Introduction. Market Opportunity

Transcription

1 Introduction The Philippines is one of the most amazing and fascinating tourist destinations due to its varied charms which enthralls tourists from all over the world. It offers a wide array of entertainment to cast a spell on its visitors with its beautiful scenic islands, exotic beaches, amazing volcanoes, world-class diving spots and unique wildlife and many other attractions. The most popular tourist destinations in the Philippines are Manila, Bohol, Tagaytay, Ilocos, Baguio, Cebu, Bataan, Bicol, Boracay, Palawan and Davao. In an effort to support the further development of the tourism industry in the country, the Tourism Act of 2009 (Republic Act 9593) was enacted on 12 May 2009 declaring a national policy for tourism as an engine of investment, employment, growth and national development. The law does not only redefine institutional mandates and reorganize the institutional landscape of government s tourism development efforts, but it also places a strong emphasis on tourism enterprises and investment promotion. Philippine tourism industry is growing which means more investments are needed to sustain its growth. Increase in Number of Foreign Tourists Top ten markets by volume for 2010 Market Opportunity Country Jan-Dec Percentage 2010 Share Korea 740, % USA 600, % Japan 358, % China 187, % Australia 147, % Taiwan 142, % Hong Kong 133, % Singapore 121, % Canada 106, % United Kingdom 96, % 800, , , , , , , ,000 0 Korea Top 10 Markets by Volume USA Japan China Australia Taiwan Hongkong Singapore Canada United Kingdom Visitor Arrivals, 2010/2009 Months 2010 Mo. Total 2009 Mo. Total Jan 298, ,992 Feb 269, ,198 Mar 308, ,455 Apr 277, ,421 May 283, ,060 Jun 276, ,450 Jul 325, ,489 Aug 291, ,724 Sep 247, ,822 Oct 267, ,625 Nov 281, ,731 Dec 393, ,132 Total 3,520,471 3,017, , , , , ,000 0 Jan Feb Visitor Arrivals, 2010/2009 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Board of Investments 1

2 Philippine Advantage Natural Resources The Philippines is an archipelago blessed with many natural resources, a rich history and a unique culture. Its attractions are as many as they are diverse beaches of white sand, lush green forests, majestic mountain peaks, age-old structures, modern cities, rustic landscapes and many other attractions. Comparative Advantage rich natural and cultural tourism resources government commitment to promote investments in tourism by relaxing investment regulations and providing incentives government support for tourism by heavy investments in infrastructure development called Asia s Beach Capital due to its abundance of natural hideaways accessible via several international flights and cruises availability of highly qualified manpower for tourism accessibility from and to major international cities Philippine Advantage Support Infrastructure Major Airports Existing - Diosdado Macapagal (Clark) International Airport - Francisco Bangoy (Davao) International Airport - General Santos (Tambler) International Airport - Kalibo International Airport - Laoag International Airport - Mactan-Cebu International Airport - Ninoy Aquino (Manila) International Airport - Puerto Princesa International Airport - Subic Bay International Airport - Zamboanga International Airport - Iloilo International Airport - Laguindingan (Misamis Oriental) International Airport Under construction - Legazpi (Bicol) International Airport - Panglao Island (Bohol) International Airport - Alaminos (Pangasinan) Airport - Dalupiri (Samar) Airport - Kabangkalan City (Negros Occidental) Domestic Airport - San Carlos City (Negros Occidental) Airport Newly-constructed roads - SCTEX (Subic-Clark-Tarlac Expressway) - NLEX (North Luzon Expressway) - STAR Tollway or CALABARZON Expressway Board of Investments 2

3 Human resources Hotel Personnel Average Monthly Payroll Resident Manager P100, Front Office Supervisor 20, Accountants 20, Housekeeping Supervisor 20, Front Office Staff 10, Housekeeping Staff 10, Handyman 10, Security Guards 20, Industry Potential Inbound Arrivals 3.52 million 3.02 million Visitor Receipts US$2.49 billion US$2.23 billion Per Capita Expenditure of Tourist US$ Economic Contribution For the past five years ( ), the average share of tourism to GDP is 6.12% and 9.68% to national employment. Market Opportunities Projected Growth of Tourists Arrivals Year Medium Growth Rate High Growth Rate ,328, % 3,526, % ,498, % 3,823, % Investment Opportunities Areas for Investments under the 2010 Investment Priorities Plan in pursuant to R.A. 9593, otherwise known as The Tourism Act of 2009 Tourism Enterprises outside the Tourism Enterprise Zones (TEZs) engaged in the following: - Tour operations; - Tourist transport services whether for land, sea and air transport for tourist use; - Establishment and operation of: - Accommodation establishments such as but not limited to hotels, resorts, apartment hotels, tourist inns, motels, pension houses, private homes for homestay, ecolodges, condotels, serviced apartments and bed and breakfast facilities; - Convention and exhibition facilities or meetings, incentives, convention and exhibition (MICE) facilities; - Amusement parks; - Adventure and ecotourism facilities; - Sports facilities and recreational centers; - Theme parks; - Health and wellness facilities such as but not limited to spas, tertiary hospitals, and ambulatory clinics; - Agri-tourism farms and facilities; and - Tourism training centers and institutes Board of Investments 3

4 Potential Sites for New Hotels and Resorts Region IV - CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon provinces) - MIMAROPA (Mindoro, Marinduque, Romblon and Palawan) Region VI - Boracay The palm-studded island of Boracay prides itself of its white, talcum-fine beach, balmy weather, and warm crystalline waters. It is an anchor tourist destination and one of the more than 7,000 islands that make up the Philippine archipelago. - Guimaras Island Guimaras is an island province located in the Western Visayas region (Panay Gulf, between the islands of Panay and Negros). The island is a favored destination because of its picturesque beaches, waterfalls, springs, off-shore islets and its famous mango, which is considered as one of the sweetest in the world. - Iloilo Iloilo is in the central part of the Philippine archipelago and it stands as the gateway to Southern Philippines. The Province takes pride in being the "Food basket and Rice granary of Western Visayas." Enabling Laws/Policies Tourism Act of (R.A. 9593) was enacted on 12 May The law declares "a national policy for tourism as an engine of investment, employment, growth and national development, and strengthens the Department of Tourism (DOT) and its attached agencies to effectively and efficiently implement said policy. Foreign Investments Act of Domestic market is open to foreign investors as long as the activity is not restricted in the Foreign Investment Negative List - Ownership of private lands (up to 40% foreign equity) - Tourist transport operation (up to 40% foreign equity) Leasing of Private Lands - Foreign companies are allowed for a period of 50 years and renewable for another 25 years E.O. 63 and E.O Development of international tourism through infusion of capital by foreign investors - Disposition of government tourist-related assets for management of the private sector - Grant of benefits and incentives to attract foreign investments in tourism DOT Accreditation - A certification issued by the DOT to a tourism establishment for having complied with the Department s minimum standards in the operation of the establishment concerned which shall ensure the safety, comfort and convenience of the tourists. Valid for a period of one year, unless sooner revoked by the DOT Board of Investments 4

5 Incentives BOI Income tax holiday (4 6 years) Duty-free importation of capital equipment, spare parts and accessories under Executive Order No. 528 Unrestricted use of consigned equipment Employment of foreign nationals Additional deduction for labor expense DOT-Tourism Infrastructure and Enterprise Zone Authority (TIEZA) * Income tax holiday (6 years) Gross income taxation Tax and duty free importation of capital investment and equipment Tax and duty free importation of transportation and spare parts Goods and services incentive Social responsibility incentive Employment of foreign nationals Special Investor s Resident Visa Foreign currency transactions - Repatriation of investment - Remittance of foreign exchange - Foreign loans and contracts In addition to incentives enumerated above, LGUs have their own locally legislated investment codes that offer attractive incentives to investors who wish to invest in tourism industry within their administrative jurisdiction. * For tourism project/enterprise locating inside a Tourism Enterprise Zone (TEZ) Contacts Board of Investments (BOI) Assistant Secretary Felicitas Agoncillo-Reyes Investments Promotion Group 385 Sen. Gil J. Puyat Avenue, Makati City 1200 Tel. No. (+632) Fax No. (+632) Address: FAgoncilloReyes@boi.gov.ph Website: Department of Tourism (DOT) Undersecretary Ma. Victoria V. Jasmin DOT Building - Rizal Park, T. M. Kalaw, Manila Tel. Number: (632) Fax Number: Website: Tourism, Infrastructure and Enterprise Zone Authority (TIEZA) Mr. Mark Lapid Chief Operating Officer DOT Building, T.M. Kalaw Street Teodoro F. Valencia Circle, Ermita Manila Tel. Number: (632) Fax Number: Website: Board of Investments 5

6 Annex Accommodation Establishments in Major Destinations, Available Rooms and Employment (as of April 2011) Number of Establishments Total Rooms Total Employment Albay 120 2,069 1,189 Bohol 297 3,901 3,134 Boracay Island 334 6,984 5,673 Camarines Sur 188 3,282 1,704 Cebu ,009 13,182 Metro Manila ,004 16,082 Palawan 345 4,140 3,397 Sorsogon Tagaytay 101 1,970 1,337 Total 2,343 65,052 46,048 Accommodation Establishments in Major Destinations, Available Rooms and Employment (As of May 2010) No. of Establishments No. of Rooms Total Employment Albay 120 2,069 1,189 Bohol 297 3,901 3,134 Boracay Island 334 6,984 5,673 Camarines Sur 188 3,282 1,704 Cebu ,009 13,182 Metro Manila ,004 16,082 Palawan 345 4,140 3,397 Sorsogon Tagaytay 101 1,970 1,337 Total 2,343 65,052 46,048 Available Hotel Rooms in Metro Manila Hotel Classification Number of Hotels Average Number of Rooms De luxe ,199 7,719 First class 8 8 1,815 1,827 Standard ,208 4,034 Economy Total ,971 14,318 Available Hotel Rooms Outside Metro Manila No. of Hotels No. of Rooms De luxe First class 1,320 1,884 Standard 2,384 3,452 Economy 904 1,189 Total 4,610 7,039 Board of Investments 6