1. THE PHILIPPINE NATIONAL TOURISM DEVELOPMENT PLAN 2011-2016
DEPARTMENT OF TOURISM
THE PHILIPPINE NATIONAL TOURISM DEVELOPMENT PLAN
Draft Action Plan
(for discussion purposes only)
June 2011

2. The Philippine Tourism –Diagnosis
Suboptimal socioeconomic development contribution
EFFECT
Inconsistent quality of tourist facilities and services
Highly concentrated pattern of tourism with limited local community participation
Insufficient tourist facilities and services
Low tourism growth volumes
Inadequate public and private sector investment
Low budgets for marketing and promotions
FOCAL PROBLEM
Underdeveloped tourism sector relative to its market and product development potential
Inadequate international airport infrastructure
Limited number of competitive destinations
Cumbersome business operating environment
Perception of the Philippines as an unsafe destination
Inadequate air, sea, and road connectivity to destinations
Inadequate destination/site infrastructure
Discriminatory tax regime for hotels and carriers
Poor compliance
with safety standards
Destination/site security
CAUSE
Overlapping institutional regulatory functions between the national government and LGUs
Inability to develop and expand air accessibility to key growth markets
Weak LGU tourism development capacities

3. INCLUSIVE DESTINATION CONCEPT
NP-1 A B C D E F A
International Airport
Principal Airport - Class 1
Principal Airport – Class 2
Community Airport -
Sea Port
Tourism Cluster
Tourism Development Area
NP-2
Tourism Cluster
NP-3
NP-4
Gateway to
Tourism Cluster
NP-5
International Gateway
Strategic Destination
Clusters
Tourism
Development
Area
NP-6
NP-7
CP-1
Tourism Site
CP-2
CP-3
21 strategic thematic tourism destination clusters covering 77 Tourism Devt Areas)
7 strategic clusters in Northern Philippines (North Luzon, CAR, CALABARZON, NCR) covering 27 tourism development areas
7 strategic clusters in Central Philippines (MIMAROPA, Bicol, The Visayas) covering 24 tourism development areas
7 strategic clusters in the Southern Philippines (Mindanao) covering 26 tourism development areas.
CP-7
CP-5
CP-6
SP-1
CP-4
SP-2
SP-3
SP-4
SP-7
SP-5
SP-6 A

4. “TO BECOME THE “MUST EXPERIENCE” DESTINATION IN ASIA.”
Strategic Vision:
“TO BECOME THE “MUST EXPERIENCE” DESTINATION IN ASIA.”
Improving market access and connectivity
Rapidly expand capacity of secondary international airports
Expand connectivity between Philippines and its key growth markets
Implement a strategic access infrastructure program between secondary international airports and strategic destinations
GOAL: “An environmentally and socially responsible tourism that delivers more widely distributed income and employment opportunities as indicated by
6.6 M international arrivals and
34.8 M domestic travelers generating PhP1,759 billion in total expenditure,
contributing
6.78% to GDP
and employing
6.5 million people by 2016.”
Developing and marketing
competitive tourist destinations and products
Implement a sustainable tourism destination infrastructure program
Develop diversified tourism products that engage local communities
Implement a PPP-based mandatory tourism enterprise accreditation system and facilitate tourism investment and lower cost of business
Safeguarding natural & cultural heritage and vulnerable groups
PPP-based marketing strategy and action plan
Improving tourism institutional, governance
and human resource capacities
Institutionalize roles and responsibilities of DOT and LGUs
Develop a competent well motivated and productive tourism workforce
Improve governance in the area of safety, security, and in dealing with tourists

5. Rapidly expand capacity of secondary international airports
Reduce congestion to improve visitor’s impression
Increase passenger handling capacities
Prioritize:
NAIA, Mactan-Cebu, Clark and Davao ( )
Puerto Prinsesa, Iloilo ( )
Laoag and Zamboanga ( )

6. Expand connectivity between Philippines and its key growth markets
Renegotiate Air Service Agreements with Key Growth Market Countries
Reduce Air International Air Operations Cost in the Philippines
Simplify border formalities/procedures for key growth markets

7. NP-1
NP-3
NP-5
CP-1
CP-3
CP-2
CP-7
SP-1
SP-2
SP-6
NP-4
SP-7
NP-2
NP-6
NP-7
CP-5
SP-4
CP-4
CP-6
SP-5
SP-3 A B C D E F A
International Airport
Principal Airport - Class 1
Principal Airport – Class 2
Community Airport -
Sea Port
Tourism Cluster
Tourism Development Area
Implement a strategic access infrastructure program between secondary international airports and strategic destinations
International Gateway
Strategic Destination
Clusters
Improve, rehabilitate, and expand 23 domestic airports
Improve, rehabilitate, and expand 21 seaports
Improve, rehabilitate, and upgrade 28 strategic connecting roads with total distance of approximately 850kms
Strategic Links A

8. Implement a sustainable tourism destination infrastructure program
Provision of water and water treatment (6 locations), power (4 locations), and solid waste management in (27 locations)
Design and construction of tourism information centers and support infrastructure (26 tourism development areas)
Design and construction of transport terminals and services in (26 tourism development areas)
Tourism sites access and visitor improvements

9. Develop diversified tourism products that engage local communities
Developing Major Mixed-use Tourism complexes in the vicinity of the International Airports
Linking local communities to the tourism value chain created by the major mix use tourism complexes upgraded tourist sites in their vicinity
Review regulations that impede new product development. (e.g. retiree, medical tourism) and amend accordingly

14. Simple Tourism Value Chain
Advising tourist on product, contract
Providing accommodation food, etc.
Transport to the destination
Transport from the destination
Organise event, experience
Travel Agent
Transport Company
Hotel, Restaurant
Site Operator, Cultural Group
Transport Company
CO-ORDINATION OF SERVICES
Tour Operator
Tourism Authority

15. Tourism Value Chain at work

16. Implement a PPP-based mandatory tourism enterprise accreditation system and facilitate tourism investment and lower cost of business
Design and implementation of a PPP-based mandatory tourism enterprise accreditation system
Facilitating business investment and simplifying business set-up and licensing procedures and cost

17. Proposed Framework of the DOT Accreditation Process Primary Tourism Enterprises 2012 – 2016

18. Safeguarding natural & cultural heritage and vulnerable groups
Developing uniquely Filipino destinations and products
Increasing number of heritage sites for international recognition
Advocating the sustainable use of heritage sites
Providing a professional interface between sustainable heritage and tourism

22. Marketing strategy and action plan
Consolidate present product offering and develop highly-focused new products
Design TPB as a product marketing oriented organization
Define new target markets and undertake market penetration.
Set up a unique market positioning that boosts and differentiates the Philippines as a tourism destination.
Establishing customized promotional initiatives to source markets

23. Market Positioning Approach

24. Product-Market Mix Approach

25. Shopping, Leisure & Entertainment Health and Wellness tourism
Nature-based tourism
Sun & Beach
Cultural tourism
Shopping, Leisure & Entertainment
Health and Wellness tourism
MICE
Educational Tourism
Key growth markets
Domestic Market
Japan
South Korea
USA
China
Strategic markets
Australia
Singapore
Malaysia
Canada
Opportunity markets
India
Hong Kong
Taiwan
Russia
Niche markets UK
Germany
Very High
High
Medium
Low
Very Low
100% - Full potential
75% - potential
50% - potential
25% - potential
0% - potential
Source: T&L research,

26. Special Interest Segments
Divers
Typically: young, male, single, regular travelers
Diving is the main motivation for travelling to the destination. The fame of the under water world and the pristine biodiversity are the reasons for travelling to the Philippines
Adventure Experiences
Adventure tourists want to experience remote and unexplored areas while undertaking soft or hard adventure activities.
Shopping, Leisure and Entertainment Tourists
Shopping, Leisure & Entertainment Tourism is a relatively young breed of tourist, who is seeking escapism, entertainment and fun. Time may be limited, but disposable income levels are high.
Honey Mooners
Newly weds on their honey moon spend an important amount of money on a dream destination. Residing in luxury resorts. The trend goes from only passive holidays to active experiences.
MICE
Meeting, Incentives, Congress and Events. The tourists consuming this tourism product travel with their company to the Philippines or are there for business issues. They expect and demand perfect services.
Educational Tourism Regional pupils from all ages come to the Philippines in order to learn and improve their English language skills
Bird Watchers
Bird watchers are passionate about birds and wish to experience them in their natural habitat. Mostly, Bird Watchers are driven by the wish to see specific and rare birds. For this they are willing to travel around the world.
Health and Wellness Tourism
Due to the high costs of medical care in the tourists home country . This type of consumer seeks to look and feel better, to lose weight, to slow the effects of aging, to relieve pain or discomfort, to manage stress, or to partake in the use of natural supplements like vitamins and minerals to improve their health..
Culture Explorers
Search for participation in new cultural experiences, whether they are aesthetic, intellectual, or emotional. They find satisfaction in visiting museums, archeological sites and experience living culture traditions and festivals
Beach Relaxation
Tourists that seek for relaxation and sun along the Philippines beaches. In addition, activities mostly undertaken are: fishing, scuba diving, sailing, golf, water skiing, whale watching, windsurf, relaxation therapies, spa, etc.
Golf Tourists
Golf Tourists are passionate about Golf. Their main motivation is to play Golf all year round and travel to the destination that entitle them to do so.
Source: T&L research,

27. National Tourism Marketing Program
Strategic Marketing
Branding
Product Development Clubs
Marketing Intelligence
International Marketing Network
Adapting DOT marketing & representation offices to market priorities
Create DOT regional market offices and use local market representatives at country level
Operational Marketing
Commercialization
Promotion
Communication
Public relations

28. Marketing Action Plan Budget 2012-2016 (USD)
2012
2013
2014
2015
2016
TOTAL
1. Strategic Marketing Program
795,000
50,000
390,000
300,000
1,925,000
Sub-porgram 1: Philippine's Tourism Positioning Management
355,000
555,000
Sub-porgram 2: Tourism Product Clubs Development Franework
190,000 -
100,000
670,000
Sub-program 3: Marketing Intelligence Management
250,000
150,000
700,000
2. Tourism Marketing Network Program
750,000
3,041,068
3,087,759
3,140,841
3,201,190
13,220,859
Sub-program 1: International Network Offices
450,000
2,700,000
11,250,000
Sub-program 2: Fostering National Tourism
341,068
387,759
440,841
501,190
1,970,859
3. Operational Marketing Program
9,477,000
13,050,547
15,195,698
17,305,945
20,837,995
75,867,184
Sub-program1: Commercialization
960,000
1,877,613
2,127,219
2,665,461
3,669,206
11,299,499
Sub-Program 2: Promotion
4,265,000
6,138,857
7,322,641
8,092,293
9,715,254
35,534,044
Sub-program 3: Communication
2,334,000
2,853,513
3,266,765
3,729,745
4,249,260
16,433,282
Sub-program 4: Public Relations
1,148,000
1,305,155
1,483,825
1,686,953
1,917,888
7,541,820
Sub-program 5: Market Intelligence
770,000
875,409
995,248
1,131,493
1,286,388
5,058,538
TOTAL BUDGET MARKETING MACRO PROGRAM
11,022,000
16,141,615
18,673,457
20,746,786
24,429,185
91,013,043

29. Forecast arrivals per country of origin 2011 - 2016
2012
2013
2014
2015
2016
CAGR
Korea
11%
USA 8%
Japan 3%
China
21%
Australia
Taiwan 5%
Hong Kong 7%
Singapore
15%
Canada
United Kingdom
Malaysia
89.257
99.968
13%
Germany
60.487
62.301
64.793
68.033
72.115
77.884 4%
India
38.039
42.604
48.994
57.813
68.220
78.453
Russia
15.521
16.607
17.936
20.088
23.101
26.335 9%
Scandinavia
51.237
55.080
59.486
64.536
70.990
78.089
Others
TOTAL

30. Institutionalize roles and responsibilities of DOT and LGUs
Clarify the institutional role and responsibility of DOT and LGU’s in key areas
Strengthening tourism governance and policy formulation in the DOT
Strengthening DOT support for Local Government Units (LGU’s) by establishing DOT provincial units
LGU Awareness and capacity building

31. Tourism Governance and Management Model for the Philippines
Proposed Philippine Tourism Governnance & Management Framework
National Level
Regional Level
Local Level
Tourism Advisory and Consultative Bodies (Tourism Coordination Council-Tourism Congress-Regional Tourism Congresses)
Regional Tourism Councils/ Congresses
(DOT-Tourism Congress-Civil Society)
Provincial Tourism Councils
Local Tourism Councils and Action Groups
Department of Tourism
Tourism Promotion Board
TIEZA
Regional Tourism Offices
Regional &
Provincial Level Tourism Units
City and Municipality Tourism Units
Strategic level
Tactical Level

32. Develop a competent well motivated and productive tourism workforce
Skills capability building
Improving labor relations
Professional Tourism Training and Education
HR Recognition, Networking, and Development

33. Proposed Tourism and Hospitality Management Education System (2012 – 2016)

34. Human Capital Development Philippine Tourism Industry 2011 - 2016

36. “Mabuhay! Tuloy Po Kayo” Program for CIQS at International Ports
Improve governance in the area of safety, security, and in dealing with tourists
“Mabuhay! Tuloy Po Kayo” Program for CIQS at International Ports
Expanded DOT TOP-COP Program
Tourism Front-Liners Awareness and Values Training Program
Establish Tourism Crisis Management Unit
Pilot PPP based local tourism civil order programs in each region targeting reduced
Criminality and lawlessness
Traffic congestion
Littering and waste

39. Provisional Cost Estimates of NTDP in (PhP ‘000s)
2011
2012
2013
2014
2015
2016
Total
Improving market access and connectivity
5,000
3,787,320
3,798,600
1,760,950
1,416,185
339,685
11,107,740
Developing and marketing competitive tourist destinations and products
3,957,811
6,747,997
7,279,105
4,607,570
1,448,838
24,041,322
Improving tourism institutional, governance and human resource capacities
171,194
170,399
69,961
64,340
540,233
Grand Total
7,916,325
10,716,995
9,110,016
6,088,095
1,852,863
35,689,295

40. NTDP Implementation Approach
Full time coordination and supervision of the implementation of the strategic programs will be required at the national, regional, and local level
Overall implementation to be coordinated through:
National Tourism Coordinating Council
DOT NTDP Program Implementation Coordination & Monitoring and Evaluation Unit
Infrastructure programs and projects to be implemented by related agency project management and implementation units

41. Project Implementation Organization Arrangement

42. Infrastructure - Implementation, Financing and Operations and Maintenance Arrangements
Type of Infrastructure
Lead Agency
Mode of Financing Capex and O&M
Possible Financing Partners
Project Implmentation
1. Secondary International Airport Infrastructure Upgrading Program
DOTC
Annual Budgets
Project Loans
User fees and charges
Public sector lenders
Private Sector as providers and O&M
DOTC Project Management and Implementation Units
2. Air, sea and land connectivity to strategic cluster destination entry points improvement program
DOTC/ DPWH
Program/Project Loans
As above
DOTC/DPWH Project Management and Implementation Units
3. Tourist development area utility destination infrastucture program
DPWH/ LGUs
DPWH/LGU Internal Project Management and Implementation Units
4. Tourist center support and site visitor infrastructure program
DOT/DENR/NCCA/ LGUs
Program Loans
LGU Counterpart
Specially created Project management and Implemetation Units