College of Arts and Sciences

San Beda University

(Economics Department)

BUDGET ANALYSIS:
Department of Tourism

To be submitted to: Prof. Deri

Submitted by: Evan Gaubert P. Paz

MANDATE

The DOT is the primary planning, programming, coordinating, implementing and

regulatory government agency in the development and promotion of the tourism industry, both
domestic and international, in coordination with attached agencies and other government
instrumentalities. It shall instill in the Filipino the industry’s fundamental importance in the
generation of employment, investment and foreign exchange.

VISION
Position the Philippines as a premier tourist destination in Asia
MISSION
The Department of Tourism shall be primary government agency charged with the
responsibility to encourage, promote, and develop tourism as a major socio-economic activity to
generate foreign currency and employment and to spread the benefits of tourism to both the
private and public sector

HISTORY

The Philippines is the third largest English speaking country in the world. It has a rich history
combining Asian, European, and American influences. Prior to Spanish colonization in 1521, the
Filipinos had a rich culture and were trading with the Chinese and the Japanese. Spain's
colonization brought about the construction of Intramuros in 1571, a "Walled City" comprised of
European buildings and churches, replicated in different parts of the archipelago. In 1898, after
350 years and 300 rebellions, the Filipinos, with leaders like Jose Rizal and Emilio Aguinaldo,
succeeded in winning their independence.

In 1898, the Philippines became the first and only colony of the United States. Following the
Philippine-American War, the United States brought widespread education to the islands.
Filipinos fought alongside Americans during World War II, particularly at the famous battle of
Bataan and Corregidor which delayed Japanese advance and saved Australia. They then waged a
guerilla war against the Japanese from 1941 to 1945. The Philippines regained its independence
in 1946.

Filipinos are a freedom-loving people, having waged two peaceful, bloodless revolutions against
what were perceived as corrupt regimes. The Philippines is a vibrant democracy, as evidenced by
12 English national newspapers, 7 national television stations, hundreds of cable TV stations,
and 2,000 radio stations.
Filipinos are a fun-loving people. Throughout the islands, there are fiestas celebrated everyday
and foreign guests are always welcome to their homes.

ATTACHED AGENCIES

1. Tourism Promotions Board (TPB)

2. Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

3. Duty-Free Philippines Corporation (DFPC)

4. Intramuros Administration

5. National Parks Development Committee

6. Nayong Pilipino Foundation

7. Philippine Retirement Authority

SECRETARIES

NAME START END PRESIDENT

Jose D. Aspiras May 11, 1973 February 25, 1986 Ferdinand Marcos
Jose Antonio U.
February 26, 1986 April 14, 1989
Gonzales
Narzalina Z. Lim* April 15, 1989 June 7, 1989 Corazon Aquino
Peter D. Garrucho June 8, 1989 January 8, 1991
Rafael M. Alunan III January 9, 1991 February 16, 1992
September 10,
Narazalina Z. Lim February 17, 1992
1992
September 11,
Vicente J. Carlos July 3, 1995
1992 Fidel V. Ramos
Eduardo P. Pilapil July 4, 1995 March 28, 1996
Evelyn B. Pantig* March 29, 1996 April 7, 1996
Mina T. Gabor April 8, 1996 June 30, 1998
Gemma C. Araneta July 1, 1998 January 19, 2001 Joseph Ejercito Estrada
Richard J. Gordon January 20, 2001 January 4, 2004
Robert Dean S. Barbers January 5, 2004 February 25, 2004
Roberto M.
February 26, 2004 August 31, 2004
Pagdanganan Gloria Macapagal-
November 29, Arroyo
Evelyn B. Pantig* September 1, 2004
2004
November 30,
Joseph H. Durano June 30, 2010
2004
Alberto Lim June 29, 2010 August 12, 2011
Benigno S. Aquino III
Ramon R. Jimenez, Jr. September 1, 2011 June 30, 2016
Wanda Corazon Teo June 30, 2016 Incumbent Rodrigo Roa Duterte

Programs of DOT

1. Visit Islands Philippines 1994

2. Miss Universe 1994
3. Florikultura '98 - international horticulture exhibition
4. Expo Pilipino 1998 - Philippine Centennial International Exposition
5. 1998 Philippine Centennial Celebrations
6. Visit Philippines 2003
7. WOW (World Of Wonders) Philippines
8. "Pilipinas Kay Ganda" slogan and campaign 2010
9. It's More Fun in the Philippines!
10. Visit the Philippines Year 2015
11. Visit the Philippines Again 2016
12. Miss Universe 2016 (65th Miss Universe)
 BUDGET ANALYSIS FOR DSWD

DOT BUDGET RANGE

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Maximum Minimum Average BUDGET

Last December 2017, the Average Daily Expenditure (ADE) for the month in review is Php
8,423.98. The Average Length of Stay (ALoS) of tourists in the country is recorded at 7.11
nights. On the other hand, Average per Capita Expenditure of visitors for the month is pegged at
Php 59,894.48. Receipts for the month of December aggregated to about Php 33,406.72 million,
72.39% higher than the earnings in December
last year of about Php 19,378.31 million. The
country welcomed 613,372 tourists for the
month of December, showing growth of
6.37% from the 576,638 arrivals in the same
month last year. This month recorded more
than 600,000 arrivals and could be attributed
to influx of visitors during the holidays. By
sub-regional grouping, East Asia supplied the
majority of arrivals with a share of 49.16%
corresponding to 301,515 visitors. This
volume increased by 16.74% compared to December last year. Korea, Japan and China which
belong to this region accounted for 45.13% of the total volume. North America provided the
second biggest influx of tourists with 124,546 arrivals, constituting 20.31% of the total tourist
traffic. The ASEAN region comprised 6.60% share of the total equivalent to 40,501 arrivals.

Arrivals to the Philippines reached a new milestone of surpassing six million arrivals with
6,620,908 visitor count. This volume registered an increase of 10.96% from the 5,967,005 count
for the same period last year.

Consistent positive growth is

observed throughout the year. The
month of January recorded the
biggest volume (631,639 arrivals)
while the highest growth was
registered in the month of April
(+19.83%).
 Maximum Minimum Average DOT BUDGET

80

60

40

20

-20

-40
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
The Department of Tourism (DOT) is targeting to attract some 6.5 million in foreign

visitor arrivals and 73.3 million domestic tourists in 2017. This developed even as the

Department of Budget and Management (DBM) has reduced the DOT’s appropriations in 2017

by 26 percent to P2.23 billion, from the latter’s almost P3-billion budget this year. Of this

amount, some P300 million will be allocated for a branding campaign program, a 74-percent cut

from the P1.15 billion allocated this year. The DBM’s proposed National Expenditure Program

(NEP) for 2017 also show no budgetary support for the Tourism Promotions Board (TPB), the

marketing arm of the DOT, and responsible for selling the Philippines and its destinations to

tourists here and abroad. A government corporation, the TPB was allocated a P500-million

budget by the DBM, as well as a P1.64-billion Tourism Promotions Fund for 2016, as mandated

by Republic Act (RA) 9353, or the Tourism Act of 2009. For 2017, the DOT aims to increase the
tourism sector’s direct gross value-added by 9 percent to some P1.3 trillion, while adding 2

percent in the number of people employed in the sector, for a total of 5.3 million jobholders.

Special provisions in the DOT budget, however, include a P4.6-million Tourism

Development Fund (TDF) to be used “for the development, promotion and marketing of tourism
in the country,” which is provided in RA 9353. Said fund shall be sourced from accreditation,
identification card, sticker and code fees. Although the amounts of the TDF vary every year
depending on the DOT’s collections, agency insiders explained that the amount stated in the
2017. Under its 2017 performance targets, as stated in its proposed budget, the IA is supposed to
increase by 16 percent, the number of sites conserved and restored in its area. The IA is also
targeting a rise in the number of visitors to 954,000, from the projected 640,000 visitors in
2016. The IA’s budget was a drastic cut from its P443-million allocation this year, with some
P400 million largely funding the resettlement of the urban-poor communities out of the district.

The P1-billion budget for “branding campaign program” was part of the P3,376,457

budget proposed by the agency for 2018. The appropriations committee of the House of

Representatives began deliberations on the proposed appropriation on Wednesday. The proposed

branding budget is P700 million higher than the P300-million fund for 2017. In 2016, the budget

was higher, however, at P1.15 billion. The branding budget will be used, among others, for

global media placements (P100 million); country brand development (P300 million); media

study (P50 million); and global media influencers (P250 million), according to Tourism

Undersecretary Katherine de Castro

FORECASTING
DEPT DUTERTE % SHARE RANKING
BUDGET
DA 53,336,259,000 2.63 8
DAR 9,533,430,000 0.47 15
DBM 2,135,132,000 0.11 18
DepEd 553,312,832,000 27.32 2
DOE 1,263,227,000 0.06 20
DENR 27,110,729,000 1.34 9
DOF 19,317,544,000 0.95 12
DFA 20,319,813,000 1.00 11
DOH 107,299,569,000 5.30 6
DILG 170,763,865,000 8.43 3
DOJ 18,465,223,000 0.91 13
DOLE 11,140,284,000 0.55 14
DND 149,698,732,000 7.39 4
DPWH 637,864,483,000 31.49 1
DOST 21,020,142,000 1.04 10
DSWD 141,814,436,000 7.00 5
DOT 3,483,737,000 0.17 18
DTI 5,861,839,000 0.29 16
DOTC 66,339,817,000 3.28 7
DICT 5,371,343,000 0.27 17
TOTAL 2,025,452,436,000
DEPT PNOY BUDGET % SHARE RANKING
DA 48,447,476,000.00 3.24 7
DAR 10,132,358,000.00 0.68 15

DBM 1,385,609,000.00 0.09 18

DepEd 411,905,257,000.00 27.57 1

DOE 795,440,000.00 0.05 19

DENR 21,843,120,000.00 1.46 9

DOF 18,742,524,000.00 1.25 11

DFA 20,675,618,000.00 1.38 10

DOH 123,510,788,000.00 8.27 4

DILG 124,229,290,000.00 8.31 3

DOJ 12,966,075,000.00 0.87 14

DOLE 18,271,757,000.00 1.22 12

DND 117,521,116,000.00 7.87 5

DPWH 384,287,164,000.00 25.72 2

DOST 18,029,275,000.00 1.21 13

DSWD 110,816,621,000.00 7.42 6

DOT 3,619,744,000.00 0.24 17

DTI 4,189,316,000.00 0.28 16

DOTC 42,680,486,000.00 2.86 8

DICT 0.00

TOTAL 1,494,049,034,000