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Philippine Department of Tourism Destination Branding Through “It’s More Fun in the Philippines” Terrell Levine Master of Arts in Law & Diplomacy, 2015

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Page 1: Philippine Department of Tourism

Philippine Department of Tourism Destination Branding Through “It’s More Fun in the Philippines”

Terrell Levine Master of Arts in Law & Diplomacy, 2015

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PHILIPPINE DEPARTMENT OF TOURISM: DESTINATION BRANDING THROUGH “IT’S MORE FUN IN THE PHILIPPINES” In November 2013, Philippine Department of Tourism (DoT) Secretary Ramon Jimenez sat

in his office along Senator Gil Puyat Avenue in Manila’s Makati business district. Two years ago, he

was appointed to the post and tasked with increasing international tourist arrivals to the country. A

former advertising executive, he had previously worked with brands including Cebu Pacific Airlines,

Ivory Soap, and San Miguel Beer. During his tenure as Secretary, he successfully launched the

innovative “It’s More Fun in the Philippines” marketing campaign to build awareness for the

country’s vast tourism product. There was reason to celebrate, between 2011 and 2013 international

tourist arrivals increased 19% to 4.7 million visitors and US$ 4.4 billion1 in tourism spending flowed

into the country. However, the prospect of reaching the DoT’s goal of 10 million visitors by 2016

seemed unclear. And at that very moment Typhoon Yolanda was brewing just off the coast with the

city of Tacloban directly in its path.

I. BACKGROUND INFORMATION

The Philippines is an archipelago of 7,107 islands located to the east of the South China Sea

and west of the Pacific Ocean (Exhibit 1). The country is divided into three major islands groups:

Luzon, Visayas, and Mindanao. Filipino (which is based on the Tagalog dialect) is the official

national language and English is widely spoken. Major ethnic dialects include: Tagalog, Cebuano,

Ilocano, Hiligaynon, Bicol, Waray, Pampango, and Pangasian2. The country is predominantly

                                                                                                               1 Tourism Statistics. 15 January 2015. 15 March 2015 <http://www.tourism.gov.ph/Pages/IndustryPerformance.aspx>. 2 CIA. The World Factbook, Philippines. 01 January 2015. 18 March 2015 2 CIA. The World Factbook, Philippines. 01 January 2015. 18 March 2015 <https://www.cia.gov/library/publications/the-world-factbook/geos/print/country/countrypdf_rp.pdf>.

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Catholic (82.9%) with other religious populations including Muslim (5%), Evangelical (2.8%), and

Iglesia ni Kristo (2.3%)3. According to the World Bank, the Philippines’ population is 100.1 million

(2014) making it the 13th most populous nation in the world. Major urban areas include: Manila

(11.9 million), Davao (1.6 million), Cebu City (855,000), and Zamboanga (884,000).

Important societal indicators are provided in Table 1. The government’s Philippine

Development Plan 2011-20164 emphasizes a path to inclusive growth for the entire population

through maintaining high economic growth rates, increasing job numbers, and reducing poverty.

The World Bank classifies the Philippines as a ‘lower middle income’ country developing in the Asia

Pacific region. Transparency International has recognized the country’s significant strides to combat

corruption. In 2014, the organization’s Corruption Perceptions Index ranked the country 85th out of

175 nations, up from 94 (2013) and 105 (2012). The ranking placed Denmark as the least corrupt

country in the world. North Korea and Somalia rank as most corrupt5.

Table 1: Societal Indicators, Philippines Median age 23.5 years Population growth rate 1.81% Birth rate 24.24 births/l,000 population Urban population percentage 48.8% Rate of urbanization 2.16% (2010-15 estimation) Infant mortality rate 17.64 deaths/1,000 live births Literacy rate (those over the age of 15 with ability to read/write)

95.4%

Health expenditures 4.1% of GDP Education expenditures 2.7% of GDP Source: CIA. The World Factbook, Philippines. 01 January 2015. 18 March 2015

                                                                                                               3 CIA. Ibid. 4 National Economic and Development Authority. Philippine Development Plan 2011-2016. 01 January 2011. 15 5 Causuay, Angela. "PH perceived to be less corrupt – 2014 global survey." Rappler. Manila, 15 January 2015. CIA. The World Factbook, Philippines. 01 January 2015. 18 March 2015  

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The Philippines was a Spanish colony for more than three centuries, influences can be seen

today through language, culture, architecture, etc. In 1898, the country was ceded to the US at the

end of the Spanish-American War. In 1935, the country became a self-governing commonwealth in

preparation for independence6. In 1942, the Japanese began wartime occupation of the Philippines

before it gained independence in 1946. The 1950’s and 1960’s were marked by poverty, corruption,

and social unrest. In 1986, President Ferdinand Marcos was forced into exile after his controversial

20-year rule. Corazon Aquino the widow of a murdered opposition leader assumed the presidency.

In 1992, Fidel Ramos was elected and his administration as marked by stability and economic

progress. The presidencies of Joseph Estrada and Gloria Macapagal-Arroyo were marked by serious

corruption allegations and at the same point economic stability. In 2010, Benigno Aquino was

elected to the Presidency. According to his office, he has been:

[T]he catalyst for unprecedented economic growth, which has trickled down to the margins

of society through improved government services, reforms in the education system, and

conditional cash transfers for the poor; an inspired campaign for good governance and

justice as evidenced by the prosecution of corrupt and abusive government officials; and the

empowerment of every citizen so that they may participate in building a nation of hope and

opportunity.7

President Aquino is also credited with ushering in pro-tourism policy to the Philippines. In a 2012

speech he asserted: "Tourism is one of the sectors we are paying particular attention to, because it is

one in which we can successfully pursue our agenda of inclusive growth, given the multiplier effect

on jobs and the amount of money it brings into our country."8 That same year Secretary Jimenez

echoed this sentiment: “We are living in exciting times. This is the first time we have a President,

                                                                                                               6 CIA. Ibid. 7 Office of the President. "Presidential Biography." 01 January 2015. Office of the President of the Philippines. 18 March 2015 <http://president.gov.ph/biography/>. 8 Office of Presidential Communication Operations. Acquino cites tourism as country's engine of growth. Manila, 7 July 2012.

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His Excellency Benigno Aquino III, who fully supports tourism. It is the vision of the country to

rebuild a vibrant tourism industry.”9

The Philippine Economy

As the Asian Development Bank describes: “The Philippines has demonstrated resilience

amidst a difficult external environment, in contrast to the regional trend. Benefiting from sound

economic fundamentals and a highly skilled workforce, the economy has posted steady growth over

the past 5 years, reaching near-record highs in 2013.” For the past few years, annual GDP growth

rates for the country have been strong10:

Table 2: Philippine GDP Growth, 2010-2013 2010 2011 2012 2013 Philippines 7.6% 3.7% 6.8% 7.2% Source: The World Bank. World Bank Data. January 2015. <http://data.worldbank.org/country/philippines#cp_wdi>.

The country’s 2013 GDP figure totaled US$ 272.1 billion reflecting a real growth rate of

6.8%. GDP per capita is estimated at $4,70011. GDP is represented by agriculture (11%), industry

(32%), and services (57%). Correspondingly, labor force employment is agriculture (32%), industry

(15%), and services (53%). Major industries include textiles, pharmaceuticals, chemicals and wood

products. Agriculture products include rice, coconuts, sugarcane, as well as pork and fish. Exports

include electronic equipment, machinery, garments, and coconut products. According the

Philippines Statistics Authority, tourism represents 5.9% of GDP. Economic challenges for the

country include governance, infrastructure, attracting foreign investment, and easing the ability to do

business.

                                                                                                               9 Ehrlich, Richard. "Special report: Philippines tourism, a tough sell?" CNN. Manila, 11 February 2012. 10 The World Bank. World Bank Data. 01 January 2015. 15 March 2015 <http://data.worldbank.org/country/philippines#cp_wdi>. 11 CIA. Ibid.  

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Strong growth in the services sector as well as the remittances sent home from five million

Filipinos working abroad likely contribute to the country’s economic viability and stability. Since

2010, the country moved up 33 places in the World Economic Forum’s Global Competitive Index12.

This jump indicates that the country has made significant improvements to drive economic growth,

productivity, and prosperity13.

In 2014, World Bank President Jim Yong Kim highlighted the country as “the next

economic miracle in Asia,” and many international media outlets have echoed similar sentiments:

The Economist: The Philippines is on an infrastructure binge: 57 projects are in the pipeline

(though contracts have been awarded for only seven) and next year’s budget allots 562.3

billion pesos ($12.8 billion), around 4% of GDP, to infrastructure, with a further 802.9

billion pesos planned for 2016. The splurge is an attempt to maintain economic growth fed

in part by a recent surge of foreign direct investment (FDI). Money flowing into the country

has tripled since 2010, when Benigno Aquino was elected for a non-renewable six-year term

as president.14

The Wall Street Journal: While China and other Asian economies are looking at easing

monetary policy to spur growth, the Philippines is moving in a different direction, casting off

its long-held reputation as the "Sick Man of Asia."15

Financial Times: The Asian Development Bank expects the Philippine economy to grow 6.4

per cent this year, the highest in the region after China.16

                                                                                                               12 Rivera, Danessa. "PHL is most improved country in global competitiveness – WEF report More from: http://www.gmanetwork.com/news/story/377550/economy/business/phl-is-most-improved-country-in-global-competitiveness-wef-report ." GMA News Network. Manila, 3 September 2014. 13 World Economic Forum. The Global Competitiveness Report 2014-2015. Report. World Economic Forum. Geneva: WEF, 2014. 14 The Economist. "Coming up jasmine." The Economist. Manila, 13 August 2014. 15 Larano, Cris. "As Economy Soars, Philippines No Longer 'Sick Man of Asia'." Wall Street Journal. Manila, 28 August 2014. 16 Noble, Josh. "Philippine economy defies Asian slowdown." Financial Times. Manila, 19 January 2015.  

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Generally, in the past 5 years the Philippines has done very well economically and growth has

accelerated. That said, issues surrounding corruption, infrastructure, and country image remain

impediments to future success. These characteristics are significant influencers to the tourism

industry.

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II. TOURISM IN THE PHILIPPINES

In 2003, the Philippines had 1.9 million foreign tourist arrivals and in the past decade this

figure has more than doubled. Exhibit 2 displays upward growth in visitor arrivals between 1960

and 2011. In 2011, tourism contributed PhP 571.3 billion to the Philippine economy or 5.9% of

GDP17. However, according the Philippines Statistics Authority: “For every 10 tourists who visited

the Philippines from 2008 to 2010, 15 tourist went to Vietnam, 20 tourists went to Indonesia, 26

tourists went to Singapore, 44 tourists went to Thailand, and 70 tourists went to Malaysia.”18 While

the Philippines has an abundance of tourism offerings, it operates in a highly competitive tourism

environment with extremely well-funded competitors such as Malaysia, Indonesia, and Singapore.

This situation makes differentiation essential in order to stay competitive.

Tourism Offerings

Lonely Planet19 recognizes the abundance of activities and destinations within the country:

“The Philippines is defined by its emerald rice fields, teeming mega-cities, graffiti-splashed jeepneys,

smoldering volcanoes, bug-eyed tarsiers, fuzzy water buffalo and smiling, happy-go-lucky people.”

Exhibit 3 displays a variety of tourism product in the Philippines. A few major destinations include:

• Banaue: An eight-hour bus ride from Manila, the 2,000 year-old rice terraces of Banaue are

set into the Ifugao Mountains and fed by ancient irrigation systems. Filipinos commonly

refer to the site as the “Eighth Wonder of the World.”20

                                                                                                               17 Philippine Statistics Authority. Contribution of Tourism Industry to the Economy. Manila, 26 November 2012. 18 Philippine Statistics Authority. Philippine Tourism: When will we know that, indeed, It Is More Fun In The Philippines? Manila, 6 June 2012. 19 Lonely Planet. Introducing Philippines. 1 January 2015. 16 March 2015 <http://www.lonelyplanet.com/philippines> 20 Philippines Statistics Authority. "Sexy Statistics." 6 June 2012. Philippine Tourism: When will we know that, indeed, It Is More Fun In The Philippines? 19 March 2015 <http://www.nscb.gov.ph/sexystats/2012/SS20120606_tourism.asp >.

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• Bohol21: Known for wide-eyed tarsiers and the Chocolate Hills (Exhibit 3), an area with

1,000+ hills covered in grass that turns brown during the dry season, Bohol provides a

wealth of travel options. The diving on nearby Panglao Island is also a draw.

• Boracay: Consistently voted to Travel + Leisure’s “Best Beaches” list, Boracay is one of the

Philippines best-known destinations. The island provides pristine beaches, activities

including island hopping, and numerous restaurants/clubs.

• Cebu22: Cebu is the third largest city in the Philippines and the central hub of the Visayas

region. Just outside the city, the beaches and water activities abound on islands and local

resorts.

• Manila: The gateway to the Philippines, most visitors fly through this capital city before

venturing to other destinations. Metro Manila is actually composed of 16 cities. Intramuros,

the walled ‘old’ city, provides a glimpse into the Spanish colonial period.

• Palawan: Also an alumnus of Travel + Leisure’s “Best Islands” list, Palawan received a

strong endorsement from the publication: “This lightly populated archipelago of 1,780

islands makes a splashy debut on the World’s Best Islands list by nabbing the No. 1 title

thanks to its unspoiled beauty, abundant wildlife, and seascapes, which T+L readers deemed

second to none.”

• Puerto Princesa23: The main attraction of this green city is the Puerto Princesa

Subterranean River, an 8.2km underground river beneath a mountain range. This area is a

UNESCO World Heritage Site and one of the New 7 Wonders of the World.

Visitors To The Philippines

In 2011, foreign visitor arrivals to the Philippines totaled 3.9 million people, an 11.5%

increase over 2010. As Table 2 indicates, major inbound groups came from East Asia and North

                                                                                                               21 Lonely Planet. Introducing Bohol. 1 January 2015. 15 March 2015 <http://www.lonelyplanet.com/philippines/the-visayas/bohol>. 22 Lonely Planet. Introducing Cebu. 1 January 2015. 15 March 2015 <http://www.lonelyplanet.com/philippines/the-visayas/cebu >. 23 Philippine Department of Tourism. Top Destinations: Puerto Princesa. 1 November 2014. 17 March 2015 <http://itsmorefuninthephilippines.com/puerto-princesa/>.

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America. Top arrival countries included: South Korea (925,204), USA (624,527), Japan (375,496),

China (243,137), Australia and UK (104,466).

TABLE 2: INTERNATIONAL ARRIVALS TO THE PHILIPPINES 2011 2010 2009 2008 Grand Total 3,926,633 3,520,471 3,017,099 3,139,422 ASEAN 335,222 298,176 255,586 254,077 East Asia 1,842,133 1,563,013 1,202,995 1,370,059 South Asia 62,961 50,914 46,960 43,662 Middle East 55,829 48,716 46,811 36,615 North America 743,448 707,705 682,696 681,922 Central America - - - - South America 4,208 3,650 3,597 3,505 Western Europe 158,393 149,193 138,946 134,663 Northern Europe 164,205 150,178 138,950 136,260 Southern Europe 33,531 32,388 29,281 30,986 Eastern Europe 27,171 21,821 16,522 16,819 Eastern Mediterranean Europe 7,651 7,411 6,141 - Oceania 228,144 203,211 185,014 174,583 Africa 4,193 3,584 3,082 3,317 Others and Unspecified Residences 52,392 52,066 62,597 53,531 Overseas Filipinos 207,152 228,445 197,921 195,287

Source: Philippine Statistics Authority. Tourism Statistics. 15 November 2014. 16 March 2015 <http://www.nscb.gov.ph/secstat/d_tour.asp >. In 2010 the average length of stay for foreign visitors was 7.83 days and for Overseas

Filipinos24 it was 13.7 days.

Competitive Landscape

The World Economic Forum’s ASEAN Travel & Tourism Competitiveness Report 2012 (TTCI)

recognizes that: “The Southeast Asia region has many assets to lure the visitor. It boasts some of

the world’s most spectacular landscapes and attractions, vast ecosystems with stunning wildlife, and

rich culture and history.”25 ASEAN has no trouble attracting visitors and it is estimated that 76.9

                                                                                                               24 A person of Filipino origin that lives outside oft he Philippines. 25 World Economic Forum. ASEAN Travel & Tourism Competitiveness Report 2012. Report. Geneva: WEF, 2012.

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million international tourists ventured to the region in 201126. The economic benefit for ASEAN

was robust, 2011 international tourism receipts totaled US$ 68.6 billion27. However, each country

and their respective tourism authorities were and continue to be challenged to differentiate their

tourism experience within ASEAN and capture the greatest portion of the industry’s pie.

Exhibit 3 details visitor arrival figures from 1979-2010 for Malaysia, Thailand, Singapore,

Vietnam and the Philippines. Table 3 indicates the increases in arrivals for each of these countries

between 2000 and 2010.

Table 3: ASEAN Visitor Arrival Figures Malays ia Thai land Singapore Indones ia Vietnam Phi l ippines

2000 10,222 9,509 7,691 5,064 1,383 1,992 2010 24,577 15,842 9,161 7,003 5,050 3,520

% Change 140% 67% 19% 38% 265% 77% Source: Data for 1979-2002, UN Statistical Yearbook for Asia and the Pacific 1990, 1996 and 2003; Data for 2003-2007, ASEAN Statistical Yearbook 2000-2008; Data for 2008-2010, World Tourism organization There are significant jumps. Malaysia’s arrivals increase from 10 million to nearly 25 million visitors.

Vietnam nearly triples its arrivals reaching 5 million+ visitors. Thailand and the Philippines achieve

gains of 67% and 77% respectively. Comparing 2012 total ASEAN arrival figures to specific

countries, Malaysia captured 33% of total foreign ASEAN tourist arrivals, Thailand 22% and

Singapore 16%. By comparison, the Philippines’ share was 5%28.

It is clear that certain countries outperform others and the TTCI provides some insights.

This report ranked 139 countries on a variety of factors including safety and security, health and

hygiene, infrastructure, and price competitiveness. ASEAN nations held the following positions:

Singapore (10), Malaysia (35), Thailand (41), Brunei (67), Indonesia (74), Vietnam (80), Philippines

(94), and Cambodia (109). Top-ranked countries had numerous factors working in their favor.

                                                                                                               26 Ibid. 27 Ibid. 28 Congressional Policy and Budget Research Department. Facts in Figures, The Philippines Tourism Industry. Report. Manila: House of Representatives, 2014.

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Singapore’s strong economy, governance, and transparency was a strong asset for the development

of the tourism industry. In Malaysia and Thailand, strong air transport (number of departures,

airport density, and number of operating airlines, as well as the quality of infrastructure for both

domestic and international flights) was critical to tourism success. The TTCI also asserted that some

countries were more ‘open’ to tourism; this was measured as tourism expenditures and receipts as a

percentage of GDP. According to the report: “Singapore is the most open of ASEAN countries,

with combined tourism expenditures and receipts equivalent to 13.7 percent of its GDP (15th),

followed by Cambodia (11.8 percent, 16th) and Malaysia (11.5 percent, 18th). Tourism openness is

minimal in Indonesia, with receipts and expenditures representing just 2.1 percent of GDP

(115th).”29 The region generally was extremely price competitive as a world tourism destination.

Effective marketing campaigns contribute to tourism success and some ASEAN countries

have been quite successful. Two contemporary examples include “Malaysia, Truly Asia” and

“Amazing Thailand.” The former effectively communicates the idea that Malaysia provides a multi-

faceted glimpse into the Asian experience. Positive imagery emphasizes a “distinctive, colorful, and

exciting” experience in Malaysia (Exhibit 4). “Amazing Thailand” presents the destination as a

completely new, unique experience. Marketing efforts seem to be working and in 2013 Time

reported that Bangkok was the most-visited city in the world30. Table 4 provides additional

information on the success of these campaigns.

Table 4: Competitor Country Marketing Campaigns Campaign What Worked What Challenges Were Overcome

                                                                                                               29  World Economic Forum. ASEAN Travel & Tourism Competitiveness Report 2012. Report. Geneva: WEF, 2012.  30  Quan, Kristene. And the World’s No. 1 Tourist Destination Is …. 1 June 2013. 16 March 2015 <http://newsfeed.time.com/2013/06/01/bangkok-claims-the-worlds-no-1-tourist-destination-title/>.

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“Malaysia, Truly Asia” • Captures distinct elements of the brand, country’s rich heritage and diversity

• Positive, peaceful imagery led to positive associations

• Natural disasters • Economic crisis • Regional Competition

“Amazing Thailand” • Simple, catchy slogan • Diverse product offerings

support message

• Natural disasters • Political complications

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III. MARKETING THE PHILIPPINES

The Department of Tourism is the primary government agency working to attract tourists to

the Philippines. As previously mentioned, the country has numerous offerings for visitors as well as

serious challenges to overcome. The DoT utilizes multi-year marketing campaigns (what they deem

brands) to build awareness for the destination.

Department Of Tourism History

Formalized promotion of the Philippines started with the formation of the private sector

Philippines Tourist & Travel Association in the early 1950’s. In 1956, the Philippine Congress

created the Board of Travel and Tourist Industry. As part of the 1972 Integrated Reorganization

Plan, the Department of Trade and Tourism was created. This initiative recognized that tourism

was an important economic driver of the country. In 1973, President Marcos split trade and

tourism, creating a cabinet level agency for tourism. The Philippine DoT was created with two

arms, the Philippine Tourism Authority and the Philippine Convention Bureau. Today, the DoT

operates with a PhP 2.5 billion budget and has numerous offices throughout the world. Exhibit 5

details the body’s organizational structure. The Secretary oversees five main offices including Sports

and Wellness, Tourism Promotions, Security and Political Affairs, Planning, Product Development

and Coordination, and Office for Special Concerns.

Tourism Issues

The Philippines faces serious challenges in marketing the destination. As previously

highlighted, the ASEAN region is extremely competitive and some countries such as Malaysia,

Singapore, and Thailand have captured significant market share of tourist arrivals by developing

unique destination brand identity. Infrastructure issues remain a major problem. CNN has

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consistently ranked Manila Ninoy Aquino International Airport among the worst in the world; this

hub is the gateway for most international travelers to the country. The traffic in Metro Manila is

choking. And air connectivity between the country’s islands could be improved. Lastly, for

international travelers safety remains a question. On the island of Mindanao, separatist groups such

as the Moro Islamic Liberation Front and the Moro Nationalist Liberation Front has had a storied

history of skirmishes with the Philippine government. And while it is easy for tourists to avoid

certain areas of the country, these issues often cloud the overall impression of the country. Similarly,

travel warnings to the Philippines issued by foreign governments such as the United States and

United Kingdom (Exhibit 6) emphasize that certain places cannot be visited, but for first-time

travelers to the destination these warnings may drive tourists to destinations where safety and

security does not appear to be an issue.

“Wow Philippines” & “Pilipinas Kay Ganda”

In 2001, politician Richard Gordon was appointed to Secretary of Tourism as part of

President Gloria Macapagal-Arroyo. He recognized that this industry was instrumental to the

Philippines’ development31 and he emphasized that: “tourism means jobs; where tourism advances,

poverty retreats.” Intent on highlighting the country’s uniqueness, his travel marketing campaign

“WOW Philippines” (Exhibit 7) recognized the numerous ‘Wonders of the World’ available in the

destination.32 At the time there was an attitude that the Philippines was behind neighbors in terms

of tourism promotion33. In addition to highlighting unique destinations as well as tourism within

                                                                                                               31 Senate of the Philippines. Senator Richard "Dick" Gordon. Manila, 1 November 2014. 32 Reymart Arazon, Timothy Deinla, Ruzzel Evangelista. A Case Study Presented as a Partial Fulfillment of the Requirements in Marketing Management. Case Study. Quezon City: University of the Philippines, 2014. 33 Ibid.  

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golf, meetings, adventure, diving, and culture, “WOW Philippines” also aimed to influence local

politicians to understand the importance of tourism to the country.

In 2010, businessman Alberto Lim assumed the Secretary of Tourism role under President

Benigno Aquino. During his tenure, his office introduced a new marketing campaign “Pilipinas Kay

Ganda” which translates to ‘Philippines, so beautiful.’ The slogan was taken from the song “Kay

Ganda Ng Ating Musika."34 The campaign was criticized early on. Philippine media asserted that

logo bore striking similarities to that of Poland (Exhibit 7). More importantly, the campaign took a

major misstep by using Tagalog rather than English as the slogan was indecipherable for

international audiences. Widely criticized and sparsely loved, “Pilipinas Kay Ganda” was considered

a failure.

“It’s More Fun In The Philippines”

Equipped with a PhP 3.1 billion budget (2012) and the full support of President Aquino,

DoT Secretary Jimenez worked with advertising firm BBDO Guerrero to launch the ‘It’s More Fun

In The Philippines’ campaign. The firm previously crafted ‘WOW Philippines.’ David Guerrero,

the led on the campaign, came up with its idea during a diving vacation at the Calypso Resort in

Boracay, the top beach attraction in the Philippines. In his words, he realized: “[H]ow much more

fun it is to be doing the same thing here than in another country. Am I going to feel the same

enjoyment I am feeling when I’m diving here in the Philippines and when I’m doing the same thing

abroad?”35 He asserted that ‘fun’ is an inherent part of the Filipino culture and mentality; this aspect

was a point of differentiation. In conceptualizing the campaign’s logo, BBDO drew inspiration

from the banig, a Philippine woven product used for sleeping and chairs (Exhibit 8).

                                                                                                               34  Dizon, David. "Pilipinas Kay Ganda: When re-branding goes bad." 24 November 2010. abs-cbnNEWS.com . 11 March 2015 <http://www.abs-cbnnews.com/nation/11/24/10/pilipinas-kay-ganda-when-re-branding-goes-bad>. 35  Reymart  Arazon.  Ibid.  

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In January 2011, the campaign launched and utilized social media to create buzz. The

Department of Tourism released official meme ads (Exhibit 9) and began using the Twitter hashtag

#ItsMoreFuninThePhilippines. The DoT then empowered the country’s bloggers, social media

fans, and Facebook users to produce their own memes36 using an app and the “It’s More Fun in the

Philippines” slogan. Guidelines helped create uniformity and many creations fit within the nature,

beaches, culture, water activities, and fun categories. A few meme examples are provided below and

in Exhibit 10.

The concept caught on digitally and 10,000+ designs were created. The country has strong social

media penetration with an estimated 27 million Facebook users and 10 million Twitter users. Many

creative memes went viral and provided external audiences with a glimpse into Filipino culture. This

grassroots tactic was completely new for the DOT and many people found it to be an effective was

to both engage the public and provide them ownership in marketing the destination. The campaign

was a ‘rallying cry’ of sorts for the country to help shape brand awareness about the destination.

The DOT also utilized traditional media and trade shows to push “It’s More Fun in the

Philippines.” In April 2011, 30-second commercials appeared on CNN as well as special segments

titled “Eye on the Philippines.” On cnn.com, journalist Richard Ehrlich pressed the DOT regarding

                                                                                                               36  Meme: a often humorous image, video, piece of text, etc. that is copied (often with slight variations) and spread rapidly by Internet users

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the motivations behind the campaign. The following excerpts from the special report37 highlight

some interesting findings:

Yet for all its advantages, the nation of more than 7,000 islands has a big problem attracting

travelers. According to the United Nations World Tourism Association, with about 3.5

million international tourist arrivals in 2010 (its most recent published figures), the

Philippines nets just 1.7 percent of tourist arrivals in the booming Asia Pacific region, and a

mere 1.1 percent of international tourism revenues in the region.

Aside from airport concerns, however, Jimenez mostly sees a more benign problem at the

root of Philippine tourism's sluggish performance, one demanding a seemingly simple

solution. In February, Jimenez told reporters, “The biggest reason for our low numbers [of

tourist arrivals] is not our infrastructure, crime, negative reports in the media or even the

cost of flying into the Philippines.” The problem, he said, “is ignorance.” “They just haven’t

heard of the Philippines.”

A new direction, a new way of promoting the Philippines may be required, but it can be

difficult even getting officials to address perceived obstacles. When asked whether that goal

of raising foreign visitor totals to 10 million by 2016 is realistic, one overseas-based

Philippine tourism official, who asked not to be named, offered a meek: “We are doing our

best.”

The Philippine Department of Tourism promotes the country’s attractions, and there are

many to brag about. But bathing serious deficiencies with opulent adjectives and optimistic

slogans, or worse, ignoring them altogether, isn’t the same as washing away the woes.

In addition to the acclaim for the campaign and other more critical perspectives, the DoT was able

to build positive associations with the Philippines throughout social media, traditional media, and

trade shows including ITB Berlin 2012 and Arabian Travel Mart.

In terms of results, international tourist arrivals are among the most important metrics.

                                                                                                               37 Ehrlich. Ibid.

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Table 5 details the country’s positive results and upward trajectory.

Table 5: International Tourist Arrivals to the Philippines

2010 2011 2012 2013 2014

3,520,471 3,917,454 4,272,811 4,681,307 4,833,360

Source: Tourism Statistics. 15 January 2015. <http://www.tourism.gov.ph/Pages/IndustryPerformance.aspx>. Secretary Jimenez and the DoT have reason to celebrate these significant gains. Similarly,

international media have a piqued interest in the destination:

Conde Nast Traveller (2013): “For travellers willing to go the extra thousand miles for a

deserted beach, the Philippines has around 7,000 of the most heavenly islands in the world.

It's still not the most obvious beach-holiday destination, but it soon will be.”38

New York Times, “46 Places To Go in 2013: “ #17 Philippines: Idyllic white sand beaches,

secluded, little-known surf towns, and pristine reefs are among the natural draws of this

country made up of over 7,000 tropical islands. Now in addition to the more upscale choices

cropping up in former backpacking enclaves like Boracay, there is a new generation of luxury

hotels opening even further afield.”39

Despite these significant gains and positive impressions, a few questions remain. How can the DOT

learn from and evolve the “It’s More Fun in the Philippines” campaign? Is awareness really the

main impediment to the country’s tourism success? What about infrastructure, air connectivity, and

safety? How can the Philippines attract 10 million international visitors by 2016? And lastly, how

can the DoT respond to and overcome the challenges that come with natural disasters such as

typhoons that hit the country every year?

                                                                                                               38 Conde Nast Traveller. "Destinations to Watch in 2013." 1 January 2013. cntraveller.com. 15 March 2015 <http://www.cntraveller.com/recommended/itineraries/hot-destinations-to-watch-2013/page/destinations-to-watch-in-2013-philippines>. 39 New York Times. "New York Times Travel." 11 January 2013. NY Times. 13 March 2015 <http://www.nytimes.com/interactive/2013/01/10/travel/2013-places-to-go.html>.

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EXHIBIT 1: MAP OF THE PHILIPPINES

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EXHIBIT 2: PHILIPPINES, GROWTH IN VISITOR ARRIVALS 1960-2011

Source: (Philippines Statistics Authority)

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EXHIBIT 3: PHILIPPINES TOURISM PRODUCT PHOTOS Rice Terraces in Banaue Chocolate Hills of Bohol

White Beach in Boracay Beaches of Camiguin Island

Swimming with Whale Sharks in Cebu Intramuros Heritage Area in Manila

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Surfing in Palawan Puerto Princesa’s Underground River

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EXHIBIT 3: ASEAN VISITOR ARRIVAL FIGURES 1979-2010 Countries Malaysia Thailand Singapore Indonesia Vietnam Philippines TOTAL

1979 1,416 1,591 2,247 501 .. 967 6,722

1980 3,342 1,859 2,562 561 .. 1,008 9,332

1981 4,047 2,016 2,829 600 .. 939 10,431

1982 4,536 2,218 2,957 592 .. 891 11,194

1983 4,934 2,191 2,854 639 .. 861 11,479

1984 5,120 2,347 2,991 701 .. 817 11,976

1985 2,854 2,438 3,031 749 .. 773 9,845

1986 3,217 2,818 3,191 825 .. 782 10,833

1987 3,359 3,483 3,679 1,060 .. 795 12,376

1988 3,624 4,231 4,186 1,301 .. 1,043 14,385

1989 4,846 4,810 4,830 1,626 .. 1,190 17,302

1990 7,446 5,299 5,323 2,178 .. 1,025 21,271

1991 5,847 5,087 5,415 2,570 .. 951 19,870

1992 6,016 5,136 5,990 3,064 .. 1,153 21,359

1993 6,504 5,761 6,426 3,403 670 1,372 24,136

1994 7,197 6,166 6,899 4,006 1,018 1,574 26,860

1995 7,469 6,952 7,137 4,324 1,351 1,760 28,993

1996 7,138 7,192 7,293 5,034 975 2,049 29,681

1997 6,211 7,221 7,198 5,185 1,114 2,223 29,152

1998 5,551 7,765 6,242 4,606 978 2,149 27,291

1999 7,931 8,580 6,958 4,728 1,211 1,971 31,379

2000 10,222 9,509 7,691 5,064 1,383 1,992 35,861

2001 12,775 10,062 7,522 5,154 1,599 1,797 38,909

2002 13,292 10,799 7,567 5,033 2,628 1,933 41,252

2003 10,577 10,082 6,127 4,371 2,429 1,907 35,493

2004 15,703 11,737 8,375 5,321 2,928 2,291 46,355

2005 16,431 11,517 8,942 5,002 3,468 2,623 47,983

2006 18,472 13,822 9,752 4,871 3,583 2,843 53,343

2007 20,236 14,464 10,288 5,506 4,150 3,092 57,736

2008 22,052 14,584 7,778 6,234 4,236 3,139 58,023

2009 23,646 14,150 7,488 6,324 3,747 3,017 58,372

2010 24,577 15,842 9,161 7,003 5,050 3,520 65,153

Source: Data for 1979-2002, UN Statistical Yearbook for Asia and the Pacific 1990, 1996 and 2003; Data for 2003-2007, ASEAN Statistical Yearbook 2000-2008; Data for 2008-2010, World Tourism organization

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EXHIBIT 4: “MALAYSIA, TRULY ASIA”

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EXHIBIT 5: DEPARTMENT OF TOURISM ORGANIZATIONAL CHART

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EXHIBIT 6: TRAVEL WARNINGS

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EXHIBIT 7: ‘WOW PHILIPPINES’ & ‘PILIPINAS KAY GANDA!’

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EXIHIBIT 8: It’s More Fun in the Philippines

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EXHIBIT 9: OFFICIAL MEMES

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Works Cited

1. The World Bank. World Bank Data. 01 January 2015. 15 March 2015 <http://data.worldbank.org/country/philippines#cp_wdi>.

2. Causuay, Angela. "PH perceived to be less corrupt – 2014 global survey." Rappler. Manila, 15 January 2015.

3. CIA. The World Factbook, Philippines. 01 January 2015. 18 March 2015 <https://www.cia.gov/library/publications/the-world-factbook/geos/print/country/countrypdf_rp.pdf>.

4. Conde Nast Traveller. "Destinations to Watch in 2013." 1 January 2013. cntraveller.com. 15 March 2015 <http://www.cntraveller.com/recommended/itineraries/hot-destinations-to-watch-2013/page/destinations-to-watch-in-2013-philippines>.

5. Congressional Policy and Budget Research Department. Facts in Figures, The Philippines Tourism Industry. Report. Manila: House of Representatives, 2014.

6. Dizon, David. "Pilipinas Kay Ganda: When re-branding goes bad." 24 November 2010. abs-cbnNEWS.com . 11 March 2015 <http://www.abs-cbnnews.com/nation/11/24/10/pilipinas-kay-ganda-when-re-branding-goes-bad>.

7. The Economist. "Coming up jasmine." The Economist. Manila, 13 August 2014. 8. Ehrlich, Richard. "Special report: Philippines tourism, a tough sell?" CNN. Manila, 11

February 2012. 9. Larano, Cris. "As Economy Soars, Philippines No Longer 'Sick Man of Asia'." Wall Street

Journal. Manila, 28 August 2014. 10. Lonely Planet. Introducing Bohol. 1 January 2015. 15 March 2015

<http://www.lonelyplanet.com/philippines/the-visayas/bohol>. 11. Introducing Cebu. 1 January 2015. 15 March 2015

<http://www.lonelyplanet.com/philippines/the-visayas/cebu >. 12. Introducing Philippines. 1 January 2015. 16 March 2015

<http://www.lonelyplanet.com/philippines>. 13. National Economic and Development Authority. Philippine Development Plan 2011-2016.

01 January 2011. 15 March 2015 <http://www.neda.gov.ph/?p=1128>. 14. New York Times. "New York Times Travel." 11 January 2013. NY Times. 13 March 2015

<http://www.nytimes.com/interactive/2013/01/10/travel/2013-places-to-go.html>. 15. Noble, Josh. "Philippine economy defies Asian slowdown." Financial Times. Manila, 19

January 2015. 16. Office of Presidential Communication Operations. Acquino cites tourism as country's

engine of growth. Manila, 7 July 2012. 17. Philippine Department of Tourism. Top Destinations: Puerto Princesa. 1 November 2014.

17 March 2015 <http://itsmorefuninthephilippines.com/puerto-princesa/>. 18. Tourism Statistics. 15 January 2015. 15 March 2015

<http://www.tourism.gov.ph/Pages/IndustryPerformance.aspx>. 19. Philippine Statistics Authority. Contribution of Tourism Industry to the Economy. Manila,

26 November 2012. 20. Ifagao Provice. 19 April 2012. 22 March 2015

<http://www.nscb.gov.ph/rucar/fnf_ifugao.htm>. 21. Philippine Tourism: When will we know that, indeed, It Is More Fun In The Philippines?

Manila, 6 June 2012.

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22. Tourism Statistics. 15 November 2014. 16 March 2015 <http://www.nscb.gov.ph/secstat/d_tour.asp >.

23. Philippines Statistics Authority. "Sexy Statistics." 6 June 2012. Philippine Tourism: When will we know that, indeed, It Is More Fun In The Philippines? 19 March 2015 <http://www.nscb.gov.ph/sexystats/2012/SS20120606_tourism.asp >.

24. President, Office of the. "Presidential Biography." 01 January 2015. Office of the President of the Philippines. 18 March 2015 <http://president.gov.ph/biography/>.

25. Quan, Kristene. And the World’s No. 1 Tourist Destination Is …. 1 June 2013. 16 March 2015 <http://newsfeed.time.com/2013/06/01/bangkok-claims-the-worlds-no-1-tourist-destination-title/>.

26. Reymart Arazon, Timothy Deinla, Ruzzel Evangelista. A Case Study Presented as a Partial Fulfillment of the Requirements in Marketing Management. Case Study. Quezon City: University of the Philippines, 2014.

27. Rivera, Danessa. "PHL is most improved country in global competitiveness – WEF report More from: http://www.gmanetwork.com/news/story/377550/economy/business/phl-is-most-improved-country-in-global-competitiveness-wef-report ." GMA News Network. Manila, 3 September 2014.

28. Senate of the Philippines. Senator Richard "Dick" Gordon. Manila, 1 November 2014. 29. World Economic Forum. ASEAN Travel & Tourism Competitiveness Report 2012. Report.

Geneva: WEF, 2012. 30. The Global Competitiveness Report 2014-2015. Report. World Economic Forum. Geneva:

WEF, 2014.