine Economy Today

Top 14 Destinations in The Philippines 2009

1. Cebu2. Camarines Sur3. Metro Manila4. Baguio City5. Davao City6. Boracay7. Cagayan de Oro8. Zambales9. Bohol10. Puerto Princesa City11. Camiguin12. Cagayan Valley13. Negros Oriental14. Ilocos Norte

GlobalTravel Trends

Senior Citizens and Women will travel more..

• Senior citizens and Women travelers are fast increasing in the bulk of the world travelers;

• Prompted the push for women-friendly destinations as more female professionals are travelling;

• To attract the aging traveling market, there is a push for retirement villages or nursery villas;

• Elderly travelers are most attracted to visiting cultural sites. They are also keen in short holiday breaks.

Global Travel Trends

Source: Newsweek Magazine, May 2010

The Modern Chinese Traveler: Rise of Global China

• China is now ranked as the 2nd largest source of tourists in some countries of Asia such as Singapore, Indonesia, Taiwan, Nepal and No. 1 in Vietnam, Macau and Hong Kong.

• It has overtaken Japan as The Leading Asian Market to Europe with 11 million arrivals in 2008.

• There is a re-discovery of Chinese culture, history as well as a thirst for Western culture. As China opens up to the world, The World is also opening to China.

Global Travel Trends

Source: Newsweek Magazine, May 2010

Global Travel Trends

Travel has become more “Activity-Based” rather than “Destination-Based”

Travelers nowadays are deciding what activities they want to partake first before choosing a destination.

Destinations must create unique activities to entice tourists. This paved the way for the creation of NICHE MARKETS which particularly lures in a specific kind of traveler.

This shift has also required the delivery of custom-made tours which require the experience to be unique and personalized.

Source: Newsweek Magazine, May 2010

Global Travel Trends

Booming Economies and the development of Low-Cost Carriers (LCC) makes Intra and Inter –Regional Travel more affordable and accessible

Due to low cost of airfares, people can now afford to travel frequently

This has also changed people’s traveling habits and patterns as they are now more into traveling multiple short-haul breaks

LCC’s is also one of the reasons that drive the growth of Intra-Regional Travel within the Asia – Pacific Region

Source: Newsweek Magazine, May 2010

Global Travel Trends

There is Polarization of travel spending

Though many people can now travel, most are still under a tight budget. Thus, there is a rise for budget hotel accommodations. There are also many international hotel chains that are investing in this type of accommodations.

Source: Newsweek Magazine, May 2010

Global Tour Products

Medical Tourism

Medical Tourism:

• One of the fastest growing tourism market segments

• Medical Travel today is estimated to be at the range of $40 to $60 Billion, with an annual growth rate of 20%

• By 2013, it is predicted that Medical Tourism is going to be a $188 billion global business.

•The Department of Tourism launched a program in 2006 to entice and attract medical tourists into the country.

•In 2007, the Philippines has about 60,000 foreign patients. This grew to about 100,000 in 2008.

• Since the launch of the Department’s program, medical revenues have grossed to an estimated $350 Million.

•By 2015, the DOT expects the influx of 1 Million patients, generating a total revenue of $3 Billion with 200,00 foreign patients arriving annually.

Medical Tourism:

Medical Tourism:The Philippines as a preferred Medical Destination:

• Filipino competence and warm Hospitality

• Compassion and Sensitivity

• Filipinos unique brand of Quality Care

• Quality of Treatment

• Fluency in English

• Competitive Medical Costs

• Highly Skilled Medical Professionals

Medical Tourism:Target Markets:

1. United States – accounts for $ 1.7 Trillion of the

$3.3 Trillion spent annually for Health Care

worldwide

o There are over 50 million uninsured Americans and a large number of underinsured, who are seeking treatments outside the U.S. 2. Europe – the healthcare infrastructure is

not able to cope up due to the increasing life expectancy and aging population

3. Canada

4. Australia

Medical Tourism:

Medical Services Offered in the Philippines:

• Dental & Orthodontics

• Surgery – Angioplasty, Angiogram

• Dialysis & Kidney Transplant

• Orthopaedic Surgeries

• Cosmetic, Reconstructive & Curative Procedures

• Opthalmology, Lasik and CK procedures

• Executive Check-Up, MRI , CT-Scan

Medical Tourism:QUALITY STANDARDS:

LOCAL :

DOT-Accreditation for tertiary hospitals DOT-Accreditation for ambulatory clinics

INTERNATIONAL:

Joint Commission International (JCI)

JCI-Accredited Hospitals in the Philippines

1. Medical City of Pasig2. St. Luke’s Medical Center (Quezon City)3. Chong Hua Hospital (Cebu City)

Adventure Sports Tourism

“…an outdoor leisure activity that generally takes places in an unusual, exotic, remote &

wilderness setting sometimes involving some form of

unconventional means of transportation and tending to be associated with low or high levels

of physical activity.”

Adventure Tourism:

• Fastest growing segment of the Leisure Travel Industry (Adventure Travel Trade Association /ATTA).

• This is due to the fact that people are increasingly seeking authentic/unique experiences that stretches the imagination and create potential memories that last a lifetime.

• Involves a variety of activities ranging from soft adventure to extreme adventure. e.g. Kayaking, Mountaineering, Caving, White Water Rafting, etc.

Adventure Tourism:

AdventureTourism:• Trends in Adventure Tourism:

Girlfriend Get-Aways – women travelling together. More than 50% of adventure travelers are women, between the ages of 41 to 60 years old.

Glamping (Glamorous Camping)

Animal Safaris/ Wildlife Vacation

Adventure Tourism:

Quality Standards:

DOT – Accreditation of Mountain Guides

DOT- Accreditation of Cave Guides

Meetings, Incentive Travel, Conventions and Exhibitions

(M.I.C.E)

Meetings, Incentives, Conventions and Exhibitions (M.I.C.E):

• A fast growing travel trend that combines Business and Leisure.

• Due to Globalization, the business travel market is foreseen as growing faster than leisure travel. Among the business travel market, Asian Business Travelers are the fastest growing segment.

• Asia is fast becoming a Convention Hub. This is due to being a major recipient of direct foreign investments and the increase of many multi-national corporations in the region.

• Aside from foreign investments, the many different exotic culture of Asia is also a primary draw for Westerners.

Meetings, Incentives, Conventions and Exhibitions (M.I.C.E):

• Destination Appeal is important when selecting a convention site.

• M.I.C.E Buyers are increasingly looking for new destinations and activities.

• Group Incentive Travel will become more active with host communities. At times, local immersion is integrated to make the experience more meaningful.

Agri - Tourism

Agri – Tourism:

“ a form of tourism which capitalizes on

rural culture and farming as a

destination and attraction.”

Agri – Tourism:• The main appeal of Agri-tourism is its Cultural Landscape where a glimpse of how the past generations lived and worked.

• Typical Regional Crops and Local Breeds can become an attraction to tourists.

• The main benefit of Agri-tourism is the Improvement of Rural Communities thus also promoting Regional / Countryside Development.

• Farmers generate additional income by hosting visitors, educating the public and promoting farm products.

Agri – Tourism:

Quality Standards:

DOT – Accreditation for Agri-Tourism Sites

VolunTourism

VolunTourism:• Refer to active, hands-on, volunteer vacations that address global issues of environmental degration and poverty alleviation while fostering understanding between visitors and host communities.

• One of the growing trends in tourism, with a 30% participation increase in 2007.

• 6% of all American active travelers took a volunteer action every year.

VolunTourism:• Voluntourism is on the rise in most developed countries. As their population ages quickly, these have prompted Corporate Social Responsibilities becoming a norm.

• There has been increased incentive trips where they incorporate Community Activities to enrich participants’ travel experience.

• Among the activities being undertaken are Building Houses, Cleaning Up of polluted areas, Immersion with the local community, Feeding, etc.

• Participants of Voluntourism usually consist of Corporate Workers, “Baby Boomers” and Students.

VolunTourism:Opportunities

Construction-related Skills• Basic Design• Carpentry • Plumbing • Electrical• Steelworking• Woodworking

Environmental Skills• Landscaping• Forestry• Animal & Marine Husbandry• Diving• Boating

Food Tourism

Food Tourism:• A new travel trend that rose from the demand for new experiences and adventure while experiencing local culture.

• Trends that drive Culinary Tourism: Individualism Multi-cultures consumer Well-being/ healthy lifestyle Desire for new experience and cultural immersion Role of celebrity chef and media

Food Tourism:

The Department of Tourism launched a culinary tourism program dubbed as “Kulinarya” to introduce Philippine Flavors to Domestic and International scene and promote the country as a culinary destination

Food Tourism:Opportunities:

Food Service Industry

Food Handling

GMP

F&B

Hotel & Restaurant

Cooking

Some Updates on the new DOT

DOT Policy & Program Thrusts

Implementation Tourism Act of 2009 (R.A. No. 9593)

Update Formulate National Tourism Development Plan 2011-2016

Assist Llocal Tourism Development Planning

Integrate Local with National

DOT Policy & Program Thrusts

Mandatory Accreditation of Primary Tourism Enterprises

Promote Sustainable Tourism

-Engage Communities

-Partnership with LGUs & Private Sector

Go for Quality Tourists (vs Quantity)

-Longer Staying

-Higher Spending per capita

Niche (Targetted vs Shotgun) Marketing

Key Strategies Transform the Bureaucracy

- Creating a culture of service, transparency & accountability

Build Public-Private Sector Partnership

- Regulation & enforcement

Area Clustering

- Complementation vs Competition

- Tourism Circuits vs Single Destination Products

- New Tourism Products:

>General, Novice & Specialty

>AAA, AA & A Class

Build Capability of Key Players at the National & Local Level

-Donor Partnerships

-Ploughbacks

Develope National Tourism Database & Knowledge Management Systems

Key Strategies

Thank You…