DOT to decide new slogan this week (UPDATED)

THE Department of Tourism is currently weighing the proposals of eight short-listed advertising agencies that submitted bids for the P5.6-million Philippines brand campaign project.

The agency’s Special Bids and Awards Committee (SBAC) has until Wednesday to decide on the winning slogan and brand campaign from those proposed by eight of the country’s leading advertising agencies, according to Tourism Assistant Secretary Domingo Ramon Enerio III. Enerio oversees the branding campaign project, and is a member of the five-man SBAC.

The eight agencies—Dentsu Philippines Inc., J. Romero & Associates Inc., Lowe Inc., BBDO Guerrero Proximity Philippines Inc., DDB Philipines Inc., WPP/J. Walter Thompson, Young & Rubicam Philippines Inc., and Aspac Advertising Inc.—made their advertising pitches to the SBAC on November 21 and 22, according to agency sources. They were earlier shortlisted from 13 agencies which had indicated their interest to participate in the bid.

In a text message, Tourism Secretary Ramon Jimenez Jr., who sat in the presentations of the eight ad agencies, told the BusinessMirror that the proposed slogans and advertising concepts were all excellent.

“Magaganda lahat. They were all rooted in solid strategy and showed the hard work everyone put in,” he said. “We are now in a difficult process of selecting a winner.”

In previous media interviews, the DOT chief promised to announce a new tourism slogan before Christmas.

Asked how the SBAC will be choosing the new tourism slogan and brand campaign, Enerio explained that it will be “a collegial decision with major directions coming from the secretary.” He declined to reveal any more details of the pitches made by the advertising agencies due to the “confidentiality undertaking” he had signed, but promised that “all will soon be revealed.”

Unlike the “Pilipinas Kay Ganda” slogan prematurely launched during the tenure of Tourism Secretary Alberto Lim, and which was later scrapped due to a major industry outcry, the new slogan would be tested, and consultations held with industry stakeholders, Enerio said.

“Consultations are essential to success, acceptance, and ownership of the brand by all stakeholders. For sure, the [new] brand will be vetted extensively before being announced,” he said.

A separate bidding will be conducted for the supplier of the advertising materials such as television commercials, brochures, posters, and other collateral materials. It will probably take a year before the new advertising campaign will be finalized and rolled out to the target markets.

The P5.6-million “Philippine Branding Campaign focusing on Tourism” is the DOT’s third try at creating a new tourism slogan for the country, which for years, has been using the “Wow Philippines” campaign crafted by BBDO Guerrero in 2007.

The Philippines, with its lackluster manufacturing sector and sluggish agricultural performance, has set its sights on the tourism industry as a new engineer of economic growth. At present, the sector accounts for less than six percent of the gross domestic product, unlike other countries such as Spain, Thailand, Singapore, etc., whose tourism sectors represent over 40 percent of GDP.

Visitor arrivals from January to September this year jumped 12 percent to 2.89 million from 2.58 million in the same period last year. Jimenez has announced a 4-million target for tourist arrivals in 2012.

The Philippines hopes to attract 6 million tourist arrivals by 2016, or when President Aquino steps down from office.

However, a meager tourism promotions budget, lack of adequate infrastructure and facilities, and conflicting government policies could stand in the way of achieving those numbers.

The DOT for instance, has had to make do with an annual budget of P2 billion allocated by Congress.

The Ninoy Aquino International Airport (Naia), the gateway to the country, is old and decrepit, with a runway too small to accommodate the growing number of flights in and out of Manila. Some of its passenger terminals such as Naia 1, for instance, have been dubbed the “worst in the world” by international media outfits and travel bloggers.

And while the Aquino administration has just implemented a “pocket open skies” policy to encourage more international carriers to come to the Philippines, the government continues to charge taxes and fees on foreign airlines which unnecessarily increases the latter’s operating expenses. Only recently, Air France-KLM announced it would be dropping its direct flights to the Philippines due to the continued imposition of these taxes.

(My story was published in the BusinessMirror, Nov. 28, 2011.)

* * * *
(UPDATE) Checked with Asec. Enerio just today, Dec. 2, and he said "deliberations are ongoing. Sec. [Jimenez] is out of town, so we continue to evaluate up to next week."

No fund misallocation in Mark Lapid case – DOT chief

FOR now, Mark Lapid is staying on as general manager of the Tourism Infrastruture and Zone Authority (Tieza), formerly the Philippine Tourism Authority.

Thus said Ramon Jimenez Jr., acting secretary of the Department of Tourism, in an extensive interview with this writer, for BusinessMirror.

Jimenez also said there were no issues of fund irregularities with regards to the Commission on Audit’s report on Lapid. “The problems are administrative; we're not talking here of somebody stealing money, and that's why, in fact, he was sanctioned. Certain movements have been restricted already,” the DOT chief stressed.

He added that he was “working very well” with Lapid.

As per the Tourism Act of 2009, Tieza is “mandated to designate, regulate and supervise the tourism enterprise zones established under this Act, as well as develop, manage and supervise tourism infrastructure projects in the country. It shall supervise and regulate the cultural, economic and environmentally sustainable development of TEZs toward the primary objective of encouraging investments therein.”

It would be recalled that Jimenez’s predecessor, Alberto Lim, asserted that President Aquino had failed to act on the COA report on Lapid as the latter’s father, Sen. Lito Lapid’s vote was needed to approve the postponement of the Autonomous Region of Muslim Mindanao elections.

In the same interview, Jimenez also said changes were in store for the controversial Tourism Congress (TC). A number of tourism officials and private tourism stakeholders have criticized that the current crop of TC representatives were not “truly representative” of the sector.

Hoteliers said their sector, for instance, were not represented in the TC. “And yet they have someone representing the real estate sector sitting as one of its officials,” remarked the general manager of a five-star hotel, who declined to be identified.

The amended Sec. 137 of the Implementing Rules and Regulations of the Tourism Act of 2009 calls for the DOT Secretary to convene the Tourism Congress and their duly representative members. Thereafter, he is supposed to preside over the election of the group’s new president, as well as its other officers.

“The fact of the matter is, the current congress, their terms expire in November. Now I am not inclined to wait for that. What I’m more inclined is to get the parties together before that time, because there is a very unique opportunity for all of them to participate in a genuine transition as dictated by the new IRR,” Jimenez said.

The TC is a key body in the tourism industry, which is why its previous representation became very contentious. It recommends candidates for the respective boards of the Tieza, Duty Free Philippines Corp. and Tourism Promotions Board. (formerly the Philippine Convention and Visitors Corp.).

With proper candidates to the TC and said DOT-attached agencies, the private sector is given a pivotal role in directing the course of tourism promotions and marketing of the country.

In the interview, Jimenez also outlines his priority programs, his vision for Intramuros, and how he intends to use the Rizal Park as a “national laboratory” to train local governments in the standards of establishing tourism facilities. (Click BusinessMirror Sunday for the rest of the interview.)

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.)

Telcos invest P75M in tourism

SMART Communications Inc., and Globe Telecom Inc. are investing a total P75 million this year to support the various marketing campaigns of the Department of Tourism (DOT) to boost domestic travel and foreign tourist arrivals.

This developed as Tourism Secretary Alberto A. Lim told a press briefing on Monday that the Philippines was on track in attracting more tourists this year, with projected arrivals to exceed the 3.52 million in 2010.

He said the DOT has tied up with Smart for a P50-million domestic tourism campaign dubbed “Pilipinas, Tara Na.” Under the program, Smart and the DOT have jointly produced print and TV advertisements and billboards focusing on the country’s culture, history, ecotourism, nature and adventure.

“The growth of domestic tourism has been fantastic,” Lim said. Of the P912-billion gross income earned by the economy in 2009, for instance, he said, “P800 billion came from domestic tourism. So we want to give more emphasis to domestic tourism now than in the past.”

He said the budget air fares were possibly behind the jump in the number of domestic travelers, making travel possible for even the youth.

Under the “Pilipinas, Tara Na” campaign, Smart subscribers will also be able to text a number to get information to whichever tourist destination they are currently located at.

The DOT has also partnered with Globe for an international marketing campaign as part of the agency’s Pinoy Homecoming program this year. “This is an international promotion to bring back overseas Filipinos mostly from the US. Part of Globe’s budget is to give arriving tourists a goody bag that includes Globe SIM card, discount coupon and others,” Lim added.


Of its P25-million budget for the program, Globe will also be creating TV commercials that will air on The Filipino Channel “to promote the program to the overseas Filipinos, especially those from the US,” explained DOT Assistant Secretary Domingo Ramon C. Enerio III.

To boost this program, the DOT has requested President Aquino to sign a proclamation to declare 2011-16 as Pinoy Homecoming years. “This way, it will be a continuing program to encourage balikbayan from the US to come home and avail themselves of various discounts and promotions by hotels, restaurants, and other tourism establishments,” he added.

While the DOT has started marketing the program to Filipino-Americans, Enerio said the succeeding years will target Filipinos in Europe, the Middle East and Asia as well.

Lim also said the DOT has endorsed the tourism advocacy campaign of personal health-care company Johnson& Johnson called “Basta Pinas,” which was launched in March. “Their web site will feature conversations about tourism sites and getting the public to explore the Philippines with fresh perspectives.”

Meanwhile, Lim said visitor arrivals from January to April 2011 jumped a substantial 13.3 percent, to 1.31 million.

“By reaching this figure in the first four months of the year alone, our 3.74-million target for the year is well within reach. Our continuing efforts on the international front, especially in trade fairs abroad, will ensure that the target is met,” he said.

According to data from the DOT, tourists from Korea topped the arrivals at 286,018, up by 28.35 percent from the same period last year. They were followed by tourists from the United States at 229,200 visitors; Japan at 129,223; China 71,113; Australia, 56,681; Taiwan, 55,662; Canada, 44,978; Singapore, 42,680; Hong Kong 39,535; and United Kingdom, 36,980.

Tourists from Korea, the U.S., and Japan accounted for close to half of the arrivals in the four-month period.

(My piece was originally published in the BusinessMirror, May 31, 2011. Tourist arrivals data courtesy Dept. of Tourism.)

Naia 3, tourism assets’ sale eyed

(Photo of NAIA 3 from Urban Monologues.)
THE Aquino administration is considering to privatize the Ninoy Aquino International Airport Terminal 3 (Naia 3) and other tourism establishments, many of which were built under the term of the late strongman President Marcos.

In a lecture before students and faculty of the University of the Philippines’ Asian Institute of Tourism on Tuesday, Tourism Secretary Alberto Lim said government wants to fully operate the Naia 3, built by the Philippine International Air Terminals Co. (Piatco), by June 2012.

“By June next year we are going to open it fully. Actually, it’s being partially operated. There is no more question of ownership; the government is owning it and will fix it, and then will privatize it….”

Cebu Pacific and Air Philippines Express currently operate out of the Naia 3. The dispute over its ownership has deterred many foreign carriers from transferring their flights there. Piatco is coowned by Philippine firm PairCargo and Germany’s Fraport AG, but the Philippine government took over the Naia 3 in 2003, on grounds that there were illegal revisions in the government’s contract with the consortium.

In an interview with the BusinessMirror, Lim explained that fixing the terminal will likely involve the original contractor, Takenaka Corp. Details have yet to be worked out whether the Japanese firm will undertake the repairs solely “so government will not spend,” or if the government will spend for the repairs, then bid out the management of the terminal, he said.

He said Asia’s Emerging Dragon Corp. (AEDC) now owned by tycoon Lucio Tan is welcome to bid again for the Naia 3 management.

When the Ramos administration raised the idea of building Naia 3 in 1996, five of the country’s tycoons formed AEDC and submitted a build-operate-transfer proposal for the project. Being an unsolicited proposal, the project was subjected to a Swiss challenge which Piatco won. Since then, AEDC has been trying to claim ownership of Naia 3.

Meanwhile, other tourism establishments owned by the government through the Tourism Infrastructure and Enterprise Zone Authority (formerly the Philippine Tourism Authority) set for possible privatization are the Banawe Hotel and Youth Hostel in Ifugao, Balicasag Island Dive Resort in Bohol, Gardens of Malasag Ecotourism Village in Cagayan de Oro, MacArthur Park Beach Resort in Leyte, Club Intramuros Golf Course in Manila and the Zamboanga Golf Course.

“What I’d like to do is to privatize, not compete, with the private sector in running tourism resorts. Before, President Marcos set up the Philippine Tourism Authority, which set up the AIT, in order to get its job started, built resorts in Banawe, in Bohol.

“But the government is not good at running a business. So I think, we can get enough visitors. If we don’t market it properly or aggressively or readily, this is not financially viable, or the government keeps subsidizing [their operations]….That’s why we have to privatize some of the assets that we have. The government should play an enabling role, not competing with the private sector,” Lim stressed.

(Tourism Secretary Alberto Lim addresses faculty and students of the UP-Asian Institute of Tourism. Photo by AIT.)

He said the Department of Tourism (DOT) would be speaking to the Department of Finance regarding the procedures to privatize the government-owned hotels and resorts.

“My goal is to sell these assets by 2016, and raise funds for the government,” Lim said.

He added the DOT will also conduct a “highest invest-use study” for these assets “to get maximum returns for the government,” before they are sold.

There has yet to be an assessment how much these DOT assets are worth, which is needed so a floor price can be set before these are privatized.

In his lecture, the Tourism secretary also outlined the strategic directions to enable the country to reach the Aquino administration’s targeted 6-million tourist arrivals by 2016:

• Prioritizing tourism infrastructure, and connecting destinations by an improved road network as well as airports;

• Diversifying tourism products by and “go beyond the sun and the sea,” e.g., nature, culture, adventure, sports, health and wellness, retirement, and MICE (meetings, incentives, conferencing, exhibitions);

• Encouraging investments in accommodation facilities, tourism enterprises zones;

• Upgrading standards for accommodations and services on a par with international standards;

• Implementing a focused and sustained international and domestic promotion program in existing and emerging markets via travel fairs, road shows and missions; traditional media, and new media (Internet, social networking, etc.); and

• Engaging various sectors (e.g., national government, local government, private sector, nongovernment organizations, academe and local community) in tourism development.

“We are a country with many young people who don’t have jobs. So instead of exporting our young people abroad, why don’t we bring the old people of different countries here, and we can give them care?” Lim asked, in suggesting that the Philippines offers itself as a retirement haven.

While MICE is an old product, he added that the Philippines has lost its “competitive edge” in this category vis-à-vis its other neighbors, such as Malaysia and Singapore.

“We used to be No.1 in MICE. In the 1970s, we were No. 1 in conventions. We built the PICC [Philippine International Convention Center], and continue to pay the interest and loans, we became good at hosting meetings. So we were able to pay off the interest…. I want to go back to MICE [because] this is one of the high-value areas of the market. The MICE visitors pay a lot of money, stay longer, go into convention tours, stay in five-star hotels and do a lot of shopping.”

(Originally published in the front page of the BusinessMirror, Feb. 25, 2011.)

Anatomy of a failed tourism brand*

(I earlier blogged about this interview on Nov. 26, 2010, found here.)

What went on in the making of 'Pilipinas Kay Ganda'
*Originally published in the BusinessMirror Marketing page, Nov. 29, 2010. Correction, P600 million should have read P600,000. Apologies to the DOT, Ms. Villapando and the readers.

(Ms. Ong's own defense in her column, Citizen in the Phil. Star, Nov. 27. 2010. Then a reaction to Ms. Ong by The Warrior Lawyer in Pilipinas Kay Praning.)

Why Campaigns & Grey proposed the ‘Pilipinas Kay Ganda’ slogan*

(One of four 'exploratory advertising concepts' proposed by Campaigns & Grey to the Dept. of Tourism. The others are here. All images courtesy C&G.)

AS I was listening to Yoly Ong, group chair of advertising giant Campaigns & Grey explain why they had proposed the “Pilipinas Kay Ganda” brand to the Department of Tourism – aside from four other brands btw, all in English – I was almost half-convinced that it could’ve worked.

I know, I know – most of you probably don’t want to hear about it anymore. But apparently there was some sound basis for creating the brand, despite an admitted lack of research and test inputs from the targeted market, which was apparently, the Filipino migrant communities (Fil-migs), especially those residing in North America.

In 2009, as per data from the DOT, there were 3 million tourist arrivals, down 4% from 2008. Of last year’s arrivals, the largest chunk at 582,537 (19.31% of total) came from the United States. This was followed by Korea (497,936), Japan (324,960), China (155,019), and Australia (132,330). Tourists from Hong Kong were 122,786, accounting for only 4% of total arrivals, even before the botched hostage rescue on Aug. 23 occurred. Overseas Filipinos, or Philippine passport holders permanently residing abroad (excludes overseas workers), who visited in 2009 were 197,921, up 1.35% from 2008.

Ong said she didn't understand why there was so much anger at the use of the Filipino language. Tourism stakeholders and many bloggers, including yours truly, felt English should be the language used in the DOT campaign. "Let’s say that roughly, 20% of the Fil-migs understand Tagalog. Koreans, Japanese, and Chinese [which DOT was targeting for its campaign], do not understand English either!” she said.

“If we go by that argument that Tagalog only appeals to our fellow Filipinos, look at the data. The 580,000 visitors from North America are what DOT calls ‘low-lying fruit’. Do you know how many Fil-migs there are? Almost 10 million! So if we just got the 10M to come, just once, we would have a 300% increase [in tourist arrivals]! And we would be no. 2 [in Asia] like Singapore. Because by their numbers, there were 23 million [arrivals in] Malaysia, No. 2 was Singapore at 9 million, No. 3 Thailand, No. 4 was Indonesia, No. 5 was Vietnam! Only 700,000 tourists more than us last year!,” she added.

I was interviewing Ong, along with Marilyn Villapando, C&G chief of corporate affairs on Nov. 23, Tuesday, at the Edsa Shangri-La Hotel where they were holding a planning seminar. Four hours later, DOT Undersecretary for Planning and Promotions Vicente “Enteng” Romano III, irrevocably resigned his position, accepting full responsibility for the PKG branding exercise. He later admitted in his press briefing, that it was rushed.

(Yolanda "Yoly" Villanueva-Ong, C&G group chairperson)

Inspired by Pacquiao, Black-Eyed Peas
Don’t get me wrong. I don’t think the PKG brand is the best slogan ever created in the history of Philippine tourism, but neither did C&G apparently. The agency actually submitted four other “advertising concepts” to Romano. “We chose five [concepts], because normally, what we do is we try to go to the closest to where they came from, and close to what is generally expected of a tourism campaign, which is the ‘adjective campaign’ – ‘Amazing’, ‘Incredible’, ‘Charming’, whatever, ‘Truly Asia’,” Ong explained.

“And it was going wilder and wilder. Last one was really a trial. ‘What if we created a campaign that had primarily a Tagalog word?’ Kasi nga, we don’t have research. We were only using our own insights.” She added that they took inspiration from one of Black-eyed Peas’ hits “Bebot”, composed by Filipino-American apl.de.ap, and had in mind Manny Pacquiao’s recent string of victories versus his boxing opponents.

“So we had a feeling that there was a curiousity about the Philippines and maybe ‘Kay Ganda’ would become like ‘Aloha’, but always with a translation incorporated in the logo. In fact, if we were to do a storyboard, it would have included Pacquiao, Lea (Salonga), Arnel (Pineda), Charice…interspersed with sceneries with e.g. Koreans, saying ‘Kay Ganda’ in their funny accents,” she further expounded.

The usual branding process
Under normal circumstances, especially for private sector clients, planning for a whole brand concept takes about a year, Ong said. This comes after an intense three years conceptualization of the vision for a new brand, as was the case for Procter & Gamble, a C&G client. “And as it comes closer, they flesh it out with programs and then everything. Nothing airs without testing,” she emphasized.

She added that if the client is going to tap a new market, it “mines insights” from targeted consumers. “Of course, not everybody can afford that kind of process. Sometimes we do shortcut it, but always, always, always, before you produce, before you spend one centavo on any production before airing, you test. That is something we will never violate. Even on a 90-day political campaign, we will test it first.”

Ong said, Romano contacted them in August asking if the agency could do a “Brand Architecture.” He wanted to know the “strategic approach” to arrive at a new brand to replace “WOW Philippines”.

“In fairness, he asked us to write out a TOR (terms of reference),” she said. So they sent him a proposal in early September priced at “P550,000 plus VAT. That’s the process. And the end of that is directional. It was with the understanding that it was a friendly-friendly rate. And he said he’ll find a way to have it approved,” Villapando said. So this was what Romano was referring to when he told me that the branding concept, including research, was “less than a million pesos, a friendly rate.”

Soon after, DOT was rushing them to come up with “Exploratory Advertising Concepts” ('adcepts') instead, which were the five that the agency eventually submitted. Ong said they had just a week to come up w/ those adcepts. By October 27, when Ong said she left for abroad, no concept had been approved. And by then, there was no more talk of how much the agency would be paid for its efforts. “I didn’t think it [the launch] was even going to push through because when I left, things were tentative. Then when I came back (Nov. 11), I was surprised that there was a launch already (Nov. 15).”

(One of the many logo designs submitted by Campaigns & Grey to the Dept. of Tourism.)

Of the five adcepts C&G submitted, DOT chose the Filipino slogan, but Romano didn’t like the agency’s earlier renderings of the ‘Pilipinas’ logo. He showed them the different logos of Spain, Maldives, Italy, and Poland, to emphasize the trend in logo designs abroad, which were “playful and light.”

The Polska fiasco
Ong dismissed accusations that they plagiarized the logo from ‘Polska’, stressing that the only thing the same with the ‘Pilipinas’ logo was the font. “The font is common. The colors are different. ‘Polska’ is all red. ‘Pilipinas’ is in different colors – there’s red, blue, in fact, I never even saw it before I left, because [the design was being sent] back and forth [from us to DOT], back and forth. So the final logo had the tarsier, the smiling coconut and the sun. President Aquino suggested the tarsier and smiling coconut. Bertie Lim was telling the truth.”

She said even the Grey Global's legal counsel said the logo, “wasn’t plagiarized. In fact, 'it should be Poland which should complain. It’s far [from the original Polska logo]. So it’s not plagiarism at all,' he said.”

In the end, the preview, or launch, whatever you want to call it, was just “too premature and the scale was a little too big,” she said. Ong also stressed that she had no inkling of the grandness of the affair, and was present for the event, contrary to what I had published earlier in my blog. (Sorry, my bad people! Off with the heads of those sources!) But she and Villapando left right after the unveiling of the new slogan, and “before the dancing girls came in.”

Ong also clarified that even if the PKG concept had been approved, the P200-million brand campaign budget of the DOT in 2011, would not go to C&G alone, as alleged by several quarters. “That [amount] includes production and media placements, and that’s the costliest expense. And you know, we were not really going to join in the bidding [for that]. If anyone [approved] the concept, then we would have created a storyboard, and then they would call for a bid for production houses, to execute the storyboard that we made. We’re not part of that. Then the media portion, which is 85% of the budget, is again to be bidded out among media agencies. We’re not a media agency! Our only part is the concept,” which isn’t part of the P200-million budget.

People might think all this is already moot and academic. In fact, I was thinking twice of even publishing this interview, as the issue is already considered yesterday's news. But I suppose, everyone who was involved in the controversy deserves to be heard. I doubt it would change the critics’ view on the PKG slogan. I still don't think it's the best, but I now appreciate the creative process that usually goes into thinking up of a new brand. Unfortunately, the entire branding process was fast-tracked, and you had DOT execs claiming that there was much research put into making the PKG brand. In fact, there was barely any.

The good thing that's come out of controversy, if any, is that the DOT will probably be more careful and not waver from accepted methology in coming up with a new PH tourism brand. Also, it's great how netizens tried to come to DOT's aid to help them improve its web site and propose more concepts for the brand.

It’s just unfortunate that in his eagerness to put out a brand campaign by 2011 aimed at boosting tourist arrivals, Romano made too many shortcuts, went overboard in launching a brand that should've first been tested, and caused a lot of negative feedback, thus imperilling the reputation of the gov't agency he worked for. And for that, rightly so, he had to quit. It was the honorable thing to do.

*The transcript of this interview will be published on Monday, Nov. 29, in the Marketing section of the BusinessMirror.

DOT's Romano quits over branding flak (updated)

TOURISM Undersecretary Vicente Romano III tendered his irrevocable resignation Tuesday, taking full responsibility for the ‘Pilipinas Kay Ganda’ branding concept, even as he didn’t dismiss the possibility that camps who were against the "open skies policy" pushed by the department could be responsible for blowing up the issue into a controversy.

In a press briefing at the Department of Tourism following a meeting with President Aquino, DOT Secretary Alberto A. Lim said he accepted Romano’s resignation, and “hope[d] this put an end to the issue.” In Romano’s stead, the office of tourism planning and promotions would be temporarily headed by an officer-in-charge, assistant secretary for international tourism promotions Benito Bengzon, Jr. Bengzon is currently spokesman of the DOT as well.

Lim also added that the DOT would undertake “brand consultations with all stakeholders” and appoint a panel that would short list all recommendations. These, in turn, will be “subjected to market tests and focus group discussions.”

(Resigned DOT Usec. Vicente "Enteng" Romano III)

For his part, a somber Romano, said he tendered his resignation voluntarily, adding that no one pressured him to resign. “Nung pumutok ito nasa Amerika ako (when this blew up, I was in the U.S.), the first thing I did was to offer my resignation to Secretary Lim. I thought it was unfair that he was fielding all these questions [on my behalf].” His family and friends from the Black and White Movement were on hand to lend him support during the press briefing. He said he still had “no plans” what do after his resignation. “I just want to rest and try to reflect.”

Asked if there were sectors out to take advantage of the controversy, including those who were against the open skies policy being espoused by the government, Romano said in Filipino: “I suppose there are some sectors and some personalities who don't agree with the leadership at the DOT so maybe they wanted to blow up this issue.” Asked directly if Philippine Airlines owner Lucio Tan could be behind it, the resigned DOT official said: "I will reserve my comment on that if you don't mind."

Romano also absolved President Aquino and Secretary Lim from any involvement in the branding project, saying that both men had actually impressed on him to do a market study, and to postpone the preview, respectively. “When I presented the brand to the President, he had his own misgivings about the brand and specifically instructed me to do a comprehensive market research before launching it. I assured him it was just a preview event and we will do research after.” He added that Lim trusted him to go ahead with the preview despite personal misgivings that the event would be held on said date.

The PKG brand was previewed in a large-scale affair at the Oceana, San Miguel by the Bay, Mall of Asia on Nov. 15, complete with 3D video, dancing girls, fireworks and catered food. Tourism stakeholders who attended the event have said they were “stunned and disappointed” to see the new brand/slogan, especially since this was done in Filipino. Most felt the slogan should be in English, which is understood globally.

A disbursement voucher as well as other documents published by Malaya columnist and blogger Ellen Tordesillas indicated that the “approved budget for the Launching of the New DOT Philippines Branding…” cost P3.77 million. A Land Bank of the Philippines check was issued on Oct. 18, 2010, to the Tourism Promotions Board, an attached agency of the DOT, which hired the services of the event producer, sent out the invites, paid for pyrotechnics, hired the audio-visual producers, the caterers, and entertainment.

The largest cost, at P995,000 went to the production of a “one minute 3D animation of Philippine brand logo” to Animation 1 Inc. headed by one Edward Travis. Sources in the advertising industry expressed shock over the amount spent saying that “it already costs as much as a 30-sec. TV commercial.” A typical 30-sec. spot is priced about P1 million. (See documents below)

Romano also admitted to this blogger that it was his daughter Denese Romano who directed the event, but he said her services were for free. “I asked my daughter to direct it, but it was pro-bono. We only had 2-3 weeks to prepare for this. So I wanted to use a tried and tested director. In all the meetings, I brought her and introduced her. Sana wag lagyan ng kulay itong ginawa nya.”

Romano denied that the PKG logo was “plagiarized” from Poland’s logo, as asserted by many quarters. He said “getting inspiration from existing designs is not an uncommon practice. In fact in one of the definitions of plagiarism, it is stated that, “While plagiarism is condemned in academia and journalism, in the arts it is often a major part of the creative process.’ “

He added that while the use of the Filipino language was used in the slogan was also hit, “I am still convinced it is a matter of execution. I honestly think a Manny Pacquiao saying ‘Pilipinas Kay Ganda’ will make a world curious and try to find out what it means.”

Contrary to rumors circulating in social networks, he told this blogger the slogan was never outrightly rejected by DOT’s tourism attaches. “That’s not true. We had a planning conference in Palawan which involved the tourism attaches. Pinakita kung gagamitin ang Pilipinas. Ang ibang markets sabi, 'baka mahirapn tayo pakilala yan dahil sanay sila sa Philippines.' 'Yung ibang markets naman sabi ‘pwede’ kasi sa ibang countries like Germany we’re known as Philippinen. So meron silang mixed inputs."

Romano admitted that he rushed the branding and its preview, and apologized to President Aquino and Secretary Lim for putting them in a spot, as well as to the Filipino public for causing the controversy.

"Before I joined government, I was in the streets clamoring for change. And when I joined, I wanted to spend every waking hour effecting that change.

“I’m in a hurry to have an advertising campaign going on by the first quarter of 2011, because I am fully convinced that every day we do not run a campaign is a lost opportunity to boost our tourism arrivals. It is a lost opportunity to generate jobs and alleviate proverty.

“I now realize that an idea as big as a new country brand needs time to germinate and blossom. There are no shortcuts.”

(Read Romano's full press statement here. Romano photo from his Facebook page)

'Pilipinas Kay Ganda' disbursement voucher
Documents courtesy of Ellen Tordesillas. Also available here

Pilipinas Kay Ganda 'shelved'

DOT Press Statement - 21 November

'Shelved' can either mean putting the project on hold temporarily, or dropping it altogether. I wish the DOT would be more precise in its language.

Btw, I hope that next time, the DOT would release its press statements before deadline time of newspapers, and not after, and especially not six hours after its Secretary already spoke with a major network identified with his sister about it. It's not as if the other media organizations have not been following this up, and have been trying to contact its officials since yesterday. Tsk, tsk.

In the thick of controversy*

TOURISM Secretary Alberto “Bertie” A. Lim likes to joke that his “claim to fame” is really being the younger brother of award-winning broadcast journalist Che-Che Lazaro. But it was their mother, Estefania Aldaba Lim, who was really the first “rock star” in the family. Fanny to her friends, she was the first female psychologist in the Philippines, the first woman appointed Cabinet Secretary, and the first woman to become special ambassador to the United Nations. (Her husband Luis Lim Sr., a San Miguel Corp. executive, passed away when Bertie was only 12.)

Now 61, Secretary Lim says his mother “was able to balance a busy career and being both mother and father to six children. She traveled a lot yet she was able to more than adequately meet our emotional and physical needs. Whenever she was abroad, she would write long letters to us. There was no Internet then so her letters were written longhand and sent by mail. She encouraged us to write her so that she had her finger on our collective pulse all the time. She was very firm but not overbearing. She was a strong woman but we never resented her brand of discipline. Her advantage was that she was a trained clinical psychologist so she knew human behavior quite well.”

I ask what his mother taught him about working for the government. Lim recalls: “My mom did not bring home her work. She did not talk about the rigors of public service. Perhaps we were too young to have been able to appreciate such a conversation anyway, but she did instill in us the value of hard work. At a young age, she sent me to the municipio to acquire a municipal permit. I had to go back several times before I got it right. From her, I learned to deal with people with politeness, and to be very meticulous in my work.”

Smarting from the critics
Patience and politeness are traits Lim certainly needs these days. Less than a day after the Department of Tourism (DOT) launched its new marketing slogan, “Pilipinas Kay Ganda!,” a hail of negative feedback rained on him and his other officials. (See “DOT launches new campaign” in the November 17 issue of BusinessMirror.)

(Botolan beach, Zambales)

Lim admitted in a radio interview on Wednesday that the criticisms hurt (“Masakit ang batikos.”), many of which ridiculed the slogan as being “too showbiz” or “lacking oomph!” Although he did tell me earlier that it was still in its conceptualization stage and was, by no means, final, I asked Lim if he was still open to changing the slogan itself. He texted back, saying: “PKG (Pilipinas Kay Ganda!) will undergo focus group discussions and other market tests before we spend money on its execution. If there are better ideas out there, we are open to them. But if there are only criticisms, then we hope there will be support for the superior idea of PKG.” (See BusinessMirror, Nov. 18, 2010.)+

Controversy is nothing new to Lim. When he was a director of the Civil Aviation Board (CAB), he was unceremoniously booted out by Malacañang after his statements supporting an open-skies policy reportedly ruffled the feathers of Lucio Tan, owner of Philippine Airlines, an ally of then President Gloria Macapagal-Arroyo (PGMA).

“I never got to talk to PGMA nor to her Executive Secretary about the decision to relieve me of my position at the CAB. I was merely told by a Palace functionary that ‘we all serve at the pleasure of the President.’ Then he made me guess what that meant. Since it was an election year, I knew what he meant. I was not surprised.”

That was a learning experience, he says. “The enemies of reform used heavy-handed tactics to force me out of office. I was bloodied, figuratively speaking, but unbowed. That experience taught me that what does not kill you makes you a better person,” Lim stresses.

Under the new administration of President Aquino, his policy push may soon come to fruition. In a speech at the launching of a new hotel in Cebu on November 10, Aquino hinted that he could be leaning toward a “pocket-sized” open-skies policy, where certain provinces would give liberal flying rights to foreign carriers.

If you build it they will come
Of course, Lim recognizes that more than a marketing plan and a liberalized aviation policy, a country first has to have the correct infrastructure to allow tourists to move freely about, from one destination to another.

(Our Lady of the Gate Parish Church, Daraga, Albay)

Fortunately, President Aquino has already made tourism a priority in his administration and has directed the Department of Public Works and Highways to work with the DOT to identify the infrastructure projects in tourism areas that need to be completed.

“The previous DOT administration has identified the Central Philippines as the focus for tourism infrastructure—this includes Palawan, Cebu, Sorsogon, Negros Occidental, Iloilo, etc. But that doesn’t mean we are to neglect the others. We can still push our medical tourism in Luzon…and we are thinking of developing a good destination in Manila. The Jesuits want to rebuild its old San Ignacio Church in Intramuros, so we can showcase all our ecclesiastical art there. We have so many of them just stored in the church bodegas. Then we can open the ground floor of some structures to cafés.”

But it isn’t merely a numbers game for the tourism chief. He would rather go for value than volume. “My philosophy is that if we keep the tourists here longer, it’s better because it will mean more revenues. So it’s important that we connect the destinations via better roads and airports.” So he envisions tourists spending a few days swimming in Boracay, then perhaps move on to Iloilo City to visit its old churches, then on to Guimaras for more beach time. Hopefully, these longer-term activities will help double the country’s tourism receipts which average only $2.5 billion a year, according to DOT statistics.

“We tend to spread the infrastructure across many places, we never complete the infrastructure in one place. For example, we build an airport, but there’s no road to the airport. How can you develop the product (tourist destination) and promote it if infrastructure isn’t complete?” Lim asks.

This has been essentially the template of Thailand, which has similar natural attractions as the Philippines, but has been able to attract the tourist numbers. In 2009, there were 14.15 million visitors to Thailand, compared to the Philippines’ three million. “Ninety-five percent of Thai roads are well-paved compared to our 20 percent. Their main gateway in Bangkok has several times the capacity of ours in Manila. They have pursued a more liberal civil aviation policy. There is three times the number of flights from Tokyo to Thai airports than there are from Tokyo to Philippine airports. So airfares from Tokyo to the Philippines are higher than airfares from Tokyo to Thailand due to greater competition. The Thais do not impose the common carriers tax (3 percent of the foreign carriers gross receipts here) that we do, and their airport officials do not charge the airlines for overtime as they are on three shifts, 24/7. We have to overcome these barriers to be more competitive,” Lim stresses.

Lifting of aviation taxes eyed
He also says it is imperative that the Aquino administration “work overtime to get an upgrade” from the U.S. Federal Aviation Agency and the European Union. In 2007, the FAA downgraded the Ninoy Aquino International Airport to category 2, because of its failure to meet safety standards, while in April 2010, the EU banned Philippine carriers from operating in the region. “The FAA downgrade has prevented one of our carriers (Philippine Airlines) from utilizing their new aircraft from flying into their originally intended destination. As a result, the airline has to continue to use their old and less fuel-efficient aircraft which are not as passenger-friendly. The European downgrade means that travelers from Europe are not covered by their insurance policies when taking domestic flights in the Philippines. Since tourists have lots of choices in their destination, they will pass over the Philippines to avoid all these hassles.”

(Songsong Ruins in Batanes)

But even if the government does manage to get the Naia upgraded, it is already too congested, what with its limiting runways. So the solution goes back to one already hatched during the administration of former President Fidel V. Ramos, that is, to move the international traffic to Clark, Pampanga. “While Naia has two runways, they are perpendicular to each other. Hence, the two are as good as one since both cannot be used simultaneously. Since [the Diosdado Macapagal International Airport in Clark] has the space to expand to a third parallel runway, it is the logical gateway to the country's main port of entry,” he explains.

He adds that he is also working with the Bureau of Internal Revenue to see if certain taxes imposed on foreign carriers could be lifted, such as the carriers tax and the gross billings tax. "If we remove this tax, the revenue to be generated for the increase in tourists will more than compensate for that loss of that common carriers tax (3% of the international carrier’s gross receipts),” he said. This tax isn’t imposed by any other country.

The gross billings tax, meanwhile, imposes a 2.5% tax on the gross revenues earned by the international carrier in the country. “Each tourist spends about $750 directly in this country. This, in turn, creates jobs in other allied sectors like transportation, agriculture, so you will need only 200,000 extra tourists to make up for the loss of the common carriers tax alone.”

Lim is also batting for the professionalization of tour guides. Having been president of Ten Knots Development Corp., former owner and operator of El Nido Resorts, he helped set up the El Nido Foundation which aims to improve the quality of life of the residents, as well as preserve the destination’s natural beauty and resources. He says they could use the same template in El Nido where “we got local guides who could give local color to the tourists. It was easier to keep them because they already resided there. We want those who have been trained already to, in turn, train the local guides in the provinces and regions, because they are the ones who know the history, the culture and the stories behind those local landmarks.”

When Lim is not busy rushing to yet another meeting, battling the mounting paperwork on his desk, or fending off his critics, he tries to keep fit by swatting at tennis balls every morning. He is married to the former Carla Campos Abreu, and they have been married for 38 years. “We lived one block apart from each other. I was studying in Ateneo, she in Maryknoll, so we were also neighbors in school. We met in a group date watching a movie.” The couple has three accomplished children—Lorenzo, 34; Laszlo, 32; and Liana, 23—and two grandchildren.

*This is an expanded version of my column, Something Like Life, originally published in the Nov. 19, 2010 issue of the BusinessMirror. Due to space constraints, I wasn't able to include Secretary Lim's position on other tourism-related issues for the paper. Let me add that this feature was planned a long time ago, even before the PKG controversy blew up, and was updated to reflect Lim's views on the matter. Something Like Life is published every Friday in the Life section of the BusinessMirror. Photo of Lim courtesy DOT. Tourism images copyright Ma. Stella F. Arnaldo, 2010.

+(UPDATE) Govt drops ‘Pilipinas Kay Ganda’ slogan. Read it here.

(UPDATE 2): 'Pilipinas Kay Ganda' officially dead, according to Sec. Lim. However, I think DOT still owes the public a more detailed explanation about what really happened especially in the light of the Campaigns & Grey press release. Was C&G actually paid or not? The taxpayers have a right to know. Abangan!

Help build DOT's web site!

THOSE who were appalled at the "interim" web site the Department of Tourism put out in a rush on Nov. 15, now have a chance to help in cleaning it up and providing original content to the new one that will be set up.

According to this Facebook note from DOT Usec. for Plannning and Promotions Enteng Romano, all you have to do is email the agency's tourism information officer, Evelyn Macayayong at this address: eamacayayong@tourism.gov.ph "and express your desire to volunteer." The rest of the steps are there.

(This is the current web site of the DOT. I'm batting for the retention of its URL www.tourism.gov.ph, primarily bec. it's one of the first few sites that shows up in search results when one googles, "Philippines tourism" or "Philippines travel." No one googles for "beautiful philippines" or "beautiful pilipinas" unless you're searching for a porn site.)

My own suggestion to DOT Sec. Alberto Lim is that perhaps we could just keep the old "www.tourism.gov.ph" address because when a traveler googles about a country he wants to visit, what are the first words he uses? It's usually "tourism" and "the country's name". When you put "Philippines tourism" or "Philippines travel", DOT's current web site pops up. If it isn't the first on the search results list, it's the fifth or sixth result.

All DOT has to do, is to spruce it up - remove that photo and brief remarks of Sec. Lim, no offense, then put all the great touristy photos it has in its file, and of course, serve up well-written stories. I am actually thinking of contributing some of my past travel stories which they can use to point to major destinations.

My own beef w/ the current web site is it asks for passwords when you want to get more tourism statistics. If you are like me, who works for a business paper, statistics count a lot in our stories. And we can hardly complete our pieces, unless we have updated data onhand. So I've requested travel blogger Ivan Henares - who has already personally volunteered to help DOT fill up content on its new web site – to kindly remind the DOT execs to update their official data periodically.

(This is the rest of the bleah stuff on the first page of DOT's current site, which was put up by the former dispensation. Not even one single photo of a tourist destination. While I love the former officials of the DOT - you know who you are - their website developer certainly lacks imagination and creativity.)

While many of us are disappointed with the decision of the DOT about the choice of its new marketing slogan "Pilipinas Kay Ganda", I appreciate Romano's owning up to his mistake re: the choice of the URL and apologizing for it. I find that he is more open to criticism, unlike other DOT execs, which I think is the key in helping the agency move forward from this bungling.

Let's just all be reminded by that age-old adage: "Haste makes waste."

Read more of Romano's note:

I am responsible for the choice of www.beautifulpilipinas.com. We were about to give a preview of “Pilipinas Kay Ganda” as the tourism country brand, and I was looking for an appropriate URL that would be associated with the new brand.

I searched and looked at all possible permutations of “beautiful”, “philippines”, “pilipinas”, “is beautiful”, and this was the best name that was still available.

Now, if you were the one tasked to do this and you finally chose beautifulpilipinas.com, will you automatically check what beautifulfilipinas.com was, especially since it was not even one of your candidate choices? Honestly? I didn't and am sorry for it. (The rest at Vicente Romano III.)

Oh and btw, if you are tourism stakeholder – a hotel owner, marketing or sales person, general manager of a tourism establishment, travel agency owner, etc. - pls. don't hide behind your Facebook account and just keep on criticizing the DOT. Why not get together w/ your own colleagues, write down your concerns, and actually present these to Sec. Lim or U/Sec. Romano?

I love my friends in the tourism industry, but I wish that sometimes, you would really put your money where your mouth is. Stop hiding behind anonymous comments on blogs; just come right out and say what you mean and stick your name on it. After all, you are the guys who are most affected by all these changes in the DOT marketing campaign. Maybe it's time you speak up publicly or bring your concerns directly to the DOT leadership.

I leave the house and all hell breaks loose!

I WAS out the entire day covering a story and was virtually shut off from the world bec. the building I was in was super cyber-secure. It was so secure, I couldn't even use the free wifi next door at the Robinsons Cybergate nor use the Internet access on my own cellphone. So imagine when I got home and found this!

(Someone sent me this w/o any credit, but I think this image was made by Spanky Hizon. )

Too tired to blog about it. Just read this:

A check with the official travel website of Poland showed that indeed, their logo has a striking similarity to "Pilipinas Kay Ganda," from the font, the colors, and even the use of a tree (well, granted, that of the Philippines is a coconut tree, while that of Poland is, well, a generic tree).

Blogger Spanky Hizon in his blog "Manila Boy", has put the two logos side by side and called on someone from the Department of Tourism to resign over the alleged plagiarism committed. (Click ABS-CBN News for the rest.)