Subsector Analysis of the Tourism Industry in Negros

Transcription

Project No. 01.2467.7-001.00
Small and Medium Enterprise Development for
Sustainable Employment Program
(SMEDSEP)
COOPERATION
Republic of the Philippines
Federal Republic
of
Germany
Subsector Analysis of the Tourism Industry
in Negros Occidental
February 2005
Prepared/Written by:
Marian Boquiren, Ivan Idrovo and Helen Valdez, SDCAsia, Inc.
Consultants
mb@sdcasia.ph | www.sdcasia.ph
Published by:
The Small and Medium Enterprise Development for
Sustainable Employment Program (SMEDSEP)
A DTI-TESDA-GTZ Program
10th Floor, German Development Center,
PDCP Bank Centre Building, V.A. Rufino cor. L.P. Leviste Streets,
Salcedo Village, Makati City
www.smedsep.ph | smedsep@mozcom.com
Ms. Martina Vahlhaus, Program Manager
Printed on:
March 2005 - Makati City, Philippines
Subsector Analysis of the Tourism Industry
in Negros Occidental
February 2005
Table of Contents
Acronyms
Executive Summary
Section 1: Introduction
Page
2
3
6
A. Objectives of the Study
B. Scope of Work
Section 2. Beginnings of the Focus on Tourism Development
Section 3. Industry Structure
A. Overview
6
6
8
10
10
B. Primary and Secondary Resource Bases
C. Tourism Services and Facilities
D. Enabling Support Environment: BDS/TVET
Section 4. Industry Performance
A. Tourist Arrivals
B. Tourism Receipts
13
17
20
21
21
22
C. Employment
Section 5. Proposed Fields of Change
A. Product and Infrastructure Development
B. Promotion and Market Development
C. Quality and Competitiveness Improvement
22
23
23
25
26
Section 6. Proposed Program Interventions
A. Institutional Development/Planning
B. Product and Infrastructure Development
C. Promotion and Market Development
D. Quality and Competitiveness Improvement
29
29
29
30
30
ANNEXES
A
Food Services
B
Travel and Tour Operators
C
Accommodation Services
D
Resorts
E
F
G
H
I
Transport Operators
Validation Workshop Summary Results
List of Key Informants
Accreditation
Classification and Standards: Hotels
BIBLIOGRAPHY
1
Acronyms
ANP
Association of Negros Producers
BDS
Business Development Services
CDs
Compact discs
COMELEC
Commission of Elections
CPQI
Continuous Productivity and Quality Improvement
CRS
Customer Reservation System
DA
Department of Agriculture
DDTVET
Demand driven Technical and Vocational Education and Training
DMO
Destination Marketing Organization
DOT
Department of Tourism
FGD
Focus group discussion
GDS
Global Distribution System
GMP
Good Manufacturing Practices
GTZ
Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) GmbH
HRANO
Hotel and Restaurant Association of Negros Occidental
HRM
Hotel and Restaurant Management
IATA
International Air Transport Association
ICT
Information and Communications Technology
ISO
International Organization for Standardization
IT
Information Technology
LGU
Local Government Unit
LTFRB
Land Transportation and Franchising Regulatory Board
MICE
Meetings, Incentives, Conferences, and Exhibition
NAIA
Ninoy Aquino International Airport
NAITAS
National Association of Independent Travel Agencies
NATTO
Negros Association of Travel & Tours Organization
PAGCOR
Philippine Amusement and Gaming Corporation
PAL
Philippine Airlines
PCCI
Philippine Chamber of Commerce and Industry
PCVC
Philippine Convention and Visitors Corporation
RANI
Resort Association of Negros Island
SA8000
Social Accountability 8000
SBS
Subsector Business Service
SDCAsia
Strategic Development Cooperation Asia
SME
Small and Medium Enterprises
TCDC
Tourism and Cultural Development Committee
TDC
Tourism Development Council
TESDA
Technical Education and Skills Development Authority
TVET
Technical & Vocational Education and Training
2
Executive Summary
•
The tourism development agenda of Negros Occidental had its roots during a period of socioeconomic crisis resulting from adverse conditions of the world sugar trade. Among the early
tourism related efforts and which has become an annual traditional event is the Masskara
Festival. This annual event is popular to local and foreign tourists and has helped place Bacolod,
the City of Smiles, in the tourism map.
•
Primary and secondary tourism resources of Negros Occidental consist of the following:
•
-
Marine-based resources: Negros Occidental has a long coastline and boast of several natural
attractions such as white sand beaches, diving sites, and marine sanctuaries.
-
Land-based resources including flora and fauna: The northern and western parts are largely
level plains and gently rolling slopes while the remaining portion is a land of sierras of varying
elevations.
-
Cultural-heritage resources: Rich culture and history of province are captured and preserved
in ancestral mansions, historical monuments, buildings and churches built during the Spanish
era.
-
Festivals/Events: Negros Occidental is said to have the most number of festivals in the
Philippines depicting certain cultures in each of its 19 towns and 13 cities.
-
Entertainment: There are a number of bars with live entertainment, video, karaoke, game
rooms and discos, with majority located in the Goldenfields Commercial Complex.
-
Sports: Bacolod, the province's capital city has three challenging and world class golf courses,
making it the golfing center in the Visayas.
-
Shopping: Negros Occidental is known for its innovative gifts and houseware and food
products.
Tourism services and facilities in Negros Occidental consist of the following:
Accommodation
86 establishments with 10 first class and standard hotels; 23% are DOT
accredited
Food Service
1,104 food establishments in the province as of June 2004, with
majority falling under the micro scale category. Only 5 establishments
are DOT accredited.
48 establishments with 3 accredited by DOT; 30+ tour guides
Travel and tour
operators
Resorts
Transport
•
65 resorts --- beach, mountain, agriculture, and inland
3 airlines and 4 inter-island shipping companies servicing Bacolod route;
inland transportation consisting of buses, jeepneys, taxis, and car
rentals
Main issues and challenges facing the industry are the following:
-
Current downward trend in average expenditure per visitor
-
The need for more effective and cohesive image, market positioning, and promotion
-
The need to expand tourist season and reduce seasonality
3
-
•
Wide variances in quality of products and services as well as the need to align these to
market requirements and standards
Weak demand and supply of support services and technical and vocational training needed to
improve performance of tourism enterprises and their workforce
-
The need to create industry synergy and higher level of cooperation between and among
public and private stakeholders within and outside the province (especially with neighboring
tourism destinations).
-
The need to strengthen environmental management to conserve and enhance the vital
natural and heritage of the province, and that sustainable tourism development practices are
observed.
Building on current public and private sector tourism development initiatives, the following are
the proposed fields of change and strategies to address the above challenges:
Product and Infrastructure Development
Development of a compelling brand and product portfolio, which meet the desire for a
distinctive, authentic and uniquely Negros Occidental experience
Development of cultural, sporting, and social events that would contribute to the extension of
the tourist season and the achievement of higher yields, improved profitability, and increased
employment in the industry.
Improvement of tourism related infrastructure
Improvement of waste management
Promotion and Market Development
Improvement of destination marketing of Negros Occidental
Availability of tourism information at major gateway points (e.g., airports in key cities in the
Philippines, international airports in other countries) and in strategic locations within Negros
Occidental.
Development of tourism internet portal for Negros Occidental --- a well-designed full concept
one-stop tourism virtual mall that provides visitors access to information and reservation as well
as links to various tourism intermediaries.
Better use of travel agencies, tour operators, and other local/regional/international tourism
intermediaries to promote and distribute Negros Occidental tourism products complemented by
publicity in appropriate media to create awareness and establish credibility within the
segments.
Quality and Competitiveness Improvement
Upgrading of existing management, marketing, and general administration courses to
international standards and re-alignment of requirements of the everyday operations of the
tourism trade.
Development and/or strengthening of local capability to deliver dualized training programs of
international standards and with balanced emphasis on operational and people skills for various
competencies required in the hospitality, travel, tour, and transport segments.
Promotion among enterprises of the implementation of a Continuous Productivity and Quality
Improvement (CPQI) Program
Promotion of the effective use of information technology in improving business operations and
marketing
Promotion and development of a tourism-friendly culture across all sectors of the community
through public awareness and education programs
Establishment of a province-wide industry led quality seal program
•
It is proposed that program interventions be directed towards the following:
4
Institutional Development/Planning
Initiate the re-organization of the Tourism and Cultural Development Committee (TCDC) or a
similar body composed of representatives of key players in the tourism sector such as ATANO
and provide organizational development assistance.
Technical assistance to TCDC or similar structure in the review and updating of the Tourism
Master Development Plan including mentoring services during the first year of implementation
Assist the TCDC in dissemination of salient points of the development plan to all stakeholders.
This may be done through forums, workshops, and media publicity.
Organizational development assistance to selected tourism industry associations.
Support the establishment of a self-sustaining tourism market intelligence system.
Technical assistance to the TCDC or similar structure in the further definition of Negros
Occidental brand and positioning including its consequent adoption by the various stakeholders.
Develop local providers of product development services.
Stimulate demand for product development services and development of various schemes to
motivate tourism businesses to invest in product development
Assist in the development of advocacy campaigns for increased allocation and/or prioritization
of public infrastructure improvements (e.g., airports, roads, etc.).
Technical assistance in the development of waste management system and establishment of
pool of local experts that can assist enterprises in the set-up of their own systems.
Support the development of tourism internet portal for Negros Occidental.
Improve capability of existing journalists, advertising companies, web designers, multimedia
designers, graphics company, souvenir manufacturers, marketing and promotion companies, and
the like to address promotion and marketing needs of the tourism industry.
Technical assistance to the industry via the Tourism Council in the development of a marketing
and communications plan.
Broker marketing agreements between tourism service establishments and travel and tour
operators. Parallel to this, assist Negros-based travel and tour agencies in forging partnerships
with national and international travel intermediaries including Philippine embassies and trade
attaches.
Facilitation of linkages between industry, local providers and establishments offering
internationally recognized courses
Assistance in the development and/or customization of curricula as well as capability build-up
of local training providers
Assistance to training providers in the development of various delivery and payment modalities
to address affordability and accessibility issues
Development of local capability to deliver Continuous Productivity and Quality Improvement
Program to enterprises. Parallel to this, stimulation of demand for program through
demonstration of benefits and impact via pilots
Assistance to IT training institutes in the development of customized training program for
tourism businesses. Demonstrate benefits of use of IT to enterprises through pilots
Marketing assistance to providers with new and/or high quality product offers
Technical assistance in the development of public awareness program designed to promote
province wide tourism friendly culture
Technical assistance in the development and implementation of Quality Seal program
5
Section 1
INTRODUCTION
A. OBJECTIVES OF THE STUDY
The SMEDSEP Program is an integrated approach for the development of the private sector in the
Philippines with a regional focus on the Visayas. The program comprises of four components namely:
1.
2.
3.
4.
SME Policy/Enabling Environment for SMEs
Business Development Services (BDS) for SMEs
Access to Financial Services for SMEs
Demand-driven training programs for the workforce
Using the Subsector Business Service (SBS) approach to enterprise development, SME stakeholders
of Negros Occidental identified Tourism as the pilot subsector for components 2 and 4 based on the
assessment that it has the highest potentials for income and employment generation. The next step
is the subsector analysis in order to gain a greater understanding of the market players, their roles,
and interrelationships in the tourism sector.
The objectives of the subsector analysis are to:
•
•
•
•
•
•
Identify final sales markets and market segments
Identify market channels and trends within the tourism subsector
Identify the primary players of the tourism subsector, their roles, and interrelationships
Create the tourism subsector maps/value chain that describes the above
Identify constraints of the subsector and opportunities for growth of the sector
Identify BDS and Technical and Vocational Education and Training (TVET) interventions that can
address the tourism sector constraints
B. SCOPE OF WORK
The report has been prepared in close consultation with key players in the public and private
sectors involve in the Tourism sector in Negros Occidental. The research is qualitative rather than
quantitative.
A mission was conducted by Katja Legien sometime in May 2004 during which parameters of the
subsector study were defined. Likewise, a preliminary tourism subsector mapping was conducted by
the SMEDSEP and DDTVET component teams to identify industry groups that would be included in
the study and potential key informants. The scope of work of this study includes:
1.
A profile of the tourism sector in Negros Occidental
2.
A snapshot profile of the following 5 subsectors presented in the annexes in terms of: a)
industry structure; b) value chain; c) human resources
•
•
•
•
•
3.
Food service
Travel agencies and tour operators
Accommodation
Resorts
Transport operators
Identification per subsector of the following:
•
Constraints
6
•
•
Current initiatives to address constraints
Potential solutions
4. Recommendations on fields of change and BDS/DDTVET interventions
Beyond the scope of SDCAsia’s assignment is an analysis of the sector vis-à-vis supply of BDS and
TVET in the market. Likewise, the report does not cover quantitative analysis of demand as well as
identification of specific features and contents of recommended BDS and TVET products. Also,
given the small sample size as identified and determined by the SMEDSEP program, the report
makes no claims of statistical relevance and relied mainly on available secondary data, which is
hazy at the moment given the infant status of the sector.
7
Section 2
BEGINNINGS OF THE FOCUS ON TOURISM DEVELOPMENT
From the 1950s to the 80s, Negros Occidental's economy was anchored around one commodity,
"sugar", which made it the country's premier sugar producer. However, when the world sugar prices
plummeted to rock bottom sometime in 1983, the economy of Negros Occidental was devastated.
From that experience, Negrenses learned to diversify their economy. Although sugar still remains as
the main agricultural produce of the province with about 56% of its land area planted to sugar cane
(contributing 60% of the country’s total sugar production), other profitable ventures sprouted such
as prawn and fish ponds, farms nurturing high value crops and floral species, as well as handicraft
businesses. The province wide focus on the development of the tourism industry also started during
this period of socio-economic crisis.
The tourism industry development agenda was received enthusiastically by both the public and
private sectors as a positive way forward. The following initiatives from the government set in
motion the development of the tourism industry:
1. Creation of the Bacolod City Tourism Office by virtue of City Ordinance No. 158 on February 7,
1996. Operations started on March 14, 1997 with the appointment of a Chief Tourism
Operations Officer and the eventual filling up of other positions. This office attends to the
different tourism activities of the City.
2. Set-up of the Tourism and Cultural Development Committee (TCDC), a policy making body
composed of 8 government agencies and 7 private sector representatives. Under the TCDC, a
tourist reception desk manned by a TCDC employee has been put up at the arrival area of
Philippine Airlines in the Bacolod Airport. This reception desk provides brochures, and other
tourism related information for the tourists. Likewise, several tourism activities have been
pushed or were supported by the city government through the initiatives of the TCDC.
8
3. Devolvement of the functions of the Department of Tourism (DOT) to the local government unit
in accordance with the implementation of the Local Government Code in 1992. Tourism is
currently being handled by the Economic Enterprise Development Department of the city
government. The Provincial Tourism and Promotion Office was created under the Office of the
Governor in 1994 followed by the city and municipal offices. In 2004, the Negros Occidental
Tourism Center was established.
4. Inclusion of the promotion of Negros Occidental as a tourist destination in the 7-point agenda of
the incumbent provincial governor.
5. Active promotion of Bacolod as a convention center outside of Metro Manila by the city and
provincial governments of Bacolod and Negros Occidental respectively. The mayor and other
government officials held a series of meetings with various organizations to convince them to
hold their conventions in Bacolod City. Until to this date, the government provides full support
to all the big conventions held in the city.
6. Development, management, and operations of the Mambukal Mountain Resort and the Panaad
Theme Park by the provincial government with support from the city government.
7. Development of the Regional Tourism Master Development Plan in 2000 with DOT Region 6 as
the lead agency.
Private sector early responses to the call for diversification to tourism consisted of the following:
1. Construction and/or renovation of hotels to improve capacity to host conferences, seminars,
and related events and in anticipation of growing number of inbound tourists.
2. Opening up of historical sites and development of both natural and man-made attractions.
3. Establishment of resorts, restaurants, and other tourism related services.
4. Strengthening and promotion of cultural festivals with Masskara Festival as the most popular,
biggest, and most established annual event. The Masskara Festival is a Mardi Gras-like
celebration that features masked and costumed street dancers, with fairs and carnivals. This is
held on the third week of October, and coincides with the city's Charter Day celebration.
The Masskara festival was conceived to bring back the resilient spirit of the Negrense during the
sugar crisis and the aftermath of the sinking of the Don Juan ferry, a vessel carrying many of
Bacolod’s prominent families. To ease their pain, local artists, civic groups and the government
organized a festival of smiles. Coined from the words “mass,” meaning a multitude of people,
and the Spanish word “Kara,” meaning “face,” the Masskara Festival became a yearly showcase
of the city’s talents and creativity and a celebration of their enduring spirit.
The highlight of the festival is the Masskara Street Dance competition where people wearing
elaborate masks and garbed in colorful costumes move to the rhythm of Latin music along the
streets. This display of joviality, coordination and stamina has become popular to local and
foreign tourists and has helped place Bacolod, the City of Smiles, in the tourism map.
5. Promotion of Negros Occidental through individual website initiatives, participation in national
and international Travel Mart, and other similar activities. One annual event that has helped
put Negros in the consciousness of many of the Metro Manila residents is the annual bazaar and
trade fair organized by the Association of Negros Producers.
9
Section 3
INDUSTRY STRUCTURE
A. OVERVIEW
Tourism is the term given to the activity that occurs when tourists travel. This encompasses
everything from the planning of the trip, the travel to the place, the stay itself, the return, and the
reminiscences about it afterwards. It includes the activities the traveler undertakes as part of the
trip, the purchases made and the interactions that occur between host and guest. In sum, it is all
the activities and impact that occur when a visitor travels. 1 Tourism, therefore, involves four
overlapping phases of consumer activity:
-
Pre-travel activity: finding information, preparation of itinerary, booking the holiday or
travel arrangement, and preparation before travel
-
Travel: trip to and from the destination including stops en route
-
Activities at destination: may be uniform in nature or characterized by a wide range of
activities
-
Post-consumptive behaviour: processing of photographs, handing out of souvenirs, talking
about experiences, etc.
Based on the above, it can be seen that the development of an attractive tourism product package
involves a diverse range of participants. Product creation in the tourism industry can be illustrated
as follows:
Accommodation/
Food
Transportation
Service/
Distribution
Tourism
Product
(Tour Operators/
Travel Agencies)
(Combination
of Material
Product and
Service)
Attractions
A tourism product involves a combination of services which deliver primarily intangible, sensual,
and psychological benefits as well as some tangible benefits. As such, tourism promotion,
development and growth entail province and industry wide collaboration and cooperation. In many
of the manufactured goods markets, consumers are fixed and products are mobile. In travel and
tourism markets, consumers are mobile and the products are fixed. Revenues are captured when
travelers arrive at the destination. Marketing and delivery of a tourism product involve synergistic
interaction of the following six elements:2
1
2
Mill and Morrison, 1992
Les Lumsdom, Tourism Marketing
10
1.
The physical plant, such as site or natural resource, weather and infrastructure, and the
design standards applied to the built environment.
2.
Service, which refers to the tasks required to meet the needs of the tourists such as in a
hotel or airline facility. It is the technical element of a service provision.
3.
Hospitality refers to the way in which service is provided, i.e. the something extra that
makes a visitor feel good. It is distinct from the technical competence of service provision.
4.
Freedom of choice refers to the notion that the visitor has some degree of choice in order
for the experience to be satisfactory. It is the trigger to relaxation and allows some degree
of spontaneity.
5.
Involvement refers to the underlying services marketing principle of simultaneous
performance or consumption. It involves participation and some degree of engagement.
6.
The sixth dimension is the tourism product process. Resources are used to create tourism
infrastructure and intermediate processed inputs, known as tourism facilities, but this is
still a commodity. The final refinement is provided by the customer; the outcome is the
‘personal experiences’ which is intangible but highly valued experiences such as recreation,
business, and social contacts.
The tourism sector in Negros Occidental, as elsewhere, comprises a network of interacting
components, as illustrated in Figure 1. The components of the sector may be grouped as follows:
Component
Primary resource base
Secondary resource base
Tourism facilities and services
Infrastructure
Training and business support
services
Policy/enabling environment/
governance
Description
Natural environment, heritage, culture, towns and villages,
outdoor activity
Entertainment, shopping, festivals, events, and other built
attractions
Services and facilities necessary to enable tourists to access
and enjoy the resources and products available
Roads, communication facilities, power and water facilities
Business development services (BDS) and technical and vocational
education (TVET) for workers/employees and owners of tourism
based enterprises
Institutional arrangements/structures, sectoral policies,
community involvement and environmental management
11
Figure 1. NEGROS OCC. TOURISM INDUSTRY PLAYERS
CONSUMERS
Business Travellers
Leisure Travellers
Mix of business and leisure
TRANSPORT
SERVICES
(NATIONAL/
INTERNATIONAL
LEGEND:
Dotted lines
indicate weak
linkages
EVENTS, TRAVEL
AND TOUR
OPERATORS
ELSEWHERE
TOURISM
MEDIA
LOCAL TRAVEL
AGENTS
LOCAL TOUR
OPERATORS
HOSPITALITY:
ACCOMMODATION
TRANSPORT AS
TOURISM
NEGROS OCCIDENTAL
HOSPITALITY:
FOOD/BEVERAGE
NATURAL
ATTRACTIONS
MANMADE
ATTRACTIONS/EVENTS
SUPPLIERS
INFRASTRUCTURE
BDS/TVET PROVIDERS
REGULATORY AGENCIES (ACCREDITATION, SANITATION, PERMITS, ETC.)
LOCAL GOVERNMENT/TOURISM AGENCIES/TCDC
12
B. PRIMARY AND SECONDARY RESOURCE BASES
The strength of the appeal of a destination to tourists is, more than any other factor, linked to the
quality of its primary and secondary resource bases. These resources stimulate the interest to visit
a destination area as well as define its image. Natural, man-made and cultural attractions provide
the visitor with the essential incentive to choose a destination and are also the primary measures in
assessing the satisfaction of having visited a destination. In general, the demand for the other
components of tourism derives from the original stimulus that comes from the interest in
experiencing the different attractions.
The vast array of natural, secondary, and cultural resource bases of Negros Occidental provides
viable tourism assets that can potentially attract a diverse range of tourists if properly promoted
and packaged together with quality tourism services and facilities. These tourism assets include the
following:
1. Marine-based resources: Negros Occidental has a long coastline and boast of several natural
attractions such as white sand beaches, diving sites, and marine sanctuaries. Examples of areas
that can be promoted as Diver’s Paradise are:
-
The deep blue waters of China Seas in Southern Negros, particularly in the area of Danjugan
Island in Bulata, Cauayan
13
-
Sipalay Island, which has potential for
development based around water
recreation,
including
underwater
activities and surface recreation.
Although sustainability needs to be
assured by low-key development,
consideration should be given to a small
beach hotel and associated beach
upgrading.
A coastal resource management project,
which in the long term seeks restoration
of damaged reef areas, is being
implemented in Sipalay and Danjugan
Islands under the umbrella of a
provincial environment program called
the
Southern
Negros
Coastal
Development Program. The Philippine
Reef and Rainforest Conservation
Foundation, Inc. in partnership with
Coral Cay Conservation started in 2000
the conduct of training on marine
resource management to communities,
fisherfolks, and government personnel.
-
Other places such as the Isla Puti, Sagay
Marine, Lakawon Island or Inampulugan
Island, etc.
2. Land-based resources including flora and
fauna: The northern and western parts are
largely level plains and gently rolling slopes
while the remaining portion is a land of
sierras of varying elevations. Tourism assets
include the following:
-
Mt. Kanlaon, which rises to an
elevation of about 8,100 feet, is the
highest peak in the province, and is
considered also be the highest in
central Philippines. Other mountains
are Mt. Mandalagan and Mt. Silay. Aside
from beautiful sceneries, these areas
boast of therapeutic hot springs,
rejuvenating mountain streams, and
several mountain climbing, hiking, and
trekking trails.
-
Rural uplands, where there is potential
to capitalize on the scenic beauty of
the Balabag highlands and the
surrounding areas. The peaks in the area have exceptional viewscapes (including views of
San Carlos, Mount Kanlaon, Cebu and Bacolod) and good access is available from the TransLink Highway. As per the San Carlos City development plan, it is envisaged that
development would initially be built around the provision of countryside recreation,
including viewpoints, walking trail and rest area provision, together with a core visitor
center.
14
-
Other areas are: Mambukal Mountain Resort, Patag Valley, Guintubdan, Codcod Rice
Terraces, Ubong, Hagdanan, Pating Caves, etc.
3.
Cultural-heritage resources: Rich culture and history of province are captured and preserved in
ancestral mansions, historical monuments, buildings and churches built during the Spanish era.
The ancestral houses, in particular, reflect the grandiose and lavish lifestyle of the Negrense
elite during the turn of the century. Other attractions with rich cultural and industrial
significance are the sugar mills, vintage steam locomotives, and the Sugar Museum.
4.
Festivals/Events: Negros Occidental is said to have the most number of festivals depicting
certain cultures in each of its 19 towns and 13 cities, with Panaad in Negros as the Festival of
all Festivals. To date, the most popular and which has gained national prominence is the
Masskara Festival. The other festivals are, more or less, popular only within the province
and/or region.
With millions of cockfighting afficianados in the Philippines, domestic tourism may also
capitalize on the popularity of Negros Occidental as the “Home of the Champions”. To date, it
is known as the breeding ground of ‘champion’ fighting cocks but it may also be possible to
build a tourism marketing storyline along this favorite pastime of many Filipinos.
15
5.
Entertainment: There are a number of bars with live entertainment, video, karaoke, game
rooms and discos, with majority located in the Goldenfields Commercial Complex. Casino
Filipino is also located within the same complex.
Negros Occidental is also famous for its Kabataang Silay Performing Arts and Rondalla Ensemble.
These Young Cultural Ambassadors of Silay bring out the best of Philippine Visayan and rural
folk dances and music. The Teatro Amorseco has been voted twice as the Best in Cultural
Presentation in the Philippine Travel Mart.
6.
Sports: Bacolod, the province's capital city has three challenging and world class golf courses,
making it the golfing center in the Visayas. It also has various sports and fitness facilities within
the metropolis. It also has the biggest bowling lane in Visayas.
The province was the host of the Centennial Palaro in April 1998 which paved for the
construction of the Panaad Park and Stadium (Negros Occidental Sports and Recreational Park)
in a 20-hectare land surrounded with fully grown eucalyptus trees. Its main stadium and open
bleachers could seat 15,000 spectators. The entrance to the stadium serves as the stage for
Panaad activities. It has a rubberized "Regupol" track oval. Across the stadium are tennis courts
and an olympic-sized swimming pool featuring a touch pad, electronic timer and camera track.
7. Shopping: Negros Occidental is known for its innovative gifts and houseware and food products.
The most popular landmark of Bacolod City is the Association of Negros Producers (ANP)
Showroom, a one-stop showcase of handicrafts and food products. The Showroom has been
declared by the Bureau of Domestic Trade Promotions (an agency under the Department of
Trade and Industry) as the top trade house in the country.
16
C. TOURISM SERVICES AND FACILITIES
1. Accommodation
Category
De Luxe Hotel
First Class Hotel
Standard Class Hotel
Economy Hotels
Tourist Inns
Pension Houses
Apartels
TOTAL
No. of Establishments
0
3
7
76
No. of DOT Accredited Establishments
0
2
5
5
3
5
86
20
The accommodation establishments in Negros Occidental can be characterized as follows:
•
Establishments operate as independents (i.e., not part of a nationwide or international chain of
hotels/lodging facilities).
The bigger hotels are owned by corporations while smaller
establishments are generally single proprietorship or family owned and usually managed and
operated by the owners and immediate family. There is one government-owned hotel, the
Casino Filipino Hotel, which is operated by PAGCOR and also houses the casino facilities.
•
48% are located in Bacolod and the rest are scattered in other cities and in major destination
areas.
•
Only the first class and standard class hotels have the capabilities to host conventions and
meetings. Services of the smaller establishments are limited to the basic room and bath. Except
for the apartels, all of the establishments offer serviced type of accommodation services.
•
First class and standard class hotels generally have more than 50 rooms. For the rest of the 76
establishments, the average number of rooms is 10 with majority non-airconditioned.
•
Only 23% of the establishments are accredited by the Department of Tourism (DOT). Many of
the accommodation establishments do not see the need for accreditation while others are wary
of investment costs to implement the necessary changes to meet requirements/standards vis-àvis non-fiscal incentives offered by DOT to accredited establishments. This may be an indication
that majority of the establishments are not confident that they have met and complied with
the minimum standards set by DOT.
Non-fiscal incentives to accredited establishments consist of: a) membership to Philippine
Convention and Visitors Corporation (PCVC) and inclusion in its marketing and promotional
programs; issuance of DOT identification cards to bonafide employees; b) technical/security/
facilitation support or assistance; and, c) endorsement to embassies and travel trade
associations for utilization of establishment's facilities and services. Additional incentives to
accommodation establishments are: a) endorsement to the Ninoy Aquino International Airport
(NAIA) and other international airport for issuance of access passes to qualified personnel; b)
endorsement to the Commission on Elections (COMELEC) for exemption from liquor ban during
election related events; and c) endorsement to the Department of Agriculture (DA) for
importation of meat and meat products.
•
Reservation and booking of rooms in first class and with some standard hotels may be made via:
a) travel and tour operators – either from website or face-to-face; b) direct booking to the
hotel – either phone, in-person, and fax. For individual travelers, rates are generally lower
when made via the internet and travel agencies rather than through direct booking with the
hotel. None of the hotels have websites capable of accepting reservations.
•
Business travels and conventions represent majority of the total revenue mix.
17
2. Restaurants/Food Service Establishments
Negros Occidental is one of the provinces in the Philippines known for its great local cuisine. It is
particularly popular for sugar-based food items, delicacies, the chicken “inasal” (roasted chicken),
and grilled seafood such as the tiger prawns. Special attractions include the following: a) the Palapala market and similar establishments where customers can buy fresh produces and seafood and
ask the establishments to cook these: b) establishments where customers can catch their own fish --‘cook and eat what you catch’; c) grilled food and native ambiance; and d) “eat all you can”
establishments.
Negros Occidental abounds with restaurants of various types. Upscale specialty restaurants as well
as modest alfresco set-ups serve Negrense, Filipino, continental, and oriental cuisines. Popular
burger, pizza, and other fastfood outlets are also found in Negros Occidental. Based on DTI
registration database, there are 1,104 food establishments in the province as of June 2004, with
majority falling under the micro scale category. Only 5 establishments are DOT accredited.
3. Travel Agencies and Tour Operators
Travel Service
Establishments
Travel agencies
Tour operators
Travel and tour agencies
Tour guides
No. of Establishments
38
5
5
30+
No. of DOT-Accredited
3
1
Travel agencies and tour operators in Negros Occidental are generally micro scale enterprises. A
bigger percentage of the clients of travel agencies are the outbound travelers. Tour operators, on
the other hand, cater mainly to inbound tourists.
Interviews seem to indicate that tour operators have stronger linkages with the local tourism
industry than the travel agencies. To date, there are six tour packages being offered, namely:
Bacolod City Tour, Negros Sugar Tour, War Memorial Tour, Victoria Milling Company Tour, Steam
Engine Tour, Transportation Tour, Golf Tour, and the Annual Negros Cultural Tour (the longest
running cultural tour in the country). Popular stop-overs include the ANP showroom and
restaurants where almost always tour operators earn some commissions. Pick-up points are usually
the bigger hotels (first class and standard hotels).
It is more likely for travel agencies to have some relationships with the bigger hotel establishments
rather than with the pension houses, tourist inns, and economy hotels. It is, however, claimed that
commissions given by Negros-based hotels are lower compared to same establishments elsewhere.
Hotels, on the other hand, refer their clients needing ticketing services to the travel agencies that
they have some informal working relationships. First class and standard hotels also have business
arrangements with Metro Manila based travel and tour operators.
4. Resorts
According to key informants, there are 65 resorts 3 of various categories based on location --mountain, beach, inland/agricultural. Majority of the establishments though are beach resorts.
Resorts range from low to high end.
5 of the resorts are government-owned. One resort is said to have been accredited as a convention
facility. Some of the resorts have combined lodging, meeting facilities, souvenir shops and an array
of amenities and activities as a means of expanding clientele. The bigger resorts also offer off-site
excursions for guests.
3
No directory of resorts
18
5. Transport Services
Bacolod City is the gateway to Negros Occidental. It is 50 minutes from Manila and 30 minutes from
Cebu by plane. There are three airlines servicing the Bacolod route, namely: Cebu Pacific,
Philippine Airlines, and Air Philippines. These airlines have tie-ups with selected hotels (first class
to standard hotels) in the form of discounts, earned mileages, package rates, etc.
Airline
Hotels with Tie-ups
Cebu Pacific
Sugarland Hotel
Philippine Airlines
L’Fisher Hotel, Bacolod Convention
Plaza, Natures Village Resort
Casino Filipino Hotel, Royal Am Rei
Hotel
Air Philippines
Offer
Discounted Rates
Mileage
Bacolod City is also accessible by boat through the following routes: a) from Manila – 20 hours; b)
from Iloilo – 1 hour by fast boats and 2 hours by bigger boats; and c) from Cebu. The province has
six seaports dominated by 4 inter-island shipping lines namely: Negros Navigation and William,
Gothong & Aboitiz; and Sulpicio Lines, Inc. and West Visayan Shipping Company. The first two
provide cargo & passenger services while the latter two provide cargo service only. By land from
Cebu, Bacolod City is approximately 7 hours.
Transportation within the province is mainly by land through its road networks connecting its 19
municipalities and 13 cities. Airconditioned and metered taxis are numerous within the city. Public
utility jeepneys are the common mode of transportation. For long distance and inter-town
travel, air conditioned and ordinary buses are among the options. Car rental services are also
available with rates depending on the type of vehicle and distance traveled. Information for car
rental services is available at majority of the first class and standard hotels or via tour operators.
19
D. ENABLING SUPPORT ENVIRONMENT: BDS/TVET
Tourism is a ‘people industry.’ Development of the skills base of the province and further
cultivation of the inherent hospitable nature of the people to match changing and complex
requirements of tourists would be critical to accelerating the growth of the tourism industry and to
providing good employment prospects for Negros Occidental residents. As a service industry, the
quality of the tourism experience is largely dependent on the inputs of wide range of people who
interface with the visitor. The challenge facing many of the tourism businesses is to ensure that
procedures and delivery mechanisms are in place to ensure a consistency in the standard of service
which the customer receives.
More work is still needed though to convince establishments of the importance of investing in skills
for improved profitability and success. Only a few of the companies have a structured training plan
and human resource development budget. Barriers to pursuit of skills and knowledge upgrading
tend to be cost-related, the lack of local supply of relevant support services, and, for smaller
companies, ‘time out of the business’ is an issue. Likewise, the high proportion of part-time and
seasonal workers requires cost and time to hire, retrain and re- orient new staff on-the-job while
attempting to maintain "seamless" customer service. Although some initiatives have been initiated
by the chamber and associations in bringing in training services closer to the industry, on-the-job
training will likely remain a leading training delivery method in the tourism sector. It is perceived
as being less expensive, easier to control, more flexible and permits the implementation of
customized in-house programs.
To date, the tourism sector is already experiencing problems in the recruitment and retention of
suitably skilled managers and middle management staff. Bigger companies hire managers from
outside of the province. This, in one way or another, suggest the need to look into match of
training and education services available in the province vis-à-vis the demands of the industry in
relation to market requirements.
Other internal factors that would impact tourism development in the area would include:
•
The degree to which the Negros tourism businesses would be able to improve its ability and
capability to develop world class tourism products with a specific local identity that would
appeal to various market segments and be competitive with other destinations
•
Success in inculcating throughout the industry a culture of quality and improved productivity
•
Improving the capability of industry to undertake regular market research and access market
information
•
Marketing cohesiveness and effectiveness in attracting visitors to the province
•
Improvement of environmental protection and compliance to ensure sustainable tourism
20
Section 4
INDUSTRY PERFORMANCE
A. TOURIST ARRIVALS
•
Based on the 2002 tourism data from the National Statistics Coordination Board (NSCB), Negros
Occidental ranked 14th among all provinces in the Philippines in terms of number of inbound
tourists with a market share of 1.57%.
Top 15 Province/City: Inbound Tourists, 2002 (excluding Metro Manila)
Province/
City
(Destination)
Cavite
Laguna
Baguio City
Cebu City
Davao City
Quezon
Foreign
Travelers
97,897
No. of Inbound Tourists
Overseas
Domestic
Filipinos
Travelers
0
1,924,168
% to
Phil.
Total
Ranking
2,022,065
18.77%
1
Area Total
1,157,857
36,760
285,820
49,341
1,616
6,695
5,337
963
7,450
570
43,455
1,140,593
549,588
374,563
324,729
1,208,007
1,182,690
836,371
431,354
326,915
11.21%
10.98%
7.76%
4.00%
3.03%
2
3
4
5
6
78,877
13,008
8,218
5,066
10,646
2,410
0
637
425
6,212
235,005
289,855
262,156
204,283
190,922
316,292
302,863
271,011
209,774
207,780
2.94%
2.81%
2.52%
1.95%
1.93%
7
8
9
10
11
Zambales
Ilocos Norte
Negros Occidental4
Batangas
65,828
44,910
14,244
9,209
4,432
38
2,385
4,154
136,391
134,362
152,736
155,877
206,651
179,310
169,365
169,240
1.92%
1.66%
1.57%
1.57%
12
13
14
15
NATIONWIDE TOTAL
2,144,536
66,265
8,562,147
10,772,948
19.91%
0.62%
79.48%
Aklan
Cagayan
Cagayan de Oro
Camiguin
Iloilo Province
% TO NATIONWIDE
Source: National Statistics Coordination Board
•
Of the 169,365 inbound tourists in 2002, 8.41% were foreigners and the rest were Filipino
travelers. In the nationwide totals, foreign travelers comprised 19.91% of the total number of
inbound tourists. Negros Occidental ranked 13th in terms of number of foreign travelers, with a
0.66% market share.
•
In terms of Filipino inbound tourists in 2002, Negros Occidental ranked thirteenth among all
provinces, with a 1.80% market share. Among Western Visayas provinces, Negros Occidental
ranked third with Aklan and Iloilo in the first and second ranking respectively.
•
In 2003, number of tourist arrivals in Negros Occidental increased by 40%. According to the
Negros Occidental Tourism Promotion and Development Division, over 112,000 local and foreign
tourists visited the province in the first four months of 2004, which is more than last year’s
arrivals of the same period.
•
Peak months are from January to June and September to November. Average hotel occupancy
rate is from 40% to 50% which is lower than Metro Manila (average occupancy rate – 68%).
4
Data from the Negros Occidental Tourism Center indicated a total of 183,088 tourist arrival for 2002
21
Meetings, Incentives, Conferences, and Exhibition (MICE) market has significantly improved
occupancy rate and the overall tourism arrivals in the province.
B. TOURISM RECEIPTS
•
Aggregate tourist receipts in 2003 increased by 26.31% over 2002 figures. However, average
expenditure per tourist decreased from PhP 14,936 in 2002 to PhP 13,474 in 2003.
Distribution of Western Visayas Tourist Receipts by Province, 2002-2003
Province
Amount (in PhP thousand)
2002
2003
% Growth Change
Aklan
Antique
Capiz
Guimaras
Iloilo
5,814,522.35
131,717.08
484,641.57
2,011,695.46
3,819,702.85
6,602,637.09
247,183.20
488,777.84
2,148,651.79
3,946,732.15
13.55
87.66
0.85
6.81
3.33
Negros Occidental5
2,529,574.22
3,195,016.54
26.31
Western Visayas
14,791,853.53
16,628,998.61
11.12
Source: Department of Tourism – Region 6
C. EMPLOYMENT
•
Among the different subsectors in the tourism industry, the hotels generate the highest number
of employment.
Type of Establishment
Accommodation, 50 rooms and above
Accommodation, less than 50
Tour operators/Travel agencies
Resorts
Est. No. of Establishments
10
76
48
65
Ave. No. of Employees
30 – lean ; 112 - peak
10 – lean; 23 - peak
2 to 3
5 to 20
5
Data from Negros Occidental Tourism Center indicated total tourist receipts of PhP 534,250,764 for 2002 and
PhP 833,033,558 for 2003 based on PhP 2,918/person average daily expense.
22
Section 5
PROPOSED FIELDS OF CHANGE
Main issues and challenges facing the industry are the following:
1.
Current downward trend in average expenditure per visitor
2.
The need for more effective and cohesive image, market positioning, and promotion
3.
The need to expand tourist season and reduce seasonality
4.
Wide variances in quality of products and services as well as the need to align these to market
requirements and standards
5.
Weak demand and supply of support services and technical and vocational training needed to
improve performance of tourism enterprises and their workforce
6.
The need to create industry synergy and higher level of cooperation between and among public
and private stakeholders within and outside the province (especially with neighboring tourism
destinations).
7.
The need to strengthen environmental management to conserve and enhance the vital natural
and heritage of the province, and that sustainable tourism development practices are observed.
Building on current public and private sector tourism development initiatives, the following
strategies are proposed to address the above challenges:
A. Product and Infrastructure Development
Negros Occidental has the tourism assets to potentially attract increasing numbers of visitors in the
following tourism circuits: a) ecotourism; b) sand, sea, and resorts: c) cultural tourism; and d) MICE
market. The challenge for the industry is to package these assets in a way that makes Negros
Occidental a desirable, affordable, and year-round ‘must-visit’ destination.
Recommended Fields of Change and Improvement
1. Development of a compelling brand and product portfolio, which meet the desire for a
a) Brand development and market positioning
The current marketing slogan “Sugar and More” may need to be re-assessed as to its ability to
capture the interest and imagination of potential visitors. It is effective for those who may be
interested to know more about the sugar industry but this is a very limited market. Negros
Occidental needs to develop a distinctive market position and a brand that can compete with
many other destinations, some of which will be offering similar experiences and packages.
There must be a consistency among the various offerings and it should be this positioning
statement that should guide this consistency.
Effective positioning will require the projection of a number of appeals which will act as
motivators for particular market segments. Prerequisites in the development of an effective
positioning and brand are the following:
-
Development of an understanding of how people perceive Negros Occidental as a
destination, including its natural and built environment, culture, its quality of service
and value for money
23
-
Analysis of market and consumer trends
-
Identification of the most viable market segments and choosing the most efficient means of
communicating with those target markets
The destination positioning and brand should be reflected in everything that Negros Occidental
as a tourist destination does or stands for --- not only its promotion, but also the policies and
procedures, employee attitudes, customer relations, complaint handling, and the various other
details that combine to make the tourism experience. It is necessary that the positioning is
reflected back to the provincial tourism development plan.
b)
Product development plan formulation
To bring about concerted, focused, and coordinated product development efforts within the
industry, the province needs an updated tourism development plan which is aligned to its
desired market positioning and, more importantly, upheld and shared by all stakeholders both
in the government and private sectors. Review and strengthening of tourism product
development plan would involve the following: a) identification of key products; b) assessment
of their scale of opportunity; c) determination of resource requirements and actions needed to
maximize potential and develop specific product differentiation factors that the tourism
industry can introduce and sustain as marketing proposal; and d) packaging of the various
products into full concept tourism packages. The plan should also outline the ways in which
private and public sector organizations can coordinate resources to develop and promote a
destination.
c)
Product portfolio development
Most of the responsibility for the development of needed products and services for the targeted
markets and market segments will be on the private sector. It is, therefore, necessary that they
are equipped with the necessary product development know-how and skills as well as possess
an in-depth understanding of the market requirements and standards. Inputs from design
consultants capable of developing products and services with a specific local identity would
accelerate the development process.
2. Development of cultural, sporting, and social events that would contribute to the extension of
the tourist season and the achievement of higher yields, improved profitability, and increased
employment in the industry.
This will primarily pertain to the development and expansion of the activity product base by
building on the resource foundations already in place. The industry should introduce innovative
mechanisms and activities that would encourage visitors to spend more money while in Negros
Occidental and/or prolong their stay.
Lifestyle researches indicate a growing interest in events and festivals together with an
increasing incidence of events becoming a prime motivator for travel. In many cases, tourists
are looking for more ‘content’ in their holidays. Cultural activities, for example, can be
effective in attracting high-yield tourists as has been the experience of the province with the
Masskara Festival. The province has to stage more events particularly during the lean season.
These events can help to differentiate the various tourism products, encourage repeat visits
and reduce the ‘been here, seen that’ syndrome. Traditional festivals and events in the
different municipalities should be better promoted for these provide excellent focus on the
areas’ culture and traditions.
Events, whether of cultural, sporting, and social themes, should enhance the desired image of
Negros Occidental as a tourist destination and, ideally, with national and international appeal.
Similar to the Masskara Festival, these events should have a champion as well as adequate
organization and marketing management resources. These should also be attractive to potential
sponsors. Combination of activities such as mixing sports activities with each other, with special
24
events, cultural pursuits or gourmet foods are becoming popular in many major tourism
destinations.
3.
An integrated public infrastructure network with convenient transfers between different modes
of transport is important to support growth of tourism and deal with increasing customer
expectations. Improvement of the airport and the roads should be among the priorities of the
province. The poor state of the roads in some areas has an impact on the condition of the
vehicles used and, therefore, on customer satisfaction and on costs in the part of transport
operators.
There is also the need to further develop and upgrade accommodation and convention facilities
and services including expansion of geographic spread parallel to niche market development
initiatives (e.g., bed and breakfast accommodations showcasing Negrense hospitality in a homestay environment, enhancement of the ‘sense of place’ or element of creative flair in hotels and
convention facilities, etc.).
4.
The province has to step up efforts to protect, conserve, and manage the environment.
Province wide promotion and implementation of waste management would be of primary
importance, as anything less will undermine the desired positioning of Negros Occidental as a
tourist destination. With growing customer awareness of the value of good environmental
practice in relation to waste management, Negros Occidental has an opportunity to gain a
competitive advantage.
B. Promotion and Market Development
Although the province has been quite successful in penetrating the MICE market, awareness of
Negros Occidental as a tourist destination is still low both in the domestic and international
markets. Generally, marketing is fragmented. Individual promotions and advertising are undertaken
by hotels, resorts, attractions, event organizers, local government, and DOT to draw people to the
city. In many of the establishments, main focus of marketing activity is publicity at the point of
arrival. The need to have coordinated promotional activities is imperative if a clear image is to be
portrayed of the province. Parallel to this, Negros Occidental must market itself aggressively and
consistently to ensure that: 1) the province is at the forefront of a potential visitor’s mind as it
competes for attention with an increasing number of alternatives; and 2) interest is translated into
firm bookings and sales. Two critical factors, therefore, that the Negros Occidental tourism
industry has to address in its promotion and marketing activities are:
- How to effectively communicate the range, appeals and experience value of the destination
or product (message and medium)
- How to achieve effective distribution of a product meeting a wide range of individual demands
Recommended Fields of Change and Improvement
1. Improvement of destination marketing of Negros Occidental
a) Use of market intelligence and consumer feedback in the preparation of communication and
promotional plan as a means of improving quality of info content and the relevance of
information to targeted markets. Generic destination awareness campaigns should gradually
shift to featuring a range of motivations and allied leisure and business products.
25
b) A focus on best prospects market sectors. Given the limited marketing resources, the industry
has to focus campaigns to markets and consumer segments that will offer best returns on
investment.
c) Expansion of range of promo collaterals both to induce visit and reinforce holiday experience
such as:
-
Pictorial references and souvenirs to reinforce image of holiday experience
‘Tangibilize’ offer in brochures, CDs, and videos – visual displays of the real things
d) Marketing along the lines of product themes built around the destination positioning would help
to get across the diversity of products which are available within Negros Occidental
e) Upgrading of marketing capabilities of tourism businesses including advertising agencies and
providers of tourism promotion services
2. Availability of tourism information at major gateway points (within and outside the Philippines)
and in strategic locations within Negros Occidental. These can be in the following forms:
-
Information kiosks at high density tourist spots
System of information tourist signage
Self-service information centers at strategic locations
3. Development of tourism internet portal for Negros Occidental --- a well-designed full concept
one-stop tourism virtual mall that provides visitors access to information and to reservation as
well as links to various tourism intermediaries.
4. Better use of travel agencies, tour operators, and other tourism intermediaries to promote and
distribute Negros Occidental tourism products complemented by publicity in appropriate media
to create awareness and establish credibility within the segments.
C. Quality and Competitiveness Improvement
The Negros Occidental tourism sector is dominated by micro, small, and medium enterprises. With
generally low barriers to entry, the Negros Occidental’s tourism industry is characterized by varying
levels of experience, skills, qualifications, business acumen, and professionalism. The result is
inconsistent and wide variance in product and service delivery. Increasing competition and the
trend towards higher expectations of service quality highlights the need to embrace an industry
wide approach to delivering quality experiences.
As a predominantly service industry, businesses and their workforce play a critical role in delivering
quality experiences. It is not just the natural beauty of Negros Occidental that will determine its
competitiveness in tourism, but also how these resources are managed and to what extent these
are complemented with high quality innovations and services. Planning for the appropriate mix of
competencies and skills and generally raising industry professionalism and standards are among the
key challenges and opportunities for Negros Occidental. Excellence in customer service can provide
the province with a clear competitive advantage, both nationally and internationally.
Parallel to this, quality and value for money need to be constantly reinforced by good physical,
operational and service standards delivered through continuous investment in plant, facilities and
personnel. As such, tourism businesses need to derive an adequate profit to ensure continued
expansion and proper maintenance of services and facilities. Many of the businesses in the sector
are ‘low profit earners’ particularly the micro businesses. Profitability of the sector needs to be
improved by increased utilization of assets, particularly high capital assets of accommodations and
resorts; the introduction of greater efficiencies, especially for the higher number of micro and
26
small enterprises; and ensuring that increases in sales are achieved on the basis of value-added
strategies rather than competing on price (low price offer).
Access to continuous education, skills upgrading, and training at all levels are critical bases for
growth. However, to date, market for business development services and vocational education in
Negros Occidental is weak, both in terms of supply and demand. Training and business development
services providers tend to lag behind developments in the industry. On the other hand, demand and
willingness to pay for support services and training are generally weak. The current skills gap is felt
both at the management and specialized operational levels. Specifically, the following are the
identified skill gaps across the five subsectors:
-
The lack of management and marketing skills
The need for closer realignment of operational skills to market standards and needs
The need for multi-skilling while still being a specialist
The lack of adequate skills in information technology
The need to enhance people and customer care skills
The lack of work readiness of recent graduates
Performance of tourism businesses can further be improved through better knowledge, expertise
and customer care. To ensure that quality of businesses and their workforce would not be a
continuing constraint to the growth of the industry, the following measures are recommended:
Recommended Fields of Change
1. Upgrading of existing management, marketing, and general administration courses to
international standards and re-alignment to requirements of the everyday operations of the
tourism trade. This can be effectively carried out through partnerships between industry – local
academe – schools elsewhere offering internationally recognized courses.
2. Development and/or strengthening of local capability to deliver dualized training programs of
international standards and with balanced emphasis on operational and people skills for various
competencies required in the hospitality, travel, tour, and transport segments. Franchising
arrangements and/or affiliation with internationally recognized providers may be among the
options that can be pursued by local providers.
3. Promotion among enterprises of the implementation of a Continuous Productivity and Quality
Improvement (CPQI) Program.
CPQI focuses on capacity building and works with enterprises through a sequence of support
services to improve production processes and business performance. Specific objectives of the
program are:
-
To facilitate improvements in organizational abilities in one or various function areas
within the enterprise that will enable it to significantly increase its productivity as well
as transform orientation from inspector-based to individual worker-based quality
control improvements
-
To introduce and facilitate adoption of quality management elements and socially
responsible practices under the ISO and SA8000 standards
-
To facilitate the adoption and implementation of environmental management systems
within the context of business growth and profitability
Methodology at Enterprise Level: “Learning by doing/Mentoring” through the involvement and
development of the capacity of all personnel and subcontractors of the enterprise. This has to
be done in collaboration with external BDS providers who will support the process and
implementation of solutions/corrective actions.
27
4. Promotion of the effective use of information technology in improving business operations and
marketing.
There is a need to motivate hotel and tourism enterprises in Negros Occidental to use
information technologies and information networks. The system of information technologies
(SIT) in the tourism industry includes the following: computerized reservation systems,
teleconferencing, video text, videos, video brochures, computers, management information
systems, airline electronic information systems, electronic funds transfer systems, digital
telephone networks, smart cards, satellite printers, and mobile communications. The increasing
use of the Internet for destination marketing, direct sales and bookings has given rise to
electronic tourism markets and, at present, tourism is among the important application
domains in the World Wide Web. The rapid diffusion of information technologies throughout the
travel and tourism industry is expected to improve the efficiency of production and the quality
of services provided to consumers, and to generate increasing demand for new services.
5. Promotion and development of a tourism-friendly culture across all sectors of the community
through effective public awareness and education programs.
Much of the enjoyment of a trip comes from casual contacts that the visitor has with local service
providers and residents. It is, therefore, important for each Negrense to fully embrace tourism.
Public awareness and education programs on customer orientation would help enhance the
inherent hospitable nature of Negrenses and put into action the city’s slogan “City of Smiles.”
6. Establishment of a province-wide industry led quality seal program
Uptake for accreditation in Negros Occidental, has been relatively low with less than 10% of the
companies currently DOT-accredited. Companies generally felt that accreditation is not that
important nor does it provide the business perceived advantages. In addition, there is a low
consumer awareness of what a DOT accreditation means (e.g., difference between a DOTaccredited and non-DOT accredited establishment). Some measures to strengthen the current
accreditation system would be the following:
-
Enhancement of value of DOT accreditation both for consumers and tourism enterprises
through inclusion of standards/criteria meaningful and relevant for both parties and
aligned to international accreditation system.
-
Re-engineering and streamlining of the accreditation processes to make it more effective
and efficient for businesses.
-
Improvement of incentives for accredited establishments
-
Effective promotion of accreditation program both to enterprises and consumers
Introduction of changes to the DOT accreditation would take quite some time. An alternative
would be to establish an industry led quality seal program. In a quality seal program, public and
consumer recognition are given to those businesses that strive to maintain and improve ethical
and professional standards that are set and agreed to by the industry itself. In many of the
tourism quality seal programs abroad, the system provides businesses with a tool to measure
and improve their business performance over time. It also involves documenting systems of
management and operations in order to ensure that they are able to consistently supply the
goods and services advertised. In turn, the quality seal system provides clients and industry
colleagues with an assurance that participating businesses are committed to professionalism
both in business operations and delivery of service. The quality seal program, as can be gleaned
from experiences of other countries, can be a powerful tool in encouraging the development of
each participating enterprise in the Negros Occidental tourism industry as well as an effective
marketing tool.
28
Section 6
PROPOSED PROGRAM INTERVENTIONS
A. Institutional Development/Planning
1. Initiate the revitalization of the TCDC or similar multi-sectoral organizations like ATANO and
provide organizational development assistance.
2. Technical assistance to TCDC or similar multi-sectoral organizations like ATANO in the review
and updating of the Tourism Master Development Plan including mentoring services during the
first year of implementation
3. Assist TCDC or similar multi-sectoral organization like ATANO in dissemination of salient points
of the development plan to all stakeholders. This may be done through forums, workshops, and
media publicity.
4. Organizational development assistance to selected tourism industry associations.
B. Product and Infrastructure Development
1. Support the establishment of a self-sustaining tourism market intelligence system. This may be
operated by TCDC or a local research company. Program support should be directed towards
the development of an efficient and cost-effective means of:
Locating/identifying information sources and needed information
Translating and applying these information materials to the context of SMEs
Packaging and disseminating these information to SMEs
-
2. Technical assistance to TCDC in the further definition of Negros Occidental brand and
positioning including its consequent adoption by the various stakeholders. Assistance may be in
the following areas:
Research and development
Support to market launching of revitalized brand
Support to development of phased-in campaign directed to enterprises (buy-in) and to
target markets
-
3. Develop local providers of product development services. Technical assistance may consist of:
Technology and knowledge transfer/training
On-the-job training: program supported providers work with a pilot group of enterprises
(preferably, the more progressive and influential entrepreneurs)
Assistance in the development of financial sustainability schemes vis-à-vis affordability of
services
Assistance in development of markets for services
-
4. Encourage existing tourism enterprises to invest in product development via:
-
Workshops on best practices and on current tourism product trends including envisioned
product development directions of the whole tourism industry
-
Exposure to working with professional design consultants. This can be part of the onthe-job training of local providers under the initial tutelage of international consultants.
Results of these pilots disseminated to encourage similar initiatives from other tourism
enterprises.
29
-
Broker agreements with finance institutions to provide soft loans for product
development projects of tourism businesses parallel to establishment of linkages with
local product development providers trained/supported by program
5. Assist in the development of advocacy campaigns for increased allocation and/or prioritization
of public infrastructure improvements (e.g., airports, roads, etc.).
6. Technical assistance in the development of waste management system and establishment of
pool of local experts that can assist enterprises in the set-up of their own systems.
C. Promotion and Market Development
1. Support the development of tourism internet portal for Negros Occidental. Assistance may be
directed towards the following:
-
Technical expertise: concept, content, and technology
Development of financial sustainability schemes
Development of promotional campaign (directed to potential users of services)
2. Improve capability of existing journalists, advertising companies, web designers, multimedia
designers, graphics company, souvenir manufacturers, marketing and promotion companies,
and the like to address promotion and marketing needs of the tourism industry. Technical
assistance may consist of the following:
-
Skills upgrading
Development of services/Revitalization of existing services
Development of delivery and payment schemes to make services more accessible and
attractive to target clients
Pilots: local providers work with selected group of enterprises as part of the on-the-job
training as well as to validate benefits of services. If successful, results of pilots can be
used as part of the promotional campaign for the services
3. Technical assistance to the industry via the Tourism Council in the development of a marketing
and communications plan. This may also be part of the on-the-job training of program
supported local promotion and marketing providers.
4. Broker marketing agreements between tourism service establishments and travel and tour
operators. Parallel to this, assist Negros-based travel and tour agencies in forging partnerships
with national and international travel intermediaries including Philippine embassies and trade
attaches.
D. Quality and Competitiveness Improvement
a) Facilitation of linkages between industry, local providers and establishments offering
internationally recognized courses
b) Assistance in the development and/or customization of curricula as well as capability build-up
of local training providers
c) Assistance to training providers in the development of various delivery and payment modalities
to address affordability and accessibility issues.
d) Development of local capability to deliver Continuous Productivity and Quality Improvement
Program to enterprises. Parallel to this, stimulation of demand for program through
demonstration of benefits and impact via pilots.
e) Assistance to IT training institutes in the development of customized training program for
tourism businesses. Demonstrate benefits of use of IT to enterprises through pilots.
30
f)
Marketing assistance to providers with new and/or high quality product offers
g) Technical assistance in the development of public awareness program designed to promote
province wide tourism friendly culture.
h) Technical assistance in the development and implementation of Quality Seal program.
31
Annex A
FOOD SERVICES ESTABLISHMENTS
1
Table of Contents
A. Players and Relations in the Subsector
B. Products and Services
C. Markets
3
3
6
7
Section 2. Value Chain
Section 3. Human Resources
Section 4. Constraints and Potential Solutions
A. Management/Organization
B. Human Resources
9
14
17
17
18
C.
D.
E.
18
19
20
Technology/R and D
Inputs
Market Access/Marketing
2
Section 1
INDUSTRY STRUCTURE
A. PLAYERS AND RELATIONS IN THE SUBSECTOR
1. Food Service Establishments
•
The food service industry in Negros Restaurant Industry Definition based on the PSIC
Occidental is characterized by national
PSIC Code Description
and international chains as well as
98101
Restaurants and Cafes
individual small and micro businesses.
Bacolod City abounds with restaurants,
98102
Refreshments and Ice Cream Stands,
most of which offer Negrense cuisine. As
Kiosks, and Counters
of June 2004, there are 1,104 DTI 98103
Day and Night Clubs
registered food service establishments
98104
Cocktail Lounges and Bars Operation
ranging from full-service restaurants to
Source:
National
Statistics Office
self-service/fast food establishments.
These establishments include fine dining
restaurants, specialty and theme restaurants, fast food outlets, canteens, eateries, and food
courts.
•
Restaurant business is relatively easy to enter particularly the low-end segment consisting of
carenderias and eateries as well as snack stalls. In Negros Occidental, there are more mid-low to
low end establishments than upscale and fine dining restaurants. Set-up and operations of
medium end and upscale full-service restaurants though entail both high labor costs and capital.
Exit barriers are relatively high for this particular segment primarily because the food
equipment is quite expensive and their use is also specialized.
•
Upscale and fine dining restaurants are generally owned and located in first class and standard
hotels The bigger hotels in Bacolod City generally have two restaurants: a) an upscale formal
restaurant; and b) casual coffee-type restaurant.
•
The full-service category is dominated by grill/buffet type and casual dining restaurants. These
restaurants usually offer Negrense and Filipino cuisine. Many of these restaurants have a
Filipiniana theme.
•
Popular special attractions in Negros Occidental include the following: a) the Palapala market
and similar establishments where customers buy the fresh produce and ask the establishments to
cook these; and b) establishments where customers catch their own fish --- ‘cook and eat what
you catch’. A trend in the restaurant industry rapidly gaining popularity is the ‘eat-all-you-can
buffets’, which are offered at reasonable prices.
•
In the outskirts, many of the food service establishments are the carenderias and a few specialty
and themed eating places. Considered as ‘top of the line’ food service establishments in the
rural areas are the restaurants in the resorts. Likewise, resort restaurants are almost always the
only ones with capacity and capability to cater to functions and events.
•
Fast food establishments include giants such as Jollibee, McDonalds, Pizza Hut, etc. The fast
food chain outlets are located mostly in Bacolod with a concentration in the malls. In the fast
food segment, Jollibee remains at the top. Chowking remains the Number 1 and undisputed
Chinese restaurant in the country (and most likely also in Negros Occidental) in terms of sales
and total number of branches nationwide.
•
Capital investments particularly for franchises can range anywhere from PhP 100,000 to PhP 30
million. A Jollibee franchise in the Philippines reportedly ranges from P15 million to P30 million,
3
depending on the store size and model. A usual store is roughly 350 square meters. US firms
have a very strong presence in the Philippine food franchising industry.
•
Domestic and international food chains and franchises facilitate transfer of technology to the
local restaurant industry. Training, marketing, and distribution channels are arranged by the
franchisor. They provide training of potential employees and employ strict quality control
systems. Likewise, prior knowledge and experience are not required of franchisees since
franchisor provides the new entrant fully developed management and production systems. In
one way or another, the rise of shopping malls in Negros Occidental eases the entry of new
restaurants and fast food outlets particularly in terms of promotion and establishing its presence
in the market.
•
International and national fast food chain outlets pose serious competition for single-unit food
service establishments. Aside from the fact that these are massively advertised, they have also
the added advantage of being able to provide better service and quality products at prices at
par or sometimes lower than that of similar products.
•
Of the 1, 104 restaurants, only 5 are accredited by DOT. Application for accreditation by
restaurants follows the same procedure and requires the submission of general requirements as
discussed under the hotel subsector and detailed in Annex H. Restaurants need to submit the
following in addition to the general requirements: food and beverage prices/menu;
comprehensive general liability insurance; and fire safety inspection certificate. In the same
Manila.
Accredited restaurants enjoy the additional following incentives specific to restaurants: 1)
Endorsement to COMELEC for exemption from liquor ban during election related events; and 2)
Endorsement to the DA for importation of meat and meat products on top of the benefits
accorded to all accredited establishment.
•
Unity and mutual cooperation among restaurants are being promoted, albeit intermittently and
on an adhoc basis, by the Hotel and Restaurant Association of Negros Occidental (HRANO). The
association has also conducted some training courses aimed at upgrading and professionalizing
the industry.
2. Relations with Input Suppliers/Backward Linkages
Restaurant Industry Backward Linkages
1
Rank1
1
2
3
4
5
Slaughtering and meat packing
Rice and corn milling
Ocean, coastal, and inland fishing
Meat and meat products processing
Wholesale and retail trade
6
7
8
9
10
Canning and preserving of fruits and vegetables
Vegetables
Flavoring extracts, mayonnaise, and food coloring products
Soft drinks and carbonated water
Cutlery, handtools, general hardware
11
12
13
Coffee roasting and processing
Coconut
Electricity
Industry
Based on value (PhP)
4
Restaurant Industry Backward Linkages
Rank1
14
Malt and malt liquors
15
16
17
18
19
20
Noodles
Eggs
Miscellaneous food products
Fruits and nuts
Roots and tubers
Aquaculture and other fishery activities
21
Others
Industry
•
The biggest suppliers of the food service industry are the slaughtering and meat packing, rice
and corn milling, and ocean, coastal, and inland fishing subsectors.
•
Suppliers of food produce have substantial influence over pricing of goods and services
especially in the fast food industry because of the limited supply or lack of substitutes. Majority
of the respondents indicated that a significant volume of the food supply is sourced outside of
the province for any or all of the following reasons: a) local supply of inferior quality; b) no
available supply; and c) volume of local supply not sufficient.
A restaurant owner, for instance, indicated that he sources blue marlin from General Santos,
oysters from Roxas and scallops from Victoria.
Another respondent claimed that they source
lettuce from Baguio through a supplier because the lettuce from Kanlaon is not as good. A café
shop owner-respondent says he source 90% of coffee beans from either Batangas or Cavite
through a coffee roaster based in Manila and only 10% locally because the local supply is minimal.
Other products being sourced from Cebu and Manila are meat, frozen food, and imported
ingredients.
•
Majority of the food service establishments buy their vegetables mostly on a daily basis. Factors
that affect choice of suppliers are prices, substitution of raw materials, freshness, and
consistent quality. Commissaries, particularly of fastfood chains and hotel restaurants, demand
vegetables to be of the right variety, size, form, and quantity, and free from damages from
insects or mishandling. During lean months or off-season, quality and price inconsistency are
more pronounced.
•
Hamburger chains have the highest demand for lettuce (iceberg), salad tomatoes for their
sandwiches, potato fries, white and red onions, bell peppers --- all of which are medium to high
value vegetables.
Chinese dishes require herbs and spices such as onions, garlic, ginger, kuchay, celeries, brocolli,
young corn, bell peppers, etc., which are mostly high value vegetables. Restaurants catering to
the high-end Chinese market require their vegetables to be of superior quality. Filipino
restaurants require vegetables for “pinakbet, sinigang, kare-kare, nilaga, or tinola,” which are
generally low to medium priced vegetables. Seafood specialty restaurants require herbs and
spices.
Generally, hotels with restaurants require high value fruits and vegetable crops and herbs and
spices. Their volumes are not as big as that of supermarkets but they follow strict quality
standards. There is also the general preference for imported vegetables. Credit terms extend to
as long as 30 days.
•
In many cases, relationships with local suppliers and suppliers from Cebu and Manila (meat,
frozen food, coffee, imported ingredients) have been established and maintained informally.
These suppliers are already familiar with the quality requirements of the establishments.
Formal contracts cover the transactions with big companies supplying food and beverage items.
5
In some cases, exclusive contracts bind the relationships. Payments to local suppliers are on a
cash basis while terms are agreed upon in the contract with bigger establishments.
•
Suppliers of food items from Cebu or Manila ship the materials either by air or water,
depending on the shelf life of the items. Perishable goods are transported by air.
•
Purchase of equipment, furniture and fixtures are usually one-time investment with very slow
upgrading during the lifetime of the establishment particularly for the micro businesses.
Equipment purchasing decisions depend on the type of establishment. For example, local
single-unit restaurants particularly the micro businesses would usually just require basic food
service and kitchen equipment, with price as the main criterion. Establishments that are part
of international and national chain have the relatively more sophisticated equipment.
Restaurant owners use both local and imported equipment, furniture, and fixtures. Two
problems though with the locally made equipment are the lack of after-sales service and the
difficulties in sourcing spare parts.
•
Among medium and high end restaurants as well as chain food establishments, the ambiance of
the place is given much emphasis. For chain establishments, design and layout are usually
provided by the franchisor. For individual restaurants, it is usually the owner and/or the
manager who decides on the interior decoration. The bigger and more progressive companies
hire the services of a designer. Atmospherics2, nowadays, are built with the restaurant concept,
which has an immediate sensory impact on customers.
3. Relations with Other Tourism Establishments/Forward Linkages
•
Relationship between restaurants and hotels, event organizers, travel agents, and tour guides is
generally limited to referrals. Exceptions to these are package deals particularly for
conventions and events where restaurants are formally contracted by events organizers.
•
Tour guides and taxi drivers earn commissions from transactions with some restaurants for
clients they refer. Some restaurants however, complain because tour guides ask for discounts
when they make arrangements with the restaurants and still ask for commission on the day of
the transaction. It seems that there is no pricing system in place to include incentives for
intermediaries and, on the other hand, intermediaries do not fully understand how commissions
are collected.
B. PRODUCTS AND SERVICES
•
The hotel restaurants cater to both hotel guests and walk-in customers. Compared to freestanding or independent eating establishments, hotel restaurants particularly those in the first
class and standard hotels generally offer higher degree of service sophistication. This requires
additional food preparation and service skills training. Most hotel guests would patronize the
restaurant for breakfast meals but, more often than not, prefer to take their other meals at
independent restaurants outside of the hotel. One of the reasons for this is the higher prices
charged by hotels compared to independent restaurants outside of the hotel. Breakfast time is
usually the busiest for hotel restaurants.
•
The bar is an important revenue source for the food and beverage department of a hotel.
Generally, profit percentage on all beverages is higher than on food items. Likewise, unlike
restaurant meals, a beverage can be stored if not sold.
•
A popular service of hotel restaurants is what they call banqueting for local clients. These are
for events like weddings, baptisms and birthdays where the hotel provides food, beverages and
2
The design used to create a special atmosphere
6
venue for the occasion. Another service offered by hotel restaurants is catering, usually as part
of the ‘convention package.’ These two services provide good income for the hotels because of
the economies of scale these events offer. Another is the provision of food and beverages as
component of the package for ‘convention.’
•
Banqueting and catering are also being offered by restaurants. These two activities are
significant sources of income.
•
Fine dining and specialty restaurants offer a wide variety of international cuisines. Many of the
restaurants employ the American service, a simplified Russian service technique. The food is
prepared and dished onto individual plates in the kitchen, carried into the table, and served to
guests. This method of service is more popular than the Russian service because it is quicker
and the guests receive the food hot and beautifully presented.
•
Self-service restaurants usually have several foods displayed on counters. The customer makes
his/her selections and usually pays for the entire meal at the end of the line. The fast food
restaurants, usually operated in chains or as franchises and heavily advertised, offer limited
menus --- typically comprising of hamburgers, hot dogs, fried chicken, or pizza. There are also
fast foods specializing in Filipino cuisine like the ‘lechon manok’ and some snack food. These
are usually single units and not part of a chain. These fast foods particularly those operated in
chains or franchises have the advantage of speed, convenience, and familiarity to diners.
Delivery services are also offered by most of the fast food and restaurant chains.
•
Fast food chains also offer year round party packages, which generally include the venue, food,
party games and give-aways. The parties may be on-site or off-site.
•
Intense competition particularly in the fast food industry makes it imperative for
establishments to continuously come up with new products or improve their products and
services. Some companies (e.g., Jollibee) give incentives to motivate employees to maintain
high standards of quality service and cleanliness. Also important in the food service industry is
courteous and friendly personnel. Speedy service is also among the more important attributes
expected from a fast food restaurant.
•
There is no pronounced business seasonality in the food service industry. It is, however,
observed that sales are significantly higher during the month of December due to the Christmas
shopping (which is an activity adjunct to eating out) and celebration of Christmas parties and
dinner in restaurants.
C. MARKETS
•
Food service of hotel-based restaurants are targeted but not limited to hotel guests.
These
restaurants have the same market with accommodation during MICE as food is most often a part
of the package. The MICE market is local and domestic. Domestic market consists mostly of
big companies based in Manila.
•
Main clients of banqueting and catering are the local residents and institutions. Restaurant and
fast food clientele consist mainly of the local populace. It is estimated that only about 20% of
their customers are from the outside of the region, either domestic or foreign tourists. Peak
months for restaurants are from December to February.
The youth is a growing segment of the market since eating out is a regular activity among the
young especially among students. Majority patronize the fast food establishments primarily
because of the relatively affordable prices, heavy influence of advertising, and fast and prompt
service.
Other markets include families who make weekend dining an occasion and professionals who
opt to eat out during lunch and snack breaks. Institutional buyers avail of the services of the
7
food service industry for occasions such as seminars, workshops, meetings, company
celebrations, and marketing and promotional activities.
•
Restaurants and cafes are frequented by corporate people who combine dining and short
discussions/meetings. There is a perceived growing market of coffee drinkers as the student
population is joining the ranks and utilizes the cafes to meet classmates and friends. A
restaurant owner, however, claims that this market is becoming saturated owing to the entry of
several establishments providing similar services.
•
Recent studies show that the Filipino consumers value the following characteristics of
restaurant products and services as the most important, according to priority: a) flavor and
taste; b) value for money/nutrient content; c) presentation and packaging; d) variety; e)
systematic ordering and selling; f) feeling of security in food and environment; g) prompt
delivery and service; h) consistency of service; i) feeling of recognition and importance; and j)
feeling of security in location and accessibility. 3 With the present economic difficulty,
customers want wide variety of cheaper but better tasting food making the task of menu
preparation doubly challenging.
•
Competition is fierce in the food service industry particularly among the fast food
establishments. Although market is large, it is generally price sensitive and with strong brand
loyalty. Market niching is, likewise, practiced. With quite a number of food service
establishments in Negros Occidental, pricing schemes and marketing strategies are crucial
determinants of market shares. Promotion campaigns of restaurants are usually geared towards
the following: a) ‘value for money’ concepts; and b) brand loyalty and consciousness. Major
players particularly the food chains invest heavily on advertisement.
•
Restaurants generate customers via direct marketing, promo/discounts, radio and newspaper
advertisements, tender/bidding/proposals, signage, sponsorship of events, referral, word of
mouth and through intermediaries like event organizers, travel agents, tour guides and taxi
drivers. Food chain outlets are more active in promoting service than the individual non-chain
restaurants.
3
Dr. Divina Edralin and Ms. Paulynne Castillo, An In-depth Study of the Hotel and Restaurant Industry in the
Philippines, August 2001.
8
Section 2
VALUE CHAIN
FIRM
INFRASTRUCTURE
Menu Planning: most important ingredient in a restaurant’s success; menu must be in line with restaurant concept and concept
must be based on what target market expects. Main considerations in menu planning and which, oftentimes, are not fully
considered by owners and/or managers are the following: a) needs and desires of guests; b) capability of cook; c) equipment
capacity and layout; d) consistency and availability of main ingredients; e) price and pricing strategy (cost and profitability); f)
nutritional value; g) accuracy in menu; h) menu analysis (contribution margin); i) menu design; and j) menu engineering
Food safety/sanitation/Good Manufacturing Practices (GMP): industry needs to improve training and implementation of practices
and procedures in food safety and GMP; not widely practiced in smaller and lower end establishments
Financial Management: accounting, billing and payment system – in many establishments, this is done manually; cost control/cost
prevention - accountability for food and labor costs is a required skill for which chefs and/or owners need to be trained further
Inventory control and tracking: inventory management is key to balancing raw material demand and supply; many of companies
practice ‘just-in-time delivery’
Product specifications/Production process and quality control standards: in many establishments, these are not formally
documented and based on locally acceptable norms
HUMAN RESOURCE
MANAGEMENT
Franchisors especially international chains provide the new entrant fully developed management and production systems.
Recruitment via local newspaper advertisements and referrals; priority given to those laid off due to seasonality
Orientation and training for new employees; on-the-job training; in chain restaurants, there are training opportunities for
employees
Employees work by shifts
TECHNOLOGY
DEVELOPMENT/
R and D
Compensation as per Philippine Laws and prevailing market rates
Recipe/product development; several fast food chains serving only western food have introduced items or adjusted recipes to local
palate
Limited use of information technology in operations especially among single unit or stand alone restaurants
9
Micro scale food service establishments utilize very basic technology
PROCUREMENT
Domestic and international food chains and franchises facilitate transfer of technology
In micro scale establishments, daily purchase of fruits and vegetables, meat, fish, etc. at public markets to ensure freshness.
Purchase is usually done by owner and/or person trusted by owner. Same person may also do the receiving, storing, and inventory.
In bigger establishments, purchases are covered by contracts and purchase orders. Some suppliers deliver directly to
establishments. Institutional suppliers like softdrinks companies deliver the goods to the establishments.
Among bigger establishments (e.g., hotel restaurants, franchise and chain restaurants, some small and medium scale restaurants),
restaurant operators have purchasing systems (usually manual) that determine the following: a) product specifications for each
item; b) theft and losses control; c) the amount of each item that should be on hand (par stock and reorder point); d) who will do
the buying and make purchasing decisions; and e) who will do the receiving, storage, and issuing of items.
Low price – good terms – good quality
MAIN ACTIVITIES
INBOUND LOGISTICS
OPERATIONS
Pre-purchase:
- Plan menu
- Determine quality and
quantity needed to
produce menu
- Determine inventory
stock levels vis-à-vis set
par levels
- Identify items for
purchase including
specifications
Receive, inspect, and store
deliveries. Inspection --usual visual and random
sampling.
Issue food supplies for
Table service:
- Greet the guest
- Hand out menu; in some
cases, help is extended
to customers in deciding
orders
- Take orders
- In some restaurants,
servers check whether
guests need something
else and satisfied with
their orders
- Check for additional
orders
Food/order preparation
- In quick service/ buffet
establishments/
OUTBOUND
MARKETING
Mobile delivery service
Direct marketing
Food served directly at
tables or handed to
customers
Referral; word of mouth
Promo / discounts/ Gift
certificates
AFTER SALES SERVICE
Feedback gathering done
informally most of the time
Small gifts/ discounts to
loyal customers
Radio and newspaper ads
Signage
Tender/bidding/proposals
Sponsorship of event
Commissions (to tour
guides, taxi drivers)
10
production and service.
Some owners issue supplies
to the kitchen on a daily
basis to ensure freshness
and for better control.
Owners generally follow
‘first in – first out system’
-
cafeteria, stock
products needed for the
day are prepared (either
full or semi) prior to
rush hours
For many of the full
service establishments,
food ad beverages are
prepared as they are
ordered. Many of the
owners are conscious of
the time required to
prepare orders --objective is to minimize
waiting time of
customers.
Billing and payment
Cleaning/dishwashing
Entertainment
11
•
In the food service business, one of the challenges is to create a restaurant concept that fits a
definite target market. The restaurant’s concept, location, menu, and ambiance should
intertwine and have a close fit with each other. Oftentimes, putting these elements together
and cohesively is one of the weaknesses of food service establishments. The atmosphere of a
restaurant plays an important role in the decision-making process used by potential customers in
selecting restaurants. Atmosphere and ambiance are created by the lighting, furniture and
furnishings, music, uniforms of the servers and other frontline staff, etc.
•
The menu is the most important ingredient in a restaurant’s success. Capabilities of the chefs,
equipment capacity and layout have impact on the efficiency and speed that orders are
prepared.
•
Many restaurant owners use a combination of comparative pricing and individual dish pricing. A
comparative approach analyzes the price range of the competitors. The second method is to
cost the individual dish item in the menu and multiply it by the ratio amount necessary to
achieve the desired food cost percentage.
•
In cafeterias and small eateries, the menu may be written in a blackboard. Fast food service
menu are usually illuminated above the order counter. More formal menus are often single page,
or folded with three or more pages.
Like the brochure of the hotel, a menu is a sales and motivational tool. A menu’s design can
subtly influence the guest as to what to order. The paper, colors, and artwork all play important
roles in influencing guest decision and in further establishing the restaurant’s image and
ambiance.
•
Ideally, servers should not only be order takers but should also function as salespeople of the
establishment. A server who is not well educated about the menu can seriously hurt the business.
Competent servers can do some ‘suggestive selling’ as a means of increasing food and beverage
sales.
•
Another important aspect of a restaurant business is the ‘back-of-the-house’ operation. The
‘back-of-the-house’ refers to all areas that the guests do not come into direct contact with. This
includes purchasing, receiving, storing/issuing, food production, stewarding, budgeting,
accounting, and control.
•
Controlling the production process is important to: a) ensure quality and consistency; and, b)
minimize waste and incidences of spoilage due to overproduction (especially for food prepared
in advance --- such as in cafeteria and eateries, fast food chain). Parallel to this, restaurants
need to have reliable sales data in order to be able to set realistic par levels.
•
In a study conducted by the Center for Food and Agribusiness of the University of the Asia and
the Pacific, the following are the critical success factors of restaurant operations in the
Philippines:
Advertising and Promotion/Extensive Marketing. To maintain a competitive edge in the industry,
players spend millions on advertising. There are different kinds of gimmicks like a toy in every
set meal for kids, discounted food items if you purchase two items, free gift items, raffle draws
and a lot more. Some food companies even get celebrity endorsers to create brand
consciousness and market loyalty.
Market niching is key. Entrants must strive to project an image that can shift brand loyalty from
existing players. A well-managed logistics and marketing support system are required to run
several local operations. Aggressive marketing is required to make a strong impact. However,
good marketing strategies mean having sufficient capital to support the marketing campaign.
There is also some degree of capital investments in order for restaurants to provide the
necessary ambiance and image in support to its marketing.
12
Proper Pricing. With the present economic slowdown, people eat out but with a limited budget.
Price cuts and discounts are offered to increase sales. Food outlets that offer the most value for
money (less than P100/ meal) are the popular ones. Almost all eating places offer their own price
cuts or discounted meals.
Quality of Food, Service and Facilities. Providing high quality food that conforms to the taste of the
consumer coupled with fast and efficient service in a clean environment is a big incentive to growth.
Consumers have become even more discriminating and quality-conscious.
Product Lines. Targeting the consumers' taste buds means continually upgrading the menu. This is
one key in capturing more customers.
Strategic Locations. Location and restaurant concept must go hand in hand. The location should
appeal to the target market. Malls, university areas, and other places where there is heavy
pedestrian traffic are the usual places where food outlets are highly patronized. Prime locations
such as malls though cost more so operators must charge more for their menu items or generate
sufficient volume to keep the rent/lease costs to between 5 and 8 percent of sales.
Availability of Raw Materials. The smooth operations of food outlets require a steady and adequate
supply of raw materials. These companies must then establish tie-ups with reliable suppliers.
Franchising. For new investors, franchising is a good way to start. With franchising, there is already
product identification.
13
Section 3
HUMAN RESOURCES
•
Many of the food and beverage servers including cleaners are part time employees. In fast food
chains, a significant portion of the employees are part time students. Tips comprise a major
portion of earnings, so there is keen competition in jobs where potential earnings from tips are
greatest --- bartenders, waiters and waitresses, and other jobs in popular fast food outlets,
restaurants, and fine dining establishments. One restaurant owner claimed that his
establishment provides free meals to employees while they are on duty as an incentive.
•
Recruitment of staff is either through referrals or newspaper advertisement. Short listed
applicants undergo interviews and qualified applicants undergo on the job trainings. On the job
trainings are conducted by the owner or the supervisors. In-house training is necessary but very
limited in terms of increasing or enhancing overall in-house skills and knowledge. According to
FGD participants, there is no pool of skilled workers for the food service subsector available in
the province. Most food and beverage serving and related workers pick up their skills on the job
by observing and working with more experienced workers.
There are not much training opportunities for restaurants claimed a respondent because there
are no providers of trainings in culinary arts in the area. HRANO took the initiative and provided
or organized cooking demonstrations and basic food safety trainings.
•
Due to the relatively small size of most food-serving establishments, opportunities for promotion
are limited. For waiters, waitresses, and bartenders, advancement usually is limited to finding a
job in a busier or more expensive restaurant or bar where prospects for tip earnings are better.
Some hosts and hostesses and waiters and waitresses advance to supervisory jobs, such as maitre
d’hotel, dining room supervisor, or restaurant manager. In larger restaurant chains, food and
beverage service workers who excel at their work often are invited to enter the company’s
formal management training program.
•
Full service restaurants would usually have the following organizational structure: a) Kitchen:
cooks, assistants, expediter, receiver, dishwasher; b) Bar: bartenders, cocktail servers; and c)
Front of the house: hostess, servers, entertainers
•
Food and beverage serving and related workers are the front line of customer service in
restaurants, coffee shops, and other food service establishments. These workers greet
customers, escort them to seats and hand them menus, take food and drink orders, and serve
food and beverages. They also answer questions, explain menu items and specials, and keep
tables and dining areas clean and set for new diners. Most work as part of a team, helping
coworkers during busy times to improve workflow and customer service.
There are no specific educational requirements for food and beverage service jobs. Many
employers prefer to hire high school graduates for waiter and waitress, bartender, and host and
hostess positions, but completion of high school usually is not required for fast-food workers,
counter attendants, dishwashers, and dining room attendants and bartender helpers. A job as a
food and beverage service worker serves as a source of immediate income, rather than a career,
for many people. Many entrants to these jobs are in their late teens or early twenties and have
a high school education or less. Usually, they have little or no work experience. Many are fulltime students or homemakers. Food and beverage service jobs are a major source of part-time
employment for high school and college students.
•
Waiters and waitresses take customers’ orders, serve food and beverages, prepare itemized
checks, and sometimes accept payment. Their specific duties vary depending on the type of
establishment. In coffee shops and fast food outlets, servers are expected to provide fast,
efficient, and courteous service. In fine dining restaurants, where more complicated meals are
prepared and often served over several courses, waiters and waitresses provide more formal
service either American and Russian style emphasizing personal and attentive treatment. They
14
may recommend certain dishes and identify ingredients or explain how various items on the
menu are prepared.
Waiters and waitresses sometimes perform the duties of other food and beverage service
workers especially in fast food outlets. These tasks may include escorting guests to tables,
serving customers seated at counters, clearing and setting up tables, or operating a cash register.
However, full-service restaurants frequently hire other staff, such as hosts and hostesses,
cashiers, or dining room attendants, to perform these duties.
Waiters and waitresses need a good memory to avoid confusing customers’ orders and to recall
faces, names, and preferences of frequent patrons. In some cases and especially among those
working in fast food outlets, the waiters and waitresses need to be quick at arithmetic so they
can total bills manually. Prior experience waiting on tables is preferred by restaurants and
hotels that have rigid table service standards. Jobs at these establishments often offer higher
wages and have greater income potential from tips, but they also have stiffer employment
requirements, such as higher education or training standards, than other establishments.
Knowledge of a foreign language is helpful to communicate with a diverse clientele and staff.
•
Bartenders fill drink orders either taken directly from patrons at the bar or through waiters and
waitresses who place drink orders for dining room customers. They prepare mixed drinks, serve
bottled or draught beer, and pour wine or other beverages. Bartenders must know a wide range
of drink recipes and be able to mix drinks accurately, quickly, and without waste. Besides
mixing and serving drinks, bartenders stock and prepare garnishes for drinks; maintain an
adequate supply of ice, glasses, and other bar supplies; and keep the bar area clean for
customers. They also may collect payment, operate the cash register, wash glassware and
utensils, and serve food to customers seated at the bar. Bartenders usually are responsible for
ordering and maintaining an inventory of liquor, mixes, and other bar supplies.
Some bartenders directly serve and interact with patrons. Bartenders should be friendly and
enjoy mingling with customers. Bartenders at service bars, on the other hand, have less contact
with customers. They work in small bars often located off the kitchen in restaurants, hotels, and
clubs where only waiters and waitresses place drink orders.
Some bartenders acquire their skills by attending a bartending or vocational and technical
school. These programs often include orientation on local laws and regulations, cocktail recipes,
attire and conduct, and stocking a bar. Although few employers require any minimum level of
educational attainment, some specialized training is usually needed in food handling.
•
Full-service upscale restaurants hire hosts and hostesses to welcome guests and maintain
reservation or waiting lists. They may direct patrons to coatrooms, restrooms, or to a place to
wait until their table is ready. Hosts and hostesses assign guests to tables suitable for the size of
their group, escort patrons to their seats, and provide menus.
•
Dining room and cafeteria attendants and bartender helpers assist waiters, waitresses, and
bartenders by cleaning tables, removing dirty dishes, and keeping serving areas stocked with
supplies. Sometimes called backwaiters or runners, they bring meals out of the kitchen and
assist waiters and waitresses by distributing dishes to individual diners. They are also in-charge
of making sure that there is an adequate supply of clean linens, dishes, silverware, and glasses.
Likewise, they keep the bar stocked with glasses, liquor, ice, and drink garnishes.
Dining room attendants set tables with clean tablecloths, napkins, silverware, glasses, and
dishes and serve ice water, rolls, and butter. At the end of the meals, they remove dirty dishes
and soiled linens from tables.
Cafeteria attendants replenish serving counters with food, trays, dishes, and silverware and may
carry trays to dining tables for customers. Bartender helpers keep bar equipment clean and
wash glasses. Dishwashers clean dishes, cutlery, and kitchen utensils and equipment.
15
•
Counter attendants take orders and serve food in cafeterias, coffee shops, and carryout
eateries. In cafeterias, they serve food displayed on steam tables, carve meat, dish out
vegetables, ladle sauces and soups, and fill beverage glasses. In coffee shops, counter
attendants take orders from customers seated at the counter, transmit orders to the kitchen,
and pick up and serve food. Counter attendants also take carryout orders from diners and wrap
or place items in containers. They clean counters, write itemized checks, and sometimes
accept payment. Some counter attendants may prepare short-order items, such as sandwiches
and salads.
One of the most important aspects of running a successful restaurant is having a strong back of
the house operations particularly in the kitchen. As pointed out by respondents, the chef and
the kitchen crew are among the more important employees in a restaurant establishment. The
owners of restaurants keep an eye on the kitchen or are even the cook themselves. The chef in
one hotel-based restaurant needed to have a background in international cuisine. These people
hold the fate of the restaurant in terms of food quality and safety.
•
Ideally, chefs need a strong culinary foundation and multi-culture cooking skills. They also need
to possess traits such as passion, dependability, cooperation, and initiative. Additional
management skills needed include strong supervisory skills, accounting, sanitation/safety,
nutritional awareness, and marketing/merchandising.
•
Controlling costs is an essential part of food and beverage operations. Effective control of food
costs entails having a cost-effective purchasing system, a controlled storage and issuing system,
and strict control of the food production and sales. A main implication for this is the need for
skilled employees in the ‘back of the house’ operations, which unfortunately, many of the
smaller establishments lack.
•
With labor costs comprising a significant percentage of the variable costs, staffing is an
important factor in the daily operations of a food service establishment. Generally, fast food
restaurants have the lowest labor costs percentage while upscale full service restaurants having
the highest. Quick service restaurants have a lower payroll cost primarily due to their limited
menu and service.
•
In many of the international food chains, food cost percentage is used as a yardstick for
measuring the skill of the chef, cook, and management to achieve a predetermined food cost
percentage --- usually 28 to 32 percent for a full service restaurant and a little bit higher for a
high volume fast food establishment.4
Another operating ratio used by experienced restaurant operator is the contribution margin,
which in one way or another is also dependent on the skills of the chef and the manager. The
contribution margin is the amount that a menu item contributes to the gross profit, or the
difference
between
the
cost
of
the
item
and
its
sales
price.
4
John R. Walker, Introduction to Hospitality
16
Section 4
CONSTRAINTS AND POTENTIAL SOLUTIONS
A. MANAGEMENT/ORGANIZATION
Constraints
Operations not standardized in
small establishments; no
formal documentation of
processes and standards
Food safety and cleanliness not
conscientiously implemented
Only a few establishments
accredited by DOT
Low appreciation of
accreditation
Current Initiatives
Owner or manager has to
closely supervise day-to-day
operations
Seminars, training on food
safety being conducted by
HRANO
Accreditation seminars being
conducted by DOT
“Deputization” of local tourism
offices to do documentation of
compliance
Potential Solutions
Organizational development
Continuous Productivity and
Quality Improvement
Exposure to operations of food
chains and franchises/
Benchmarking visits
customized to various types
and size of operations
Enhancement of value of DOT
accreditation both for
consumers and tourism
enterprises through inclusion of
standards/criteria meaningful
and relevant for both parties
and aligned to international
accreditation system.
Effective
promotion
of
accreditation program both to
enterprises and consumers
Streamlining of accreditation
procedures and assistance to
food service establishments in
meeting requirements
It may, however, take some
time to make changes in the
accreditation system since this
would involve actions from the
national government. As such,
the province may want to
explore the implementation of
an industry led quality seal
program.
Weak cooperation and
collaboration among
establishments, which to a
significant extent undermine
capacity and competitiveness
of industry to host big events
and conventions.
Informal cooperation; referrals
Some sporadic actions from
HRANO to promote unity and
networking among the
different establishments
Promote collective marketing
and servicing among the
different players with HRANO
as the starting point.
Strengthen HRANO so as to
enable it to play a more active
role in promoting unity and
cooperation among the
members
17
B. HUMAN RESOURCES
Constraints
Limited specialized culinary
training available in Negros
Occidental
Current Initiatives
Cooking demonstrations
In-house training capability
not sufficient to equip
employees with skills required
to meet market requirements
Senior staff undergo training
from external providers
Potential Solutions
Technical schools and HRM
schools in Negros Occidental
tie-up with Manila and Cebubased culinary training
providers
Conduct of trainors’ training
program (didactic and subject
matter expertise) for senior
staff and owners involved in inhouse training activities as well
as other local providers.
Facilitate tie-up with
restaurant training institutes
with international
accreditation
Encourage food service
establishments with in-house
training programs to share
their “trainors” and programs
at reasonable fees with other
establishments.
Need to improve productivity
Lack of attention to skills and
knowledge upgrading especially
among single unit
establishments and micro
businesses
High costs of specialized
training especially for the
smaller establishments
Multi-skilling via on-the-job
training
Encourage training providers in
Negros Occidental to tap
company-based trainors as
guest lecturers and resource
persons.
Productivity standards
definition – Continuous
Productivity and Quality
Improvement Program
Conduct BDS awareness
campaign elaborating on
benefits, providers, etc
HRANO organizes common
trainings
Promote cost sharing among
establishments
Train key people who can train
the other employees
C. TECHNOLOGY/R AND D
Constraints
Limited use of ICT to increase
efficiency and enhance
services to guests
Current Initiatives
Potential Solutions
Use of computers for encoding,
reservation tracking, and
simple financial system in
bigger establishments
Awareness campaign on the use
of ICT in inbound, outbound,
operations, and marketing
functions.
Perceived high cost of
18
Constraints
information technology
Current Initiatives
Potential Solutions
Stimulate demand by building
pilot projects to demonstrate
the benefits of ICT in
company’s day-to-day
operations
Training/mentoring in the use
of ICT. Facilitate linkages with
Cebu ICT companies
Limited product dev activities;
lack of info to base product
dev activities
Ad hoc and intermittent
product dev activities
Support private sector
providers in the development
of affordable market research
and information services
Enhance capability of local
chefs and food technologists
Poor environmental
compliance/increasing
environmental costs
No support from government
re: recycling.
Some piecemeal initiatives to
recycling, environment friendly
practices
Demonstrate benefits of
working with professional chefs
and food technologists through
pilots.
Promotion of clean and green
practices including recycling
and the use of environmentally
friendly products (e.g.,
biodegradable detergents,
etc.) to both public and private
sectors
Improvement of the ability of
environmental managers or
promoters to speak the
“language of business” to
accelerate the spread and
implementation of responsible
environmental management
practices in SMEs.
Skills training courses should be
based on environment friendly
production technologies
D. INPUTS
Constraints
Increasing cost of supplies
Lack of suppliers in Bacolod
Inconsistent quality of fresh
produce
Sometimes, volume not
sufficient
Current Initiatives
Source from Baguio (lettuce);
Batangas & Cavite (coffee);
GenSan (blue marlin); Roxas
(oysters) & Victoria (scallops)
through suppliers; herbs and
Potential Solutions
Explore possibilities of bulkbuying especially for goods
sourced outside the locality
Establish a comprehensive
resource/suppliers database,
including self-sustaining
capability for regular updating.
19
Constraints
Current Initiatives
spices; specialty needs
Increasing utility costs (power
and water)
Potential Solutions
Explore possibility of suppliers’
accreditation system. To
promote equitable
participation among all
players, program should ensure
that suppliers have access to a
range of business development
services that will enable them
to match the agreed standards
and requirements.
Encourage utility providers to
conduct orientation on
conservation measures
E. MARKET ACCESS/MARKETING
Constraints
Lack of capability and capacity
to design and conduct
marketing campaigns especially
among micro businesses
Lack of market data and info
on restaurant markets in
Negros Occidental
Current Initiatives
Potential Solutions
campaigns
Enhance capability of
marketing/advertising firms in
Negros Occidental to provide
relevant and affordable
services to food service
industry
Customize existing training
modules on marketing to
context of restaurant industry.
Facilitate tie-ups between
local training providers and
experts on restaurant
marketing
Develop self-sustaining local
capability to conduct regular
customer and market surveys
and the consequent packaging
and dissemination of results to
enterprises.
Interventions should be aimed
towards the development of an
efficient and cost-effective
means of:
•
Locating/identifying
information sources and
needed information
•
Translating and applying
these information
materials to the context of
the enterprises
20
Constraints
Current Initiatives
•
Potential Solutions
Packaging and
disseminating these
information to SMEs
21
Annex B
TRAVEL AGENCIES AND TOUR OPERATORS
1
Table of Contents
3
C. Markets
3
6
6
8
11
B. Human Resources
C. Technology/R and D
D. Inputs
12
12
13
14
14
E.
15
2
Section 1
INDUSTRY STRUCTURE
•
•
The tourism industry essentially consists of two parts:
-
The first part includes transportation, accommodation, and attractions. The producers of
these services like air, sea, and railroad carriers, hotels and other forms of tourist
accommodation, and the various forms of attractions like beach resorts, parks and natural
attractions are called the service suppliers.
-
The second part includes the services sector composed of travel agencies and tour
operators, which is used to deliver these products to the consumer. These distribution
channels of the tourism industry are very important, because the products of the tourism
industry are invisible services, incapable of feel, smell, touch and inspection at the point of
sale.
There are basically two main channels of distribution in the travel and leisure industry:
-
The first way of distribution is direct to the tourist via direct marketing, phone or fax, Web
and advertising in different kinds of media.
-
The second, more common way is selling the products and services through intermediaries
to the customers.
An important difference between the travel industry and other industries is the status of the
retailer (e.g. the travel agents). Travel retailers do not buy goods and services, and they do not
mark up a price. They get paid a commission or a percentage of the selling price by the
wholesaler or the supplier.
•
The following are the main players in the traditional distribution chain of the travel and tourism
products:
Consumer
Non-existent in
Negros Occidental
Travel
Agent
CRS/GDS
DMOs/
Planners
Tour
Operator
Structure of the Distribution Flow
in the Tourism Industry (Adapted
from Werthner 1999)
Supplier
3
•
Suppliers
Consumers
Destination Marketing Organizations/Planners/Administrators
Tour Operators
Travel Agents
Reservation Systems
Travel agencies advise and sell a range of holidays and other tourism offerings including airline
tickets and visa and passport assistance. Agents are the retailers in the chain, selling travel
services or packaged trips to the customers. They act as intermediaries between the traveler
and the supplier.
On the other hand, tour operators traditionally have the wholesaling and packaging role. They
bring together the essential elements of a holiday such as transport, accommodations,
entertainment events and visits to attractions and sell these to travel agents in bulk. Tourist
guides and tourist information services play a supporting role to the tourism product, offering
information and services usually at the tourism destination.
•
•
However, in the national and international scene, the traditional delineation is no longer that
clear as tour operators are increasingly selling their packages direct to customers, cutting out
the intermediary. In Negros Occidental, some companies act both as travel agencies and tour
operators at the same time. In many cases also, hotels and airlines sell direct to customers,
bypassing travel intermediaries altogether. Likewise, in the worldwide market, the impact of
new technologies on distribution and marketing channels means that, for the customers, the
traditional roles are blurred.
According to the Negros Occidental Tourism Center, there are 38 licensed ticketing/travel
agencies, 5 tour operators and 5 operating both as travel agency and tour operator. Of the 48
agencies, one (1) has stopped operations recently.
Travel agencies and tour operators in Negros Occidental are mostly micro, individually owned
enterprises, established with minimal start-up capital used to purchase computer and basic
furniture, rent a space and buy the initial tickets. These are small offices managed by an
average of 2 to 3 staff including the owner/manager. The agencies are equipped with
telephone, facsimile machine and computer.
•
Internet connection is vital to the operations of travel agencies. Almost all travel agencies use
the Amadeus computer reservation system software. These customer reservation systems (CRSs)
allow airlines and other users to monitor, manage, and control their capacity (yield
management) and the clients. Working with CRS and Global Distribution System (GDS) provided
airlines and travel agencies with competitive advantage in the field of information handling
within the tourism industry.
•
Airlines, general sales agents and IATA are the sources of the tickets for the ticketing service.
The discount on the tickets depends largely on the volume of purchase (block booking) which
agencies in Negros Occidental cannot afford. In most cases, these local travel and tour
agencies have linkages with Manila based similar establishments especially for outbound
tourism. No contracts bind the transactions rather the relationship is based on trust.
•
Though relationships are not fully developed in the sense that local travel and tour agencies do
not strongly promote the services of hotels/resorts and vice versa. Relationships between local
travel and tour agencies and Negros based hotels involve primarily the former making the
reservations in behalf of clients and providing ticketing services to the latter’s clients. These
transactions though are not governed by formal contracts. The travel agencies work more with
the bigger accommodation establishments rather than the pension houses, apartels and inns.
•
Tour operators have linkage with Rent –A-Car owners. There is no linkage, however, developed
with bus operators to service big group tours. Tour operators indicated that it is possible to
4
contract the services of bus companies but they find the rates quite high. Current trend is to
hire smaller vehicles for tours but this also entails fielding more guides.
•
Out of the 10 agencies engaged in tour operation, only three are accredited by DOT. There are
also more than 30 but less than 50 tour guides but there is only one (1) licensed/accredited
tour guide.
•
Although DOT accreditation is an additional credential, individuals/operators involved in tour
operation find the requirements stringent. A tour guide, for example, needs to undergo the
seminar for a fee conducted by the DOT, present a certificate of good health from a licensed
government physician, and secure a clearance from the National Bureau of Investigation.
•
Mountain/cave guides need to meet the following additional requirements: a) training on basic
life support from the Philippine National Red Cross; and b) certification issued by the Mountain
Guides Association of the Philippines, Inc./ Philippine Cave Guides Association, Inc. or any
other DOT recognized mountaineering/caving organization that the applicant has the necessary
mountaineering/caving skills, equipment and experience in guiding. On top of these are the
accomplishment of application forms and filing the same at the DOT regional office (Iloilo) or in
Manila.
•
Aside from the general accreditation requirements for all applicants, tour operators must show:
-
Proof of P500,000 working capital
Proof of inbound or local tour operations (official receipts of bookings from DOT accredited
hotels/resorts)
Tour packages with tariff rates
Copy of Surety Bond submitted to Local Government Unit (LGU)
General Manager shall have at least 3 years managerial experience in tour operations
Bio-Data of two permanent staff who shall have at least 2 years experience in tour
operations .
Other accreditation requirements include the following:
office space should be located in a commercial area, must be easily identifiable and shall be
used exclusively for the tour operation business
- An affidavit executed by the general manager of the main office acknowledging the
existence of the branch office, assuming full responsibility of its operations and certifying
that it is not managed nor operated by other persons/ entities other than the duly
accredited employees and officers
-
The only benefit that accrues to an accredited tour operator is endorsement to NAIA and other
international airports for issuance of access passes to qualified personnel. As such, many of the
tour operators are not that keen to get an accreditation given all the requirements.
•
The National Association of Independent Travel Agencies (NAITAS)-Bacolod Chapter has 14
travel and tour agency members in Bacolod City. According to its website, NAITAS was
organized at the national level in response to the need for a nationwide network of non-IATA
travel agencies.
•
NATTO (Negros Association of Travel & Tours Organization), which is envisioned to help
promote inbound tourism, has no staff to undertake the necessary tasks and police its ranks. A
member thinks that the cut-throat competition can be avoided if the association members
define the mark-ups and make this binding by signing a memorandum of understanding or some
sort of a business ethics.
5
•
Most of the travel agencies provide local and international ticketing service for outbound
tourist and earn from commissions and service fees. This service involves making the necessary
seat reservation in a selected aircraft based on the date and flight schedule preference of the
client, confirming the ticket and releasing this to the client upon receipt of payment. There are
agencies which provide this service only.
•
Passport processing facilitation is another popular service provided by travel agencies also for
outbound tourists. This involves providing the client with information on the various
requirements, checking and compilation of requirements and documents, filing of the
application, and follow-up until the passport is released. Visa assistance could involve visa
processing, extension or renewal. Income is in the form of processing fee.
•
Hotel booking or reservations with hotels or resorts entails ensuring that clients have the
necessary accommodations of their choice in their respective areas of destination. Income
comes in the form of pre-agreed discount or commission. According to FGD participants, the
discount offered by resorts is low compared to other similar establishments in the region.
Likewise, travel agencies complain that hotels do not accommodate their booking requests
during peak seasons like Maskara and Panaad festivals and/or when there are conventions.
•
Tour operators handle arrangements for transportation, destinations, and food. In many cases,
they also take care of the logistics during the tour itself. They earn commission from
restaurants, although there are cases where restaurants complain because tour operators ask
for discounts when they make the reservations and additionally ask for commission on the day
of transactions. Similarly, tour operators get discounted price from transport operators.
•
Available Negros Occidental tour packages are very much limited. To date, the Negros
Occidental Tourism Center recommends 6 tours: Bacolod City Tour, Negros Sugar Tour, War
Memorial Tour, Victoria Milling Company Tour, Steam Engine Tour, Transportation Tour and
Golf Tour. The ANP showroom is a popular stop over for shopping.
•
International and domestic (outside Negros Occidental) tour packages for outbound tourists
include activities/destinations, accommodations, food service, and transportation. Clients can
choose from a wide range of tour packages depending on their interests and budget.
C. MARKETS
•
Only 4 to 5 of the travel and tour agencies are engaged in inbound tourism. One tour operator
is the conduit of PAL for its Negros Occidental inbound tourists. Majority focused on outbound
tourism and finds this to be more lucrative than inbound tourism. According to key informants,
incentives offered by Negros hotels and other similar establishments are low compared to
establishments in other areas and not even sufficient to cover communication costs. It is
claimed that only one Negros resort offers a 30% commission.
Parallel to this, there seem to be more outbound tourists than inbound tourists. Both travel
agencies and tour operators believe that there is no cohesive and unified marketing plan to
bring in inbound tourists. There is also a lack of promotional materials on tourist destinations.
•
Cut throat competition for outbound tourism exists among the establishments.
FGD
participants believe that there are too many travel agencies although everybody gets the same
rates or commission. Hotels give good discounts except during events such as the Masskara and
Panaad festivals and conventions.
•
Travelers from the province or outbound tourists comprise majority of the clientele of travel
agencies especially for the ticketing service. Clients include overseas Filipino workers. They
6
also have a few clients coming from other regions and foreigners.
no change in the demand during the last 12 months.
Respondents said there was
•
Services for passporting and visa assistance cater to the needs of the local populace. Visa
assistance service is also extended to foreign tourists who happen to be in the area when the
need arises.
•
Clients for local and domestic tour packages like the popular ‘lakbay aral’ are students, local
government units and local tourists. These are either inbound or outbound tourists.
•
Local tourists, who are most often independent travelers, avail of the international tour
packages provided by travel agencies. The demand for domestic and foreign tour packages is
said to be increasing during the last 2 years.
•
Hotel and resort reservations and transportation arrangement are part of the packaged tours
for inbound travelers. However, only a few inbound tourists avail of these packaged tours from
the local travel agencies. The very few who avail of this service are individual travelers.
Hotel and resort reservations form part also of outbound domestic and international tour
packages.
•
The relationship of travel and tour agencies with hotels and resorts is in making reservations for
their clients. The hotels and resorts also refer their guests to the travel agencies for ticketing
and visa assistance. Referral made by hotels and resorts for their guests is an added service.
They do not promote each other even just simply having information materials of the other in
their office.
•
Marketing by travel agencies is done through direct marketing, tri-media advertisements,
brochures/flyers, webpage of intermediaries, participation in trade fairs and travel marts,
networking especially with corporate clients, promo/discounts, referrals and word of mouth.
Referral by former clients is more effective in generating clients from the local populace and
internet for domestic and foreign clients. Brochures/flyers are the least effective because of
limited venues where these can be displayed and disseminated. According to respondents,
travel agencies are not welcome to leave these information materials at hotel and bank
counters. Tour operators do direct marketing especially in schools for the lakbay aral and
conduct familiarization tours to show the actual attractions/destinations. They also participate
in trade fairs and make use of the other marketing tools used by travel agents.
•
Collective marketing is done only during participation in trade fairs and travel marts.
Participation in these activities is usually spearheaded/coordinated by the provincial tourism
center and not by the travel and tour organization. The association though was organized with
the task to promote inbound tourism.
•
It was claimed that more and more clients prefer on-line payment but establishments are
constrained to subscribe to it because of the investment requirement on the software and the
deposit required by the banks.
7
Section 2
VALUE CHAIN
FIRM
INFRASTRUCTURE
Reservations/booking systems/tracking
Operation procedures (usually not written but handed down orally to employees)
HUMAN RESOURCE
MANAGEMENT
Recruitment: referral – posting
Training: on-the-job training; airline provides updates; training on use of CRS software (Amadeus)
Databases of schedules, airfares, hotels, etc.
CRS – Amadeus
Use of internet for marketing but usually limited to webpages/cannot accept reservations in their own sites
Computerized booking
Computerized financial systems (for the bigger companies)
Communication facilities
No online payment facilities
Lowest price – good terms – good quality (Buy from wholesalers in Manila- Block booking)
Has linkages with airlines (PAL), tour operators (mostly for outbound travel)
TECHNOLOGY
DEVELOPMENT/
R and D
PROCUREMENT
MAIN ACTIVITIES
INBOUND LOGISTICS
OPERATIONS
Procure tickets from
airlines
Itinerary preparation /
presentation to clients
Get and confirm
reservation from other
tourism suppliers
(resorts, hotels)
Ticket reservation and purchase
Hotel and transport
arrangements
OUTBOUND
By mail and/or inperson delivery of
tickets,
reservation
coupons /
vouchers,
passport, and
other documents
MARKETING
Direct marketing (Person-to-Person Sales
Calls)
AFTER SALES
SERVICE
Follow-up calls
Brochures/flyers (not that effective)Online
marketing via other intermediaries
Visa and passport assistance
Promo/discounts
Arrange reservations for special
interest activities/tours
Networking with corporate clients
Participation in trade fairs
8
•
Tourism is an information intensive industry. Information is one of the most important
quality parameters to generate action from the potential customers. When a tourist
decides to go on a trip and books and offer, the product does not exist physically. What
the customer is buying is the right to the product, a hotel room and/or an airline flight
seat. Travel is information at the point of sale. Usually the decision process depends
only on the given information. Information technology can assist travel intermediaries
in reaching out more customers cost effectively.
•
Travel agents must offer specialist knowledge in order to offer added value for
customers to keep them purchasing through their networks. The travel agent is
expected to supply information, offer travel advice, sell ancillary services, collect
payment, and administer the holiday and travel bookings. Reliable service and
customer contact is a must to generate trust and repeat bookings.
Below are the IT-based enablers for each link in the travel value chain based on the
Sabre operations and from which Negros Occidental travel agencies can adapt to their
own operations.
Travel Value Chain
Enablers: Sabre Experience
Enablers:
•
•
•
•
Traveler profile
Demand
management
Point of sale
campaign
management
Point of sale telescripting
Enablers:
•
•
•
•
Fast delivery of
itinerary
Integrated banner
advertising
Email database
marketing
Response
management
including quick
confirmations with
other suppliers in
the package
Enablers:
•
•
•
•
Traveler location
detection
Merchant proximity
Wireless access and
notification
Targeted
advertising in
public spaces
9
•
The following are the activities involved in the development, management and
administration of tour packages1:
Phase
Research
Capacity Planning
Financial Evaluation
Marketing
Administration
Tour Management
Activity
Review market performance
Forecast market trends
Select and compare existing and new destinations
Determine market strategy
Tour specification
Negotiate with and contract suppliers
Determine exchange rates – current and trend
Estimate selling prices
Finalize tour prices
Brochure/communication planning and production
Promo collateral distribution and launch
Multi-media advertising and sales promotion
Market launch
Establish reservation system
Receive and process reservation
Tour accounting and documentation
Customer care at destination
Customer correspondence
Payment of suppliers
Legend
Skills and know-how need to be enhanced/upgraded
1
Les Lumsdon, Tourism Marketing
10
Section 3
HUMAN RESOURCES
•
With an average of two to 3 staff, multi-skilling is a standard practice. Likewise, there is no
clear delineation between staff involved in travel agency operations and those in-charge of tour
operations. There are 5 establishments that are involved in both travel and tour operations.
•
With the nature of the job in travel agencies, basic knowledge in computer (word and excel) is
required of every applicant who wants to work in these establishments. Because the staff will
be dealing with people of various nationalities through various modes of communication,
he/she must be able to read, write and speak the English language and must be able to pay
attention to details. An employee must handle clients with ease, provide fast service, must be
friendly and accommodating.
•
Basic skills are augmented by on-the-job training provided by employers/owners. Employees
though are seldom sent to trainings to hone their skills. Airline sponsored trainings are
provided to give updates on the airline industry products. An owner, for example, has
participated in a training on the operation/use of the online reservation software (Amadeus)
and was the one who trained his staff. There is no continuous capability building or
comprehensive training packages for employees to be able to respond/deliver their tasks.
•
There seem to be a fast staff turnover due to limited opportunities for advancement given the
size of the firm. Managers are left with no option but to let go and recruit and train new staff.
•
Employees are expected to be able to package a holiday which best suits the interests of the
client. To do this, one must be knowledgeable of all the basic elements including the cost,
location, description and understand the culture of the client to be able to adjust and fit the
offer. To do this, one must have packaging skills to be able put together the best product offer
for a particular client/market.
•
DOT accreditation is not a requirement but can be an added credential for the establishment.
Accreditation of an establishment does not translate to automatic accreditation of its tour
guides and drivers. For tour guides to be accredited by DOT, they have to undergo several
trainings in a special school in Manila. DOT does not provide the required trainings. Managers
are also required to undergo training in tour operations but many of those currently occupying
this position have not complied with this requirement. In many instances, both managers and
owners rely on experience. Majority of the managers are also the owners.
11
Section 4
Constraints
Current Initiatives
operations
Potential Solutions
Quality Improvement
Exposure to operations of
travel agency and tour
operator chains/ Benchmarking
visits
Strategic planning
No updated business plan;
limited service and client
portfolio
Market research
Business planning
accredited by DOT
conducted by DOT
Low appreciation of
accreditation
compliance
Effective promotion of
establishments in meeting
requirements
program.
collaboration among travel
agencies and tour operators,
which to a significant extent
Irregular meetings; referrals
Strengthen travel agents and
tour operators associations
Participation in the
12
Constraints
undermine capacity and
competitiveness of industry to
host big events and
conventions.
Current Initiatives
Potential Solutions
organization of the Negros
Convention and Events Bureau
(private-sector led initiative)
B. HUMAN RESOURCES
Constraints
Need for skills upgrading in
order for subsector to
effectively provide distribution
and marketing services to
tourism businesses:
-
Tourism core
Tour and travel agency
operations
Tour Guiding
Tour planning and
marketing
Retail and wholesale travel
events
Attraction and visitor
information (from design to
effective dissemination)
Current Initiatives
Potential Solutions
Staff sometimes sent to airline
product updates seminars
Facilitate tie-up between local
training institutes and
accredited organizations
elsewhere offering training for
travel agencies and tour
operators
Training on use of reservation
software
Intermittent training organized
by tourism agencies and
organizations in Negros
Occidental
On-the-job training
Training sponsored by suppliers
Upgrade capability of local
advertising and promotion
agencies, graphics designers,
and other related professions
Human resource management
provider to assist companies in
finding innovative contract and
benefit schemes to employees,
team building, OD, etc
Innovative compensation and
contract schemes
High incidence of piracy
High cost of training for tour
guides
Upgrade and update existing
competency standards to be at
par with international
occupational standards
accredited national/
international providers and
local providers
High attribution rate
particularly among lower rank
employees
Lack of professional/
accredited tour guides
Capability building of local
training institutes Benchmarking missions to
progressive travel agencies and
tour operators
Use of tourism officers
Code of ethics among travel
agencies and tour operators via
association
Development of local
capability to conduct the
following:
- accreditation (from
application to examination)
- conduct of relevant
training courses by
accredited local trainors
13
Constraints
Limited capability of training
providers
Current Initiatives
9 training providers offering
short-term tourism courses
(TESDA)
Potential Solutions
Capability of existing trainors
and support in the
development of training
courses aligned with
international standards
local providers and established
national/international
accredited training
organizations (e.g., franchise
arrangements, etc.)
Constraints
services to guests
Current Initiatives
dev activities
Potential Solutions
functions.
operations
Cebu ICT companies
tourism product development
designers and consultants
working with professional
tourism product development
consultants through pilots.
D. INPUTS
Constraints
Perceived high rates charged
by companies with big buses
Current Initiatives
Vans are used for local tours
but entails more tour guides
An association member
acquired a vehicle which is
made available to other
Potential Solutions
Advocacy
Encourage investment from
private sector
14
Constraints
Lack of access to financial
services to augment existing
capital (for wholesale purchase
of tickets, marketing
campaigns, etc.)
Micro travel agencies not able
to avail of the same discount
rates, privileges, and product
portfolio given by airlines to
big companies;
Current Initiatives
members at reasonable price
Government sectors have
buses
Potential Solutions
Linkage with providers that can
assist companies to access
micro finance services
Jetsetter and commuter passes
Explore collective purchase by
micro businesses via
association
Constraints
Very few inbound tourist avail
of services of local travel
agencies
Current Initiatives
Potential Solutions
Establishment of linkages with
Manila, Cebu, and Boracay
travel intermediaries in
development of ‘off-season
packages and promotion
campaigns’. Investigate
inclusion of Negros Occ in Cebu
and Boracay packages.
Limited marketing efforts;
no unified marketing plan and
regular/continuous campaign
Intermittent marketing
campaigns; individual company
efforts;
Unified marketing campaign
anchored on specific product
differentiation factors that the
province can sustain as a
marketing proposal
Participation in travel marts,
trade fairs
Organization of Negros Visitors
and Convention Bureau
Incomplete and unconsolidated
market data and information
Inadequate dissemination of
same
Data coming from local and
provincial tourism authorities
Preparation of a unified
marketing plan and campaign
enterprises.
means of:
•
needed information
•
these information
the enterprises
•
Packaging and
15
Constraints
Current Initiatives
Exclusion of Negros Occidental
in the 12 DOT tourism priority
areas
Need improvement in product
offer
Promotion in local and foreign
markets done by LGUs
Lack of brand awareness
outside Negros
Have a brand “Sugar and More”
10 years old
Limited promo-materials
available in major source
markets and within Negros
Occidental
Individual efforts to improve
products
Web ads; DOT promotion
campaign
Potential Solutions
disseminating these
information to SMEs
Consolidate efforts, make good
products available, meet DOT
standards and lobby
Development of product and
market development plan.
Review relevance of current
brand/marketing slogan.
Promote collaboration among
different players to come up
with integrated packages
aligned to market trends.
Develop local capability to
deliver product and market
development services.
Work with providers in the
development of multi-pronged
promotion strategy such as:
•
Pictorial references and
souvenirs to reinforce
image of holiday
experience
•
‘Visualization’ of offer in
brochures, CDs and videos –
visual displays of the real
thing
•
Linkages with international
airlines/tour operators;
invitation of tourism
journalists for inclusion in
journals, magazines, etc.
Availability and
dissemination of
information and promo
materials at strategic
locations
Promote price standardization
of packages via association
•
Lack of standardized pricing
16
Annex C
ACCOMMODATION SERVICES
1
Table of Contents
3
3
5
C. Markets
A. Employment
B. Competencies and Training
6
8
10
10
10
12
A.
B.
C.
D.
E.
12
12
14
15
15
Management/Organization
Human Resources
Technology/R and D
Inputs
2
Section 1
INDUSTRY STRUCTURE
1. Accommodation Establishments
•
Of the 86 establishments listed in the records of the Negros Occidental Tourism Center, 48% are
located in Bacolod City, the capital of Negros Occidental.
•
Based on DOT’s classification, there are 3 first class hotels and 7 standard class hotels. There is
no de luxe class hotel yet in Negros Occidental. The remaining 76 establishments consist of
economy class hotels, tourist inns, apartels, and pension houses. The number of establishments
per category, however, cannot be established as there are no disaggregated data available.
•
The first class and standard class hotels are generally owned by large Filipino corporations.
Some have been in the business for more than 10 years with the oldest hotel established in
1974. These hotels have more than 50 rooms and employ more than 80 people each. To date,
international hotel chains with operations in the Philippines have not ventured into Negros
Occidental.
•
The smaller accommodation establishments are usually organized and registered as single
proprietorship, family owned and managed by the proprietor. The establishments have on the
average 10 rooms and cater to walk-in clients who have known the establishments through
referrals.
•
To date, only 20 of the 86 establishments have the DOT accreditation. Accreditation with DOT
is voluntary. To apply, an establishment has to submit a copy of the mayor’s permit/municipal
license, business name certificate for single proprietorship or the articles of
incorporation/partnership and bylaws for corporation or partnership; latest income tax return
and audited financial statements and contract of lease or certificate of title. Other documents
include a duly accomplished application form, list of officials and employees, valid visa and
labor permit for foreign nationals and a board resolution authorizing a bonafide employee to
file/transact business with the DOT.
Additional requirements to be submitted by
accommodation establishments are: a) Current room rates with food & beverage prices/menu;
b) comprehensive general liability insurance; and, c) fire safety inspection certificate.
Application maybe filed with the regional office (Iloilo) or at the accreditation division in
Manila.
Accreditation can provide establishments with additional credentials. Many of the businesses
though do not apply because of compliance problem, particularly implementation of suggested
improvements based on the findings of the inspection.
Full details of accreditation
requirements, procedures and fees are presented in Annex H and minimum standards to be met
in Annex I.
Non-fiscal incentives are accorded to all DOT accredited establishments such as: a) membership
to Philippine Convention and Visitors Corporation (PCVC) and inclusion in its marketing and
promotional programs; issuance of DOT identification cards to bonafide employees; b)
technical/security/ facilitation support or assistance; and, c) endorsement to embassies and
travel trade associations for utilization of establishment's facilities and services. Additional
incentives to accommodation establishments are: a) endorsement to the Ninoy Aquino
International Airport (NAIA) and other international airport for issuance of access passes to
qualified personnel; b) endorsement to the Commission on Elections (COMELEC) for exemption
from liquor ban during election related events; and c) endorsement to the Department of
Agriculture (DA) for importation of meat and meat products.
3
•
Interaction among owners of accommodation establishments is facilitated via the Hotel and
Restaurant Association of Negros Occidental (HRANO). To date, the organization does not have
a physical base and staff.
Recently, the association has provided seminars on quality control, proper food safety and
cooking demonstrations. These trainings are provided for free with trainors coming from the
association or hired from Manila. The high cost of getting trainors makes it difficult for the
association to organize trainings regularly.
In addition to the provision of trainings, it serves as a venue for information sharing about
suppliers, upcoming trainings, seminars and networking. Marketing activities is acknowledged
to be very minimal; hence, the association recognizes the importance of a marketing arm to
provide the needed marketing for the industry.
Members expect HRANO to play an active role in tourism promotion. At present, this is carried
out through activities implemented in tandem and in coordination with the provincial tourism
center. The association has yet to define specific action plans on how to effectively fulfill its
mission.
2. Relations with Input Suppliers
•
In the accommodation business, the environment in which the services are delivered is as
important as the provision of services. Both functionality and aesthetics of the physical
infrastructure contribute to making the establishment attractive or not to the customers. The
interior and exterior aesthetics of the building provide tangible cues as to the level of services
and the nature of establishment. This underlying principle of simultaneous provision and
consumption makes suppliers of the goods and services related to the exterior and interior of
the hotel including construction companies to be among the important players in the
accommodation subsector.
Set-up and maintenance of the physical infrastructure and facilities are among the major
expense accounts (and, oftentimes, the highest) of an accommodation business. Some of the
hotel owners prefer to source out housewares, linens, and decors from Manila where prices are
lower (especially for imported items) and the availability of a wider range of choices.
•
Accommodation establishments particularly the economy to first class hotels work with design
and architectural consultants to ensure that design standards bring to the location the desired
atmosphere. It is also these hotel categories who are more likely to invest in regular
maintenance and continuous upgrading of facilities.
•
For soap and other toiletries, the bigger accommodation establishments purchase by bulk and
repackage these using their own packaging.
•
Raw materials for food are sourced locally, from Cebu and Manila. Local suppliers of these
products (fish and vegetables) have been established and maintained informally and these
suppliers are familiar with the quality requirements of the establishment.
Suppliers of food items from Cebu or Manila ship the materials either by air or water,
depending on the shelf life of the items. Perishable goods are transported by air.
•
Other players are those providing maintenance and security and accounting if these services are
outsourced; and water, power and communications service providers.
4
3. Relations with Other Tourism Establishments
•
Whether accredited or not, some of the bigger hotels have established relations with travel and
tour operators based in Manila who refer their inbound clients for their accommodation needs
and are paid per transaction. Locally based travel and tour operators also deal with hotels for
the accommodation needs of their inbound clients and the hotels in return refer their guests
who need ticketing services and visa assistance to the travel and tour agencies. One can hardly
find though tour information of tour operators in the accommodation establishments.
The relationship of local travel and tour operators with hotels suffer though during peak months,
according to FGD participants, when hotel occupancy rates are high. Reservations requested by
local travel agencies and tour operators are not being considered. This situation puts the local
travel and tour agencies at stake. The travel and tour operators however, cannot complain
against the hotel management because the relationship is informal. This problem arises
especially during Maskara and Panaad festivals and sporting events.
•
Among the 3 hotels interviewed, one claimed to have linkage with an airline. Majority of the
FGD participants though indicated that they have good linkages with travel local writers and
photo journalists. There is no information however, to which newspapers/magazines these
writers feed their writings and the frequency.
•
Relationship between tourist inns, apartels and pension houses with marketing intermediaries
like travel agencies and tour operators is weak. These smaller establishments are not also
known by corporate clients which is the main market of the hotels in the province.
•
The range of services provided by an accommodation establishment is one of the basis for its
classification. First class hotels, for example, must have at least one (1) suite room per 40
guest rooms; provide 24-hour hot and cold bath, room and porter services; and radio and
television set in the rooms. Furniture and linens are also of high quality compared to standard
and economy class hotels. Recreational facilities like swimming pool and at least either a
tennis court, golf or gym must be available within the vicinity. It must also have special rooms
for conferences or banquets. Standards per hotel classification are detailed in EO 120 which is
attached as Annex C.
•
The 3 respondent hotels (2 first class and 1 standard) differentiate their establishments from
the smaller ones by the wide range of services that they offer such as: accommodation and
food service; function rooms for meetings, conferences and other events; business center and
rooms which provide internet access, photocopying, fax, and telephone services; swimming
pool; laundry; airport transfer, transport or vehicle hire; safety deposit box and foreign
currency exchange.
•
Economy class hotels, apartels, tourist inns and pension houses offer limited services. Basic
service is accommodation and bath although some provide breakfast.
These do not have
conference rooms, bathroom maybe common and food service not available. The least these
establishments can offer is a bed and common bath in a non-airconditioned room. In apartels
for example, the guest can do his/her own cooking. Furniture is minimal and of lower quality.
Guest rooms are not necessarily airconditioned. Details of the standards are found in Annex I.
•
There exists though a strong drive by owners and management to surpass the minimum
requirements per accommodation establishment classification in line with their objective of
making Bacolod a convention center outside Metro Manila.
•
Below is the comparative room rate of first class, standard hotels and other accommodation
establishments.
5
Hotel Category
First Class
Standard Class
Pension house, tourist
inns, apartel
Type of Room
Deluxe and super deluxe
Budget saver, standard,
executive, deluxe
Aircon and non-aircon
Price Range (in US$)
50.00 – 100.00
10.00 – 29.00
3.00 – 13.00
As indicated in the table above, there is a big difference in room rates between first class
hotels and the pension houses and similar establishments. Pension houses, tourist inns and
apartels, which provide basic amenities like room, bed and at least common toilet and bath,
are priced between Php150/night to PhP700 a night, the lowest of which is for a bed in a nonairconditioned room and the use of a common bath. Room rates of standard hotels and first
class hotels range from US$ 26 to US$ 100 per night depending on the room classification. The
availability of a wide range of accommodation facilities makes it affordable for different
income brackets to spend their holidays in Negros Occidental.
C. MARKETS
•
90-95% of the clientele consists of locals. Inbound foreign tourists comprise only 5 to 10% of the
clientele.
•
Majority of the local inbound tourists are participants of conventions and
from the corporate world. Negros’ share in the convention market
(meetings, incentives, conferences, and exhibition)1 is increasing but at
share in the national convention market is seen by hotels as the most
increasing occupancy rate.
•
Focused group discussion participants estimated the average annual occupancy rate of hotels to
be between 40%-50% which swells up to 150% (triple sharing) on peak seasons. Peak months are
from January to June and September to November while lean months are July, August and
December. MICE activities such as conventions and events like the Panaad and Maskara
festivals and athletic/sports push up occupancy rates.
similar events and are
or the MICE market
a slow pace. A bigger
important strategy in
Average occupancy rate of Negros Occidental is lower compared to similar establishments in
Metro Manila, where the average occupancy rate for the period January to July 2004 was at 68%
posting a 21% increase over the same period in 2003.
•
In the world tourism market, the MICE market is the fastest growing segment, which accounted
for $90 billion in 1997 and growing by 8 to 10 percent per year. The top 10 reasons for hosting
a meeting conference are: education, training, decision making, information exchange,
research, sales, strategic planning, team building, product launch and problem solving. Facility
availability, reputation for high quality service, travel distance for attendees, promotional
qualities, image of venue, price, value for money, weather, activities offered and accessibility
are the top 10 factors influencing the selection of venue.
•
Although the main market of hotels in Bacolod is the MICE, an establishment does not have the
capacity to host a really big event alone. This does not mean, however, that additional
accommodation facilities have to be developed but rather there is a need to foster higher
collaboration among players to optimize existing facilities. The venue of a big event can be in
1
A meeting is an event where people, either from a single company or organization or from a broader
spectrum, come together to exchange information: cocktail functions, product launches, lunch, dinner and
breakfast meetings including occasions like weddings constitute a meeting per WTO definition. Incentives
include travel to a foreign country or other parts of the same country as part of motivational scheme to
reward or increase employee effort. Conferences is said to be a multi day event having at least 100 delegates
attending the event to exchange information. Exhibitions is the bringing together of people for the purpose of
viewing products and/or services.
6
one of the establishments with the most spacious conference hall; accommodations and food
can be co-hosted. It would be necessary though to provide good transport service to shuttle
participants from venue to accommodation and vice versa.
•
Conference halls are also used by local residents during banquets for occasions like birthdays,
baptisms and weddings. Other services like the swimming pools are also availed by the local
residents. Other hotel services such as internet access, photocopying, telephone and others
are patronized mainly by regional or foreign guests. This does not mean that the local
populace does not make use of these services but rather they avail these in other
establishments purposely set up for such.
•
Visitors/tourists who avail the services of the pension houses, apartels and tourists inns are
mostly walk-in clients who learned about the establishment through referral. The pension
houses, apartels, and tourist inns cater to a market segment different to that of the hotels.
•
Marketing tools of accommodation establishments are presented in the table below:
Hotels
Face to face marketing: account executives
visit prospective clients including events
organizers, cocktails for managers of big
corporations
Direct mail: proposals via mail
Paid advertisements in newspapers, radio
and television
Brochures/flyers printed and distributed
Webpage of intermediaries like travel
agencies
Tourist Inns, Pension Houses, Motels
Walk-in/Word of mouth
Signages
Referrals
Discounts
Walk-in/word of mouth
referrals
Signages
•
Most of the hotels maintain their relations with big companies and aggressively market their
services directly through their account executives usually through regular visits. One hotel
respondent sponsors cocktail parties for managers of big companies. Tourist inns, pension
houses and apartels rely mostly on referrals made by past clients and acquaintances to sell
their services.
7
Section 2
VALUE CHAIN
FIRM
INFRASTRUCTURE
Financial Management – Guest Account/Room Management
Customer Relations (needs improvement in many of the establishments)
Inventory control and tracking, Just-in-time delivery
Reservations/booking systems/tracking (manual in majority of the establishments)
Waste disposal and management (only in very few establishments)
Care and maintenance schedules and procedures (the bigger establishments)
HUMAN RESOURCE
MANAGEMENT
Training: on-the-job training; practicum for students; senior employees training new entrants
Accommodation businesses hire extra part-time employees to meet changes in demand arising from seasonal fluctuations. There
are certain inefficiencies arising from the use of seasonal labour, transaction costs stemming from more frequent hiring and
training and from other administrative matters
TECHNOLOGY
DEVELOPMENT
In the bigger establishments, technology is used to enhance guest experience (e.g., internet access in rooms) and improve
operations efficiency
Use of internet for marketing – webpage; on-line advertisement via travel agencies (for bigger establishments only)
Computerized booking and reservations/financial system for bigger establishments
Communication facilities – business centers; rooms – mainly telephone
PROCUREMENT
Lowest price – good terms – good quality
Has regular suppliers
For bigger establishments, procurement governed by contracts, purchase orders, etc.
MAIN ACTIVITIES
INBOUND LOGISTICS
Receipt, inventory,
distribution of goods and
supplies
OPERATIONS
Accommodation -check-in
till check out: room
preparation and
OUTBOUND
Confirmation of reservation
via email, phone, in person--directly or indirect
MARKETING
Direct Marketing – internal
and external/ offsite and
onsite
AFTER SALES SERVICE
Follow-up call/ feedback
gathering done informally
most of the time
8
Tracking down of occupancy
and booking vis-à-vis
assignments
maintenance, various
services to guests (laundry,
food, calls, etc.)
Conferences – preparation
to cleaning up
Facilities and premises
maintenance and security
through intermediaries
Tri-media ads; online
marketing via
intermediaries (for bigger
establishments)
Promo/discounts
Birthday cake or other small
gifts to preferred guests/
gift certificates
Networking with corporate
clients
Tender/bidding/ proposals
9
Section 3
HUMAN RESOURCES
A. EMPLOYMENT
•
Hotels have the following main departments: operations, front office, housekeeping, food and
beverages, accounting, engineering/maintenance, sales and security. The hotel workforce can
be split into core and ancillary workers. Core workers have direct dealings with the provision of
accommodation, food, and drink. Ancillary occupations support this core work.
•
Seasonal fluctuations demand flexible work patterns, often with a high proportion of part-time
and casual workers. Average number of employees in standard and first class hotels is
estimated from 30 people during lean months to 112 during peak months based on the standard
employment rate of 1.5 person/day, 50 average minimum number of rooms per establishment
and 40% to 150% occupancy rate,.
One of the hotels indicated that number of employees range from 150 to 200 depending on the
season. Another accommodation establishment maintains a total of 80-85 employees and
augments this with on call employees when they have big projects and the other has 96
employees.
•
Accommodation businesses hire extra part-time employees to meet changes in demand arising
from seasonal fluctuations and when there are big conventions, athletic/sporting events, and
during the Panaad and Maskara festivals. However, there are certain inefficiencies arising from
the use of seasonal labour, particularly transaction costs incurred from more frequent hiring
and training and from other administrative matters.
•
Recruitment of staff is either through advertisements or referrals. Short listed applicants
undergo written exams, series of interviews and one hotel requires applicants to be subjected
to drug test. People in the front desk of hotels must be college graduate, conversant in English
and with pleasing personality while those in the housekeeping must, at least, have 2 years
college education.
•
While the local labor market provides the needed workforce, some positions which require
higher expertise are outsourced from either Cebu or Manila. Two respondents claim that the
positions of supervisor down to rank and file are sourced within Bacolod but some department
heads to manager are outsourced. In one particular establishment, the manager-respondent is
not from the province and 3 department heads out of 9, come from other provinces.
•
Laid off staff (due to seasonality) and students who have undergone practicum with the
establishment are given priority during next hiring.
•
In the bigger accommodation establishments, employees are unionized and have collective
bargaining agreement with management. One provision stipulates that retrenched workers are
given priority whenever there are vacancies. Vacancies must be posted first in bulletin boards
at the hotel so that present staff can inform their former co-workers before these are
advertised outside.
B. COMPETENCIES AND TRAINING
•
Hotels need managers who have skills on: people management, commercial skills and business
acumen, problem solving, succession planning, resource planning, knowledge of industry trends,
innovative skills to secure and keep repeat business. To date, accommodation establishments
have difficulties in finding good managers within Negros Occidental. Likewise, owners and
10
managers need to upgrade their product and market development skills including know-how on
current market trends.
•
Core staff must be knowledgeable on industry specific and vocational skills: mainly technical
skills such as food production and preparation, stock management, cost control, housekeeping,
simple maintenance and troubleshooting like electrical, communications, etc.; business support
skills for corporate clients oriented hotels, play skills and activity-leading for family oriented
hotels, language and English proficiency/communication skills.
Vocational Competencies Required in the Hospitality Sector
Tourism Core
Events, Recreation and Sports
Food and Beverage Service
Cookery
Housekeeping
Patisserie
Catering
Gaming
Front Office
Source: National Tourism Competencies Development Plan, June 2004
•
Important also are soft competencies particularly affective skills such as attitude, values,
emotional quotient, people orientation, ability to communicate with wide range of customers,
willingness to learn, etc.
•
Newly hired employees are trained in house but regular staff members are sent for advanced
trainings outside the establishments or trainors are invited to train them. In house or on the
job trainings are provided by the owner or the supervisors to new recruits. Two respondents
indicated that they conduct the following in-house training and workshops for their staff: a)
housekeeping and front desk operations; b) values formation; c) team building; d) productivity;
and d) quality service.
•
Hotel owners and managers generally recognize the need for skills upgrading. Likewise, the
industry also acknowledges the fact that there is a lack of training courses responsive to the
needs of the accommodation industry in Negros Occidental. The hotel association has organized
some training and workshops but these initiatives are sporadic.
•
Although establishments acknowledge the need to update and gain new skills, they are not
inclined towards formal, structured and time consuming courses. They desire short, action
oriented trainings focused on practical and subject-specific intensive half day to one day
trainings which they can easily balance with business activities.
•
Multi-skilling is seen by many of the respondents as a way for maintaining a regular number of
full-time employees. This implies the need for employees to acquire basic competencies for
various tasks.
•
Awareness in proper waste disposal and management is low in most of the establishments.
Parallel to this, owners and managers are dismayed at the seemingly slow response of the
government to improve waste management system. Segregated biodegradable and nonbiodegradable waste, for example, end up mixed when collected as there are no initiatives for
composting. Some initiatives in recycling though have been initiated at the provincial level.
11
Section 4
Constraints
Low appreciation of
accreditation
Current Initiatives
Owner or manager closely
supervise day-to-day
operations
Conduct of accreditation
seminars by DOT
offices
Potential Solutions
Quality Improvement
accreditation
both
for
consumers
and
tourism
Effective
promotion
of
accommodation establishments
in meeting requirements
collaboration among
and conventions.
program.
different players with HRANO
as the starting point.
B. HUMAN RESOURCES
Constraints
Limited supply of qualified
managers within Negros
Current Initiatives
Companies recruit from Cebu
and Manila
Potential Solutions
Upgrading of HRM courses in
Negros Occidental schools in
close collaboration with
industry players.
12
Constraints
Current Initiatives
Senior staff of bigger
establishments undergo
training from external
providers (usually Manilabased)
Potential Solutions
Conduct of short term
management training through
tie-ups between internationally
accredited HRM providers and
the technical and HRM schools
in Negros Occidental.
One important area of
innovation and emphasis for
management training is quicker
response to –-- or anticipation
of –-- market developments.
Encourage hotels with in-house
training programs to share
their “trainors” and programs
at reasonable fees with other
establishments.
persons.
Promote use of human resource
management provider to assist
companies in definition of
innovative contract and benefit
schemes to employees, team
building, OD, etc
Benchmarking missions and
dissemination of international
occupational standards to
facilitate identification of skills
requirements
High turnover rate particularly
among lower rank employees
Lack of awareness and
information on international
job/quality standards among
majority of hotel owners and
managers. As a consequence,
work and customer service
standards are based on locally
accepted norms. Likewise,
accommodation businesses are
not also clear on the training
requirements for their
workforce.
Wide seasonal fluctuations lead
to inefficiencies in the use of
both capital assets and labor.
Hiring priority of employees
laid off due to low occupancy
Promote multi-skilling parallel
to development of products
that would reduce seasonality
Establish tracking system of
trainees from vocational/ tech
schools/training centers to
13
Constraints
Current Initiatives
Potential Solutions
facilitate hiring during peak
season
Implementation of Continuous
Improvement Program
Promote use of technology to
improve efficiency
Smaller establishments cannot
afford cost of specialized
training (usually available only
in Manila)
HRANO organizes common
training but on an intermittent
basis
Benchmarking missions and
exposure to best practices
Develop local pool of trainors
consisting of in-house trainors
of accommodation
establishments
Promote collective acquisition
of services as a means of
bringing down individual costs
Constraints
services to guests
Current Initiatives
Dial-up internet connection in
rooms in L’Fischer and
Sugarlandia
Potential Solutions
functions.
operations
Cebu ICT companies
dev activities
Foster collaboration among
industry players in the
development of full packages.
working with professional
product development
consultants through pilots.
Poor environmental
environmental costs
re: recycling.
practices
14
Constraints
Current Initiatives
Potential Solutions
sectors
practices in SMEs.
D. INPUTS
Constraints
Increasing costs of supplies
Current Initiatives
Potential Solutions
Promote recycling and good
housekeeping
Establish a comprehensive
resource/suppliers database,
including self-sustaining
capability for regular updating.
Perceived lack of suppliers in
Bacolod for quality meat, fish
and vegetables
Explore possibility of suppliers’
accreditation system. To
promote equitable
participation among all
players, program should ensure
that suppliers have access to a
range of business development
services that will enable them
to match the agreed standards
and requirements.
and water)
Conservation measures
disseminated to enterprises
Constraints
Seasonality of sales/demand
Current Initiatives
Potential Solutions
Establish linkages with
international, Manila, Cebu,
and Boracay travel
intermediaries and airlines in
development of ‘off-season
packages and promotion
campaigns’. Investigate
15
Constraints
Current Initiatives
Potential Solutions
inclusion of Negros Occidental
in Cebu and Boracay packages.
Work with other tourism
industry players in the
development of innovative
mechanisms that would expand
the tourist season such as
staging of events.
Insufficient effort to market
Negros Occidental / Bacolod
City as a key tourism and MICE
site destination resulting
among other things to slow
growth of hotel subsector
Lack of government resources
to support marketing campaign
Lack of access to market data
and info
Promotion via tourism attaches
--- info materials dissemination
and visits to tourism attaché
offices in source country
Intermittent marketing
campaigns; individual company
efforts
Implementation of planned
Convention and Visitors Bureau
--- owned and managed by
private sector --- which will
take the lead in marketing
visitor and market surveys and
the consequent packaging and
dissemination of results to
enterprises.
Some market data available at
DOT but these are very limited
and not consolidated.
means of:
needed information
•
these information
the enterprises
•
Packaging and
disseminating these
information to SMEs
Access to marketing providers
who can help companies to
design marketing campaign
anchored on specific product
differentiation factors that the
company and the industry as a
whole can sustain as a
marketing proposal
Review current training
modules on marketing and
incorporate use of ICT as
marketing instruments.
•
Marketing policies of
companies have not really
given so much attention to the
development of product
differentiation factors in
addition to price.
Marketing campaigns usually
focused on price discounts.
The industry has not fully
maximized the use of
technology for marketing
activities
Web presence either via own
website or sites of travel
intermediaries
Websites of hotels have no
capability to accept
Ongoing website development
by PCCI and VAST
Support the development of a
self-sustaining tourism internet
16
Constraints
reservation except for those
with linkage to established
travel intermediaries.
Existing Negros Occidental
tourism websites have
incomplete info and are not
updated regularly
Limited info re: hotels in major
source markets
Current Initiatives
Potential Solutions
portal for Negros Occidental.
Explore possibilities of building
on current initiatives of PCCI
and VAST.
Web-based advertisements and
DOT promotion campaign
In collaboration with experts/
providers, accommodation
establishments should pursue
the development of a multipronged promotion strategy
such as:
Local capability to develop
marketing campaigns need to
be enhanced
•
•
•
Lack of information re: hotels
at the local level
Signages; radio and newspaper
ads; yellow pages - directory
image of holiday
experience
‘Tangibilize’ offer in
thing
Linkages with international
airlines/tour operators;
invitation of tourism
journalists for inclusion in
journals, magazines, etc.
Support to capability build-up
of marketing and advertising
agencies in the development
and implementation of
marketing campaigns for hotels
and other accommodation
establishments.
Together with other tourism
subsectors, Invest in the set-up
of self-service tourism info
counters at strategic places.
This may be done in
collaboration with advertising
companies as well as
sponsorships from big
businesses (e.g. SMART, Globe,
SM group of companies, Cocacola, etc.)
17
18
Annex D
RESORTS
1
Table of Contents
3
C. Markets
3
4
5
7
9
B. Human Resources
D. Inputs
E. Market Access/Marketing
10
10
11
12
13
13
F.
G.
14
15
Infrastructure
Policy
2
Section 1
INDUSTRY STRUCTURE
1. Resorts
•
DOT defines resort as any place or places with pleasant environment and atmosphere conducive
to comfort, healthful relaxation and rest, offering food, sleeping accommodation and
recreational facilities to the public for a fee or remuneration. Resorts maybe categorized as
beach resort (located along the seashore), inland resort (located within the town proper or
city), island resort (located in natural or man made island), lakeside or riverside resort (located
along or near the bank of a lake or river), mountain resort (located at or near a mountain or hill)
and theme parks.
•
It is estimated that there are at least 65 resorts offering accommodation and food services as
well as amenities like souvenir shops and some recreational facilities. Of the 65 resorts, 5 are
government owned while the rest are privately owned resorts --- single proprietorship and
corporations. One (1) resort is accredited as a convention facility according to data provided
by the provincial tourism center.
•
The government owned resort is dependent on the provincial government which has direct
control over the establishment. Some of the municipal governments have invested in the
establishment. Private concessionaires are also operating in the resort providing particular
services like boating and biking. Facilities and supplies are said to be sourced by the
Department of Dudget and Management (DBM), hence the resort does not relate directly to
suppliers but receives these from the DBM.
•
Compared to hotels, resorts are more operationally intensive, service oriented, and face
seasonal business patterns. Resorts cost more to build than traditional hotels, but they
generate more revenue from longer guest stays.
•
The association of resort owners is called Resort Association of Negros Island (RANI). It is a
relatively active group but would benefit significantly from organizational development
intervention.
2. Relations with Input Suppliers/Backward Linkages
Backward Industry Linkages
Ocean, coastal, and inland fishing
Electricity, Water, Communication
Furniture and fixtures
Rice and corn milling
Toiletries
Wholesale and retail trade
Non-life and other insurance activities
Vegetables
Petroleum refineries
Soap and other detergents
Slaughtering and meat packing
Banking
Furniture and furnishings
Cigarettes
Malt and malt liquors
Carpets and rugs
Laundry, dry cleaning
Coffee roasting and processing
Recreational facilities and equipment
Tour and travel agencies
Construction
Transport services
3
•
Backward linkages of resorts are more or less the same as the hotels. One difference is that
resorts spend more than hotels for recreational facilities and in the infrastructure for activitybased products. Equipments for recreation like dive facilities are imported, others like pump
boats are assembled locally.
•
Supplies and raw materials for restaurants operated by resorts account for about 15 to 20% of
the resort’s operating cost. Most of the raw materials for food are sourced from the Bacolod
City market and the rest are sourced on site. Relationship with suppliers is informal. One
resort sources its vegetables within the resort where they also maintain farming activities,
another buys its fish supply in the municipality where it is located.
•
Other major suppliers of resorts include power and other utilities and toiletries and related
products.
•
Resort operators have strong relationship with local tour operators according to FGD
participants. Tour operators bring their clients to the resorts. Between travel agencies and the
resorts, the relationship is very weak. Travel agents seldom include the resorts in tour
packages for inbound tourism. According to the travel agents, the commission being offered by
resorts in the province is very low (between 5 to 10%) which is not enough to cover cost of
communications compared to other destinations which offer as high as 40%. Only one resort
owner offers 30% commission. Besides local travel agencies claimed that the resort owners do
not provide information materials.
•
It was also gathered that information on transport plying the routes is minimal and access roads
to the resorts from the main road are poor.
•
DOT classification depends largely on the variety of services offered by resorts. Classification
under Philippine tourism for resorts is ‘AAA’, ‘AA’, ‘A’ and special interest resorts with triple A
offering the best services and facilities. ‘AAA’ resorts provide first class guest rooms, at least 4
sports and recreational facilities and conference and convention facilities while ‘A’ resorts
provide economy class guest rooms, at least 2 sports and recreational facilities but do not have
conference and convention facilities. A special interest resort must have camp and ground sites.
The resorts in Negros Occidental, however, have not been classified by DOT.
•
The 65 resorts offer services such food and accommodation, parking lot, and souvenir shops.
Resorts provide venues also for picnics. Food and beverage services are available to both long
staying and day guests. To increase occupancies, resorts have diversified their marketing mix
to include conventions, business meetings, adventure tourism, ecotourism, etc.
Accommodation is provided in air conditioned, ordinary rooms and cottages. The inland resort,
for example, has 27 rooms that can accommodate more or less 50 people and a conference
room which can seat 50-200 people while the foreign owned beach resort can accommodate
only 16 visitors and has no function rooms. Another beach resort has a function hall which can
accommodate 60 guests.
Average capacity of a resort as estimated by FGD participants for overnight accommodation
(with bed) is 50 people; can cater to between 80-200 people for meetings/conferences and can
serve around 500 people for picnics.
Swimming, picnicking, diving, snorkeling, trekking, boating, fishing, bird watching, etc. are
some of the possible activities a visitor can enjoy while in these establishments. The inland
4
resort located in an agricultural area sells vegetables and ornamental plants produced in the
resort.
•
Because resorts are quite of considerable distance from Bacolod City, guests particularly those
coming from places outside of Negros Occidental are cocooned in the area and tend to stay
longer. This presents a challenge to the food and beverage unit to provide quality menus that
are varied and are presented and served in an attractive manner. Resorts though can achieve
much higher per capita food and beverage revenues than traditional hotels. This is due to menu
pricing and the greater number of meals captured on-site.
Likewise, guests expect to be pampered and/or presented with wide range of activity options.
This requires good range of product offers as well as attentive, well-trained staff with good
people relations skills.
C. MARKETS
•
90% to 95% of resort clients are day guests consisting mainly of local residents. They usually
avail of the swimming and picnic facilities of the resorts including rental of cottages and huts as
well as food and beverage services. Non-Negros Occidental residents and a few foreigners
comprise the overnight and long-term guests. To date, Negros Occidental does not figure
prominently in tour packages offered by national and international travel agencies and tour
operators.
•
Resorts face strong seasonal fluctuations especially with overnight and long-term occupancy.
Day-guests are higher during weekends and usually peak during summer months. This presents
a challenge in attracting, training, and retaining competent staff. Conventions and business
functions have enabled some resorts to mitigate effects of seasonal fluctuations. However, in
many resorts, facilities cannot accommodate big groups.
•
In more developed tourism industries, an emerging trend during off-season is to form strategic
alliances among complementary tourism businesses to market vacation packages. Partners may
include hotels, airlines, car rental companies, credit card companies promoting entertainment
events and sporting attractions.
The other strategy involves spreading demand over a less concentrated and longer period of
time. This is typically accomplished by using the pricing mechanism. For example, most
travelers face higher room rates during busy summer months. Likewise, many established
resorts have adopted a form of dynamic pricing developed by the airline industry to mitigate
this (e.g., blocks of room offered at lower prices for conferences or other events provided that
they are reserved in advance; travelers requiring rooms on shorter notice are charged higher
room prices).
•
The foreign owned resort claims that there is an increasing demand from European tourists for
the past months. This claim is based on the marketing efforts he does targeting the European
market.
•
Resort owners and account executives use various promotional tools such as:
- Tri-media advertisements
- Distribution of brochures
- Online marketing via own websites and travel intermediaries
- Destination marketing via travel agents and tour operators
- Participation in travel marts/fairs
- Face-to-face marketing
Resort owners also conduct familiarization tours for intermediaries and journalists. Direct
marketing is most effective with domestic tourists and online marketing works more for
5
foreigners though very minimal foreigners visit Negros Occidental yet. The least effective is
through brochures inspite of its costly development, printing and distribution costs.
•
•
Marketing is done individually. There is no unified and collective marketing campaign among
resort owners as well as with other players in the tourism industry. There are no linkages, for
example, with hotels in Bacolod for product development to provide enhancement to the
‘convention’ product to extend the stay of participants in the province. A possible added
feature of the convention package could be a stay of the spouse/family in one of the resorts
while the convention is ongoing or an additional night/day in a resort for participants.
To date, it would seem that resorts are not yet profitable businesses, however, the potential
exists.
6
Section 2
VALUE CHAIN
FIRM
INFRASTRUCTURE
Financial Management – Guest Account/Room Management; financial systems --- still generally manual
Customer Relations
Inventory control and tracking; just-in-time delivery; random visual inspection of goods
Reservations/booking systems/tracking
Some ad hoc implementation of environmental management and waste disposal
No formal documentation on processes and standards; standards based on local norms
HUMAN RESOURCE
MANAGEMENT
Training: on-the-job training; practicum for students; owners training new entrants; cross training of employees – multiskilling
Use of internet for marketing – webpage; on-line advertisement via travel agencies
Computerized booking and reservations/financial system (bigger establishments)
Communication facilities – business center; rooms – mainly telephone
TECHNOLOGY
DEVELOPMENT/
R and D
PROCUREMENT
MAIN ACTIVITIES
INBOUND LOGISTICS
Receipt, inventory,
distribution of goods and
supplies
Tracking down of
occupancy and booking
vis-à-vis assignments
OPERATIONS
Accommodation – check in
till check out: room
preparation and
maintenance, various
services to guests (laundry,
food, calls, etc.)
Coordination of activities -- assistance to guests for
specific activities
Facilities and premises
maintenance and security
OUTBOUND
Confirmation of
reservation via email,
phone, in-person --directly or indirect
through intermediaries
MARKETING
Direct marketing
Tri-media ads; brochures; online
marketing via intermediaries
Destination promotion marketing by
travel agents & tour operators
AFTER SALES SERVICE
Follow-up call/
feedback gathering
done for corporate
clients
Lost and found service
Participation in travel marts/fairs
Sending of greeting
cards
Familiarization tours / travel exchange
Exit surveys
Referral; word of mouth/discount promo
7
•
Resort entry barriers, which include economies of scale, infrastructure, and product
differentiation, are significant particularly for those who will venture in first class operations
with full-service accommodation, convention, and food service facilities. Presently, only a
small percentage of the province potential business and tourist areas has been
developed.Moreover, an entrant would need high start-up costs from advertising, image
building to offset leverage of existing prominent hotels.
•
Location, amenities, and the quality and range of services offered allow resorts from micro to
large-scale establishments to vary room prices. While there are already quite a number of
players in the market, the resort industry can be characterized by still a rigid competitive
structure. Resorts sell more or less the same service but differ in quality and style. The better
and wider the service, the higher the rates.
•
Important factors in resort marketing are: a) the image of the destination and of the area as a
whole; b) staffing and culture in terms of service provision; and c) attractiveness of activities.
In both factors, the Negros Occidental resort industry needs to improve. More extensive use of
information technology can greatly enhance the productivity and efficiency of resorts.
•
Tourism development follows its own dynamism, what is referred to as the resort cycle; that is,
tourist destinations tend to pass through successive stages, from discovery, to growth, to
maturity and then on to decline. It is the task of tourism planners and policy makers to ensure
that a given tourist destination avoids reaching the impasse brought about by boom-bust cycles
by factoring in not just the economic and ecological side of development but also the social and
cultural aspects, thus forging a more sustainable future for tourism.1
1
Jose Eleazar Bersales, Contested Space : Tourism Power and Social Relations in Mactan and Panglao Islands,
2003
8
Section 3
HUMAN RESOURCES
•
Many of the establishments are family owned and are operated informally. In many instances,
managers double as workers and may not necessarily possess skills in people management,
commercial and business acumen, problem solving, succession planning, resource planning,
knowledge of industry trends, innovative skills to secure and keep repeat business.
•
Skills required from employees vary widely. One beach resort hires people with no experience
at all and train them to do housekeeping, laundry and other routinary tasks. An inland resort
employs people as waiters with minimal experience which they enhance through on the job
trainings. In the government owned mountain resort, the supervisory and managerial positions
are occupied by government recruited employees while the janitorial and security services are
provided by service agencies. Most of the resort owners, however, indicated that chefs should
have good cooking skills and experience.
•
Some establishments advertise vacant positions in order to be able to select qualified personnel.
Experience in other similar establishment is an advantage for applicants. Workforce are
available and sourced within the province but not of the quality desired.
•
On the job training is provided by the owners. It is rare, however, for employees to undergo
additional training with external providers due to affordability issues, time availability, and the
perceived lack of relevant local providers.
•
Due to the seasonality of the business, multi-skilling is employed. The employees of an inland
resort, for example, possess skills in agricultural related tasks and as such do agricultural jobs
such as weeding and planting when there is not much to do in the resort operation.
Competence is derived from attitude to work: enthusiasm, people orientation, commitment,
the will to learn.
•
Employees in resorts need the following industry specific and vocational skills:
-
•
Technical skills such as food production and preparation, food safety, nutrition
analysis, stock management, cost control, housekeeping
Simple maintenance and troubleshooting like electrical, plumbing, communications
Play skills and activity leading for family oriented resorts
Language and English proficiency/communication skills
Average number of employees per establishment is between 5-20. The mountain resort, which
employs 88 people, is an isolated case. An inland resort has 15 and a beach resort has 5 and
the other has 2 full time and 2 part time employees.
9
Section 4
Constraints
Food safety and cleanliness not
conscientiously implemented
accredited by DOT
Low appreciation of
accreditation
Current Initiatives
operations
Seminars, training on food
safety being conducted by
HRANO
conducted by DOT
compliance
Potential Solutions
Quality Improvement
resort chains and franchises/
Benchmarking visits
customized to various types
and size of operations
Effective promotion of
establishments in meeting
requirements
program.
collaboration among
and conventions.
RANI to promote unity and
different players with RANI as
the starting point.
Strengthen RANI so as to
enable it to play a more active
role in promoting unity and
cooperation among the
members
10
B. HUMAN RESOURCES
Constraints
Concept of customer
relationship management not
fully integrated
in the standards of service
Current Initiatives
Mentoring from management
Potential Solutions
Customer relationship
management customized to
resort operations
Limited capability to address
health & safety standards and
first-aid facilities
Some training initiatives
Workplace safety and health
standards
Work ethics/habits of local
staff needs improvement
(cultural constraint; lack of
commitment)
Limited specialized culinary
training available in Negros
Occidental
Train staff on basic health
care/first-aid
Linkages with doctors/medical
clinics
Values orientation, work ethics
Cooking demonstrations
Technical schools and HRM
schools in Negros Occidental
tie-up with Manila and Cebubased culinary training
providers
Innovative work contract
scheme and work schedules;
quarters for workers
Senior staff undergo training
from external providers
Facilitate tie-up with
restaurant training institutes
with international
accreditation
Difficulty to retain staff due to
remoteness of resorts
Encourage resorts with inhouse training programs to
share their “trainors” and
programs at reasonable fees
with other establishments.
training
persons.
Improvement Program
11
Constraints
among single unit
businesses
Current Initiatives
RANI sometimes organizes
common trainings
Potential Solutions
establishments
the other employees
Constraints
services to guests
Current Initiatives
dev activities
Potential Solutions
functions.
operations
Cebu ICT companies
chefs and food technologists
Poor environmental
environmental costs
re: recycling.
practices
working with professional chefs
and food technologists through
pilots.
sectors
12
Constraints
Current Initiatives
Potential Solutions
practices in SMEs.
D. INPUTS
Constraints
Current Initiatives
Lack of suppliers in Bacolod
Potential Solutions
Greening of resorts and rooms –
increase recycling activities
Encourage utility providers to
conduct orientation on
conservation measures
and water)
Constraints
Lack of capability and capacity
to design and conduct
marketing campaigns especially
among micro businesses
Current Initiatives
Potential Solutions
campaigns
Enhance capability of
marketing/advertising firms in
Negros Occidental to provide
relevant and affordable
services to food service
industry
Customize existing training
modules on marketing to
context of restaurant industry.
local training providers and
experts on restaurant
marketing
Lack of market data and info
on resort markets in Negros
Occidental
enterprises.
means of:
•
needed information
13
Constraints
Current Initiatives
•
•
offer
products
Lack of brand awareness
outside Negros
Have a brand “Sugar and More”
10 years old
Limited promo-materials
available in major source
markets and within Negros
Occidental
Web ads; DOT promotion
campaign
Potential Solutions
these information
the enterprises
Packaging and
disseminating these
information to SMEs
Development of product and
market development plan.
Review relevance of current
brand/marketing slogan.
Promote collaboration among
different players to come up
with integrated packages
aligned to market trends.
Work with providers in the
development of multi-pronged
promotion strategy such as:
•
image of holiday
experience
•
‘Visualization’ of offer in
thing
•
Linkaging with
international airlines/tour
operators; invitation of
tourism journalists for
inclusion in journals,
magazines, etc.
•
Availability and
dissemination of
information and promo
materials at strategic
locations
F. INFRASTRUCTURE
Constraints
High transport cost; Bad roads
No designated area at the
airport to pick up resort guests
Cell sites, telephone facilities
lacking
Power (electricity) quality is
Current Initiatives
Potential Solutions
Lobby with government to
improve access roads
Coordinate with airport
management
make representation with
communications companies
Lobby with electric
14
Constraints
poor / inconsistent – power loss
intermittent
Lack of water supply for most
island resorts
Current Initiatives
Potential Solutions
cooperative
Seek government intervention;
advocacy campaign
G. POLICY
Constraints
Local real estate taxes:
Documentation to comply with
incentives is expensive
(consultancy)
Voluminous bureaucratic
registration requirements like
Environmental Compliance
Certificate (ECC) compliance
Security for mountain and
island resorts
Current Initiatives
Board of Investments
incentives for investors
Potential Solutions
Assist in simplifying
requirements/process through
legislation
Assist in simplifying
requirements/process through
legislation
Seek cooperation of
surrounding communities
15
Annex E
TRANSPORT OPERATORS
1
Table of Contents
A. Players, Services, and Relations in the Subsector
B. Markets
3
3
5
B. Human Resources
6
8
9
9
9
11
D.
E.
11
12
Inputs
2
Section 1
INDUSTRY STRUCTURE
A. PLAYERS, SERVICES, AND RELATIONS IN THE SUBSECTOR
1. Transportation to and from Negros Occidental
•
Negros Occidental is one of the two provinces in Negros Island. It can be reached from the
other parts of the country by air or water.
•
By air, Negros Occidental can be reached from Manila and Cebu through the Bacolod Airport.
Bacolod City is serviced by the Philippines Airlines, Air Philippines and Cebu Pacific with plane
flights from Bacolod to Manila and Cebu with connecting flights from Cebu to Davao, Cagayan de
Oro, Cotabato, Surigao, Butuan, Zamboanga, Bohol, Leyte, and others. The airport has to be
improved so that bigger airplanes can land.
•
It can also be reached via water transportation from Cebu, Iloilo and Manila and Iloilo. The
province has six (6) seaports serviced by the following inter-island shipping lines namely: a)
Negros Navigation and William Lines; b) Gothong and Aboitiz; c) Sulpicio Lines, Inc/; and d)
West Visayan Shipping Company. The first two provide cargo and passenger services while the
latter two provide cargo service only.
•
By land, it can be reached from the other province in the island, Negros Oriental, through
ordinary and air conditioned buses. Buses ply the route Dumaguete-Hinobaan-Bacolod route.
2. Inland Transportation
•
Transportation within the province is mainly by land through its road networks connecting its 19
municipalities and 13 cities. Major mode of transportation is by buses, jeepneys and taxicabs.
For long distance travel, air conditioned and ordinary buses are the best option.
For the
shorter distances, there are jeepneys and taxicabs. Jeepneys have their specific routes and
loading areas. Routes of taxicabs are mostly confined within Bacolod City. Pedicabs provide
short distance transportation in some places outside Bacolod like San Carlos City. Access to
islands like, in the case of island resorts, is by banca.
•
Transportation facilities are owned by bus companies, car rental agencies, other establishments
and individuals. Hotels, for example, have their own vehicles which cater mainly to the needs
of the establishment but in some cases are chartered to customers. Transport utilities include
buses, jeepneys, vans, taxicabs, pedicabs and bancas.
Capitalization of land transport companies ranges from micro (1 unit) operating only within
Bacolod City to large --- owning a fleet of buses plying several routes in and outside the
province. The entry of several 1 or 2-unit operators was hastened by the investments of
overseas Filipino workers.
•
Per provincial tourism center data, there are 5 small bus companies registered in various
municipalities and one big bus company (CERES – Vallacar Transit) which owns a fleet of 307
buses operating in the area. Government, school and private owned buses are also available
for tours. There are also vehicles registered for private use yet offered for hire under the
chartered trip scheme. A taxi operator respondent claims to have 38 units.
Freight, also known as way bill, is an additional service provided by a bus company wherein it
transports cargo for a fee from terminal to terminal. Said company claims to generate 10-15%
of its income from this service.
3
•
Car rental services, with rates depending on vehicle type and distance traveled, are also
available. There are 4-5 private rent-a-car companies but only one (1) is registered. These renta-car companies own a total of 40 units operating in Negros Occidental.
Prices differ based on the seating capacity of the vehicle and the amenities available like air
conditioning. According to the respondent from the bus company, peak months for chartered
trips are April, May, November and December.
•
There are vehicles registered for private use yet offered for hire under the chartered trip
scheme. It is a source of sideline income for the owners. Some of these units are found plying
the route to and from the airport.
•
The president of the Bacolod Airport Drivers Association claims to have 130 members, each
member owns at least one or two units of either taxi or van. Members are drivers or owners of
at least one or 2 units of vehicles (taxicab, van, private vehicle) which cater to the transport
needs of incoming passengers at the Bacolod Airport. This has been disclaimed however by FGD
participants saying that not all of the members own a vehicle, some are barkers only. It is a
culture-base (damayan) organization which collects monthly fees and provides monetary aid to
members in times of sickness and death.
Per information gathered, this group also do not use taxi meters but instead charge fixed rates.
Members charge a uniform rate of PhP100 regardless of the distance of the destination.
•
Taxis (PUs) ply the major routes 24 hours a day, especially in Bacolod, to any point in Negros
Island. Generally, taxi fares are based on meters except for units owned by the Bacolod Airport
Drivers Association which are said to be claimed to be charging fixed rates.
•
For tourism purposes, not a single enterprise has been accredited with DOT as tourist transport
operator. Accreditation requirements specific to tourist land transport operators on top of the
general requirements are:
a) Land Transportation and Franchising Regulatory Board
(LTFRB) franchise; b) Transportation rates; c) Land transportation office official receipt and
certificate of registration (OR/CR); and d) Insurance policies (third party liability & personal
accident). Application procedures are the same in all establishments and corresponding fees
are found in Annex A.
The additional incentive for DOT accredited tourist land transport operators though, does not
apply in the province but for Metro Manila --- exemption from Metro Manila Development
Authority's (MMDA) Unified Vehicular Volume Reduction Program (UVVRP).
Per above
requirement, vehicles intended for private use cannot be used for tours.
Similarly, a driver who is considered one of the frontliners must be accredited. A driver
applying for accreditation must submit the following: police clearance, barangay clearance,
driver’s license and LTFRB franchise/OR/CR.
•
The transport subsector as a whole is not conscious of tourism because they earn their income
from the general riding public. This maybe the reason that there is no DOT accredited tourist
transport operator in the area. This situation possess a challenge to the prime movers of the
tourism industry in the province not to forget that the first and last encounter a tourist will
experience upon entering and before leaving a place is that with the driver. Thus the first and
last impression comes from the transport subsector.
•
The integration of Negros Occidental transport network with convenient transfers between
different modes of transport will become more important in order to deal with increasing
customer expectation.
4
3. Relations with Input Suppliers: Inland Transportation Companies
•
Suppliers of engines, units, tires, fuel, and maintenance like lubrication oil: One respondent, a
large family corporation, said they assemble their own units using engines and chassis from
multinational companies (Mitsubishi, Hino & Nissan). This company owns and operates allied
companies engaged in body building, foundry, recapping, break lining and the like. A taxi
operator procures units from Nissan while members of the drivers association acquire
assembled/finished units from local suppliers. Suppliers of parts, tires, fuel and other
maintenance needed are available at wholesale and retail stores.
•
Service providers: These ranges from individuals/companies which provides repairs and
maintenance services and training. Only TESDA was identified as provider for trainings. Except
the large bus company which diversified to other transport related businesses to provide the
needs of its units, micro and small operators rely on the services of other establishments for
repairs and maintenance. There are numerous small automotive shops in Negros Occidental.
•
Bus companies, taxi owners, rent-a-car agencies and jeepney owners have relationship with
hotels, resorts, travel/ticket agents and tour operators. These transport utilities are tapped by
the latter to provide transport service to their customers. The tourists, however, like local
residents can ask the services of the transport group directly but for someone who might be
new in the area, he/she might prefer that transport will be taken cared of by intermediaries
whom he/she has other transactions. It is assumed that intermediaries especially travel
agencies and tour operators earn commission from transport providers.
•
Airlines have tie-ups with selected hotels (usually first class and economy hotels) in the form of
earned mileages, discounts, package rates, etc.
B. MARKETS
•
General Public: Any member of the population who needs transport to reach his/her destination.
This is the main market of the sector estimated at 80% by the association and a taxi driver.
Customers are mainly from the province like students among others.
•
Schools needing chartered buses for lakbay aral or educational/field trips either go directly to
the bus company or via tour operators. Inbound tourist needing bus transport avails the
services of the bus company through the tour operator.
•
Tour operators provide transport service as part of the tour packages according to the bus
company. Tour operators arrange with the company and pay agreed amount whether it is full
or not and abide by the number of hours agreed upon or pay additional amount for the extra
hours.
•
Tourists: According to the Airport Drivers Association and by a taxi driver, only 20% of their
income is derived from tourists. A bulk or 80% is received as payment of transport services from
regular customers and the local riding public.
•
Transport operators especially the micro businesses conduct very limited marketing activities.
Only the large bus company advertises their trip schedules in the newspaper, radio and
television. It has also its own terminal with signage and regular route. The members of the
taxi drivers association make their units available at the arrival area of the airport. The Airport
Drivers Association also mentioned that they have “suki” or regular customers who inform them
when they need transport. With the advent of wireless communication, some taxicab drivers
hand out their mobile phone numbers to passengers for some repeat business and referrals.
Jeepneys have also their regular route and terminals from which they are assured of passengers.
5
Section 2
VALUE CHAIN
INLAND TRANSPORTATION
FIRM
Administrative/Financial Management System in bus companies; with micro business: simple recording or no recording at all –
INFRASTRUCTURE
owner performs all tasks from driver to maintenance
Service/Maintenance System
Trip Schedules for buses; routines and routes
HUMAN RESOURCE
MANAGEMENT
TECHNOLOGY
DEVELOPMENT/
R and D
PROCUREMENT
Visual inspection of vehicles
Training: on-the-job training
Compensation as per Philippine Laws and prevailing market rates; boundaries as per prevailing rates in the area
Manual; limited use of computers
Basic communication facilities
Some have handheld radios assigned to units
MAIN ACTIVITIES
INBOUND LOGISTICS
Receipt, inventory,
distribution of parts and
supplies
OPERATIONS
Dispatch of units
OUTBOUND
Confirmation of booking
MARKETING
Direct marketing
Pick-up of passengers
Face-to-face delivery of
services
Signages/Terminals
Visual check-up of vehicles
Drive to destinations
Some drivers double up as
tour guides (informal) and
porters
Advertisements – tri-media
AFTER SALES SERVICE
Bigger companies give giveaways during Christmas to
preferred customers
Taxi drivers give out cell
6
Drop off of passengers
Garage
phone nos. to generate
repeat clients
Key issues that inland transport industry has to address to improve profitability and to provide adequate support to tourism include the following:
-
Operational efficiency
Safety and security
Delivery of differentiated services for different segments of the travel market
Creation of the means through which a high level of integration between modes can be achieved
Environmental management/Reduce emission/Cleanliness/Maintenance
7
Section 3
HUMAN RESOURCES
•
The bus company claims to employ at least 1,300 people at its Bacolod branch alone. Only
male experienced drivers with the necessary license are qualified to drive. Conductors must
know how to handle passengers in addition to having basic arithmetic skills. Those in the
maintenance are required to have graduated in automotive course and certified by TESDA.
They have undergone additional trainings on automotive while with the company. Employees
are also sent to attend LTO organized fora and trainings to be updated on the policies, rules
and regulations.
•
Taxi drivers of the company interviewed need to know how to use the radio aside from having
the necessary driving skills. The radio system connects all the units and the base enabling
everybody to communicate with each other whenever necessary. The base can trace the
whereabouts of all the units. Personal hygiene and good grooming is a must for drivers in this
company. This company claims to give awards to model drivers. Drivers must also possess
basic mathematical abilities needed in calculation of payment and change.
•
Except for administrative, finance and logistics support, the operations and maintenance is
male dominated requiring skilled and licensed drivers. Buses are accompanied by conductors
who assist passengers with their baggage/cargo.
•
Drivers are hired from the local market as these people are knowledgeable of the area. For
taxis and vans, the units are driven either by the owner or a hired driver. Compensation is
based on prevailing market rates in the locality.
•
A training for drivers, conductors, front desk people called “Mabuhay Host program” was
conducted a few years ago. Consciousness of drivers on tourism, however, is still very low and
not a single driver has been accredited by DOT.
8
Section 4
Constraints
Current Initiatives
operations
accredited by DOT
conducted by DOT
Low appreciation of
accreditation
compliance
Potential Solutions
Quality Improvement
transport operators active in
tourism related activities/
Benchmarking visits
accreditation
both
for
consumers
and
tourism
Effective
promotion
of
establishments
in
meeting
requirements
program.
B. HUMAN RESOURCES
Constraints
Current Initiatives
Concept of customer
relationship management not
fully integrated
in the standards of service
Mentoring from management
Lack of tourism orientation/
consciousness
Brochures and flyers available
in tourism office for pickup by
“Mabuhay” Host program by
DOT
Potential Solutions
Customer relationship
management customized to
transport businesses
Tourism consciousness
campaign and its
prospects/opportunities
9
Constraints
Lack of discipline – personal
hygiene, work safety
consciousness, proper vehicle
maintenance
Current Initiatives
taxi/bus operators
Peer mentoring/ Mentoring
from owners
LTO/LTFRB accreditation
requirements for tourist
transport providers
Training/workshops on:
Values Orientation
Workplace, environmental,
health and safety standards
Cleaner Production
Basic English proficiency
training
Lack of English proficiency
Note: English proficiency is
value added but not considered
a constraint
Potential Solutions
Some employees undergo
training from external
providers
Facilitate tie-up with transport
operation training institutes
with international
accreditation
Encourage transport companies
with in-house training
programs to share their
“trainors” and programs at
reasonable fees with other
establishments.
among single unit
businesses
training
persons.
Improvement Program
establishments
the other employees
10
Constraints
services to guests
Current Initiatives
Poor environmental
environmental costs
Potential Solutions
functions.
operations
Some piecemeal initiatives
environment friendly practices
Cebu ICT companies
practices including the use of
environmentally friendly
products
practices in SMEs.
technologies
D. INPUTS
Constraints
Current Initiatives
Potential Solutions
Training program on proper
vehicle maintenance / good
environmental practices as a
means of reducing waste,
pollution, etc.
Cleaner Production Program
Quality Improvement
11
Constraints
offer
Current Initiatives
products
Need to strengthen linkages
with other players
Some have established
relationships with hotels,
restaurants and tour operators
Potential Solutions
Development of product
differentiation factors in
addition to price (e.g., clean
vehicles, courteous drivers,
drivers possess basic info about
places to be visited, etc.)
Involvement of transport sector
in the development of
packages so as to promote a
consistent image among all the
players
Broker linkages. Set-up of
database of qualified transport
operators
12
Annex F
VALIDATION WORKSHOP SUMMARY RESULTS
Results of the validation workshop indicate that:
1. Priority area for intervention is on Promotion and Marketing followed by Quality and
Competitiveness Improvement.
2. Top 5 specific fields of change most relevant to the needs of the tourism businesses are the
following:
•
•
Availability of tourism information at major gateway points (within and outside the
Philippines) and in strategic locations within Negros Occidental.
•
Upgrading of existing management, marketing, and general administrative courses to
international standards
•
Better use of travel agencies, tour operators, and other tourism intermediaries to
promote and distribute Negros Occidental tourism products complemented by publicity
in appropriate media to create awareness and establish credibility within the segments.
•
Development of a compelling brand and product portfolio, which meet the desire for a
3. Below is the breakdown of votes of participants as to the top 2 most relevant fields of change
per category.
Fields of Change
No. of Votes
Development of a compelling brand and product portfolio
Development of cultural, sporting, and social events
52
16
12
Availability of tourism information at major gateway points and in
strategic locations within Negros Occidental.
Development of tourism internet portal for Negros Occidental
Better use of travel agencies, tour operators, and other
local/regional/international tourism intermediaries
Upgrading of existing management, marketing, and general
administration courses to international standards
Development and/or strengthening of local capability to deliver
dualized training programs of international standards
14
10
74
23
13
Promotion among enterprises of the implementation of a Continuous
Productivity and Quality Improvement (CPQI) Program
Promotion of the effective use of information technology in improving
business operations and marketing
Promotion and development of a tourism-friendly culture across all
sectors of the community
2
Establishment of a province-wide industry led quality seal program
21
17
59
17
11
10
10
9
Annex G
LIST OF KEY INFORMANTS
KEY INFORMANTS
Name
George Zulueta
Position
Executive Director
Frank Carbon
Gaspar Gayona
Vice President
Director
Jennelyn Cordero
Nixon R. Yap
Perfecto C. Yap
Tourism Officer
Provincial Director
Company
Metro Bacolod Chamber of
Commerce & Industry (MBCCI)
Technical Education & Skills
Development Authority
(TESDA)
Provincial Tourism Office
Bacolod City Tourism Office
Department of Trade &
Industry (DTI)
Association of Negros
Producers (ANP)
Marivic Pio
Mey Santos
Nestor Evaristo
President
Hotel & Restaurant
Association of Negros
Occidental (HRANO)
Dominic Pena
Rainier Perales
Angela “Nena” de Leon
Estrella H. Moran
President
Branch Manager
Proprietor
Proprietor/Manager
Greg Flores
Manager
Airport Drivers Association
Ceres Bus Lines
Pavilion Taxi
Techno Tours and Travel
Agency
Filipiniana Tours & Travel
Agency
Augusto P. D. Sison
Robert Balde
“Chang”
The Sugarland Hotel
L Fisher Hotel
Bacolod Convention Plaza
Bobby Magalona
Nestor Evaristo
Mark Kalita
Freddie W. Zayco
Ruth Cruz
General Manager
Manager
Executive Assistant
Manager
Manager
Proprietor/Gen. Manager
Manager
Managing Director
Proprietor/Manager
Ellen Marie Jalandoni-Vazquez
Officer in Charge
Mambukal Resort
Bob’s Cafe
Aboy’s Restaurant
Takatuka Lodge & Dive Resort
Punta Bulata Resort
The Quite Place Farm Resort
Annex H
ACCREDITATION
SOURCE: DEPARTMENT OF TOURISM
What is an Accreditation? A certification issued by the Department of Tourism that the
holder is recognized by the Department as having complied with its minimum standards in the
operation of the establishment concerned.
Who may apply for DOT Accreditation?
•
Travel and Tour Services
o
o
o
o
o
•
Accommodation Facilities
Tour Operators
Tourist Transport Operators
- Tourist Land Transport
- Tourist Water Transport
- Tourist Air Transport
Tour Guides
Mountain/Cave Guides
Professional Congress
Organizers
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Hotels
Resorts
Apartels
Tourist Inns
Motels
Pension Houses
Restaurants
Shops/Department Stores
Sports & Recreational Centers
Training Centers
Training Programs
Trainors
Rest Areas in Gasoline
Stations
Spa
Museums/Galleries
Foreign Exchange Dealers
Calesas
Homestay Sites
Non-Fiscal Incentives to Accredited Establishment
•
•
•
•
Membership to Philippine Convention and Visitors Corporation (PCVC) and inclusion in
its marketing and promotional programs.
Issuance of DOT ID cards to bonafide employees.
Technical/security/facilitation support or assistance.
Endorsement to embassies and travel trade associations for utilization of establishment's
facilities and services.
Additional Incentives to DOT Accredited Accommodation Establishments
• Endorsement to Ninoy Aquino International Airport (NAIA) and other international
•
•
airports for issuance of access passes to qualified personnel.
Endorsement to Commission on Elections (COMELEC) for exemption from liquor ban
during election related events.
Endorsement to the Department of Agriculture (DA) for importation of meat and meat
products.
Additional Incentives to DOT Accredited Restaurants
• Endorsement to COMELEC for exemption from liquor ban during election related events.
• Endorsement to the DA for importation of meat and meat products.
Additional Incentives to DOT Accredited Tour Operators
•
Endorsement to NAIA and other international airports for issuance of access passes to
qualified personnel.
Additional Incentives to DOT Accredited Tourist Transport Operators
• Exemption from Metro Manila Development Authority's (MMDA) Unified Vehicular
•
Volume Reduction Program (UVVRP).
Endorsement to Maritime Industry Authority (MARINA) for issuance of Certificate of
Public Convenience (CPC) and availment of deregulated rates.
Procedures in Applying for a DOT Accreditation
Original Application
Renewal of Application
01 Applicant shall request for inspection
of the establishment being applied
for at the DOT Accreditation Division
in Manila or the Regional Office
concerned.
02 The DOT shall conduct inspection of
the establishment.
03 The DOT shall inform the applicant in
writing of the result of inspection
whether favorable or unfavorable
04 If the result is favorable, applicant
may now file and submit all
supporting documents.
If the result is unfavorable, applicant
may request for reinspection once
deficiencies are corrected.
05 Applicant shall ensure that the
application form is properly filled-up
and the documents are complete and
duly arranged based on the
processing guide.
06 Application shall be processed and
evaluated by the DOT.
07 Applicant shall be notified within
three (3) working days if there are
any deficiencies noted during final
evaluation
08 Upon full compliance with all
requirements, a certificate of
accreditation shall be issued by the
DOT duly signed by the
Undersecretary of Tourism Services
and Regional Offices if entity is
located in Metro Manila or the
Regional Director if it is located in the
Region.
Applicant shall file/submit application
and all supporting documents.
Applicant shall ensure that the
application form is properly filled-up
and the documents are complete and
duly arranged based on the
processing guide.
The DOT shall conduct inspection of
the establishment.
The DOT shall inform the applicant in
writing of the result of inspection
whether favorable or unfavorable
If the result is favorable, the DOT shall
process and evaluate the application.
If the result is unfavorable, applicant
may request for reinspection once
deficiencies are corrected.
Applicant shall be notified within three
(3) working days if there are any
deficiencies noted during final
evaluation.
Upon full compliance with all
requirements, a certificate of
accreditation shall be issued by the
DOT duly signed by the
Undersecretary of Tourism Services
and Regional Offices if entity is
located in Metro Manila or the
Regional Director if it is located in the
Region.
09 The applicant shall pay accreditation
and other related fees when
certificate is ready for release.
10 Applicant may request for IDs of its
personnel upon payment of P30.00
ID fee for each employee.
The applicant shall pay accreditation
and other related fees when certificate
is ready for release.
Applicant may request for IDs of its
personnel upon payment of P30.00 ID
fee for each employee
General Requirements
Legal
•
•
•
Financial
•
Physical
Other Documentary
Requirements
•
•
•
•
•
Requirement
Mayor's Permit/Municipal License
Business Name Certificate for Single Proprietorship
Articles of Incorporation/ Partnership & By-Laws for
Corporation/Partnership
Latest Income Tax Return and Audited Financial
Statements
Contract of Lease of office space/Certificate of Title
Application Form
List of Officials and Employees
Valid visa and labor permit for foreign nationals
Board Resolution xxx authorization for bonafide
employee to file/transact business with DOT
Additional Requirements for Accreditation of Accommodation Establishments and
Restaurants
1. Current room rates with food & beverage (f & b)
prices/menu
2. Comprehensive General Liability Insurance
3. Fire Safety Inspection Certificate
Additional Requirements for Accreditation of Tour Operators
Who may apply for accreditation as tour operator?
=> A resident Filipino citizen registered as a single or sole proprietorship
=> A partnership organized under the laws of the Philippines, at least 60% of its capital is
owned by Filipino citizens
=> Corporations organized under the laws of the Philippines, at least 60% of the subscribed
common or voting shares of stock of which is owned by Filipino citizens and the composition
of its Board of Directors being at least 60% Filipinos
=> Foreign individual/entity organized under Philippine laws with a minimum paid-in
equity/capital of Two Hundred Thousand U.S. Dollars (US$200,000) pursuant to the
provisions of the Foreign Investments Act of 1991, otherwise known as R.A. 7042.
1. Proof of P500,000 working capital
2. Proof of Inbound or local tour operations
(official receipts of bookings from DOT accredited hotels/resorts)
3. Tour packages with tariff rates
4. Copy of Surety Bond submitted to Local Government Unit (LGU)
5. General Manager shall have at least 3 years managerial
experience in tour operations
6. Bio-Data of two permanent staff who shall have at least 2 years
experience in tour operations
7. Office space requirements -should be located in a commercial
area, must be easily identifiable and shall be used exclusively for the tour
operation business.
8. For tour operators with branches - affidavit executed by the general manager
of the main office acknowledging the existence of the branch office,
assuming full responsibility of its operations and certifying that it is not
managed nor operated by other persons/ entities other than the duly
accredited employees and officers of the main office.
Additional Requirements for Accreditation of Tourist Transport Operators
• Land Transport
•
•
1. Land Transportation & Franchising Regulatory Board
(LTFRB) Franchise
2. Transportation rates
3. LTO Official Receipt and Certificate of Registration (OR/CR)
4. Insurance Policies (Third Party Liability & Personal Accident)
Water Transport
1. Certificate of Public Convenience and/or Provisional
Authority from Maritime Industry Authority (MARINA)
2. Certificate of Inspection by MARINA valid for one year
3. Certificate of Compliance with MARINA's MC 65/65A and 150
Air Transport
1. Franchise to Operate from Civil Aeronautics Board (CAB)
2. Certificate of Airworthiness of aircraft from
Air Transportation Office (ATO)
Additional Requirements for Accreditation of Tour Guides/ Tourism Frontliners
•
•
1. Attended/passed the seminar conducted by the DOT
2. Certificate of Good Health from a licensed government
physician
3. National Bureau of Investigation (NBI) Clearance
For Mountain/Cave Guides to include:
1. Certificate of training on basic life support from the Philippine National Red
Cross or its equivalent institution.
2. For Mountain Guides, a certification issued by the Mountain Guides
Association of the Phils., Inc. (MGAPI) or any other recognized
mountaineering organization by the DOT that the applicant has the necessary
skills, equipment & experience in guiding.
3. For Cave Guides, a certification issued by Phil. Cave Guides Association, Inc.
(PCGAI) or any other duly recognized caving organization by the DOT that
the applicant has the necessary caving skills, equipment and experience in
guiding.
For Taxi Drivers/Frontliners to include:
1. Police Clearance
2. Barangay Clearance
3. Driver's License
4. LTFRB Franchise/ OR/ CR
Additional Requirements for DOT Accreditation of Museum
1. Proof of membership with the National Committee on Museums.
Additional Requirements for Accreditation of Traininig Center
(for renewal only)
1. List of all training programs conducted during the previous year including the number of
employees and graduates.
2. List of successful graduates per training program including skills acquired and respective
places of employment.
Additional Requirements for Accreditation of Traininig Programs
1. Approval of programs by the Tourism Industry Board Foundation, Inc. (TIBFI)
Additional Requirements for Trainors/Faculty
1. Completed the Train-the -Trainors Program by the DOT and TIBFI. In lieu, must show
proof of experience & knowledge on subjects handled.
Additional Requirements for Accreditation of Professional Congress Organizers
1. Proof that the applicant has successfully organized & managed, promoted and/or
arranged in the past two (2) years at least five (5) national and/or international
conventions (Proof shall consists of written testimonials from Presidents & Chairmen of
the events claimed to have been handled.)
2. Office space must be located in a commercial district and easily identifiable.
Additional Requirements for Accreditation of Foreign Exchange Dealers
1. Office space requirements -it shall be located at the ground floor of a building in a
commercial area with pleasant & decent atmosphere; easily identifiable with a signage
and shall be exclusive for foreign exchange business.
Additional Requirements for Accreditation of Spa
1. Valid health certificate of all massage therapists.
2. Shall have at least one (1) DOH registered massage tharapist supervising a maximum of
20 massage attendants.
3. Fire Safety Inspection Certificate
4. Situated in a safe and reputable location with clean, calm and relaxing environment.
Additional Requirements for Accreditation of Galleries
1. Proof of membership with the National Committee on Culture and the Arts - Committee
on Independent Art Galleries.
Additional Requirements for Accreditation of Calesas
1. Proof that the driver has passed the seminar for calesa drivers conducted by the
Department.
2. Police and barangay clearance.
3. Certificate fo good health issued by a duly licensed physician for the calesa driver
4. Certificate of good health issued by a duly licensed veterinarian for the horse.
Accreditation Fees
•
Accreditation and other related fees
Type of Establishment
Accreditation Fee
Accommodation
Hotel de Luxe
PhP 2,700
First Class Hotel
2,400
Standard Hotel
2,000
Economy Hotel
1,400
Resort Class “AAA”
2,700
Resort Class “AA”
1,400
Resort Class “A”
Special Interest Resort
Tourist Inn
Apartel
Pension House
Motorist Hotel (Motel)
Travel and Tour Services
Tour Operator
Tour Guide/Mountain Guide/Cave
Guide
Professional Congress Organizer
Tourist Transport Operator
Bus
Coaster
Van
Car
Air Transport
Water Vessel
Tourism Related Establishments
Spa
Restaurants, department store,
tourist shop, sports & recreational
center, museum, gallery, training
program, trainors, training center,
foreign exchange dealer,calesa,
homestay
Sticker big
Sticker small
Identification Card (ID)
700
700
700
500
300
300
1,400
150
700
350
200
150
100
1,400
1,400
1,000
300
100
50
30
Grounds For Cancellation of Accreditation
1. Making false declaration or statement or making use of any such declaration or
statement or any document containing the same or committing fraud or any act of
misrepresentation for the purpose of obtaining the issuance of accreditation.
2. Failure to maintain DOT standards and requirements for the operation of the
establishments;
3. Failure to comply with or contravene any of the conditions set forth in the rules and
regulations governing the accreditation of accommodation facilities, tourism related
establishments and travel and tour services;
4. Violation of or non-compliance with any provisions of the Rules, Orders, Decisions,
Circulars issued by DOT and other concerned agencies;
5. Allowing or permitting the establishment or its facilities to be used for illegal, immoral
or illicit activities;
6. Conviction of a crime involving moral turpitude, dishonesty, misrepresentation or
misconduct; and
7. Any other act or omission that works against the interest of the tourism industry.
Annex I
Classification and Standards: Hotels and Resorts
DEPARTMENT OF TOURISM
Classifications and Standards (Hotels and Resorts)
Hotels: Hotels are classified and certified by the Department of Tourism. Hotels falling
hereunder have complied with its minimum standards in the operation of the establishment
concerned to ensure the safety, comfort, and convenience of tourists.
The following are the minimum requirements for the operations of the different hotel
classifications in the Philippines when accredited by the Department of Tourism:
Bed Rooms
Economy
Class
Standard
Class
First Class
De Luxe Class
• rooms are at
least eighteen
(18) sqm
• private
bathroom with
shower and 24hour cold
running water
and hot water at
selected hours
• cold drinking
water
• room service
• rooms are at
least eighteen
(18) sqm
• private
bathroom with
shower and 24hour cold
running water
and hot water at
selected hours
• telephone
• cold drinking
water
• room service
• rooms are at least
twenty-five (25)
sqm
• private bathroom
with bathtub and/or
shower and 24hour running hot
and cold water
• telephone
• radio, television
or piped-in music
• cold drinking
water
• 24-hour room
service
• Sundry Shop
•Function/Conferen
ce Facilities
• Swimming Pool
• Tennis, Golf,
Squash or Gym
Facilities or a tie-up
within the vicinity of
the hotel
• Live
entertainment
• Barber Shop,
Beauty Parlor and
Sundry Shop
• DOT-accredited
Travel
Agency/Tour
Counter
• Porter
• Foreign
Exchange
• rooms are at least
twenty-five (25)
sqm
• private bathroom
with bathtub and
shower and 24hour running hot
and cold water
• telephone
• radio and
television
• cold drinking
water
• in-room
refrigerator and
well-stocked minibar
• 24-hour room
service
•Function/Conferen
ce Facilities
• Swimming Pool
• Tennis, Golf,
Squash or Gym
Facilities
• Live
entertainment
• Barber Shop,
Beauty Parlor and
Sundry Shop
• DOT-accredited
Travel
Agency/Tour
Counter
Facilities
Services
• Porter
• Mailing
• Long
• Porter
• Foreign
Exchange
• Porter
• Foreign
Exchange
Distance/Overse
as calls
• Telex
• Laundry and
Dry Cleaning by
arrangement
• Medical
Services upon
request
• Mailing
• Long
Distance/Overse
as calls
• Telex
• Laundry and
Dry Cleaning by
arrangement
• Parking
• 24- hour
Medical Services
• Airport
Transfers
• Mailing
• Long
Distance/Overseas
calls
• Left Luggage and
Safety Deposit
Boxes
• Telex and
Facsimile
• Laundry and Dry
Cleaning
• Parking/Valet
Services
• Medical Services*
• Limousine
Service, Airport
Transfers
available 24 hours
• Mailing
• Long
Distance/Overseas
calls
• Left Luggage and
Safety Deposit
Boxes
• Telex and
Facsimile
• Laundry and Dry
Cleaning
• Parking/Valet
Services
• Medical Services*
• Business Center
• Limousine
Service, Airport
Transfers
available 24 hours
Resorts: Resorts are classified and certified by the Department of Tourism. Resorts falling
hereunder have complied with its minimum standards in the operation of the establishment
concerned to ensure the safety, comfort, and convenience of tourists.
The following are the minimum requirements for the operation of the different resort
classification in the Philippines when accredited by the Department of Tourism:
Minimum
Requirements
Class A
Class AA
Class AAA
Special Interest
• free parking for
guests (if
applicable)
• Economy class
guest rooms
• public
washrooms
• at least two (2)
sports and
recreational
facilities
• employee
facilities
• at least one (1)
food & beverage
outlet
free parking for
guests (if
applicable)
• Standard class
guest rooms
• public
washrooms
• at least three (3)
sports and
recreational
facilities
• conference and
convention
facilities
• employee
facilities
• in a suitable
location free of
noise,
atmospheric, and
• marine pollution
• free parking for
guests (if
applicable)
• First Class
guest rooms
• public
washrooms
• at least four (4)
sports and
recreational
facilities
• conference and
convention
facilities
• employee
facilities
• camp and
ground sites shall
be distant from
any form of
nuisance and
shall not
endanger any
sources of water
supply or other
natural resources
• spacious guest
rooms with
comfortable
bed/s
• separate clean
toilet and bath
facilities for Male
and Female
guests with
running water (if
available in the
area)
GENERAL RULES ON THE OPERATION AND MANAGEMENT OF RESORTS
Maintenance and Housekeeping. Maintenance of all sections of the resort shall be of
acceptable standard, and shall be on a continuing basis, taking into consideration the quality
of materials used as well as its upkeep. Housekeeping shall be of such a standard ensuring
well-kept, clean and pollution-free premises. A vermin control program shall be regularly
maintained in all areas of the resort. Regular and hygienic garbage disposal systems shall
be maintained. Sanitation measures shall be adopted in accordance with the standards
prescribed under P.D. 856, the Code on Sanitation of the Philippines.
Lifeguard and Security. All resorts shall provide the services of a sufficient number of welltrained lifeguards duly accredited by either the Philippine National Red Cross, the Water Life
Saving Association of the Philippines or any recognized organization training or promoting
safety objectives, and adequate security whenever there are guests.
Medical Services. All resorts shall provided the services of a physical, either on-call or on
full-time basis, depending on their volume of operation and accessibility to hospitals or
medical centers. In addition, resorts shall employ adequate first-aiders who have completed
a course in First Aid duly certified by the National Red Cross or any other organization
accredited by the same. Adequate First Aid medicines and necessary life-saving equipment
shall be provided within the premises.
Fire-Fighting Facilities. Fire-fighting facilities shall be provided in accordance with the Fire
Code of the Philippines.
Signboards. Appropriate signboards shall be conspicuously displayed outside the
Establishment showing clearly the name and classification of the resort as determined by
the Department of Tourism
Beach and Lakeside Resort. There shall be placed on a beach or lakeside resort an
adequate number of buoys which shall be spread within the area to be determined by the
Resort Owner or keeper as safe for swimming purposes, and in compliance with existing
government regulations and/or local ordinances on the placing of such buoys.
Designated Areas. the distance fronting the area of the resort with adequate number of
buoys as provided in the preceding section shall be designated as the area for swimming
purposes, and no boat, banca, or other crafts shall be allowed to enter the area so
designated. The Resort Owner or his duly authorized representative shall be empowered
under these rules to enforce the above, and shall likewise designate a portion of the beach
front to be used exclusively for loading and unloading of resort guests, unless otherwise
designated elsewhere by rules and regulations specific to the area
Precautionary Measures
In no case shall resort management allow swimming at the beach front beyond 10:00 pm
and appropriate notice shall be posted to inform guests of such.
night swimming at the pool shall be allowed only if there are adequate lifeguards on duty
and when the pool premises and sufficiently lighted.
Management shall post sufficient and visible signs in strategic areas in the resort or at the
beach to warn guests of the presence of artificial or natural hazards, danger areas, or
occurrences thereat.
Prohibited acts and practices
No pets or animals shall be allowed to swim/bathe along beaches. Likewise, "pukot" fishing
and washing of fishing nets shall be strictly prohibited in beach resorts.
Resorts owners shall prohibit ambulant vendors from peddling their wares within the resort
premises in order to provide their guests a certain degree of privacy to enable them to relax
and enjoy their stay thereat.
Littering in resorts shall be strictly prohibited. resort owners shall keep their premises clean
and shall adopt their own anti-littering measures.
without prejudice to existing ones, no resort shall be established or constructed within a
radius of five (5) kilometers from any pollution-causing factory or plant.
BIBLIOGRAPHY
Accredited Tourism Business (December 2003). Northern Territory Tourism Accreditation
Program: The Information Book. Australia. N.p.
A Tourism Development Strategy for North Tipperary (January 2004). Final Report. Page 1723.
European Commission (2003). Structure, performance and competitiveness of European
Tourism and its Enterprises. Luxembourg: Office for Official Publications of the
European Communities. 53 pp.
David Nelson and Chris Jackson (2003). AGCAS Graduate Prospects: Hospitality Sector. N.p.
DBRS (2003). Income Fund Report: Legacy Hotels Reit. Page 1-10
Joy F. Canono. Philippine Market Blends Eastern Traditions, Western Tastes. Agexporter.
Page 1-6. N.d
Ma. Ramona C. Singian (2002). Philippines Retail Food Sector Report 2002. USDA Foreign
Agricultural Service Global Agriculture Information Network. Page 1-16
World Tourism Organization Business Council. Marketing Tourism Destinations Online –
Strategies for the Information Age. Page 1-16. N.d
J. Richard McElyea and Gregory L. Cory. Resort Investment and Development an Overview of
an Evolving Market. ERA Issue Paper. Page 1-11. N.d
QueensLand Government. Department of Employment, Training and Industrial Relations –
Workplace Health & Safety (1999). Industry Issues: Industry Target Audit Program
Summary Reports . Page 1-3
Mike Watson (2002). Tourism Framework for Action 2002:2005. LEAD. Page 1-35
Tourism & Leisure Partners for Coleraine Borough Council (2001). Tourism Development
Strategy for the Borough of Coleraine 2001-2010. Coleraine Borough Council Tourism
Development Plan. Page 1-70
Salavador P. Catelo (2002). Pacific Food System Outlook 2002-2003: The Philippines.
University of the Philippines. Page 48-52
Rob Tonge & Associates, Proactive Tourism Services, The National Centre for Tourism (2000).
Tourism Development Strategy. Maroochy Shire Council. Page 1-12
MCA Group (2003). Philippines Business Guide: Philippines Weekly Report. Page 1-14
Derry City Council (2002). Tourism Development Strategy & Action Plan 2002-2006. Economic
Development Policy Paper. Page 1-16
International Labor Organization (2001). Human Resources Development, employment and
globalization in the hotel catering & tourism sector. Geneva. Page 1-140
LEEDS Initiative (2003). A Draft Tourism Strategy for LEEDS 2002-2007. Page 1-53
Iain T. Christie & D. Elizabeth Crompton (2003). Republic of Madagascar: Tourism Sector
Study. Page 1-141
Ruben G. Mercado (2002). Regional Development in the Philippines: A Review of Experience,
State of the Art and Agenda for Research and Action. Philippine Institute for
Development Studies. Page 1-86
PROGRAM MANAGEMENT
Martina Vahlhaus, Program Manager
H 10th Floor, German Development Center, PDCP Bank Centre Building,
V.A. Rufino corner L.P. Leviste Streets, Salcedo Village, Makati City
( +63 2 8123165 (local 46)
* SMEDSEP c/o GTZ-Office Manila, P.O. Box 2218 MCPO Makati City, Philippines
8 smedsep@mozcom.com
Training Services
Christian Widmann
H 4th Floor, TESDA Central Office, East Service Road, Taguig, Metro Manila
( +63 2 8938297, 8405035, 8179095 (fax)
8 tesdagtz@mozcom.com
Business and Financial Services
Markus Ehmann, Business Development Services
Harald Neimeier, Financial Services
H 38 Acacia Street, Lahug, Cebu City, 6000
( +63 32 4122256, 2344494 (telefax)
8 masmedsep@globelines.com.ph
Deutsche Gesellschaft für
Technische Zusammenarbeit
(GTZ) GmbH
Technical Education and
Skills Development
Authority
Department of Trade
and Industry
GFA Management

Subsector Analysis of the Tourism Industry in Negros

Transcription

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