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    Negros Tourism Marketing Agency Negros Tourism Marketing Agency Document Transcript

    • Small and Medium Enterprise Development for Sustainable Employment Program www.smedsep.phFacilitating the Set Up ofNegros Island Tourism, Inc. (NITI)A Private Business Tourism Marketing AgencyAugust 2006
    • Written by:Astrid Bessler, astrid.bessler@gmail.comEdited by:Carisa Aleta, ca-gtz@mozcom.comProgram Officer, SMEDSEPPartner Information:Negros Island Tourism, Inc. (NITI)Bacolod Convention Plaza Hotel, Bacolod CityMs Ruth Cruz, PresidentMobile No.: +63(917)3015581Email: tqplace@mozcom.comPublished by:The Small and Medium Enterprise Development forSustainable Employment Program - www.smedsep.ph10th Floor, German Development CenterPDCP Bank Center BuildingV.A. Rufino cor. L.P. Leviste StreetsSalcedo Village, Makati City, PhilippinesMs. Martina Vahlhaus, Program Managermartina.vahlhaus@gtz.dePrinted on: August 2006
    • Small and Medium Enterprise Development for Sustainable Employment Program www.smedsep.phFacilitating the Set Up ofNegros Island Tourism, Inc. (NITI)A Private Business Tourism Marketing AgencyAugust 2006
    • TABLE OF CONTENTSLIST OF ABBREVIATIONS........................................................................................ 3FOREWORD.............................................................................................................. 41. INTRODUCTION.................................................................................................... 52. LOCAL CONTEXT: MAJOR POTENTIALS AND CHALLENGES .......................... 53. APPROACH ........................................................................................................... 6 3.1 Process and Interventions ................................................................................ 7 3.1.1 Sub-sector Selection and Validation .......................................................... 7 3.1.2 Key Informants Interview and Tourism Sector Analysis ............................. 8 3.1.3 Results of Sub-sector Analysis Validation and Baseline Study .................. 9 3.1.4 Tourism Expert’s Missions: Marketing Action Planning and Capacity-Build- up of Key Actors.................................................................................................. 9 3.1.5 Set-up of Agency...................................................................................... 10 3.2 Contributions by Partners ............................................................................... 11 3.3 Expected Benefits........................................................................................... 124. SUCCESS AND RISK FACTORS FOR INTERVENTIONS ................................. 125. LOOKING AHEAD: A MODEL MECHANISM....................................................... 13REFERENCES......................................................................................................... 14ANNEXES ................................................................................................................ 15 Annex 1 - Memorandum of Agreement by the National Association of Independent Travel Agencies (NAITAS).................................................................................... 15 Annex 2 - Baseline Data: Bacolod - Tourism Industry Bacolod ............................ 17 Annex 3 - Operational Phase of the Tourism Marketing Agency .......................... 19 Annex 4 - Marketing Plan for Tourism Marketing Agency (NITI)........................... 22 Annex 5 - NITI Certificate of Incorporation with the Securities Exchange Commission.......................................................................................................... 33 -2-
    • LIST OF ABBREVIATIONSDTI - Department of Trade & IndustryGTH - Gifts, Toys & HousewareGTZ - German Technical CooperationNAITAS - National Association of Independent Travel AgenciesNITI - Negros Island Tourism, Inc.SME - Small- and Medium-Sized EnterpriseSMEDSEP - Small & Medium Enterprise for Sustainable Employment ProgramTESDA - Technical Education & Skills Development AuthorityTMA - Tourism Marketing Agency -3-
    • FOREWORDAround the world, tourism development is seen as synonymous with jobs and economicgrowth. In the Philippines, however, the tourism industry is still miles behind despite thelarge potential of its beautiful islands to bring in investments and jobs. Both the private andpublic sectors are keen to promote tourism, but getting them to recognize that they shouldjointly come up with solutions is not a straightforward task. Often the help of an externalparty, in this case the German Technical Cooperation (GTZ), to facilitate this dialogueprocess can be helpful.This paper aims to share GTZ’s experiences in facilitating the set-up of a private tourismmarketing agency to enhance the tourism market in the province of Negros Occidental,Philippines. It illustrates a potential model on how growth catalysts such as GTZ are able toeffectively facilitate locally-owned multi-stakeholder processes built on a public-privatepartnership framework that quickly produces benefits for all. A marketing agency createdfrom a facilitation process fills a gap for specialized services in the local market. A step-by-step approach is described from a catalyst’s point of view in terms of supporting thedevelopment of the tourism sector.Thank you to all organizations and individuals who in one way or another have helped incompleting this study, particularly the members of Negros Island Tourism, Inc. whogenerously gave their time to the project, the Department of Trade and Industry (DTI), aswell as GTZ Advisers Markus Ehmann, Lorenzo Templonuevo and Rita Pilarca. May thisreport serve as a guide to other donors in setting up a similar endeavor in partnership withboth the public and private sector.Martina VahlhausGTZ Program Manager -4-
    • 1. INTRODUCTIONGovernment officials, private sector actors and development professionals increasinglyrecognize that as they confront demanding challenges in a globalized economy, these canbe more effectively met by building partnerships. In private sector development, GTZ’sdevelopment partnerships with public and private sector players engage in building marketsfor business services intended to help local enterprises remain competitive in the market.The overall goal of the GTZ-Small and Medium Enterprise Development for SustainableEmployment (SMEDSEP) Program in the Philippines is to harness entrepreneurial potentialand to encourage competition. SMEDSEP’s strategy focuses on pilot sectors on servicemarket development in priority provinces. In the priority province of Negros Occidental, asub-sector validation process led to the selection of tourism as the pilot sector, wherein theprogram developed a facilitation approach for multi-stakeholder consensus-buildingprocesses. Using a public-private partnership framework, the approach resulted in thecreation of a private tourism marketing agency.By examining the potentials and challenges of the tourism industry in Negros Occidental anddescribing GTZ’s approach and experiences, which led to the establishment of such amarketing agency, this paper hopes to help donors and development professionals inreplicating similar experiences. It is primarily based on workshop and mission reports, asub-sector analysis of the tourism industry in Negros Occidental, and stakeholder interviews.The experiences portrayed are still in an infantile stage as the tourism marketing agency hadjust formally registered at the time of documentation.2. LOCAL CONTEXT: MAJOR POTENTIALS AND CHALLENGESTo give insight on the local tourism context, its main potentials will be briefly presented,followed by a description of the core challenges.The province of Negros Occidental is privileged to be gifted with abundant natural and man-made tourism resources and a fairly competitive infrastructure in terms of quality andcapacity. Bacolod, the province’s capital city, has established itself as a convention centre ofsuperior standard outside of the greater metropolitan area of Manila. Moreover, a varyinglandscape, an attractive coastline and a rich cultural heritage have led to the creation oftourism establishments all over the province. Within the last 10 years especially, manytourism-related small and medium-sized enterprises (SMEs) have sprung up. Moreover, theprovince is particularly well-known for its cultural events and festivals. Negros Occidental’s -5-
    • tourism product – i.e. as a leisure tourism destination – has increasingly been gainingmomentum though a variety of tourism attractions remain marginally or not at all used. Thereis potential, for example, for cultural sightseeing, diving and island discovery, volcanotrekking, and other nature discovery sports.One of the core problems for the tourism industry in Negros is the seasonality of touristarrivals, as manifested in irregular and highly fluctuating room occupancy rates topped witha current downward trend in average expenditure per visitor. At a time when tourists aremerely trickling in the province, the industry is underexploited and faces the difficulty ofoperating profitably. In order to improve the current situation, Negros Occidental has to bemade known as a year-round tourism destination. The absence of tourism branding,destination marketing and product marketing are the most pressing bottlenecks whichneed to be addressed. Furthermore, a strong demand and supply of quality supportservices and training are sorely needed to improve the performance of tourism enterprises.The tourism industry is very fragmented, lacking joint efforts to pursue a marketing strategy.Many local initiatives to stimulate tourism have not led to effective tourism marketing butrather, to an inefficient use of funds. This discrepancy has caused various actors to withdrawfrom a coordinated way of doing marketing. To compound matters, Negros Island isadministratively split into two provinces, Negros Oriental and Negros Occidental. Indeed, anoverall absence of trust and willingness to collaborate was prevailing in the NegrosOccidental tourism industry. Therefore, the challenge lay in creating industry synergiesand a higher level of cooperation and networking between and among public andprivate stakeholders. Fortunately, local stakeholders increasingly realized that they need tojoin forces to address the untapped potential and deficient marketing of the tourism sector.3. APPROACHThe creation of the Negros Island Tourism Inc. (NITI) was a result of a series of analyses,interviews and workshops with various stakeholders that were designed to find a commonunderstanding on how to improve tourism marketing. This transparent process of externally-facilitated discussions between business people and public sector officials resulted in afunctioning public-private partnership framework which paved the way for setting up aprivate Tourism Marketing Agency. -6-
    • 3.1 Process and InterventionsAt the core of GTZ’s interventions was the facilitation of participatory multi-stakeholderdiscussions, a joint action process and the provision of tourism expertise to localstakeholders. To provide an overview of this process, a flow chart illustrating the majorinterventions is presented below, supplemented by the human resources employed. Thevarious interventions are then outlined step-by-step, describing the tools and methods used. MAY 2004 AUG 2004 AUG-DEC 2004 FEB 2005Sector selected/ validated Key informant interviewed Tourism sector analyzed Analysis results validated• 14 days Local • 20 days Local • 5 months Local • 5 days Local GTZ GTZ staff GTZ staff GTZ staff staff• 3 days • 20 days 3 local 15 days Internat. • 2 days Internat. GTZ International consultants GTZ staff staff GTZ staff • 5 days internat. • 4 days external• 3 days external consultant facilitator facilitator • 5-month team of 3 local consultants MAY/JUL 2005 MAY/JUL 05 MAY/JUL 2005 Expert’s missions Marketing Actions planned Key Actors capacitated• 30 days Internat. • Internat. tourism • Internat. tourism NOV 2005 tourism expert expert (see expert (see (May & July May/July) May/July) Creation of mission) • Local GTZ staff • Local GTZ staff NITI• 60 days Local (see May/July) (see May/July) GTZ staff • Internat. GTZ staff• 20 days Internat. (see May/July) GTZ staff3.1.1 Sub-sector Selection and ValidationAs a preliminary intervention, GTZ invited various private and public actors to participate in aconsultative meeting for validating the selection of a pilot sub-sector which GTZ wouldsupport for SME development. The process was as follows: • Agreement on criteria for selecting the pilot sector: high market potential to generate sales and investment and high potential for creating new employment opportunities. • Listing of proposed sectors satisfying the two criteria. • Voting on four sectors resulting in: food processing, tourism, information technology and GTH or Gifts, Toys and House ware. -7-
    • • Assessment of short listed sectors against an Attractiveness Matrix. The selected sectors were rated to which extent they satisfy the two aforementioned criteria, using a rating of high (3), medium (2) and low (1). Plotted on the Matrix, the collective results put tourism first, closely followed by food production/processing.The group unanimously decided in favor of tourism supported by the rationale that aflourishing tourism industry will also enhance demand in the food sector.Attractiveness Matrix  Source: Consuelo E. Misa, “Sub-sector validation workshop May, 14 2004”, Cebu City 2004,p. 11 and p. 14.3.1.2 Key Informants Interview and Tourism Sector AnalysisTo acquire a thorough understanding of the sector, ‘key informants’ – tourism stakeholders –were interviewed as a starting point for the sub-sector analysis of the tourism industry inNegros Occidental. This predominantly qualitative analysis looked at accommodation,resorts, food service, travel agencies and tour operators, and transport operators, andfocused on: • Dissecting final sales markets and market segments; • Determining market channels and trends; • Identifying the primary actors, their roles and relationships and mapping it; • Creating a value chain that describes the above; • Diagnosing constraints and opportunities for growth of the sector; and • Identifying business services and suggesting interventions that can address the constraints. -8-
    • Taking into consideration existing tourism initiatives, the study recommended specificinterventions including tourism promotion, product and market development as well asinstitutional development:Table 1: Specific interventions suggested • Initiate the re-organization of an existing body composed of representatives of key players in the tourism sector and provide organizational development assistance; • Development of a compelling brand and product portfolio, which meet the desire for a distinctive, authentic and unique Negros Occidental experience; • Improvement of destination marketing of Negros Occidental;Source: Boquiren, Marian, 2005, p. 4 ff3.1.3 Results of Sub-sector Analysis Validation and Baseline StudyWhile key informant interviews were being conducted, a tourism core group consisting ofthe most active business associations engaged in tourism in Negros Occidental was formed,including the Alliance of Travel Trade Associates and the National Association ofIndependent Travel Agencies (NAITAS).NAITAS requested assistance from GTZ to provide facilitation for a workshop1 which aimedto discuss the sector analysis results, generating a tourism marketing concept anddeveloping sample standard tour packages. As a result, a drafted Memorandum ofAgreement (see Annex 1) was presented, discussed and approved. This MOA reflects aworking model of existing tour and travel consortia in the Philippines.Following the sector analysis, a baseline study for monitoring progresses and measuringimpacts of GTZ’s interventions was carried out (see Annex 2).3.1.4 Tourism Expert’s Missions: Marketing Action Planning and Capacity-Build-up of Key ActorsTo help the Negros Tourism Core group develop a Tourism Action Plan that would enhancethe Province’s positioning as a tourism destination, an international tourism expert was1 The workshop was part of GTZ’s organizational development efforts to help NAITASenhance the capacity of its members in marketing and product planning. -9-
    • brought in. After a series of interviews, meetings and visits during his first mission to Negros,the expert suggested that a Tourism Marketing Agency offering destination and productmarketing be established so as to tackle the core bottleneck for the industry (seerecommended tasks in Annex 3).At a tourism stakeholder workshop wherein the findings of the mission were presented anddiscussed, the stakeholders expressed the wish to set up such an agency. With the backingof the public sector actors and with as much neutrality as possible, representatives from thetourism associations agreed to pursue the establishment of a marketing agency. Fiverepresentatives from industry associations formed a preparatory committee – a task force-that drafted a technical proposal to examine the feasibility of putting up an Agency. Thefollowing aspects were examined: the legal form of the organization, organizational structure,financing scheme and a 1-2 year work program (including investment and operating costs)as well as the practical set-up.Upon the request of resort owners and managers, the tourism expert also conducted a 2-dayworkshop on improving their marketing skills. Participants from all over the province werestrongly engaged throughout the event, building their capacity and rallying support for theTMA concept.The expert’s follow-up mission that took place two months later focused on finalizing theconcept of the Tourism Marketing Agency (TMA) and motivating all relevant actors to agreeon it. Driven by the small group of private sector actors, the proposed concept wasapproved, and a TMA materialized.3.1.5 Set-up of AgencyA non-stock, non-profit corporation with 5 incorporators – 4 representatives from industryassociations and one from the provincial government – was chosen to be the most suitablelegal setting. The existing tourism associations and government institutions joined forces toform the public-private partnership framework of the Agency. This business form limits theliability of incorporators or board members, be it private or public sector actors, and above allallows the broadest funding from all possible sources. The corporation was named NegrosIsland Tourism, Inc. (NITI) and has been entrusted by government offices and businesspeople to execute marketing for the tourism industry. - 10 -
    • Chart 1: Institutional structure General Assembly of members   The institutional structure agreed on is composed of the General Assembly, the Board of Trustees and the management Board of Trustees (11) team with several positions. The actors coming from the private Private Sector (8) Public Sector (3) sector clearly dominate the Board of Trustees and thereby the direction of the Agency. The exact relations between the three Management Team levels are regulated in the by-laws which determine the control Executive Director Staff and advisory functions within the Agency.    Source: Hilz Ward, Gottfried, p. 6, Aug. 2005In general, the Agency is developed within a public-private framework with largecontributions from the public. NITI keeps the broadest possible funding base and relies onsponsoring, membership fees, and institutional donations from the government and privatesector as well as institutional fundraising events. Relying on different sources for funding isintentional so as to prevent one major donor from having too much influence on the Agency.3.2 Contributions by PartnersThere are three different partners who provided in-cash or in-kind contributions to make thisprocess happen and/or provide funding for the agency: private sector, public sector andGTZ. The tourism task force invested a total of around 4-5 man months in order to undertakefact finding efforts which led to the conceptualization and design of the agency. Four privatesponsors2 expressed their willingness to contribute cash to the agency’s financing, whileother funds will be generated from membership fees. Institutional donations were alsopromised by Bacolod City, the Provincial Government and the Department of Tourism.GTZ’s contributions take the form of mentoring/coaching, managing and technical assistanceprovision (facilitating the consensus-building process, undertaking the sub-sector analysis,and bringing in market-specific expertise)2 Casino Filipino, Air Philippines (airline), Ceres Liner (bus transport), PLDT(telecommunications). - 11 -
    • 3.3 Expected BenefitsThe TMA holds high potential for overcoming the major bottlenecks hampering the tourismindustry in Negros Occidental. Primarily, Negros Island Tourism Inc. pursues the creation ofa unified brand to jointly market and promote the island’s tourism destinations. This wouldgenerate more appeal for a larger market, thereby, enhancing the market positioning of theprovince as a tourism destination. With the establishment of an agency that has themandate, resources and competence to pursue destination and product marketing, theexpected direct benefits are3:1. Increased number of tourists visiting the province (holiday, conventions, sports andcultural events).2. Increased length of stay of tourists and tourism expenditure.3. Improved image of Negros as a tourism destination.4. Negros known as tourism destination in the Philippines and abroad.The baseline study on Negros tourism serves as a useful tool for benchmarking andmonitoring changes in the aforementioned aspects.4. SUCCESS AND RISK FACTORS FOR INTERVENTIONSAlthough it seems too early at this stage of documentation to address success and riskfactors, there are fundamental elements perceived to have greatly contributed to the settingup of the Agency. On the other hand, there are also some factors that could have hamperedthe project from materializing.Table 2: Success and risk factors for interventionsSuccess factors Risk factorsNecessary preconditions in the locality: Situation in the locality:• Economic (sub-)sector with high growth • No champion in place willing to drive the potential is existent process• Dynamic and committed local change • Local hurdles (attitude, politics) seem agents are involved in the process insurmountable• Clear request for assistance comes • Absence of trust hampers joint efforts and from local key actors the building of a common vision• Clear go signal is sent from local actors • Political issues determine the agenda of for driving the process forward workshops and prevent open discussions• Willingness to join forces among public • Interest groups do not join hands and think and private actors and to overcome they are better off, preferring to maintain the hurdles status quo3 Source: Hilz-Ward, Gottfried , p. 5, Aug. 2005 - 12 -
    • Fundamental elements in the process:• A transparent and traceable consensus- building process is applied• Local expectations are levelled off• External support responses to local request for assistance are process- oriented and based on local dynamics• Expert/Facilitator stays neutral to keep the process intact and help in brokering compromises between stakeholders• Public-Private Partnership results in direct benefits expected from the agency’s operations• Experts have excellent communication skills and enjoy high credibility from local actors5. LOOKING AHEAD: A MODEL MECHANISMThe Tourism Marketing Agency is still in its infantile stage, without being fully operationaland with many unfinished organizational details. Therefore, impact monitoring is requiredover the next two years to measure the results of the interventions and to see whether theagency is sustainable. But if proven successful and sustainable, this approach -- thefacilitation of process-oriented multi-stakeholder discussions leading to consensus andviable public-private partnerships – could serve as a model worth replicating in provincialdestinations or larger regions with a promising tourism sector because: • It responds to local requests and dynamics, and boosts local ownership. • It fills a significant market gap for business services, enabling the sector to grow without distorting the market. • It promotes public-private sector collaboration in overcoming bottlenecks through focused initiatives and tapping hitherto marginally-used resources. • It requires low-budget interventions (for donors).Indeed, all partners in this public-private partnership have much to gain in such a setting: anAgency that has the mandate, resources and competence to market and promote theisland’s tourism destinations holds the potential of achieving an increased influx of tourists,an increased length of stay, higher tourist expenditures and an improved image as a tourismdestination. - 13 -
    • REFERENCESBessler, Astrid, “Facilitating the set up of Negros Island Tourism Inc. - Brief Description of anIntegrated Public-Private Partnership”, November 2005, Makati City.Claravall, Bienvenido G., “Tourism Marketing Workshop for the National Association ofIndependent Travel Agencies (NAITAS) in Bacolod City”, February 2005, Pasig City.Consuelo, Misa E., “Sub-Sector Validation Workshop May 14, 2004 Bacolod City”, May2004, Cebu City.Fernando, Myriam, “Establishing baseline data on SMEs in SMEDSEP Pilot Projects:Tourism in Bacolod and LRED in Leyte”, Working Paper, August 2005, Makati City.Hilz-Ward, Gottfried, “Preparation of a Tourism Action Plan Mission Report”, May 2005,Makati City.Hilz-Ward, Gottfried, “Establishment of a Tourism Marketing Agency in Negros OccidentalMission Report - 16-26 July 2006”, August 2005, Makati City.Hilz-Ward, Gottfried, “Establishment of a Tourism Marketing Agency in Negros OccidentalMission Report - 4-13 February 2006”, March 2006, Makati City.Boquiren, Marian et all “Sub-sector Analysis of the Tourism Industry in Negros Occidental“,February 2005, Makati City. - 14 -
    • ANNEXESAnnex 1 - Memorandum of Agreement by the National Association ofIndependent Travel Agencies (NAITAS)KNOW ALL MEN BY THESE PRESENTS:This Memorandum of Agreement is entered into by and between the following businessentities, duly registered with the Securities and Exchange Commission and/or Department ofTrade & Industry and operating with valid business permits from their respective localgovernment units, and duly represented by their respective authorized representativeswhose signatures appear below.Whereas, the aforementioned business establishments are engaged in and are integralcomponents of the tourism industry and/or allied industries in Negros and its municipalitiesand chartered and component cities;Whereas, the aforementioned business establishments desire to formalize their businesscollaboration in the areas or marketing and promotions for Negros and all its municipalitiesand chartered and component cities;Whereas, the aforementioned business establishments desire to formalize their businesscollaboration in the areas of tour product development and tour product delivery in Negrosand all its municipalities and chartered and component cities;Now therefore, in consideration of the foregoing premises, all signatories agree to: 1. Work for the common welfare of the tourism industry in Negros and all its municipalities and charter and component cities; 2. Establish an organizational infrastructure to oversee the joint marketing and promotions of tour products in the respective areas of operations; 3. Conduct joint tour planning and development, including rate negotiation with the various industry suppliers and allied services; 4. Collaborate in the timely delivery of tour product components, including and not limited to day tours and tour packages in the respective areas of operations; 5. Insure quality and reliability in the delivery of tour products; 6. Provide mutual technical assistance and support, including information sharing; 7. Design an equitable profit-sharing scheme taking into consideration third party interventions that require commission-sharing and/or referral fees; 8. Avoid unethical industry practices, including but not limited to, pirating of staff, under-cutting in pricing and negative interaction; 9. Actively seek the participation and support of other industry players, national government agencies and local government units; - 15 -
    • 10. Accept the authority of the lead entity and abide by the decisions of the structured organization.This Memorandum of Agreement shall be valid for a period of three (3) years from the dateof signing and shall be subject to renewal for another three (3) years by mutual consent of amajority of the signatories.Signed this 5th day of February, 2005 in the City of Bacolod.Bacolod Travel DLRS TravelJorelyn Park Shenna Mae AngelesTechnotours WorldboundEstrella Moran Dina SerfinoKimberworld Décor TravelRodney Lumintac Cynthia FloresViva Tours SN TravelMa. Bella Villanueva Roda RegaladoDLRS Travel JHF TravelJade Dionzon Jacquiline JuintusFilipiniana Tours Bonista ResortGreg Flores Johnny CarollPunta Bulata ResortFreddie ZaycoBacolod City Tourism Office Provincial Tourism OfficeImogen Kana-an Jennylind CorderoDTI Negros Occidental TESDA Negros OccidentalVivian Gaston Romelia Nuezca - 16 -
    • Annex 2 - Baseline Data: Bacolod - Tourism Industry Bacolod Quantitative Data By Myriam Fernando (September 2005)Table 1: Indicators and methods of data collection for Bacolod – Tourism SectorIndicator Use Source Contacts Frequency ComputerizedNumber of Identifies growth in Bacolod LGU4 Perlette Annual Yesestablishments the number of Caceresin the tourism establishments in Managementindustry the tourism Information industry Systems (MIS) City Tourism Imogene Annual No - fact sheets Office Kana-an available on Bacolod City request Tourism OfficerNumber of Indicates the City Tourism Imogene S. Annual No - though anrooms increase in number Office Kana-an information fact of establishments Bacolod City sheet on tourist and also the Tourism Officer related statistics expansion of is released on a existing yearly basis. establishmentsGross Sales5 Indicates the Bacolod LGU Perlette Annual Yes increase in Caceres competitiveness of MIS SMEsNumber of Indicates success City Tourism Imogene S. Annual No – though anTourists of BDS provisions Office Kana-an information fact and overall tourism Bacolod City sheet on tourist Tourism Officer related statistics is released on a yearly basis.Table 2: Accommodation in Bacolod – 2004 Type of Accommodation Number of Establishments Number of RoomsHotels 18 10514 Though DTI also has data concerning SMEs, firstly the breakdown of sector type is not as detailed,and secondly, DTI is only responsible for business name registration, so many of the SMEs whichregister with DTI may not actually exist, as this is only updated every 5 years.5 Though Gross Sales can be used as an indicator to measure the increase in SME competitivenessas it captures both the increase in the sales as well as the increase in number of SMEs, many SMEswill not disclose the true value of the Gross Sales due to tax purposes, hence this value is largelyunderstated. - 17 -
    • Tourist Inns 15 450Pension Houses 10 192Resorts 3 68Total 46 1761Source: City Tourism Office – Bacolod CityTable 3: Establishments in the Tourism Sector Establishment 2000 2001 2002 2003 2004 2005Travel agencies 46 38 50 45 50 42Hotels- first class 2 2 2 2 3 3- standard 5 5 9 5 7 6- economy 4 5 2 5 2 2Tourist inns 14 4 11 12 21 17Pensions Houses 11 21 16 22 8 9Resorts 11 10 10 13 11Motels 6 6 10 7 7 4Cinemas 4 - 5 - 5 4Massage Clinics / Spa 5 4 3 9 11 15Antique Shops 5 2 3 - -Gift shops/Handicraft 51 44 27 49 80 107Disco, Bars, KTV 35 29 39 58 96 76Restaurant 111 400 205 260 370 338Fast-food 114 - - - - -Tour Guides 1 - 2 - 1 1Rent – a Car 5 2 2 6 3 5Coffee Shops 13 84 36 42 21 23Lodging houses 8 9 4 2 4 4Golf Club 1 1 - 2 1 1Department Stores 5 3 - 9 8 3Ticketing / Airline Terminal 5 - - 12 9 7Bus Lines / Shipping Terminals 5 - - - - -Shipping Lines 5 - - - - -Total 461 668 435 560 720 678Source: City Tourism Office - Bacolod City (Assessment Tax data sheet) - 18 -
    • Annex 3 - Operational Phase of the Tourism Marketing Agency Recommended tasks for 1st and 2nd year of operation By Gottfried Korbinian Hilz-Ward (May 2005) 1 Branding 1a Task Creation of a strong common brand for the destination Purpose Improves industry cohesion in destination Convincing and lasting client contact, reinforces product sales Sub-Tasks Define and agree on Unique Selling Propositions Define future regional destinations within the Province (i.e. South Coast, Highland, Bacolod, North Coast) and identify their typical character Formulate and visualize branding slogan and logos Put results to discussion and achieve approval Test branding elements with some tourist groups 1b Task Implement a brand-based corporate identity Sub-Tasks Develop a corporate identity for the Marketing Agency and other contact points/agents Disseminate CI to stakeholders for multiplier effects Test CI elements amongst stakeholders 2 Destination Marketing 2a Task Tourism Portal/Website Sub-Tasks Draft information elements Creation of emotional experience Establishment of contact with suppliers and marketing agency Examine sales/distribution element; reservation tool News message board Reflect brand of destination Ensure proper functioning and visitor friendliness 2b Task Tour operator Manual Purpose Provide compact information package to tour operators to assist their product packaging and sales Sub-Tasks Design and produce folder which can take insert documents Prepare (low cost) set of general information for insert: Main attractions with entrance fees, transport modes with schedules and costs, travel times and distances, accommodation establishments with prices and contact details, transport and incoming operator contacts, selected tour proposals, main entertainment facilities with prices, main handicraft and shopping outlets personalised contact with Marketing Agency Prepare (low cost ) set for frequently changing information for insert: calendar of cultural and sports events, calendar of conventions and meetings, new hotel/resort projects 2c Task Publication of Image Brochure Purpose Hand-out material to potential clients to build positive attitude towards destination and guide to travel decision Sub-Tasks Prepare brochure profile for intended target groups: language, - 19 -
    • size, print/photo ratio, information content, emotional experience, number of copies Build up photo archive for publications Design presentation of destination, sub-regions, recreation activities, leisure opportunities Professional brochure design, best photo and print quality General map with main sites Examine sponsoring by strategic partners2d Task Publication of practical information guide Purpose Travel Planner for individual tourists before and after their arrival on Negros Prepare brochure profile for intended target groups: language, size, print/photo ratio, information content, emotional experience, etc Draft text on all practical information for visitors: Main sites and attractions with opening hours and entrance fees, transport modes, distances, schedules and prices, shopping and handicraft, selected hotels/resorts (alternative all hotels/resorts or a separate accommodation guide can be published), travel agencies, special restaurants and delicacies; police/doctor/hospital contact details, Distance travel map and selected city maps Examine financing through commercial advertisements2e Task Publication of event calendar Sub-Tasks Establish early information system on event announcement Set up and maintain event data bank with event organiser contact details Publishing of event calendar (cultural and sport events) every 6 months Examine commercial financing through advertisement3 Product Marketing3a Task Competition analysis Purpose Improvement of competitive position, learning from best practices Sub-Tasks Identification and SWOT of main competing destinations for key products Analysis of comparative opportunities (both convention and leisure) Identification of best practises Data base on past conventions and respective clients Analysis of TO catalogues on comparable leisure packages and pricing3b Task Marketing strategy related to prime products Sub-Tasks Detailed identification of target groups for existing main products Proposal on target group approach and instruments Cooperation with product suppliers on joint marketing Timetable of proposed actions Introduction of success criteria and benchmarking3c Task Establishment of target group data base Sub-Tasks Data base of Tour-Operators (leisure travel and special interest, such as diving) in Philippines, Southeast Asia, Europe, US, - 20 -
    • Australia Data base of Associations and relevant corporate clients in the Visayas, Philippines and gradually neighbouring countries Data base of Professional Congress Organisers in the Philippines and SE Asia Data base of media and journalists who publish tourism features/articles3d Task Publication of a Convention Planner Purpose Support associations and corporate clients in the preparation of meetings and conventions Sub-Tasks Establish a profile of the publication Collect relevant information on: meeting facilities (location, capacities, equipment, contact details, etc), accommodation (capacity, class, prices, contact details), catering firms, transport companies (transport modes, prices, contact,etc.) entertainment facilities, pre- and post-meeting arrangements and organizers, travel agencies and PCO’s Arrange a highly professional publication in outstanding quality3e Task Implementation of selected marketing actions in addition to above Sub-Tasks Preparation of a Marketing Action Programme that is gradually put into practice (depending on the human and financial resources of the Marketing Agency in the first two years of operation; - Media PR campaign (fam trip for journalists, publication of travel articles) - Participation in trade forums and fairs (relatively expensive, selected fairs only) - Tour Operator networking campaign (proposal of model packages, announcement of new products, fam trip) - 21 -
    • Annex 4 - Marketing Plan for Tourism Marketing Agency (NITI) Draft Plan for 2006-2007 By Gottfried Korbinian Hilz-Ward (February 2006) Outline of Marketing Plan 1. Current Negros Tourism Products 2. Product Details 3. Improving the Product 4. Priorities for Marketing 5. Target Markets and Market Segments 6. Adventure Negros – Brand Strategy 7. Destination Marketing Basic Promotion Material (Must Have) I 8. Marketing Actions 2 - 22 -
    • 1. Current Negros Tourism Products English Language Courses Cultural Sightseeing (Game Breeding) Outdoor Sports Active Tourism, Beach Meetings Leisure and Conferences Recreation Events Key growth product 3 2. Product Details Beach Leisure MICE Active Tourism Cultural Language Sightseeing• 65 beach and •Bacolod hotel •Diversity of •Variety of Languageinland resorts and conference landscapes and historic and schools in•Excellent facilities environments other cultural Bacolodbeaches and •Casino Filipino •Kanlaon National sites Universitycoves in Sipalay, •Golf courses Park •Old Silay coursesSagay, •Attractive side •Network of hiking heritage sites SufficientEscalante, San arrangements trails in NP and •Suger privateCarlos, etc beyond plantations and accommodation •Mambucal•Leisure and resort/ wellness •Bicycle trails sugar millswater related to/from Bacolod •Steam railwaysactivities for all •Clubs to support •Bacolod Citytarget groups products (guides) •Mascara•Dive clubs •Excellent diving Festival grounds •Several dive clubs •3 quality golf courses •Resorts for active tourism along beaches and in mountain areas 4
    • 3. Improving the Product Beach Leisure MICE Active Tourism Cultural Language Sightseeing Upgrading of Focus on Mapping and Expand on-site Product studyresorts small and preparation of hiking experience Analysis of mid-size and biking trails Analysis of cock product with Quality meetings and Signage of trails fighting/ game schooös andimprovement conferences (sponsorship) breeding product professionalprogramme Increase trail operators(quality system. Diversi-workshop) fication (inter-island trails) Introduction of a Organisation ofquality label guides, training and(Negros language traininghospitality) Packaging and organisation of tours Improvement of security in diving (decompression) Definition of seasons for active products 5 4. Priorities for marketing State of product Product type Action Product... Is ready to sell Beach holidays Immediate marketing and Meetings, conferences promotion Scuba Diving Sightseeing tours Language class Needs organising Golf packages Arrangements with golf Jet ski clubs and tour operators Install focus groups Needs packaging Mountain biking Install focus groups Road biking Involve tour operators Hiking 6
    • 5. Target Markets and Market SegmentsBeach Leisure MICE Active Cultural Language Sightseeing Domestic: Domestic: Domestic: Domestic: International:Families, couples, Amateur biking/ expatriates Students learninggroups from Corporations from hiking groups Students EnglishBacolod, Iloilo, Negros, Cebu and Expatriates (Korea, Taiwan,Dumaguete Youth exchange Iloilo European biking MICE programme Thailand, China) Corporations with enthusiasts from Cebu Domestic: countrywide Trekking groupsWeekend package operationstourists from Manila Corporate groups, International: Non-Governmental also incentiveand Cebu organisations Groups and FITs students (Europe), discovery Public organisations from tours Negros Golfers (Phil., Japan, Korea) Governmental organisations Scientific institutes International: divers (Europe, National Taiwan, Korea) associations (national meetings) 7 6. Adventure Negros – Brand StrategyNITI has chosen „Adventure Negros“ as the umbrella brand for promoting the destination. This brand signifies a change of direction to brands previously used for marketing. ‘Adventure’ products such as trekking, mountain biking, diving and others are only partially operational yet. It should be avoided therefore to position Negros as a pure adventure destination at this point. Leisure, sightseeing and MICE remain still strong products and need to be covered by the umbrella brand as well. It is recommended to create several sub-brands underneath ‘Adventure Negros’ where each product can develop its profile. Adventure Negros could therefore become a promotional slogan.A principle objective is to focus destination promotion on a clear set of commercial and available products. The brand can use emotional images but needs to be in line with the product message. 8
    • 7. Destination Marketing Basic Promotion Material (Must Have) IPurpose: Material for hand-out,Tourist Information Office, Trade fairs, Promotion Events, Mediainformation, Target group campaigns1.General image brochure Features images of destination, creates desire and shows travel opportunities; it is recommended to present themes (instead of regions) i.e:beach and coast, underwater, mountains and nature, Bacolod, people and culture. Includes map. Excludes information that needs frequent updating. Format A4 or slightly smaller, landscape or portrait. 12 pages. Highest quality possible .2. Practical information kit/brochure Delivers all essential information for planning a trip to Negros:Travel modes and times, local transport, accom- modation incl. Tel., email, website, main visitor sites and opening hours, different types of restaurants, key tourism information offices. Additionally proposes selected itineries, also for active tourism with contacts, etc.Includes map (more detailed than above).Frequently used format:A5 flyer or other compatible to image brochure3. Meeting and event planning kit 3.1 Features Negros as a top place for meetings and confe- rences. Creates interest and desire.Outlines the advantages/3.1. Meeting/event promotion qualities of Negros. Accomm., Culinary features, postbrochure conference programmes Relates to Adventure Negros.3.2. Practical meeting planner Addresses HR managers and Board members.Format A4, 8 pages.3.3 Folder to hold brochures/flyers 3.2 Listing of venues with relevant details, appropriate catering(also to hold additional flyers from establ., excursion, sports, cultural events, transport, otherindividual hotels suppliers, tour agencies, tourism offices. 9 Preparation of Promotional Material Corporate Identity Ensuring that all promotional materials belong to the same family and express best the destination brand: Adventure Negros --------------------------------------------------------------------------------------------------- • Collect comparable material from several different destinations and identify concept and styles of Corporate Identity • Define own concept and prepare brief for designer specifying key elements of Corporate Identity such as logos, slogans, preferred colours and layout, format, etc. but allowing artist creativity • Present and discuss analysis and brief in Board Meeting • Request CI sketch proposals from 2-3 graphic designers at fixed price. Proposals shall include formats, layouts, letter fonts, coloring, papers,etc. for all basic print materials • Present and discuss proposals in Board or General Membership Meeting and choose preferred proposal • Contract designer for final design and tender print work 10
    • Destination Marketing Basic Promotion Material (Must Have) II Negros Adventure Website/Portal - ActionsReserve www. Adventurenegros.comWeb AddressDesign this first website as little complex as possible, without reservationfunctions, internal web, or sophisticated linksThree main content categories: Regions (I.e.Bacolod, Northern Coast, Southern Negros, Mountains) Main products Information (transport, accommodation, food, information, culture, etc)+ NITI contact and information on NITIWebsite is crucial and urgent 11 Destination Marketing Basic Promotion Material -Production • Basic promotional material is outsourced to graphic designers and printing houses. NITIs role is to draft specifications, to supervise and monitor work • NITI Board to discuss maquettes and draft design in view of optimising publication • Promotional material shall be produced in an order of priority 12
    • Destination Marketing Basic Promotionial Publications – cost estimateType Amount-cost per item Total cost (estimated)1.General image brochure(for consumer) P 100 x 10.000 P 1.000.0002.1Practical information folder (for consumer) P 50 x 10.000 P 500.0002.2 Tour Operator Manual documentation (in P 100 x 250 P 25.000holding folder), similar to 2.13.1 Meeting/event promo brochure (for P 70 x 3.000 P 210.000corporate/association clients)3.2.Meeting planner P 20 x 3.000 P 60.000(for Human Resource managers)3.3. Holding folder P 100 x 3.000 P 300.000Corporate Identity Design P 3 x 25.000 P 75.000Website design and initial operation P 500.000 13 Destination Marketing Other Promotion Material (Should Have) Theme promotional brochuresGolf vacation Should be produced only if several packages cn be offered. Needs a tour operator for packaging and ground handling. Brochure could be co-financed. High quality publication.Hiking and trekking guide (theme flyer) Conditional to availability of guides and trail networkNegros by bicycle Bicycle route map and planner Bicycle trail decription (individual sheets per trail)A divers paradise (theme flyer)Audio-visual documentation/promo ondiving and dive sitesAdventure Negros Resorts Promoting beach and inland resorts, featuring the various fun and sport activities. Creating interest and desire. Structured in North, Central and South Region. 14
    • 8. Marketing Actions - General Action CommentsDatabase of tour operators (from Philippines,Asian and European target markets) which areactive in Negros productsConduct of market research, surveys on active Aim is to obtain more detailed knowledge on specifictourism market segments traget groups and how to reach them. Surveys could be done by tourism students as their degree works or other university research work. NITI itself should not carry out such surveys.Build-up of a photo library of Negros and Aim is to have a growing collection of photo imagestourism-related images available for use in promo publications, PR articles, website, etc. Collect/copy available digital photos (high resolution only) and photo negatives from NITI partners Options: organize amateur photo competition or hire professional photographersStudy tour to international tourism trade fair in Comparison of products, analysis of competitors,SE Asia with suppliers quality assessment, networking with tour operatorsMedia fam trip for Philippine journalists and tvTravel package promotion on website and in In cooperation with tour operatorscooperation with sponsors (airline, shippingcompany, casino, etc) 15 Marketing Actions - Leisure Action CommentsOrganisation of a meeting with resorts on a sales Sensibilisation of resort owners forcampaign professional marketingSales training course for resort owners/managers Trainer: experienced hotel/resort sales manager and/or tour operator 4Q 2006Product presentation in Negros for Philippine inboundoperatorsBenchmark Study comparing Negros Occ. resortswith Bohol and Negros OrientalPublic Relation Campaign in Activity magazines Prepare standard PR articles, make(Philippines, USA, Europe, Southeast Asia) available high quality phote material 16
    • Marketing Actions – Meetings and Events Action CommentSet-up of a database of a) -a) MICE infrastructure, services, b) Information provided by hotels and business directories suppliers in Bacolod and Negrosb) Associations and corporations (potential clients) in the PhilipinesPreparation MICE promo brochure and Attention to high qualitymeeting plannerOrganisation of either fam trip or product One day event in Bacolod with presentations and visits topresentation to Manila and Cebu meeting facilities and hotelsProfessional Congress Organisors (in collaboration with Casino and airline)Mailing promo brochure and meeting plannerto multipliers: ministries, Governmental andNGO, embassies, chambers of commerceMailing promo brochure and meeting plannerto selected associations and HumanResource managers 17 Marketing Actions – Active Tourism Action CommentPress releases to biking magazines and Attractive and feasable products must be available.advertisements for biking packages Be done with inbound tour operator.Fam trips for active tourism TOs from In cooperation with major inbound operator in ManilaEurope and USParticipation in Dive Expo 2007 inBangkokNetworking with golf clubs andassociations in target markets 18
    • Marketing Actions – Other Action CommentMarket study on English language Desk survey, contacting universities and languageclasses and courses in Taiwan, China, schoolsThailnd, Japan Cooperation with Bacolod training institutesPreparation of information/promotion Cooperation with Bacolod training institutesfolder for language studiesAdvertisement and board notices inlanguage schools and universities intarget markets 19 Proposed Marketing Action Programme 2006 Main Actions Cost estimate in P Design and opening of destination website 500.000 Corporate Identity and Corpoprate Design 75.000 Production of general image brochure 1.000.000 Tour-operator and MICE database Photo library 20.000 Sales training for resort managers Resort product presentation 20
    • Proposed Marketing Action Programme 2007 Main Actions Cost estimate in PProduction practical information kit 500.000Meeting and event theme brochure and planning kit 270.000Tour Operator Manual and Holding Folder 25.000Product presentation in Negros for Philippineinbound operatorsMICE mailing campaign, multiplier lobbyingConsumer tourism fair Manila or special interesttrade fairMedia fam trip for Philippine pressLaunching of travel packages and promotion onwebsite and with sponsors 21
    • Annex 5 - NITI Certificate of Incorporation with the Securities ExchangeCommission Page 33 of 33
    • Contact InformationManila Office10/F German Development CenterPDCP Bank Centre BuildingV.A. Rufino cor. L.P. Leviste Streets,Salcedo Village, Makati CitySMEDSEP Program c/o GTZ OfficeManila, P.O. Box 2218 MCPOMakati City, PhilippinesTel. No.: +63 2 8123165 local 46E-mail: smedsep@mozcom.comWebsite: www.smedsep.phCebu Office38 Acacia Street, Lahug, Cebu City 6000Tel.: +63 32 4122256Telefax: +63 32 444494E-mail: masmedsep@globlelines.com.ph