Tourism in the Philippines September 2015

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1 Tourism in the Philippines September 2015

2 Tourism in the Philippines Department of Tourism September

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

4 Vision, mandate, and strategies Pursuant to Tourism Act of 2009 (RA 9593) and the National Tourism Development Plan 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 Strategies Develop and market competitive destinations and products Improve connectivity, access, and infrastructure Enhance human resources capability 4

5 Tourists in the Philippines International Tourist Arrivals (in millions) Domestic Travelers (in millions) 4.83mn Inbound arrivals in mn Domestic travelers in Target

6 International tourist arrivals (January to July 2015) Monthly Inbound Arrivals for 2015 (in thousands) Top Inbound Markets (in thousands) For the period of Jan Jul Korea USA Japan China 257 Jan Feb Mar Apr May Jun Jul 3.11mn arrivals, up by 8.7% from the same period in 2014 Australia Singapore Taiwan Canada UK Malaysia Hong Kong Germany

7 Tourism receipts International Tourism Receipts (PHP billion) PHP274.6bn Expenditures of international Target visitors to the Philippines 21.9% Increase from % Out of Total Exports of Goods and Services Top Export Items for the Philippines in 2014 (PHP billion) Miscellaneous services* Semiconductors INBOUND TOURISM Electronic data processing Principal agricultural products Ignition wiring sets Articles of apparel Inbound tourism ranked 3 rd among the biggest exports in 2014 Domestic Tourism Receipts (PHP billion) PHP1.469tn Expenditures of domestic visitors 24.0% Increase from % Out of Total Household Final Consumption Expenditure 1,469.0 Target Most Tourism Expenditures Come from Accommodation Services and Shopping of Tourism Goods in 2014 Transport 13% Travel agencies 9% Food & beverage 5% Accommodation 32% , , , , Source: Philippine Statistics Authority Entertainment & recreation 11% Miscellaneous 15% Shopping of tourism goods 15% * Miscellaneous services include the exports of processing services, financial intermediation services indirectly measured (FISIM), and maintenance and repairs (that are not included elsewhere). 7

8 Employment 4.8mn Number of people directly employed in the tourism industry Direct Employment in Tourism (million) Target Share of Tourism Industries Employment to Total Employment (%) About 125 of every 1,000 employment is in the tourism industry 12.5% Percentage share of employment in tourism industries to total employment 12.5 Distribution of Employment in Tourism Industries for 2014 (%) Entertainment and recreation 7.4% Retail trade on tourism 6.6% Miscellaneous 15.0% Travel agencies 0.6% Passenger transport 35.6% Accomodation and food & beverage 34.8% Source: Philippine Statistics Authority 8

9 Contribution to GDP Tourism Share to GDP (%) 7.8% Percent share of the tourism industry to the Philippine economy 7.8 Target Tourism Direct Gross Value Added (PHP billion) PHP982.4billion Value of the size of tourism in the Philippines by % Increase from Target ,

10 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 10

11 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 11

12 Major programs for 2016 Star Rating System/ Mandatory Accreditation National Tourism Development Plan 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 12

13 Major programs for 2016 Retail-based campaign Special packages for repeat visitors Line-up of events include: 13

14 Tourism in the Philippines September 2015

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