NORTH AMERICA KOREA JAPAN CHINA ASIA PACIFIC EUROPE INDIA

PHILIPPINE TOURISMMARKETING EFFORTS: NORTH AMERICAKOREAJAPANCHINAASIA PACIFICEUROPEINDIA

OUTLINE OF PRESENTATION • General Overview of Arrivals • Market Overview, Strategies & Programs • Korea • North America • Japan • China • Asia Pacific • Europe • India

Source Markets Performance

OUTLINE OF PRESENTATION • General Overview of Arrivals • Market Overview, Strategies & Programs • Korea • North America • Japan • China • Asia Pacific • Europe • India

1,200,000 11.1% 12.5% 1,000,000 1,000,000 14.3% 900,000 16.7% 800,000 800,000 20% 700,000 600,000 25% 600,000 500,000 400,000 200,000 0 2005 2006 2007 2008 2009 2010 Target Arrivals 2006 Volume: 600,000 (25% increase) 100,000 increase every year from 2006 - 2010

Market Segments Holiday Seekers Honeymooners Students (Study tours-Learn English Program) Special Interest Groups (Golfers, Divers, Other Sports Enthusiasts) Incentives (Korean multinational companies with branches in the Philippines)

Work Program

OUTLINE OF PRESENTATION • General Overview of Arrivals • Market Overview, Strategies & Programs: • Korea • North America • Japan • China • Asia Pacific • Europe • India

Based on 3 Million Target Arrivals Market Actual Volume % Increase Share (%) of Arrivals (over 2005) USA21 % 630,000 19 % Canada2.8 % 84,000 15 % Total 714,000 (23.8 % market share of 3 Million Total Visitor Arrival Target for 2006)

Target Market Segments/Niches • Fil-Americans/Fil-Canadians • 1st Generation • 2nd Generaration • 3rd & 4th Generation • Non-Filipinos • Leisure with health & wellness • Golf • Diving & other adventure sports • History and culture

Strategies • PRODUCT For Filipinos • Introduce attractive family oriented tour packages, health & wellness including medical tourism packages, - include activities on investment, retirement and business opportunities primarily for 1st generation • Develop & introduce product/s that would enable 2nd, 3rd & 4th generation to trace their roots For Non-Filipinos • Strengthen existing ones – golf, beach holidays, diving, historical • Introduce health & wellness tours

Strategies • PRICE • Offer products that are value for money • PLACE/DISTRIBUTION • Strengthen linkages with tour wholesalers, ticket consolidators, airlines • Fully utilize internet • Strengthen tie-ups and alliances between U.S. Fil-Am Associations and Philippine based organizations

Strategies • PROMOTION • Introduce sales promotion to shorten travelers’ buying process, thereby, resulting to warm bodies (from awareness convert to visitor arrivals) • Intensify publicity and dissemination of information on new & existing products, facilities, sales promo offerings, new trends • Develop positive image for the Philippines as part of “Image Building” • Maximize invitational program for trade & media • Continuous participation in trade & consumer shows

Work Program • Flagship Campaign – “The Philippines: Explore, Experience, Return” • “The Great Philippine Free Flight Giveaway” • “Out of the Box” promo • 2nd Ambassador / Consuls General Tour to the Philippines (July 2007) • “See You In Asia” Campaign • Travel Agents Specialist Program

Work Program • Commemoration of the Centennial of Filipino Migration to the USA (whole year) • PR / Publicity plan • Trade and Media Invitational Travel • Brochure Support for wholesalers • Participation in Trade and Consumer Shows in US & Canada

Japanese Women Travelers Estimated population of women in Japan = 65,100,000 Of the 35.06 million Japanese women in their 20s to 50s, 7.21 million have abundant overseas travel experience.

Japan’s Independent Women Independent Women are younger women who seekculinary, historicand natural experienceswhen traveling overseas Drivers Background • Typically younger females • Many are single, mostly no children • Typically “office ladies” – secretarial and clerical, part-timers • Low to average annual HH income, but relatively high disposable income • Ride the subway every day • Go to the movies and sing karaoke a few times a month • Local cuisine & drinks • Historical landmarks • Natural beauty and landscapes • Spa/ relaxation • Enjoyable • Pleasant Barriers Characteristics • Prefer “Free-time” package • No particular accommodation preference, but minimum acceptable threshold is “standard” • Widely travelled – travel to both mainstream (e.g. Hawaii) and exotic (e.g. Egypt) destinations • Influenced by travel pamphlets and friends • Poor health standards • Unsafe • Politically unstable • Unclean/unhygienic Source: Monitor Japan Philippines Travel Survey 2005 (n=3,808, weighted)

Japan Outbound Dive Market • 3 million total divers • 2.5 million certified divers • 1 million active divers 17.5 M Total Japan Outbound 1,000,000 Active Divers or 6% of Total Japan Outbound

Japan’s Senior Citizens: The “Super-Aging” Society World Ranking of Countries with the Highest Population of Senior Citizens By 2010, Japanese baby boomers will contribute an additional 7 million retirees! Source: United Nations, World Population Prospects, 2000

Japan’s Senior Citizens Seniors are men and women over 60 years of age who seeknaturalandhistoricexperienceswhen traveling overseas. Drivers Background • Mostly married and have children • Mostly housewives or retired • Highest level of disposable income • Often take trains / subway, buses • Enjoy occasional driving, movies and Sports events • Natural beauty and landscapes • Historical landmarks • Galleries and museums Characteristics • Freer to travel at any time • Prefer to travel on all-inclusive full package tour with their spouses • Experienced travelers, over-index in travel experience in all regions • Take 1 or 2 overseas holiday every year with average yearly spend of Y418K per person (higher than the average) • Low positivity but high information search • Influence by newspaper is important Barriers • Hygeine • Health • Terrorism • Personal Safety • No activities for women • Ability to communicate Source: Monitor Japan Philippines Travel Survey 2005 (n=3,808, weighted) Japan Travel Blue Book 2003 / 2004

Work Program • PR CAMPAIGN • JOINT BROCHURE PROMOTIONS WITH JAPANESE WHOLESALERS • PRODUCTION OF COLLATERALS • TRADE FAIRS • Marine Diving Fair (April) • Tour Expo (May) • JATA World Congress and Travel Fair (September) • PHILIPPINE BUSINESS MISSION • REGULAR MARKETING ACTIVITIES OF OVERSEAS OFFICES • Sales calls and sales presentations • Market intelligence • Philippine tourism seminars • FAM TOURS • Agents • Media • IMPROVEMENT AND UPGRADING OF LOCAL PRODUCTS and SERVICES

TARGET ARRIVALS FOR 2007 Visitor arrivals 2006 – 133,585 Target arrivals 2007 – 175,000 Increase – 41,415 or 31%

MOA BETWEEN DOT AND CNTA • Memorandum of Understanding between The Government of the Republic of the Philippines and the Government of the People’s Republic of China Concerning Tourism Cooperation was signed in September 11, 2002 valid for five (5) years and shall be automatically renewed unless either of the party deem otherwise. • The implementation program was signed in September 01, 2004 valid for two years. • Important points • Exchange of Tourism Professionals and Administrators • Joint Promotion • Language and Cultural Training • Tourism Investment • Major concern : To renew the Implementation Program with CNTA.

Airlines Route Number of flights per week Seat Capacity per week Seat Capacity per month Seat Capacity per year PAL Shanghai - Manila 7 (A-320) 150 x 7 1,050/ week 1,050 x 4 4,200/month 52 x 1050 54,600/year Beijing - Manila 4 (A-320) 150 x 4 600/week 600 x 4 2,800/month 52 x 600 31,200/year Xiamen - Manila 6 (A-319, A-320) 150 x 3 = 450/week 124 x 3 = 372/week 450 x 4 1,800/month 372 x 4 1,488/month 52 x 450 23,400/year 52 x 372 19,344/week China Southern Airlines * Beijing – Xiamen -Manila 7 (A-320) 150 x 7 1,050/week 1,050 x 4 4,200/month 52 x 1050 54,600/year Guangzhou-Manila 4 (A-320) 150 x 4 600/per week 600 x 4 2,800/month 52 x 600 31,200/year Guangzhou-Laoag 2 446/per week 446 x 4 1,784/month 52 x 446 23,192/year TOTAL SEATS CAPACITY 4,568 /week 18,272/month 214,344 AIR SEATS CAPACITY CHINA TO THE PHILIPPINES (DIRECT FLIGHTS ONLY)

PHILIPPINE TOURISM OFFICES IN CHINA AND THEIR AREA OF JURISDICTION • Beijing Cluster • Political center of government and SOE • Also cluster of IT/ telecoms industries (big sponsors) • Stronger presence of Incentive Travelers Beijing Cluster Cities Beijing, Tianjin, Shenyang, Dalian, Ha’erbin, Jinan, Qingdao, Changchun Shanghai Cluster Cities Shanghai, Nanjing, Suzhou, Wuxi, Hangzhou, Ningbo, Wenzhou, Wuhan, Shaoxing Guangzhou Cluster Cities Guangzhou, Shenzhen, Xiamen, Fuzhou, Dongguan, Zhongshan, Zhuhai, Shantou, Foshan, Haikou • Shanghai Cluster • Largest center of FIE companies • Cluster of affluent and worldly Tier 2 cities • More family oriented • Strong presence of Family with Kids groups • Guangzhou Cluster • FIE and HK invested companies • Strong culture influence from Hong Kong • More independent minded • Strong White Collar, including weekend travelers

HIGHLIGHTS OF 2006 ACCOMPLISHMENTS • Participated in nine (9) trade/travel/consumer fairs and garnered citations/awards • Guangzhou Int’l Travel Fair (Guangzhou)– Best Booth Design • Qingdao Int’l Tourism Expo – (Qingdao) Best Booth Decoration and Best in Organization • 3rd China-ASEAN Expo (Nanning) – Best in Creativity Award • China International Travel Mart (Shanghai) – Citation for the Philippines as one of the Top 10 Rising Destinations for Chinese Outbound Tourists and Top 10 MICE Destinations for Chinese Outbound Tourists • Citation by Travel Weekly China for Secretary Joseph Durano as Destination Marketer of the Year

HIGHLIGHTS OF 2006 ACCOMPLISHMENTS • Promotion of Davao as a new product • Worked towards the resumption of direct flights from Guangzhou to Manila with China Southern Airlines • Establish linkage and networking with operators from 2nd-tier cities (Chengdu, Qingdao, Tianjin, etc.) • Strengthening of DOT offices in China (Market Reps in Shanghai and Guangzhou) • Positioned the Philippines as a destination for relaxation, beach, nature, friendliness and value • Strengthened partnership with and support from Chinese travel trade and inbound tour operators in the Philippines

THRUSTS FOR 2007 • Tap key incentive trade partners in order to attract more tourists from the incentive / corporate market segment • Sustain growth from Beijing cluster and maximize outputs from Shanghai and Guangzhou clusters • Strengthen trade and media network to establish stronger presence in China • Target secondary cities which have experienced economic growth • Work towards increased capacities (air seats, rooms) and improved support services to cater to the needs of Chinese travelers

2007 CALENDAR OF ACTIVITIES • Shanghai • Travel trade fairs participation 1.IT & CM (Incentive Travel & Conventions, Meetings) New Shanghai Exhibition Center, 23-25 April 2007 Tourism Conference Travel Mart 1. Philippine Tourism Conference Shanghai, China, 22 April 2007 • Consumer Travel Fair 1. ISPA 2007 Shanghai, China, 7- 9 June 2007 2. Golf Style Shanghai, China, November 2007 3. Luxury Travel Fair Shanghai, China November 2007 • Advertising – Print ads, Outdoor Ads (year round) • Familiarization trip for media and trade (year round) • Joint promotion with Chinese travel trade sector • China travel wholesalers and agents counter staff seminar (to include 2nd tier cities) • Sales calls to Shanghai and 2nd tier cities • In-store promotion Raffles Department Store (June 2007)

2007 CALENDAR OF ACTIVITIES • Beijing • Travel trade fairs participation 1.China Outbound Travel and Tourism Market (COTTM) China World Trade Center, 14-16 May 2007 2. China International Business Incentive Travel Mart China World Trade Center, 8 – 10 July 2007 3. Jinan Tourism Event Jinan, China, 8 – 10 September 2007 • Tourism Conference Travel Mart 1. Philippine Tourism Conference Beijing, China July 2007 • Advertising – TV, Print ads, Billboards (year round) • Familiarization trip for media and trade (year round) • Joint promotion with Chinese travel trade sector • China travel wholesalers and agents counter staff seminar (to include 2nd tier cities) • In-store promotion Wangfujing Road (March 2007) • Sales calls to Beijing and 2nd tier cities

ASIA PACIFIC 2006 HIGHLIGHTS

25 Travel Trade & Consumer Fairs • AUSTRALIA 6 • HONG KONG 3 • SINGAPORE (ASEAN) 11 • TAIWAN 5

Asia Dive Expo

Trade & Media Invitational Groups • AUSTRALIA 10 • HONG KONG 8 • SINGAPORE (ASEAN) 10 • TAIWAN 27 TOTAL 55

ASIA PACIFIC 2007 Work Program

SINGAPORE 2007 Target Arrivals (ASEAN) : 237,237 Singapore : 95,043 Malaysia : 57,747 Target Segments : Group Corporate Travel FITs Honeymooners / Couples VFRs Students & Church- based groups (community immersion)

SINGAPORE

NORTH AMERICA KOREA JAPAN CHINA ASIA PACIFIC EUROPE INDIA