|Project Name||Improving Competitiveness in Tourism|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Industry and trade - Industry and trade sector development
|Gender Equity and Mainstreaming|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||An increase in foreign tourist arrivals|
|Description of Outcome||An improvement in competitiveness of the Philippines tourism sector|
|Progress Toward Outcome||Expected outcomes of the project: The project aims to improve the competitiveness of the tourism sector and create more job opportunities. These will be measured by key indicators of the sector such as the Philippines' ranking of the World Economic Forum's Global Tourism and Travel Competitiveness index and employment in the sector.|
|Description of Project Outputs||
Regulatory impact assessment program implemented
Hotel Quality Assurance and Accreditation System Implemented
Tourism Industry Skills Development Program and matching grants fund developed and piloted in four regions
|Status of Implementation Progress (Outputs, Activities, and Issues)||
All activities were completed end of December 2016.
Accomplishments of the project to date:
Output 1: Regulatory Impact Assessment
- DOT has completed four Regulatory Impact Statements (RIS) for the following regulations 1) Rules and Regulations Governing the Business of Sports Scuba Diving in the Philippines, 2) Cost Recovery Fees for DOT Hotel Accreditation, 3) Marine Wildlife Interaction Guidelines and 4) regulations in the administration of the Travel Tax.
- 400 personnel were trained in RIA from DOT, attached agencies, LGUs, DOLE, NEDA.
- The DOT RIA Guidelines were published in August 2014.
- A Business License and Permits Survey (BLPS) was completed.
Output 2: Hotel and Resorts Quality Assurance and Accreditation System
- Training was extended to 100 DOT Assessors, Third Party Assessors, Regional Directors and other DOT personnel on quality assessment
- Additional criteria component for Service, Hospitality, Efficiency, Friendliness and Food (SHEFF) were developed and tested.
- 141 Hotel, Apartment Hotels and Resorts assessed in pilot areas Bohol. Cebu, Davao and Palawan.
- Standards for accommodation not covered the by current hotel, resort and apartment hotel standards were formulated. These standards will cover tourist inns, pension houses, hostels, motels, vacation homes, bed and breakfast and other similar accommodation.
Output 3: Tourism Industry Skills Development Program
- Two phases of the Industry Skills Grant Scheme (ISGS) were successfully launched and implemented. A total of USD 1.2 million was awarded to 48 tourism establishments, associations and civil society organizations to train their workforce.
Phase 1 (Q3 2014-Q2 2015)
Total Grants Awarded $805,433
Average award per grantee $33,560
Total trained 5,212
Cost per trainee $155
Counterpart contribution 33%
Phase 2 (Q3 2015 - Q2 2016)
Total Grants Awarded $427,687
Average award per grantee $18,595
Total trained 3,197 (target)
Male 52 %
Cost per trainee $134
Counterpart contribution n.a.
- Many of the Businesses who have completed skills training programs under the first phase of the Scheme reported significant business benefits as well as improved skills and performance of employees. A sample selection of outcomes and business benefits from Phase 1 Grantees include:
- Reduction in food costs from of up to 47% leading to increased Gross Profit on Food Sales from the Restaurant.
- An increase of 10% in room sales over 12 months since training.
- New restaurant menus introduced and an increase of 11% in food and beverage sales.
- Reduction in customer complaints by 50% over 6 months as measured through customer satisfaction surveys.
- Increase in Customer satisfaction ratings ranging from a scale of 5% to 10% in a number of businesses following training.
- 47% of all Grantees report a higher score on Tripadvisor rating.
- A 5% increase in visitor numbers to tourism attractions
- 531 received TESDA certification NC II level in the fields of food and beverage services, housekeeping, front office skills and others.
- One hotel was subsequently certified as HACCP compliant.
- A Tourism Enterprise Skills Survey was carried out in 2014 to identify where skills deficiencies exist and how they might be impacting on business competitiveness across the sector.
- Tourism Sector Human Resource Development Strategy and Action Plan was elaborated in 2015.
A Regulatory Impact Assessment Study Tour participated by DOT officials was completed in May 2013 and pilot site for the TA was launched in Cebu, Bohol, Davo and Palawan.
Recruitment of Tourism Skills Development Firm completed and commenced in November 2013. First batch of awardees for the Skills Training Development Support was completed and awarded in May 2014. Submission of proposals for the second phase is now ongoing.
At the project's mid-term period, all three outputs have been successfully implemented. The majority of activities under the three output areas are being implemented as planned. Those activities not completed have been carried over to 2015. In summary, under Output 1, two out of ten RIS have been completed (Philippine Commission on Sports Scuba Diving Rules and Regulations Governing the Business of Sports Scuba Diving in the Philippines and a cost-recovery for DOT Accreditation System), 250 persons have been trained in regulatory impact assessment (RIA), and RIA Guidelines have been published. For Output 2, 141 hotels have been graded in a pilot of the Star Grading, Revised and published Accreditation Standards, Standards criteria for Service, Hospitality, Efficiency, Friendliness and Food (SHEFF) developed and tested, and 90 DOT and Third Party Auditors trained. Under Output 3 there has been great effort to build capacity of the regional facilitators as well as key DOT staff. The skills grant steering committee was formed, guidelines for the grant scheme were developed and one round of applications and approvals was executed. Twenty-five grants were awarded to a diverse group of tourism-related establishments in the selected four provinces. Lessons learned under round one have been incorporated into changes for round two that will improve the process.
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||A team of eight international consultants (total of 75 person-months) and nine national consultants (total of 120 person-months). International and national consultants will be recruited by the ADB through one firm to implement all activities under outputs 1 to 3 in accordance with ADB's Guidelines on the Use of Consultants by ADB and its Borrowers [2007 as amended from time to time].|
|Procurement||The DOT will provide office space with furniture and support services for the consultants, while office computers and supplies will be provided by the TA.|
|Responsible ADB Officer||Hattel, Kelly L.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
Department of Tourism
T. F. Valencia Circle T. M. Kalaw St., Rizal Park
|Concept Clearance||06 Nov 2012|
|Approval||05 Mar 2013|
|Last Review Mission||-|
|Last PDS Update||31 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Mar 2013||15 Apr 2013||15 Apr 2013||28 Feb 2017||31 Aug 2017||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||7,116,900.00||0.00||0.00||0.00||0.00||7,116,900.00||05 Mar 2013||5,742,590.93|
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$12.5 Million Grants to Create Jobs, Improve Tourism in the PhilippinesCreating more and better jobs in industries driving growth in the Philippines is the focus of two TA grants worth more than $12.5m that will fund a pilot youth job placement program and improve skills in the tourism sector.
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