Philippines Tourism in the economy In 2014 tourism directly contributed PHP 982.3 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 2013. 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 2008. 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
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, 2016. 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 2011-16 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
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
Statistical profile Table 1. Philippines: Domestic, inbound and outbound tourism 2010 2011 2012 2013 2014 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) 3 520 3 917 4 273 4 681 4 833 Same-day visitors (excursionists).......... Top markets Korea 741 925 1 031 1 170 1 175 United States 600 625 653 675 723 Japan 359 375 412 434 464 China 187 243 251 426 395 Australia 147...... 225 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 3 442 4 053 4 963 5 598 5 701 International travel receipts 2 645 3 198 4 061 4 690 4 767 International passenger transport receipts 796 855 902 909 934 Outbound tourism Total international expenditure 5 964 6 055 7 140 8 399 10 437 International travel expenditure 5 487 5 616 6 548 7 833 9 920 International passenger transport expenditure 477 439 592 567 517.. Not available Disclaimer: http://oe.cd/disclaimer Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933321060 368
.. Not available Disclaimer: http://oe.cd/disclaimer Table 2. Philippines: Enterprises and employment in tourism Number of establishments Number of persons employed 2014 2010 2011 2012 2013 2014 Total Tourism industries.. 4 126 000 4 266 000 4 561 000 4 709 000 4 758 000 Accommodation services for visitors Hotels and similar establishments 8 841 1 045 000 1 116 000 1 579 000 1 601 000 1 656 000 Food and beverage serving industry Passenger transport.. 1 902 000 1 870 000 1 675 000 1 746 000 1 693 000 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.. 26 000 30 000 26 000 29 000 30 000 Cultural industry Sports and recreation industry.. 279 000 328 000 338 000 343 000 350 000 Retail trade of country-specific tourism characteristic goods.. 276 000 307 000 300 000 312 000 314 000 Other country-specific tourism industries.. 598 000 615 000 643 000 678 000 714 000 Other industries Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933321070.. Not available Disclaimer: http://oe.cd/disclaimer Table 3. Philippines: Internal tourism consumption Million PHP 2014 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total...... Consumption products 1 468 975 274 566 1 743 541 Tourism characteristic products 962 378 269 633 1 232 011 Accommodation services for visitors 354 767 80 832 435 599 Food and beverage serving services 80 365 60 539 140 904 Passenger transport services 145 082 49 034 194 116 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 95 278 1 991 97 269 Cultural services...... Sports and recreation services 80 674 30 818 111 492 Country-specific tourism characteristic goods...... Country-specific tourism characteristic services 206 212 46 419 252 631 Other consumption products 506 597 4 933 511 530 Tourism connected products...... Non-tourism related consumption products...... Non-consumption products...... Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933321081 369
From: OECD Tourism Trends and Policies 2016 Access the complete publication at: http://dx.doi.org/10.1787/tour-2016-en Please cite this chapter as: OECD (2016), Philippines, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/tour-2016-54-en 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 rights@oecd.org. 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 info@copyright.com or the Centre français d exploitation du droit de copie (CFC) at contact@cfcopies.com.