DRAFT SPEECH OF THE TPB COO PHILIPPINE TOURISMS GROWTH PATH: HITTING THE 10-MILLION MARK 39TH PHILIPPINE

BUSINESS CONFERENCE THEME: UNLEASHING THE TIGER ECONOMY (TOWARDS INTEGRATION, GROWTH & ECONOMY RESILIENCY) FIESTA PAVILION, MANILA HOTEL 1:45 PM 2:00 PM, TUESDAY, 22 OCTOBER 2013 *PANEL DISCUSSION: HOW READY IS THE PHILIPPINES TO ACCOMMODATE 10 MILLION TOURISTS 2:00 PM 2:45 PM] AMBASSADOR ALFREDO YAO ATTY. MIGUEL VARELA FORMER TOURISM SECRETARY NARZALINA Z. LIM MR. EUGENE YAP, HRAP PRESIDENT MR. CESAR CRUZ, PHILTOA PRESIDENT MR. FELIX CRUZ, BAA CHAIRMAN OTHER DISTINGUISHED GUESTS (1) LADIES AND GENTLEMEN, GOOD AFTERNOON. ON BEHALF OF THE HONORABLE RAMON R. JIMENEZ, JR., SECRETARY OF TOURISM, I WOULD LIKE TO THANK THE ORGANIZERS OF THE 39TH PHILIPPINE BUSINESS CONFERENCE FOR INCLUDING THE DEPARTMENT OF TOURISM AND THE TOURISM PROMOTIONS BOARD IN TODAYS ACTIVITIES. THE TOPIC ASSIGNED TO ME FOR THIS AFTERNOON DEALS WITH THE GROWTH PATH OF PHILIPPINE TOURISM, WITH SPECIAL EMPHASIS ON REACHING THE TEN MILLION TOURIST ARRIVAL MARK BY YEAR 2016. ALLOW ME TO PROVIDE YOU WITH AN UPDATE ON SOME KEY ISSUES

AND CONCERNS, AND WHAT NEEDS TO BE CONTINUOUSLY DONE MOVING FORWARD. (2) AS A BRIEF BACKGROUNDER, THE DOT USES THE NATIONAL TOURISM DEVELOPMENT PLAN, OR THE NTDP, AS THE BLUEPRINT FOR TOURISM DEVELOPMENT. THE YEAR 2016 IS THE TARGET TIMEFRAME FOR THIS PLAN, WITH ITS OVERALL GOAL FOR AN ENVIRONMENTALLY AND SOCIALLY-RESPONSIBLE TOURISM THAT DELIVERS MORE WIDELY DISTRIBUTED INCOME AND EMPLOYMENT OPPORTUNITIES FOR THE FILIPINO. AS MAY BE GLEANED FROM THE SLIDE, THE INDUSTRYS PERFORMANCE AS OF YEAR-END 2010 INDICATES THE ARRIVAL OF SOME 3.5 MILLION INTERNATIONAL TOURISTS TO THE PHILIPPINES, AND ROUGHLY 28 MILLION DOMESTIC TRAVELLERS. INTERNAL TOURISM EARNINGS REACHED PHP892 BILLION, COMPRISING A 5.8% SHARE OF THE GROSS DOMESTIC PRODUCT, AND CONTRIBUTING 10.2% TO EMPLOYMENT GENERATION OBJECTIVES. OUR GOAL FOR 2016 IS TO ACHIEVE 10 MILLION INTERNATIONAL TOURIST ARRIVALS, 56.1 M DOMESTIC TRAVELLERS, AS MUCH AS PHP2.3 TRILLION IN INTERNAL TOURISM EARNINGS, COMPRISING AN 8.7% SHARE OF GDP, AND 18.7% EMPLOYMENT CONTRIBUTION. FOR THE COUNTRY TO ACHIEVE ITS LOFTY TARGETS, A FOUR-PRONGED STRATEGY HAS BEEN SET: 1) INCREASE ACCESS AND CONNECTIVITY; 2) INCREASE PRODUCT DEVELOPMENT RANGE AND SCALE OF MARKETING; AND 3) IMPROVE TOURISM GOVERNANCE AND HUMAN RESOURCES. IN ORDER TO INCREASE ACCESS AND IMPROVE CONNECTIVITY, THE NTDP CALLS FOR THE RAPID EXPANSION AND FULL UTILIZATION OF OUR SECONDARY INTERNATIONAL AIRPORTS, AS A MEANS TOWARDS ESTABLISHING THE MUCH-NEEDED AIR LINKS BETWEEN THE PHILIPPINES AND ITS KEY GROWTH MARKETS. IT ALSO CALLS FOR THE

IMPLEMENTATION OF A STRATEGIC ACCESS INFRASTRUCTURE PROGRAM BETWEEN SECONDARY INTERNATIONAL AIRPORTS AND STRATEGIC DESTINATIONS. (3) IN SUPPORT OF THIS STRATEGY, PRESIDENT AQUINO HAS ALREADY SIGNED EXECUTIVE ORDER 29 IN MARCH 2011 TO SIGNIFY THE ADMINISTRATIONS SUPPORT FOR THE POCKET OPEN SKIES POLICY. THE EXECUTIVE ORDER IN EFFECT ALLOWS FOREIGN CARRIERS TO INCREASE FLIGHTS TO SECONDARY AIRPORTS EXCEPT MANILA, OVER AND ABOVE ENTITLEMENTS THAT HAVE BEEN NEGOTIATED UNDER EXISTING AIR SERVICES AGREEMENTS. IN MARCH THIS YEAR, THE PRESIDENT SIGNED INTO LAW REPUBLIC ACT 10374, WHICH RECOGNIZES THE PRINCIPLE OF RECIPROCITY AS THE BASIS FOR TAX RELIEF TO FOREIGN CARRIERS. THESE ACTIONS WERE BOTH DESIGNED TO BOOST TOURISM IN THE PHILIPPINES BY ENHANCING THE COUNTRYS INTERNATIONAL AIR TRANSPORT CONNECTIVITY. THESE ALSO SENT A STRONG SIGNAL TO THE GLOBAL AIRLINE COMMUNITY THAT THE PHILIPPINES IS MORE THAN ABLE TO PROVIDE A LEVEL AND MORE PROFITABLE PLAYING FIELD FOR INTERNATIONAL CARRIERS THAT OPERATE IN THE PHILIPPINES. (4) THIS HAS RESULTED IN A FEW FOREIGN CARRIERS MOUNTING NEW FREQUENCIES TO SECONDARY DESTINATIONS IN THE COUNTRY. YOU MAY HAVE RECENTLY HEARD OF EMIRATES FLYING TO CLARK FROM THE START OF THIS MONTH, AND PLANS ARE UNDERWAY FOR QATAR AIRWAYS TO FOLLOW SUIT. SILKAIR INTENDS TO OPERATE FLIGHTS FROM SINGAPORE TO BOTH ILOILO AND KALIBO BY NEXT YEAR. ALSO, CONNECTIVITY FROM CHINA, KOREA AND JAPAN, OUR TOP THREE TOURIST MARKETS TO THE NORTH, TO VARIOUS SECONDARY AIRPORTS CONTINUE TO BE ESTABLISHED. (5) LATELY, THE EUROPEAN UNION LIFTED THE BAN ON PHILIPPINE AIRLINES AND ALLOWED THE CARRIER TO FLY INTO ITS AIRSPACE AFTER RESOLVING SIGNIFICANT AVIATION SAFETY CONCERNS. AS A RESULT,

PAL WILL RESUME OPERATIONS TO EUROPE THIS NOVEMBER, WITH ITS INAUGURAL FLIGHT SCHEDULED TO TOUCH DOWN IN LONDON ON THE 04TH OF NOVEMBER. THE LIFTING OF THE EU BAN IS SEEN AS A POSITIVE SIGN FOR THE US FEDERAL AVIATION ADMINISTRATION AND THE JAPAN CIVIL AERONAUTICS BOARD TO HOPEFULLY FOLLOW SUIT. (6) THE PHILIPPINES HAS BEGUN TO ATTRACT INVESTMENTS IN THE ACCOMMODATIONS SECTOR, AND WE HAVE SEEN THE CONFIDENCE LEVEL IN THE COUNTRY RISE WITH HOTEL AND RESORT PROJECTS SPROUTING AMIDST OUR TOURISM LANDSCAPE. WHILE WE DO NEED MORE OF THESE FACILITIES BY 2015, AND IT WOULD BE HIGHLY USEFUL TO HAVE ATTRACTIVE INCENTIVES IN PLACE, THERE ARE REPORTEDLY ENOUGH ROOMS IN THE PHILIPPINES IN 2014 TO ACHIEVE OUR SHORTTERM TARGETS FOR NEXT YEAR. (7 - 10) THERE IS NO DENYING THE FACT THAT THE PHILIPPINES IS ONE OF THE MOST BEAUTIFUL COUNTRIES ON EARTH, AND THAT WE HAVE BEEN BLESSED WITH AN ABUNDANCE OF NATURAL ATTRACTIONS, CULTURAL BOUNTIES, LEISURE AND ADVENTURE TRAVEL OPTION AND WARM, HOSPITABLE PEOPLE. WHILE THESE ARE ENOUGH TO DRAW RAVES AND HIGH PRAISES FROM TRAVELLERS THE WORLD OVER, IT DOES NOT NECESSARILY FOLLOW THAT WE ALREADY HAVE THE CAPACITY TO WELCOME VISITORS AND GENERATE TOURISM RECEIPTS FROM THEIR VISIT. SUPPORT INFRASTRUCTURE, ALONGSIDE THE REDEVELOPMENT OUR CULTURE OF TOURISM, IS A KEY INGREDIENT THAT WE ALL MUST WORK HAND IN HAND TO ACHIEVE. (11) THE NTDP HAS IDENTIFIED TWENTY STRATEGIC THEMATIC TOURISM DESTINATION CLUSTERS WITH 78 TOURIST DESTINATION AREAS (TDAS), SPREAD OUT ALL OVER THE COUNTRY. IN EACH OF THESE CLUSTERS ARE ISSUES AND CONCERNS THAT HAVE NOT BEEN GIVEN ATTENTION NOR TACKLED FOR DECADES, AND ONLY NOW ARE BEING SERIOUSLY ASSESSED AND ADDRESSED. THERE ARE TOO MANY OF THEM TO ENUMERATE WITHIN THE TIMEFRAME OF THIS

PRESENTATION, BUT IT IS SIMPLY CORRECT TO SAY THAT GOVERNMENT HAS IDENTIFIED THE INFRASTRUCTURE REQUIREMENTS AND THAT THE PLANNING AND IMPLEMENTATION OF VARIOUS PRODUCT DEVELOPMENT PROJECTS ARE ALREADY IN FULL MOTION. (12) FROM THE UPGRADING OF AIRPORTS AND SEAPORTS, TO THE CONSTRUCTION AND REHABILITATION OF ROADS LEADING TO TOURIST DESTINATIONS; OR CREATING AN IDEAL BUSINESS ENVIRONMENT FOR POTENTIAL INVESTORS BY OFFERING COMPETITIVE INCENTIVES SCHEMES, OR SIMPLY ENSURING THE SAFETY AND SECURITY OF VISITORS AS THEY MAY BE CAUGHT IN MAN-MADE OR NATURAL DISASTERS; (13) THE DOT HEADS A TOURISM COORDINATING COUNCIL COMPOSED OF VARIOUS AGENCIES INVOLVED IN THE DEVELOPMENT OF THE TOURISM PRODUCT, MOST NOTABLE OF WHICH ARE THE DPWH, DOTC, DFA AND THE DTI, JUST TO NAME A FEW. THE TASK AHEAD IS GARGANTUAN, AND THE TOURISM OFFERING IS NOWHERE NEAR IDEAL DUE TO YEARS OF NEGLECT, BUT THE ENTIRE GOVERNMENT MACHINERY IS BEHIND THE TOURISM INDUSTRY, AND IN PARTNERSHIP WITH THE PRIVATE SECTOR, WILL DO WHATEVER IT TAKES TO FACE THE CHALLENGES HEAD ON ON BEHALF OF GENERATIONS TO FOLLOW. (14) THE HARDWARE MAY BE A CHALLENGE, BUT THE DOT INTENDS TO AMPLIFY ON THE SOFTWARE COMPONENT OF THE PRODUCT THE FILIPINO PEOPLE. IT HAS BEEN REPEATEDLY SAID THAT A VISIT TO THE PHILIPPINES IS MADE MORE SPECIAL BECAUSE OF A FOREIGNERS ENCOUNTER WITH THE FILIPINO. IT IS THE FILIPINO THAT DIFFERENTIATES OUR TOURISM FROM THE REST OF THE WORLD, AND IT IS A RESOURCE THAT THE DEPARTMENT OF TOURISM AND THE TOURISM PROMOTIONS BOARD ARE WILLING TO INVEST IN 100%. (15) FRONTLINERS ARE KEY TO ANY TOURISM SUCCESS STORY. IT IS THE HONEST TAXI DRIVER WHO BEFRIENDS THEIR PASSENGERS AND SHOWS THEM THE BEST SPOTS IN TOWN. OR THE CHARMING

WAITRESS WITH THE SINCERE SMILE AND THE EFFICIENT SERVICE. OR THE HELPFUL POLICEMAN IN THE STREET CORNER, FIT AND HEALTHYLOOKING, READY WITH SOME FRIENDLY NEIGHBORHOOD ADVISE. OR THE IMMIGRATIONS OR CUSTOMS OFFICER, WHO PROUDLY WEAR THEIR UNIFORM AND CONDUCT THEMSELVES WITH DIGNITY AND HONOR. (16-18) DOT CONTINUES TO INVEST TIME AND RESOURCES TO FORMALLY TRAIN TOURISM FRONTLINERS IN THE PROPER HANDLING OF GUESTS, BUT WHAT WE REALLY NEED TO DO IS TO SIMPLY REKINDLE WHAT TO US FILIPINOS IS SECOND-NATURE, THAT OF BEING HOSPITABLE TO GUESTS, AND DOING WHATEVER IT TAKES TO MAKE THEIR VISIT MORE ENJOYABLE, MORE RELAXING, MORE MEMORABLE, MORE FUN . WHAT WE NEED IS NOT JUST A CAMPAIGN, BUT A MOVEMENT, THAT WILL TRULY TOUCH THE HEARTS AND MINDS OF OUR FELLOW FILIPINOS, AND GIVE THEM THE OPPORTUNITY TO PARTICIPATE IN A VERY SPECIAL WAY TO NATION BUILDING THROUGH TOURISM. (19) JUST LIKE WHAT WE DID WHEN WE LAUNCHED OUR TOURISM BRANDING CAMPAIGN - ITS MORE FUN IN THE PHILIPPINES. (20-43) IT IS THE FILIPINO THAT IS THE CENTRAL THEME TO THE FUN EXPERIENCE WE ARE TRYING TO PROJECT. WE SINCERELY BELIEVE THAT THE FILIPINO IS THE KEY INGREDIENTS TO A MEMORABLE PHILIPPINE HOLIDAY AND THIS IS EVIDENT IN OUR PASSENGER EXIT SURVEYS TAKEN OF FOREIGN GUESTS DEPARTING AT OUR MAJOR PORTS. IT IS REALLY OUR INHERENT WARMTH AND FRIENDLINESS THAT ENDEARS THEM TO THE VISIT, NEXT TO OUR LOVELY ATTRACTIONS. WE FILIPINOS POSSESS A CULTURE THAT AIMS TO PLEASE. WHEN WE CAME OUT WITH THIS MARKETING SLOGAN, THE FILIPINO HAS BEEN GIVEN A STARRING ROLE AS THE CAMPAIGNS MOST

POWERFUL ASSET, SERVING NOT JUST AS THE CHIEF RESOURCE (WHICH WE HAVE 100 MILLION OF), BUT ALSO AS INSPIRATION AS WELL AS MEDIA CHANNEL. BESIDES THE GENUINE WARMTH, WELCOME, GOOD HUMOR AND SENSE OF FUN THAT FILIPINOS ARE KNOWN FOR THE WORLD OVER, VERY IMPORTANT IN THIS DIGITAL AGE IS THE SOCIAL MEDIA POWER OF FILIPINOS. INDEED, WE ARE CONSIDERED BY WALL STREET JOURNAL AS THE SOCIAL NETWORKING CAPITAL OF THE WORLD. THERE ARE OVER 30 MILLION FILIPINOS ACTIVE ON FACEBOOK AND IS THE 6TH LARGEST COUNTRY REPRESENTED ON TWITTER WORLDWIDE. WHAT WOULD HAPPEN IF WE COULD ONLY EXCITE OUR PEOPLE ABOUT THE CAMPAIGN, AND ACTIVATE THEIR ENERGIES ON SOCIAL MEDIA? AND SO EXCITE THEM WE DID. WITH THE TAGLINE ITS MORE FUN IN THE PHILIPPINES TO PROJECT THE IDEA THAT THE FILIPINO ENHANCES THE EXPERIENCE OF ANY TOURIST, KABABAYANS FROM ALL CORNERS OF THE GLOBE CAME OUT IN FULL FORCE TO SUPPORT THE NEW MARKETING CAMPAIGN. THEY INUNDATED SOCIAL MEDIA SITES WITH USER-GENERATED CONTENT, USUALLY A CATCHY IMAGE AND A WITTY LINE, SHARING WITH THE WORLD WHAT THEY FELT MADE THE PHILIPPINES A MORE FUN DESTINATION. WHAT WE LACKED IN MARKETING FUNDING, WE WERE ABLE TO GENERATE THROUGH THIS UNIQUE AND AWESOMELY POWERFUL RESOURCE THAT IS THE FILIPINO. WE COULD TRULY SAY THAT WE OWE THE CAMPAIGNS INITIAL SUCCESS TO THE FILIPINO PEOPLE. ITS MORE FUN IN THE PHILIPPINES WAS TRANSFORMED INTO THE PEOPLES CAMPAIGN, AND TOURISM BECAME THE PEOPLES BUSINESS. (44) SINCE THEN, THE TOURISM PROMOTIONS BOARD (TPB), DESPITE ITS OWN SET OF CHALLENGES, HAS SPEARHEADED A VERY AGGRESSIVE GLOBAL MEDIA BLITZ THAT HAS MAXIMIZED EXPOSURE IN TRI-MEDIA AND NEW MEDIA PLATFORMS USING RESOURCES THE FRACTION OF THAT SPENT BY OUR COMPETITORS.

(45-46) TPB ALSO CONTINUOUSLY ENGAGES IN TRADITIONAL MARKETING ACTIVITIES, AND WORK CLOSELY WITH BOTH INDUSTRY AND NON-INDUSTRY PARTNERS IN CREATING GREATER PROMOTIONAL OPPORTUNITIES. TPB IS CLOSE TO FINALIZING ITS REORGANIZATION, (47) ALTHOUGH IT ALREADY OPERATES WITH A COMPLETE BOARD OF DIRECTORS AND SUFFICIENT FUNDING FOR ITS PROMOTIONAL ACTIVITIES. ONCE THE REORGANIZATION IN COMPLETE, IT CAN BEGIN TO FULLY COMPETE WITH OUR SOUTHEAST ASIAN NEIGHBORS FOR OUR FAIR SHARE OF THE TOURISM BUSINESS. SOME ESTIMATE THAT THE MARKET FOR PHILIPPINE TOURISM MAY ALREADY BE OVER 10 MILLION FOREIGN TOURISTS, BUT WE DO NOT YET HAVE THE CAPACITY TO ABSORB SUCH DEMAND. IN CLOSING, WE ARE AT MIDPOINT IN THE AQUINO ADMINISTRATION. AS WE STRIVE TO SURPASS, FOR THE VERY FIRST TIME IN PHILIPPINE HISTORY, THE 5 MILLION ARRIVAL MARK BY YEARS END, WE SET LOFTY TARGETS FOR THE REMAINING THREE YEARS, WHICH CAN ONLY BE ACHIEVED WITH THE PHILIPPINES ACTING DECISIVELY AS ONE. AS HAS BEEN SAID ON MANY OCCASIONS, TOURISM IS A COLLABORATIVE UNDERTAKING AND HAS TO BE THE RESPONSIBILITY OF THE ENTIRE NATION. TOURISM IS THE PEOPLES BUSINESS, AND FOR US TO REALIZE OUR ASPIRATIONS, WE WILL NEED TO FIRMLY RECOGNIZE OUR ROLES AND EXTEND SUPPORT TO THE TOURISM AGENDA, BEGINNING WITH THE PEOPLE IN THE ROOM TODAY. STRATEGIC PUBLIC-PRIVATE PARTNERSHIPS CONTINUE TO BE ESTABLISHED TO ENSURE THAT THE REQUIREMENTS FOR A LONG-TERM AND SUSTAINABLE TOURISM DEVELOPMENT ARE ADDRESSED, AND THAT THE INDUSTRYS BENEFITS IMPACT THE FARTHEST AND THE LOWLIEST OF OUR BROTHERS AND SISTERS IN THE COUNTRY. WE LOOK TO ALL 100 MILLION FIIPINOS TO BE TOURISM STAKEHOLDERS AND TO PRO-ACTIVELY ENGAGE IN THE BUSINESS OF TOURISM.

THE TASK AHEAD MAY BE GARGANTUAN BUT IT IS NOT INSURMOUNTABLE. THE TASK AHEAD MAY BE DIFFICULT BUT IS WORTHY OF OUR VERY BEST EFFORTS. (VIDEO) THANK YOU AND GOOD AFTERNOON TO ALL.