Philippine Tourism: Sustaining Growth in a Challenging Environment

Industry Performance

Tourist arrivals in the top sixteen tourism destinations went up by 16.5% reaching close to 4 million in the first semester of 2009.

The Department of Tourism’s (DOT) efforts to maximize opportunities in international markets and encourage greater domestic travel movement in the first six months provided the impetus to sustain tourism growth in the midst of challenges brought by the global financial crisis and Influenza A (H1N1).

This feat is attributed to the substantial increase in domestic tourism by 20% in the second quarter of 2009, which enhanced the business and investment confidence in the sector during the period January to June 2009. Likewise, the changing lifestyle and travel pattern of more Filipinos and Philippine residents to spend their Holy Week, long weekends and summer/ holiday vacation in the various tourist areas of the country boosted tourist flow. Foreign arrivals in key destinations also increased by 6% in the first half of the year despite a decrease of 6% in inbound visitors into East Asia and the Pacific.

First and Second Quarters Tourist Volume

2009 and 2008

Camarines Sur posted a hefty growth in both foreign and domestic arrivals by 52% and 260%, respectively, ranking it as the most visited destination during the first semester with 902,202 tourists. The Provincial Government of Camarines Sur investment in a wakeboarding tourism product stimulated visitor volume while continuing to bolster demand for more accommodation, tour services and transportation.

The influx of tourists in Camarines Sur also facilitated the expansion of infrastructure and development of tourism related products. The success of this Local Government Unit (LGU) initiative serves as a model for other LGUs to harness their tourism potentials and optimize local resources to create more economic activity.

Cebu is the second most visited tourist destination with 830,599 visitors, claiming 23% share of total arrivals. Cebu continues to be the top destination for foreign tourists with 321,116 in the first semester. The expansion in air access from major tourist markets, including the new charter flights from Incheon, Busan, Shanghai, Guangzhou, and Kaohsiung as well as increase in room supply, aggressive promotion, public and private sector partnership to diversify the tourism products greatly contributed to the hike in visitor volume to Cebu.

Visitor count in Puerto Princesa and Bohol went up by 63% and 16%, respectively, as diving, ecotourism, birdwatching, adventure and incentive tourism products were jointly launched by the DOT, LGUs and the private sector. Increased demand also ushered the conception of more community-based tourism products that increased the availability of product offering and livelihood for local residents.

Other most frequently visited destinations included Boracay (383,813); Davao City (330,247); Puerto Galera (215,755); and Ilocos Norte with 99,747 tourist arrivals.

Tourist Volume in Top Sixteen Destinations

January to June 2009

Destinations	Foreign	Domestic	Total	Growth Rate
Camarines Sur	147,504	754,698	902,202	194.0%
Cebu	321,116	509,433	830,599	2.3%
Boracay	112,315	271,498	383,813	6.0%
Baguio *	20,677	350,528	371,205	-14.5%
Davao	29,691	300,556	330,247	2.7%
Puerto Galera **			215,755	20.2%
Bohol	45,995	114,619	160,614	15.6%
Negros Occidental *	32,780	113,724	146,504	-55.2%
Negros Oriental	22,729	95,069	117,798	11.1%
Ilocos Norte	8,088	91,659	99,747	6.5%
Masbate *	10,257	71,630	81,887	-7.5%
Camarines Norte	1,711	79,466	81,177	63.9%
Puerto Princesa	11,380	69,376	80,756	63.0%
Legaspi	7,892	59,732	67,624	10.9%
Catanduanes	9,953	55,188	65,141	115.0%
Sorsogon *	26,251	27,952	54,203	-14.0%
Total	808,389	2,965,128	3,989,272	16.5%

Source: DOT Regional Offices

* Partial Data; ** No Breakdown

Enhancing Tourist Products

The increased demand encouraged more entrepreneurs to create new products and experiences for visitors.

The Island Banca Cruises in Cebu has attracted visitors with its differently organized and packaged island hopping tour of the marine sanctuaries of Nalusuan and Gilutungan, the pristine white beach of Pandanon and dive sites of Moalboal.

Kultura Filipino in Intramuros gave the tourists an opportunity to acquaint themselves with the Philippine cultural heritage through local dances, music and cuisine. This product also serves as the highlight of the new city tour program for Manila.

Similarly, the Pasig River Cruise had lured back tourists to visit and appreciate the many sights and attractions of Metro Manila. More than a river cruise, the product provides cultural interaction, culinary treat, historical tour and entertainment.

With increased popularity for adventure tourism, spelunking in the Sohoton Caves in Basey, Samar offered visitors with a quaint experience to commune with nature, explore the area’s wonders and promote cultural exchanges. Likewise, cruising along the Golden River of Basey provided a glimpse of rural and community life amidst the scenery and images of clear waterways surrounded by green vegetation.

The sheer motivation of the Municipal Government of Danao in Bohol brought a new dimension to adventure tourism and created employment for local people. Dubbed as Ecological, Environmental and Educational Adventure Tour (EAT) Danao, this product offers an extreme and exhilarating challenge with its 200-meter plunge,  1 km suislide, caving, river tubing, rappelling, kayaking and root climbing.

Likewise, the opening of a theme park called Fantasyland in Zamboanga del Norte had boosted tourist arrivals in said destination. The entertainment facility includes interactive rides, shows and activities for foreign and domestic visitors. A 360-room hotel will also be built in the park.

Gauging from the interests of many foreign and domestic visitors to participate in environmental, heritage and livelihood projects, the Hands On Volunteer Vacation Tour Package was launched in Oriental Mindoro, Bohol, Boracay Island, Aklan, Laguna and Batangas.

Trekking, birdwatching, and ecotourism products in Mt. Apo were enriched with new adventure, camping and cultural interaction activities which have drawn more tourists during the summer months.