UPDATES ON THE NATIONAL TOURISM DEVELOPMENT PLAN

UPDATES ON THE NATIONAL TOURISM DEVELOPMENT PLAN

International KEY PERFORMANCE Visitor INDICATORS Arrivals INTERNATIONAL VISITOR ARRIVALS 2012 Korea USA Japan China Taiwan Australia Singapore Canada Hong Kong Malaysia UK Germany Arrivals by Markets 2012 2011 0 500 1,000 1,500 Visitor arrivals In thousands Growth Rate 11.5% 4.5% 9.9% 3.1% 19.1% 12.0% 7.6% 5.3% 5.9% 23.8% 8.4% 9.5% Arrivals by Year 4,600,000 4.3 M 4,200,000 3.9 M 3,800,000 3.5 M 3,400,000 3,000,000 2010 2011 2012 Projected Arrivals 10,000,000 8,000,000 6,000,000 5.6 M 4,000,000 2,000,000 0 2011 2012 2013 2014 2015 2016

2013 INTERNATIONAL VISITOR TOURIST ARRIVALS JANUARY - NOVEMBER RANK COUNTRY JAN NOV 2013 GROWTH RATE 1 KOREA 1,069,349 15.97% 2 USA 604,080 2.92% 3 CHINA 397,349 70.41% 4 JAPAN 393,166 4.77% 5 AUSTRALIA 183,165 12.19% 6 SINGAPORE 158,739 18.32% 7 TAIWAN 130,855-35.67% 8 HONGKONG 116,530 7.78% 9 CANADA 112,553 5.20% 10 UNITED KINGDOM 106,667 7.37% 11 MALAYSIA 99,477-3.64% 12 GERMANY 62,702 6.22% 13 OTHERS 794,025 8.10% GRAND TOTAL INCLUDING OTHERS 4,228,657 10.36% Source: A/D Cards and Shipping Manifests

INTERNATIONAL VISITOR ARRIVALS AVERAGE LENGTH OF STAY (IN NIGHTS) 10.00 9.50 9.00 8.50 8.00 7.50 7.00 9.40 9.61 8.83 8.01 8.04 2008 2009 2010 2011 2012

INTERNATIONAL VISITOR ARRIVALS VISITOR EXPENDITURE (IN US$) 1,000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 893.6 738.7 629.4 668.9 672.3 74.9 75.8 83.9 91.9 93.0 2008 2009 2010 2011 2012 Average Daily Expenditure Tourist Per Capital

INTERNATIONAL VISITOR ARRIVALS VISITOR RECEIPTS (IN US$ MILLION) 12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 CAGR = 5.2% 2,994.0 3,817.8 2,428.7 2,236.0 2,490.2 CAGR = 29.6% 4,864.0 6,391.4 8,297.7 10,774.6 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016

INTERNATIONAL VISITOR ARRIVALS DOMESTIC TRAVELLERS, 2012 Top Overnight Destinations (Partial as of June 2012) Metro Manila Boracay Island Cebu City Lapu Lapu City Puerto Princesa City Baguio City Albay Batangas Cagayan de Oro City Davao City Bohol Iloilo City Clark Negros Oriental Domestic Foreign 0.0 175.0 350.0 525.0 700.0 TOTAL 974,397 19.6% 702,798 14.1% 613,279 12.3% 396,289 8.0% 359,320 7.2% 338,992 6.8% 290,845 5.9% 281,243 5.7% 200,295 4.0% 184,362 3.7% 171,823 3.5% 152,377 3.1% 151,454 3.0% 150,067 3.0% Domestic Travellers by Year 45,000,000 40.7 M* 40,000,000 CAGR = 6.1% 35,000,000 30,000,000 25,000,000 20,000,000 2008 2009 2010 2011 2012 * Estimate Projected Domestic Travellers 60,000,000 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 CAGR = 10.6% 44.1 M 2011 2012 2013 2014 2015 2016

NTDP 2011 2016 STRATEGIC DIRECTIONS 1. Develop and market competitive tourist products and destinations 2. Improve market access, connectivity and destination infrastructure 3. Improve institutional governance and human resources

PRODUCT - MARKET DEVELOPMENT Nature Tourism Cultural Tourism Sun and Beach Tourism Leisure and Entertainment Tourism Portfolio MICE & Events Tourism Health,Wellness, and Retirement Tourism Cruise and Nautical Tourism Diving & Marine Sports Tourism Education Tourism

NEW MARKETS PRESENT PRODUCT MARKET STRATEGIES PRESENT NEW Market Penetration Product Development Aggressive promotion strategies targeted to Japan, South Korea, USA, China to increase the number of overnight visitors. Main Strategy Quality improvement strategies that seek to increase daily tourist expenditure through higher quality tourist products and services. Market Development Aggressive promotion strategies targeted to Australia, Singapore, Malaysia, Canada market to increase the number of overnight visitors. Niche Strategy Diversification Product development and diversification strategies to increase the average tourist length of stay. Secondary Strategy

NTDP 2011-2016 STRATEGIC DIRECTIONS 1. Develop and market competitive tourist products and destinations 2. Improve market access, connectivity and destination infrastructure 3. Improve institutional governance and human resources

INTERNATIONAL TOURISM ROAD INFRASTRUCTURE VISITOR ARRIVALS PROGRAM (DOT - DPWH CONVERGENCE PROGRAM) In Billion Pesos 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 12,000 7,920 1,390 2011 2012 2013 Developed the Tourism Road Infrastructure Project (TRIP) Prioritization Criteria Endorsed for approval by the Tourism Coordinating Council 167 road projects with total of 598 kms worth P 12 Bil for FY 2013 Budget Organized capacity building for CTWG and RTWGs

INTERNATIONAL ARRIVAL TARGETS BY GATEWAY Gateway International Arrival Targets Million Arrivals 2012 % Share 2016 % Share NAIA 3.4 79.24% 6.1 64.21% CIA 0.16 3.73% 1.2 12.63% MCIA 0.4 9.32% 0.75 7.89% PPA 0 0.00% 0.3 3.16% IIA 0.006 0.14% 0.25 2.63% KIA 0.28 6.53% 0.6 6.32% DIA 0.045 1.05% 0.3 3.16% Total 4.291 100.00% 9.5 100.00% Source: International airport and accommodation capacity throughputs 2012 and 2016 assuming expected increases in accommodation capacity and improvements at existing international gateways.

INTERNATIONAL PASSENGER TRAFFIC VISITOR IN MANILA ARRIVALS AND SECONDARY GATEWAYS (2008 2012) 11,197,798 11,351,998 12,484,629 13,269,640 14,139,935 1,239,041 1,340,502 1,691,097 2,142,147 3,296,516 2008 2009 2010 2011 2012 Manila Passenger traffic in secondary gateways experienced a growth of 8.18%, 26.15%, 26.67% and 53.89% respectively during the past 5 years Passenger traffic in Manila grew only by 1.37%, 9.97%, 6.28% and 6.56% respectively during the past 5 years Secondary Gateways Source: Civil Aeronautics Board CAAP

AIR SEAT ENTITLEMENTS AND UTILIZATION 2012 MARKETS SEAT ENTITLEMENTS PH FOREIGN Korea 1,482,000 1,482,000 Japan 1,856,400 1,856,400 China 702,000 702,000 Taiwan 522,600 522,600 Australia 312,000 208,000 Singapore 2,280,044 2,280,044 Hong Kong 1,367,600 1,367,600 Canada 109,200 109,200 Malaysia 354,640 354,640 United Kingdom 218,400 218,400 Germany 109,200 109,200 India 109,200 109,200 Indonesia 156,000 156,000 Thailand 355,680 355,680 Vietnam 312,000 312,000 TOTAL 10,246,964 10,042,964 ENTITLEMENT UTILIZATION PH % FOREIGN % 1,177,800 79.47% 1,339,624 90.39% 533,624 28.75% 247,520 13.33% 617,760 88.00% 182,936 26.06% 239,358 45.80% 178,204 34.10% 250,068 80.15% 95,368 45.85% 882,544 38.71% 721,136 31.63% 958,880 70.11% 897,468 65.62% 109,200 100.00% 0 0.00% 355,680 100.29% 346,840 97.80% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 99,112 90.76% 0 0.00% 147,368 94.47% 0 0.00% 313,976 88.27% 158,600 44.59% 122,304 39.20% 0 0.00% 5,807,674 56.68% 4,167,696 41.50%

AIRCRAFT DELIVERIES ESTIMATED AIRCRAFT DELIVERY OF PHILIPPINE AIR CARRIERS January 2013 March 2014 AIRBUS 320 14 AIRBUS 321 7 AIRBUS 330 10 BOEING 777 2

PPA Recommended Ports of Call Luzon 1. South Harbor, Manila 2. Poro Point, San Fernando City 3. Batangas Port, Batangas City 4. Subic Bay Freeport, Zambales Visayas 5. Cagban Jetty Port, Boracay 6. Cebu Port, Cebu City 7. Iloilo Port, Iloilo City 8. Catagbacan Port, Bohol Palawan 9. Coron Port 10. El Nido Port 11. Puerto Princesa Port Mindanao 12. Davao Port 13. Cagayan de Oro Port 14. Siargao Port, Surigao del Norte Cagban Jetty Port

INTERNATIONAL VISITOR ARRIVALS SUPPLY OF ACCOMMODATION Projected Supply of Accommodation Units by Region - 2016 Region Northern Philippines Central Philippines Southern Philippines Existing 2012 In the Pipeline Total Planned Expansion Total to 2016 Initial Target for 2016 % Variance 71,803 8,215 80,018 3,311 83,329 71,831 16.0% 61,978 5,129 67,107 5,146 72,253 74,551-3.1% 28,622 1,686 30,308 2,061 32,369 17,506 84.9% Total 162,403 15,030 177,433 10,518 187,951 163,888 14.7% Except in the Central Philippines, total accommodation capacities will already exceed the required capacities for 2016; The gateway TDAs have sufficient capacity to handle up to 8 million international arrivals likely to require commercial accommodation by 2016; The challenge will be to expand resort and hotel capacity in Central Philippines by 2,298 units and match supply with demand especially in the gateway TDAs. Source: DOT Accommodation Survey Sept. 2012 + Pipeline Projects + Original NTDP Projections.

STRATEGIC DIRECTIONS 1. Develop and market competitive tourist products and destinations 2. Improve market access, connectivity and destination infrastructure 3. Improve institutional governance and human resources

PROGRAMS Improve the Philippines ranking in the WEF Travel and Tourism Competitive Index Reduce business cost and improve compliance Implement Hotel and Resort Quality Assurance and Accreditation System (HRQAAS) Train 5,000 tourism workers Certify 500 tourism professionals under the ASEAN MRA

IMPROVING COMPETITIVENESS IN TOURISM Output 1: Regulatory Impact Assessment (RIA) Program Output 2: Implementation of the Hotel and Resorts Quality Assurance and Accreditation System Output 3: Tourism Industry Skills Development Program

TRAVEL AND TOURISM COMPETITIVENESS 2013 Headline 1. Switzerland 2. Germany 3. Austria 138. Burundi 139. Chad 140. Haiti PHILIPPINES Source: World Economic Forum 1. Singapore 2. Australia 24. Pakistan 25. Bangladesh Strengths Natural Resources PHILIPPINES Price Competitiveness Visa Regulation Air Services Agreement Weaknesses Protection of Foreign Investments Starting Up a Business Safety and Security Health and Hygiene PH as most improved country in Asia and the Pacific Transport and ICT Infrastructure

INTERNATIONAL ECONOMIC IMPACT VISITOR PROJECTION ARRIVALS 2012-2016 INDICATORS 2012 2013 2014 2015 2016 Gross Domestic Product Total Visitor Receipts (Pesos bil) 1,308.0 1,504.0 1,679.1 1,957.5 2,307.1 Tourism GVA (Pesos bil) 650.8 748.3 835.4 974.0 1,147.9 Share to GDP (%) 6.2 6.7 7.0 7.8 8.7 Employment Tourism employment (mil) 4.2 4.9 5.4 6.3 7.4 Share to National Employment (%) 11.6 13.0 14.2 16.2 18.8

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