1. OVERVIEW OF PHILIPPINE TOURISM
USEC. OSCAR P. PALABYAB
Department of Tourism
Good afternoon to all of you. On behalf of our Secretary, Joseph H. Durano, it is indeed a great honor for me to present the Secretary’s thoughts on the deepening of Philippine-Spanish relations through tourism.
We thank the organizers of the 2nd Tribuna España-Filipina for the invitation to speak before this gathering. From the previous presentations, we can see that there is a need to improve relations between our two countries in practically all fields of endeavour, from a political, economic and commercial standpoint, to social and cultural relations. It is now my turn to speak on the last topic for the day, which addresses the question: What can the Philippine tourism industry offer Spain?
Let me begin by pointing out the fact which is known by almost every Filipino schoolchild – the Philippines was a colony of Spain for more than three hundred years. That long interlude in our history has given us a deep Hispanic heritage, and the Philippines today remains the only country in Asia with that particular distinction.
Allow me to give you a profile of Spanish travellers to the Philippines.

2. 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!

3. The Unstoppable Expansion of International Tourism
763 million
25 million
Average growth of 6.5% a year

4. Worldwide Visitor Arrivals and Receipts 1996 - 2006
Year
Visitor Arrivals
(In Millions)
% Inc/Dec
Visitor Receipts
(In US$B)
1996
575
6.28 %
434.0
5.60 %
1997
599
4.17
443.0
2.07
1998
617
3.00
1999
640
3.73
455
2.71
2000
687
7.34
482
5.93
2001
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

5. International Tourist Arrivals 2005
Country
(In Millions)
France 76
Spain
55.6
U.S.
49.4
China
46.8
Italy
36.5
United Kingdom
30.0
Mexico
21.9
Germany
21.5
Turkey
20.3
Austria
20.0

6. 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

7. 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

8. 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

9. 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

10. Trends in Asia Pacific Region
Japan’s 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

11. Visitor Arrivals to the Philippines
Actual
Projected
Actual Arrivals (in Million)
Year Volume Growth Rate % %
(3.3)% %
(8.2)%
(9.8)% %
(1.3)% % % %
Projected Arrivals (in Million)
Year Volume Growth Rate % % % %

12. Philippine Visitor Receipts
Actual Tourism Receipts
(in US$ Billion)
Year Volume Growth Rate % %
(14.8)% %
(16.4)%
(19.3)% %
(12.5)% % % %
Projected
Actual
Projected Tourism Receipts
(in US$ Billion)
Year Volume Growth Rate % % % % %

13. 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

14. Philippine Top 12 Markets, Jan –Sept 2007
Country
Volume
JAN-SEPT 2007
% Share
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

15. 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,
1,081,606
10.95
Brunei
836,435
815,054
2.62
Myanmar
630,061
660,206
(4.57)

16. The Birth of the Super Regions
North Luzon Agribusiness Quadrangle (NLAQ)
Luzon Urban Beltway
Central Philippines
Mindanao
Cyberservices Corridor

17. THE CENTRAL PHILIPPINES SUPER REGION
And so with these initial intentions received, the government is doing its bit to lay down the groundwork to see these investments through to fruition.
The President has identified the Central Philippines Super Region as the development area of the country for tourism. This region spans the provinces of Palawan, Romblon, Camarines, Albay, Catanduanes, Masbate, Sorsogon, Guimaras, Aklan, Antique, Capiz, Iloilo, Negros, Bohol, Cebu, Siquijor, Biliran, Samar, Leyte, Camiguin and the islands of Siargao in Surigao and Dapitan in Zamboanga.
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.

18. 5 Flights/week from Japan
This Super region has 51 weekly flights with average seat capacity of 11,045 from major tourist markets …
International Flights to Central Philippines
5 Flights/week from Japan
16 Flights/Week
From S. Korea
2 Flights/week
From Taiwan
14 Flights/week
From Hong Kong
Having 51 weekly flights with an average seat capacity of 11,045, it is the hub of all our tourism activities.
2 Flights/week
From Malaysia
12 Flights/week
From Singapore

19. Central Philippines Super Region
POWDER FINE WHITE SAND
BEACHES OF BORACAY
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 lion’s share, raking in 38% and 35%, respectively

20. Visitors to Central Philippines reached 4
Visitors to Central Philippines reached 4.64 million or 29 percent of total regional travelers in 2006
Bicol Region 637,127
Eastern Visayas 203,569
CENTRAL VISAYAS
1,631,445
Romblon 23,780
Palawan 189,911
Western Visayas 1,610,677
Surigao City
58,341
Camiguin 220,062
Dapitan 47,769

21. in Central Philippines
Endorsed Tourism
Development Projects
in Central Philippines
Year 2006 – September 2007
THE SUPERREGIONS
North Luzon
Metro Luzon Urban Beltway
MACAGANG BUSINESS CENTER
MPh – PEZA
AVENUE PLAZA HOTEL (2007)
Mph –BOI
CAMARINES SUR TOURISM PARK (2007)
MPh 1, PEZA
Central Philippines
Super Region
Tourism
CLUB MISIBIS
MPh PEZA
Camarines
Mindanao
Albay
Masbate
Sorsogon
Romblon
Samar
BORACAY SHANGRI-LA HOTELS & RESORTS, INC.
MPh 4,030 – PEZA Locator
MICROTEL INNS & SUITES BORACAY
MPh BOI
BORACAY SANDS HOTEL (2007)
MPh BOI
Boracay
Panay
Leyte
Negros
Siargao
Palawan
Cebu
Bohol
Camiguin
Siquijor
THE BELLEVUE BOHOL
MPh – BOI
ESKAYA BEACH RESORT
MPh – BOI
BLAUES MEER RESORT
MPh BOI
SHANGRI-LA MACTAN IS. RESORT
MPh – BOI (Modernization)
IMPERIAL PALACE WATER PARK
MPh 3, – BOI
WATERFRONT CEBU TOURISM ESTATE
MPh BOI
Note:
Total amount of ETDP in Central Philippines
as of January 2006 – September 2007
MPh 10,

22. SUMMARY OF MEDIUM TERM PUBLIC INVESTMENT PROGRAM FOR CENTRAL PHILIPPINES
TYPE OF PROJECT
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
ENERGY
4.500
2.36
TOTAL
100.00
With the government prioritizing its development under the medium term public investment program, we can expect new and improved airports, seaports, roads, railways, flood control structures and energy systems to materialize within the coming months. Public investment is estimated to total 190 Billion pesos.
As a matter of fact, a number of airport projects are already in the offing. Many of the seaport projects will be implemented starting 2007.

23. Key Tourist Markets Priority 1: China, Japan, Korea
Priority 2: Taiwan, Hong Kong, Australia
Priority 3: ASEAN, Europe, North America

24. 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

25. 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

26. 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
At least additional 20,152 rooms to reach 85% occupancy rate**
Or 38,489 rooms to reach 70% occupancy rate**
Domestic tourist
Though government is taking the lead for the development of the necessary support infrastructure, we need the partnership of private investors in the building of tourism infrastructure.
Our limited supply of accommodation facilities is about to reach its full capacity in a few years. Additional 20,000 to 30,000 rooms are needed to meet the increased demand by 2010.
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

27. 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

28. 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. Accommodation P1,200.00
2. Food and beverage P
3. Sight seeing and guided tour P
4. Entertainment & Recreation P
5. Local transport (sea,air or land) P
6. Shopping P1,100.00
7. Others P3,200.00

29. RESULTS FROM 2005 HOUSEHOLD SURVEY ON DOMESTIC VISITORS, April – Sept 2005
MOST FREQUENTLY VISITED PLACES:
NCR
CAVITE
BATANGAS
LAGUNA
ILOILO
BULACAN
NUEVA ECIJA
PAMPANGA
CEBU
PANGASINAN
ALBAY

30. Visitor Profile And Travel Characteristics, 2006
Mode of Travel
Air (98.73%) Sea (1.27%)
Sex
Male (61.22%) Female (37.40%)
Average Age years old
Purpose of Visit
Holiday %
VFR (Visit Friends / Relatives) 26.66%
Business %
Convention %
Official Mission %

31. Visitor Profile And Travel Characteristics, 2006
Frequency Visit (%)
- First Visit
- Repeat Visit 51.30
Travel Arrangement
- Independent 61.67
- Package Tour 18.56
- Not Stated 19.77
Overall Average Length of Stay ( Nights)
- Foreign Visitors
- Overseas Filipino 48.02
Average Daily Expenditure
(US$)
Foreign Visitors
Overseas Filipino

32. Foreign Visitors Expenditure 2006
Average Daily Expenditure US$ 83.91
Major Items of Expenditure
Accommodation US$ 25.72
Shopping
Food and Bev
Entertainment
Local Transport
Miscellaneous
Guided Tour

33. Regional Statistics
Good afternoon to all of you. On behalf of our Secretary, Joseph H. Durano, it is indeed a great honor for me to present the Secretary’s thoughts on the deepening of Philippine-Spanish relations through tourism.
We thank the organizers of the 2nd Tribuna España-Filipina for the invitation to speak before this gathering. From the previous presentations, we can see that there is a need to improve relations between our two countries in practically all fields of endeavour, from a political, economic and commercial standpoint, to social and cultural relations. It is now my turn to speak on the last topic for the day, which addresses the question: What can the Philippine tourism industry offer Spain?
Let me begin by pointing out the fact which is known by almost every Filipino schoolchild – the Philippines was a colony of Spain for more than three hundred years. That long interlude in our history has given us a deep Hispanic heritage, and the Philippines today remains the only country in Asia with that particular distinction.
Allow me to give you a profile of Spanish travellers to the Philippines.

34. Regional Destinations of Foreign Tourists Jan-Dec 2006*
REGION VII ,159
REGION IV ,530
REGION VI ,891
NCR ,364
REGION III ,394
CAR ,812
REGION I ,786
REGION XI ,756
REGION X ,284
REGION V ,153
REGION II ,453
REGION XIII ,200
REGION IX ,647
REGION VIII ,329
REGION XII ,606
* Preliminary

35. Regional Destinations of Domestic Tourists Jan-Dec 2006*
Region IV - 5,852,860
Region VI - 1,259,332
Region VII - 1,081,903
CAR ,917
Region X ,851
Region XI ,552
Region XII ,077
Region II ,715
Region V ,823
Region IX ,297
Region XIII ,844
Region I ,582
Region III ,634
Region VIII ,643
NCR ,694
* Preliminary

36. CLARK INT’L 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 8
FILIPINOS
151,052
GRAND TOTAL FOR 2006
235,004
GRAND TOTAL FOR 2005
114,902
GROWTH RATE
104.5%

37. CLARK INT’L AIRPORT International No of Flights, JAN - DEC 2006
AIRLINES
NO. OF FLIGHTS
TIGER AIRWAYS
954
AIR ASIA
725
ASIANA
278
CR AIRWAYS/HONGKONG AIRLINES
100
SHANGHAI AIRLINES 5
CHINA SOUTHERN 3
GRAND TOTAL
2,065

38. Thank You!