PH share in tourism in Asia Pacific is 1.1%

BY GENIVI FACTAO

PASSENGER transport and international tourist arrivals in Asia-Pacific reached in 2010 a historic high of 204 million, which were 20 million higher than in 2008, with Asia as the world’s strongest-growing region inthe past two years.

Receipts grew 13 percent in real terms to $243 billion in Asia Pacific. The Philippines’ share in the $243 billion receipts of Asia Pacific in 2010 was 1.1 percentof the total. The 3.5 million tourist arrivals in the Philippines translate to a market share of 1.7 percent in the Asia Pacific.

It took the Philippines six years from 2005 to 2010 to attract 18.233 million tourists, or an average of 3 million a year.

They spent $15.102 billion with each of them leaving in the Philippines slightly more than $80 million during each tourist stay in the country, according to figures of the Department of Tourism (DOT).

Tourist arrivals appear erratic although in 2010, there was an increase of more than 400,000 warm bodies.

However, the expenditures during their stay, which the tourism department did not say how long, do not show any remarkable increase in spite of the appreciation of the peso from P53.06 in 2005 to P43.88 to the dollar in 2010.

Theoretically, there would have been a modest increase in 2010 because the tourists were getting P9 less to the dollar as a result of the appreciation.

The expenditures clearly suggest that the tourists spent more on air fare or ship than on shopping in the Philippines.

Sources in the tourism business say that the foreign visitors that the country is getting are not the spendthrift type. They are mostly Asians from South Korea and Japan.

The country’s revenues from tourism have been erratic from 2005 to 2010, although there was a modest increase in receipts, but this was mainly a function ofthe bigger number of warm foreign bodies who came to visit the Philippines.

Tourism Assistant Secretary Domingo Ramon Enerio III reported that in 2010, tourist receipts reached $2.49 billion, 11.37 percent higher than $2.235 billion in 2009.

Expenditures averaged more than $80 a day. They stayed at an average length of 8.83 days, according Tourism Secretary Ramon Jimenez who projected that last year’s arrivals could easily reach 3.8 million or 300,000 more than the previous year.

People in the tourism business who are mostly members of the Philippine Travel Agencies Association (PTAA) expect that tourist receipts would reach $2.52 billion by the end of 2011.

Though revenues showed increases since 2009, thefigure was lower compared with the pre-crisis level of$2.957 billion in 2007. Tourist arrivals at that time were at 3.091 million, lower compared with 2010’s 3.52 million.

Year 2010 posted a modest growth compared from 2005 when tourists spent $2.236 billion visiting attractions or shopping or both. The bulk of the expenditures, however, might have been spent in five-star or lower category hotels.

The World Tourism Organization (UNWTO) reported that revenues from world tourism totaled $1 trillion in 2010 or about $3 billion per day for inbound tourism.

Data from the DOT show growth in hotel occupancy rate for economy, standard and deluxe with 5.94 percent, 28.43 percent and 57.08 percent respectively in Metro Manila from January to November 2011 compared with the same period in 2010 of 4.92 percent (economy), 28.02 percent (standard) and 55.06 percent (deluxe).

Occupancy rates for first-class hotel rooms declined to 8.55 percent from 12 percent in 2010.

The number of hotels was fewer, 79 in 2009 compared with 83 in 2010.

Last year, deluxe rooms were placed at 8,887, up 6.52 percent from 8,343 in 2010. First-class rooms were at 1,331; standard rooms at 4,426 and economy at 925.

The total room demand in the Northern Philippines for 2012 is pegged at 42,225 as against the present capacity of 40,639 or just about half of rooms available.

In Central Philippines, there is overcapacity with supply reaching 53,599 as against the demand of 38,853.

It noted a lack of accommodations in Southern Philippines, with only 9,465 as against the demand of 13,158 rooms.

Based on the National Tourism Development Plan (NTDP) for 2011-2016, the length of stay of tourists is expected to be shorter as share of regional international arrivals increases.

The average expenditure per day will also be under pressure as the volume of group-based tourism increases. Under the group system, part of the expenditures is prepaid at the source.

Enerio said the countries with the most number oflong staying visitors in 2010 were in North Asia suchas China, Taiwan and South Korea; Northern America, where most of the overseas Filipinos and balikbayan come from; Europe which includes the United Kingdom, France, Italy, Germany and others, based on the DOT visitors survey.

By age group, most of the tourists were 25-54 years, which comprised almost 65 percent of the total.

Visitors come for the purpose of tourism, 69 percent; honeymoon, 2 percent; visiting family and friends, 6 percent; business trip 12 percent; training/inspection trips 2 percent; conference/ attendance 2 percent; overseas study 1 percent; other 4 percent no answer 2 percent.

The Management Association of the Philippines (MAP) said it is projected that 100 million Chinese will be traveling throughout Asia by the year 2015.

"The Philippines should be able to attract 10 million ofthese travelers to our shores. China is virtually landlocked and our tropical weather and beaches are natural attractions. This Chinese market is known also to respond positively to gaming, good food, shopping," the group said.