Market Assessment

GTZ Philippines SME Development for Sustainable Employment Program, Tourism Sector Analysis, 2005

    SMEDSEP (Small and Medium Enterprise Development for Sustainable Employment Program) is a technical cooperation program between the Republic of the Philippines and the Federal Republic of Germany. It is an integrated approach to the development of the private sector in the Philippines with a regional focus on the Visayas. SME stakeholders in Negros Occidental selected tourism as the pilot sector because it seems to offer the greatest potential for income and employment generation. This study represents the next step in the process, namely a sector analysis of the Negros Occidental tourism industry. A major sugar-producing region, Negros Occidental diversified into other industries, including tourism, in the 1980s when low world sugar prices devastated the local economy. Negros Occidental ranks 14th (2002 data) among all Philippines provinces in terms of number of inbound tourists, more than 90% of whom are Filipino. The tourism industry is dominated by micro, small, and medium enterprises with a wide variance of product and service delivery. The SMEDSEP sector analysis focuses on the following five subsectors: 1.) food service, 2.) travel agencies/tour operators, 3.) accommodation, 4.) resorts, and 5.) transport operators. It analyzes each subsector separately and proposes program interventions for the sector as a whole.

    Summary of results
    The main issues and challenges facing the industry are:
    - The current downward trend in average expenditure per visitor.
    - The need for a more effective and cohesive image, marketing positioning and promotion.
    - The need to expand the tourist season and reduce seasonality.
    - Wide variances in the quality of products and services and the need to align these to market requirements and standards.
    - Weak demand and supply of support services needed to improve performance of tourism enterprises and their workforce.
    - The need to create industry synergy and higher level cooperation between and among public and private stakeholders.
    - The need to strengthen environmental management.
    The paper proposes interventions to address these issues under the categories of: institutional development/planning, product and infrastructure development, promotion and market development and quality and competitiveness improvement.

    Associated Activities and Documents
    Market Assessment
    »GTZ Philippines 2002
    »GTZ Philippines SME Development for Sustainable Employment Program, Cebu IT Sector Analysis, 2004
    Programme Design
    »GTZ Philippines SME Development for Sustainable Employment Program, 2005
    »Philippines SME Development and Sustainable Employment Promotion - Tourism Sector, GTZ, GFA
    »SME Development for Sustainable Employment Program (SMEDSEP) Philippines, GTZ 2003-2011
    Impact Assessment
    »Philippines SME Development and Sustainable Employment Promotion - Monitoring Manual, GTZ, GFA 05