Philippines. Tourism in the economy. Tourism governance and funding

Transcription

1 Philippines Tourism in the economy In 2014 tourism directly contributed PHP billion (approximately USD 22.1 billion) to the economy of the Philippines, or 7.8% of GDP. The average growth rate in tourism s contribution to GDP during the period 2011 to 2014 was 13.1%. It directly supported 4.8 million jobs, accounting for 12.5% of total employment. The Philippines welcomed 4.8 million international tourists in 2014, a rise of 3.2% compared with Korea, with 1.18 million visitors (24%), is the main source market for the Philippines, followed by the United States (15%), Japan (9.6%) and China (8.2%), which has grown by 241.3% since Tourism governance and funding The Department of Tourism is the primary planning, programming, co-ordinating, implementing and regulatory government agency for tourism in Philippines. It is responsible for the development and promotion of the tourism industry, domestically and internationally, in co-ordination with attached agencies and other government institutions. Dedicated units within the Department are charged with the following responsibilities: Tourism Development includes offices for product development, tourism development planning, research and information management, and industry and manpower development, Tourism Regulation, Co-ordination and Resource Generation includes offices for tourism standards and regulations, tourism co-ordination, tourism resource generation, and all the regional and international offices, Special Concerns and Administration includes the office for special concerns, the legislative liaison unit, and services for financial management, administrative affairs, legal affairs and internal audit. A number of agencies and corporations are under the supervision of the Department for programme and policy co-ordination, while continuing to operate under their respective charters. These include the Philippine Tourism Promotions Board (PTPB), Tourism Infrastructure and Enterprise Zone Authority (TIEZA), Duty Free Philippines Corporation (DFPC), Intramuros Administration (IA), National Parks Development Committee (NPDC), Nayong Pilipino Foundation (NPF), Philippine Retirement Authority (PRA) and Philippine Commission on Sports Scuba Diving (PCSSD). The Department of Tourism operates a network of regional offices around the country, which implement rules and regulations on the accreditation of tourism enterprises, co-ordinate with local government on tourism development and promotion and marketing, collect data, provide training and information, and assist tourists and tourism enterprises. 365

2 The Department also operates offices in foreign countries to promote Philippines as a tourism destination and network with travel agents to sell Philippine destinations and products. The Department of Tourism sources its fund for the development of tourism from the Annual General Appropriations Act, which is approved by the Legislative body. Funding for tourism promotion is sourced from the corporate funds of the Tourism Promotions Board, while infrastructure development is sourced from the corporate funds of the Tourism Infrastructure and Enterprise Zone Authority. Philippines: Organisational chart of tourism bodies Department of Tourism Philippine Tourism Promotion Board Tourism Infrastructure and Enterprise Zone Authority Duty Free Philippines Corporation Intramuros Administration National Parks Development Committee Tourism Services and Regional Operations Tourism planning and Promotions Nayong Pilipino Foundation Philippine Retirement Authority Tourism Standards Regional Offices (16) Tourism Planning and Information Management Marketing Communications Overseas Offices (17) International Tourism Promotions Philippine Commission on Sports Scuba Diving Source: OECD, adapted from the Department of Tourism, Tourism policies and programmes The Philippines has a number of tourism strengths and advantages, including incredible natural and cultural resources, proximity to the world s fastest growing markets, and a warm, friendly and hospitable people with proficiency in English. There are also a number of challenges, including limited international and domestic market access and connectivity, uncompetitive tourist destinations and products, and weak public sector tourism governance and human resource development policies. The National Tourism Development Plan provides a framework for the development of tourism in the Philippines as a major contributor to socio-economic development. The Plan aims to make the Philippines the must-experience destination in Asia. The long term goal is to develop environmentally and socially responsible tourism that delivers more widely distributed income and employment opportunities. 366

3 The Plan s strategic directions and related objectives are as follows: Develop and market competitive tourist product and destinations, Develop a diversified product portfolio in priority destinations and strengthened road/ sea tourism circuit framework, Raise facility and service standards, facilitate tourism investment (especially in accommodation) and lower business costs, Safeguard natural and cultural heritage and vulnerable groups, Implement public-private partnership-based marketing strategy and action plan. Improve market access, connectivity and destination infrastructure: Rapidly expand capacity of secondary international airports to priority destinations, Expand international air connectivity between priority gateway destinations and key growth markets, Implement a strategic access infrastructure programme between international airports and the cluster destinations, Implement a tourism destination infrastructure programme. Improve tourism institutions, governance and human resource capacities: Institutionalise roles and responsibilities of the Department of Tourism and Local Government Units, Develop a competent, motivated and productive tourism workforce, Improve governance in the area of safety, security and tourist assistance. A number of priority areas for action have been identified. These include: Investment Barriers the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is identifying priority Tourism Enterprise Zones (TEZs) where investors would receive tax and other incentives. However, in 2015 the TEZ has not yet been implemented because the Bureau of Internal Revenue s (BIR) inability to issue the revenue regulations pertaining to the operations of the TEZs. Infrastructure infrastructure projects include roads leading to tourist destinations and on-site facilities. Tourism roads are being constructed and developed by the Department of Public Works and Highways in tourism destination areas. Connectivity there is limited airport capacity for international airports in the Philippines. As of 2015, the Government is expanding the international airports to attract more routes and traffic in and out of the Philippines. 367

4 Statistical profile Table 1. Philippines: Domestic, inbound and outbound tourism TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips Overnight visitors (tourists) Same-day visitors (excursionists) Nights in all types of accommodation Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Inbound tourism Total international arrivals Overnight visitors (tourists) Same-day visitors (excursionists) Top markets Korea United States Japan China Australia Nights in all types of accommodation Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Outbound tourism Total international departures Overnight visitors (tourists) Same-day visitors (excursionists) Top destinations TOURISM RECEIPTS AND EXPENDITURE, MILLION USD Inbound tourism Total international receipts International travel receipts International passenger transport receipts Outbound tourism Total international expenditure International travel expenditure International passenger transport expenditure Not available Disclaimer: Source: OECD Tourism Statistics (Database)

5 .. Not available Disclaimer: Table 2. Philippines: Enterprises and employment in tourism Number of establishments Number of persons employed Total Tourism industries Accommodation services for visitors Hotels and similar establishments Food and beverage serving industry Passenger transport Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries Source: OECD Tourism Statistics (Database) Not available Disclaimer: Table 3. Philippines: Internal tourism consumption Million PHP 2014 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total Consumption products Tourism characteristic products Accommodation services for visitors Food and beverage serving services Passenger transport services Air passenger transport services Railways passenger transport services Road passenger transport services Water passenger transport services Passenger transport supporting services Transport equipment rental services Travel agencies and other reservation services industry Cultural services Sports and recreation services Country-specific tourism characteristic goods Country-specific tourism characteristic services Other consumption products Tourism connected products Non-tourism related consumption products Non-consumption products Source: OECD Tourism Statistics (Database)

6 From: OECD Tourism Trends and Policies 2016 Access the complete publication at: Please cite this chapter as: OECD (2016), Philippines, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at or the Centre français d exploitation du droit de copie (CFC) at contact@cfcopies.com.