Subic bay stakes claim to mice market

TRAVEL MONITOR

A former medical equipment storage warehouse converted into a convention and exhibition centre in a mere six months is playing a critical role in helping this former US military base become a major player in the Philippines' travel and tourism promotion efforts.

The centre last week played host to more than 350 delegates at MICECon 2010, the Philippines' annual caucus of meeting, incentivs, convention and exhibition organisers, and will soon host 6,000 Filipino accountants for their annual convention.

"Last year more than 100 events were hosted with 60,000 participants. It's a good start for us. We are not yet a major destination but I believe we can start small and slowly expand," said Armand Arreza, the Subic Bay Metropolitan Authority (SBMA) administrator.

Mr Arreza said convention delegates are pouring an estimated US$10-12 million into the local economy in direct expenditure on hotels, food, shopping and visiting attractions.

The convention centre itself used to be the warehouse of a Taiwanese company that made medical equipment and clothes.

According to Mr Arreza, the SBMA had bid a year earlier to host the 2007 Philippines' annual advertising congress. Nine months before the event, it had no convention centre and was planning to erect a large makeshift tent. But six months before the advertising congress, the Taiwanese company went bankrupt and offered the warehouse for sale. That proved to be a stroke of luck; the warehouse was fixed up well enough to host the congress.

Since then, it has undergone another $8 million worth of refurbishments, helping to promote the area as a viable Mice destination. The ad congress returned last year and the SBMA is pitching to bring it back again in 2011.

Already well equipped with an international airport that attracts healthy low-cost and charter airline traffic, Subic Bay now has 2,000 hotel rooms with another 1,000 due over the next three years. A new expressway has put it within a smooth two-hour drive from Manila.

"The story of Subic Bay continues to evolve," Mr Arreza said. "We were not even on the radar screen but now, top executives of major multinationals are coming here for conventions and planning major investments of their own in warehouses and logistics centres. This former warehouse has paid remarkable dividends."

Tourism Secretary Joseph "Ace" Durano, said he hoped MICECon would help the country's convention sector gain the focus it needs to start attracting business from around Asia-Pacific.

He said budgetary constraints had forced the Department of Tourism to "resist the temptation to try to do everything and then end up doing nothing. ... We disciplined ourselves and decided to focus our efforts on specific markets, and then develop the products suited to those markets."

Indeed, the Philippines' tourism industry fared well last year, one of the few destinations to record growth in both domestic and international visitors.

According to Tourism Undersecretary Oscar Palabyap, international arrivals rose from 1.09 million in 2008 to 1.12 million in 2009. The top markets were South Korea (19.89%), followed by Japan (12.19%), the US (11.55%), Europe (10.70%) and China (6.93%).

Developing air access is a key strategy. In the past year, charter flights have emerged between Shanghai, Hangzhou and Guangzhou direct to Kalibo and Cebu by Shanghai Airlines, China Southern Airlines, Air China and Philippine Airlines. China Airlines also links Taipei and Kaohsiung to Kalibo and Laoag. New air services agreements have also been signed with 13 other countries including Thailand.

Mr Palabyap said new Tourism Enterprise Zones were also attracting investments. Roughly $773 million worth of tourism projects were endorsed in 2009, with 15,567 projected jobs. Of the total, $617 million went into the TEZs, $80.6 million to hotels, $39.8 million in spas and $23.4 million in resorts.

As well, he said, the new Tourism Act would clearly delineate the responsibilities of state agencies and improve co-operation with the private sector in formulating marketing and development plans.

Imtiaz Muqbil is executive editor of Travel Impact Newswire, an e-mailed feature and analysis service focusing on the Asia-Pacific travel industry.