DANIEL G. CORPUZ Undersecretary Philippine Department of Tourism Progress Report on Philippine Tourism Development

Visitor arrivals to the Philippines 2006-2010 Visitor arrivals in 2010 increased by 16.7% vis-a-vis 2009 level Visitors from East Asia totalling to 1.2 million accounted for 44.4% of the overall tourist traffic Arrivals from Europe accounted for 10% share to total inbound Visitors from ASEAN grew by 16.7% for 255,586. Intra-ASEAN traffic accounted for a modest share of 8.4% to total visitors Inbound visitors expanded at an annual average growth rate of 4.5% in the last five years; while 6.2% in the past ten years. 8.48.71.53-3.9016.68

Top markets, 2010/2009 Korea rebounded as the countrys top source market in 2010 with hefty 48.7% growth in visitor volume Japan posted a remarkable 10.3% increase in arrivals after experiencing a decline in the past three years China and Hongkong registered positive growth of 20% and 8.9% respectively despite the impact of August incident Taiwan and Australia continued to show robust growth in visitors at 39% and 11%, respectively New growth markets: India and Russia registered 5% and 33% increases in arrivals

Tourist Arrivals from the Middle East (2010/2009) Total Arrivals: 48,716 Growth Rate: 4.07%

Key Tourism Products and Target Markets Bird Watching Source Markets: USA, Canada, Australia, and UK Competitive Advantage: - variety of endemic bird species - access to bird watching sites - availability of bird watching guides - safe, comfortable and clean accommodation - availability of other natural and cultural attractions in destinations Diving Source Markets: USA, Canada, Hong Kong, Russia, Italy Switzerland, Japan, Australia Competitive Advantage: - sites with good visibility and varied marine species - value for money/ quality accommodation with complete facilities and safe dive equipment - qualified and trained dive masters/ instructors

Leisure Holiday and General Tourism Source Markets: Korea, Taiwan, USA, Canada, India, Malaysia, Middle East Competitive Advantage - high end resort facilities - health and wellness activities - shopping, dinning and entertainment - light adventure/ sightseeing areas Meetings, Incentives, Conferences and Exhibitions (MICE) Source Markets: Australia, USA, Canada, Singapore, Malaysia, India, Vietnam Competitive Advantage - venues with safe, secure and well-equipped MICE facilities - big accommodation facilities for big groups - post tours and activities (e.g. sightseeing, local food) - incentivized activities (dining, shopping, wellness) - availability of local event organizers/ planners Key Tourism Products and Target Markets

Medical Tourism (Health and Wellness) Source Markets: USA, Canada, Australia, ME, HK Competitive Advantage: - JCI accredited hospitals - luxurious hospitals nearby accommodations - medical tour packages that include medical procedures and recuperation - medical concierge Education Tourism (ESL, et. al) Source Markets: Korea, Taiwan, Vietnam, Japan, Hong Kong Competitive Advantage - ESL and other degree courses for foreign students - language learning institutions accredited by BI and DOT - light adventure and sightseeing activities - availability of professional and qualified teachers Key Tourism Products and Target Markets

Golf Source Markets: USA, Korea, Japan, HK, Canada Competitive Advantage - world class golf courses with de luxe and first class accommodation facilities - spa and wellness facilities nearby golf areas - light activities (e.g. shopping - side trips to other leisure destinations Adventure (surfing, water sports, hiking, biking, etc.) Source Markets: Australia, UK, Malaysia, USA, Canada Switzerland, Japan, Australia Competitive - accessible and exceptional adventure sites - accommodation facilities near adventure sites - seamless travel - facilities and graded equipment Key Tourism Products and Target Markets

Top Tourist Destinations Camarines Sur Camarines Sur Metro Manila Metro Manila Cebu Cebu Boracay Island Boracay Island Davao Davao Palawan Palawan Bohol Bohol

Camarines Sur Water Sports Adventure every stay is a revelation.

Metro Manila Culture History Shopping the political, economic, social, cultural, and educational center of the Philippines.

Cebu Culture History ...the main center of commerce, trade, education and industry in the Visayas.

Boracay Island Swimming White Sand beaches Water Sports palm-studded island with white, talcum- fine sand beach, balmy weather and warm, crystalline waters - iike a hypnotic magnet that lures many to a lotus existence.

Davao Tradition Adventure Richest City outside of Manila Home of the Philippine Eagle named by the Foreign Direct Investment Magazine as the 10th "Asian City of the Future (2007/08)

Palawan Wonders of Nature Diving The Worlds Largest Pearl City of World Heritage Outdoor recreation and stewardship of natural heritage. Pleasure and enjoyment plus environmental protection.

Bohol Wonders of Nature Diving Culture History Gods Little Paradise

Tourism Crisis Management Scheme Crisis Communications Team (CCT) Department of Tourism Crisis Management Team (CMT) ASEAN Crisis Communications Team (ACCT)

The illustration shows the structure within the Department of Tourism when a crisis related in tourism arises. A Crisis Management Team (CMT) will be created within the Department and a Crisis Communications Team will be one of the sub-teams to be created within the CMT. If the crisis became a potential crisis for the whole ASEAN region, a member of the DCCT will be appointed as the representative in the ACCT. This is to ensure that the ACCT has access to facts of the crisis at source and the DOTs communications plans. However, it is only in the event that the incident is deemed as a potential crisis for tourism in the region that the ACCT representative needs to inform the ACCT. The ACCT will then be responsible in minimizing the impact of the crisis on ASEAN tourism through effective communications.

Endorsed Tourism Projects, 2010 Total amount of Php 17.86 billion tourism projects were endorsed for grant of incentives from January to November 2010 Accommodation sector accounted the biggest share at Php 17 billion with 2,598 rooms expected to be available and 3,834 employment to be generated once operational Among new hotels expected to be built are: Solaire Manila (494 rooms), Entrata Hotel (345 rooms) renovation of Holiday Inn Galleria Manila (285 rooms) and Midas Hotel and Casino (230 rooms)

Actual and Projected Passenger Arrivals at Tagbilaran Airport, 2005 2025 Source: Department of Transportation and Communications Economic development in the province with tourism as a major industry Some 862 rooms are expected to open between 2010 2013, more are anticipated as demand continuous to increase New tourist products and services are being developed and promoted in various markets New Bohol International Airport Passenger traffic AAGR = 30.26% Increasing foreign and domestic traffic Increasing passenger crowding at the arrival and departure areas Not enough facilities for international and charter flights from major source markets 15 September 2011 Bid Deadline

Actual and Projected Passenger Arrivals at Puerto Princesa Airport, 2005 2025 Source: Department of Transportation and Communications Active national and local government support to environmental initiatives 2,632 rooms are expected to open between 2010 to 2013 Ecotourism and nature tourism products are being geared up for Palawan Puerto Princesa Airport Development Passenger traffic AAGR = 22.38% Arrival area is not convenient for travelling public, unable to process large number of passengers comfortably No provision for CIQ for international flights Five local airlines are currently servicing the airport 24 July 2011 Bid Deadline

Actual and Projected Passenger Arrivals at Legaspi Airport, 2005 2025 Source: Department of Transportation and Communications Passenger traffic AAGR = 22.3% Need to develop a new airport with international standard to supplant Legaspi Airport as the main tourist gateway to Bicol region Substantial investments in hotel and resort development are being poured by private sector and local government units in Albay and nearby provinces of Camarines and Sorsogon New tourism products and events being developed and promoted to international and local tourists Daraga International Airport 15 November 2011 Bid Deadline

Actual and Projected Passenger Arrivals at Kalibo International Airport, 2005 2025 Source: Department of Transportation and Communications Fast becoming an important international gateway to Western Visayas, especially, Boracay Island Three local airlines have at least two flights a day, and five (5) international chartered flights have twice or three times a week Charter flights from Taiwan, Korea and China are occasionally mounted Passenger traffic AAGR = 42.38%. Annual airport capacity is 1 million Promotion of Boracay Island as premier holiday and resort destination in Central Philippines Some 1,313 rooms are expected to open in Boracay Island between 2010 to 2013 Increasing international charter and domestic operations Kalibo International Airport

Actual and Projected Passenger Arrivals at Mactan-Cebu Intl Airport, 2005 2025 Source: Department of Transportation and Communications 5,631 rooms are expected to open between 2010 to 2013 Malapascua and Bantayan Islands in Northern Cebu are fast becoming major destinations for diving and water sports activities Investments in accommodation and travel and tour operation are expanding Mactan-Cebu International Airport Passenger traffic AAGR = 13.46%. Capacity per annum is 4.5 million. Five local and six international airlines uses the airport Tourist arrivals in Cebu expanded by 4.34% in 2009 % share of visitor arrivals from Mactan-Cebu Airport grew from 10.49% in 2005 to 12.17% in 2009, making it the second busiest international airport in the country

Plans and Programs, 2011 Planning and Product Development Develop a New National Tourism Development Plan/Strategy (RA 9593) Undertake product diversification and enhancement Pursue destination development with focus on access and infrastructure (RA 9593) Provide capacity building on Local tourism planning and data gathering (RA 9593) Promote public-private partnership (PPP)

Plans and Programs, 2011 Standards and Investments Formulate new and update existing standards Implement the mandatory accreditation of primary tourism enterprises (RA 9593) Develop and implement human resources upgrading program Facilitate investments in Tourism Enterprise Zones and Strategic Destination Areas (BOI, PEZA and TIEZA)

Plans and Programs, 2011 Marketing and Promotions Develop a New Philippine Tourism Brand Focus on above the line marketing Advertising New Media social networking and Internet Trade and consumer promotions Maximize growth in new markets e.g. China, India, Russia and Middle East Enhance domestic tourism promotion

Documents

DANIEL G. CORPUZ Undersecretary Philippine Department of Tourism Progress Report on Philippine Tourism Development