By Ma. Stella F. Arnaldo / Special to the BusinessMirror
THE Department of Tourism (DOT) is developing new markets to further increase visitor arrivals for 2015, with special focus on tourists coming from the Association of Southeast Asian Nations (Asean), Europe, former Soviet Union states and the Middle East.
The efforts have been boosted with a P346-million separate line-item budget under the DOT’s appropriations for 2015, official documents show. “This is the first time that there is a separate line item for the market development group,” confirmed DOT Undersecretary for Tourism Development Benito C. Bengzon Jr. to the BusinessMirror. The amount accounts for some 15 percent of the P2.3-billion DOT budget in this year’s General Appropriations Act (GAA).
In his presentation at the AIM Conference Center on “The Future of the Asean Tourism Industry” last Friday, Bengzon said the agency is looking at “new opportunity markets” that could be a strong source for visitors. These are Russia (32,087 arrivals in 2014); India (61,152); the Middle East, specifically Saudi Arabia (43,473); the United Arab Emirates (17,000); and, to an extent, Turkey (13,077); Thailand (45,943); Indonesia (46,757); Vietnam (29,800); and Europe, particularly France (38,945) and Spain (19,353).
The DOT decided to aim for these new opportunity markets, he explained, after looking at their “growth potential, cycle and stage; their length of stay in the country; and their spending capacity.” These new markets were also identified after studying if the Philippines has a “price advantage, and if we have the [tourism] products that they need [versus our competitors].”
Travelers from these new opportunity markets, Bengzon underscored, have been growing between 10 percent and 40 percent in arrivals in the Philippines. “Before the ruble dropped,” he noted, “Russian visitor arrivals were growing by 30 percent. They would often stay in a resort, order in, and stay in the country for 10 to 12 days.” Russia is among the top 10 visitor markets for Boracay, Palawan and Bicol.
He also described India as a “sleeping giant,” with its population of 350 million. “Of all the things the Indians asked, it was connectivity and the visa that was raised.” He said the latter issue will hopefully be resolved soon
“The opportunities for growth are just enormous,” said Bengzon, especially for intra-Asean tourism. “If you look at the intra-Asean share of the Philippines, we’re only doing 10 percent.” In comparison, he said, Thailand receives a 70-percent to 80-percent share of the intra-Asean market. Aside from Thailand, Vietnam and Indonesia, other Asean member-nations are Brunei Darussalama, Cambodia, Lao PDR, Malaysia, Myanmar and Singapore. Malaysia and Singapore are already among the top 10 visitor markets for the Philippines.
“We’re also taking a closer look at France and Spain, which are lucrative markets for the Philippines,” he said. French tourists, he stressed, are among the top 10 visitor markets of Bohol, Palawan, Camarines Sur, Camiguin and Negros Oriental.
Aside from developing the new opportunity markets, the P346-million market-development budget of the DOT, will also create promotion efforts for medical, diving, English as a Second Language, and cruise tourism; and fund trade support activities for new routes, cultural and travel exchanges, among others. A DOT source separately cautioned, however, that the separate item for market development in the agency’s budget this year “is not yet a permanent feature as it is subject to reportorial requirements and performance measures.”
Under this year’s GAA, the DOT is committed to attract 8.2-million foreign visitors and 52-million domestic tourists. It is also targeting to generate P350.4 billion in foreign tourism receipts and some P1.61 trillion in domestic tourism receipts, raising the gross value-added of tourism to P974 billion and contributing 7.8 percent to the country’s GDP, and increasing tourism employment to 6.3 million, equivalent to a 16.2-percent share to national employment.