Cebu Tourism : Moving Forward

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Cebu Tourism Moving Forward
Sec. JOSEPH H. DURANO Department of Tourism
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Philippine Tourism Performance
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Visitor arrivals substantially increased last
year and we need to sustain the same performance
to hit, if not, surpass our 2007 target for the
remaining months of the year.
Visitor Arrivals to the Philippines, 2000-
2007 (In Millions)
Trend Line
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests Visitor Sample Survey at International
gateways Note 2006 Visitor Receipts from
January to October only
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Visitor receipts grew an average of 20.11 for
the last three years reflecting industrys
position as among the dollar earners of the
economy.
Visitor Expenditure in the Philippines, 2000-
2006 (In US Billion)
Trend Line
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests Visitor Sample Survey at International
gateways Note 2006 Visitor Receipts from
January to October only
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In 2006, DOT endorsed, for various incentives, to
concerned government agencies a total of Php 93.8
billion worth of new investments. The bulk of
investments were in the tourism estates and
accommodations sector.
Endorsed Tourism Investments, 2000- 2006
Share of tourism estate and Accommodation sector
Source of Data Tourism Investment Unit Office
of Tourism Standards, DOT Note 2007 January to
June only
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In 2006, travel and tourism contributed an
estimated 3.49 million jobs across the economy
strengthening its position as among the major
employment generator of the country.
Number of Jobs Generated, 2000- 2007
Incremental Jobs
Source of Data Tourism Investment Unit Office
of Tourism Standards, DOT Note 2007 January to
June only
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Cebu Tourism Performance
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The growth of Cebus tourism industry has been
consistently impressive. It has grown an average
of 14.33 per year over the last three years.
Foreign Visitor Arrivals to Cebu, 2000 - 2007
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests
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In 2006, foreign visitors expenditure in Cebu
increased by 220.35 from US 270.63 million to
US866.96 million. It is estimated that tourism
sector will contribute to Cebus economy as much
as US968 million from foreign visitors
expenditure this year.
Foreign Visitor Expenditure in Cebu, 2005 -
2007 (In Million US)
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests Hotel Occupancy Report DOT - Region
VII Visitor Sample Survey
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Capital investments in the tourism sector account
for Php 3.84 billion in 2006, a substantial
increase over the past three years.
Endorsed Tourism Investments in Cebu, 2001- 2006
Tourism estate and accommodation sector got the
bulk of investment in 2006.
Share of tourism estate and Accommodation sector
Source of Data Tourism Investment Unit Office
of Tourism Standards, DOT
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In employment terms, the tourism industry
generated more than half a million jobs in 2006.
In 2007, close to 77,000 incremental jobs will be
created by the tourism sector in Cebu.
Number of Jobs Generated in Cebu, 2000 - 2007
Most importantly, because travel and tourism is
spread throughout the economy in Cebu in response
to dynamic traveler demand for goods and
services, the economic benefits also flow across
the economy as a whole.
Incremental Jobs
Source of Data Arrival/Departure Cards and Sea
Manifests
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Cebu TourismVision
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Cebu Tourism Vision
2012 Vision
A
Demand Activation
B
Building the Foundations Drivers of Performance
Environment and Perception
Type and Quality Offering
C
D
People Capability and Services
Accessibility and Infrastructure
E
F
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2012 Vision
1M Foreign Tourists
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However, the tourism sector will need to grow at
double digit rates to achieve the medium-term
vision of 1MM foreign tourist arrivals.
Target Foreign Visitor Arrivals to Cebu, 2007-
2012
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests
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Commensurate to the growth of foreign visitors in
Cebu, tourism expenditure will reach as much as
US1.83 billion by 2012.
Foreign Visitor Expenditure in Cebu, 2008
2012 (In Million US)
YoY Growth Rate
Source of Data Arrival/Departure Cards and Sea
Manifests Based on Visitor Arrivals target from
2008-2012
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Demand Activation

• Strategic priorities
• Promote Cebu in high growth and emerging markets
• Promote Cebu as a destination for international
  meetings
• Promote Cebu as a second home destination

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Demand activation
UNITED KINGDOM
Top Foreign Markets to Cebu, 2004 - 2006
CHINA
AUSTRALIA
GERMANY
TAIWAN
HONG KONG
USA
JAPAN
KOREA
Source of Data Arrival/Departure Cards and Sea
Manifests
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Demand activation
Foreign Visitor Arrivals by Purpose of Visit,
2004 - 2006
Holiday
Visit Friends and Relatives
Business
Convention
Source of Data Arrival/Departure Cards and Sea
Manifests
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Environment and Perception

• Strategic priorities
• Enhance Cebus global appeal and status

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Type and Quality Offering

• Strategic priorities
• Develop and improve offering for identified
  target segments
• Build and maintain a variety of activities and
  attractiveness
• Promote Cebu as a value for money destination

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Building the Foundations Drivers of
Performance Environment and Perception and Type
and Quality Offering
Foreign outbound tourists were asked to rate
Cebus tourism facilities using a five point
scale, where1Excellent 2Good 3Average
4Fair 5Poor.
Tourist Satisfaction of Tourism facilities, 2006
Strategic Priorities

• Enhance Cebus global appeal and status

Benchmark for facilities and services
Source of Data Visitor Sample Survey at
International gateway in Cebu
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Foreign outbound tourists were asked to rate
Cebus tourism services using a five point scale,
where1Excellent 2Good 3Average 4Fair
5Poor.
Building the Foundations Drivers of
Performance Environment and Perception and Type
and Quality Offering
Tourist Satisfaction of Tourism Services, 2006
Strategic Priorities

• Enhance Cebus global appeal and status

Benchmark for facilities and services
Source of Data Visitor Sample Survey at
International gateway in Cebu
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Foreign outbound tourists were asked to state
what they like most about their stay in Cebu
Building the Foundations Drivers of
Performance Environment and Perception and Type
and Quality Offering
Tourist Like Most During Their Visit to Cebu, 2006
Source of Data Visitor Sample Survey at
International gateway in Cebu
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Foreign outbound tourists were asked to state
what they dislike most about their stay in Cebu
Building the Foundations Drivers of
Performance Environment and Perception and Type
and Quality Offering
Tourist Dislike Most During Their Visit to Cebu,
2006
Source of Data Visitor Sample Survey at
International gateway in Cebu
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Foreign outbound tourists where asked to rate the
cost of their trip using a three point scale,
where 1Expensive 2Moderate 3Inexpensive.
Building the Foundations Drivers of
Performance Environment and Perception and Type
and Quality Offering
Tourists Rating of Prices of Items in Cebu, 2006
Source of Data Visitor Sample Survey at
International gateway in Cebu
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People Capability

• Strategic priorities
• Aggressively promote tourism employment
  opportunities
• Make tourism related courses relevant to the
  needs of the industry

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Building the Foundations Drivers of
Performance People Capability
Estimated Number of Jobs In Cebu, 2008 - 2012
Source of Data Visitor Sample Survey at
International gateway in Cebu
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Accessibility and Infrastructure

• Strategic priorities
• Increase international accessibility
• Expand current infrastructure

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Fregat Aero Moscow - Cebu
Valdavia Air Novosivirsk - Cebu
Philippine Airlines Narita- Cebu
MOSCOW
Vladivostok Air Vladivostok - Cebu
China Southern Shanghai - Cebu
NOVOSIBIRSK
VLADIVOSTOK
Mandarin Air Taipei Cebu Cebu Pacific Taipei -
Cebu
SHANGHAI
Hong Kong Airlines Hong Kong Cebu
TAIWAN
Malaysia Airlines Kuala Lumpur - Cebu
Cebu Pacific Singapore - Cebu
Asian Spirit Palau - Cebu
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Even before the surge in all these new
direct-to-Cebu international routes, passenger
throughput was already running at 120 of the
terminal complex nominal capacity.
Cebu Airport Complex International and
Domestic Estimated Passenger Throughput (in
000s)

• Cebu needs to expand its terminal capacity by
  almost 3 times -- to accommodate 4.5 million more
  travelers per year.
• Foreign tourists compete with a larger number of
  travelers who use the same air access facilities.
• Most foreign tourists still fly into Cebu via a
  domestic flight.

Domestic Terminal
International Terminal
CAPACITY
Foreign tourist arrival targets for next 5 years
(in 000s)
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Cebu currently has 12,500 rooms, contributing
about 4.5 million room nights. But the demand by
2012 calls for twice that inventory.
Cebu Accommodation Capacity Room Nights Demanded
(in 000s)

• Cebu needs to at least double its current room
  inventory by 2010.
• The effective capacity level is even lower. Not
  all rooms are suitable aligned to market needs
  or preferences i.e. not relevant capacity

Room nights demanded by
Domestic Tourists
Foreign Tourists
NOMINAL CAPACITY
EFFECTIVE CAPACITY
Foreign tourist arrival targets for next 5 years
(in 000s)
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Summary
2012 Vision
A
1 M Visitor Arrivals
Demand Activation
B

• Promote Cebu in high growth and emerging markets
• Promote Cebu as a destination for international
  meetings
• Promote Cebu as a second home destination

Building the Foundations Drivers of Performance
Environment and Perception
Type and Quality Offering
C
D

• Enhance Cebus global appeal and status

• Develop and improve offering for identified
  target segments
• Build and maintain a variety of activities and
  attractiveness
• Promote Cebu as a value for money destination

People Capability and Services
Accessibility and Infrastructure
E
F

• Aggressively promote tourism employment
  opportunities
• Make tourism-related courses relevant to the
  needs of the industry

• Increase international accessibility
• Expand current infrastructure

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THANK YOU!