The Promising Philippine Tourism

-         An interview with Mr. Joseph H. Durano, Secretary of the Philippine Department of Tourism

As a neighbor to China, the Philippines is becoming more appealing for the Chinese tourists. In 2009, China was the 4th biggest source market for the Philippine tourism. This year, more Chinese people will come to this Southeast Asian country to enjoy its beautiful tropical scenes and great hospitability of the Filipinos.

Mr. Joseph H. Durano, Secretary of the Philippine Department of Tourism (DOT), recalled the positive achievements of the Philippine tourism in 2009 as well as the outlook in 2010 when he was interviewed by the reporter from CBF.

CBF: We know that the financial crisis affected the whole world last year. What achievements has the Philippines tourism made despite the financial crisis?

Mr. Durano: Despite the global economic crisis and natural calamities that hit the Philippines last year, the DOT in partnership with the tourism private sector, local government units and other stakeholders was able to continually diversify the tourism products, increase accommodation and transport capacities and upgrade existing tourism services in key destinations.

Actually, the achievements could be seen every where in our country. For example, Cebu which is the top tourist destination in the country had notable increase of 70% in terms of arrivals from China as more charter flights were mounted between Cebu and Shanghai as well as Guangzhou. More than the expansion in international and domestic flights frequencies to Cebu from major tourist markets and destinations in Central Philippines, accommodation capacities also increased with the opening of  several accommodation facilities such as the Imperial Palace Water Park Resort and Spa, Citi Park Hotel, Alpa City Suites and Grand Terra Suite.

Innovative and young entrepreneurs also prepped up existing tour packages in Cebu and nearby destinations. This includes the Island Banca Cruises which attracted foreign and local visitors with its organized and uniquely packaged island hopping tour experiences of the island beaches and dive sites in Cebu.

CBF: Could you tell us more positive results in the other places of the Philippines?

Mr. Durano: Well, let’s talk about Metro Manila. The opening of 1,056 new hotel rooms in this area in 2009 gave impetus for the hefty growth in tourism movement. Among the newly-opened facilities are Newport Mariott Hotel, Oakwood Premiere Joy-Nostalg, Maxims Hotel and The Picasso Serviced Residences. 

The development of new tourism products in Metro Manila have likewise strengthened its promotion as a must-see destination for heritage and culture tours;  shopping and entertainment; incentives, conventions and meetings; and cruise packages. Major international events such as the International Conference on Green Industry in Asia, World Chinese Entrepreneurs Convention, Asian Congress on Health and Peace Tourism, among others have increased utilization of various tourism facilities.

Boracay Island teemed with Chinese tourists throughout the year as more charter flights from China were mounted directly to Kalibo. Shanghai Airlines’ charter operations to Kalibo and Philippine Airlines’ Hangzhou to Kalibo boosted Chinese arrivals to Boracay Island by 26% (Kalibo is the main gateway to Boracay, known as one of the world’s best beach destinations).

Tourism experience in Boracay was also uplifted with the opening of Shangri-la’s Boracay Resort and Spa with its high-end facilities and amenities, and other accommodation establishments such as Crown Regency, Boracay Golden Phoenix Hotel, Seven Stones and Regency Lagoon Resort.

Product diversification undertaken by local government units and the private sector stimulated greater tourist traffic and longer stay in Bohol. Chinese tourists posted a remarkable 99% increase to Bohol.

By year-end 2009, the DOT endorsed 28 new tourism projects worth P36.3 billion with estimated employment capacity of 15,567 once operational. The bulk of new investments are in tourism economic zones and in the accommodation sector.  Relatedly, the airline sector responded to the growth in the tourism sector as Cebu Pacific, Zest Airways and SeaAir have poured investments to acquire new aircrafts to cope with the demand for increased air travel. Total investments of these airlines were valued at P15.9 billion.

In addition to these accomplishments, the Philippines received several citations and recognition last year. The most notable among these is being voted as the most popular leisure destination in Asia during the World Travel Fair held in Shanghai.

Despite the difficulties encountered, the Philippines continue to capture a wide market base due to our diverse attractions and these recognitions affirm that we are on the right track.

CBF: According to what you said just now, China is an important source market for the Philippine tourism. So which destination is the most popular for the Chinese tourists? And what about the overall market outlook for 2010 and the strategy plan for the Chinese outbound travel market?

Mr. Durano: It’s hard to say that which the most popular destination for the Chinese people is. I can only tell you that our beach holiday is the most popular activity for the Chinese people. Therefore, Cebu, Bohol, Boracay and the other destinations with beautiful beaches can attract a large number of tourists from China.

Indeed, China is very important for the Philippines. Last year about 300,000 Chinese people visited our country, making China the fourth largest source market for us. And you should know that our country only welcomed 40,000 Chinese people just 4 years ago. You can see that the growth speed is amazing.

So I am sure that 2010 is a promising year for us. We are confident that we can see more Chinese tourists in our country. In order to complete this goal, the Philippines will remain aggressive in promoting to major cities outside of Beijing, Shanghai and Guangzhou. We will intensify our marketing efforts towards the Chinese market and we will continue to customize our products and services to cater to the needs of Chinese travelers. For this year we plan to tap key incentive trade partners in order to attract more tourists from the incentive/corporate market segment.

Another major task is to continue enhancing accessibility from China direct to the major destinations (Boracay, Cebu and Bohol). That’s why we work close with our domestic airlines to mount more flights connecting these major destinations and the Chinese cities. We hope to strengthen as well our trade and media network in order to establish stronger presence in China. We intend to accomplish this by coming up with special promotional blitz and stimulus packages to entice more Chinese tourists to visit the Philippines at the same time provide incentives to our key travel trade partners in China.

CBF: Previously, the travel routes combining Singapore, Malaysia and Thailand were very popular in China. What do you think of the advantages and differences of the Philippines compared with these southeastern Asian countries?

Mr. Durano: I believe that this market (China) is really big. So there is nearly room for everyone here. This is the right time for the Philippines to be aggressive here. We can see that in this place the other destinations, like Singapore, Thailand and so on have been ahead of us.

But the advantage is that the Chinese market is looking for a new destination. As the market matures and becomes more sophisticated, the people here are now tired of these places they have been to for several times. They are looking for a new product, and that’s just what we can provide. So, as I said, it is time to be aggressive here, and right now we are doing it.

As for the differences, the first one is that our natural products are more pristine than what you see in the other southeastern Asian countries. That’s basically because we have a low volume of tourists going to these places. So necessarily our scenic spots are more pristine without any influence from these countries.

On top of that, we can see that we can provide more personalized service for our guests. Many people coming to our country will find that we are very warm. All of that gives a different flavor to the Philippines. Aside from the beautiful nature, there is very personalized and warm service, enabling the tourists to enjoy different experiences compared with the other southeastern Asian destinations.

In addition, we have a long history of relationship with China. We started the trade with China a long time ago. Today, there are big and influential Chinese communities in our country. You can enjoy the experience here. Although we have some cultural differences with China, the Chinese people can still feel something familiar with our culture.

CBF: The Philippine government has issued the Tourism Act of 2009. What do you think of the implications of the new Act?

Mr. Durano: In my opinion, the biggest implication of the Tourism Act is the enhancement of product and service capabilities or capacity as well as bigger marketing presence.

In the midst of a challenging year, the DOT has laid down the foundations to sustain the growth of Philippine tourism. Anchored on the smooth implementation of the Tourism Act, the DOT foresees the coordinated and integrated efforts of the government and the private sector to expand current capacity, increase tourist demand, enhance tourism revenues, and create more employment opportunities in tourist destinations.

This means that the DOT and its attached agencies will be strengthened to effectively implement the national policy for tourism with the appropriate and adequate manpower and funding support and the active involvement of other key national government agencies. Enhancement of products and services will also be achieved with the implementation of a comprehensive mandatory system of accreditation for primary tourism enterprises.

CBF: Can you tell us about the expectations for the Philippines on its participation at the Shanghai World Expo?

Mr. Durano: The Philippine government hopes to enhance further the promotion of the Philippines and sustain its presence in the global market. The country’s participation in the Shanghai World Expo 2010, provides an excellent opportunity to present, demonstrate and showcase to people across the globe its culture and nature, history and people, as well as its economy and technology and how these aspects of human society interact or co-exist with each other in the process of urbanization and social and economic development to create a “Better City, Better Life” in conformity with this year’s expo theme.

In terms of tourism benefits, the Expo will also provide the platform to showcase the Philippines’ diverse tourism products including pristine beaches, cultural/heritage destinations, shopping and entertainment, scuba-diving, study programs, incentive travel, health and wellness programs, golf, nature and adventure travel.

China is the number four source market for the Philippines in terms of tourist arrivals, and with our participation in the Shanghai World Expo, we hope to increase the level of awareness of Chinese travelers about the Philippines and entice more people to visit our island destinations. Meanwhile, we will cooperate with our domestic airlines to create some special packages for the Filipinos to visit the Expo in Shanghai.

Our participation also highlights the 35th anniversary of the diplomatic relations between the Philippines and China and with this comes the desire to strengthen this relationship.