DEPARTMENT OF TOURISM

THE
PHILIPPINE NATIONAL
TOURISM
DEVELOPMENT PLAN
2011-2016
Draft Action Plan
(for discussion purposes only)

June 2011

The Philippine Tourism Diagnosis

Suboptimal socioeconomic
development contribution

Highly concentrated pattern of tourism

with limited local community
participation

Insufficient tourist facilities and

services

Low tourism growth volumes

Inadequate public and private

sector investment

Low budgets for marketing and promotions

FOCAL
PROBLE
M

Underdeveloped tourism
tourism sector
sector relative
relative to
to its
its
Underdeveloped
market
and
product
development
potential
market and product development potential

Inadequate
international
airport
infrastructure
Inadequate air,
sea, and road
connectivity to
destinations

Limited number
of competitive
destinations
Inadequate
destination/site
infrastructure

Inability to develop and expand air

accessibility to key growth markets

Cumbersome
business operating
environment

Discriminatory tax
regime for hotels
and carriers

Perception of the
Philippines as an
unsafe destination
Poor compliance
with safety
standards
Destination/site
security

Overlapping institutional regulatory functions

between the national government and LGUs
Weak LGU tourism development
capacities

CAUSE

Formulation of the Philippine National Tourism Development Plan

Inconsistent quality of tourist facilities

and services

EFFECT

NP-1

INCLUSIVE
DESTINATION
CONCEPT

International Airport
Principal Airport - Class 1
Principal Airport Class 2

NP-2

Community Airport -

Sea Port

NP-3

NP-4

Gateway to
Tourism Cluster

NP-5

Tourism
Development
Area

Tourism Cluster

International Gateway
Strategic Destination
Clusters

NP-6

Tourism Development Area

B
C

NP-7

Tourism Site

CP-1

E
F
A

CP-2
CP-3

21 strategic thematic tourism

destination clusters covering 77
Tourism Devt Areas)
7 strategic clusters in Northern
Philippines (North Luzon, CAR,
CALABARZON, NCR) covering 27
tourism development areas
7 strategic clusters in Central
Philippines (MIMAROPA, Bicol, The
Visayas) covering 24 tourism
development areas
7 strategic clusters in the Southern
Philippines (Mindanao) covering 26

A
A

CP-5

CP-7

CP-6

SP-1

CP-4

C
B

A
C

B
B

SP-4

C
E

SP-6
A

SP-7

SP-2

SP-3

SP-5

Formulation of the Philippine National Tourism Development Plan

Tourism
Cluster

Strategic Vision:
TO BECOME THE MUST EXPERIENCE DESTINATIONGOAL:
An
IN ASIA.
environmentally
Improving
Rapidly
expand
capacity
of
secondary
international
airports

and socially
market
Expand connectivity between Philippines and its key growth

responsible
access and

Developing
and
marketing
competitiv
e tourist
destinatio
ns and
products

Improving
tourism
institution
al,
governanc
e
and
human

markets
Implement a strategic access infrastructure program between
secondary international airports and strategic destinations

Implement a sustainable tourism destination infrastructure

program
Develop diversified tourism products that engage local
communities
Implement a PPP-based mandatory tourism enterprise
accreditation system and facilitate tourism investment and
lower cost of business
Safeguarding natural & cultural heritage and vulnerable groups
PPP-based marketing strategy and action plan

Institutionalize roles and responsibilities of DOT and LGUs

Develop a competent well motivated and productive tourism
workforce
Improve governance in the area of safety, security, and in
dealing with tourists

tourism that
delivers more
widely
distributed
income and
employment
opportunities as
indicated by
6.6 M
international
arrivals and
34.8 M domestic
travelers
generating
PhP1,759 billion
in total
expenditure,
contributing
6.78% to GDP
4
and employing
6.5 million
Formulation of the Philippine National Tourism Development Plan

connectivit
y

Rapidly expand capacity of secondary

international airports

improve visitors
impression
Increase passenger
handling capacities
Prioritize:

NAIA, Mactan-Cebu,
Clark and Davao
(2011-2012)
Puerto Prinsesa, Iloilo
(2012-2013)
Laoag and Zamboanga
(2013-2014)

Formulation of the Philippine National Tourism Development Plan

Reduce congestion to

Expand connectivity between Philippines

and its key growth markets

Growth Market Countries

Reduce Air International Air Operations Cost
in the Philippines
Simplify border formalities/procedures for key
growth markets

Formulation of the Philippine National Tourism Development Plan

Renegotiate Air Service Agreements with Key

NP-1

Implement a
strategic access
infrastructure
program between
secondary
international
airports and
strategic
Improve, rehabilitate,
destinations
and expand 23 domestic

Principal Airport - Class 1

Principal Airport Class 2

NP-2

Community Airport -

Sea Port

NP-3

NP-4

Tourism Cluster

NP-5

International Gateway
Strategic Destination
Clusters

NP-6

Tourism Development Area

B
C

NP-7

Strategic Links

CP-1

E
F
A

CP-2
CP-3

A
A

CP-5

CP-7

CP-6

SP-1

CP-4

C
B

A
C

B
B

SP-4

C
E

SP-6
A

SP-7

SP-2

SP-3

SP-5

Formulation of the Philippine National Tourism Development Plan

airports
Improve, rehabilitate,
and expand 21 seaports
Improve, rehabilitate,
and upgrade 28
strategic connecting
roads with total distance
of approximately
850kms

International Airport

Implement a sustainable tourism

destination infrastructure program

Destination Infrastructure
locations), power (4 locations), and solid waste
management in (27 locations)
Design and construction of tourism information
centers and support infrastructure (26 tourism
development areas)
Design and construction of transport terminals and
services in (26 tourism development areas)
Tourism sites access and visitor improvements

Formulation of the Philippine National Tourism Development Plan

Provision of water and water treatment (6

Develop diversified tourism products that

engage local communities

complexes in the vicinity of the International

Airports
Linking local communities to the tourism
value chain created by the major mix use
tourism complexes upgraded tourist sites in
their vicinity
Review regulations that impede new product
development. (e.g. retiree, medical tourism)
and amend accordingly

Formulation of the Philippine National Tourism Development Plan

Developing Major Mixed-use Tourism

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Formulation of the Philippine National Tourism Development Plan

Advising tourist
on product,
contract

Travel
Agent

Providing
accommodation
food, etc.

Transport to
the
destination

Transport
Company

Hotel,
Restaurant

Organise
event,
experience

Site Operator,
Cultural Group

Formulation of the Philippine National Tourism Development Plan

Simple Tourism Value Chain

Transport
from the
destinatio
n

Transport
Company

CO-ORDINATION OF SERVICES
Tour Operator

Tourism Authority

14

Formulation of the Philippine National Tourism Development Plan

Tourism Value Chain at work

15

Implement a PPP-based mandatory

tourism enterprise accreditation system
and facilitate tourism investment and
lower cost of business
mandatory tourism enterprise accreditation
system
Facilitating business investment and
simplifying business set-up and licensing
procedures and cost

Formulation of the Philippine National Tourism Development Plan

Design and implementation of a PPP-based

16

Formulation of the Philippine National Tourism Development Plan

Proposed Framework of the DOT

Accreditation Process
Primary Tourism Enterprises 2012 2016

17

Safeguarding natural & cultural heritage

and vulnerable groups

products
Increasing number of heritage sites for
international recognition
Advocating the sustainable use of heritage
sites
Providing a professional interface between
sustainable heritage and tourism

Formulation of the Philippine National Tourism Development Plan

Developing uniquely Filipino destinations and

18

19

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Formulation of the Philippine National Tourism Development Plan

Marketing strategy and action plan

develop highly-focused new products

Design TPB as a product marketing oriented
organization
Define new target markets and undertake
market penetration.
Set up a unique market positioning that
boosts and differentiates the Philippines as a
tourism destination.
Establishing customized promotional
initiatives to source markets

Formulation of the Philippine National Tourism Development Plan

Consolidate present product offering and

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Formulation of the Philippine National Tourism Development Plan

Market Positioning Approach

23

Formulation of the Philippine National Tourism Development Plan

Product-Market Mix Approach

24

Nature-based
tourism

Sun & Beach

Cultural tourism

Shopping,
Leisure &
Entertainment

Health and
Wellness tourism

MICE

Educational
Tourism

Key growth markets

Domestic Market
Japan
South Korea
USA
China

Australia
Singapore
Malaysia
Canada

Opportunity markets
India
Hong Kong
Taiwan

Very High

High

Medium

Russia

Niche markets
UK

Low

Very Low

Germany
100% - Full
potential
Source: T&L research,

75% - potential

50% - potential

25% - potential

0% - potential

Formulation of the Philippine National Tourism Development Plan

Strategic markets

25

Formulation of the Philippine National Tourism Development Plan

Special Interest Segments

Source: T&L
research,

National Tourism Marketing Program

Strategic Marketing

Branding
Product Development Clubs
Marketing Intelligence
Adapting DOT marketing & representation offices
to market priorities
Create DOT regional market offices and use local
market representatives at country level

Operational Marketing
Commercialization
Promotion
Communication
Public relations

Formulation of the Philippine National Tourism Development Plan

International Marketing Network

27

Marketing Action Plan Budget 2012-2016 (USD)

Sub-program 3: Marketing
Intelligence Management

Sub-program 1:
International Network
Offices

Sub-program 2: Fostering

National Tourism

3. Operational
Marketing Program

2013

2014

2015

2016

TOTAL

795,000

50,000

390,000

300,000

390,000

355,000

50,000

50,000

50,000

50,000

555,000

Sub-Program 2:
Promotion

1,925,000

190,000

190,000

100,000

190,000

670,000

250,000

150,000

150,000

150,000

700,000

750,000

3,041,068

3,087,759

3,140,841

3,201,190

450,000

2,700,000

2,700,000

2,700,000

2,700,000

300,000

341,068

387,759

440,841

501,190

13,220,859

11,250,000

9,477,000

Sub-program1:

Commercialization

Sub-porgram 2: Tourism Product

Clubs Development Franework

2012

Sub-porgram 1: Philippine's
Tourism Positioning Management

2. Tourism Marketing

Network Program

1. Strategic
Marketing Program

1,970,859

13,050,547 15,195,698 17,305,945 20,837,995 75,867,184

960,000

1,877,613

2,127,219

2,665,461

3,669,206

4,265,000

6,138,857

7,322,641

8,092,293

9,715,254

11,299,499

35,534,044

Formulation of the Philippine National Tourism Development Plan

28

Sub-program 3:

Forecast arrivals per country of origin

2011 - 2016

USA
Japan
China
Australia
Taiwan
Hong Kong
Singapore
Canada
United Kingdom
Malaysia
Germany
India
Russia
Scandinavia
Others
TOTAL

2012

2013

2014

2015

2016

CAGR

792.466

855.863

941.449

1.082.666

1.245.066

1.469.178

11%

636.175

687.069

755.776

846.469

931.116

1.024.227

8%

286.995

286.995

295.605

304.473

319.697

335.682

3%

215.563

254.364

305.237

381.546

496.010

669.614

21%

165.165

184.985

203.484

234.006

269.107

312.164

11%

149.008

156.458

164.751

175.459

188.180

203.235

5%

143.108

153.555

165.225

178.856

195.848

216.412

7%

135.613

151.887

179.226

211.487

253.784

317.230

15%

111.131

116.243

121.706

129.617

139.338

151.182

5%

101.771

106.860

112.203

117.813

125.471

136.763

5%

89.257

99.968

114.963

132.208

153.361

180.966

13%

60.487

62.301

64.793

68.033

72.115

77.884

4%

38.039

42.604

48.994

57.813

68.220

78.453

13%

15.521

16.607

17.936

20.088

23.101

26.335

9%

51.237

55.080

59.486

64.536

70.990

78.089

7%

727.937

815.290

913.125

1.031.831

1.176.287

1.340.967

11%

3.719.473

4.046.128

4.463.959

5.036.903

5.727.691

6.618.381

11%

Formulation of the Philippine National Tourism Development Plan

Korea

2011

29

Institutionalize roles and responsibilities

of DOT and LGUs

of DOT and LGUs in key areas

Strengthening tourism governance and policy
formulation in the DOT
Strengthening DOT support for Local
Government Units (LGUs) by establishing
DOT provincial units
LGU Awareness and capacity building

Formulation of the Philippine National Tourism Development Plan

Clarify the institutional role and responsibility

30

Tourism Governance and Management

Model for the Philippines
Proposed Philippine Tourism Governnance & Management
Framework

National Level

Regional Level

Local Level

Tourism Advisory and

Consultative Bodies

(Tourism Coordination CouncilTourism Congress-Regional

Tourism Congresses)

Regional Tourism
Councils/ Congresses

Tactical Level

Department of Tourism

Tourism
Promotion
Board

TIEZA

Regional Tourism Offices

(DOT-Tourism Congress-Civil
Society)

Provincial Tourism
Councils
(DOT-Tourism Congress-Civil

Regional &
Provincial Level Tourism Units

Society)

Local Tourism Councils

and Action Groups

City and Municipality Tourism

Units

Formulation of the Philippine National Tourism Development Plan

Strategic level

31

 Skills capability building

Improving labor relations
Professional Tourism Training and Education
HR Recognition, Networking, and
Development

Formulation of the Philippine National Tourism Development Plan

Develop a competent well motivated and

productive tourism workforce

32

Formulation of the Philippine National Tourism Development Plan

Proposed Tourism and Hospitality

Management Education System (2012
2016)

33

Formulation of the Philippine National Tourism Development Plan

Human
Capital
Developmen
t
Philippine
Tourism
Industry
2011 - 2016

34

35

Formulation of the Philippine National Tourism Development Plan

Improve governance in the area of safety,

security, and in dealing with tourists

at International Ports
Expanded DOT TOP-COP Program
Tourism Front-Liners Awareness and Values
Training Program
Establish Tourism Crisis Management Unit
Pilot PPP based local tourism civil order
programs in each region targeting reduced

Criminality and lawlessness

Traffic congestion
Littering and waste

Formulation of the Philippine National Tourism Development Plan

Mabuhay! Tuloy Po Kayo Program for CIQS

36

37

Formulation of the Philippine National Tourism Development Plan

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Formulation of the Philippine National Tourism Development Plan

Provisional Cost Estimates of NTDP in (PhP 000s)

2016 Total
339,68 11,107,7
5
40

0 3,957,81 6,747,99 7,279,1 4,607,5 1,448,8 24,041,3

1
7
05
70
38
22

171,194

170,399

69,961

64,340

64,340

540,233

5,00 7,916,32 10,716,9 9,110,0 6,088,0 1,852,8 35,689,2

0
5
95
16
95
63
95

Formulation of the Philippine National Tourism Development Plan

Improving
market access
and
connectivity
Developing and
marketing
competitive
tourist
destinations
and products
Improving
tourism
institutional,
governance
and human
resource
capacities
Grand Total

2011
2012
2013
2014
2015
5,00 3,787,32 3,798,60 1,760,9 1,416,1
0
0
0
50
85

39

NTDP Implementation Approach

implementation of the strategic programs will

be required at the national, regional, and
local level

Overall implementation to be coordinated

through:

National Tourism Coordinating Council

DOT NTDP Program Implementation Coordination &
Monitoring and Evaluation Unit

Infrastructure programs and projects to be

implemented by related agency project
management and implementation units

Formulation of the Philippine National Tourism Development Plan

Full time coordination and supervision of the

40

Formulation of the Philippine National Tourism Development Plan

Project Implementation Organization

Arrangement

41

Infrastructure - Implementation,
Financing and Operations and
Maintenance Arrangements
Lead
Agenc
y

Mode of
Financing
Capex and O&M

Possible
Financin
g
Partners

Project
Implmentat
ion

1. Secondary
International
Airport
Infrastructure
Upgrading
Program

DOTC

Annual Budgets
Project Loans
User fees and
charges

Public
sector
lenders
Private
Sector as
providers
and O&M

DOTC Project
Management
and
Implementatio
n Units

2. Air, sea and

land connectivity
to strategic cluster
destination entry
points
improvement
program

DOTC/
DPWH

Annual Budgets
Program/Project
Loans
User fees and
charges

As above

DOTC/DPWH
Project
Management
and
Implementatio
n Units

3. Tourist
development area
utility destination
infrastucture
program

DPWH/
LGUs

Annual Budgets
Program/Project
Loans
User fees and
charges

As above

DPWH/LGU
Internal Project
Management
and
Implementatio
n Units

Formulation of the Philippine National Tourism Development Plan

Type of
Infrastructure

42