46480-001: Improving Competitiveness in Tourism | Asian Development Bank

Philippines: Improving Competitiveness in Tourism

Sovereign (Public) Project | 46480-001 Status: Active

Project Details

Project Officer
Hattel, Kelly L. Southeast Asia Department Request for information
  • Philippines
  • Technical Assistance
  • Industry and trade
Project Name Improving Competitiveness in Tourism
Project Number 46480-001
Country Philippines
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8334-PHI: Improving Competitiveness in the Tourism Sector
Canada (CIDA) US$ 7.12 million
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
Project Outcome
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.
Implementation Progress
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

Female 48%

Male 52%

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)

Female 48%

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.

TA was financially closed on 31 August 2017.

Geographical Location Davao, Palawan, Province of Bohol, Province of Cebu
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
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
Executing Agencies
Department of Tourism
T. F. Valencia Circle T. M. Kalaw St., Rizal Park
Concept Clearance 06 Nov 2012
Fact Finding -
Approval 05 Mar 2013
Last Review Mission -
Last PDS Update 29 Sep 2017

TA 8334-PHI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Mar 2013 15 Apr 2013 15 Apr 2013 28 Feb 2017 31 Aug 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 7,116,900.00 0.00 0.00 0.00 0.00 7,116,900.00 05 Mar 2013 5,915,141.93

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
Improving Competitiveness in Tourism Technical Assistance Reports Feb 2013

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Contracts Awarded

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Procurement Plan

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