Rediscovery:
A Program for Philippine Tourism Under the Estrada Administration

By Secretary Gemma Cruz-Araneta
Department of Tourism

Good afternoon.

In this presentation, I will outline the program which we in the Department of Tourism and in the Philippine travel and tourism industry seek to implement for the accelerated development of Philippine tourism. It is the product of an intensive and comprehensive review of the industry and its prospects for the future.

The program is wedded to His Excellency President Joseph Ejercity Estrada's Ten Point Action Program, which he announced at the start of his Presidency. To his primary goal of Jobs and Justice for our people, we believe tourism can contribute - and contribute in a big way.

In this final year of the 20th century and on the eve of the new millennium, the Philippine travel and tourism industry faces a period of challenge as well as opportunity.

Challenge because the Asian economic crisis has taken a heavy toll of regional economies and personal incomes. This impacts on Philippine tourism in three ways.

• First, it cuts tourist traffic from the Philippines' biggest and fastest growing market - East Asia.
• Second, it curtails public and private investment in tourism development and promotion.
• Third, it makes the competition for the international tourist traffic even more intense.

But to make this happen, we cannot just go on doing the same things we have been doing these past years. We have to rethink our tourism development and promotion program.

We call the Estrada tourism program "Rediscovery" because the challenge we face requires us to look afresh at the Philippines and its many tourism assets and attractions. Just as Ferdinand Magellan discovered the natural beauty and treasures of our archipelago for the world in 1521, so we must rediscover - for foreigners and Filipinos alike - what makes the Philippines an attractive tourist destination.

Discovery of the Philippines
Discovery of the Philippines on March 16, 1521 completed the map of the world for mankind. Today, 478 years later, rediscovery of our country and its treasures will put the Philippines on the world tourism map.

We have two key assets for this effort: our archipelago and our people. If we put them at the center of Philippine tourism - and if we do things right - our country will become a major tourist destination. And tourism will continue in a vital way to national development.

This has been the story in other lands. This, too, will be our story.

This is why we believe the Rediscovery theme is the key to revitalizing our tourism thrust,

• It is a way to remind the world that Magellan's discovery completed the world map.
• It emphasizes the most basic motivation for travel - exploration and adventure.
• It serves to highlight the unique and varied treasures of the country.
• It can encourage second-and-third-generation Filipinos abroad to visit their homeland.
• And it can spur Filipinos to explore and travel in their country.

In its analysis of Philippine tourism, the WTTC observed:
· The Philippines is positioned at the epicenter of global travel and tourism growth and development.

• Personal consumption on travel and tourism is growing at 6.5% per annum - twice the global average - and will nearly double over the next decade from P126.1 billion to P236.7 billion. This will represent 7.7% of total consumption by 2007.
• Travel and tourism contributes 8.7% of GDP in the Philippines as of 1997 and will grow more than two full percentage points to 10.9% b7 2007.
• In employment terms, tourism generates 2.3 million jobs across the economy, or 8.7% of the Philippine workforce. It is expected to add 1.4 million jobs by 2007.
• Capital investment in tourism today accounts for some 10.5% of all Philippine investment. It grew dramatically from 1995-97 at more than 20% per annum.
• The trade surplus from tourism in 1997 was estimated at P22 billion.
• Most importantly, because tourism is spread throughout the economy in response to dynamic traveler demands for goods and services, the economic benefits also flow across the economy as a whole, particularly in such sectors as manufacturing, construction and agriculture.

Goals and Priorities
The key goals and priorities in our tourism development program are:

1. To generate a greater volume of foreign and domestic tourists.
2. To generate jobs, create livelihood opportunities and improve income distribution in both city and countryside.
3. To develop a diversity of destinations, attractions and markets throughout the country.
4. To promote sustainable tourism through the protection, conservation and prudent management of the country's rich natural environment.
5. To involve local communities in the development of destinations and ensure their share in tourism's rewards.
6. To highlight and enhance the country's colorful culture and unique history in tourism development and promotion.
7. To improve the image of the Philippines abroad and foster greater national awareness and pride among Filipinos of their country.

Top Destinations in Asia Pacific
We are No.12 among the top destinations in the Asia-Pacific region. Notice that we are grouped with India, Vietnam, New Zealand and Guam, when we should be up there with our ASEAN neighbors.

This is partly explained by the effects of the Asian crisis on some key markets, temporary closure and downsizing of PAL operations and partly by the fact that our marketing and promotions budget for 1998 had been spent during the first semester for reasons we need not go into here.

In terms of markets, the United States and East Asia account for 60 percent of tourists visiting the Philippines. Balikbayans constitute 8 percent. And we're getting few tourists from Europe - a major market for our neighbors.

All these notwithstanding, we are confident that given the proper funding support - we can meet the ambitions set under this "REDISCOVERY" program.

Location of Overseas Offices and Marketing Reps

We have announced a reorganization of our overseas offices and are recalling our Tourism Attaches for reassignment. Some industry participants believe that marketing representatives do a better job of promoting the Philippines because they are from those countries and know the market better.

Greatest Come-ons of the Philippines

Strikingly enough, a DOT survey of arrivals last year showed that their key motivation for choosing the Philippines as a place to visit are:

Heavy traffic and a dirty environment were the greatest turn-offs for our visitors. Crime incidents and a poor peace and order situation are not the greatest turn-offs as some had believed perhaps because of the stability and better peace and order situation under the current administration.

While government has the principal responsibility in promoting tourism development, it is private enterprise that must drive the industry forward by investing in tourism facilities, providing the services and generating the revenues.

We therefore consider it essential that Government actively promote investments in tourism and other industries, and in keeping with its importance to the economy.

In the same survey, respondents revealed that their main sources of information on the country were:

Main Source of Information about the Philippines

In the same survey, 58.7% of the respondents said their main source of information on the country came from either friends, relatives or business associates. This means that they got their information about us by word of mouth - not through travel agents, and not from collateral materials.

Tourism Master Plan

• The Luzon Cluster, which includes all of Luzon, as well as Palawan, Mindoro and Marinduque.
• The Visayas Cluster, which includes Cebu, Bohol, Samar, Leyte, Negros Occidental and Oriental, and Panay.
• The Mindanao Cluster, which includes the Davao provinces, Zamboanga del Sur and del Norte, Misamis Oriental and Occidental, Surigao del Norte and Sur, and the Muslim Provinces.

The Luzon Cluster is positioned as a multi-faceted destination with a full range of market and products.

The Visayan Cluster is positioned as a resort center because of the high quality of its beaches and island world.

The Mindanao Cluster is positioned as an exotic wilderness and colorful cultural destination.

Each cluster is being developed to contain one or more primary gateways, a number of secondary gateways, and a variety of existing, emerging and potential destinations. Adequate facilities and services for the projected tourism volumes will be developed.

Some projects that are not yet funded need to be reviewed under the policy of getting value for money. This is now being done by the DOT.

One major tool in our review is the real support that tourism projects get from local communities. We see community-based tourism as the key building block and will ensure sustainable tourism development and maximize community benefits from the industry.

Eco-tourism is one form of tourism that is envisioned to prosper under a community-based development program. With community control and responsibility, we have the best chance of preserving natural parks, wildlife, marine life and other natural resources.

Since time immemorial, the power of culture and history has been integral to the shaping of attractive tourist destinations. All great tourist destinations in the world such as those in Europe and Asia are finally great because of their history and culture.

And yet, the Philippines is unique for the happy blending Filipinos have made of East and West in the national life, and the great varieties of cultures and traditions in the archipelago. By rediscovering our past and strengthening our arts and culture, we too can become more attractive to the world and to each other.

Destination and Development

First, a combination of the niche and mass market strategies to develop both special interest tourism and vacation resort destinations oriented to both domestic and foreign markets.

Second, a cluster development approach based on the gateway and satellite destination concept - to develop destinations in Luzon, Visayas and Mindanao.

Third, the balanced development of domestic and foreign markets.

Fourth, equal focus on resort, cultural and heritage tourism.

Fifth, an improvement of support systems and services, such as transport services, ground infrastructure, existing tourism plant, and the overall peace and order climate in the country.

And sixth, an institutional streamlining of tourism management to ensure the changes necessary for long-term sustained growth.

Along this line, tourism development under the Estrada administration will highlight cultural and heritage tourism. Specifically, we emphasize the following action ideas:

• Promote and preserve native cultures, festivals and traditions.
• Highlight the artistic and cultural achievements of the people by strengthening the network of museums and libraries in the country.
• Enhance awareness of historic places, date and events.
• Preserve ancestral homes, churches, mosques and other structures of architectural and historical significance.
• Develop arts tourism in the country.

Sadly, Philippine tourism, for all its assets, has been hobbled by a lack of imagination in its marketing and promotion. Indeed, the country is hobbled by a poor and negative image abroad as a land where tourists must fear being kidnapped, robbed or cheated.

Tourism Projects under the Estrada Administration

As will be evident from this review, our tourism development program will involve quite a number of projects.

1. President Estrada's Tourism Highway

A key project for domestic tourism, President Estrada's Tourism Highway is a nationwide program that will string together our varied local communities into tourism zones and grids - according to their complementarities as well as access routes. All local communities are tourist destinations in their own right. And community effort - of both local government and local businesses - will be the main driver in generating tourist arrivals and revenues.

2. Save the Ifugao Rice Terraces Project

A key project for heritage tourism, this involves the preservation of the historic and world-renowned Ifugao Rice Terraces. This major tourism asset is now in danger of collapse from the sheer weight of time and the elements. The government will spend P1.2 billion for its rehabilitation. We believe that this national treasure can support an entire tourism zone in the mountain provinces of Luzon. It helps that the rice terraces have been designated as a UNESCO world heritage site, which means that international funding can help in their conservation and rehabilitation.

3. Manila (Multi-faceted Tourist Destination)

Manila, Premier Gateway to the Philippines. The national capital remains the country's principal tourist destination. It has facilities for international conventions and conferences, historical and cultural sites, shopping and entertainment fare, and vibrant business districts.

The DOT and Mayor Lito Atienza are implementing the following projects to increase the number of tourist attractions:

• Save the Metropolitan Theater
• Rizal Memorial Stadium Sports Museum
• Intramuros Restoration Exhibit and
• NAIA to Pasig River Beautification

The mandate of the Intramuros Administration is not only to restore the old Walled City of Manila, but to redevelop it into "the living, throbbing city" that it once was. Efforts so far have succeeded in restoring some structures, but the envisioned haven for tourists and residents is yet to be. The present plan of the DOT and the Estrada Administration is to make this vision come alive during its term. The recent controversies in Intramuros notwithstanding, we must move forward in the plan to fully restore and revive the area. One key project set is the establishment of a tranvia or tram car service within the walled city.

4. "One-day Tours" in Region III, IV and NCR

For short-staying visitors who want to see the countryside and don't have much time in the Philippines, we are promoting one-day tours to the scenic spots and historical sites of Regions III, IV and the National Capital Region.

5. Balikbayan in the New Millennium

The successful Balikbayan Program for Ethnic Filipinos abroad is being expanded with the Tourism Frontliner and Discover Your Roots programs.

5a. Tourism Frontliners Program

We have the three million Filipinos working abroad who make up a vast marketing network. Our overseas workers will be enlisted as frontliners for tourism marketing and promotions under the Tourism Frontliners Program.

5b. Discover Your Roots

The Discover Your Roots program is designed for the third and fourth-generation Filipino-Americans or Ethnic Filipinos living abroad. Our aim is to entice them to visit their ancestral homeland.

6. Back-to-Basic Cleanliness Drive

As part of the Estrada Administration's back-to-basics tourism program, the DOT launched a drive for clean restrooms in gasoline stations, bus stations, stores, restaurants and municipal buildings.

7. Tourist Assistance Center

The Tourist Assistance Centers are being estrablished by the DOT to offer a range of services. Here visitors can get help in hiring taxis, getting hotel reservations and information on tourist destinations.

The first Tourist Assistance Center is now operational at NAIA. The DOT will set up more of these centers in other international and domestic gateways.

8. Barkadahan sa Turismo

Resorts owned by the Philippine Tourism Authority all over the country are ideal tourist destinations for youth and student groups. The aim is to encourage our young people to participate in domestic tourism.

9. Visit ASEAN Year 2002

At the ASEAN Tourism Forum in Singapore in January, member-nations declared the year 2002 as the "Visit ASEAN Year" to draw tourists from all over the world to the region.

With the theme "Cooperative Competition," the Philippines will be lead country for this promotions project which will sell the ASEAN as a single tourist destination.

Key Result Areas

With respect to foreign tourism, we aim for the following:

• 2.54 million tourist arrivals in 1999
• 4.4 million tourist arrivals in 2004
• Increased tourist spending by 5%
• Repositioning of the Philippines as a major tourist destination in Asia
• And maximum utilization of existing tourist establishments and facilities.

Critical Linkages

Infrastructure and accessibility
Department of Public Works and Highways (DPWH)
Department of Transportation and Communications (DOTC)
Department of Interior and Local Government (DILG)
Civil Aeronautics Board (CAB)

A Simple Thesis: The First Circumnavigator of the World

Let me now summarize and conclude.

In William Manchester's best-selling book, A World Lit Only by Fire, there is a compelling chapter about the discovery of the Philippines and the man who was the first circumnavigator of the world. You will be stunned to learn that it wasn't Ferdinand Magellan who first circled the globe, but a Filipino. Manchester wrote and I quote:

"Shortly after they had landed in the Visayan Islands of the enormous Philippine archipelago, Magellan heard a great cheering and, moving on toward the noise, found his servant Enrique surrounded by merry natives. It took a while to sort things out. Born in the Visayas, Enrique had been sold into slavery in Sumatra and sent to Malacca, where Magellan had acquired him. Since leaving the Malayan Peninsula in 1512, he had accompanied his owner to India, Africa, Portugal, Spain and, the past eighteen months on this voyage. An apt linguist, he was fluent in both Portuguese and Spanish, but here on Limasawa, for the first time since his childhood, he had overheard people speaking his native language. He had joined in, and they had welcome him as one of their own.

"The significance of this incident was enormous. Magellan was ecstatic. By sailing westward, they had returned to the lands where they first met. Obviously, Enrique was the first circumnavigator of the world. By completing the circuit of the globe, the expedition had provided the first empirical proof that it was a sphere."

The thesis of our tourism development program is simple:

Thank you.