THE PHILIPPINE NATIONAL TOURISM DEVELOPMENT PLAN 2011-2016

Draft Action Plan(for discussion purposes only)

DEPARTMENT OF TOURISM

June 2011

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The Philippine Tourism –Diagnosis

2

Underdeveloped tourism sector relative to its market and product development potential

Underdeveloped tourism sector relative to its market and product development potential

Inadequate international airport

infrastructure

Perception of the Philippines as an unsafe

destination

Inability to develop and expand air accessibility to key growth markets

Inadequate air, sea, and road

connectivity to destinations

Limited number of competitive destinations

Inadequate destination/site

infrastructure

Overlapping institutional regulatory functions between the national government and LGUs

Weak LGU tourism development capacities

Cumbersome business operating environment

Discriminatory tax regime for hotels and

carriers

Suboptimal socioeconomic development contribution

Inconsistent quality of tourist facilities and services

Insufficient tourist facilities and services

Inadequate public and private sector investment

Low tourism growth volumes

Low budgets for marketing and promotions

EFFECT

CAUSE

FOCAL PROBLEM

Highly concentrated pattern of tourism with limited local community participation

• Poor compliance with safety standards• Destination/site security

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NP-1

NP-3

NP-5

CP-1

CP-3

CP-2

CP-7

SP-1

SP-2

SP-6

NP-4

A

BA

B

A

B

C

A

B

A

B

B

CA

D

D

A

A

C

E

B

F

D

AA

B

C

A

B

C

BC

B

A

A

B

A

B

C

A

A

C

D E

A

B

B

C A

A

A

A

BC

B

D

B

A

E

B

A

DBC

B

B

A

AB

SP-7

A

International Airport

Principal Airport - Class 1

Principal Airport – Class 2

Community Airport -

Sea Port

Tourism Cluster

Tourism Development Area

NP-2

NP-6

NP-7

CP-5

SP-4

CP-4CP-6

SP-5

SP-3

International GatewayStrategic Destination Clusters

A

Tourism Site

Tourism Cluster

Gateway to Tourism Cluster

Tourism DevelopmentArea

INCLUSIVE DESTINATION CONCEPT

21 strategic thematic tourism destination clusters covering 77 Tourism Devt Areas)7 strategic clusters in Northern Philippines (North Luzon, CAR, CALABARZON, NCR) covering 27 tourism development areas7 strategic clusters in Central Philippines (MIMAROPA, Bicol, The Visayas) covering 24 tourism development areas7 strategic clusters in the Southern Philippines (Mindanao) covering 26 tourism development areas.

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GOAL:“An environmentally

and socially responsible tourism that delivers more widely distributed

income and employment

opportunities as indicated by

6.6 M international arrivals and

34.8 M domestic travelers generating PhP1,759 billion in total expenditure,

contributing 6.78% to GDP and employing

6.5 million people by 2016.”

GOAL:“An environmentally

and socially responsible tourism that delivers more widely distributed

income and employment

opportunities as indicated by

6.6 M international arrivals and

34.8 M domestic travelers generating PhP1,759 billion in total expenditure,

contributing 6.78% to GDP and employing

6.5 million people by 2016.”

Improving market access and connectivity

Developing and marketingcompetitive tourist destinations and products

Improving tourism institutional, governanceand human resource capacities

• Rapidly expand capacity of secondary international airports

• Expand connectivity between Philippines and its key growth markets

• Implement a strategic access infrastructure program between secondary international airports and strategic destinations

• Implement a sustainable tourism destination infrastructure program

• Develop diversified tourism products that engage local communities

• Implement a PPP-based mandatory tourism enterprise accreditation system and facilitate tourism investment and lower cost of business

• Safeguarding natural & cultural heritage and vulnerable groups

• PPP-based marketing strategy and action plan

• Institutionalize roles and responsibilities of DOT and LGUs

• Develop a competent well motivated and productive tourism workforce

• Improve governance in the area of safety, security, and in dealing with tourists

Strategic Vision:

“TO BECOME THE “MUST EXPERIENCE” DESTINATION IN ASIA.”

Strategic Vision:

“TO BECOME THE “MUST EXPERIENCE” DESTINATION IN ASIA.”

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Rapidly expand capacity of secondary international airports

Reduce congestion to improve visitor’s impression

Increase passenger handling capacities

Prioritize:NAIA, Mactan-Cebu, Clark

and Davao (2011-2012)Puerto Prinsesa, Iloilo

(2012-2013) Laoag and Zamboanga

(2013-2014) 5

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Expand connectivity between Philippines and its key growth markets

Renegotiate Air Service Agreements with Key Growth Market Countries

Reduce Air International Air Operations Cost in the Philippines

Simplify border formalities/procedures for key growth markets

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Implement a strategic access infrastructure program between secondary international airports and strategic destinations

Improve, rehabilitate, and expand 23 domestic airports

Improve, rehabilitate, and expand 21 seaports

Improve, rehabilitate, and upgrade 28 strategic connecting roads with total distance of approximately 850kms

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A

BA

B

A

B

C

A

B

A

B

B

CA

D

D

A

A

C

E

B

F

D

AA

B

C

A

B

C

BC

B

A

A

B

A

B

C

A

A

C

D E

A

B

B

C A

A

A

A

BC

B

D

B

A

E

B

A

DBC

B

B

A

AB

A

International Airport

Principal Airport - Class 1

Principal Airport – Class 2

Community Airport -

Sea Port

Tourism Cluster

Tourism Development Area

Strategic Links

International GatewayStrategic Destination Clusters

A

NP-1

NP-3

NP-5

CP-1

CP-3

CP-2

CP-7

SP-1

SP-2

SP-6

NP-4

SP-7

NP-2

NP-6

NP-7

CP-5

SP-4

CP-4CP-6

SP-5

SP-3

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Implement a sustainable tourism destination infrastructure program

Destination InfrastructureProvision of water and water treatment (6 locations), power (4

locations), and solid waste management in (27 locations)Design and construction of tourism information centers and

support infrastructure (26 tourism development areas)Design and construction of transport terminals and services in

(26 tourism development areas)Tourism sites access and visitor improvements

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Develop diversified tourism products that engage local communities

Developing Major Mixed-use Tourism complexes in the vicinity of the International Airports

Linking local communities to the tourism value chain created by the major mix use tourism complexes upgraded tourist sites in their vicinity

Review regulations that impede new product development. (e.g. retiree, medical tourism) and amend accordingly

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Advising tourist on product, contract

Transport to the destination

Providing accommodation food, etc.

Organise event, experience

Transport from the destination

Travel Agent Transport Company

Hotel, Restaurant Site Operator, Cultural Group

Transport Company

CO-ORDINATION OF SERVICES

Tour Operator

Tourism Authority

Simple Tourism Value Chain

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Tourism Value Chain at work

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Implement a PPP-based mandatory tourism enterprise accreditation system and facilitate tourism investment and lower cost of business

Design and implementation of a PPP-based mandatory tourism enterprise accreditation system

Facilitating business investment and simplifying business set-up and licensing procedures and cost

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Proposed Framework of the DOT Accreditation ProcessPrimary Tourism Enterprises 2012 – 2016

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Safeguarding natural & cultural heritage and vulnerable groups

Developing uniquely Filipino destinations and products Increasing number of heritage sites for international

recognition Advocating the sustainable use of heritage sites Providing a professional interface between sustainable

heritage and tourism

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Marketing strategy and action plan

Consolidate present product offering and develop highly-focused new products

Design TPB as a product marketing oriented organization Define new target markets and undertake market

penetration. Set up a unique market positioning that boosts and

differentiates the Philippines as a tourism destination. Establishing customized promotional initiatives to source

markets

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Market Positioning Approach

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Product-Market Mix Approach

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Very High High Medium

Low Very Low

Nature-based tourism

Sun & Beach Cultural tourismShopping, Leisure &

Entertainment

Health and Wellness tourism

MICEEducational

Tourism

Key growth markets

Domestic Market

Japan

South Korea

USA

China

Strategic markets

Australia

Singapore

Malaysia

Canada

Opportunity markets

India

Hong Kong

Taiwan

Russia

Niche markets

UK

Germany

Source: T&L research,

100% - Full potential

75% - potential 50% - potential 25% - potential 0% - potential

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Special Interest Segments

Source: T&L research,

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National Tourism Marketing Program Strategic Marketing

BrandingProduct Development ClubsMarketing Intelligence

International Marketing NetworkAdapting DOT marketing & representation offices to market

prioritiesCreate DOT regional market offices and use local market

representatives at country level

Operational MarketingCommercializationPromotionCommunicationPublic relations

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Marketing Action Plan Budget 2012-2016 (USD) 2012 2013 2014 2015 2016 TOTAL

1. Strategic Marketing Program

795,000

50,000

390,000

300,000

390,000

1,925,000

Sub-porgram 1: Philippine's Tourism Positioning Management

355,000

50,000

50,000

50,000

50,000

555,000

Sub-porgram 2: Tourism Product Clubs Development Franework

190,000

-

190,000

100,000

190,000

670,000

Sub-program 3: Marketing Intelligence Management

250,000

-

150,000

150,000

150,000

700,000 2. Tourism Marketing Network Program

750,000

3,041,068

3,087,759

3,140,841

3,201,190

13,220,859

Sub-program 1: International Network Offices

450,000

2,700,000

2,700,000

2,700,000

2,700,000

11,250,000

Sub-program 2: Fostering National Tourism

300,000

341,068

387,759

440,841

501,190

1,970,859 3. Operational Marketing Program

9,477,000

13,050,547

15,195,698

17,305,945

20,837,995

75,867,184

Sub-program1: Commercialization

960,000

1,877,613

2,127,219

2,665,461

3,669,206

11,299,499

Sub-Program 2: Promotion

4,265,000

6,138,857

7,322,641

8,092,293

9,715,254

35,534,044

Sub-program 3: Communication

2,334,000

2,853,513

3,266,765

3,729,745

4,249,260

16,433,282

Sub-program 4: Public Relations

1,148,000

1,305,155

1,483,825

1,686,953

1,917,888

7,541,820

Sub-program 5: Market Intelligence

770,000

875,409

995,248

1,131,493

1,286,388

5,058,538 TOTAL BUDGET MARKETING MACRO PROGRAM

11,022,000

16,141,615

18,673,457

20,746,786

24,429,185

91,013,043

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2011 2012 2013 2014 2015 2016 CAGR

Korea 792.466 855.863 941.449 1.082.666 1.245.066 1.469.178 11%

USA 636.175 687.069 755.776 846.469 931.116 1.024.227 8%

Japan 286.995 286.995 295.605 304.473 319.697 335.682 3%

China 215.563 254.364 305.237 381.546 496.010 669.614 21%

Australia 165.165 184.985 203.484 234.006 269.107 312.164 11%

Taiwan 149.008 156.458 164.751 175.459 188.180 203.235 5%

Hong Kong 143.108 153.555 165.225 178.856 195.848 216.412 7%

Singapore 135.613 151.887 179.226 211.487 253.784 317.230 15%

Canada 111.131 116.243 121.706 129.617 139.338 151.182 5%

United Kingdom 101.771 106.860 112.203 117.813 125.471 136.763 5%

Malaysia 89.257 99.968 114.963 132.208 153.361 180.966 13%

Germany 60.487 62.301 64.793 68.033 72.115 77.884 4%

India 38.039 42.604 48.994 57.813 68.220 78.453 13%

Russia 15.521 16.607 17.936 20.088 23.101 26.335 9%

Scandinavia 51.237 55.080 59.486 64.536 70.990 78.089 7%

Others 727.937 815.290 913.125 1.031.831 1.176.287 1.340.967 11%

TOTAL 3.719.473 4.046.128 4.463.959 5.036.903 5.727.691 6.618.381 11%

Forecast arrivals per country of origin 2011 - 2016

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Institutionalize roles and responsibilities of DOT and LGUs

Clarify the institutional role and responsibility of DOT and LGU’s in key areas

Strengthening tourism governance and policy formulation in the DOT

Strengthening DOT support for Local Government Units (LGU’s) by establishing DOT provincial units

LGU Awareness and capacity building

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Tourism Governance and Management Model for the Philippines

Proposed Philippine Tourism Governnance & Management Framework

National Level

Regional Level

Local Level

Tourism Advisory and Consultative Bodies

(Tourism Coordination Council-Tourism Congress-Regional

Tourism Congresses)

Tourism Advisory and Consultative Bodies

(Tourism Coordination Council-Tourism Congress-Regional

Tourism Congresses)

Regional Tourism Councils/ Congresses

(DOT-Tourism Congress-Civil Society)

Regional Tourism Councils/ Congresses

(DOT-Tourism Congress-Civil Society)

Provincial Tourism Councils (DOT-Tourism Congress-Civil

Society)

Provincial Tourism Councils (DOT-Tourism Congress-Civil

Society)

Local Tourism Councils and Action Groups

Local Tourism Councils and Action Groups

Department of TourismDepartment of Tourism

Tourism Promotion

Board

Tourism Promotion

BoardTIEZATIEZA

Regional Tourism OfficesRegional Tourism Offices

Regional & Provincial Level Tourism Units

Regional & Provincial Level Tourism Units

City and Municipality Tourism Units

City and Municipality Tourism Units

Strategic level Tactical Level

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Develop a competent well motivated and productive tourism workforce

Skills capability building Improving labor relations Professional Tourism Training and Education HR Recognition, Networking, and Development

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Proposed Tourism and Hospitality Management Education System (2012 – 2016)

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Human Capital DevelopmentPhilippine Tourism Industry2011 - 2016

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Improve governance in the area of safety, security, and in dealing with tourists

“Mabuhay! Tuloy Po Kayo” Program for CIQS at International Ports

Expanded DOT TOP-COP Program Tourism Front-Liners Awareness and Values Training

Program Establish Tourism Crisis Management Unit Pilot PPP based local tourism civil order programs in

each region targeting reducedCriminality and lawlessnessTraffic congestion Littering and waste

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Provisional Cost Estimates of NTDP in (PhP ‘000s) 2011 2012 2013 2014 2015 2016 Total

Improving market access and connectivity

5,000 3,787,320 3,798,600 1,760,950 1,416,185 339,685 11,107,740

Developing and marketing competitive tourist destinations and products

0 3,957,811 6,747,997 7,279,105 4,607,570 1,448,838 24,041,322

Improving tourism institutional, governance and human resource capacities

0 171,194 170,399 69,961 64,340 64,340 540,233

Grand Total 5,000 7,916,325 10,716,995 9,110,016 6,088,095 1,852,863 35,689,295

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NTDP Implementation Approach

Full time coordination and supervision of the implementation of the strategic programs will be required at the national, regional, and local level

Overall implementation to be coordinated through:National Tourism Coordinating Council DOT NTDP Program Implementation Coordination &

Monitoring and Evaluation Unit

Infrastructure programs and projects to be implemented by related agency project management and implementation units

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Project Implementation Organization Arrangement

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Infrastructure - Implementation, Financing and Operations and Maintenance Arrangements

Type of Infrastructure

Lead Agency

Mode of Financing Capex and O&M

Possible Financing Partners

Project Implmentation

1. Secondary International Airport Infrastructure Upgrading Program

DOTC Annual BudgetsProject LoansUser fees and charges

Public sector lendersPrivate Sector as providers and O&M

DOTC Project Management and Implementation Units

2. Air, sea and land connectivity to strategic cluster destination entry points improvement program

DOTC/ DPWH

Annual BudgetsProgram/Project LoansUser fees and charges

As above DOTC/DPWH Project Management and Implementation Units

3. Tourist development area utility destination infrastucture program

DPWH/ LGUs

Annual BudgetsProgram/Project LoansUser fees and charges

As above DPWH/LGU Internal Project Management and Implementation Units

4. Tourist center support and site visitor infrastructure program

DOT/DENR/NCCA/ LGUs

Program LoansLGU CounterpartUser fees and charges

As above Specially created Project management and Implemetation Units

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