DOTSUM 06 22 99

The Role of Air Transportation in Tourism Development: 

VICTOR S. LIMLINGAN 22 June 1999 The Role of Air Transportation in Tourism Development

1. Context2. Benchmarking with Thailand3. Focusing on Japan4. Role of International Air  Transport in Philippine Tourism 5. Lessons from Liberalization of  the Domestic Airline Industry : 

1. Context 2. Benchmarking with Thailand 3. Focusing on Japan 4. Role of International Air Transport in Philippine Tourism 5. Lessons from Liberalization of the Domestic Airline Industry

Comparative Tourist Arrivals(1997): 

Comparative Tourist Arrivals (1997) Country Arrivals Thailand 7,357,246 Singapore 7,197,963 Malaysia 6,210,921 Indonesia 5,185,243 Philippines 2,222,523 Source: World Tourism Organization

INTERNATIONAL TOURIST ARRIVALSPHILIPPINES vs. THAILAND: 

INTERNATIONAL TOURIST ARRIVALS PHILIPPINES vs. THAILAND PHILIPPINES THAILAND DIFFERENCE 1997 2,222,523 7,357,246 5,134,723 1998 2,141,183 7,929,578 5,788,395 Difference (81,340) 572,332 653,672 Source: World Tourism Organization

WHY DOES THAILAND HAVE MORE INTERNATIONAL TOURISTS THAN THE PHILIPPINES?: 

WHY DOES THAILAND HAVE MORE INTERNATIONAL TOURISTS THAN THE PHILIPPINES? PHILIPPINES THAILAND DIFFERENCE ASEAN 155,226 1,767,316 (1,612,090) EAST ASIA 971,870 2,736,941 (1,765,071) EUROPE 291,619 1,585,915 (1,294,296) OCEANIA 105,391 271,442 ( 166,051) NORTH AMERICA 491,523 368,417 123,106

SELECTED COUNTRIES:ASEAN: 

SELECTED COUNTRIES: ASEAN THAILAND PHILIPPINES DIFFERENCE MALAYSIA 1,046,029 60,449 985,580 SINGAPORE 492,089 50,344 441,745 INDONESIA 89,110 20,924 68,186 PHILIPPINES / THAILAND 76,727 16,692 60,035 TOTAL 1,703,955 148,409 1,555,546

SELECTED COUNTRIES: 

SELECTED COUNTRIES EAST ASIA THAILAND PHILIPPINES DIFFERENCE JAPAN 965,454 376,714 588,740 CHINA 439,795 19,093 420,702 HONG KONG 472,325 159,606 312,719 KOREA 411,087 170,087 241,000 TAIWAN 448,280 246,370 201,910 TOTAL 2, 736,941 971,870 1,765,071

Destination of Japanese Touristsby Region in 1997: 

Destination of Japanese Tourists by Region in 1997 Region Number % Asia 9,272,219 43.8 Europe 5,552,054 26.2 North America 5,367,758 25.4 Oceania 974,938 4.6 Total 21,166,969 100.0 Source: World Tourism Organization

Selected Destination of Japanese Tourists in 1997: 

Selected Destination of Japanese Tourists in 1997 Destination Distance from Number Japan in kms. Taiwan 2,124 905,527 Guam 2,511 1,113,012 Philippines 3,017 376,714 Hong Kong 3,211 1,368,988 Thailand 4,614 965,454 Singapore 5,331 1,094,040 Indonesia 5,796 639,211 Hawaii 6,170 2,092,480

International VisitorsMode of Travel1997: 

International Visitors Mode of Travel 1997 Mode of Travel Percentage By Air 97.99% By Sea 2.01% Source: Philippine Department of Tourism 1997 Statistical Report

International Air Passenger Movement in the Philippines: 

International Air Passenger Movement in the Philippines 1997 1998 Number % Number % Visitors (Inbound) 2.222 M 53.5 2.149 M 54.2 Locals (Outbound) 1.930 M 46.5 1.817 M 45.8 Total 4.152 M 100.0 3.966 M 100.0 Source: Philippine Department of Tourism Philippine Civil Aeronautics Board

Seat Capacities as of March 1999(Per Year): 

Seat Capacities as of March 1999 (Per Year) Country Seat Capacity Singapore 18,789,940 Malaysia 15,471,404 Thailand 15,467,816 Philippines 5,331,040 Source: Philippine Department of Tourism

Seat Capacity of Philippine Air Lines: 

Seat Capacity of Philippine Air Lines Before downsizing from 54 airplanes to 22, Philipine Air Lines was offering 2.4 million seats per year on its international operations. Under the rehabilitation plan this will be reduced to 1.2 million seats. So who will provide the additional 8.8 million seats needed?

What is needed to achieve target of 4.4 million tourists by 2004?: 

What is needed to achieve target of 4.4 million tourists by 2004? 1. Double seat capacities from 5.3 million to 10.0 million. 2. Reduce cost of airfare by half.

HOW?: 

HOW? Adopt the policy of PROGRESSIVE LIBERALIZATION which has been proven to be successful in the domestic airline market