Trends & Prospects in the Tourism Industry

A Presentation by:

Undersecretary SIMEON P. MARFORI Department of Tourism

Presentation Outline
World Tourism Statistics Philippine Tourism Overview General Global Travel Trends Tourism Product Trends DOT Policy and Thrusts Key Strategies

2009 World Tourist Arrivals (in millions)

Source: UNWTO World Tourism Barometer Vol . 8 No. 1, January 2010

Top International Destinations (2009)
Rank 1 2 3 4 5 6 7 8 9 10 France United States Spain China Italy United Kingdom Turkey Germany Malaysia Mexico

Country

Volume
74.2 54.9 52.2 50.9 43.2 28.0 25.5 24.2 23.6 21.5

Source: UNWTO World Tourism Barometer Interim Update April 2010

World Tourist Receipts (in US $ Billions)

Source: UNWTO World Tourism Barometer Vol . 8 No. 1, January 2010

2009 World Top Earners: Tourism Receipts (in US$ Billion)
(Source: UNWTO World Tourism Barometer, Interim Update, April 2010)

* Philippines (2008) 10 Austria (2008) 9 Turkey 8 Australia 7 United Kingdom 6 Germany 5 China 4 Italy 3 France 2 Spain 1 United States 0

2.4 21.8 21.3 25.6 30.1 34.7 39.7 40.2 48.7 53.2 94.2 20 40 60 80 100

2009 Regional Tourism Receipts (in US$ Billions)

International Tourist Arrivals by (Sub) Regions (in Millions) 2004 - 2008
2004 2005 803.7 441.6 153.6 48.5 2006 847.3 462.2 167.0 53.1 2007 904.2 487.3 181.9 59.7 2008 921.8 487.9 184.1 61.6
Growth Rate (µ08/¶07) World Inbound Tourist

World Europe Asia and the Pacific
Southeast Asia

764.4 424.4 144.2 47.1

1.9% 0.1% 1.2% 3.1% 52.9% 20.0% 6.7%

Americas Africa Middle East

125.7 33.8 36.3

133.3 37.3 37.9

135.8 41.4 40.9

142.9 45.1 47.0

147.2 47.0 55.6

2.9% 4.0% 15.5%

16.0% 5.1% 6.0%

Source: UNWTO World Tourism Barometer Vol. 7 Np. 2, Vol.6, No. 2; Vol. 4. No.3

2008 Southeast Asia Tourist Arrivals (by millions)
Source: UNWTO World Tourism Barometer Vol. 7, No. 2, June 2009

Southeast Asia Malaysia Thailand Singapore Indonesia Vietnam Philippines Cambodia Myanmar

2008
22,052 14,584 7,778 6,234 4,236 3,139 2,001
193,000 (thousand)

Vietnam 7% Indonesia 11%

Philippines Cambodia 5% 3% Myanmar 0% Malaysia 37%

Singapore 13%

Thailand 24%

Source: UNWTO World Tourism Barometer Vol . 7, No. 2, June 2009

2004-2008 Visitor Arrivals to the Philippines
3,500,000

3,091,993
3,000,000

3,139,422

2,843,345 2,623,084

2,500,000

2,291,352

2,000,000

1,500,000

1,000,000

500,000

0

2004 1

2005 2

2006 3

2007 4

2008 5

Average Growth Rate: 10.66%

Major Tourist Markets in the Philippines, 2008
700,000 Arrivals 600,000 20.0% 500,000 % Share 25.0%

400,000

15.0%

300,000 10.0%

200,000 5.0% 100,000

0 Korea USA Japan China Australia Taiwan Hong Kong Canada Singapore United Kingdom Malaysia Germany

0.0%

Fast Growing Markets in the Philippines (Arrivals) 2004 - 2008

Importance of Tourism in the Philippine Economy Today
Foreign tourism receipts to GDP ratio grew from 1.9% in 2003 to 3.4% in 2007 Foreign tourism receipts to Total Exports ratio more than doubled from 3.9% in 2003 to 7.9% in 2007
Source: Republic of the Philippines NATIONAL STATISTICAL COORDINATION BOARD

Importance of Tourism in the Philippine Economy Today
Partly because of investments in tourism destinations, construction sector grew by 23.1 % making it a big factor in the record economic growth in 2007 Employs 9.7% of total employment. Directly employing 3.2 million Filipinos today.

Top 14 Destinations in The Philippines 2009 1. Cebu 2. Camarines Sur 3. Metro Manila 4. Baguio City 5. Davao City 6. Boracay 7. Cagayan de Oro 8. Zambales 9. Bohol 10. Puerto Princesa City 11. Camiguin 12. Cagayan Valley 13. Negros Oriental 14. Ilocos Norte

Global Travel Trends

Global Travel Trends
Senior Citizens and Women will travel more..
‡ Senior citizens and women travelers are fast increasing in the bulk of the world travelers; ‡ This has prompted the push for women-friendly destinations as more female professionals are travelling; ‡ To attract the aging traveling market, there is a push for retirement villages or nursery villas; ‡ Elderly travelers are most attracted to visiting cultural sites. They are also keen in short holiday breaks.

Source: Newsweek Magazine, May 2010

Global Travel Trends
The Modern Chinese Traveler: Rise of Global China
‡ China is now ranked as the 2nd largest source of tourists to some destinations in Asia such as Singapore, Indonesia, Taiwan, Nepal and No. 1 in Vietnam, Macau and Hong Kong. ‡ It has overtaken Japan as the leading Asian Market to Europe with 11 million arrivals in 2008. ‡ There is a rediscovery of Chinese culture, history as well as a thirst for Western culture. As China opens up to the world, the world is also opening to China.

Source: Newsweek Magazine, May 2010

Global Travel Trends
Travel has become more Activity-Based rather than Destination-Based 
Travelers nowadays are deciding what activities they want to partake first before choosing a destination.  Destinations must create unique activities to entice tourists. This paved the way for the creation of NICHE MARKETS which particularly lures in a specific kind of traveler.  This shift has also required the delivery of custommade tours which require the experience to be unique and personalized.
Source: Newsweek Magazine, May 2010

Global Travel Trends
Booming Economies and the development of low-cost carriers (LCC) makes intra and inter regional travel more affordable and accessible 
due to low cost of airfares, people can now afford to travel frequently  this has also changed people s traveling habits and patterns as they are now more into traveling multiple short-haul breaks  LCC s is also one of the reasons that drive the growth of Intra-Regional Travel within the Asia Pacific Region
Source: Newsweek Magazine, May 2010

Global Travel Trends
There is polarization of travel spending 
Though many people can now travel, most are still under a tight budget. Thus, there is a rise for budget hotel accommodations. There are also many international hotel chains that are investing in this type of accommodations.

Source: Newsweek Magazine, May 2010

Global Tour Products

Medical Tourism

Medical Tourism:
‡ One of the fastest growing tourism market segments ‡ Medical Travel today is estimated to be at the range of $40 to $60 billion, with an annual growth rate of 20% ‡ By 2013, it is predicted that medical tourism is going to be a $188 billion global business.

Medical Tourism:
‡The Department of Tourism launched a program in 2006 to entice and attract medical tourists into the country. ‡In 2007, the Philippines has about 60,000 foreign patients. This grew to about 100,000 in 2008. ‡ Since the launch of the Department s program, medical revenues have grossed to an estimated $350 million. ‡By 2015, the DOT expects the influx of 1 million patients, generating a total revenue of $3 billion with 200,00 foreign patients arriving annually.

Medical Tourism:
The Philippines as a preferred Medical Destination:

‡ Filipino competence and warm hospitality
‡ Compassion and sensitivity ‡ Filipinos unique brand of quality care ‡ Quality of Treatment ‡ Fluency in English ‡ Competitive Medical Costs ‡ Highly Skilled Medical Professionals

Medical Tourism:
Target Markets: 1. United States ± accounts for $ 1.7 trillion of the $3.3 trillion spent annually for health care worldwide o there are over 50 million uninsured Americans and a large number of underinsured, who are seeking treatments outside the U.S. 2. Europe ± the healthcare infrastructure is not able to cope up due to the increasing life expectancy and aging population 3. Canada 4. Australia

Medical Tourism:
Medical Services Offered in the Philippines: ‡ Dental & Orthodontics ‡ Surgery ± Angioplasty, Angiogram, Cardiac ‡ Dialysis & Kidney Transplant ‡ Orthopaedic Surgeries ‡ Cosmetic, Reconstructive & Curative Procedures ‡ Opthalmology, Lasik and CK procedures ‡ Executive check-up, MRI , CT-Scan

Medical Tourism:
QUALITY STANDARDS LOCAL :  DOT-ACCREDITATION FOR TERTIARY HOSPITALS  DOT-ACCREDITATION FOR AMBULATORY CLINICS INTERNATIONAL:  JOINT COMMISSION INTERNATIONAL (JCI) JCI-Accredited Hospitals in the Philippines 1. Medical City of Pasig 2. St. Luke¶s Medical Center (Quezon City) 3. Chong Hua Hospital (Cebu City)

Adventure Sports Tourism

AdventureTourism:
an outdoor leisure activity that generally takes places in an unusual, exotic, remote & wilderness setting sometimes involving some form of unconventional means of transportation and tending to be associated with low or high levels of physical activity.

Adventure Tourism:
‡ According to the Adventure Travel Trade Association (ATTA), adventure travel is the fastest growing segment of the leisure travel industry. ‡ This is due to the fact that people are increasingly seeking authentic/unique experiences that stretch the imagination and create potential memories that last a lifetime. ‡ It involves a variety of activities ranging from soft adventure to extreme adventure e.g. kayaking, mountaineering, caving, white water rafting, etc.

AdventureTourism:
‡ Trends in Adventure Tourism:  Girlfriend Get-Aways women travelling together. More than 50% of adventure travelers are women, between the ages of 41 and 60  Glamping (Glamorous Camping)  Animal Safaris/ Wildlife Vacation

Adventure Tourism:
Quality Standards 

DOT ± Accreditation of Mountain Guides  DOT- Accreditation of Cave Guides

Meetings, Incentive Travel, Conventions and Exhibitions (M.I.C.E)

Meetings, Incentives, Conventions and Exhibitions (M.I.C.E):
‡ A fast growing travel trend that combines business and leisure. ‡ Due to globalization, the business travel market is foreseen as growing faster than leisure travel. Among the business travel market, Asian business travelers are the fastest growing segment. ‡ Asia is fast becoming a convention hub. This is due to being a major recipient of direct foreign investments and the increase of many multi-national corporations in the region. ‡ Aside from foreign investments, the many different exotic culture of Asia is also a primary draw for Westerners.

Meetings, Incentives, Conventions and Exhibitions (M.I.C.E):
‡ Destination appeal is selecting a convention site. important when

‡ M.I.C.E Buyers are increasingly looking for new destinations and activities. ‡ Group incentive travel will become more active with host communities. At times local immersion is integrated to make the experience more meaningful

Agri - Tourism

Agri Tourism:
a form of tourism which capitalizes on rural culture as a destination and attraction.

Agri Tourism:
‡ The main appeal of Agri-tourism is its cultural landscape where a glimpse of how the past generations lived and worked. ‡ Typical regional crops and local breeds can become an attraction to tourists. ‡ The main benefit of Agri-tourism is the improvement of rural communities thus also promoting regional / countryside development. ‡ Farmers generate additional income by hosting visitors, educating the public and promoting farm products.

Agri Tourism:
Quality Standards 

DOT ± Accreditation for Agri-Tourism Sites

VolunTourism

VolunTourism:
‡ Refer to active, hands-on, volunteer vacations that address global issues of environmental degration and poverty alleviation while fostering understanding between visitors and host communities. ‡ One of the growing trends in tourism, with a 30% participation increase in 2007. ‡ 6% of all American active travelers took a volunteer action every year.

VolunTourism:
‡ Voluntourism is on the rise in most developed countries. As their population ages quickly, these have prompted corporate social responsibilities becoming a norm. ‡ There has been increased incentive trips where they incorporate community activities to enrich participants travel experience. ‡ Among the activities being undertaken are building houses, cleaning up of polluted areas, immersion with the local community, feeding, etc. ‡ Participants of Voluntourism usually consist corporate workers, baby boomers and students.

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Food Tourism

Food Tourism:
‡ A new travel trend that rose from the demand for new experiences and adventure while experiencing local culture. ‡ Trends that drive culinary tourism:  individualism  multi-cultures consumer  well-being/ healthy lifestyle  desire for new experience and cultural immersion  role of celebrity chef and media

Food Tourism:
THE DEPARTMENT OF TOURISM LAUNCHED A CULINARY TOURISM PROGRAM DUBBED AS ³KULINARYA´ TO INTRODUCE PHILIPPINE FLAVORS TO DOMESTIC AND INTERNATIONAL SCENE AND PROMOTE THE COUNTRY AS A CULINARY DESTINATION

DOT Policy & Program Thrusts 
Pursue the implementation of the Tourism Act of 2009 or R.A. No. 9593  Formulate & coordinate the adoption & implementation of the National Tourism Development Plan 2011-2016  Formulate & coordinate the adoption of guidelines for the preparation of local tourism development plans

DOT Policy & Program Thrusts 
Formulate & coordinate the guidelines for the mandatory accreditation of primary tourism enterprises  Conduct researches, surveys and studies on tourism demand and supply as well as market intelligence on key tourist markets  Formulate guidelines on tourism product development

Key Strategies 
Transforming the Bureaucracy - creating a culture of service, transparency & accoutability  Public-Private Sector Partnership - regulation & enforcement as mandated in R.A. 9593  Area Clustering - complementary approach - creation of tourism circuits - development of tour products

Key Strategies 
Capability-Building of Key Players at the National & Local Levels thru Donor Partnership  Development of National Tourism Database & Knowledge Management Systems

Thank you«

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