Tourism in the Philippines

September 2015

Tourism in the Philippines

Department of Tourism
September 2015

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

Vision, mandate, and strategies

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

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

Tourists in the Philippines

International Tourist Arrivals (in millions)

Domestic Travelers (in millions)

4.83mn

54.6mn

Inbound arrivals in 2014

Domestic travelers in 2014

4.83

Target
54.6

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

29.1

37.5

41.3

45.6

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

2010

2011

2012

2013

2014

51.7

56.1

2015

2016

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 2015
Korea

479

762

490
457

456
423

USA
414

390

481

Japan

279

China

257

Australia

Jan

Feb

Mar

Apr

May

3.11mn arrivals,
up by 8.7% from the same
period in 2014

Jun

137

Singapore

107

Taiwan

104

Canada

93

UK

91

Malaysia

91

Jul

Hong Kong
Germany

73
43

Tourism receipts
Top Export Items for the Philippines in 2014
(PHP billion)

International Tourism Receipts (PHP billion)

PHP274.6bn
Target

Expenditures of international
visitors to the Philippines

Miscellaneous services*

911

Semiconductors

695

INBOUND TOURISM

275

Inbound tourism ranked

Electronic data processing

164

3rd among the biggest

Principal agricultural products

148

exports in 2014

21.9%Increase from 2013

274.6

7.6%
Out of Total Exports of
Goods and Services

162.0 149.6 125.6 123.7 135.5 158.5 195.2 225.3

350.4 455.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Domestic Tourism Receipts (PHP billion)

Ignition wiring sets

85

Articles of apparel

83

Most Tourism Expenditures Come from Accommodation

Services and Shopping of Tourism Goods in 2014

PHP1.469tn
Target

Expenditures of domestic
visitors

24.0%

Increase from 2013

1,469.0

Transport
13%

16.0%
Out of Total Household Final
Consumption Expenditure

441.1

550.7

490.3

531.4

713.8

Food & beverage

5%

Travel agencies
9%
922.8 1,040.4 1,184.7

Accommodation
32%

1,607.1 1,852.1

Entertainment & recreation

11% Miscellaneous
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
15%

Shopping of tourism goods

15%

Source: Philippine Statistics Authority

* Miscellaneous services include the exports of processing services, financial intermediation services indirectly measured (FISIM), and maintenance
and repairs (that are not included elsewhere).

Employment
Direct Employment in Tourism (million)

4.8mn

Target

Number of people directly

employed in the tourism industry

4.1

4.3

4.6

4.7

4.8

6.3

7.4

2010

2011

2012

2013

2014

2015

2016

Share of Tourism Industries Employment to

Total Employment (%)

12.5%
About 125 of
every 1,000
employment
is in the
tourism
industry

12.5

Percentage share of
employment in tourism
industries to total
employment

Distribution of Employment in Tourism

Industries for 2014 (%)
Entertainment and recreation
7.4%
Retail trade on tourism
6.6%
Miscellaneous
15.0%

10.5

10.6

10.7

11.2

11.4

11.5

12.1

12.4

2006

2007

2008

2009

2010

2011

2012

2013

Source: Philippine Statistics Authority

2014

Travel agencies
0.6%

Passenger transport
35.6%

Accomodation and food & beverage

34.8%

Contribution to GDP
Tourism Share to GDP (%)

7.8%

Target

Percent share of the tourism

industry to the Philippine
economy

7.8

Tourism Direct Gross Value Added (PHP billion)

PHP982.4billion
6.5

6.5

5.8

5.9

6.4

7.0

7.2

7.5

7.8

Target

Value of the size of tourism in

the Philippines by 2014

8.7

14%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

404.8

451.3

982.4

Increase from 2013

444.7

477.3

573.0

678.4

764.9

861.7

974.0 1,147.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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 NationsWorld 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

Accessibility and
Connectivity

Pursued air services
negotiations resulting in
opening of 75
international flights with
579,192 air seats

Initiated strategic
programs for niche
markets, e.g. (English as a
second language, dive,
medical and route
development)

Implemented aggressive
campaign on cruise
tourism generating 30%
increase in port of calls
by international cruise
lines

Forged agreements to host

major international events,
such as Madrid Fusion
Manila, Dive Resort
Fair, Routes Asia

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

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

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

12

Major programs for 2016

Retail-based campaign
Special packages for repeat
visitors

Line-up of events include:

13

Tourism in the Philippines

September 2015