Outlook of Domestic and International Tourism in the Philippines

1. sentinel of Domestic and International Tourism in the Philippines According to the Philippine case Tourism Development Plan 2011-2016, clump wanted the Philippines to be a must- visit destination in Asia. With that strategical vision, they establish a general stopping point which is to develop an environmentally and socially creditworthy touring carry that delivers to a greater extent than astray distributed income and employment opportunities as indicated by 6. 6 M internationalist arrivals and 34. M domestic operatelers generating PhP1,759 billion in total exp eat upiture, contributing 6. 78% to gross domestic product and employing 6. 5 cardinal people by 2016. With that being give tongue to they created objectives to discover the goal which is to improve food market entrance m atomic number 53y and connectivity by promptly expanding strength of secondary international ventilateports, expanding connectivity betwixt Philippines and its get word growth mark ets and implementing a strategic access infrastructure program between secondary international airports and strategic destinations.Developing and marketing competitive tourist destinations and products by implementing a sustainable tourism destination infrastructure program, developing diversify tourism products that engage local anesthetic communities, implementing a PPP-based mandatory tourism green light accreditation system and facilitate tourism investment and lower constitute of trans effect safeguarding natural & cultural heritage and vulnerable groups PPP-based marketing strategy and action excogitation.Lastly, up(p) tourism institutional, establishment and human resource capacities by institutionalizing roles and responsibilities of transport and LGUs, developing a skilled swell motivated and productive tourism workforce and improving giving medication in the area of safety, gage, and in relations with tourists. (http//asiapacific. unwto. org/sites/all/files/p df/philippines_5. pdf) As of January 2013, spit Secretary Ramon Jimenez, spend a penny missed the backside of 5 million tourist arrivals by slight than 300,000 (4. 6 Million), and is eyeing the 5 million by the end of 2013.He leave behind do it by escalate the marketing campaign overseas, change magnitude the number of hotels and room accommodations, and most importantly, improving the so-called one of the finish off airports in the world which is NAIA. (http//www. abs-cbnnews. com/ melodic line/01/17/13/dot-misses-2012-tourist-arrival-target) 2. Inte pass off of airmanship Asia and tiger Airways in the Philippine appendage AirAsia has concords in Indonesia and Siameseland, both of which could bring forth an initial public go later this socio-economic class, as well as long-haul associate AirAsia X. It has to a fault proclaimed jut bulge go forths to set about up an affiliate in the Philippines.Clark will be the 13th regional hub of the AirAsia group, in admitta nce to its bases in Malaysia, Thailand and Indonesia. Increasingly, however, AirAsia is finding that it has to percentage its turf with Singapore Airlines associate tiger, which has announced plans of its make for the Philippine and Thai market. Accoording to AirAsias top dog executive Marianne Hontiveros, Our option of Clark underlines the air ducts commitment to developing im maning and tourism hubs outside Manila. This is part of our plan to summate to the development of the province as a whole. Last February 2011, tiger said it would buy a 32. 5% stake in Philippine inexpensive carrier Seair, next a marketing partnership between the two airlines late 2010. Tigers oral sex executive Tony Davis says that by taking a stake in Seair, his airline would be able to take a bigger share in a major market probability for low cost airlines. The move would besides allow Seair to compete more(prenominal) effectively against local market leader Cebu Pacific, which had a succes sful IPO last year and is rapidly expanding both its fleet and network. (http//www. flightglobal. om/news/articles/low-cost-carriers-growth-expectations-355702/) The year 2012 put the global maculation on the Philippine aviation industry, more often than not due to the phenomenal implementation of the low-cost carriers flying domestic and international routes. The share of budget carriers in the the Philippines in the introductory 9 months of 2012 has soared to an clean of 60%, reflecting one of the nobleest in the world, according to business consultancy firm Innodata. some 80% of the domestic markets 15. 5 million passengers and about 30% of internationals 12. 5 million flew budget airlines in January-to-September.Since budget flights were introduced to Filipinos in 2005, the number of passengers hopping from one of the archipelagos 7,100 islands to the next, or to Asian destinations less than 4 hours away, have been growing by leaps and bounds. The year 2012 saw the highes t jumps. The omen of low serves and new destinations were key reasons for this exponential function growth. Budget carriers, in turn, battled it out in this increasingly competitive playacting field by getting fuel-efficient aircraft and testing new markets. Some beefed up their war chest by getting new owners or partners with deeper pockets or wider reach. http//www. rappler. com/business/18371-low-cost-carriers-drive-aviation-growth) Tiger Airways, however, said the long-term potential of the Indonesian and Philippines air travel market is promising. (http//www. interaksyon. com/business/53511/tiger-airways-says-seair-unlikely-to-turn-in-a-profit-in-2013) The resulting processal and cost efficiencies will ensure more low fare seats are available and contribute to the growth of SEAIR and the Clark gateway, benefiting customers in the Philippines and crosswise the Asia Pacific region.Avelino Zapanta, SEAIRs President and CEO, said, With this new collaborationism with Tiger Air ways, we will also be able to serve more international visitors to the Philippines by offer more destinations with great value, low fares. In addition, the introduction of these new reverse lightning services will create a welcome boost to the Philippines tourism industry and create more high calibre local jobs. chin up Sak Hin, Chief Financial pointr of Tiger Airways Holdings Limited, said, We are very aroused to be working with SEAIR as the first Partner Airline of tigerairways. com.Besides the cost advantages resulting from basing aircraft and crew in Clark, SEAIRs extensive experience and brand recognition will ensure that more customers in the Philippines and internationally atomic number 50 access the akin low fares offered by Tiger Airways when using the leading regional travel portal tigerairways. com. Together with Tiger Airways surd marketing and distribution plan in Singapore and crosswise major markets in the region, it will be a powerful combination that offers unstoppable value and fares to even more travellers. (http//www. tigerairways. com/news/OA_20110224_Tiger_Airways_Plans_To_Purchase_Major_Stake_in_SEAir. df) Our choice of Clark underlines the airlines commitment to developing transport and tourism hubs outside Manila. This is part of our plan to contribute to the development of the terra firma as a whole. AirAsia, Inc. is excited to start contributing to the economy of Clark and the rest of the country by boosting tourism and offering job opportunities to Filipinos, said Marianne B. Hontiveros, chief executive of AirAsia, Inc. We plan to make Clark the hub for flights to touristed destinations including Singapore, Hong Kong, Taiwan, China, Thailand, Korea and Japan.Travel will become often easier and more unfoldable for tourists and overseas Filipino workers, Hontiveros added. Hontiveros, Antonio O. Cojuangco Jr. and Michael L. Romero own 60% of AirAsia, Inc. in equal partnership. The remaining 40% is owned by AirAsia Berha d. 3. relevancy of the Philippine tribe in the regional LCCs interest of operation According to the Pacific Asia Travel Association, as of 2011, there are 114 million online visitors who check out the internet for Airlines which are aged 15 and to a higher(prenominal) place and who have internet access in schools, works, homes, etc.In the Philippines, 11% of the total population has access to the internet and check out these sites for low-cost airfares. This psychoanalyze shows that the higher the population is the more online hits and the more storied the air carrier gets when it comes to low-cost fares. AirAsia has topped the list of most-visited weather vanesites with 3,380,000 visits and second is, Tiger Airways which increased 226% from 554,000 to 1,805,000. Low-cost airlines in Asia Pacific have already seen real growth, even just in the past year.With many of these carriers sucking highly web-centric models, it is solid that they attract more than their delightful sh are of the young Internet economic consumptionrs in the region. For these young travellers, low-cost airlines may be the first time that they have to book and buy their own travel, providing for many the portal into continued use of the web as an e-commerce channel. evidential upside in the market clay as Internet sagacity increases in the region, and people who could not afford to travel before can now take cheaper flights.The younger coevals as well as the continued improvements in site usability and security will also fix to influence older Internet users to adopt the web as a channel for researching and booking travel. PATA sees low-cost carriers as an increasingly important part of the travel ecosystem in Asia Pacific and this study has proven that, remarks John Koldowski, alternate Chief Executive Officer and Head, Office of Strategy Management, PATA. As consumers across demographic segments continue to turn to the web for their travel needs, itOutlook of Domestic and International Tourism in the Philippines1. Outlook of Domestic and International Tourism in the Philippines According to the Philippine National Tourism Development Plan 2011-2016, DOT wanted the Philippines to be a must-experience destination in Asia. With that strategic vision, they established a general goal which is to develop an environmentally and socially responsible tourism that delivers more widely distributed income and employment opportunities as indicated by 6. 6 M international arrivals and 34. M domestic travellers generating PhP1,759 billion in total expenditure, contributing 6. 78% to GDP and employing 6. 5 million people by 2016. With that being said they created objectives to achieve the goal which is to improve market access and connectivity by rapidly expanding capacity of secondary international airports, expanding connectivity between Philippines and its key growth markets and implementing a strategic access infrastructure program between secondary internationa l airports and strategic destinations.Developing and marketing competitive tourist destinations and products by implementing a sustainable tourism destination infrastructure program, developing diversified tourism products that engage local communities, implementing 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.Lastly, improving tourism institutional, governance and human resource capacities by institutionalizing roles and responsibilities of DOT and LGUs, developing a competent well motivated and productive tourism workforce and improving governance in the area of safety, security, and in dealing with tourists. (http//asiapacific. unwto. org/sites/all/files/pdf/philippines_5. pdf) As of January 2013, DOT Secretary Ramon Jimenez, have missed the target of 5 million tourist arrivals by less than 300,00 0 (4. 6 Million), and is eyeing the 5 million by the end of 2013.He will do it by intensifying the marketing campaign overseas, increasing the number of hotels and room accommodations, and most importantly, improving the so-called one of the worst airports in the world which is NAIA. (http//www. abs-cbnnews. com/business/01/17/13/dot-misses-2012-tourist-arrival-target) 2. Interest of Air Asia and Tiger Airways in the Philippine Operation AirAsia has affiliates in Indonesia and Thailand, both of which could have an IPO later this year, as well as long-haul associate AirAsia X. It has also announced plans to start up an affiliate in the Philippines.Clark will be the 13th regional hub of the AirAsia group, in addition to its bases in Malaysia, Thailand and Indonesia. Increasingly, however, AirAsia is finding that it has to share its turf with Singapore Airlines associate Tiger, which has announced plans of its own for the Philippine and Thai market. Accoording to AirAsias chief executi ve Marianne Hontiveros, Our choice of Clark underlines the airlines commitment to developing transportation and tourism hubs outside Manila. This is part of our plan to contribute to the development of the country as a whole. Last February 2011, Tiger said it would buy a 32. 5% stake in Philippine low-cost carrier Seair, following a marketing partnership between the two airlines late 2010. Tigers chief executive Tony Davis says that by taking a stake in Seair, his airline would be able to take a bigger share in a major market opportunity for low cost airlines. The move would also allow Seair to compete more effectively against local market leader Cebu Pacific, which had a successful IPO last year and is rapidly expanding both its fleet and network. (http//www. flightglobal. om/news/articles/low-cost-carriers-growth-expectations-355702/) The year 2012 put the global spotlight on the Philippine aviation industry, largely due to the phenomenal performance of the low-cost carriers flyin g domestic and international routes. The share of budget carriers in the the Philippines in the first 9 months of 2012 has soared to an average of 60%, reflecting one of the highest in the world, according to business consultancy firm Innodata. Almost 80% of the domestic markets 15. 5 million passengers and about 30% of internationals 12. 5 million flew budget airlines in January-to-September.Since budget flights were introduced to Filipinos in 2005, the number of passengers hopping from one of the archipelagos 7,100 islands to the next, or to Asian destinations less than 4 hours away, have been growing by leaps and bounds. The year 2012 saw the highest jumps. The promise of low fares and new destinations were key reasons for this exponential growth. Budget carriers, in turn, battled it out in this increasingly competitive playing field by acquiring fuel-efficient aircraft and testing new markets. Some beefed up their war chest by getting new owners or partners with deeper pockets o r wider reach. http//www. rappler. com/business/18371-low-cost-carriers-drive-aviation-growth) Tiger Airways, however, said the long-term potential of the Indonesian and Philippines air travel market is promising. (http//www. interaksyon. com/business/53511/tiger-airways-says-seair-unlikely-to-turn-in-a-profit-in-2013) The resulting operational and cost efficiencies will ensure more low fare seats are available and contribute to the growth of SEAIR and the Clark gateway, benefiting customers in the Philippines and across the Asia Pacific region.Avelino Zapanta, SEAIRs President and CEO, said, With this new collaboration with Tiger Airways, we will also be able to serve more international visitors to the Philippines by offering more destinations with great value, low fares. In addition, the introduction of these new jet services will create a welcome boost to the Philippines tourism industry and create more high calibre local jobs. Chin Sak Hin, Chief Financial Officer of Tiger Air ways Holdings Limited, said, We are very excited to be working with SEAIR as the first Partner Airline of tigerairways. com.Besides the cost advantages resulting from basing aircraft and crew in Clark, SEAIRs extensive experience and brand recognition will ensure that more customers in the Philippines and internationally can access the same low fares offered by Tiger Airways when using the leading regional travel portal tigerairways. com. Together with Tiger Airways strong marketing and distribution platform in Singapore and across major markets in the region, it will be a powerful combination that offers unbeatable value and fares to even more travellers. (http//www. tigerairways. com/news/OA_20110224_Tiger_Airways_Plans_To_Purchase_Major_Stake_in_SEAir. df) Our choice of Clark underlines the airlines commitment to developing transportation and tourism hubs outside Manila. This is part of our plan to contribute to the development of the country as a whole. AirAsia, Inc. is excited to start contributing to the economy of Clark and the rest of the country by boosting tourism and offering job opportunities to Filipinos, said Marianne B. Hontiveros, chief executive of AirAsia, Inc. We plan to make Clark the hub for flights to popular destinations including Singapore, Hong Kong, Taiwan, China, Thailand, Korea and Japan.Travel will become much easier and more affordable for tourists and overseas Filipino workers, Hontiveros added. Hontiveros, Antonio O. Cojuangco Jr. and Michael L. Romero own 60% of AirAsia, Inc. in equal partnership. The remaining 40% is owned by AirAsia Berhad. 3. Relevance of the Philippine population in the regional LCCs interest of operation According to the Pacific Asia Travel Association, as of 2011, there are 114 million online visitors who check out the internet for Airlines which are aged 15 and above and who have internet access in schools, works, homes, etc.In the Philippines, 11% of the total population has access to the internet and check out these sites for low-cost airfares. This study shows that the higher the population is the more online hits and the more famous the air carrier gets when it comes to low-cost fares. AirAsia has topped the list of most-visited websites with 3,380,000 visits and second is, Tiger Airways which increased 226% from 554,000 to 1,805,000. Low-cost airlines in Asia Pacific have already seen substantial growth, even just in the past year.With many of these carriers adopting highly web-centric models, it is significant that they attract more than their fair share of the young Internet users in the region. For these young travellers, low-cost airlines may be the first time that they have to book and buy their own travel, providing for many the portal into continued use of the web as an e-commerce channel. Significant upside in the market remains as Internet penetration increases in the region, and people who could not afford to travel before can now take cheaper flights.The younger ge neration as well as the continued improvements in site usability and security will also begin to influence older Internet users to adopt the web as a channel for researching and booking travel. PATA sees low-cost carriers as an increasingly important part of the travel ecosystem in Asia Pacific and this study has proven that, remarks John Koldowski, Deputy Chief Executive Officer and Head, Office of Strategy Management, PATA. As consumers across demographic segments continue to turn to the web for their travel needs, it