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
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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
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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
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7.
Introduction
The National Competitiveness Council (NCC) is a public‐private partnership created with the primary
objective of improving the Philippine standing in international ranking projects (i.e. Institute for
Management Development, World Economic Forum) from the bottom third to the upper third by 2010.
As part of its activities under the Efficient Public and Private Sector Management Working Group, the
NCC organized the “Local Government Unit (LGU) Conference” on October 8, 2008. With the theme
“LGUs for Sustained Philippine Competitiveness Best Practice Models”, the objectives of the event were
to: (a) Work towards a common acceptance of the concept of competitiveness as applied to LGUs; (b)
Showcase best practices in attaining competitiveness; and (c) Forge a commitment to action by the
government, both national and local, and the private sector to vigorously pursue the objective of
improving the competitiveness of the country in order to promote economic growth in general and local
economic development in particular.
Objectives
The GTZ Private Sector Promotion Program (SMEDSEP) provided support to the NCC in carrying out the
LGU Conference, specifically in the development of a guide for assessing LGU competitiveness in
Tourism.
The Guide is intended for use by local government units in assessing their potential advantages for
tourism development in their locality. It is by no means an exhaustive study, rather, it is a practical guide
for local government units to identify what constitutes the tourism industry as a whole, to understand
the range of tourism activities that are available in the domestic market, and finally to determine the
competitive advantage of the locality within the tourism value chain.
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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
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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.
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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;
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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.
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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
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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
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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
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Tourism Subsectors
Ecotourism
Definition
With the natural areas as the main component of ecotourism, many of the provinces, cities and
municipalities in the Philippines can position themselves into this sub‐sector. This can also help in the
protection of the natural resources by providing a tangible sustainable alternative use for the local
communities.
Ecotourism is a form of sustainable tourism within a natural and cultural heritage area where
community participation, protection and management of natural resources, culture and indigenous
knowledge and practices, environmental education and ethics as well as economic benefits are fostered
and pursued for the enrichment of host communities and satisfaction of visitors.
It is often times used inter‐changeably with Sustainable Tourism, Responsible Tourism, and Green
Tourism. Sustainable Tourism is a form of tourism that does not reduce the availability of resources and
does not inhibit future travelers from enjoying the same experience. Responsible Tourism operates to
minimize negative impacts on the environment while stakeholders take responsibility for and the impact
of their actions. Green Tourism describes "any activity or facility operating in an environmentally friendly
fashion".
Characteristics of Ecotourism
In order to fully appreciate the concept of ecotourism the following premises must be recognized by
stakeholders going into the development of ecotourism products
• Nature‐based – All ecotourism products must be nature‐based or located in natural areas, with
zero or minimum development similar to those in urban areas. With the natural environment as
the main selling point of ecotourism, it is most practical that said environment must be kept in
their most natural form.
• Responsible and Sustainable – The moral ground of ecotourism is that it promotes responsible
and sustainable form of tourism that puts value first to environmental protection before profits.
It respects the carrying capacity or limits of the site in terms of development and volumes of
visitors in order to ensure that the quality of the natural resources or ecotourism products are
maintained for the succeeding generations of host communities and visitors.
• Ethical – Ecotourism puts much weight towards respecting the cultures of host communities as
well as the visitors. Local folks and their traditions are not exploited, rather the tour programs
are formulated with their participation or inputs and with respect to their social fibers (e.g.
tribal communities shall not be forced to conduct ceremonies for every tour group, rather, tour
groups will visit the community in time for the traditional date of ceremony and with the
approval of the community).
• Community‐based – Ecotourism always seeks to involve the host communities in the
identification, development and operation of products for this sector of the travel industry. This
13

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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)
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17.
Novice
Ecotourists
Mass
Ecotourists
Market
Ecotourism
Destination
Figure 1 Indicative market sizes of three ecotourism market segments
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Access
Depending on the potential market demand or the target market for an ecotourism product,
development of access must conform to the projected volume of visitors to the site. Access
development must also conform to the desired level of protection of the natural features in a
destination. Access to areas that cannot absorb large numbers of visitors (e.g. mangroves, caves, and
rainforests) must be very limited, allowing only trails, boardwalks, or dirt roads leading to the sites. On
the other hand, products that can accommodate large numbers of visitors (e.g. beach areas that can
accommodate high density development) should allow the setting up of high volume access facilities
and infrastructure such as paved roads and visitor centers.
Access facilities such as boardwalks are also effective ways to properly control the movement of visitors
and minimize potential impacts resulting from uncontrolled movement of people in the ecotourism
sites, such as in mangrove areas, habitats of rare flora or fauna and the like.
Accommodation
Ecotourism does not require massive investments in accommodation facilities. Simple facilities ranging
from homestay to inns would be enough to provide for visitors in ecotourism destinations. The highest
type of hotel development would be the standard class.
In case of exceptional products that attract large volumes and different segments of the tourist market,
development of high density accommodation such as hotels should be limited to identified development
zones or the town/city centers. This is done to prevent the erosion of the quality or pristine condition of
the ecotourism product.
Applying “green technology” and indigenous use of local resources in the design, building, and operation
of board and lodging facility is also highly desired in the so‐called ecolodges. Their operations must be
energy efficient and strive to reduce or minimize carbon emissions & pollutants using renewable sources
of energy (ie. solar, biomass, wind), observing the 3Rs (reuse, reduce, recycle) and abiding by or
exceeding environmental standards in water and solid waste management.
Establishments should also source their supplies from local MSMEs to the maximum in order to benefit
the local community, and to keep the transport costs and the carbon footprint as small as possible.
Attractions
Typical ecotourism attractions include pristine natural environments such as primary growth forest and
jungles, caves and other rock formations, beach and coastlines, mountains and volcanoes, waterfalls and
lakes or water reservoir. Most of these sites may be situated in protected areas, sanctuaries and
national parks.
Although most ecotourism products would be ecosystems‐based (such as forests, volcanoes, rivers and
coral reefs), some would be focused on a specific animal (whale shark, dolphin, turtle) or natural feature
(waterfalls).
Indigenous communities living amidst and depending on the natural environment are often part of the
total ecotourism makeup of a destination.
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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.
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• 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
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21.
Community and Stakeholder Organizing
Stakeholder participation is crucial in the development of ecotourism products and destinations. Proper
consultation should also be incorporated in order to make them actively buy into the ecotourism
program and be active partners instead of potential opponents.
Identify the on‐site and off‐site (government agencies, tour operators) ecotourism stakeholders and
invite them in the ecotourism product identification and development.
Identify the benefits and possible roles of the stakeholders and seek their commitment to fulfill their
roles.
Identify skills and training needs for the stakeholders, especially the local communities. Encourage or
assist the stakeholders to organize themselves (e.g. boatmen, guides, drivers, etc.). Conduct training
with the assistance of appropriate government agencies such as the Department of Tourism or
concerned organizations.
Skills Development
The success of ecotourism products rests largely on the skills of guides or service providers. The
following skills must be developed for the destinations:
• Mountain Guide
• Cave Guide
• Birdwatching Guide
• Dive Guide and Dive Master
• Ecotourism Guide
The DOT’s accreditation office already implements training modules for mountain and cave guiding. It is
also in the process of developing training modules for birdwatching and ecotourism (nature) guiding.
Scuba diving is a fairly developed industry wherein international certifying bodies such as PADI and NAUI
provide training modules for dive guides and instructors.
Business Planning Development
Ecotourism is a business undertaking. No matter what the objective may be in developing ecotourism
products (for revenue or for conservation), sound business models should be ensured in order to sustain
the ecotourism program. Included in the business planning process would be the identification of
priority ecotourism products, the business models that can be developed, marketing strategies, and how
the business shall be conducted.
Market Planning and Marketing
It should be recognized that tourism is a market‐based industry. Meaning, for every tourism product,
there is a corresponding market segment that will avail of that product. This is very important as
effective marketing usually spells the success or failure of a new tourism product. The best way to
effectively address this is to conduct a product‐market matching in order to determine whether there is
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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.
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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
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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
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In the Philippines, revenues from the Medical, Health & Wellness and Retirement sub‐sector have been
growing at a fast rate. Revenues in 2007 reached USD 700 million and are expected to reach USD 3
billion and USD 8 billion in 2010 and 2015, respectively. 8 In spite of the sub‐sector’s rapid growth in the
Philippines, the country is only earning a fifth of what Thailand, India, and Malaysia earn annually.
Potential and prospects remain optimistic as the prices of medical and surgical procedures in the
Philippines are 30% to 50 % cheaper than elsewhere (DOH); has a competitive edge since the country
has and supplies some of the world’s best doctors, nurses, and health‐care providers; and affordable
healthcare.
Another positive outcome of the growth of medical tourism is that the opportunities for the increase of
paying clients also affords the growth resources allocated for other sectors of the local society such as
increased subsidy for ward patients and other social programs of the medical facility.
Characteristics of Medical Tourism
The main reason for a tourist trip is to seek an alternative quality and cost efficient medical service
elsewhere due to expensive healthcare costs in a traveler’s home country. A destination must have a
significant price, quality, and regulatory difference to take advantage of this trend. Existing safe and
quality healthcare available in the destinations health facilities should be comparable or exceed those
offered by other leading nations. Besides seeking a safe and less costly substitute treatment, travelers
often opt to enhance their stay with a vacation for rest and recuperation. These activities should create
economic opportunities for the local medical and health care communities.
Medical Tourism Requirements
Quality and affordability are key requisites in order to flourish as a desired medical tourism destination.
A destination must have world class medical facilities staffed by qualified and experienced medical &
health care personnel. These facilities should have a proven system of maintaining the quality of
services; human resources management and training; a careful selection system of health care
professionals; constant professional development; and regular improvement of technology &
procedures. Moreover, facilities should have access to financing for constant upgrade and maintenance.
Affordability is measured by the presence of a significant price difference between source and
destination countries. Options should be made available for similar medical treatment, affordable
financing from rising insurance costs and private medical care, and relief from cumbersome & time‐
consuming requirements. A less restrictive healthcare regulatory environment without compromising
quality care is beneficial in attracting medical tourists.
Services must cater to individual needs by allowing consumers to select a provider based on
maintenance of certain standards, medical ethics and quality, and ease of travel to and from the medical
facility and nearby tourist sites. Providers must also observe cultural sensitivity and understanding of
international diversity in providing their service. This is an important consideration since differences in
8
Philippines at the Crossroads of Competitiveness, Amb. Cesar B. Bautista presentation at the 2008 State of Philippine
Competitiveness National Conference, SMX July 15, 2008
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nutritional habits, religious practices, family interactions and other customs must be recognized,
understood and addressed.
Components of Health and Medical Tourism
Arrivals
Medical Tourism
Promoting and marketing the country and its facilities should capitalize on its reputation for affordable
prices, English language fluency, an abundance of well‐trained doctors and nurses, and unique
hospitality and convalescent care.
To spur more visits medical service providers are encouraged to establish links with foreign Health
Maintenance Organizations (HMOs), national health care service, insurance companies, non‐profits, and
partner foreign medical institutions to facilitate matching of potential patients. Furthermore, facilities
could invest in advance information systems and use clinical information technologies to improve
patient‐health care provider matching. Links with top foreign medical institutions could yield further
advance training and collaborative procedures.
Spa
On the side of spa sector, it thrives both on domestic and foreign tourists. Foreign tourists will be
attracted to visit the Philippines for the unique (hilot) and quality services, ambience and facilities; while
the domestic market are lured to avail of the spa services in destinations more for wellness needs. Some
of the major spa destinations in the Philippines include The Farm at San Benito in Batangas Province,
Mandala Spa in Boracay Island, and Nurture Spa in Cavite Province.
On the other hand, most of the major hotels and resorts have incorporated spa as one of their major
services.
Retirement
The retirement market consists both of Filipino ancestry and foreign individuals. What attracts this
market would be the climate, the sceneries and the ease of living in their new community. A
government agency, the Philippine Retirement Authority, has been at the forefront in attracting this
market and working closely with local government units and the private sector in establishing
retirement destinations. One retirement village that is currently undergoing development is Silvertown
Retirement Village in Batangas Province.
Access
A most basic requirement is to establish networks with international & local transport operators to
provide customized service to and from the facility. The establishment of more tourist healthcare
assistance providers could be valuable by offering facilitation services (i.e. patient records transfer &
authentication, legal and insurance documentation, special transport needs, travel bookings, vetting of
physicians etc.) to visitors. Moreover, this minimizes the dangers of providers and customer’s common
use of informal channels of communication‐connection‐contract, and which in some cases tend to mean
less regulatory or legal oversight to assure quality and less formal recourse to reimbursement or redress.
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Accommodation
The main draw for any medical tourism destination is the presence of robust facilities to handle quality
yet affordable inpatient and outpatient care and provide excellent delivery & coordination of pre and
post discharge care. To enhance the patients’ positive experience, these facilities should provide a stress
free and vacation atmosphere. Several major hospitals (e.g. St. Lukes, Asian Hospital) have already
created wings that cater specifically to medical tourists.
Among the attributes that make facilities stand out are: acceptable medical ratios‐ patient to various
medical staff, medical staff having required training along with qualified certification exams, preferably
medical institutions should have affiliates with top‐tier and reputable foreign provider organizations,
presence of foreign trained physicians and care teams, adopts evidence‐based clinical guidelines, and
facilities should have coordination capabilities with various agencies (i.e. insurance, government, and
other facilitators).
To assure the highest quality clinical care and medical facility standards, the government must require
all participating medical institutions in the Philippine Medical Tourism Program (PMTP) certification
from providers of international healthcare accreditation. These accreditation standards are designed to
improve healthcare quality at national and international levels. Among such organizations are the Joint
Commission International (JCI), Trent Accreditation Scheme (Trent), International Society for Quality in
Healthcare (ISQua), National Committee for Quality Assurance (NCQA), and the European Society for
Quality in Healthcare (ESQH).
Hospitals must also have access and provide provisions for adverse events requiring services unavailable
in their medical facilities (i.e. air transport, 24/7 link & matching to organ donor & blood banks,
mortuary & funeral).
While accommodation requirement for medical tourists would include de luxe hotel facilities, the ones
for the spa and wellness would be more suited for themed units that can be located in mountain or
beach resorts.
Spa and wellness facilities must continue to innovate services and facility ambience to make them more
unique and attractive. Indigenous methods must also be researched and effectively applied as part of
the menu of services where they are applicable.
Attractions
The hubs of medical tourism are in urban centers in Metro Manila and Cebu owing to existing health or
medical facilities. Among the hospitals in Metro Manila that currently provide services to foreigners are:
St. Luke’s Medical Center, Asian Hospital, Medical City, Makati Medical Center, Capitol Medical Center,
Lung Center, Philippine Heart Center, National Kidney and Transplant Institute and the Philippine
Children’s Medical Center. Other specialized ones are the Research Institute for Tropical Medicine, Asian
Eye Institute, and various accredited cosmetic surgery facilities. Three hospitals in Cebu include: Cebu
Doctors, Chong Hua and Perpetual Succour.
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Health and Wellness establishments are dispersed all over the country with the best ones located in
pristine and rural locations. Most are promoted as part of ecotourism packages or value services offered
by resorts.
Spas can become attractions by themselves (some are classified as destination spas) while others
become important components of the whole range of tourism offerings in the area.
Retirement villages are usually located in areas that offer both rural ambience and nearby service
centers. While the climate could be the primary lure for this market, the availability of services and
facilities make them firm up their decision to choose a retirement destination.
Activities
Medical
Services offered cover a broad range which typically include selected medical procedures as well as
complex specialized surgeries such as joint replacement (knee/hip), cardiac, dental,
cosmetic/reconstructive, angioplasty, prostate resection, hernia repair, tonsillectomy‐tonsil removal,
hysterectomy‐uterus removal, eye related, reproductive treatment and other assisted reproductive
technology treatments. Other non‐surgical procedures and services cover every type of health care to
include psychiatry, alternative treatments, convalescent care and even mortuary services.
The presence of other complementary activities, like beaches, golf, and shopping enhance the attraction
of a medical tourism destination.
Spa
Spa services typically include the usual massage and other wellness services, which may include
traditional practices (i.e., hilot). Others include detoxification while some would have exercises (and
yoga) as part of the activities offered. For resort‐based spa facilities, the opportunity to do other
activities such as swimming or exploration would usually be offered to the guests.
Retirement
The retirement market requires a wide variety of activities to keep the clients occupied and interested.
Golf is one of the major motivators for this market. Other low‐impact and non‐strenuous sports
activities, such as tennis, gym, and badminton are also offered to the retirees. Visits to nearby
attractions such as beaches and local communities can also be made part of the range of activities
offered to this market
Medical Tourism Development Requirements
Institutional Development
Hospitals should establish facilities and develop the appropriate complement of services and staff for
the medical tourists.
Provide opportunities for clinics (for non‐invasive procedures) and dental facilities to be part of the
medical tourism industry.
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Work with HMOs to allow the entry of more medical tourists.
Coordinate closely with the Department of Health on the ethics and allowed procedures for medical
tourism.
Establish guidelines for medical and wellness services with regard to providing ethical and wholesome
services.
Encourage the medical sector and the tourism industry to organize themselves into a body that
promotes and self‐regulates the medical tourism sector, and spa and wellness tourism sector.
For the retirement sector, work closely with the Philippine Retirement Authority in the identification of
possible retirement villages or projects.
Product Mapping and Prioritization
Product mapping for medical tourism involves identifying hospitals that already offer or are planning to
develop facilities and services for foreign or transient patients.
It is also important to map out the types of medical services or procedures that are offered in each
hospital to effective market the product.
The mapping of spa services and facilities would include the identification of the type of facility and the
services offered.
On the other hand, the involvement of local communities for wellness tourism might involve the
mapping or identification of communities to be trained and made part of the range of service providers.
Retirement villages must be properly identified as it will involve medium to large‐scale development.
Said villages should be conveniently sited near or adjacent to the major tourist attraction, as well as
within easy distance from a local community that will provide the basic services to the retirement
village. They should also be within close proximity to medical facilities to cater to emergency and
maintenance healthcare needs of the retirees.
Product Development
Aside from the medical procedures, tourism packages should also be developed in order to increase the
length of stay of the medical tourists and their companions and contribute to the total tourism receipt
of the area.
For spa tourism, indigenous knowledge on wellness must also be developed in order to make the
destination more attractive to foreign visitors.
Retirement tourism facilities should also offer tourism products within their complexes as well as within
the municipalities/cities and provinces they are located.
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Community and Stakeholder Organizing
For the medical tourism and spa services, it would be best if the stakeholders—medical, spa, and
retirement organizations and the local tourism industry‐‐organize themselves into a cohesive trade unit
that is able to promote their industries, as well as regulate their members. Government involvement
would be very minimal and would largely be concentrated on coordination or minimal staff work to help
in the setting up of the trade organization.
As for the promotion of indigenous wellness knowledge and the involvement of local communities,
proper organizing must be undertaken. This would involve the identification of possible community
members who can be trained for the spa and wellness industry, if there is a need – help set up a
cooperative or organization of service providers.
The role of the local communities could be very significant for the retirement sub‐sector as this will be
dependent on house care needs.
Skills Development
The skills requirement for medical tourism shall be within the domain of the health sector. On the other
hand, the travel sector must learn to appreciate the nuances of the medical field in order to create
appropriate tourism packages both for the patients and their companions.
Spa services must be learned by the service providers and community partners. Proper training on
massage and related services must be provided in order for the community members to deliver the
required services for the spa and wellness industry.
For the retirement sub‐sector, skills needed would involve ambulant patient care and related services,
and activity coordination.
Business Planning Development
Business plans shall be undertaken by individual medical and spa facilities. Whereas, projects that
involve the local communities would have business plans that include social growth (deepening the
value chain of tourism to the community). This includes:
• Identification of community members who can be trained for the program both for frontliner
(masseurs) and business management.
• Identification of the needs of the spa facilities that can be supplied by the local community
• Ensuring the linkages for the supplies and markets for the spa or wellness facility
Market Planning and Marketing
The primary markets for the medical tourism industry are the foreigners and balikbayans or Filipinos
residing overseas. The spa sector attracts both the international and domestic markets. Marketing for
medical tourism employs either an expensive participation into international trade fairs or through
effective use of the internet and websites.
The DOT has been actively promoting the Philippines as a medical tourism destination. The LGUS can
coordinate with the DOT for their areas and services to be marketed to the foreign markets.
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Aside from the marketing efforts already being implemented by the Philippine Retirement Authority,
local destinations can produce printed collaterals or good web designs highlighting the advantages of
retiring in their localities.
Product Management
Medical tourism is a huge undertaking requiring the cooperation of large stakeholders such as major
hospitals. The quality and the cost of the services must be kept at their highest standard and value for
money of the clients. For destinations that promote medical tourism there must be explicit
understanding that it will help subsidize their social programs. Medical ethics is always a valid concern in
medical tourism, local government units must work hand in hand with the Department of Health
regarding unethical practices and create local laws and ordinances to help control the industry. Further,
the LGUs can enforce control mechanisms to clinics and spa facilities that are unauthorized to perform
certain medical procedures.
There is also a need to effectively manage the spa industry to keep the quality of service and facilities
ideal for the tourist market. The spa industry has already gained a high level of credibility and the local
government units must do their share to maintain it by ensuring the strict enforcement of health and
sanitation standards. Unethical and illegal services (e.g. front for prostitution) must be identified and
corresponding ordinances formulated to prevent such practices from occurring in the destination.
Product management for the retirement industry would involve ensuring that the quality of living is
maintained in the area to keep the destination attractive to the market. Social services and
infrastructure, as well as peace and order must be kept at an ideal level.
Table 3 Checklist Medical, Spa and Retirement Tourism Requirements
1. Institutional Development • Hospitals to establish facilities and create services that will
cater to medical tourism market
• Provide opportunities clinics and dental services to be part of
the medical tourism industry
• Work with foreign HMOs to allow entry of medical tourists
• Coordinate closely with DOH on medical ethics and allowed
procedures
• Organize stakeholders for medical tourism and the spa sector
• Coordinate closely with the Philippine Retirement Authority
2. Product Mapping and • Identify hospitals and their facilities and services that they
Prioritization offer to medical tourists
• Identify spa facilities and services they offer
• Identify possible sites for retirement villages
3. Product Development • Develop tour packages to complement the medical services
• Identify, train on, and offer indigenous forms of spa services
to offer to visitors
• Develop tour programs within and near the retirement
villages
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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
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Meeting, Incentives, Conventions & Exhibitions (MICE) Subsector
Definition
MICE or “Meetings Industry” refer to a type of tourism in which groups or individuals are brought
together for some particular purpose (ICCA 2007). Unlike the other types of MICE tourism, (i.e.
meetings, conventions and exhibitions), incentive tourism is usually conducted purely for entertainment
rather than professional or educational purposes.
Bids for MICE events are normally placed by specialized convention bureaus located in particular
countries and cities. Theses groups are established for the purpose of bidding on MICE activities. The
subsector is known for its extensive planning processes and demanding clientele.
Characteristics of MICE Tourism
MICE tourism often caters to groups or individuals who gather for a particular event or purpose. This
requires a suitable venue and are bided and planned in advance.
MICE gatherings vary in purpose. Meetings and conferences or conventions, are usually conducted for
professional or educational purposes. It is also organized to discuss issues of concern and advancements
to a profession such as recent developments and sub‐specialization conferences of lawyers, doctors,
engineers, and accountants. Examples would include a gathering of doctors to discuss specific practices
and mayors to discuss issues that may affect local areas (e.g. coastal management).
Exhibitions and trade shows typically focus on a particular industry segment and feature keynote
speakers, vendor displays, and other information and activities of interest to the event organizers and
attendees. On the other hand, incentive travel is a leisure trip undertaken as a reward for expectations
met or exceeded. These would include events such as computer shows (Worldbex), furniture fairs
(FAME), and travel marts (Philippine Travel Mart). .
MICE Tourism requirements
To engage in MICE tourism, the destination must have venues of suitable capacity with adequate staff &
equipment and accessible by any local transport. These venues should have the capability & capacity to
service various food & beverage requirements. In addition, the venue must provide access to utilities
and support services such as electricity, water, communications/ICT, trucking and transport,
health/safety/security, sanitation/rest rooms, PR/AVR/ advertising/marketing, supply & logistics,
chairs/tables/deco etc. Proximity to numerous retail/health/financial/entertainment establishments &
house of worship within the vicinity of the venue is a plus.
The MICE market varies in sizes and interests. While large groups that can reach several thousand
delegates are often the high profile arrivals, there are also smaller, but numerous groups that can
number less then ten individuals to several hundreds.
The destination is usually promoted by offering an array of capabilities to provide full service
management for MICE including, but not limited to conference design, registration, site and venue
selection and booking, audiovisuals, IT support, logistics, leisure management, security services,
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marketing, printing and web services, sourcing speakers, funding and sponsorship, financial
management and budget control.
MICE events require extensive and detailed planning, management & coordination. Hence, professional
meeting and convention planners; event management groups from the convention's hosting company;
city tourism office; or by outside specialists are needed to handle international or local MICE activities.
Most large cities will have a convention center dedicated to hosting such events.
Components of MICE tourism
Arrival
A high volume strategy (conventions) or niche marketing (small functions) is usually adopted to promote
and market the destination internationally & locally as a safe, secure, clean, versatile and
environmentally friendly venue.
Access to the destination necessitates seamless connections and arrival processes. More often
assistance teams are available to facilitate the transit of tourist & baggage from the transport terminal
to their accommodations and MICE venue.
To facilitate the influx of MICE participants, the venues infrastructure and facilities should conform to
international standards & regulations. Despite being resource intensive, MICE destination planning and
development must adhere to environmental standards and observe local cultural norms and practices.
International MICE tourism is sensitive to developments and global trends. To keep pace, improved
capability of the national (i.e., Philippine Convention and Visitors Corporation) & local trade convention
or visitors bureau (Provincial/City/Municipal Tourism office) must be emphasized and encouraged. This
would result in gains to the quality of MICE promotions & marketing, planning, and management.
The domestic MICE market is more resilient than the foreign market. It has also proven to be a reliable
and major market for destinations that offer appropriate facilities. In some destinations, the main
market that supports the tourism industry would be the domestic MICE market. The Philippine
Advertising Congress, which is held every two years, has generated much interest in the domestic MICE
market owing to the large numbers of participants they attract.
Access
Efficiency of operations is foremost among MICE tourist since most are business travelers who are
usually pressed for time while in the destination. Thus, an ideal MICE destination must have an efficient
local transport network and accessible to nearby tourist destinations. Proximity of MICE facilities to an
airport & other affordable clean, safe & secure public transport facilities is a desirable feature. In some
international conventions where the convention facility is located in an area that is inaccessible, the
organizers establish transport routes that have designated drop‐off/pick‐up points for participants for
the duration of the activity.
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