1. TOURISM…. BUILDING SOCIO- CULTURAL BRIDGES NARZALINA Z. LIM PRESIDENT

2. Tourism from China is alive and well even after super typhoon Yolanda Coron, Northern Palawan Nov. 30, 2013

3. Coron, Northern Palawan

4. Nov. 30, 2013

5. Visitors from China have been growing in spite of tensions in the West Philippine Sea INBOUND PRC TOURISM 201020112012 Mainland187,446243,137250,883 Total Philippines3,520,4713,917,4544,272,811 Share %5.3%6.2%5.9% Source: Department of Tourism, Philippines

6. INBOUND CHINESE TOURISM (Greater China) 201020112012 Mainland187,446243,137250,883 Taiwan142,455181738216,511 Hong Kong SAR133,746112,106118,666 Macau SAR-7,2619,288 Subtotal-Chinese463,647544,242595,348 Total Philippines3,520,4713,917,4544,272,811 Share %13.2%13.9% Source: Department of Tourism, Philippines

7. PRC Visitors to Selected SEA Countries in 2012 ArrivalsShare of MarketGrowth on 2011 Indonesia618,2237.7%25.4 % Malaysia1,558,78519.3%24.6 % Singapore1,515,00018.8%23.0 % Thailand2,700,00033.5%20.08 % Vietnam1,428,69317.7%100.84 % Philippines250,8833.1%3.2 % 8,071,584100.0%28.6% Source: Websites of National Tourism Organizations

8. Tourist Arrivals from China – Prospects for 2014 Direct scheduled flights by PAL and Cebu Pacific to Beijing, Shanghai, Xiamen, and Guangzhou will continue

9. Charter flights to Kalibo will resume in March (passengers bound for Boracay) Source Cities: Changsha Ningbo Xiamen Suzhou These charter flights are expected to bring in 100,000 Chinese visitors to Boracay in 2014.

10. Reports from hotels and resorts indicate that they will be full during Chinese New Year 2014, with visitors from China, Hong Kong and Taiwan

11. What the Chinese like about the Philippines: Shared Heritage/ Cultural & Family Ties Beaches/Marine Life Value for Money Destination Friendly and welcoming Filipinos

12. China is a very popular destination for Filipinos

13. Filipino Arrivals in the Asia Pacific Region for 2010 CountryFilipino ArrivalsShare Brunei14,7200.4% Cambodia56,1561.5% China828,30021.9% Hong Kong603,03015.9% India24,5340.6% Indonesia189,4865.0% Japan77,3772.0% South Korea297,4527.9% Laos10,3410.3% Macau247,7706.5% Malaysia486,79012.9% Singapore544,34414.4% Taiwan87,9442.3% Thailand246,4306.5% Vietnam69,2221.8% Total3,783,896100.0%

14. The Chinese market’s potential is enormous.

15. For Chinese International Travellers In 2011, 70.3 million border-crossings from Mainland China were recorded, an increase of more than 20% compared to 2010. In the first half of 2012 the figure continued to rise by almost 20% compared to the same period last year, reaching 38.6 million border-crossings. Growth of China’s Outbound Tourism Source : www.china-outbound.com

17. Positive Relationship between Philippines and China in the Tourism Sector

18. The Philippine Dept of Tourism signed a Memorandum of Understanding with China for tourism exchange and cooperation as early as 1989 This MOU was upgraded to a MOA in 1990

19. There have been exchange visits between DOT officials and staff with the China National Tourist Administration (CNTA) officials

20. The Philippines supported China’s bid to join the Pacific Asia Travel Association in 1992.

21. APPI, a Philippine- registered consulting company, prepared the Tourism Master Plan for Sichuan Province in 1998

22. APPI also prepared the Tourism Master Plan for Yunnan Province in 2000

23. MAJOR CHINESE TRAVEL SEGMENTS Mass Market: first time travelers visiting neighboring countries in Asia; 90% of Chinese outbound is still within the Asian continent New Chinese Tourists: more in depth experience + time in the destination; High Net Worth Individuals and repeat travelers Business Travel: investors, exhibitors in trade fairs, traders Family Travel: like the beach, natural environment, etc. Source : www.china-outbound.com

24. The Philippines should take advantage of the inherent good will and friendship between the Filipino and Chinese people by: Putting a structured program in place for Chinese visitors to appreciate the Philippines and Filipinos and increase mutual understanding Increasing people to people exchanges

25. The Philippines should take advantage of the inherent good will and friendship between the Filipino and Chinese people by: Giving young Chinese who have studied / are studying in the Philippines enough information and experiences to increase their appreciation and understanding of the country

27. 27th Floor, BPI Buendia Center 372 Sen. Gil Puyat Avenue Makati City 1226, Philippines Telephone: (63-2) 464-9022 / 721-4953 Fax No.: (63-2) 7253209 Mobile: (906) 833-3987 Email: appi@asiapacificprojects.com Website: www.asiapacificprojects.comappi@asiapacificprojects.com NARZALINA Z. LIM PRESIDENT