Trends & Prospects in the

Tourism Industry

A Presentation by:

Undersecretary SIMEON P. MARFORI

Department of Tourism
 Presentation Outline

 World Tourism Statistics

 Philippine Tourism Overview
 General Global Travel Trends
 Tourism Product Trends
 DOT Policy and Thrusts
 Key Strategies
2009 World Tourist Arrivals (in millions)

Source:
UNWTO World Tourism Barometer
Vol . 8 No. 1, January 2010
 Top International Destinations (2009)
Rank Country Volume
1 France 74.2
2 United States 54.9
3 Spain 52.2
4 China 50.9
5 Italy 43.2
6 United Kingdom 28.0
7 Turkey 25.5
8 Germany 24.2
9 Malaysia 23.6
10 Mexico 21.5

Source: UNWTO World Tourism Barometer Interim Update April 2010

World Tourist Receipts (in US $ Billions)

Source:
UNWTO World Tourism Barometer
Vol . 8 No. 1, January 2010
 2009 World Top Earners: Tourism Receipts (in US$ Billion)
(Source: UNWTO World Tourism Barometer, Interim Update, April 2010)

* Philippines (2008) 2.4

10 Austria (2008) 21.8
9 Turkey 21.3
8 Australia 25.6
7 United Kingdom 30.1
6 Germany 34.7

5 China 39.7
4 Italy 40.2

3 France 48.7
2 Spain 53.2

1 United States 94.2

0 20 40 60 80 100
2009 Regional Tourism Receipts (in US$ Billions)
 International Tourist Arrivals by (Sub) Regions (in Millions)
2004 - 2008
Growth World
Rate Inbound
2004 2005 2006 2007 2008 (‘08/’07) Tourist

World 764.4 803.7 847.3 904.2 921.8 1.9%

Europe 424.4 441.6 462.2 487.3 487.9 0.1% 52.9%
Asia and the 144.2 153.6 167.0 181.9 184.1 1.2% 20.0%
Pacific
Southeast Asia 47.1 48.5 53.1 59.7 61.6 3.1% 6.7%

Americas 125.7 133.3 135.8 142.9 147.2 2.9% 16.0%

Africa 33.8 37.3 41.4 45.1 47.0 4.0% 5.1%

Middle East 36.3 37.9 40.9 47.0 55.6 15.5% 6.0%

Source: UNWTO World Tourism Barometer Vol. 7 Np. 2, Vol.6, No. 2; Vol. 4. No.3
 2008 Southeast Asia Tourist Arrivals (by millions)
Source: UNWTO World Tourism Barometer Vol. 7, No. 2, June 2009

Southeast Asia 2008

Malaysia 22,052
Thailand 14,584
Singapore 7,778
Indonesia 6,234
Vietnam 4,236
Philippines 3,139
Cambodia 2,001
Myanmar 193,000
(thousand)

Source:
UNWTO World Tourism Barometer
Vol . 7, No. 2, June 2009
 2004-2008 Visitor Arrivals
to the Philippines
3,500,000

3,091,993 3,139,422

3,000,000 2,843,345
2,623,084
2,500,000
2,291,352

2,000,000

1,500,000

1,000,000

500,000

0
2004
1 2005
2 2006
3 2007
4 2008
5

Average Growth Rate: 10.66%

 Major Tourist Markets in the Philippines, 2008

700,000 25.0%
Arrivals % Share

600,000
20.0%

500,000

15.0%
400,000

300,000
10.0%

200,000

5.0%
100,000

0 0.0%
Korea USA Japan China Australia Taiwan Hong Kong Canada Singapore United Malaysia Germany
Kingdom
Fast Growing Markets in the Philippines
(Arrivals) 2004 - 2008
Importance of Tourism in
the Philippine Economy
Today

• Foreign tourism receipts to GDP

ratio grew from 1.9% in 2003 to
3.4% in 2007

• Foreign tourism receipts to Total

Exports ratio more than doubled
from 3.9% in 2003 to 7.9% in 2007

Source:
Republic of the Philippines
NATIONAL STATISTICAL COORDINATION BOARD
 Importance of Tourism
in the Philippine
Economy Today
• Partly because of investments in
tourism destinations, construction
sector grew by 23.1 % making it a big
factor in the record economic growth
in 2007

• Employs 9.7% of total employment.

Directly employing 3.2 million
Filipinos today.
Top 14 Destinations in The Philippines 2009

1. Cebu
2. Camarines Sur
3. Metro Manila
4. Baguio City
5. Davao City
6. Boracay
7. Cagayan de Oro
8. Zambales
9. Bohol
10. Puerto Princesa City
11. Camiguin
12. Cagayan Valley
13. Negros Oriental
14. Ilocos Norte
Global
Travel
Trends
 Global Travel
Trends
Senior Citizens and Women will travel more..

• Senior citizens and women travelers are fast increasing

in the bulk of the world travelers;

• This has prompted the push for women-friendly

destinations as more female professionals are travelling;

• To attract the aging traveling market, there is a push for

retirement villages or nursery villas;

• Elderly travelers are most attracted to visiting cultural

sites. They are also keen in short holiday breaks.

Source: Newsweek Magazine, May 2010

 Global Travel
Trends
The Modern Chinese Traveler: Rise of Global China

• China is now ranked as the 2nd largest source of tourists

to some destinations in Asia such as Singapore,
Indonesia, Taiwan, Nepal and No. 1 in Vietnam, Macau
and Hong Kong.

• It has overtaken Japan as the leading Asian Market to

Europe with 11 million arrivals in 2008.

• There is a rediscovery of Chinese culture, history as well

as a thirst for Western culture. As China opens up to the
world, the world is also opening to China.

Source: Newsweek Magazine, May 2010

 Global Travel
Trends
Travel has become more “Activity-Based” rather than
“Destination-Based”

 Travelers nowadays are deciding what activities they

want to partake first before choosing a destination.

 Destinations must create unique activities to entice

tourists. This paved the way for the creation of NICHE
MARKETS which particularly lures in a specific kind of
traveler.

 This shift has also required the delivery of custom-

made tours which require the experience to be unique
and personalized.

Source: Newsweek Magazine, May 2010

 Global Travel
Trends
Booming Economies and the development of low-cost
carriers (LCC) makes intra and inter –regional travel
more affordable and accessible

 due to low cost of airfares, people can now afford

to travel frequently

 this has also changed people’s traveling habits

and patterns as they are now more into traveling
multiple short-haul breaks

 LCC’s is also one of the reasons that drive the

growth of Intra-Regional Travel within the Asia –
Pacific Region
Source: Newsweek Magazine, May 2010
 Global Travel
Trends

There is polarization of travel spending

 Though many people can now travel, most are still

under a tight budget. Thus, there is a rise for budget
hotel accommodations. There are also many
international hotel chains that are investing in this
type of accommodations.

Source: Newsweek Magazine, May 2010

Global Tour
Products
Medical Tourism
 Medical Tourism:
• One of the fastest growing tourism
market segments

• Medical Travel today is estimated to be

at the range of $40 to $60 billion, with
an annual growth rate of 20%

• By 2013, it is predicted that medical

tourism is going to be a $188 billion
global business.
 Medical Tourism:
•The Department of Tourism launched a program in 2006
to entice and attract medical tourists into the country.

•In 2007, the Philippines has about 60,000 foreign

patients. This grew to about 100,000 in 2008.

• Since the launch of the Department’s program, medical

revenues have grossed to an estimated $350 million.

•By 2015, the DOT expects the influx of 1 million

patients, generating a total revenue of $3 billion with
200,00 foreign patients arriving annually.
 Medical Tourism:
The Philippines as a preferred Medical Destination:

• Filipino competence and warm hospitality

• Compassion and sensitivity

• Filipinos unique brand of quality care

• Quality of Treatment

• Fluency in English

• Competitive Medical Costs

• Highly Skilled Medical Professionals

 Medical Tourism:
Target Markets:

1. United States – accounts for $ 1.7 trillion of the

$3.3 trillion spent annually for health care
worldwide

o there are over 50 million uninsured Americans

and a large number of underinsured, who are
seeking treatments outside the U.S.

2. Europe – the healthcare infrastructure is not able

to cope up due to the increasing life
expectancy and aging population

3. Canada

4. Australia
 Medical Tourism:
Medical Services Offered in the Philippines:

• Dental & Orthodontics

• Surgery – Angioplasty, Angiogram, Cardiac

• Dialysis & Kidney Transplant

• Orthopaedic Surgeries

• Cosmetic, Reconstructive & Curative

Procedures

• Opthalmology, Lasik and CK procedures

• Executive check-up, MRI , CT-Scan

 Medical Tourism:
QUALITY STANDARDS

LOCAL :

 DOT-ACCREDITATION FOR TERTIARY

HOSPITALS
 DOT-ACCREDITATION FOR AMBULATORY
CLINICS

INTERNATIONAL:

 JOINT COMMISSION INTERNATIONAL (JCI)

JCI-Accredited Hospitals in the Philippines

1. Medical City of Pasig

2. St. Luke’s Medical Center (Quezon City)
3. Chong Hua Hospital (Cebu City)
Adventure Sports Tourism
 AdventureTourism:

“…an outdoor leisure activity that

generally takes places in an
unusual, exotic, remote &
wilderness setting sometimes
involving some form of
unconventional means of
transportation and tending to be
associated with low or high levels
of physical activity.”
 Adventure Tourism:

• According to the Adventure Travel Trade

Association (ATTA), adventure travel is the fastest
growing segment of the leisure travel industry.

• This is due to the fact that people are increasingly

seeking authentic/unique experiences that stretch
the imagination and create potential memories that
last a lifetime.

• It involves a variety of activities ranging from soft

adventure to extreme adventure…e.g. kayaking,
mountaineering, caving, white water rafting, etc.
 AdventureTourism:
• Trends in Adventure Tourism:

 Girlfriend Get-Aways – women

travelling together. More than 50% of
adventure travelers are women,
between the ages of 41 and 60

 Glamping (Glamorous Camping)

 Animal Safaris/ Wildlife Vacation

 Adventure Tourism:
Quality Standards
 DOT – Accreditation of
Mountain Guides
 DOT- Accreditation of
Cave Guides
 Meetings, Incentive Travel,
Conventions and Exhibitions
(M.I.C.E)
 Meetings, Incentives, Conventions
and Exhibitions (M.I.C.E):
• A fast growing travel trend that combines business and
leisure.

• Due to globalization, the business travel market is

foreseen as growing faster than leisure travel. Among
the business travel market, Asian business travelers are
the fastest growing segment.

• Asia is fast becoming a convention hub. This is due to

being a major recipient of direct foreign investments and
the increase of many multi-national corporations in the
region.

• Aside from foreign investments, the many different

exotic culture of Asia is also a primary draw for
Westerners.
 Meetings, Incentives, Conventions
and Exhibitions (M.I.C.E):

• Destination appeal is important when

selecting a convention site.

• M.I.C.E Buyers are increasingly looking for

new destinations and activities.

• Group incentive travel will become more

active with host communities. At times local
immersion is integrated to make the
experience more meaningful
Agri - Tourism
 Agri – Tourism:
“ a form of tourism
which capitalizes on
rural culture as a
destination and
attraction.”
 Agri – Tourism:
• The main appeal of Agri-tourism is its cultural
landscape where a glimpse of how the past
generations lived and worked.

• Typical regional crops and local breeds can

become an attraction to tourists.

• The main benefit of Agri-tourism is the

improvement of rural communities thus also
promoting regional / countryside development.

• Farmers generate additional income by hosting

visitors, educating the public and promoting farm
products.
 Agri – Tourism:

Quality Standards

 DOT – Accreditation for

Agri-Tourism Sites
VolunTourism
 VolunTourism:
• Refer to active, hands-on, volunteer vacations that
address global issues of environmental degration
and poverty alleviation while fostering
understanding between visitors and host
communities.

• One of the growing trends in tourism, with a 30%

participation increase in 2007.

• 6% of all American active travelers took a

volunteer action every year.
 VolunTourism:
• Voluntourism is on the rise in most developed
countries. As their population ages quickly, these have
prompted corporate social responsibilities becoming a
norm.

• There has been increased incentive trips where they

incorporate community activities to enrich participants’
travel experience.

• Among the activities being undertaken are building

houses, cleaning up of polluted areas, immersion with
the local community, feeding, etc.

• Participants of Voluntourism usually consist of

corporate workers, baby boomers and students.
Food Tourism
 Food Tourism:
• A new travel trend that rose from the demand
for new experiences and adventure while
experiencing local culture.

• Trends that drive culinary tourism:

 individualism
 multi-cultures consumer
 well-being/ healthy lifestyle
 desire for new experience and cultural
immersion
 role of celebrity chef and media
 Food Tourism:
THE DEPARTMENT OF TOURISM
LAUNCHED A CULINARY TOURISM
PROGRAM DUBBED AS “KULINARYA” TO
INTRODUCE PHILIPPINE FLAVORS TO
DOMESTIC AND INTERNATIONAL SCENE
AND PROMOTE THE COUNTRY AS A
CULINARY DESTINATION
 DOT Policy &
Program Thrusts
 Pursue the implementation of the
Tourism Act of 2009 or R.A. No. 9593
 Formulate & coordinate the adoption
& implementation of the National
Tourism Development Plan 2011-2016
 Formulate & coordinate the adoption
of guidelines for the preparation of
local tourism development plans
 DOT Policy &
Program Thrusts
 Formulate & coordinate the
guidelines for the mandatory
accreditation of primary tourism
enterprises
 Conduct researches, surveys and
studies on tourism demand and supply
as well as market intelligence on key
tourist markets
 Formulate guidelines on tourism
product development
 Key Strategies
 Transforming the Bureaucracy
- creating a culture of service,
transparency & accoutability
 Public-Private Sector Partnership
- regulation & enforcement as
mandated in R.A. 9593
 Area Clustering
- complementary approach
- creation of tourism circuits
- development of tour products
 Key Strategies

 Capability-Building of Key Players at

the National & Local Levels thru Donor
Partnership
 Development of National Tourism
Database & Knowledge Management
Systems
Thank you…