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Tourism roadmap
1. Private Sector Promotion (SMEDSEP) Program
Guide for Assessing LGU Potential and
Enhancing Local Competitiveness in Tourism
Draft for Discussion | February 2009
2. Authors
Eric Alvia ericalvia@gmail.com
Carlos Libosada Jr. caloylibosada@gmail.com
Responsible
Vickie Antonio victoria.antonio@gtz.de
Publisher
The Private Sector Promotion Program
SMEDSEP
smedsep.ph
10F German Development Center
PDCP Bank Center Building
V A Rufino St cor L P Leviste St
Salcedo Village, Makati City 1227
PHILIPPINES
Volker Steigerwald, Program Manager
volker.steigerwald@gtz.de
February 2009
3. Private Sector Promotion (SMEDSEP) Program
Guide for Assessing LGU Potential and
Enhancing Local Competitiveness in Tourism
Draft for Discussion | February 2009
4.
Contents
Acronyms ...................................................................................................................................................... 4
Introduction .................................................................................................................................................. 5
Objectives ..................................................................................................................................................... 5
Background on Philippine Tourism ............................................................................................................... 6
Relevance, Potential, and Prospects ......................................................................................................... 6
Benefits of Tourism ................................................................................................................................... 7
Economic ............................................................................................................................................... 7
Social ..................................................................................................................................................... 7
Environment.......................................................................................................................................... 8
Guide for Assessing LGU Potential and Enhancing Local Competitiveness in Tourism ................................ 8
LRED Implementation Process ................................................................................................................ 10
Implementation Steps ............................................................................................................................. 10
Tourism Subsectors ..................................................................................................................................... 13
Ecotourism .............................................................................................................................................. 13
Definition ............................................................................................................................................ 13
Characteristics of Ecotourism ............................................................................................................. 13
Components of Ecotourism ................................................................................................................ 14
Ecotourism Development Requirements ............................................................................................ 17
Medical, Health & Wellness, and Retirement Subsector ........................................................................ 22
Definition ............................................................................................................................................ 22
Characteristics of Medical Tourism .................................................................................................... 23
.
Medical Tourism Requirements .......................................................................................................... 23
Components of Health and Medical Tourism ..................................................................................... 24
Medical Tourism Development Requirements ................................................................................... 26
Meeting, Incentives, Conventions & Exhibitions (MICE) Subsector ....................................................... 31
Definition ............................................................................................................................................ 31
Characteristics of MICE Tourism ......................................................................................................... 31
MICE Tourism requirements ............................................................................................................... 31
Components of MICE tourism ............................................................................................................. 32
MICE Development Requirements ..................................................................................................... 33
2
5. Adventure, Outdoor, and Sport Tourism ................................................................................................ 36
Definition ............................................................................................................................................ 36
Characteristics of Adventure & Sport Tourism ................................................................................... 36
Adventure & Sport Tourism requirements ......................................................................................... 37
Components of Adventure Tourism.................................................................................................... 38
Adventure, Outdoor and Sport Development Requirements ............................................................ 39
.
Amusement, Entertainment & Leisure (sun, sea, and sand) tourism ..................................................... 43
Definition ............................................................................................................................................ 43
Requirements of Amusement, Entertainment & Leisure (sun, sea and sand) tourism ...................... 43
Components of Leisure Tourism ......................................................................................................... 43
Amusement, Entertainment and Leisure (sun, sea, and sand) Development Requirements ............ 45
Cultural and Heritage tourism ................................................................................................................ 49
Definition ............................................................................................................................................ 49
Characteristics of Cultural and Heritage Tourism ............................................................................... 49
Requirements of Cultural and Heritage Tourism ................................................................................ 49
Components of Culture and Heritage Tourism ................................................................................... 50
Cultural Heritage Tourism Development Requirements .................................................................... 51
Annex .......................................................................................................................................................... 53
1. Visitor Receipts 2004 ‐ 2008 ........................................................................................................... 53
2. International Tourist Arrivals by Main Source Markets, 2007 ........................................................ 53
3. Visitor Arrivals 2004 ‐ 2008 ............................................................................................................. 53
4. Central Philippines Tourism Strategy Coverage .............................................................................. 54
5. WEF Travel & Tourism Competitiveness Index ............................................................................... 54
6. Average Hotel Occupancy 2007 ...................................................................................................... 55
7. PhilBiz5 Tourism Value‐Chain Approach ......................................................................................... 55
References and Sources .............................................................................................................................. 56
3
6.
Acronyms
DA‐BFAR Department of Agriculture – Bureau of Fisheries and Aquatic Resources
DENR Department of Environment and Natural Resources
DFA Department of Foreign Affairs
DOH Department of Health
DOT Department of Tourism
DTI Department of Trade and Industry
ESQH European Society for Quality in Healthcare
GFI Government Financial Institutions
GOCC Government Owned and Controlled Corporation
GREET Grassroots Entrepreneurship and Employment in Tourism Program
HCS Heritage Conservation Society
HMO Health Maintenance Organization
IAPCO International Association of Congress Organizers
ICCA International Congress and Convention Association
IMD Institute for Management Development
ISO International Standardization Organization
ISQua International Society for Quality in Health Care
JCI Joint Commission International (US)
LGU Local Government Unit
MICE Meeting, Incentives, Conventions, and Exhibitions subsector
MSME micro, small, and medium enterprises
NAIA Ninoy Aquino International Airport
NCC National Competitiveness Council
NCQA National Committee for Quality Assurance
NHI National Historical Institute
PCCI Philippine Chamber of Commerce and Industry
PEZA Philippine Economic Zone Authority
PHTP Philippine Health Tourism Program
PMTP Philippine Medical Tourism Program
PNP Philippine National Police
PPP public‐private partnership
TEZ Tourism Economic Zones
TIES The International Ecotourism Society
TSA Tourism Satellite Accounting
WEF World Economic Forum
WTO World Tourism Organization
WTTC World Travel and Tourism Council
4
8.
Background on Philippine Tourism
Relevance, Potential, and Prospects
Tourism is acknowledged as one of the world’s largest and fastest growing industries today. In 2007
alone, the industry and linked sectors such as the airline & hotel industry raked in about USD 7 trillion in
revenues. 1
Currently, it employs nearly 240 million people (8% of total new jobs), creates 10% of world GDP
annually & brings in about 12% of global investments. 2 Recent years have seen rapid growth in global
tourism with expansion to continue despite dire global economic concerns.
In 2007, there were over 903 million international tourist arrivals worldwide, a 6.6% increase as
compared to 2006, while tourist receipts topped USD 856 billion. 3 Philippine tourism growth mirrors this
trend as arrivals grew at around 6.1% during the first seven months of 2008. 4
As a product and service oriented industry, tourism generates income that has widespread economic
impact and benefits. Apart from contributing to the national economy by raising revenues through
tourism receipts, the industry also serves as a potent catalyst for employment generation.
Owing to its climate and natural endowments – beaches, surfing sites, and abundant natural attractions,
the Philippines is an ideal tropical tourist destination. Over the past years, global trends point toward an
increasing interest in ecotourism and adventure‐sport tourism, niches in which the Philippines has
strong potential.
In 2007, tourism visitor earnings reached USD 4.88 billion while generating 3.8 million jobs from 3.1
million tourists (Annex 1 Table 1). Most foreign tourist come from mature markets such as Korea, US,
Japan, China and Southeast Asian nations joined by recent Scandinavian, Central & West European
visitors (Annex 1 Table 2). Each visitor spends an average of USD 83 to USD 110 over a five to 15‐day
period. 5
1
World Travel and Tourism Council (WTTC)
2
United Nations World Tourism Organization (UNWTO) World Tourism Barometer June 2008
3
UNWTO
4
Philippine Department of Tourism
5
Japanese and Russian tourists are the top daily spenders with longer average stays – JCB Card Co., DOT
6
9.
Benefits of Tourism
Economic
Aside from clear economic benefits such as job creation, direct investments, and revenue generation,
there are other significant contributions that the tourism can bring into the local economies of host
communities. These are:
Tourism is a catalyst for change and development
Aside from direct investment, a robust tourism industry opens the door to other sectors like
food, souvenir items, transport, banking, communication, and others.
Tourism is a service industry
This sector does not require corresponding amount of space or resource in order to provide jobs
or businesses to the host community. A small resort facility would have an average of six
employees while a hotel would have a high employee‐to‐room ratio (usually 3 employees per 1
room).
The tourism industry presents strong opportunities for promoting local economic development owing to
the multiplier effect generated through the tourism supply chain. The direct, upstream, and
downstream industries that contribute to tourism activities have the potential for increasing
employment opportunities in the localities.
Social
Tourism provides windows of opportunities for more sectors of the society such as women, indigenous
folks, and even persons with disabilities through direct (tourism service providers) and indirect (souvenir
makers) involvement.
Indigenous and cultural products are given the opportunity to perpetuate and thrive in tourist
destinations.
Tourism can help increase the pride and social morale of the host communities through the
national/international attention gained by local and cultural attractions that would otherwise have not
been discovered.
Improvement of the community’s overall ambience and standard of living of its residents is also a by‐
product of tourism activities. A developed tourism industry sets the impetus for creating a cleaner, and
better environment for the locality, which eventually makes the area more conducive to more
investments and visitors to the area.
7
10.
Environment
Through ecotourism activities, the industry has become a potent tool for environmental conservation.
With the concern for sustainable tourism, the following natural resources are provided with tangible
reasons to be preserved and protected:
• Beach areas
• Forests
• Flora and Fauna
• Mangroves
• Corals
• Rivers and lakes
Guide for Assessing LGU Potential and Enhancing
Local Competitiveness in Tourism
This serves a guide to evaluate local advantages for tourism development. It is an aid for local chief
executives to recognize what comprises the domestic tourism industry; be acquainted with a range of
domestic tourism activities; determine areas with tourism potential; and verify the competitive
advantage of a province, city or municipality within the tourism value chain.
It is divided into six major sub‐sectors prevalent in Philippine tourism ‐ a) ecotourism; b) medical, health
and wellness and retirement; c) meetings, incentives, conventions and exhibitions (MICE); d) adventure,
outdoor and sports; e) Amusement, Entertainment & Leisure (sun, sea, and sand); and, f) cultural and
heritage tourism. The guide is intended for use after the local government unit undertakes an
assessment of their local and regional economic development (LRED) conditions.
The Guide is derived from the Philippine Chamber of Commerce and Industry’s (PCCI) tourism program
called Biztour5 in 2006. It was meant to augment the government’s efforts in promoting tourism
development, which has a low impact to the environment and local culture at the same time helping to
generate income and employment. The concept was formulated to answer the need for a program for a
private sector driven tourism effort.
The Biztour5 Program aims to achieve “Five 5s” through the development of business and investment
opportunities along the 5As. These five goals are: to develop Philippine tourism by bringing in 5 million
foreign tourists to generate USD 5 billion tourism receipts and create 5 million jobs through USD 5
billion investments by the 5th year.
Biztour5 has the following objectives:
1) Identify five international gateways to the Philippines;
2) Link each gateway to clusters of world‐class tourist attractions;
3) Develop various tour packages within the clusters;
8
11. 4) Create various investment & business opportunities through the Five As: Arrival, Access,
Accommodations, Attractions, and Activities; and
5) Align regional tourism master plans and road maps.
The 5As refer to: Arrival (pre‐arrival marketing, air/sea/land transport, air/sea ports); Access (roads,
terminals, & related infrastructure); Accommodation (hotels, lodging, & restaurants); Attractions
(natural & man‐made), and Activities (rest, recreation, & education) form the tourism supply chain. The
scheme allows LGUs to work in cooperation with their neighboring areas to cover whichever
component, or “A”, a particular place is lacking. (Annex 1 Figure 1)
Each section of the guide provides a definition, characteristic & attributes, and a component checklist
(5As) to assess the potential of a locality in each of the tourism sub‐sectors.
To complement the Biztour5 approach, the guide also lists down requirements for each tourism sub‐
sector to highlight the unique conditions needed for specific activities to thrive. These include the
following:
• Institutional Development
• Product Mapping and Prioritization
• Product Development
• Community and Stakeholder Organizing
• Skills Development
• Business Planning Development
• Market Planning and Marketing
• Product Management
It is expected that going through the checklist will suggest activities to be undertaken by tourism
stakeholders in enhancing tourism development at the local level.
9
12. Implementation Steps
Prior to the LGUs initiating a tourism subsector assessment, it is recommended that they undertake a Local and
Regional Economic Development (LRED) process. LRED is a tool for participatory planning and implementation
process wherein public and private stakeholders in a locality dialogue and work together to improve conditions for
economic growth and employment generation.
The initial step of the LRED processes is a Rapid Economic Appraisal (REA). It is ideally conducted in cooperation
with private sector organizations and the local government to provide an overview of the local economy and
identify economic strengths and constraints of an area. The political, legal and regulatory environment, situation
and structure of the local business community, institutional environment, human and natural resources and
infrastructure would be assessed. Following this, a local stakeholders’ workshop would be held to validate the rapid
appraisal results and identify interventions to improve the local business environment. Interventions must be
implemented within a year to achieve “quick‐wins” and build trust with local stakeholders
Subsequently steps in this approach would be undertaken to create, implement, and evaluate a local tourism plan
and strategy.
LRED Implementation Process 6
2
conduct the
1 3 4 5
local
organize and develop the implement the monitor the
assessment
mobilize the Action Plan/ Action Plan / Action Plan /
(Rapid
stakeholders Strategy Strategy Strategy
Economic
Appraisal)
6
Source: Rolf Speit’s Rapid Economic Appraisal Manual, 2007
10
13.
No Key Steps Activities Outputs Timeline Resources Responsible
. Required Persons
1 organize • internal • LGU set up Minimum meeting venue, Planning
and meetings, and ready to one day up info materials Coordinator,
mobilize the orientation undertake to one re economic Focal Person
stakeholder within the the project week profile (LGU)
s LGU • local
regarding mandate to
objectives, proceed
resources • list of
required, interviewees
concept, • itinerary,
logistics detailed
• identify schedule
relevant
stakeholder
s (public
and
private) for
conduct of
REA
• finalize
schedule
2 conduct the • preparatory matrix of data: one to workshop key LRED Focal
local meeting strengths and three days costs, Person
assessment • kickoff weaknesses; (depends facilitation identified,
(Rapid workshop overview of on size of costs, logistics external
Economic • field local economy location) costs Facilitator
Appraisal) interviews based on 5 workshop
and • gathering Fields of takes one
validation of data Analysis half day
of findings • analysis of • SMEs
in a information • Infrastructur
stakeholder • preparing e
workshop the • Enabling
presentatio environment
n of results • Support
• presentatio institutions
n and • Human and
validation natural
of resources
appraisal
results
11
14.
No Key Steps Activities Outputs Timeline Resources Responsible
. Required Persons
3 develop the • identify • LRED Action half day; workshop overall - LRED
Action Plan proposed Plan, best in costs, Focal Person;
/ Strategy intervention Strategy combinatio materials, Mayor / LCE,
s • activities n with the facilitation LRED team
• identify identified validation costs
champion(s • milestones workshop
) per agreed
intervention
s
• action
planning
4 implement • finetune, stakeholders, one year budget for LRED team
the Action finalize the facilitators activities (LGU,
Plan / Plan trained and identified collaborating
Strategy • implement coached, (trainings, agencies,
agreed concrete workshops, private sector
steps activities outward representatives
• onsite implemented investment )
coaching missions, etc)
5 monitor the • Monthly • Progress one year workshop Focal person
Action Progress Report costs, field and External
Plan/ Meeting • Evaluation, visits, Facilitator
Strategy • Annual Assessment transportation,
Evaluation, Results accommodation
• Assessment , data
gathering costs
For more information, please refer to the SMEDSEP‐PSP LRED Reference Manual
12
16. is to promote economic equity wherein the gains generated by ecotourism would adequately
benefit the local communities.
Components of Ecotourism
Arrivals
It must be understood that although ecotourism sites might allow limited number of visitors at a given
time, three ecotourism market segments may be attracted to the sites.
• Ecotourists – These are the travelers who have high social and environmental knowledge and
that they already know how to behave in the destination in order to minimize their potential
impacts to the people and the environment. Ecotourists are usually individuals or few members
in each group. They are willing to stay in local facilities, no matter how simple or rustic.
• Novice Ecotourists – These are usually students or people who are willing to learn and
appreciate what the destination or ecotourism product offers. This market travels in groups that
range from low to high volume.
• Mass (non‐ecotourist) market – The very high profile created by ecotourism products would
sometimes be noticed by the mass market and they potentially come in droves to the
ecotourism sites. The mass tourist market could ultimately destroy unprepared areas if no
mitigating measures are in place to manage the potential high volume of visitors. Some
examples of ecotourism products availed by the mass tourists are dolphin watching, river
cruising, trekking in easy trails, or snorkeling in shallow coral reefs. On the other hand,
effectively managing the mass market in ecotourism products offer an opportunity for
information and educational campaigns to inculcate the value of environmental protection (e.g.
the value of protecting mangroves instead of cutting them down)
14
17. Novice
Ecotourists
Mass
Ecotourists
Market
Ecotourism
Destination
Figure 1 Indicative market sizes of three ecotourism market segments
15
19.
It has to be recognized by the stakeholders that due to the fragility of the natural environment, most
ecotourism sites can only accommodate low volumes of visitors. Thus, control measures to limit the
number of tourists to such sites will have to be implemented. Some of the control measures are:
• Low guests to guide ratio
• Establishing maximum daily visitor quotas
• Queuing or ticketing system
• Limited parking space
• Limited road or trail system
Activities
Ecotourism activities should lead to awareness creation for environmental and social conservation. Also,
the activities must not create irreversible social and environmental impacts in the destinations. Common
activities consist of animal observation (bird/whale/dolphin/shark watching); non‐motorized water
sports (ie. kayaking, rafting, sailing); and nature and rainforest exploration using pre‐designated trails for
hiking & trekking, canopy walks, zip‐lines (cable pulley slides); mountaineering; wilderness camping
observing a “leave no trace” ethic; and wildlife & outdoor photography.
Other purely adventure or nature activities such as surfing and wakeboarding are not considered as
ecotourism activities.
Ecotourism Development Requirements
Institutional Development
Local Government – local laws and ordinances should be formulated to help support the development
of ecotourism in the area. These include but not limited to the following:
• Establishment of Protected areas or species or conservation and sustainable utilization
• Strengthen the enforcement of relevant environmental laws and local ordinances for the
protection of natural resources from unsustainable use
• Active collaboration with other concerned agencies (i.e., DENR, DOT, DA‐BFAR with regard to
the protection and promotion of ecotourism products
• Establishment of a Provincial or Municipal/City tourism office and the allocation of appropriate
number of tourism officers
• Establishment of ecotourism development standards and guidelines designed to control the
growth of development in an ecotourism destination (areas that are undergoing the
development of ecotourism guidelines include the Provinces of Palawan and Sorsogon)
• Implement training programs for ecotourism frontliners and operators, such as trail guides,
divers, banca operators, etc.
Private Sector – the private sector has major roles in the development and sustainability of the tourism
industry in the destination.
17
20. • Organize and/or strengthen local tourism councils to be pro‐active body for tourism
development
• Organize trade groups (e.g. resort associations, tour operators) to help strengthen the local
ecotourism industry as well as provide self‐regulation for the private sector. Where available,
local organizations should align themselves with national groups in order to benefit from access
to wider markets, information, best practices and other benefits.
Local Communities – with collaboration from the government or private sector, the host communities
must also strive to be active partners in the development of ecotourism products. Cooperatives and
people’s organizations can be organized for the local communities.
Product Mapping and Prioritization
All stakeholders must come together and contribute in the identification and mapping of ecotourism
products in the destinations.
Identified ecotourism products should then be prioritized in order to optimize the resources that will be
utilized for the province or municipality/city.
In the identification of ecotourism products, ensure that the following will be observed or noted:
• That waterfalls are year‐round and will not dry up during the summer months. The headwater
must not come from farm lands (or swimming should not be allowed in such kind of waterfalls)
• Beaches are free from structures or large volume of informal settlers
• Protect shorelines by establishing at least a 15‐20 meter setback from the high water line, which
should be designated as a “no‐build” zone
• Marine sanctuaries are fairly protected and ecotourism activities such as scuba diving and
snorkeling are explicitly allowed by the stakeholders (to prevent social resentment and resource
use conflict)
• Affected Indigenous communities must be involved in the development of ecotourism products
in their area to ensure that the activities do not compromise/offend their culture and they can
participate and benefit from the operation of the ecotourism product
Product Development
The development of ecotourism products usually requires minimal capital investments on the part of
the local government. The primary focus would rather be on the development of programs and capacity
building of the community to create an impressive product.
Site Development – very minimal development of the site; usually limited to visitor centers, restrooms,
and trails. Sites that can accommodate high visitor volumes would require other facilities and
infrastructure such as restaurants, roads and parking lots.
Ecotourism Activity Development – appropriate gear and equipment must be made available to the
visitors coming into the area for specific ecotourism activities such a binoculars for bird watching, and
tents for camping
18
22.
a chance for the ecotourism product to attract an ideal amount of visitors. Table 1 is an example of a
product‐market match
Table 1 Example of Product‐Market Matching
Ecotourism Product Market
Seagrass Domestic Tourists
Students
Waterfall Domestic Tourists
(indicate name) Students
Small Groups
Age 12 – 50
Foreign Tourists
Group
Backpackers
Age 12 ‐ 50
Marketing is a very expensive, but usually necessary component of tourism development. However,
most sites that offer ecotourism would have zero or very limited amount available for marketing. Thus
market exposures must be optimized while costs are brought to the minimum. Some of the marketing
strategies for ecotourism products are:
• Publicity (write and submit articles, with photos to publications; invite writers to the site)
• Conduct of familiarization trips for possible tour operators, the media and other suppliers of
visitors (would require resources, best to partner with the private sector, or seek sponsorship)
Marketing must already be done even while the product is undergoing development. Gestation is a
major concern in tourism development wherein products that are developed first without any market
exposure, would find it hard to take off since it usually takes time for the market to start visiting a
destination.
To optimize the limited resources and maximize exposure, the local government units should also
explore the possibility of linking their tourism products with the neighboring destinations. This strategy
helps create more attractive tour programs.
The DOT has also been actively promoting the Philippines both to domestic and international markets
through media exposures and local and international travel trade events. The LGUs can seek DOT’s
assistance in helping market their tourism products.
20
23.
Product Management
Sustaining an ecotourism product requires professionalism and high private sector involvement. Local
government units must ensure that the concepts and limitations of ecotourism are adhered to by the
tourism service providers. These should be supported by the appropriate budgets (where relevant) and
ordinances as needed. Local communities should also be continually involved in the operation of the
ecotourism products and ensure that they adequately benefit from the operation of the ecotourism
product.
Table 2 Checklist for Ecotourism Requirements
1. Institutional • Establish Protected Areas or Species for conservation and ecotourism utilization
Development • Environmental laws and local ordinances formulated and enforced
• Active collaboration with other government agencies such as DOT, DENR, DA‐BFAR
• Establish provincial or city/municipal tourism office, with staff and budget
• Establish Ecotourism Standards and Guidelines (or Ecotourism Code)
• Training Programs for ecotourism frontliners
• Organize or strengthen tourism council
• Organize trade groups (accommodation, transport, tour operators)
2. Product Mapping • All stakeholders to identify and map out existing and potential ecotourism sites
and Prioritization • Prioritize the ecotourism sites into major and potential sites
3. Product • Site Development:
Development o Identify if site can accommodate low or high visitor volume
o Build appropriate facilities
• Activity development:
o Identify appropriate activities per site
o Identify development needs (e.g. trail, water source)
o Procure needed gears and equipment (e.g. kayaks, life vests, binoculars, etc.)
4. Community and • Identify stakeholders and community members who will be affected and involved
Stakeholder in ecotourism development
Organizing • Conduct training needs assessment for the local community members
• Organize Community members into people’s organizations, cooperatives, groups
of service providers (e.g. boatmen association, eco‐guides group)
5. Skills Development Implement skills training for the community members to be involved in ecotourism
development
6. Business Planning Formulate business plan for the destination and each activity developed for the area.
Development
7. Market Planning • Identify market sources and characteristics (e.g. demographics, preferences –
and Marketing national and regional figures available at DOT’s statistics office and website –
www.wowphilippines.com.ph, www.visitmyphilippines.com)
• Conduct Product‐market matching
• Develop materials for publicity (target free)
• Submit publicity materials
• Develop brochures
• Conduct familiarization trips for media and tour operators and other suppliers
8. Product • Ensure that the limitations of ecotourism sites and activities are implemented
Management • Ensure that the quality of ecotourism product and destinationis maintained
• Ecotourism‐related ordinances are formulated and implemented
• Local community involvement is maintained
21
24.
Medical, Health & Wellness, and Retirement Subsector
Definition
Medical Tourism also known as medical travel, health tourism or global healthcare is a trend in which
individuals receive healthcare outside of their home country in order to take advantage of lower prices
and greater accessibility to treatment or better facilities, and even enjoy a vacation 7 .
Medical tourism is divided into three main categories:
1. health & wellness;
2. medical treatment; and
3. retirement
Health tourism, as defined by the World Tourism Organization, is associated with travel to health spas or
resort destinations where the primary purpose is to improve the traveler’s physical well‐being through
physical exercise and therapy, dietary control, medical services relative to health maintenance.
The spa industry in the health and wellness market; is associated a range of alternative/indigenous
treatments to include various forms of massage, water‐mineral treatment, chiropractic & related
physical therapy, aromatherapy, herbal treatment and cleansing diets.
Indigenous treatments such as Hilot and Dagdagay (form of foot massage in the Cordillera Region) have
been incorporated into the mainstream of spa and health services in the Philippines.
The growth of spa and wellness in the tourism industry has provided windows of opportunities for many
destinations in the Philippines in terms of business development and employment for greater sectors of
the society, including the disabled (e.g. blind masseurs).
Medical treatment covers consultations or second‐opinion diagnosis with specialists as well as
procedures ranging from simple cosmetic, dental or eye surgery to complicated and invasive surgeries.
Retirement tourism has emerged as a viable relocation option to the aging population in many
developed countries like the US, Europe and Japan. Higher cost of living in these countries is driving
retirees to move to developing nations where cost of living and health care is less expensive. Medical
tourism is an estimated USD 40 billion US dollar industry worldwide. Forecasts by Deloitte indicate that
the industry will grow to USD 188 billion in 2013.
Health Tourism International estimates that in 2008, up to 1 million Americans will seek medical care
abroad. This trend will continue as US health care costs increases at 8% per year, eating into corporate
profits and household disposable income. Furthermore, Japan now has 22 million elderly nationals
costing them USD 36.5 billion annually in elderly care. The sector may well be in a position to take up
the slack from other traditional & mature tourism subsectors adversely affected by a global economic
slump.
7
Health Tourism International
22
32.
4. Community and • Organize the industry players for medical and spa sectors for
Stakeholder Organizing promotion and self‐regulation.
• Organize local community members for possible involvement
in home care
5. Skills Development • Travel sector to learn the nuances of medical service to be
able to develop most appropriate tour packages
• Proper trainings for high standard spa services
• Home care training for retirement sector
6. Business Planning • Business plan for individual medical and spa facility
Development • Identify community members who can be trained for frontline
(masseurs) and business management
• Identify the needs of facilities that can be supplied by the local
community
• Ensure linkages for the supplies and markets for Spa facilities
• Where local communities are involved business plans that
include social growth and deep value chain.
7. Market Planning and • Work closely with the DOT for the promotion of medical and
Marketing spa tourism
• Work closely with PRA for the establishment of retirement
villages
8. Product Management • Encourage for medical tourism to subsidize the medical needs
of the poor sectors of the society
• Enforce control mechanisms for the ethical practice of medical
and spa tourism
30