Philippine Tourism:

Breaking Through

Presented during the First UNWTO and PATA Tourism Trends and Research Conference
29 29 June – 01 July 2007, Guilin, China
Philippine Global Strategy
 Accelerate demand in existing core markets
such as China, Japan, Korea and Filipino Americans

 Increase investment and focus promotion programs in

strategic markets such as Australia, Russia, Germany
and US/ Canada

 Reinvigorate marketing efforts in traditional sources

such as, UK, Italy, Spain and France
 Visitor Arrivals to the Philippines
(In Million) 1994 - 2006
2.9 Arrivals
2.8
2.7
2.62
2.5
2.29
Trend
2.3 2.22
2.17
2.1
2.04 2.14
1.99 1.93
1.9
1.9
1.76 1.8
1.7
1.57
1.5
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Growth Rate 14.7% 11.8% 16.4% 8.5% (3.3%) 1.0% (8.2%) (9.8%) 7.6% (1.3%) 20.1% 14.5% 8.4%

 Arrivals grew by 8 percent in 2006 to reach 2.84 million

 Visitor volume increase at an average of 4.9 percent per annum
 Tourist inflow since 2004 remain way above the growth rate projected by the
UNWTO for the Asia and the Pacific region at 7 percent
 Major Markets, January – April 2007
Rank Country 2007 2006 Growth Rate (%) % Share

1 Korea 213,094 183,883 15.9 20.6

2 USA 207,423 202,880 2.2 20.1
3 Japan 137,447 150,170 -8.5 13.3
4 China 49,133 43,511 12.9 4.8
5 Hong Kong 37,453 32,726 14.4 3.6
6 Taiwan 37,380 39,308 -4.9 3.6
7 Australia 36,300 33,567 8.1 3.5
8 Canada 31,483 28,410 10.8 3.0
9 Singapore 30,027 23,763 26.4 2.9
10 United Kingdom 25,695 23,456 9.5 2.5
 Hotel Occupancy, 2006
77.50%

70.00%

62.50%

55.00%

47.50%

40.00%
2001

De Luxe First Class Standard Economy

 Hotels in Manila have reached more than 70 percent occupancy rate

 First Class and De Luxe hotels experienced robust business growth never
achieved in the last five years.

 Investments in new accommodation facilities are in the pipeline from major

international chains such as Intercontinental, Banyan Tree and Ritz Carlton
 International Flights to the
Philippines, October 2006
Major Frequency Seat
Markets per week Capacity per  There are 556 weekly flights to
week
the Philippines with 142,354
USA 37 13,986
available seats
Korea 58 13,783
Japan 56 17,599  Hong Kong accounts for the
China 24 3,711
lions share followed by
Taiwan 41 9,047
Singapore, Korea and Japan
Hong Kong 97 26,645
Australia 10 2,788
Singapore 75 16,727  Long haul traffic from Europe
Canada 4 1,080 accounted for 3 percent share
Europe 14 4,018
 Load Factor of Major Airlines
 Major airlines such as Japan Airlines, Air China and Cathay Pacific Airways are
experiencing more than 70 percent load factor to the Philippines.

 Korean Air and Asiana have reached 90 percent load factor

 Expansion in air services are continually being negotiated

120%

89% 88% 86%

90% 81% 81%
76% 72% 70%

60%

30%

0%
Korean Air Asiana China Cathay Cebu Pacific Japan Singapore China
Airlines Pacific Airline Airline Southern
Airways
 Visitor Profile and Travel
Characteristics, 2006
• Mode of travel • Purpose of Visit

– Air - 98.73 % – Holiday - 46.99 %

– Sea - 1.40 % – VFR - 26.66 %
– Business - 13.18 %
• Sex – Convention - 1.28 %
– Male - 61.22 % – Official Mission - 0.11 %
– Female - 37.40 %
• Frequency of Visit
• Ave. Age (Years)- 38.26
– Repeat visit - 51.30 %
– First visit - 31.27 %
 Visitor Profile and Travel
Characteristics, 2006
Average Daily Expenditure - US$ 87.83
Major Items of Expenditure - US$
• Accommodation - 29.17 • Shopping - 22.14
• Food and Bev. - 24.99 • Miscellaneous - 1.09
• Entertainment - 6.18 • Local Transport - 3.87
• Guided Tour - 0.37

Travel Arrangement Length of Stay (In Nights)

• Independent - 61.67 % • Overall - 12.03

• Package Tour - 18.56 % • Foreign Visitors - 8.97
• Not stated - 19.76 % • Overseas Filipinos - 60.25
 Visitor Receipts, 1994 - 2006
3,000 2,831
2,700
2,553
2,454 2,412
2,500 2,283 2,236
2,133
1,990
2,000
1,722 1,740
1,522
1,500

1,000

500

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Growth 7.6% 7.4% 10.0% 4.8% -14.8% 5.8% -16.4% -19.3% 1.0% -12.5% 30.7% 12.3%
Rate
 OUTBOUND PHILIPPINE RESIDENTS BY
NATIONALITY, 2001-2005

FOREIGN NATIONALS
GROWTH
PHILIPPINE
YEAR SUB- TOTAL RATE
NATIONALS
AMERICAN BRITISH CHINESE INDIAN JAPANESE SPANISH OTHERS TOTAL %

2001 1,765,737 1,732 481 14,272 1,316 492 79 3,048 21,420 1,787,157 7.01

2002 1,942,316 1,956 659 17.809 1,570 552 101 3,591 26,238 1,968,554 10.15

2003 1,780,454 2,074 693 13,538 1,709 666 125 3,754 22,559 1,803,013 -8.41

2004 1,902,877 1,520 550 11,028 968 386 133 2,483 17,068 1,919,945 6.49

2005 2,127,103 1,403 431 11,102 977 355 95 2,205 16,568 2,143,671 11.65
 OUTBOUND PHILIPPINE RESIDENTS BY
NATIONALITY, JANUARY – APRIL 2006
FOREIGN NATIONALS
GROWTH
PHILIPPINE 2006 2005
MONTH SUB- RATE
NATIONALS TOTAL TOTAL TOTAL (%)
AMERICAN BRITISH CHINESE INDIAN JAPANESE SPANISH OTHERS

Jan 220,273 119 46 1,265 164 31 6 235 1,866 222,139 186,291 19.24

Feb 201,847 148 37 1,239 129 33 9 214 1,809 203,656 162,212 25.55

Mar 224,475 205 49 1,679 210 35 19 305 2,502 226,977 195,168 16.30

Apr 268,602 301 82 2,273 249 56 22 404 3,387 271,989 155,073 75.39

TOTAL 915,197 773 214 6,456 752 155 56 1,158 9,564 924,761 698,744 32.35
OUTBOUND PHILIPPINE RESIDENTS BY
PURPOSE OF TRAVEL, 2001-2005
2001 2002 2003 2004 2005
HOLIDAY 405,795 481,153 379,472 488,291 554,778
BUSINESS 121,729 130,639 118,251 118,169 144,388
OFFICIAL 966 956 1,012 877 936
EMPLOYMENT 177,057 207,188 200,389 109,634 89,373
CONVENTION 33,259 38,079 32,518 35,813 35,494
VISIT FRIENDS/
279,282 293,083 268,428 314,390 360,908
RELATIVES
INCENTIVES 399 249 240 369 335
OTHERS 236,410 231,707 221,045 256,967 294,042
NOT STATED 532,260 585,500 581,658 595,435 663,417

TOTAL 1,787,157 1,968,554 1,803,013 1,919,945 2,143,671

GROWTH RATE 7.01% 10.15% -8.41% 6.49% 11.65%
 OUTBOUND PHILIPPINE RESIDENTS BY
PURPOSE OF TRAVEL, JANUARY-APRIL 2006
TOTAL TOTAL GROWTH
JANUARY FEBRUARY MARCH APRIL JAN-APR JAN-APR RATE
2006 2005 2006/2005

HOLIDAY 56,036 45,182 53,855 84,202 239,275 162,804 46.97%

BUSINESS 12,712 13,743 14,668 13,288 54,411 41,001 32.71%
OFFICIAL 87 106 102 120 415 283 46.64%
EMPLOYMENT 15,406 18,398 17,084 14,025 64,913 32,565 99.33%
CONVENTION 1,989 3,336 4,431 4,003 13,759 10,815 27.22%
VISIT FRIENDS/
41,255 35,404 39,563 53,832 170,054 123,794 37.37%
RELATIVES
INCENTIVES 47 21 35 36 139 127 9.45%
OTHERS 30,494 27,378 29,489 32,182 119,543 96,376 24.04%
NOT STATED 64,113 60,088 67,750 70,301 262,252 230,979 13.54%

TOTAL 222,139 203,656 226,977 271,989 924,761 698,744 32.35%

Thank you!
and

Mabuhay!!!