September 2015

Tourism in the Philippines

2

Tourism in the Philippines

Department of Tourism

September 2015

3

Outline

I. Vision, mandate, and strategies

II. Economic impact of tourism

i. Tourists in the Philippines

ii. Tourism receipts

iii. Employment

iv. Contribution to GDP

III. Accomplishments in 2014

IV. Risks and challenges

V. Major programs for 2016

4

Vision, mandate, and strategies

Pursuant to Tourism Act of 2009 (RA 9593) and the National Tourism Development Plan 2011-2016

Strategies

Develop and market

competitive destinations

and products

Improve connectivity,

access, and infrastructure

Enhance human resources

capability

Mandate

Plan, develop, regulate,

and promote the

tourism industry as a

major socio-economic

activity and spread the

benefits of tourism to a

wider segment of the

population

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Tourists in the Philippines

International Tourist Arrivals (in millions)

1.80 1.93 1.91 2.29 2.62 2.84 3.09 3.14 3.02 3.52 3.92 4.27 4.68

4.83

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Domestic Travelers (in millions)

29.1 37.5 41.3 45.6

54.6

51.7 56.1

2010 2011 2012 2013 2014 2015 2016

Target

54.6mnDomestic travelers in 2014

4.83mnInbound arrivals in 2014

6

43

73

91

91

93

104

107

137

257

279

481

762

Germany

Hong Kong

Malaysia

UK

Canada

Taiwan

Singapore

Australia

China

Japan

USA

Korea

International tourist arrivals (January to July 2015)

Monthly Inbound Arrivals for 2015 (in thousands)

479457 456

423 414390

490

Jan Feb Mar Apr May Jun Jul

3.11mn arrivals,

up by 8.7% from the same

period in 2014

Top Inbound Markets (in thousands)

For the period of Jan – Jul 2015

7

162.0 149.6 125.6 123.7 135.5 158.5 195.2 225.3

274.6

350.4 455.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tourism receipts

* Miscellaneous services include the exports of processing services, financial intermediation services indirectly measured (FISIM), and maintenance

and repairs (that are not included elsewhere).

International Tourism Receipts (PHP billion)

TargetPHP274.6bnExpenditures of international visitors to the Philippines

21.9%Increase from 2013

7.6%Out of Total Exports of Goods and Services

Domestic Tourism Receipts (PHP billion)

441.1 550.7 490.3 531.4 713.8 922.8 1,040.4 1,184.7

1,469.0

1,607.1 1,852.1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PHP1.469tnExpenditures of domestic visitors

24.0%

16.0%Out of Total Household Final Consumption Expenditure

Increase from 2013

Top Export Items for the Philippines in 2014

(PHP billion)

83

85

148

164

275

695

911

Articles of apparel

Ignition wiring sets

Principal agricultural products

Electronic data processing

INBOUND TOURISM

Semiconductors

Miscellaneous services*

Inbound tourism ranked

3rd among the biggest exports in 2014

Most Tourism Expenditures Come from Accommodation

Services and Shopping of Tourism Goods in 2014

Target

Accommodation32%

Shopping of tourism goods15%

Miscellaneous15%

Entertainment & recreation11%

Travel agencies9%

Transport13%

Food & beverage5%

Source: Philippine Statistics Authority

8

Employment

Share of Tourism Industries Employment to

Total Employment (%)

10.5 10.6 10.7 11.2 11.4 11.5 12.1 12.4

12.5

2006 2007 2008 2009 2010 2011 2012 2013 2014

12.5%Percentage share of employment in tourism industries to total employment

About 125 of every 1,000employment

is in the tourism industry

Distribution of Employment in Tourism

Industries for 2014 (%)

Direct Employment in Tourism (million)

2010 2011 2012 2013 2014 2015 2016

4.8mnNumber of people directly employed in the tourism industry

4.1 4.3 4.6 4.7 4.8 6.3 7.4

Target

Passenger transport35.6%

Accomodation and food & beverage34.8%

Miscellaneous15.0%

Retail trade on tourism6.6%

Entertainment and recreation7.4%

Travel agencies0.6%

Source: Philippine Statistics Authority

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Contribution to GDP

6.5 6.5 5.8 5.9 6.4 7.0 7.2 7.5

7.8

7.8 8.7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tourism Share to GDP (%)

7.8%Percent share of the tourism industry to the Philippine economy

Target

Tourism Direct Gross Value Added (PHP billion)

404.8 451.3 444.7 477.3 573.0 678.4 764.9 861.7

982.4

974.0 1,147.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

TargetPHP982.4billionValue of the size of tourism in the Philippines by 2014

14% Increase from 2013

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Accomplishments in 2014

International

Competitiveness

� Implemented new National

Standards for Accommodation

� Organized forum on the

ASEAN Economic Community

(AEC) and the Mutual

Recognition Arrangement

(MRA) on Tourism

Professionals

� Participated in United Nations-

World Tourism Organization

(UNWTO), Organisation of

Economic Co-operation and

Development (OECD), World

Travel and Tourism Council

(WTTC), Asia Pacific Economic

Cooperation (APEC), and

Association of Southeast

Asian Nations (ASEAN)

projects and policy

discussions

Market Development

� Implemented a

comprehensive market

development program

focus on travel trade

support and consumer

activation

� Initiated strategic

programs for niche

markets, e.g. (English as a

second language, dive,

medical and route

development)

� Forged agreements to host

major international events,

such as Madrid Fusion

Manila, Dive Resort

Fair, Routes Asia

Accessibility and

Connectivity

� Pursued air services

negotiations resulting in

opening of 75

international flights with

579,192 air seats

� Implemented aggressive

campaign on cruise

tourism generating 30%

increase in port of calls

by international cruise

lines

� Worked with DPWH,

DOTC, and other

agencies for

convergence programs

Governance and

Human Resources

Development

� Conducted trainings

on planning, product

development, and

statistics

� Organized skills

enhancement for

industry workers

� Spearheaded the

development of tourism

products

� Updated the National

Ecotourism Strategy

and Action Plan

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Risks and challenges

Sustain tourism growth and momentum beyond 2016

Continue convergence program with DPWH to further enhance access to local destinations

Timely Public-Private Partnership Projects for airports and seaports to support growth in air services and provide greater connectivity to key source markets

12

Major programs for 2016

� Star Rating System/ Mandatory Accreditation

� National Tourism Development Plan 2016-2022

� Medium Term Tourism Infrastructure Program

� Medium Term Investment Program

� Market Development

� Niche and Opportunity Markets/ Segments

� International Cooperation

� UNWTO, APEC, OECD, ASEAN, BIMP-EAGA

� Branding Program

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Major programs for 2016

�Retail-based campaignSpecial packages for repeat visitors

�Line-up of events include:

September 2015

Tourism in the Philippines