SCAD TOURISM ROADMAP

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1 SCAD TOURISM ROADMAP

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3 CONTENT 1 CONTEXT OF THE ROADMAP Tourism and the SCAD Corridor Preparing the Roadmap NTDP and SCAD Roadmap Roadmap Objectives Principles Process and Methodology SITUATIONAL ANALYSIS Market Destination Supply Bridging Components Institutions STRATEGIC DIRECTIONS, ACTIONS, ACTIVITIES AND PLANS Vision Targets Strategic Directions Strategic Actions and Activities STRATEGIC ACTIVITIES AND ACTION PLANS IMPLEMENTATION MECHANISM Annexes Annex 1 Annex 2 Tourism Situationer Tour Packages iii

4 1 CONTEXT OF THE ROADMAP 1.1 Tourism and the SCAD Corridor The Philippines is being positioned as the must experience destination in Asia under the recently concluded National Tourism Development Plan (NTDP) The Aquino administration aims to bring in 6.6 international visitors and move 30 million domestic travellers by the end of his term. The Central Luzon cluster is one of the Top 10 clusters identified under the plan given the presence of an international gateway, the Clark International Airport. This cluster s development hinges on the growth of tourism facilitated by Clark Airport and the destination development programs in the Subic- Clark Corridor. Based on the data on arrivals of accommodation establishments, as reported by the DOT Regional Office, the Central Luzon cluster hosted 593,366 visitors in 2010, 70 percent domestic and 30 percent foreign arrivals. The complete data per province for the year 2010 were not yet available at the time of writing this report. The SCAD Corridor, composed of the provinces of Pampanga, Tarlac, Bataan and Zambales, with Subic- Clark as anchor destinations, accounted for 88 percent of the total arrivals in While growth has been evident, Central Luzon cluster continues to lag behind the other regions of the Philippines, specifically Region IV- A, the main competitor of the Central Luzon cluster in attracting international and domestic tourists from Metro Manila. Survey results revealed that the top destinations of international visitors outside of Metro Manila are Tagaytay, Cebu, Batangas. The NTDP projects that the Central Luzon cluster will attract 1.2 million visitors by 2016, thus requiring an additional 3,200 to 4,000 quality rooms from its current level of about 3,000 quality rooms (5,000 if all types of rooms are counted). Note however that these forecasts are based on the count of accommodation establishments that reported to the DOT. At this time, there is no mandatory accreditation in place for the accommodation establishments and thus the figures may be understated. Furthermore, there are visitors who do not stay in these facilities and are therefore not accounted for in the projections. This roadmap document serves only as guide to key activities that the stakeholders in the Corridor identified during the Consultations and have been aligned to the NTDP as well. After all, the implementation of the NTDP will be done at the local levels and by local units. 1

5 The potential of tourism as a major socio- economic driver for growth and tools for development in the SCAD has been identified as one of the priority sectors that will help hasten the integration of the provinces in the cluster by The Subic- Clark Alliance for Development Council s (SCADC) primary purpose is to ensure that there is an integrated and coordinated approach towards the development of the SCAD Corridor as a logistics center in the Asia Pacific Region. Its board members include the Bases Conversion Development Authority (BCDA), Clark Development Corporation (CDC), Clark International Airport Corporation (CIAC), Subic Bay Metropolitan Authority (SBMA), Philippine National Railways. The SCAD Corridor is composed of the provinces of Pampanga, Tarlac, Bataan and Zambales, and anchored on the twin anchor destinations of Clark and Subic Bay. The SCADC supports the development of tourism as an industry of national importance (Republic Act No. 9593, or the Tourism Act of 2009) in the SCAD Corridor and one that requires efficient logistics if the corridor is to become a competitive destination. Once the Roadmap is in place it will become vitally important for the tourism coordinators of in the area to share the nature of their discussions and planning with the Regional Tourism Office in order to ensure that the there is synergy between local and provincial plans, sub- regional groups such as the SCAD Corridor, the regional and national development efforts. 1.2 Preparing the Roadmap In 2010, the SCADC initiated to prepare a Tourism Roadmap, in partnership with the DOT Region 3 office, in order to consolidate the efforts being done for tourism development and promotions. The SCADC partnered with the stakeholders in preparing this roadmap. The private sector is an essential player in the development process. In fact, it serves the driver or engine of growth. The private sector refers to the agglomeration of enterprises and communities of stakeholders including NGOs and people organizations. 1.3 NTDP and SCAD Roadmap The roadmap remains consistent with the thrust, strategic directions and action plans of the NTDP. The NTDP serves as framework for developing tourism, but the implementation and success of the NTDP rest on the local units such as the DOT Region 3 office, provincial and local LGUs, the SCADC and all stakeholders in tourism destination such as Subic- Clark. 1.4 Roadmap Objectives The overall objective of this Roadmap is to develop a blueprint outlining policies, programs and projects that can be implemented by tourism offices at the provincial and/or local level. These programs cover essential 2

6 components of tourism development from product development to marketing, and human resource development. 1.4 Principles The strategic directions, actions and activities outlined in this Roadmap integrate the four pillars of sustainable tourism development economic, socio- cultural, environmental and institutional. The Roadmap considers that sustainable development requires a balance between the economic gains from tourism growth and the risks and negative effects that such growth may bring on the local communities. Cases of displacement of local residents to tourism enclaves have been well documented. The degradation of resources, including cultural and heritage, is something that the Corridor stakeholders must prevent given the already fragile nature of environmental conditions in the area. Part of this sustainable development goal is the consultation process and collaboration with the stakeholders across different sectors of tourism in the SCAD region. As tourism grows, it can lead to a concentration of benefits to only a few sectors in society. Hence, it is important to reiterate that the thrust of the Roadmap is to promote inclusive growth. This growth agenda seeks to integrate the marginalized and vulnerable sectors of the Corridor in the tourism value chain and therefore contribute to the wider distribution of income and wealth and ultimately to the improvement in the standards of living. The Roadmap likewise aims to promote the development of new creative/innovative products or improvement of existing ones that will improve the tourist experience and generate very high satisfaction ratings and likelihood for return and recommendations. These products should serve to pull tourists to spend more and stay longer not just in the Philippines in general but more importantly in the Corridor. 1.5 Process and Methodology Framework - During the consultations and process of preparing the report, the following framework of the Tourism System was used. This framework simply recognizes the interactions among the three major components of the tourism system. Suppliers are connected to the markets by the` bridging components (air, sea, land connections, travel and marketing intermediaries). Intermediaries and integrators facilitate the flow of information, funds, knowledge and marketing between the suppliers and the markets. The markets drive competition in tourism. The different preferences and motivations need to be served and destinations compete in order to satisfy the markets through product development. The fourth element is the set of institutions that affect the interaction of the three components. The institutional component is the binding component, and the fourth pillar of sustainable development that is most crucial 3

7 in linking the destination and the markets via the bridging components. These institutions account for the inclusive component of the inclusive growth agenda. Figure 1.1 The Tourism System Process - Consultations were held starting September 2010 in Subic Bay, followed by a series of small focus group discussions or stakeholders meetings. These stakeholders likewise participated in the regional consultations under the NTDP. The idea of producing this Roadmap in tandem with the finalization of the NTDP was proposed by REID Foundation Inc. in order to align the Corridor s initiatives with the national plans without necessarily compromising the local stakeholders initiatives and inputs. Such alignment can benefit the area in terms of access to funding, resources and even political capital. The consultations reflected the widespread views and interests within the tourism industry in the region, and to a major extent the fragmentation in terms of sub- regional development. It is recognized that this roadmap is a work in progress and that each iteration of the roadmap will bring with it new ideas, concepts and issues. The strategic directions presented in this document reflect the views of the various stakeholders consulted and the ideas of the team that put together this Roadmap but not the views of USAID and the Asia Foundation. Work in Progress In the process, the partners decided that it is best if key activities and actions are implemented while the roadmap is being prepared in order to produce some concrete outputs rather than wait for the Roadmap to be finished. Hence, some actions and activities in this Roadmap document are either currently being implemented or have been implemented already. For example, the institutionalization of the tourism office was already initiated in the Angeles City office. Secondly, the strategic marketing program for Clark airport is an ongoing concern. The partners recognized that SCADC, on its own, does not have the existing mandate and structure to implement the strategic directions and plans on the Corridor level. Nonetheless, SCADC s board members 4

8 specifically the CDC, SBMA and CIAC are directly involved in a number of tourism development efforts and projects. After all, the anchor destinations in the Corridor are Subic and Clark. 2 SITUATIONAL ANALYSIS The main objective of this section is to identify the issues arising from the existing activities and actions that are currently in place and the issues, obstacles and opportunities that exist for ensuring competitive and sustainable tourism in the region. Please see Annex 1 for the more detailed Situationer. 2.1 Market Current Market Base Source Markets o International arrivals to the Philippines reached 3.5 million in The top 12 source markets of the Philippines accounted for 82 percent of total arrivals. The top 5 source markets of the Philippines were USA, South Korea, Japan, China, Taiwan. In terms of geographical proximity, the top short haul markets were South Korea, Japan, China, Taiwan, Hong Kong, Singapore, Malaysia. The only haul markets that contribute the bulk of the volume are US, Canada, Australia, Germany, UK, due to the natural affinity with the Overseas Filipino market. o Using the figures from the DOT Regional Office, there were 151,228 foreign tourists who stayed in the accommodation establishments of Central Luzon, bulk of whom stayed in the Subic- Clark area. The top 5 source markets were USA, Japan, South Korea, Australia and UK. o As regards domestic visitors, Central Luzon is a popular destination for day trips due to its proximity to Metro Manila, especially during special occasions such as Holy Week and Christmas. The domestic tourism traffic is highly concentrated in Zambales and Pampanga (81 percent of total), both located in the SCAD Corridor. Market Characteristics o The strong market segments of the area include adventure (i.e Subic and Pintaubo), MICE (i.e. Subic, Clark), long stay and retirement (i.e. Zambales and Angeles). o The Corridor is a destination of domestic meetings and events because of the Freeport zone status of both Subic and Clark. It is also a popular destination for families and for educational tourism (i.e. culinary, field trips). In terms of leisure, the top destinations are still Angeles and Subic. 5

9 2.1.2 Evolving Demographics and Market Potentials An outward orientation is required in order to position the Corridor as one of the top destinations in the Philippines. An inquiry into the top source tourism markets mentioned above reveals that they are also in the list of the world s Top 10 tourism spenders. These are the USA, Canada, China, Japan, and UK. They are also high yield markets of the Philippines, meaning that they have high spending on the average and they stay longer in the Philippines. Russia is another big tourism spender but the Philippine s share to the 17 million outbound travel of Russia is only a meager 0.09 percent. France is another big spender but only 27,302 visitors from France visited the Philippines. Korea, the country s biggest source market, used to be among the biggest tourism spenders in 2007 but was overtaken by the Netherlands as its tourism spending declines. Figure 1.1 Philippine Source Tourism Market vs. Tourism Spenders Sources of basic data: Department of Tourism (2009) and World Tourism Organization (2010) It is easy to comment that the market is large and that the prospects are bright given the volume of outbound travellers in the region. However any roadmap recognizes the need to look into the travellers motivations and preferences, as espoused in the tourism system in Figure 1.1. Consider China, which is an exploding tourism market. Its outbound travel market is estimated at 50 million trips. The whole world aims to target the Chinese spenders, especially the new rich in China. The Philippines is attracting only 187,446 Chinese nationals from the mainland based on 2010 data on arrivals. Targeting the China market is not an easy task, especially directly to the Corridor via Clark. Apart from the lack of direct flights at this time, the Subi- Clark stakeholders will have to look into the readiness of the destination for the China market. The Worldwide Index of Travel 1, a survey conducted by MasterCard, in the second half of 2008 revealed that the 1 The survey respondents are middle class living in urban areas 6

10 biggest concerns of Chinese tourists are safety and security, language and communication barriers, and fear of losing passports, credit cards and wallets (all linked to safety and security not only in the destination but also at the facility level). This may explain why many Chinese tourists still prefer Hong Kong and Macau. Outside of these, Japan and Korea are the next top destinations due to proximity and cultural ties. The preference for Macau and Hong Kong can also be driven by the preference of the Chinese travellers for activities such as shopping, general sightseeing, and entertainment. However, there are preferences by the Chinese that these two destinations could not completely offer. The Chinese travellers also prefer to experience different cultures and cuisines and to visitor historical sites, art centers, beach resorts/spas for rest and relaxation. These are activities that the Philippines, and the Subic- Clark environs can offer. The readiness of the destination, however, is something that needs to be addressed in this Roadmap and in the local plans. There is a change in demographics in the world today. Populations of developed economies like Japan and the long haul North America and Europe are aging and are creating demands for new products that cater to their travel needs (e.g. close proximity of the airport to the destinations, wellness and medical, long stay lifestyle services, retirement). At the same time the young population of Asia is a base for youth tourism oriented towards cultural, heritage, rural and urban living options. Top destinations like France are supported by the youth tourism market, about 10 percent of their total volume of arrivals Challenges There have been initiatives by the CDC, SBMA, CIAC, DOT Region Office, and the provincial and local governments to bring in international and domestic visitors via creation and marketing of events sports tourism, golf, gaming and entertainment. Still, there are issues identified during the consultations that should be urgently addressed if there is to be an effective regional marketing activity. Market Research and Intelligence There is a need to improve the information system (e.g. origin and destination profile, results of visitor sample survey for arrivals via Clark, satisfaction levels for tour packages, amenities, facilities and services about the visitor experience) that will give the industry a better profile of the markets and their preferences. This will eventually provide solid market research that will guide the marketing efforts the type of mission (outbound or inbound), branding programs and communication strategies. Marketing Subic- Clark as one destination - Stakeholders have expressed concern that Subic- Clark is still not being promoted as one destination. Funding - One issue is that the present level of funding is simply insufficient to embark on a professional marketing campaign for the Corridor. Hence the 7

11 marketing of Subic- Clark as one destination and the integration of other products of other areas in the Corridor will necessitate additional funds which may not be incorporated in the budgets of SBMA and CDC. Marketing Strategy - There is a need for the Corridor to come up with a marketing strategy that is endorsed and supported by all stakeholders, including the Regional and National Tourism Offices and the wider travel and tourism industry. Any collaborative marketing effort must add value and complement the actions of individual destinations and their tourism offices. PR and Communication - One major strategic issue will be to focus on who determines how to get the message out i.e. that there is more to the Corridor than the nightlife and adult entertainment in Angeles and Olongapo Cities. Another is the distribution channels will be and how to conduct the assessment of the effectiveness of these various initiatives. The SCADC can explore partnerships among the provincial and local tourism offices and tap into the resources of major stakeholders in the region. Incentives One of the issues will be to determine benefits and incentives for various stakeholders who promote the region in addition to national products. Implementation Mechanism One concern is the appropriate body or organization to best consolidate these marketing efforts. There is insufficient coordination between the public and private sectors on responsibilities and roles in the sub- regional marketing efforts promotion of events and tour packages between government bodies and the private sector. The private stakeholders view both SBMA and CDC as competitors rather than partners in tourism development in the area. There were proposals for the SCADC, together with the DOT Region 3 office, to serve as the implementation arm of the initiatives in this Roadmap. 2.2 Destination Supply The state of destination supply can be best described in terms of the attractions, facilities, and infrastructure (e.g. site/access roads, power, telecommunications, water supply) Attractions, Product and Activities Central Luzon Region offers variety of attractions cultural, historical, natural, heritage - to both domestic and foreign visitors. During the consultations, specifically during the regional NTDP consultations, DOT Region 3 proposed the theme: Central Luzon Wellness of Diversity. Indeed, this tourism cluster boasts of a variety of sites and attractions that can be connected through activities under tourism circuits. The main challenge for the SCAD stakeholders is to develop a set of unique products and experiences that recognize these changes. The rise in experiential travel is one example of the need to upgrade as well as add new products and experiences. The 8

12 development of individual products and experiences is clearly the responsibility of individual provincial and local tourism offices and the private sector in those areas along the Corridor, and supported by a range of non- governmental organizations. The role of the tourism offices is to work with the private sector in order to package these products and experiences in such a way that there is more visitation to the region. During the series of consultations, the tourism products identified by the stakeholders (including the provincial officers) to have the regional appeal that can meet the overall objective of encouraging travel within the region are shown in the Figure 2.2. The feedback from the consultations is presented together with the results from the rankings made by individual ASEAN country stakeholders as part of the ASEAN Tourism Strategic Plan In the case of the Philippines, the table reveals that the Philippines has strong appeal in almost all products/tourism resources except for MICE, shopping, gateway hubs, sports tourism and pilgrimage tourism. ASEAN as a whole has the highest potentials for product development in the area of culture, nature and cruise activities by the various stakeholders who were consulted. Stakeholders in the ASEAN consultations did not believe that the Philippines has a regional appeal for sports tourism and pilgrimage tourism. However, the stakeholders in the SCAD Corridor believe otherwise. This can be explained by the fact that there are ongoing events organized by the entities such as CDC and SBMA especially for MICE and sports tourism. Nonetheless, the scale of activities in the Corridor is still very small to give confidence to national stakeholders to rate the Philippines as truly competitive in those areas. The scale, for MICE in Subic and Clark is not at the same competitive level as those in Singapore, Malaysia and Thailand. The local MICE market is the main market for the Corridor because it is most accessible to the domestic rather than the international market. In the case of religious tourism, the markets are still domestic since the Philippines is the only predominantly Catholic country in Southeast Asia and that the tourism circuit for pilgrimage tourism is not yet developed. Furthermore, the markets that will most likely be interested in pilgrimage tourism are more of the long haul, but could not be drawn due to the poor air access. In a similar manner, the stakeholders of the Corridor believe that the sub- region has an appeal for meetings, incentives, conventions and exhibitions. Foreign MICE tour operators consider a destination for international events if it gas about 3,000 rooms of the standard and de luxe categories. 9

13 Figure 2.2 Ranking of the Importance of Various Tourism Resources and Experiences Note: * Culture includes UNESCO World Heritage sites, local tradition and intangible heritage, ethnic groups/ minorities, community based tourism/homestay. ** Marine includes diving, surfing, beaches. *** Creative includes the performing and visual arts, music, Broadway shows, design etc. 10

14 Table 1.1 Cultural, Historical and Religious Attractions Province Aurora Bataan Bulacan Pampanga Tarlac Nueva Ecija Zambales Source: DOT Cultural, Historical and Religious Attractions Aurora Aragon Quezon Memorial Church of Baler Birthplace of Manuel L. Quezon Bataan Peninsula Church of Hermosa Bataan Provincial Capitol Church of Orani Las Casas Filipinas de Acuzar Church of Orion Balanga Catholic Church Belfry Church of Samal Church of Abucay Church of Sta. Monica Balagtas Monument Biak- na- Bato Cave Bulacan Old Train Station Calumpit Bridge Barasoain Church Church of Hagonoy Church of Meycauayan Church of Quingua Pampanga Provincial Capitol Nayong Pilipino sa Clark Bacolor Municipal Hall Bale Herencia Pamintuan Mansion Apalit Parochial Church Betic Catholic Church Church of Lubao Central Azucarera de Tarlac Camiling Church Camp Pangatian Shrine Church of Gapan Botolan Resettlement Sites Camara Ancestral House Capones Island Lighthouse Malolos Cathedral Marilao Catholic Church Obando Church San Miguel Catholic Church San Rafael Catholic Church St. John the Baptist Church Sta. Maria Church Church of Magalang Holy Rosary Cathedral Metropolitan Cathedral of San Fernando Minalin Church San Guillermo Parish Church San Luis Church St. Michael of Archangel Parish Church St. Nicholas of Tolentino Parish Church San Sebastian Church St. Rose of Lima Church Church of Penaranda Fort Paynauen Church of Andres Church of St. Agustine 11

15 Table 2.2 Natural Attractions Province Aurora Bataan Bulacan Pampanga Tarlac Nueva Ecija Zambales Source: DOT Natural Attractions Ampere Beach Aniao Islet Balete Tree Banju Springs Borlongan Beach Bulawan Falls Canawer Beach Casiguran Sound Cemento Beach and Reef Charlie s Point Cobra Reef in Cemento Cunayan Falls Dicasalarin Beach Digisit Beach Anvaya Cove Beach and Nature Club Balon Anito Baranda Farm Baras Bakal Dunsulan Falls Aguinaldo Cave Ambush Cave Aroma Beach Bahay Paniki Cave Bakas Bukal Cave Cuarto- Cuarto Cave Dona Remedios Trinidad Natural Wonders Hilltop Hospital Cave Liputan Island Mt. Arayat Anao Quinabutik Bueno Hot Spring Dolores Spring Well Maamot Hot Spring Barrio Puncan Binbin Falls Burburayok Spring Capintalan Gaboldon Falls General Luna Falls Alwasan Lanum Cave Apaan Cave Baloc- Baloc Cave Bucao River Calanga Reef Camera and Capones Islands Coto Mines Mountain Resort Grande Island Hermana Mayor Island Masinloc Oyon Bay Mt. Mabanban Dimadimalangat Islet Dingalan Bay View Site Dingalan White Beach Ditumabo Falls Ermita Hill Lamao Cave Mt. Anacuao Bird Watching Pagkain ng Bayan Plateau Paltic Falls Pimentel Falls Sabang Beach Sierra Madre Trail Tariktik Point Mash Gas Flame Mt. Malasimbo Mt. Natib Pasukan Falls Talaga Beach Madlum Cave Mt. Lumot Pandi Mineral and Bath Spring Resort Pinagrealan Cave Pug- pog River Puning Cave Santol Cave Sibul Spring Tilandong Falls Tumutulo Falls Verdivia Falls Mt. Pinatubo Trek and Spa Town Paradise Island Tarlac Ecotourism Park Timangguyob Waterfalls Hot Spring of Rizal Minalungao National Park and Cave Mt. Olivette Pajanutic Falls Palaspas Falls Mt. Pinatubo Mt. Tapulao Pinatubo Lake Potipot Island San Salvador Island/Marine Sanctuary Silanguin Bay Sta. Barbara Falls Sto. Nino Cave Subic Bay 12

16 Table 2.3 Festival and Events Province Festivals and Events Aurora Aurora Surfing Cup Aurora Foundation Day Moro- Moro Zarzuela Dingalan Foundation Day Cocobanana Festival Dipaculao Foundation Day Pilgrimage to Ermita Hill Bataan Araw ng Kagitingan Pawikan Festival Bulacan Guiguinto Garden Festival Sto. Nino Festival Luyang Dilaw Festival Pulilan Carabao Festival Obando Fertility Rites Pastillas Festival Calumpit Festival Singkaban Festival Angel Festival Sambuklod Festival Horse Festival Nueva Ecija Tanduyong Festival Tsinelas Festival Taong Putik Pampanga Blasting of Judas Iscariot Ibon- Ebon Festival Frog Festival Apo Fiesta Philippine International Fiestang Culiat Hot- Air Balloon Festival Caragan Festival Apung Iru Fluvial Festival Sisig Festival Duman Festival Sinukwan Festival Giant Lantern Festival Tarlac Inuruban Festival Malatarlak Festival Zambales Source: DOT Summer S.A.Y.A. Festival Horse Harness Races Zambales Mango Festival Camote Festival Paynauen Duyan Festival Sibit Sibit Festival Dumarokdok Festival May Flower Festival Subic Karakoa Festival Ulo ng Apo Festival Aeta Festival Binbayani Festival Kristong Hari Festival Olongapo City Fiesta 13

17 Table 2.2 Tour Packages in Central Luzon Provinces Tour Packages Bataan Heroes Tour Mt. Samat Memorial Tour Bulacan Visita Iglesia Barasoain Church Tour Agricultural Tour Baybay - Ilog Culinary Tour Biak na Bato Cave Explore Cultural Tour Kamestizuhan Walking Tour Educational Tour History Tour Heritage Tour Malolos Republic Tour Industrial Tour Cave Exploration Puning Cave Day Tour Obando Fertility Rites Verdivia Falls Tour Pulilan Carabao Festival Pampanga Clark - Arayat - Candada Day Tour School Tour Clark - Boracay Tour Mt. Pinatubo Tour Clark - Busuanga Tour North Philippines Escapade Clark - Cebu - Bohol Tour Northern Luzon Loop Tour Clark - Ilocos Tour Eco- Agri Tour Clark - La Union Tour Apung Iru Fluvial Festival Clark - Manila Tour Kulinary Day Tour Metro Angeles cum Lahar Clark - Subic Tour Clark - Visita Iglesia Sinukwan Festival Nueva Ecija Farm Tourism Zambales Subic - Bataan Tour Subic Bay Tour Subic - Zambales Tour Subic Summer Wet and Wild Subic Bay Corporate Outing Subic Jungle Survival Tour Subic Bay Family Fun Subic Ocean Adventure Tour Subic Bay Gimmick Barkada Subic Wonder Over Wrecks Subic Bay Holiday Mango Dinamulag Festival Subic Bay Nature Adventure Source: DOT Facilities As of the latest data of DOT, there are 105 hotels in Central Luzon providing 5,016 rooms to domestic and foreign visitors. Most of these hotels are classified as standard and economy. Of these, 42 are located in Angeles City, Pampanga. Other cities in Zambales and the whole province of Aurora still lack accommodation facilities. In addition, there are 90 resorts registered with DOT in Central Luzon, 54 of which are located in Zambales. Majority of resorts in Zambales are located along its respective provincial coastlines. However, although Bataan also has a coastline, there are no registered resorts in the province. Aside from hotels and resorts, there are 40 lodging houses in the region providing 364 rooms. 14

18 Table 2.5 Accommodation Facilities Province Hotels Lodging Houses Resorts No. Room No. Room No. Room Aurora Baler Subtotal Bataan Bulacan Nueva Ecija Pampanga Angeles Clark Mabalacat Subtotal , , Tarlac Zambales Olongapo City Subic 28 1, Subtotal 38 1, REGION 105 5, ,974 Basic data sourced from DOT The region has good restaurants, mostly small- scale, that cater to visitors offering varied menus from local dishes to different international dishes. As of the current data from DOT, a total of 143 restaurants are registered. On the other hand, there are 41 convention facilities mostly located in Pampanga and Zambales. About 74 stores and shops are offering from local handicrafts and souvenirs to other necessity products Table Other Tourism Related Facilities Province Restaurant Shopping/Souvenir Convention Store Aurora Bataan Bulacan Pampanga Tarlac Nueva Ecija Zambales TOTAL Source of basic data: DOT Region 3 The cluster has quite a number of general hospitals and JCI accredited ones such as the New Medical City that will open a branch in the Global Gateway Logistics Center. There is also the ARDI hospital inside Clark Subic also has its own set of hospitals patronized by retirees in the area. 15

19 2.3.3 Destination infrastructure Most of the major roads leading to key tourism sites in the Corridor are relatively well- developed. The SCTEX is a very convenient access, by private vehicle, between Clark and Subic and from Subic to Tarlac. The common complaints are related to the poor state of roads in specific provinces or municipalities that lead to tourist attractions/sites. For example, stakeholders have complained about the lack of access road from Mariveles to Bagac leading to the beach resorts along South China Sea in Bagac and Morong and the Pawikan Conservation Center. Another is the access road leading to Limutan Falls in Bagac, an eco- tourism site- cover the soil with gravel. The same is true in the case of the Sta. Juliana road leading to Mount Pinatubo, from Tarlac. Amenities are still needed to cater to the road travels to/from different sites in the Corridor. Signages have yet to de installed especially along the heritage and religious tourism circuits. Public toilet amenities exist sporadically, mostly in gasoline stations, but have still relatively poor standards of amenities and services Challenges Product offerings It was recognized that tourism products must be enhanced and made to be more interactive to meet the needs of the changing consumer. The packages are very limited to site visits or holding of events and lack of focus on the visitor experience. There is no group/task force that deals specifically with tourism product development issues and strategies. They are done at the provincial and local levels, with hardly any coherent approach that will lead to products that will satisfy the markets needs and preferences. There are no well- organized modules of individual and syndicated packages (i.e. heritage, cultural, nature) that link Clark/Subic to other areas of the Corridor in order to make growth more inclusive. Tourists staying inside Clark Zone often complain of the lack of activities and lack of accessibility to explore the sites outside of the zone using efficient and friendly public transport vehicles. There are only a limited number of inbound operators currently offering these packages and their success or effectiveness in generating the yields has yet to be evaluated. On the other hand, tour packages usually offered by tour operators in the region are enumerated below. It shows that there are variety of tours offered per province, especially in Bulacan, Pampanga and Subic. However, for provinces such as Aurora, Bataan, Nueva Ecija and other cities in Zambales, organized tour packages are limited. One can also observed that there is a lack of integration of tour packages between the provinces. This shows that each province has its own initiatives in promoting their own provinces that the region lacks more coordinated tour packages. This loses the opportunity of increasing the number of stay and expenditure of tourist in the region. 16

20 Number of facilities and activities There is limited number of rooms that will cater to discriminating markets that prefer first class to de luxe services or even boutique services. Furthermore, even within Subic Bay and Clark Zone, the anchors for tourism growth in the SCAD Corridor, there is still very limited number of activities that can be done within the zones, should the visitor decide to explore outside of the general purpose of travel (i.e. beach tourism). Quality of facilities and services - More than the number of rooms, the more pressing concern is the quality of the facilities and services. The markets are becoming more conscious of the quality and standards of services as they become more concerned with protection and security. The facilities are still not required to submit to mandatory accreditation given that the national standards are still being developed as part of the Tourism Act of There are already clear indications that major tour operators are now very much concerned with a wide range of standards in a destination. Those destinations that are able to satisfy those increasingly high standards will have a distinct position of advantage. It is well recognized that the overall tourism experience is influenced by a wide range of different touch points including airport immigration procedures, taxi service, levels of attention in hotels and so forth. It also must be recognized that the creation of standards is straightforward if it is basically dealing with an inventory of attributes such as facilities. When concerns of quality are introduced it becomes much more complex both in terms of defining standards and most importantly assessing the process. These standards include: Homestay, Green Hotels, Food and Beverages Services, Public Restrooms, Ecotourism, Tourism Heritage 2.3 Bridging Components Existing Connectivity Links Road Networks - National roads connect Metro Manila to Central Luzon and the provinces within the region. Central Luzon in fact has the most complete road network in the country due to availability of north- south backbone and east- west lateral roads. The north- south connection consists of four main roads namely: North Luzon Expressway, Manila North Road, Daang Maharlika Road and Subic- Clark- Tarlac. The North Luzon Expressway provides a link between Metro Manila and the provinces of Bulacan and Pampanga. The Manila North Road also known as McArthur Highway, connects Metro Manila and Rosario through San Fernando, Pampanga, Angeles and Tarlac. Daang Maharlika Road, known as the Philippine- Japan Friendship Highway provides access to Cagayan Valley starting from Sta. Rita, traversing the cities of Cabanatuan and San Jose. Subic- Clark- Tarlac Expressway provides an easier route to Subic and Tarlac where it passes through the interchange of NLEX near Clark. Aside from having a dense road network, the region also has good paved national roads. In 2009, records shows that the overall pavement ration is 17

21 considerably good compared to other region at 7% and a low ratio of national roads that is covered by gravel and earth at 1%. Figure 2.3 Existing and Proposed Road Network Public transportation modes to and between the provinces include bus and jeepneys (Table 2.7). Table 2. 3 Bus and Jeepney Routes Bus Route Jeepney Route Manila San Fernando San Fernando Angeles Manila Angeles Olongapo - Subic San Fernando Olongapo Manila - Olongapo Manila Balanga Mariveles Manila - Tarlac Manila Cabanatuan San Jose Manila - Malolos Manila - Lucena Source: Different bus and jeepney operators in Region III Air Links In Central Luzon, there are two international airports located in Subic (Subic International Airport) and Clark International Airport. In 2010, Clark serviced six (6) scheduled passenger carriers and handled 607,104 international passengers. 18

22 There are direct flights from countries such as Korea, Singapore, Malaysia, Thailand, Macau, and Hong Kong. Clark is linked by direct flights to Cebu and Caticlan Challenges Limited terminal capacity for future growth The need to accelerate the development of the Clark International Airport becomes more urgent with the NAIA Congestion situation, the entry of Air Asia Philippines, and the rapidly growing and expanding airline fleet by local carriers and international carriers, especially in the Asia Pacific region. By 2030, the Asia- Pacific region is expected to grow by 4.7 percent in GDP, 6.7 percent in passenger traffic (higher than the world average of 5.5 percent), and 5.7 percent in fleet. 2 Both China and India are predicted to explain the growth expected in air travel demand in the next two decades based on a report by Airbus. These two are part of the group of emerging countries known as BRIC (Brazil, Russia, India and China) that account for 69% of world population in 2010, about 5 billion people, again helping to explain the growth we are predicting over the next two decades. The BRIC is expected to contribute 39% of the world economic growth. The Airbus 3 forecast predicts that the greatest demand for passenger aircraft will come from airlines in the United States and the People s Republic of China. Boeing forecasts that China to Southeast Asia (v.v.) passenger market will reach US$322.5 billion of revenue passenger kilometer by 2030, one of the highest market size by that year. The WTO has also forecast that outbound tourist traffic from China will reach 100 million by 2020, from 34 million trips, thus making China the fourth largest visitor- generating market in the world 4. The geographical proximity of ASEAN to large and growing Asian markets, particularly that of China (PRC) and India, and high- expenditure markets, such as the Middle East, Japan, Chinese Taipei and Korea (ROK), could benefit ASEAN destinations that have strong cultural ties or affinities with them or that offer unique products and services that cater specifically to their preferences. For example, the Chinese and the Indian nationals have been known to be fond of shopping. Expansion of fleet and development of LCCs - The rise of low cost carriers (lccs) within ASEAN (Tiger Airways, Air Asia and Cebu Pacific) significantly contributed to the capacity growth in terms of flights and made fares more competitive, to the benefit of regional travel. They now contribute 40 to 50 percent of total intra- ASEAN flights in economies like Philippines and %20Cruise%20at%20CITM07%20_final1_.pdf 19

23 Thailand and are primarily responsible for the growth in ASEAN secondary gateways as in the case of Malaysia, Thailand and Philippines. Airbus expects low cost carriers to continue to increase their global short- haul traffic market share, from 23% today, up to 29% by 2020 and 34% by Regionally, some short- haul markets such as the intra Western Europe or domestic ASEAN for instance are expected to have greater low cost market presence, potentially taking a 60% share of the short- haul market on these flows by Visa One challenge of attracting the China market is the visa requirement. While Clark can facilitate their entry via a visa upon arrival program, there are concerns on securing travel approval by the Chinese travellers from their government. Another visa concern is related to the long and cumbersome renewal process for tourists who are interested to stay longer in the country. Inland transportation network - Some roads, as in the case of the Angeles- Mabalacat road are already congested and increase the travel time and costs of passengers to/from Clark. Moreover, aside from the insufficient access via air transportation, land transportation system is not integrated to enable tourists to move from one tourist site to another. Once inside the Clark Zone, there are no available public transport vehicles that can move the tourists from the zone to the sites outside of Clark. The shuttle services are provided only for travel within the Clark zone. Traveling from province to province or city to city in the Corridor is relatively difficult due to lack of public transport providers. Cruise tourism - The feedback from stakeholders during the consultations for the ASEAN Strategic Tourism Plan was that the Philippines resources could be developed for cruise tourism. The Subic Bay International Port has frequently been mentioned in the roadmap consultations as possessing the potential for cruise tourism. However, stakeholders from the government raised the concern that it would be difficult to bring in the large vessels from Singapore to Subic due to the rough waters between the two destinations. On the other hand, during the discussions, there were questions as to whether it may be feasible to bring in the international and domestic passengers to Subic via Clark International Airport and from Subic they ride cruise ships that will take them across selected sites within the Philippine archipelago. Thus, the Philippines will serve as their port of call rather than just one destination of a cruise tourism loop that originates from Singapore. The number of cruise passengers in the Asia Pacific region is expected to grow by more than 40% from 1.07 million in 2005 to 1.5 million by 2010, reaching 2 million in Southeast Asian cruise passenger volumes alone are growing at an average annual rate of almost 5% and are forecast to reach 820,000 by To date, Singapore remains u.com/asean- plans- to- boost- cruise- tourism/569/ 20

24 to be the major port of call for liners such as the Superstar Gemini and AIDA Cruises. 6 Limited air links - Although Central Luzon has an airport to serve international and domestic markets, limited international and local flights also limit the volume of tourists to the region. Limited number of intermediaries or syndicators - Based on DOT data, there are a total of 112 travel operators in the region, bulk of whom are located in Pampanga and Bulacan. However, there are only very few operators who serve as intermediaries or syndicators for inbound travel and tourism. 2.4 Institutions Table Tour Operators in Central Luzon Number of Tour Province Operators Bataan 0 Bulacan 23 Nueva Ecija 9 Pampanga 67 Tarlac 4 Zambales 9 Total 112 Source: DOT At the core of tourism development is the group of people who will make it happen. The communities of stakeholders from the direct providers of tourism services to the suppliers of tourism products and their indirect linkages make the difference in the quality of tourism experience in any given destination. One objective of this Roadmap is to identify, bring together, and integrate these communities into the tourism value chain in order to make growth truly inclusive. The usual division of stakeholders is the two generic and general grouping - public sector and private sector. However, private sector group has a wide spectrum of tourism players. The mainstream stakeholders are the owners of hotels, resorts and restaurants, the tour operators and travel agents, transport operators, among others. Another group is composed of the communities of people who provide the services in these mainstream activities or facilities the tourism workforce, the schools/training institutions that train them, the suppliers of handicrafts, food and beverage, etc. In some cases, the women are part of seasonal workforce although in some instances (and the areas of Angeles and Olongapo are being monitored for these activities), the women and children are integrated through activities that violate their dignity as players in the tourism industry, as in the case of prostitution and human trafficking. 6 Other active operators include Hapag Lloyd, P&O and Compagnie du Ponant, Cunard and Silversea as cited in 4- u.com/asean- plans- to- boost- cruise- tourism/569/ 21

25 Hence, it is important that certain night watchmen are in place to provide protection to these communities of stakeholders. This is where the role of government becomes more crucial if growth is indeed to become inclusive. The insecurities and ill- effects (i.e. diseases, crime) that can arise from such activities of these women and children can backlash on the bold tourism projections not only for the Corridor but for the Philippines in general. In the Corridor, there are a number of stakeholders national and regional government offices, development councils, local business groups, LGUs, people organizations - in tourism growth and development, largely concentrated in their efforts to maximize the gains through income and jobs. Note that these job and income opportunities, when properly taken advantage of, can reduce the negative impact of tourism on the marginalized sectors like women and children. Nonetheless, there is a need to further protect the women and children against unwanted visitors in the Corridor. A campaign that sends the message that these unwanted visitors are not welcome can communicate the thrust towards sustainability of the Corridor. Still, there should be a champion for these initiatives. To date, there is no single body, except the DOT Region III office that is at the forefront of all of these. But DOT s structure and resources do not allow it to implement these activities. This is where convergence of institutions come into play. Many of the institutional issues on tourism are beyond the mandate of the DOT Region 3 office or even of the SCADC Challenges Mandates - The organizations or bodies directly related to the SCADC are not focused around the key strategic issues facing tourism such as product development, facilitation, research/scanning and futures planning for the entire Corridor. In some cases, there are overlapping mandates and activities (e.g. tourism development in the Regional Development Council, CDC, SBMA, SCADC) that would tend to lessen the effectiveness of the group working process. Tourism Offices The ultimate success of tourism and the activities proposed in this Roadmap rests on the institutionalization and tourism orientation of LGUs. Communities that desire to pursue tourism development and promotions should have institutional and professional tourism officers in their organizations who will drive the preparation of local tourism development plans. These plans are needed to provide directions to local investors and stakeholders and to solicit support for infrastructure funding from the Tourism Coordinating Council, as embodied in the Tourism Act of Protection of women, children, and elderly A major challenge for government and the destinations is the participation of women and children in prostitution and human trafficking activities by unwanted tourists. Value chain integration There is an issue that the benefits of tourism are concentrated only in the Clark and Subic Freeport Zones and that other 22

26 communities are hardly integrated either as suppliers of handicrafts or direct providers of tourist attractions and services. 3 STRATEGIC DIRECTIONS, ACTIONS, ACTIVITIES AND PLANS 3.1 Vision After a long process of consultation and revisions the following mission statement has been approved to guide the development of tourism in the region from 2011 to By 2016, Subic- Clark Corridor will be known as a premier destination for meetings and events, sports, adventure, entertainment, religious, historical, culinary and cultural tourism. The Corridor shall be known as a sustainable tourism destination offering seamless international and local connectivity as well as competitive facilities, products and human resources that will be achieved through public and private investments in infrastructure, institutions, marketing and promotions. 3.2 Targets By 2016, the Corridor shall host least 1 million domestic and international visitors, double the current volume of half a million, with the domestic market accounting for at least 60 percent of total arrivals (based on NTDP projections) Strategic Directions Three strategic directions are proposed in this roadmap. These strategic directions form the basis for establishing competitive and sustainable tourism in the region are the following: Strategic Direction 1: Develop and market competitive destination products Strategic Direction 2: Develop sustainable destination infrastructure programs/projects and increase supply of competitive facilities, services and workforce Strategic Direction 3: Enhance international and domestic connectivity Strategic Direction 4: Build and/or strengthen institutions 3.4 Strategic Actions and Activities Strategic Direction 1: Develop and market competitive destination products The idea is to increase the tourism expenditures in the Corridor through longer days and higher spending per capita. This can only be done with the support of the stakeholders. 23