TRAVEL TRENDS & FORECASTS (GLOBAL, ASIA PACIFIC & THE PHILIPPINES) Jocelyn Cheung, Services & Payments Analyst

Philippines Travel Exchange Educational Seminar – August 2017

ABOUT EUROMONITOR INTERNATIONAL

THE GLOBAL PERSPECTIVE

REGIONAL OVERVIEW

TRAVEL TRENDS IN PHILIPPINES

LOOKING AHEAD

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Research Coverage EUROMONITOR INTERNATIONAL

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Research Expertise

EUROMONITOR INTERNATIONAL

Alcoholic Drinks

Apparel

Automotive

Beauty and Personal Care

Consumer Appliances

Consumer Electronics

Eyewear

Fresh Food

Health and Wellness

Home and Garden

Home Care

Hot Drinks

Consumer Health

Luxury Goods

Nutrition

Packaged Food

Personal Accessories

Pet Care

Soft Drinks

Tobacco

Toys and Games

Tissue and Hygiene

Services

Consumer Foodservice

Institutional Channels

Consumer Finance

Retailing

Travel

Supply

Ingredients

Packaging

Economies

Business Dynamics

Cities

Economy, Finance and Trade

Industrial

Consumers

Lifestyles

Income and Expenditure

Households

Population Ethical Labels

Digital Consumer

ABOUT EUROMONITOR INTERNATIONAL

THE GLOBAL PERSPECTIVE

REGIONAL OVERVIEW

TRAVEL TRENDS IN PHILIPPINES

LOOKING AHEAD

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The world is increasingly looking to the east THE GLOBAL PERSPECTIVE

0

200

400

600

800

1,000

1,200

1,400

1,600

2008 2012 2017 2022

WesternEuropeNorth America

Middle Eastand AfricaLatin America

Eastern Europe

Australasia

Asia Pacific

Source: Euromonitor International from UNWTO

Mill

ion

tri

ps

OK

20% 23% 25% 28%

43% 40%

39%

36%

3.7% 2017 Global arrivals growth

4.1% 2017 Inbound receipts value growth

3.5% 2017 World GDP

*2017 are estimated figures

1.5billion

World arrivals by region in trips 2008-2022

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The New Consumerism drives global travel demand THE GLOBAL PERSPECTIVE

GIG ECONOMY

OLD IS THE NEW YOUNG

EXPERIENCE MORE

MINDFULNESS & WELLNESS

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Global mobile travel sales ride on the Experience-More megatrend THE GLOBAL PERSPECTIVE

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UK hits an online ceiling but plenty of room for growth elsewhere THE GLOBAL PERSPECTIVE

0

10

20

30

40

50

60

70

80

2010 2012 2014 2016 2018 2020 2022

% s

har

e

Online % of Travel Sales to Residents in Key Markets 2010-2022

United Kingdom

US

France

India

Germany

Japan

Russia

China

OK

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Travel review site

Metasearch Direct

bookings

Mobile travel

assistant

Mobile disruptors in Travel COMPETITION BETWEEN TECH AND TRAVEL PLAYERS

The Evolution of business models

OK

Peer-to-peer short-term rentals

Guidebooks & Trips

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Messaging, from communication to booking tool REGIONAL OVERVIEW

OK

Chatbots

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THE GLOBAL PERSPECTIVE

REGIONAL OVERVIEW

TRAVEL TRENDS IN PHILIPPINES

LOOKING AHEAD

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REGIONAL OVERVIEW

OK

6% CAGR 2012-2017 Inbound Arrivals

15% CAGR 2012-2017 Inbound receipts

Asia Pacific Tourism is on the up take

28% APAC share in International trips By 2022

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In most Asian countries, the majority of trips are domestic.. REGIONAL OVERVIEW

2017 number of trips

OK

7% 7% 7% 10% 14% 19% 20% 24%

99% 100% 99% 98% 93% 93% 93% 90% 86% 81% 80% 76%

Outbound vs Domestic

Outbound Domestic

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… and the top destinations for Asian travelers tend to stay within region REGIONAL OVERVIEW

Euromonitor International Travel 2017 edition data

OK

Singapore Hong Kong

China South Korea

Japan Taiwan Thailand Malaysia Indonesia Philippine India

#1 Malaysia China Hong Kong

Japan US China Malaysia Singapore Malaysia China UAE

#2 Indonesia Macau Thailand China South Korea

Japan Laos Thailand Singapore Singapore Saudi Arabia

#3 Thailand Japan Macau US China Macau Japan Indonesia Saudi Arabia

Hong Kong

Thailand

#4 China Taiwan Japan Philippine Taiwan South Korea

China China Thailand UAE US

#5 Australia Thailand South Korea

Thailand Thailand Hong Kong

South Korea

Japan China South Korea

Singapore

© Euromonitor International 16

Changing fortunes for China outbound THE GLOBAL PERSPECTIVE

OK

0

4,000

8,000

12,000

16,000

20,000

2012 2013 2014 2015 2016 2017

Destinations Benefiting from China Arrivals 2012-2017

Hong Kong, China Indonesia Japan

Malaysia Philippines South Korea

Taiwan Thailand Vietnam

Singapore

00

0 t

rip

s

39% JAPAN 2012-2017 CAGR

29% THAILAND 2012-2017 CAGR

© Euromonitor International 17

Increased connectivity

REGIONAL OVERVIEW

To edit

MALAYSIA Kuala Terengganu

Langkawi Kota Kinabalu

Penang

PHILIPPINES Cebu Caticlan Davao Kalibo Clark Iloilo Tacloban Bohol Palawan Bacolod

JAPAN Takamatsu Nagoya Ishigaki Fukuoka Osaka Kagoshima Hiroshima

THAILAND Chiang Rai

Chiang Mai Phuket

Krabi TAIWAN Hualien Kaohsiung Taichung

VIETNAM Hanoi Da Nang Nha Trang

INDONESIA Yogyakarta

Bandung Surabaya

Lombok Bali

SOUTH KOREA Busan Jeju

MYANMAR Yangon

LAOS Vientiane

CAMBODIA Phom Penh

Siem Reap

SINGAPORE

2nd tier city Rising destination

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Frugal innovation in lodging rises REGIONAL OVERVIEW

Developed markets include HK, JP, SG, KR, TW; emerging markets include IN, ID, MY, PH, TH, VN; excluded China for better comparison

* Value at fixed 2017 ex rates, current prices

Emerging markets

Mid-market hotels

Budget hotels

Short-term rentals

Developed markets

OK

0 2,000 4,000 6,000 8,000

USD million

2012 - 2017 2017-2022

02,0004,0006,0008,000

USD million

2012 - 2017 2017 - 2022

Luxury hotels

Forecast vs Historic Incremental Sales by Lodging Categories

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THE GLOBAL PERSPECTIVE

REGIONAL OVERVIEW

TRAVEL TRENDS IN PHILIPPINES

LOOKING AHEAD

6.3% ESTIMATED GDP GROWTH IN 2017

BEST ISLAND IN THE WORLD – PALAWAN ISLAND

NO.1

INCREASE IN NUMBER OF FOREIGN DIVE TOURISTS FROM 2012 TO 2017

60%

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Philippines tourism performance TRAVEL TRENDS IN PHILIPPINES

0

5

10

15

20

25

30

35

40

45

50

2012 2013 2014 2015 2016 2017

mill

ion

tri

ps

Inbound arrivals Domestic trips

9.4% CAGR 2012-2017 Inbound arrivals

14.3% CAGR 2012-2017 Domestic trips

ABOUT EUROMONITOR INTERNATIONAL

THE GLOBAL PERSPECTIVE

REGIONAL OVERVIEW

TRAVEL TRENDS IN PHILIPPINES

LOOKING AHEAD

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China leapfrogs the competition LOOKING AHEAD

0

20

40

60

80

100

120

140

2017 2018 2019 2020 2021 2022

bill

ion

tri

ps

Top Outbound Source Markets 2017-2022

China

USA

Germany

United Kingdom

France

Canada

Netherlands

Italy

Spain

8.4% CAGR 2017-2022 China Outbound Departures

6% Of the Chinese population Owning a passport according to Forbes 2016

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Winners Departures '000

2022 Ranking

2022

Ranking position change

2017/2022

Philippines 14,306 28 9

India 31,485 11 8

Vietnam 11,901 35 5

Indonesia 16,776 25 3

Malaysia 25,279 18 3

Singapore 27,876 13 3

China 127,776 1 2

Thailand 12,423 31 2

Netherlands 34,019 8 1

More Southeast Asian travellers LOOKING AHEAD

OK

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0

2

4

6

8

10

12

14

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Mill

ion

trip

s

Inbound arrivals 2018-2022 CAGR

Top 10 source markets in the Philippines continue grow further LOOKING AHEAD

%

8.2% 2017-2022 CAGR TOTAL ARRIVALS

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Strategies for success LOOKING AHEAD

INFRASTRUCTURE & CONNECTIVITY

COMPETITIVENESS & POSITIONING

SUSTAINABLILTY & FUTURE TRAVELLERS

CONTACT DETAILS

Jocelyn Cheung

Analyst, Services & Payments

jocelyn.cheung@euromonitor.com

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