Tourism & Food service

Economic drivers
Supply side: Real estate, BPO most promising sector (20% ave.) Demand side: Remittances provide momentum for consumption

Political commitment to fiscal sustainability

Intense focus on improving tax collections Deficit manageable

Sound banking system and fortified reserves

Low non performing loan ratios Healthy buffer of international reserves

Some risks and challenges to growth

Global economic pressures from Greece Long term unemployment in Europe and US Deceleration of growth in China Natural calamities

Issues of massive corruption

Philippines ranks 134th out of 178 countries in Transparency Internationals Corruption Perceptions Index for 2010

Benefits of progress have not been broadly shared

Progress lags behind neighbors

% change in per capita income (1981 2009) Philippines Malaysia Thailand China 20% 400% (4x) 500% (5x) 1100% (11x)

Progress lags behind neighbors

Progress lags behind neighbors

Jan Sep 2011:  mn visitor arrivals (

12 % YOY)

Anti-corruption (Integrity mechanisms)

Reform operations of state-owned enterprises and curb the abuses particularly on excessive bonuses and allowances (GOCC Governance act of 2011) Streamline of bureaucratic procedures and foster transparency Replacing crucial positions of integrity

Public-private partnership projects

Private sector to handle financing, construction, operation, maintenance, rehabilitation in high priority areas Attract much needed foreign investment

Tourism public-private partnerships

Infrastructure development Capacity expansion and modernization in the accommodation and recreation sectors

Availability of support infrastructure (air, land and water) Healthy business environment Transparent and proactive rules and regulations

Philippine tourism development plan (2011 2016)

Accreditation of tourism enterprises (LGUs, private sector) Formulation of a national standards and certification program for tourism facilities and services (international comparability)

Philippine tourism development plan (2011 2016)

LGUs to seek the assistance of capable public and private higher education institutions (local tourism planning, tour guide services, standards-setting and quality assurance for the hospitality sector, site and institutional development, and the showcasing of cultural heritage). Support of Overseas Filipinos in marketing/ as entrepreneurs

Purchase of Burger King franchise in the Phil. Further expansion in China Termination of its small eatery chain Purchase of fast-food chain in China Sale of Delifrance Deal to buy Yellow Cab Culinary school in Makati Bringing Jamba Juice to the Philippines 105 new stores in 2010 81 stores Jan-Sep 2011 (632 in total)

Invasive Species in Caribbean Waters

Emotion-based branding
Focus on how the brand can produce positive emotions among consumers in order to build the brand image Thematic advertising and local store-community programs