OVERVIEW OF PHILIPPINE TOURISM

USEC. OSCAR P. PALABYAB

Department of Tourism

The Growth of World Tourism

Tourism

growth over the past 50 years is

dramatic- 25 Million in 1950 to 698
Million in 2000
One of the most remarkable economic
and social phenomena of that period
Forecasts indicate the trend will
continue with 1.5 Billion in 2020!

The Unstoppable Expansion of

International Tourism
Average growth of 6.5% a year

763 million

25 million

Worldwide Visitor Arrivals and Receipts

1996 - 2006
% Inc/Dec

Visitor
Receipts
(In US$B)

% Inc/Dec

575

6.28 %

434.0

5.60 %

1997

599

4.17

443.0

2.07

1998

617

3.00

443.0

1999

640

3.73

455

2.71

2000

687

7.34

482

5.93

2001

687

464.0

-3.73

2002

707

2.91

474.0

2.16

2003

694

-1.84

535

12.87

2004

765

10.23

635

18.69

2005

806

5.36

683

7.56

2006

842

4.47

Year

Visitor Arrivals
(In Millions)

1996

International Tourist Arrivals

2005
Country

France
Spain
U.S.
China
Italy
United Kingdom
Mexico
Germany
Turkey
Austria

(In Millions)

76
55.6
49.4
46.8
36.5
30.0
21.9
21.5
20.3
20.0

Factors in Tourism Growth

Increase

in real income
Increase in life expectancy
Retiring baby boomers
Faster and cheaper air travel
Easier access and more destinations
Rapid developments in IT

Sampling of tourism expenditures

International

Visa Card holders spent

P37.5 B in 2005 vs P29 B in 2004
Top 5 Visa spending countries in RP
1. U.S.A.
2. United Kingdom
3. Japan
4. South Korea
5. Australia

Visa Card users

Korean

card holders had highest

average spending per transaction at
US$175
Metro Manila got 60% of total
availments or P22.9 B
Luzon = P72B of which Mindoro got
P272M and Palawan P238M
Visayas= P6.1 B (Cebu= P4B), others
Negros, Leyte and Boracay

Spending pattern
Most

popular are accommodation,

retail goods, restaurants,
transportation, sports and leisure
Largest retail market= department
stores and duty free shops
In Metro Manila, hotels got P1.5 B,
airlines P420 M, groceries,
supermarkets P344 M

Trends in Asia Pacific Region

Japans

economy is registering an upward

trend of 2.8%

Hongkong,

China and Korea are predicted to

grow by 5.5%

South

East Asian countries are expected to

grow from 6-7%, characterized by
liberalization on outbound travel and
increasing number of travel agencies

In

China alone, there are about 111 M

internet users now

Visitor Arrivals to the

Philippines

Actual Arrivals (in Million)

Year

Projected

1996
1997
1998
1999
2000
2001
2002
2003
2004
2005

Volume
2.05
2.22
2.15
2.17
1.99
1.80
1.93
1.90
2.29
2.60

Growth Rate
16.4 %
8.5 %
(3.3)%
1.0 %
(8.2)%
(9.8)%
7.6 %
(1.3)%
23.0%
14.5%

2006
2.84
8.4%
Projected Arrivals (in Million)

Actual

Year

Volume

Growth Rate

2007
2008
2009
2010

3.20
3.65
4.24
5.00

12%
14%
16%
18%

Philippine Visitor Receipts

Actual Tourism Receipts
(in US$ Billion)

Year

Volume

1996
1997
1998
1999
2000
2001
2002
2003
2004
2005

2.70
2.83
2.41
2.55
2.13
1.72
1.74
1.52
1.99
2.23

Growth Rate
10.1%
4.8%
(14.8)%
5.8%
(16.4)%
(19.3)%
1.0%
(12.5)%
30.7%
12.32%

2006
3.46
54.96%
Projected Tourism Receipts
(in US$ Billion)

Year

Volume

2006
2007
2008
2009
2010

2.72
3.12
3.56
4.06
4.59

Growth Rate
16.0%
15.0%
14.0%
14.0%
13.0%

Projected

Actual

Philippine Top 12 Markets, 2006

Country

Volume

%
Share

Growth
Rate

KOREA

572,133

20.1%

16.9%

USA

567,355

20.0

7.4

JAPAN

421,808

14.8

1.5

CHINA

133,585

4.7

24.3

TAIWAN

114,955

4.0

-6.5

AUSTRALIA

101,313

3.6

5.02

HONGKONG

96,296

3.4

-10.2

SINGAPORE

81,114

2.9

16.8

CANADA

80,507

2.8

10.5

UNITED
KINGDOM

68,490

2.4

8.7

MALAYSIA

53,279

1.9

23.7

GERMANY

51,402

1.8

2.0

Korea is the

number 1 tourist
market in 2006 with
a share of 20
percent and growth
rate of 17 percent
China continues

to demonstrate
robust growth at
24 percent in
2006 after
experiencing 171
percent increase
in 2005.

Singapore and
Malaysia visitors
continued to
increase with the
proliferation of low
cost carriers

Philippine Top 12 Markets, Jan Sept 2007

Country

Volume
JAN-SEPT
2007

% Share

Volume
JAN-SEPT
2006

%
Growth
Rate

KOREA

472,711

20.9%

406,480

16.3%

USA

433,425

19.1

424,494

2.1

JAPAN

303,420

13.4

326,219

-7.0

CHINA

113,593

5.0

98,136

15.8

TAIWAN

85,551

3.8

87,471

-2.2

HONGKONG

84,910

3.7

70,804

19.9

AUSTRALIA

76,048

3.4

69,341

9.7

SINGAPORE

70,054

3.1

57,827

21.1

CANADA

60,751

2.7

54,511

11.4

UNITED
KINGDOM

55,564

2.5

48,824

13.8

MALAYSIA

48,735

2.2

38,060

28.0

GERMANY

40,211

1.8

37,165

8.2

How Did Our Neighbors Do in

2006/2005?
COUNTRY

2006

2005

Percentage
Growth

Malaysia

17,500,000

16,431,055

6.51%

Thailand

13,650,000

11,516,936

18.52

Singapore

9,673,362

8,875,980

8.98

Indonesia

4,871,351

5,002,101

(2.61)

Vietnam

3,583,486

3,430,000

4.47

Philippines

2,843,345

2,623,084

8.40

Cambodia

1,700,041

1,421,615

19.59

Lao PDR

1,200.000

1,081,606

10.95

Brunei

836,435

815,054

2.62

Myanmar

630,061

660,206

(4.57)

The Birth of the Super

Regions
North

Luzon
Agribusiness
Quadrangle
(NLAQ)
Luzon Urban
Beltway
Central Philippines
Mindanao
Cyberservices
Corridor

The Central Philippines Super Region is composed of Regions 5, 6, 7,

and 8 and the provinces of Palawan, Romblon and Camiguin as well as
the island of Siargao and the City of Dapitan.

This Super region has 51 weekly flights with

average seat capacity of 11,045 from major
tourist markets

International
Flights to
Central
Philippines

16 Flights/Week
From S. Korea

2 Flights/week
From Taiwan

14 Flights/week
From Hong Kong

12 Flights/week
From Singapore

2 Flights/week
From Malaysia

5 Flights/week
from Japan

Central Philippines Super

Region

Seven of the ten most

visited beaches in the
country are located in
provinces in the Central
Philippines Super Region
namely: Cebu, Aklan,
Negros Occidental, Bicol,
Samar, Palawan and
Romblon

Tourism revenues from

Central Philippines reached
P83.82 Billion in 2005, with
Western and Central
Visayas getting the lions
share, raking in 38% and
35%, respectively

POWDER FINE WHITE SAND

BEACHES OF BORACAY

Visitors to Central Philippines

reached 4.64 million or 29
percent of total regional
travelers in 2006
Western Visayas
1,610,677

Romblon
23,780

Palawan
189,911
CENTRAL
VISAYAS
1,631,445

Dapitan
47,769

Bicol Region
637,127

Eastern Visayas
203,569

Surigao
City
58,341

Camiguin
220,062

Endorsed Tourism
Development Projects
in Central Philippines

THE SUPERREGIONS
North Luzon
Metro Luzon Urban Beltway

Year 2006 September 2007

MACAGANG BUSINESS CENTER
MPh 67.917 PEZA

Central Philippines
Super Region

AVENUE PLAZA HOTEL (2007)

Mph 324.205 BOI

Tourism

CLUB MISIBIS
MPh 122.817 - PEZA

CAMARINES SUR TOURISM PARK (2007)

MPh 1,002.93 - PEZA

Camarines

Mindanao

Albay
Masbate

Sorsogon

Romblon

Samar

BORACAY SHANGRI-LA HOTELS &

RESORTS, INC.
MPh 4,030 PEZA Locator

Boracay

Panay

Leyte

MICROTEL INNS & SUITES BORACAY

MPh 128.300 - BOI
BORACAY SANDS HOTEL (2007)
MPh 174.60 - BOI

Palawan

Siargao

Negros
Cebu
Bohol

Camiguin
Siquijor

SHANGRI-LA MACTAN IS. RESORT

MPh 310.400 BOI (Modernization)
IMPERIAL PALACE WATER PARK
MPh 3,180.00 BOI
WATERFRONT CEBU TOURISM ESTATE
MPh 350.00 - BOI

THE BELLEVUE BOHOL

MPh 334.1360 BOI
ESKAYA BEACH RESORT
MPh 815.000 BOI
BLAUES MEER RESORT
MPh 69.700 - BOI

Note:
Total amount of ETDP in Central Philippines
as of January 2006 September 2007

MPh 10,910.005

SUMMARY OF MEDIUM TERM PUBLIC INVESTMENT PROGRAM

FOR
CENTRAL PHILIPPINES
AMOUNT
(IN BILLIONS)

PERCENT
SHARE

AIRPORTS

30.577

16.02

SEAPORTS

0.867

0.45

ROADS

92.973

48.70

RAILWAY

40.000

20.95

FLOOD CONTROL

21.978

11.52

4.500

2.36

190.895

100.00

TYPE OF PROJECT

ENERGY
TOTAL

Key Tourist Markets

Priority

1: China, Japan, Korea

Priority

2: Taiwan, Hong Kong,

Australia

Priority

3: ASEAN, Europe, North

America

Philippine Global
Strategy

Accelerate demand in existing core markets

such as China, Japan, Korea and Filipino
Americans

Increase investment and focus promotion

programs in strategic markets such as
Australia, Russia, Germany and US/ Canada

Reinvigorate marketing efforts in traditional

sources such as, UK, Italy, Spain and
France

Building Sustainable Demand

for the Future

Liberalize air access to and from major

tourist markets either through direct
flights or chartered services

Upgrade and modernize infrastructure

and transport facilities to facilitate
access in tourist destinations
especially in the Central Philippines

Expand tourist accommodation and

recreation facilities

Diversify tourist products and services

such as medical and wellness tourism
for an enhanced tourism experience

Hotel and Resorts Investment Needs

Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010
Current supply Vs 2010 demand in accommodated tourist number
18.5

22.8

4.3

# MM PAX

Domestic
tourist

At least additional
20,152 rooms to
reach 85%
occupancy rate**
Or 38,489 rooms to
reach 70%
occupancy rate**

Foreign
tourist

Note: *Accommodated tourist number does not equals to total tourist number as some tourists may not choose to stay in hotels and resorts
** Assuming demand growth rate for non-accredited establishment rooms is 50% of that for accredited establishment rooms
Source: DOT Hotel Census, August 2005, n=881; DOT Accreditation database as June 2005; Monitor estimation; Monitor analysis

RESULTS FROM 2005 HOUSEHOLD SURVEY

ON DOMESTIC VISITORS, April Sept 2005

43.5% (23 Million)

Filipinos, 15 years
old and up traveled
within this period

EACH INDIVIDUAL
MADE 2 TRIPS AND
VISITED TWO
PLACES IN THE
COUNTRY FOR THE
SIX MONTH PERIOD

RESULTS FROM 2005 HOUSEHOLD SURVEY

ON DOMESTIC VISITORS, April Sept 2005

ALMOST 99% OR 23.5 Million domestic travelers had

independent domestic trips

17.5 Million spend an average of:

1.
2.
3.
4.
5.
6.
7.

Accommodation
P1,200.00
Food and beverage
P 400.00
Sight seeing and guided tour
P 600.00
Entertainment & Recreation
P 300.00
Local transport (sea,air or land) P 400.00
Shopping
P1,100.00
Others
P3,200.00

RESULTS FROM 2005 HOUSEHOLD SURVEY

ON DOMESTIC VISITORS, April Sept 2005
MOST FREQUENTLY
VISITED PLACES:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

NCR
CAVITE
BATANGAS
LAGUNA
ILOILO
BULACAN
NUEVA ECIJA
PAMPANGA
CEBU
PANGASINAN
ALBAY

Visitor Profile And

Travel Characteristics, 2006

Mode of Travel
Air (98.73%)
Sex
Male (61.22%)

Sea (1.27%)
Female (37.40%)

Average Age 38.26 years old

Purpose of Visit
Holiday 46.99%
VFR (Visit Friends / Relatives) 26.66%
Business 13.18%
Convention
1.28%
Official Mission
0.11%

Visitor Profile And

Travel Characteristics, 2006

Frequency Visit (%)

- First Visit
31.27
- Repeat Visit 51.30

Travel Arrangement
- Independent 61.67
- Package Tour 18.56
- Not Stated
19.77

Overall Average Length of

Stay ( Nights)
12.06
- Foreign Visitors
10.98
- Overseas Filipino 48.02

Average Daily Expenditure

(US$)
83.91
Foreign Visitors 84.70
Overseas Filipino
55.78

Foreign Visitors Expenditure

2006

Average Daily Expenditure

Major Items of Expenditure

Accommodation
Shopping
Food and Bev.
Entertainment
Local Transport
Miscellaneous
Guided Tour

US$ 83.91

US$ 25.72
22.01
20.39
4.71
2.81
0.36

7.02

Regional Statistics

Regional Destinations of Foreign Tourists

Jan-Dec 2006*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

REGION VII 542,159

REGION IV 434,530
REGION VI 266,891
NCR
262,364
REGION III 155,394
CAR
76,812
REGION I
52,786
REGION XI 52,756
REGION X 46,284
REGION V 31,153
REGION II 24,453
REGION XIII 16,200
REGION IX 13,647
REGION VIII 13,329
REGION XII 4,606

* Preliminary

Regional Destinations of Domestic

Tourists Jan-Dec 2006*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Region IV
Region VI
Region VII
CAR
Region X
Region XI
Region XII
Region II
Region V
Region IX
Region XIII
Region I
Region III
Region VIII
NCR
-

* Preliminary

5,852,860
1,259,332
1,081,903
902,917
837,851
699,552
618,077
610,715
587,823
480,297
341,844
281,582
251,634
189,643
68,694

CLARK INTL AIRPORT

VISITOR ARRIVALS, JAN DEC 2006

REGION

VOLUME

EAST ASIA

37,481

ASEAN

27,093

AMERICA

8,209

EUROPE

7,046

AUSTRALASIA/PACIFIC

3,057

AFRICA

238

MIDDLE EAST

128

UNSPECIFIED

FILIPINOS

151,052

GRAND TOTAL FOR 2006

235,004

GRAND TOTAL FOR 2005

114,902

GROWTH RATE

104.5%

CLARK INTL AIRPORT

International No of Flights, JAN - DEC 2006

AIRLINES
TIGER AIRWAYS
AIR ASIA
ASIANA
CR AIRWAYS/HONGKONG
AIRLINES
SHANGHAI AIRLINES
CHINA SOUTHERN
GRAND TOTAL

NO. OF FLIGHTS
954
725
278
100
5
3
2,065

Thank You!