4M tourists found the PHL ‘fun’ in 2011

(The main gate to Fort Santiago in Intramuros, a popular tourist site in Manila and the seat of government during the Spanish period. National hero Jose Rizal was imprisoned at the fort, which now displays various Rizal memorabilia.)
CLOSE to 4 million tourists apparently found the Philippines “fun” in 2011, with the bulk coming from three major markets—Korea, the United States and Japan.

The Department of Tourism said this surpassed its 3.7-million target for that year, and was higher by 12 percent than the 3.5 million who arrived in 2010.

“When the industry exceeds expectations as it had done last year, we feel very encouraged. And with the overwhelming response to our new brand campaign launched last month, we know that we have broken ground on crowdsourcing. The people’s campaign will help bring more numbers,” said Tourism Secretary Ramon Jimenez Jr. in a statement.

The DOT launched its “It’s more fun in the Philippines” brand campaign in January, using social networking as its platform. By April this year, it will roll out its actual campaign using traditional media such as television commercials, billboards and posters, targeting major target markets in North America, Europe, Asia and the Middle East.

Jimenez expressed confidence that another record-breaking year will be achieved in 2012 once the new brand campaign is fully implemented. “Our marketing resource has grown exponentially because of other people’s contributions in kind. We will continue to build on these positive energies to attract 4.2 million this year.”

As a regional group, East Asia accounted for almost 47 percent or 1.84 million of the visitors in 2011. December proved to be the strongest month for tourists with 394,567 recorded.

The country’s top 10 markets in 2011 were: Korea with 925,204 arrivals representing 23.6 percent of the market share; US at 624,527 (15.9 percent); Japan 375,496 (9.6 percent); China 243,137 (6.2 percent); Taiwan 181,738 (4.6 percent); Australia 170,736 (4.4 percent); Singapore 137,802 (3.5 percent); Canada 117,423 (3 percent); Hong Kong 112,106 (2.9 percent); and the United Kingdom 104,466 (2.7 percent). (See attached Scribd document at the end of story.)

(Aileen Clemente, president of the Philippine Travel Agencies Association)

Meanwhile, a travel executive said it will take more than a slogan to sell the country to tourists, but was hopeful the DOT would hit its arrivals target this year.

“There was a launch of a slogan, but this is not yet the strategy and campaign. No logo guide has yet been released, etc. We are waiting for these for implementation. I believe the tourism arrival targets can be achieved but it takes more than the tagline. This includes policy reforms [visa procurement etc.], infrastructure development, capacity to take tourists, etc. But I believe that if we want to achieve something, we are able to achieve it. So I am very hopeful,” said Aileen Clemente, president of Rajah Travel Corp. in an interview with the BusinessMirror.

Clemente, who is also president of the Philippine Travel Agencies Association, said traditional destinations such as Cebu, Bohol, Palawan, Davao, North Luzon and the Metro areas will still get bulk of the visitors this year. She attributed this to the better infrastructure in these areas.

“But there are other locales that are aggressive in tourism such as Legaspi, Marinduque, Aurora, Camarines Sur,” she noted.

Clemente added that Filipinos will be traveling more this year as low-cost carriers continue to offer affordable fares and new destinations within the country and to nearby regional destinations.

“I predict that Filipinos will increase their travels both within [the country] and outbound. There are more LCCs now which makes it relatively cheaper to travel around and out of the country and into more routes than in previous years,” she said.

The strong peso will also likely be a boon for travelers going abroad, she added.

Clemente disclosed that regional carriers will be slashing their fares by as much as 50 percent to be able to offer more affordable travel packages to visitors of the 19th Travel and Tour Expo from February 17 to 19 at the SMX Convention Center in Pasay City. (UPDATE: Philippine Airlines said it actually slashed its fares by as much as 70 percent.)

In a press briefing, she said: “We have a range of airlines participating in the travel fair from low-cost carriers to major carriers which will be giving the best value for your money.” She said long-haul carriers will be offering discounts from 10 percent to 20 percent.

The three-day event is expected to exceed last year’s more than 60,000 visitors from around the Philippines with over 450 booths featuring some 200 local and international organizations including travel agencies, airline companies, cruise operators, domestic tour operations, government agencies, embassies, national tourism organizations, hotels and resorts, international tour operators, travel shops and more, she said.

The travel fair with its theme “One Stop Shop to the World,” is co-organized with the DOT.

Clemente said the fair is seen generating P330 million in sales revenue, or “at least 10 percent higher” than sales recorded in 2010.

She noted that there were several new exciting destinations to be showcased at the travel fair, such as Hokkaido, one of those usually overlooked by frequent visitors to Japan. Most travelers to Japan, she said, would go to Osaka, Narita and Nagoya.

“Also, India is a newly launched route for PAL [Philippine Airlines] so we’re trying to intensify the promotion for that,” she added, even as both Indian and Philippine governments were working to ease the visa procedures in both countries.

Clemente also noted new destinations such as Legoland in Malaysia, as well as activities like “river cruising” in Europe and in Asia, as travel possibilities for Filipinos.

The annual Travel Tour Expo of the PTAA was conceptualized in 1994 to showcase the products and services of its members. Since then it has grown to be the ultimate destination for the most affordable travel deals and the prime marketplace for all destinations.

The expo is open to the public from 10 a.m. to 9 p.m. on February 17 and 18, and from 10 a.m. to 7 p.m. on February 19. A minimal entrance fee of P50 is charged regular visitors while senior citizens get a discounted rate of P20.

(My piece was originally published in the BusinessMirror on Feb. 15, 2012. Intramuros photo copyrighted by this blogger. Clemente photo courtesy PTAA.)

Philippines Tourist Arrivals Jan.-Dec. 2011
(Statistics courtesy Department of Tourism)

DOT chief eyed for Monetary Board vacancy

(A day before his resignation, DOT chief Bertie Lim attends the Philippine MICE Conference in Cebu City. Escorting him to the exhibit area is Cebu Gov. Gwen Garcia. Photo from Philippine MICECON FB page)

RESIGNED Tourism Secretary Alberto “Bertie” A. Lim is being eyed to occupy the third remaining vacant slot on the Monetary Board (MB), the policy-making body of the Bangko Sentral ng Pilipinas (BSP).

Several sources on Saturday confirmed that a recommendation to President Aquino was in the works. On Sunday a source in Mr. Aquino’s official family told the BusinessMirror: “I understand that’s what P-Noy has in mind for him,” indicating that the President had already approved the recommendation.

Lim reportedly has the backing of a number of Mr. Aquino’s own people, especially those from the “Balay” faction of Transportation Secretary Manuel A. Roxas II.

Contacted for comment on Saturday morning, Lim declined to say if he had been offered the job. “I believe it is more proper for P-Noy to respond to your query,” he said.

Asked, however, if he would accept the job if offered to him, Lim said: “It is a job that is less stressful and for which I am qualified to work in. So I would be inclined [to accept it] if it is offered.” Lim is an economics graduate of the Ateneo de Manila University.

The appointment to the MB is being played as a “graceful exit” for Lim from the Department of Tourism (DOT) on August 31, and a reward for his fervent dedication to Mr. Aquino whom he campaigned for in 2010. The tourism chief was part of the regular economic briefing group of Mr. Aquino, “working closely” with the latter even at the Times Street residence.

The appointment, however, could ruffle the feathers of some in the so-called Samar group of supporters of Mr. Aquino.

Lim’s rival for the MB post is former BSP Deputy Governor Armando Suratos, who retired from the monetary institution in December 2010. (UPDATE: Mr. Suratos is currently a consultant to the BSP.)

A career central banker and well-respected in his own circles, Suratos is rumored to have the backing of Sen. Ping Lacson, a distant relative; “brods” Executive Secretary Paquito Ochoa and Jesuit lawyer Fr. Joaquin Bernas, BSP sources said.

(The other contender to the BSP Monetary Board post is retired Bangko Sentral Deputy Gov. Andy Suratos. He is currently a consultant to the BSP. Photo from BSP)

Suratos studied law at the Ateneo and is member of the Fraternal Order of Utopia in the College of Law, of which Ochoa and Bernas are also members. Ochoa represents the so-called Samar faction of supporters in the Aquino administration.

But in a text message, Senator Lacson said of Suratos: “The name doesn’t ring a bell, and I have no knowledge whatsoever if, indeed, he is being eyed for the position.”

Understandably, BSP insiders are more welcoming of an ex-colleague on the MB, rather than an outsider like Lim. BSP Governor Amando Tetangco Jr. failed to respond to several text messages seeking his reaction to Lim’s rumored appointment. But one ranking BSP official offered his thoughts: “Lim is a good man. But we are talking of the Monetary Board. More serious and specialized stuff.”

This would be the third government post for Lim. His first government job was as director of the Civil Aeronautics Board under former President Gloria Macapagal-Arroyo. Before his appointment to the DOT, Lim was executive director of the influential Makati Business Club, a keen Mr. Aquino supporter.

Meanwhile, Lim clarified that the President didn’t “ask me to resign.” He had been rumored to be one of three on Mr. Aquino’s list of “headaches,” who only brought him “bad news.”

Retired advertising executive Ramon Jimenez is rumored to be taking over from Lim at the DOT, and was only waiting to be asked by Mr. Aquino, as of Friday afternoon.

‘He was smiling the whole day’
LIM’S resignation, announced on August 12, caught the public—including DOT employees and several tourism stakeholders—by surprise. He said he was doing so for “personal” reasons. “I would like to spend more time with my family. My responsibilities require a great deal of travel and time away from my loved ones,” he said.

A brother of broadcaster Cheche Lazaro, Lim has been married 39 years to the former Carla Campos Abreau. The couple’s children are already in their 20s and 30s, living abroad and pursuing their own careers; one of them is married and now has his own family.

The day before his resignation, Lim was in Cebu opening the MICE Philippines Conference, which was attended by a lot of tourism stakeholders, including a number of DOT officials.

In an interview, a tourism expert who was there said: “[Lim] didn’t look bothered to me. He even posed for pictures with delegates, though I noticed some sadness in his face. But he didn’t act like he was ready to quit.”

A tourism official who requested anonymity, said he and others had no inkling their boss would be resigning the next day. “He was smiling the whole day naman. And was chika-chika to many. He posed for photos until late Thursday night.”

(Participants to the Philippine MICE Conference in Cebu say they didn't notice anything unusual in the behavior of DOT Sec. Bertie Lim, seen smiling in this photo with some delegates from Davao. Only one 'noticed some sadness in his face. But he didn’t act like he was ready to quit.' Photo from Philippine MICECON)

Those who wanted Lim ousted virtually declared him “slow and incompetent” for the job, and had protested his advocacy of an “open skies” policy, later adopted by the President on a provincial “pocket-type scale. “

Also, the tourism chief earlier received flak for having given the go-signal for a failed tourism slogan, “Pilipinas Kay Ganda,” for which Undersecretary Vicente Romano took the fall.

Making enemies
THE Black and White Movement, of which Lim was a member, released a press statement after he announced his resignation, decrying the sinister forces that pushed him to resign.

“In the process of working in the government, Bertie made enemies from powerful vested interests that benefited from a regime of protectionism. And their constant attacks against Bertie made it increasingly more difficult for him to do his job,” it said.

Industry sources said the few vocal protestors claiming to represent the tourism industry had never once owned or worked in a tourism establishment. One who wanted Lim ousted even went to town with the media, but failed to mention that his group lost the bid for the national tourism development plan, the same sources added.

Jose Mari del Rosario, president of Microtel Development Corp., confirmed the staunch anti-open skies lobby to have Lim removed from the DOT. But he said, “that [open skies] policy is starting to benefit the hotel industry, at least in my case.” Del Rosario’s company manages several provincial hotels under the Microtel chain.

He believes Lim to be a “very straightforward and idealistic person. Medyo mahina lang ang personal PR, ‘di politiko like his predecessors”—echoing the assessment of other tourism stakeholders who liked him well enough, but was put off by the tourism chief’s lack of charisma.

“Sometimes he would attend our events,” said a well-known female hotelier, who requested anonymity, “and he would just keep to himself. He doesn’t really mingle with us. Of course, when you’re in tourism you have to be ma-PR!”

Aileen Clemente, president of the Philippine Travel Agencies Association, sees Lim’s resignation as another impediment in the progress of the tourism industry.

“The primary enterprises of the industry put emphasis in having continuity. The average tenure of the past secretaries in the department is two years, which is quite detrimental to the industry. Plans have been made in the past but little of which were geared to have long-term impact. The rest of the public always clamor for good marketing strategies, but to industry stakeholders, this is merely the tail-end of an honest-to-goodness strategic plan that tackles institutional reforms,” she said in a press statement.

“[More] than branding and marketing, there are so many issues that plague the industry. First, there needs to be more effort to remove the downgrading of the [Federal Aviation Authority] and the European ban…. Second, measures must be taken to remove or lessen the numerous hurdles and challenges in the procurement of visas by foreign nationals coming to the Philippines. Third, the government must understand the impact of the double taxation of airlines as well as the charging of the CIQ [Customs, Immigrations and Quarantine]. Fourth, it is essential to plan the various infrastructure that needs to be developed especially in terms of airports, roads, transport systems,” she added.

“Laying the groundwork does not only take time. Being saddled with this responsibility takes patience, organizational skills and leadership to ensure that it creates an effective plan in ensuring the success of tourism in the country. Part of this, Secretary Lim has already done. We just hope that it will be continued by his successor to the post.”

For his part, del Rosario stressed, “People like to put forward their opinions on how the tourism industry should be handled—thinking it’s just slogans or tag lines. But it starts with the proper infrastructure. And that’s what Bertie Lim was doing. Consider his background in running El Nido Resorts as a microcosm of Philippine tourism. It was a ‘can-do’ approach on purely private initiative but to make it work, look at the logistics they had to put in place to make it a success.”

In what now appears to be a flash of prescience, Lim, who was also forced out the Arroyo administration due to his “open skies” stance, told the BusinessMirror in November 2010: “The enemies of reform are still strong. So we expect it to be a continuing struggle.”

(My piece was published on the front page of the BusinessMirror, Aug. 15, 2011.)

(UPDATE): On Aug. 17, in an interview with Karen Davila on ANC's Headstart, Lim said President Aquino delayed taking action against TIEZA chief operating officer Mark Lapid, despite a COA report detailing the latter's alleged fund misuse, due to "bigger political considerations".

The day after, Malacañang denied Lim's statement, saying there was "no selective prosecution of officials".

I dunno if this recent revelation by Lim will affect his chances of being appointed to the Monetary Board. All I know is, the President doesn't take too kindly to criticism.)

Uptick in foreign leisure travels by Pinoys seen*

THE 39-year-old Rajah Travel Corp., a leading full-service travel agency in the country, sees an uptick in foreign travels by Filipinos this year, owing to the depreciated US dollar. This is projected to boost the travel firm’s bottom line by 30 percent, said its president, Aileen Clemente.

Clemente, who is also incoming president of the Philippine Travel Agencies Association (PTAA), is also optimistic that the 3.7-million target in tourist arrivals by the Department of Tourism for 2011 would be attained despite the scrapping of the “holiday economics” scheme of the previous administration.

In an interview, she told the BusinessMirror the changes in visa requirements for visiting Indians would be a big boost to tourist arrivals. “Any Indian national can stay here for 21 days. Conversely, the same is true for Filipinos visiting in India. And [Philippine Airlines] is now flying the route,” she said. “[This is a big market] both for corporate and leisure travelers because of the call centers [business-process outsourcing companies], because the backup of one [country] is the other—that’s India and the Philippines.”

She noted as well “huge investments” in the construction of resorts in the country, some of them with foreign owners who will tap the “database of their clients.”

Other factors that will enhance tourist arrivals to the Philippines, Clemente said, are the forthcoming daily flights of All Nippon Airways (ANA) between Narita and Manila, as well as the recently announced “pocket open skies” policy of the Aquino government.

Separately, Tourism Secretary Alberto Lim said: “This new service between Narita and Manila will help us obtain a larger share of the Japanese outbound travelers. We are confident that the direct link, complemented by efforts of the Jata [Japan Association of Travel Agents] intermediaries, will stimulate stronger traffic from this major source market.” ANA flights will commence on February 27, with the inaugural flight bringing in Jata chairman Akira Kanai. Jata is the biggest association of travel and tour operators, accommodation and transportation providers and even academic and legal institutions in Japan.

According to Department of Tourism (DOT) data, Japan is the third-largest tourist market for the Philippines, growing 10.4 percent to 358,744 visitors in 2010, from 2009. Japan also accounts for a 10.2-percent share of total tourist arrivals in 2010, which reached 3.52 million, surpassing the DOT’s target of 3.3 million. Korea accounted for the largest share of total arrivals at 740,662 or 21 percent, followed by the US, at 600,165 (17 percent).

Currently, four airlines combine for 61 flights weekly from Japan to the Philippines. PAL accounts for 32, Japan Airlines for 14, Delta Air Lines for 12 and Cebu Pacific for three.

(AILEEN CLEMENTE, left, incoming president of the PTAA, and Ma. Paz Alberto, chair of the 18th Travel Tour Expo and outgoing president of the PTAA, brief the press on the 18th Travel Tour Expo 2011, on Feb. 8, 2011. Photo by NONIE REYES)

For her part, Clemente said while the issue of the pocket open skies remains “quite controversial…if it is studied properly, [critics would] know its benefits to economic growth, even if confined to say, Clark [Pampanga].” In pursuing a liberalized aviation sector, the Aquino administration has decided to give flying frequencies to airlines of countries which will give reciprocal flying rights to Philippine carriers.

Per President Aquino’s Executive Order 84 issued in December, there are only seven three-day weekends in 2011 as most holidays are now pegged on their actual dates. Former President Arroyo practiced what was dubbed “holiday economics,” or moving some holidays to the nearest Monday or Friday, which allowed Filipinos to take vacations. Many tourism establishments and travel agencies credited the boost in domestic tourism sales to this practice.

Meanwhile, Rajah Travel’s optimistic projection for 2011 is anchored on an anticipated boost in foreign travels by Filipinos. Tour packages under its “Insight Vacations” brand, which are premier escorted tours to Europe, the US and Canada, are now selling 17 percent lower than usual rates. “We have good rates right now,” Clemente said, adding that Insight Vacations tours are “really a worthwhile investment” for Filipino travelers. Aside from Insight Vacations, the firm also targets middle market, value travelers, luxury travelers and domestic tourists via its other travel brands.

In 2010 the travel agency’s sales were up only 12 percent, due to sluggish foreign travels. Several international airlines had to reduce or halt some flights last year due to the ash clouds which were formed from the Iceland volcanic eruption. While the firm’s vacation packages to the Middle East may be affected by the current political troubles in the area, Clemente still remained “confident we can attain our 30-percent target [this year] because of the depreciation of the dollar,” making foreign travel more accessible to a wider market. “We have good deals,” she stressed.

She said Filipino first-time travelers usually go first around Southeast Asia. “Those who have been to Southeast Asia will go to other parts of Asia, and the most popular [destinations] are Japan, Korea and China. Those who can go farther will go to Australia, the Middle East, then the Mediterreanean, then Europe.”

Rajah Travel is one of the major participants in the 18th Philippine Travel and Tourism Expo from February 18 to 20 at the SMX Convention Center, which is organized by the PTAA. Over 250 companies—travel agencies, tour operators, as well as local and international airlines, hotels and resorts—will be participating in the travel fair.

Exhibitors will offer the public heavily discounted travel packages, including airfare and accommodations, only on those expo dates, the PTAA said. About P300 million in sales are projected to be generated from this year’s expo, up 42 percent from its P210 million sales in 2010.

*(Forget to post this earlier. My piece was originally published in the BusinessMirror on Feb. 17, 2011.)