1. Small and Medium Enterprise Development
for Sustainable Employment Program
www.smedsep.ph
Facilitating the Set Up of
Negros Island Tourism, Inc. (NITI)
A Private Business Tourism Marketing Agency
August 2006

2. Written by:
Astrid Bessler, astrid.bessler@gmail.com
Edited by:
Carisa Aleta, ca-gtz@mozcom.com
Program Officer, SMEDSEP
Partner Information:
Negros Island Tourism, Inc. (NITI)
Bacolod Convention Plaza Hotel, Bacolod City
Ms Ruth Cruz, President
Mobile No.: +63(917)3015581
Email: tqplace@mozcom.com
Published by:
The Small and Medium Enterprise Development for
Sustainable Employment Program - www.smedsep.ph
10th Floor, German Development Center
PDCP Bank Center Building
V.A. Rufino cor. L.P. Leviste Streets
Salcedo Village, Makati City, Philippines
Ms. Martina Vahlhaus, Program Manager
martina.vahlhaus@gtz.de
Printed on: August 2006

3. Small and Medium Enterprise Development
for Sustainable Employment Program
www.smedsep.ph
Facilitating the Set Up of
Negros Island Tourism, Inc. (NITI)
A Private Business Tourism Marketing Agency
August 2006

4. TABLE OF CONTENTS
LIST OF ABBREVIATIONS........................................................................................ 3
FOREWORD.............................................................................................................. 4
1. INTRODUCTION.................................................................................................... 5
2. LOCAL CONTEXT: MAJOR POTENTIALS AND CHALLENGES .......................... 5
3. APPROACH ........................................................................................................... 6
3.1 Process and Interventions ................................................................................ 7
3.1.1 Sub-sector Selection and Validation .......................................................... 7
3.1.2 Key Informants Interview and Tourism Sector Analysis ............................. 8
3.1.3 Results of Sub-sector Analysis Validation and Baseline Study .................. 9
3.1.4 Tourism Expert’s Missions: Marketing Action Planning and Capacity-Build-
up of Key Actors.................................................................................................. 9
3.1.5 Set-up of Agency...................................................................................... 10
3.2 Contributions by Partners ............................................................................... 11
3.3 Expected Benefits........................................................................................... 12
4. SUCCESS AND RISK FACTORS FOR INTERVENTIONS ................................. 12
5. LOOKING AHEAD: A MODEL MECHANISM....................................................... 13
REFERENCES......................................................................................................... 14
ANNEXES ................................................................................................................ 15
Annex 1 - Memorandum of Agreement by the National Association of Independent
Travel Agencies (NAITAS).................................................................................... 15
Annex 2 - Baseline Data: Bacolod - Tourism Industry Bacolod ............................ 17
Annex 3 - Operational Phase of the Tourism Marketing Agency .......................... 19
Annex 4 - Marketing Plan for Tourism Marketing Agency (NITI)........................... 22
Annex 5 - NITI Certificate of Incorporation with the Securities Exchange
Commission.......................................................................................................... 33
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5. LIST OF ABBREVIATIONS
DTI - Department of Trade & Industry
GTH - Gifts, Toys & Houseware
GTZ - German Technical Cooperation
NAITAS - National Association of Independent Travel Agencies
NITI - Negros Island Tourism, Inc.
SME - Small- and Medium-Sized Enterprise
SMEDSEP - Small & Medium Enterprise for Sustainable Employment Program
TESDA - Technical Education & Skills Development Authority
TMA - Tourism Marketing Agency
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6. FOREWORD
Around the world, tourism development is seen as synonymous with jobs and economic
growth. In the Philippines, however, the tourism industry is still miles behind despite the
large potential of its beautiful islands to bring in investments and jobs. Both the private and
public sectors are keen to promote tourism, but getting them to recognize that they should
jointly come up with solutions is not a straightforward task. Often the help of an external
party, in this case the German Technical Cooperation (GTZ), to facilitate this dialogue
process can be helpful.
This paper aims to share GTZ’s experiences in facilitating the set-up of a private tourism
marketing agency to enhance the tourism market in the province of Negros Occidental,
Philippines. It illustrates a potential model on how growth catalysts such as GTZ are able to
effectively facilitate locally-owned multi-stakeholder processes built on a public-private
partnership framework that quickly produces benefits for all. A marketing agency created
from a facilitation process fills a gap for specialized services in the local market. A step-by-
step approach is described from a catalyst’s point of view in terms of supporting the
development of the tourism sector.
Thank you to all organizations and individuals who in one way or another have helped in
completing this study, particularly the members of Negros Island Tourism, Inc. who
generously gave their time to the project, the Department of Trade and Industry (DTI), as
well as GTZ Advisers Markus Ehmann, Lorenzo Templonuevo and Rita Pilarca. May this
report serve as a guide to other donors in setting up a similar endeavor in partnership with
both the public and private sector.
Martina Vahlhaus
GTZ Program Manager
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7. 1. INTRODUCTION
Government officials, private sector actors and development professionals increasingly
recognize that as they confront demanding challenges in a globalized economy, these can
be more effectively met by building partnerships. In private sector development, GTZ’s
development partnerships with public and private sector players engage in building markets
for business services intended to help local enterprises remain competitive in the market.
The overall goal of the GTZ-Small and Medium Enterprise Development for Sustainable
Employment (SMEDSEP) Program in the Philippines is to harness entrepreneurial potential
and to encourage competition. SMEDSEP’s strategy focuses on pilot sectors on service
market development in priority provinces. In the priority province of Negros Occidental, a
sub-sector validation process led to the selection of tourism as the pilot sector, wherein the
program developed a facilitation approach for multi-stakeholder consensus-building
processes. Using a public-private partnership framework, the approach resulted in the
creation of a private tourism marketing agency.
By examining the potentials and challenges of the tourism industry in Negros Occidental and
describing GTZ’s approach and experiences, which led to the establishment of such a
marketing agency, this paper hopes to help donors and development professionals in
replicating similar experiences. It is primarily based on workshop and mission reports, a
sub-sector analysis of the tourism industry in Negros Occidental, and stakeholder interviews.
The experiences portrayed are still in an infantile stage as the tourism marketing agency had
just formally registered at the time of documentation.
2. LOCAL CONTEXT: MAJOR POTENTIALS AND CHALLENGES
To give insight on the local tourism context, its main potentials will be briefly presented,
followed by a description of the core challenges.
The province of Negros Occidental is privileged to be gifted with abundant natural and man-
made tourism resources and a fairly competitive infrastructure in terms of quality and
capacity. Bacolod, the province’s capital city, has established itself as a convention centre of
superior standard outside of the greater metropolitan area of Manila. Moreover, a varying
landscape, an attractive coastline and a rich cultural heritage have led to the creation of
tourism establishments all over the province. Within the last 10 years especially, many
tourism-related small and medium-sized enterprises (SMEs) have sprung up. Moreover, the
province is particularly well-known for its cultural events and festivals. Negros Occidental’s
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8. tourism product – i.e. as a leisure tourism destination – has increasingly been gaining
momentum though a variety of tourism attractions remain marginally or not at all used. There
is potential, for example, for cultural sightseeing, diving and island discovery, volcano
trekking, and other nature discovery sports.
One of the core problems for the tourism industry in Negros is the seasonality of tourist
arrivals, as manifested in irregular and highly fluctuating room occupancy rates topped with
a current downward trend in average expenditure per visitor. At a time when tourists are
merely trickling in the province, the industry is underexploited and faces the difficulty of
operating profitably. In order to improve the current situation, Negros Occidental has to be
made known as a year-round tourism destination. The absence of tourism branding,
destination marketing and product marketing are the most pressing bottlenecks which
need to be addressed. Furthermore, a strong demand and supply of quality support
services and training are sorely needed to improve the performance of tourism enterprises.
The tourism industry is very fragmented, lacking joint efforts to pursue a marketing strategy.
Many local initiatives to stimulate tourism have not led to effective tourism marketing but
rather, to an inefficient use of funds. This discrepancy has caused various actors to withdraw
from a coordinated way of doing marketing. To compound matters, Negros Island is
administratively split into two provinces, Negros Oriental and Negros Occidental. Indeed, an
overall absence of trust and willingness to collaborate was prevailing in the Negros
Occidental tourism industry. Therefore, the challenge lay in creating industry synergies
and a higher level of cooperation and networking between and among public and
private stakeholders. Fortunately, local stakeholders increasingly realized that they need to
join forces to address the untapped potential and deficient marketing of the tourism sector.
3. APPROACH
The creation of the Negros Island Tourism Inc. (NITI) was a result of a series of analyses,
interviews and workshops with various stakeholders that were designed to find a common
understanding on how to improve tourism marketing. This transparent process of externally-
facilitated discussions between business people and public sector officials resulted in a
functioning public-private partnership framework which paved the way for setting up a
private Tourism Marketing Agency.
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9. 3.1 Process and Interventions
At the core of GTZ’s interventions was the facilitation of participatory multi-stakeholder
discussions, a joint action process and the provision of tourism expertise to local
stakeholders. To provide an overview of this process, a flow chart illustrating the major
interventions is presented below, supplemented by the human resources employed. The
various interventions are then outlined step-by-step, describing the tools and methods used.
MAY 2004 AUG 2004 AUG-DEC 2004 FEB 2005
Sector selected/ validated Key informant interviewed Tourism sector analyzed Analysis results validated
• 14 days Local • 20 days Local • 5 months Local • 5 days Local GTZ
GTZ staff GTZ staff GTZ staff staff
• 3 days • 20 days 3 local 15 days Internat. • 2 days Internat. GTZ
International consultants GTZ staff staff
GTZ staff • 5 days internat. • 4 days external
• 3 days external consultant facilitator
facilitator • 5-month team of 3
local consultants
MAY/JUL 2005 MAY/JUL 05 MAY/JUL 2005
Expert’s missions Marketing Actions planned Key Actors capacitated
• 30 days Internat. • Internat. tourism • Internat. tourism NOV 2005
tourism expert expert (see expert (see
(May & July May/July) May/July) Creation of
mission) • Local GTZ staff • Local GTZ staff
NITI
• 60 days Local (see May/July) (see May/July)
GTZ staff • Internat. GTZ staff
• 20 days Internat. (see May/July)
GTZ staff
3.1.1 Sub-sector Selection and Validation
As a preliminary intervention, GTZ invited various private and public actors to participate in a
consultative meeting for validating the selection of a pilot sub-sector which GTZ would
support for SME development. The process was as follows:
• Agreement on criteria for selecting the pilot sector: high market potential
to generate sales and investment and high potential for creating new employment
opportunities.
• Listing of proposed sectors satisfying the two criteria.
• Voting on four sectors resulting in: food processing, tourism, information
technology and GTH or Gifts, Toys and House ware.
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10. • Assessment of short listed sectors against an Attractiveness Matrix.
The selected sectors were rated to which extent they satisfy the two aforementioned
criteria, using a rating of high (3), medium (2) and low (1). Plotted on the Matrix, the
collective results put tourism first, closely followed by food production/processing.
The group unanimously decided in favor of tourism supported by the rationale that a
flourishing tourism industry will also enhance demand in the food sector.
Attractiveness Matrix
Source: Consuelo E. Misa, “Sub-sector validation workshop May, 14 2004”, Cebu City 2004,
p. 11 and p. 14.
3.1.2 Key Informants Interview and Tourism Sector Analysis
To acquire a thorough understanding of the sector, ‘key informants’ – tourism stakeholders –
were interviewed as a starting point for the sub-sector analysis of the tourism industry in
Negros Occidental. This predominantly qualitative analysis looked at accommodation,
resorts, food service, travel agencies and tour operators, and transport operators, and
focused on:
• Dissecting final sales markets and market segments;
• Determining market channels and trends;
• Identifying the primary actors, their roles and relationships and mapping it;
• Creating a value chain that describes the above;
• Diagnosing constraints and opportunities for growth of the sector; and
• Identifying business services and suggesting interventions that can address
the constraints.
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11. Taking into consideration existing tourism initiatives, the study recommended specific
interventions including tourism promotion, product and market development as well as
institutional development:
Table 1: Specific interventions suggested
• Initiate the re-organization of an existing body composed of representatives of key
players in the tourism sector and provide organizational development assistance;
• Development of a compelling brand and product portfolio, which meet the desire for a
distinctive, authentic and unique Negros Occidental experience;
• Improvement of destination marketing of Negros Occidental;
Source: Boquiren, Marian, 2005, p. 4 ff
3.1.3 Results of Sub-sector Analysis Validation and Baseline Study
While key informant interviews were being conducted, a tourism core group consisting of
the most active business associations engaged in tourism in Negros Occidental was formed,
including the Alliance of Travel Trade Associates and the National Association of
Independent Travel Agencies (NAITAS).
NAITAS requested assistance from GTZ to provide facilitation for a workshop1 which aimed
to discuss the sector analysis results, generating a tourism marketing concept and
developing sample standard tour packages. As a result, a drafted Memorandum of
Agreement (see Annex 1) was presented, discussed and approved. This MOA reflects a
working model of existing tour and travel consortia in the Philippines.
Following the sector analysis, a baseline study for monitoring progresses and measuring
impacts of GTZ’s interventions was carried out (see Annex 2).
3.1.4 Tourism Expert’s Missions: Marketing Action Planning and Capacity-
Build-up of Key Actors
To help the Negros Tourism Core group develop a Tourism Action Plan that would enhance
the Province’s positioning as a tourism destination, an international tourism expert was
1
The workshop was part of GTZ’s organizational development efforts to help NAITAS
enhance the capacity of its members in marketing and product planning.
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12. brought in. After a series of interviews, meetings and visits during his first mission to Negros,
the expert suggested that a Tourism Marketing Agency offering destination and product
marketing be established so as to tackle the core bottleneck for the industry (see
recommended tasks in Annex 3).
At a tourism stakeholder workshop wherein the findings of the mission were presented and
discussed, the stakeholders expressed the wish to set up such an agency. With the backing
of the public sector actors and with as much neutrality as possible, representatives from the
tourism associations agreed to pursue the establishment of a marketing agency. Five
representatives from industry associations formed a preparatory committee – a task force-
that drafted a technical proposal to examine the feasibility of putting up an Agency. The
following aspects were examined: the legal form of the organization, organizational structure,
financing scheme and a 1-2 year work program (including investment and operating costs)
as well as the practical set-up.
Upon the request of resort owners and managers, the tourism expert also conducted a 2-day
workshop on improving their marketing skills. Participants from all over the province were
strongly engaged throughout the event, building their capacity and rallying support for the
TMA concept.
The expert’s follow-up mission that took place two months later focused on finalizing the
concept of the Tourism Marketing Agency (TMA) and motivating all relevant actors to agree
on it. Driven by the small group of private sector actors, the proposed concept was
approved, and a TMA materialized.
3.1.5 Set-up of Agency
A non-stock, non-profit corporation with 5 incorporators – 4 representatives from industry
associations and one from the provincial government – was chosen to be the most suitable
legal setting. The existing tourism associations and government institutions joined forces to
form the public-private partnership framework of the Agency. This business form limits the
liability of incorporators or board members, be it private or public sector actors, and above all
allows the broadest funding from all possible sources. The corporation was named Negros
Island Tourism, Inc. (NITI) and has been entrusted by government offices and business
people to execute marketing for the tourism industry.
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13. Chart 1: Institutional structure
General Assembly of members The institutional structure agreed on is composed of the
General Assembly, the Board of Trustees and the management
Board of Trustees (11) team with several positions. The actors coming from the private
Private Sector (8)
Public Sector (3) sector clearly dominate the Board of Trustees and thereby the
direction of the Agency. The exact relations between the three
Management Team levels are regulated in the by-laws which determine the control
Executive Director
Staff and advisory functions within the Agency.
Source: Hilz Ward, Gottfried, p. 6, Aug. 2005
In general, the Agency is developed within a public-private framework with large
contributions from the public. NITI keeps the broadest possible funding base and relies on
sponsoring, membership fees, and institutional donations from the government and private
sector as well as institutional fundraising events. Relying on different sources for funding is
intentional so as to prevent one major donor from having too much influence on the Agency.
3.2 Contributions by Partners
There are three different partners who provided in-cash or in-kind contributions to make this
process happen and/or provide funding for the agency: private sector, public sector and
GTZ. The tourism task force invested a total of around 4-5 man months in order to undertake
fact finding efforts which led to the conceptualization and design of the agency. Four private
sponsors2 expressed their willingness to contribute cash to the agency’s financing, while
other funds will be generated from membership fees. Institutional donations were also
promised by Bacolod City, the Provincial Government and the Department of Tourism.
GTZ’s contributions take the form of mentoring/coaching, managing and technical assistance
provision (facilitating the consensus-building process, undertaking the sub-sector analysis,
and bringing in market-specific expertise)
2
Casino Filipino, Air Philippines (airline), Ceres Liner (bus transport), PLDT
(telecommunications).
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14. 3.3 Expected Benefits
The TMA holds high potential for overcoming the major bottlenecks hampering the tourism
industry in Negros Occidental. Primarily, Negros Island Tourism Inc. pursues the creation of
a unified brand to jointly market and promote the island’s tourism destinations. This would
generate more appeal for a larger market, thereby, enhancing the market positioning of the
province as a tourism destination. With the establishment of an agency that has the
mandate, resources and competence to pursue destination and product marketing, the
expected direct benefits are3:
1. Increased number of tourists visiting the province (holiday, conventions, sports and
cultural events).
2. Increased length of stay of tourists and tourism expenditure.
3. Improved image of Negros as a tourism destination.
4. Negros known as tourism destination in the Philippines and abroad.
The baseline study on Negros tourism serves as a useful tool for benchmarking and
monitoring changes in the aforementioned aspects.
4. SUCCESS AND RISK FACTORS FOR INTERVENTIONS
Although it seems too early at this stage of documentation to address success and risk
factors, there are fundamental elements perceived to have greatly contributed to the setting
up of the Agency. On the other hand, there are also some factors that could have hampered
the project from materializing.
Table 2: Success and risk factors for interventions
Success factors Risk factors
Necessary preconditions in the locality: Situation in the locality:
• Economic (sub-)sector with high growth • No champion in place willing to drive the
potential is existent process
• Dynamic and committed local change • Local hurdles (attitude, politics) seem
agents are involved in the process insurmountable
• Clear request for assistance comes • Absence of trust hampers joint efforts and
from local key actors the building of a common vision
• Clear go signal is sent from local actors • Political issues determine the agenda of
for driving the process forward workshops and prevent open discussions
• Willingness to join forces among public • Interest groups do not join hands and think
and private actors and to overcome they are better off, preferring to maintain the
hurdles status quo
3
Source: Hilz-Ward, Gottfried , p. 5, Aug. 2005
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15. Fundamental elements in the process:
• A transparent and traceable consensus-
building process is applied
• Local expectations are levelled off
• External support responses to local
request for assistance are process-
oriented and based on local dynamics
• Expert/Facilitator stays neutral to keep
the process intact and help in brokering
compromises between stakeholders
• Public-Private Partnership results in
direct benefits expected from the
agency’s operations
• Experts have excellent communication
skills and enjoy high credibility from
local actors
5. LOOKING AHEAD: A MODEL MECHANISM
The Tourism Marketing Agency is still in its infantile stage, without being fully operational
and with many unfinished organizational details. Therefore, impact monitoring is required
over the next two years to measure the results of the interventions and to see whether the
agency is sustainable. But if proven successful and sustainable, this approach -- the
facilitation of process-oriented multi-stakeholder discussions leading to consensus and
viable public-private partnerships – could serve as a model worth replicating in provincial
destinations or larger regions with a promising tourism sector because:
• It responds to local requests and dynamics, and boosts local ownership.
• It fills a significant market gap for business services, enabling the sector to grow
without distorting the market.
• It promotes public-private sector collaboration in overcoming bottlenecks through
focused initiatives and tapping hitherto marginally-used resources.
• It requires low-budget interventions (for donors).
Indeed, all partners in this public-private partnership have much to gain in such a setting: an
Agency that has the mandate, resources and competence to market and promote the
island’s tourism destinations holds the potential of achieving an increased influx of tourists,
an increased length of stay, higher tourist expenditures and an improved image as a tourism
destination.
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16. REFERENCES
Bessler, Astrid, “Facilitating the set up of Negros Island Tourism Inc. - Brief Description of an
Integrated Public-Private Partnership”, November 2005, Makati City.
Claravall, Bienvenido G., “Tourism Marketing Workshop for the National Association of
Independent Travel Agencies (NAITAS) in Bacolod City”, February 2005, Pasig City.
Consuelo, Misa E., “Sub-Sector Validation Workshop May 14, 2004 Bacolod City”, May
2004, Cebu City.
Fernando, Myriam, “Establishing baseline data on SMEs in SMEDSEP Pilot Projects:
Tourism in Bacolod and LRED in Leyte”, Working Paper, August 2005, Makati City.
Hilz-Ward, Gottfried, “Preparation of a Tourism Action Plan Mission Report”, May 2005,
Makati City.
Hilz-Ward, Gottfried, “Establishment of a Tourism Marketing Agency in Negros Occidental
Mission Report - 16-26 July 2006”, August 2005, Makati City.
Hilz-Ward, Gottfried, “Establishment of a Tourism Marketing Agency in Negros Occidental
Mission Report - 4-13 February 2006”, March 2006, Makati City.
Boquiren, Marian et all “Sub-sector Analysis of the Tourism Industry in Negros Occidental“,
February 2005, Makati City.
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17. ANNEXES
Annex 1 - Memorandum of Agreement by the National Association of
Independent Travel Agencies (NAITAS)
KNOW ALL MEN BY THESE PRESENTS:
This Memorandum of Agreement is entered into by and between the following business
entities, duly registered with the Securities and Exchange Commission and/or Department of
Trade & Industry and operating with valid business permits from their respective local
government units, and duly represented by their respective authorized representatives
whose signatures appear below.
Whereas, the aforementioned business establishments are engaged in and are integral
components of the tourism industry and/or allied industries in Negros and its municipalities
and chartered and component cities;
Whereas, the aforementioned business establishments desire to formalize their business
collaboration in the areas or marketing and promotions for Negros and all its municipalities
and chartered and component cities;
Whereas, the aforementioned business establishments desire to formalize their business
collaboration in the areas of tour product development and tour product delivery in Negros
and all its municipalities and chartered and component cities;
Now therefore, in consideration of the foregoing premises, all signatories agree to:
1. Work for the common welfare of the tourism industry in Negros and all its
municipalities and charter and component cities;
2. Establish an organizational infrastructure to oversee the joint marketing and
promotions of tour products in the respective areas of operations;
3. Conduct joint tour planning and development, including rate negotiation with
the various industry suppliers and allied services;
4. Collaborate in the timely delivery of tour product components, including and
not limited to day tours and tour packages in the respective areas of operations;
5. Insure quality and reliability in the delivery of tour products;
6. Provide mutual technical assistance and support, including information
sharing;
7. Design an equitable profit-sharing scheme taking into consideration third
party interventions that require commission-sharing and/or referral fees;
8. Avoid unethical industry practices, including but not limited to, pirating of staff,
under-cutting in pricing and negative interaction;
9. Actively seek the participation and support of other industry players, national
government agencies and local government units;
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18. 10. Accept the authority of the lead entity and abide by the decisions of the
structured organization.
This Memorandum of Agreement shall be valid for a period of three (3) years from the date
of signing and shall be subject to renewal for another three (3) years by mutual consent of a
majority of the signatories.
Signed this 5th day of February, 2005 in the City of Bacolod.
Bacolod Travel DLRS Travel
Jorelyn Park Shenna Mae Angeles
Technotours Worldbound
Estrella Moran Dina Serfino
Kimberworld Décor Travel
Rodney Lumintac Cynthia Flores
Viva Tours SN Travel
Ma. Bella Villanueva Roda Regalado
DLRS Travel JHF Travel
Jade Dionzon Jacquiline Juintus
Filipiniana Tours Bonista Resort
Greg Flores Johnny Caroll
Punta Bulata Resort
Freddie Zayco
Bacolod City Tourism Office Provincial Tourism Office
Imogen Kana-an Jennylind Cordero
DTI Negros Occidental TESDA Negros Occidental
Vivian Gaston Romelia Nuezca
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19. Annex 2 - Baseline Data: Bacolod - Tourism Industry Bacolod
Quantitative Data
By Myriam Fernando (September 2005)
Table 1: Indicators and methods of data collection for Bacolod – Tourism Sector
Indicator Use Source Contacts Frequency Computerized
Number of Identifies growth in Bacolod LGU4 Perlette Annual Yes
establishments the number of Caceres
in the tourism establishments in Management
industry the tourism Information
industry Systems (MIS)
City Tourism Imogene Annual No - fact sheets
Office Kana-an available on
Bacolod City request
Tourism Officer
Number of Indicates the City Tourism Imogene S. Annual No - though an
rooms increase in number Office Kana-an information fact
of establishments Bacolod City sheet on tourist
and also the Tourism Officer related statistics
expansion of is released on a
existing yearly basis.
establishments
Gross Sales5 Indicates the Bacolod LGU Perlette Annual Yes
increase in Caceres
competitiveness of MIS
SMEs
Number of Indicates success City Tourism Imogene S. Annual No – though an
Tourists of BDS provisions Office Kana-an information fact
and overall tourism Bacolod City sheet on tourist
Tourism Officer related statistics
is released on a
yearly basis.
Table 2: Accommodation in Bacolod – 2004
Type of Accommodation Number of Establishments Number of Rooms
Hotels 18 1051
4
Though DTI also has data concerning SMEs, firstly the breakdown of sector type is not as detailed,
and secondly, DTI is only responsible for business name registration, so many of the SMEs which
register with DTI may not actually exist, as this is only updated every 5 years.
5
Though Gross Sales can be used as an indicator to measure the increase in SME competitiveness
as it captures both the increase in the sales as well as the increase in number of SMEs, many SMEs
will not disclose the true value of the Gross Sales due to tax purposes, hence this value is largely
understated.
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20. Tourist Inns 15 450
Pension Houses 10 192
Resorts 3 68
Total 46 1761
Source: City Tourism Office – Bacolod City
Table 3: Establishments in the Tourism Sector
Establishment 2000 2001 2002 2003 2004 2005
Travel agencies 46 38 50 45 50 42
Hotels
- first class 2 2 2 2 3 3
- standard 5 5 9 5 7 6
- economy 4 5 2 5 2 2
Tourist inns 14 4 11 12 21 17
Pensions Houses 11 21 16 22 8 9
Resorts 11 10 10 13 11
Motels 6 6 10 7 7 4
Cinemas 4 - 5 - 5 4
Massage Clinics / Spa 5 4 3 9 11 15
Antique Shops 5 2 3 - -
Gift shops/Handicraft 51 44 27 49 80 107
Disco, Bars, KTV 35 29 39 58 96 76
Restaurant 111 400 205 260 370 338
Fast-food 114 - - - - -
Tour Guides 1 - 2 - 1 1
Rent – a Car 5 2 2 6 3 5
Coffee Shops 13 84 36 42 21 23
Lodging houses 8 9 4 2 4 4
Golf Club 1 1 - 2 1 1
Department Stores 5 3 - 9 8 3
Ticketing / Airline Terminal 5 - - 12 9 7
Bus Lines / Shipping Terminals 5 - - - - -
Shipping Lines 5 - - - - -
Total 461 668 435 560 720 678
Source: City Tourism Office - Bacolod City (Assessment Tax data sheet)
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21. Annex 3 - Operational Phase of the Tourism Marketing Agency
Recommended tasks for 1st and 2nd year of operation
By Gottfried Korbinian Hilz-Ward (May 2005)
1 Branding
1a Task Creation of a strong common brand for the destination
Purpose Improves industry cohesion in destination
Convincing and lasting client contact, reinforces product sales
Sub-Tasks Define and agree on Unique Selling Propositions
Define future regional destinations within the Province (i.e. South
Coast, Highland, Bacolod, North Coast) and identify their typical
character
Formulate and visualize branding slogan and logos
Put results to discussion and achieve approval
Test branding elements with some tourist groups
1b Task Implement a brand-based corporate identity
Sub-Tasks Develop a corporate identity for the Marketing Agency and other
contact points/agents
Disseminate CI to stakeholders for multiplier effects
Test CI elements amongst stakeholders
2 Destination Marketing
2a Task Tourism Portal/Website
Sub-Tasks Draft information elements
Creation of emotional experience
Establishment of contact with suppliers and marketing agency
Examine sales/distribution element; reservation tool
News message board
Reflect brand of destination
Ensure proper functioning and visitor friendliness
2b Task Tour operator Manual
Purpose Provide compact information package to tour operators to assist
their product packaging and sales
Sub-Tasks Design and produce folder which can take insert documents
Prepare (low cost) set of general information for insert: Main
attractions with entrance fees, transport modes with schedules
and costs, travel times and distances, accommodation
establishments with prices and contact details, transport and
incoming operator contacts, selected tour proposals, main
entertainment facilities with prices, main handicraft and shopping
outlets personalised contact with Marketing Agency
Prepare (low cost ) set for frequently changing information for
insert: calendar of cultural and sports events, calendar of
conventions and meetings, new hotel/resort projects
2c Task Publication of Image Brochure
Purpose Hand-out material to potential clients to build positive attitude
towards destination and guide to travel decision
Sub-Tasks Prepare brochure profile for intended target groups: language,
- 19 -

22. size, print/photo ratio, information content, emotional experience,
number of copies
Build up photo archive for publications
Design presentation of destination, sub-regions, recreation
activities, leisure opportunities
Professional brochure design, best photo and print quality
General map with main sites
Examine sponsoring by strategic partners
2d Task Publication of practical information guide
Purpose Travel Planner for individual tourists before and after their arrival
on Negros
Prepare brochure profile for intended target groups: language,
size, print/photo ratio, information content, emotional experience,
etc
Draft text on all practical information for visitors: Main sites and
attractions with opening hours and entrance fees, transport
modes, distances, schedules and prices, shopping and
handicraft, selected hotels/resorts (alternative all hotels/resorts or
a separate accommodation guide can be published), travel
agencies, special restaurants and delicacies;
police/doctor/hospital contact details,
Distance travel map and selected city maps
Examine financing through commercial advertisements
2e Task Publication of event calendar
Sub-Tasks Establish early information system on event announcement
Set up and maintain event data bank with event organiser
contact details
Publishing of event calendar (cultural and sport events) every 6
months
Examine commercial financing through advertisement
3 Product Marketing
3a Task Competition analysis
Purpose Improvement of competitive position, learning from best practices
Sub-Tasks Identification and SWOT of main competing destinations for key
products
Analysis of comparative opportunities (both convention and
leisure)
Identification of best practises
Data base on past conventions and respective clients
Analysis of TO catalogues on comparable leisure packages and
pricing
3b Task Marketing strategy related to prime products
Sub-Tasks Detailed identification of target groups for existing main products
Proposal on target group approach and instruments
Cooperation with product suppliers on joint marketing
Timetable of proposed actions
Introduction of success criteria and benchmarking
3c Task Establishment of target group data base
Sub-Tasks Data base of Tour-Operators (leisure travel and special interest,
such as diving) in Philippines, Southeast Asia, Europe, US,
- 20 -

23. Australia
Data base of Associations and relevant corporate clients in the
Visayas, Philippines and gradually neighbouring countries
Data base of Professional Congress Organisers in the
Philippines and SE Asia
Data base of media and journalists who publish tourism
features/articles
3d Task Publication of a Convention Planner
Purpose Support associations and corporate clients in the preparation of
meetings and conventions
Sub-Tasks Establish a profile of the publication
Collect relevant information on: meeting facilities (location,
capacities, equipment, contact details, etc), accommodation
(capacity, class, prices, contact details), catering firms, transport
companies (transport modes, prices, contact,etc.) entertainment
facilities, pre- and post-meeting arrangements and organizers,
travel agencies and PCO’s
Arrange a highly professional publication in outstanding quality
3e Task Implementation of selected marketing actions in addition to
above
Sub-Tasks Preparation of a Marketing Action Programme that is gradually
put into practice (depending on the human and financial
resources of the Marketing Agency in the first two years of
operation;
- Media PR campaign (fam trip for journalists,
publication of travel articles)
- Participation in trade forums and fairs (relatively
expensive, selected fairs only)
- Tour Operator networking campaign (proposal of
model packages, announcement of new products,
fam trip)
- 21 -

24. Annex 4 - Marketing Plan for Tourism Marketing Agency (NITI)
Draft Plan for 2006-2007
By Gottfried Korbinian Hilz-Ward (February 2006)
Outline of Marketing Plan
1. Current Negros Tourism Products
2. Product Details
3. Improving the Product
4. Priorities for Marketing
5. Target Markets and Market Segments
6. Adventure Negros – Brand Strategy
7. Destination Marketing Basic Promotion Material (Must Have) I
8. Marketing Actions
2
- 22 -

25. 1. Current Negros Tourism Products
English Language Courses
Cultural Sightseeing
(Game Breeding)
Outdoor Sports
Active Tourism,
Beach Meetings
Leisure and Conferences
Recreation Events
Key growth product
3
2. Product Details
Beach Leisure MICE Active Tourism Cultural Language
Sightseeing
• 65 beach and •Bacolod hotel •Diversity of •Variety of Language
inland resorts and conference landscapes and historic and schools in
•Excellent facilities environments other cultural Bacolod
beaches and •Casino Filipino •Kanlaon National sites University
coves in Sipalay, •Golf courses Park •Old Silay courses
Sagay, •Attractive side •Network of hiking heritage sites Sufficient
Escalante, San arrangements trails in NP and •Suger private
Carlos, etc beyond plantations and accommodation
•Mambucal
•Leisure and resort/ wellness •Bicycle trails sugar mills
water related to/from Bacolod •Steam railways
activities for all •Clubs to support •Bacolod City
target groups products (guides) •Mascara
•Dive clubs •Excellent diving Festival
grounds
•Several dive
clubs
•3 quality golf
courses
•Resorts for active
tourism along
beaches and in
mountain areas 4

26. 3. Improving the Product
Beach Leisure MICE Active Tourism Cultural Language
Sightseeing
Upgrading of Focus on Mapping and Expand on-site Product study
resorts small and preparation of hiking experience Analysis of
mid-size and biking trails Analysis of cock product with
Quality meetings and Signage of trails fighting/ game schooös and
improvement conferences (sponsorship) breeding product professional
programme Increase trail operators
(quality system. Diversi-
workshop) fication (inter-island
trails)
Introduction of a Organisation of
quality label guides, training and
(Negros language training
hospitality) Packaging and
organisation of tours
Improvement of
security in diving
(decompression)
Definition of
seasons for active
products
5
4. Priorities for marketing
State of product Product type Action
Product... Is ready to sell Beach holidays Immediate marketing and
Meetings, conferences promotion
Scuba Diving
Sightseeing tours
Language class
Needs organising Golf packages Arrangements with golf
Jet ski clubs and tour operators
Install focus groups
Needs packaging Mountain biking Install focus groups
Road biking Involve tour operators
Hiking
6

27. 5. Target Markets and Market Segments
Beach Leisure MICE Active Cultural Language
Sightseeing
Domestic: Domestic: Domestic: Domestic: International:
Families, couples, Amateur biking/ expatriates Students learning
groups from Corporations from hiking groups Students English
Bacolod, Iloilo, Negros, Cebu and Expatriates (Korea, Taiwan,
Dumaguete Youth exchange
Iloilo European biking MICE programme Thailand, China)
Corporations with enthusiasts from Cebu
Domestic: countrywide Trekking groups
Weekend package operations
tourists from Manila Corporate groups, International:
Non-Governmental also incentive
and Cebu organisations Groups and FITs
students (Europe), discovery
Public
organisations from tours
Negros Golfers (Phil.,
Japan, Korea)
Governmental
organisations
Scientific institutes International:
divers (Europe,
National Taiwan, Korea)
associations
(national meetings)
7
6. Adventure Negros – Brand Strategy
NITI has chosen „Adventure Negros“ as the umbrella brand for promoting the
destination. This brand signifies a change of direction to brands previously used
for marketing. ‘Adventure’ products such as trekking, mountain biking, diving
and others are only partially operational yet. It should be avoided therefore to
position Negros as a pure adventure destination at this point. Leisure,
sightseeing and MICE remain still strong products and need to be covered by
the umbrella brand as well. It is recommended to create several sub-brands
underneath ‘Adventure Negros’ where each product can develop its profile.
Adventure Negros could therefore become a promotional slogan.
A principle objective is to focus destination promotion on a clear set of commercial
and available products. The brand can use emotional images but needs to be in
line with the product message.
8

28. 7. Destination Marketing
Basic Promotion Material (Must Have) I
Purpose: Material for hand-out,Tourist Information Office, Trade fairs, Promotion Events, Media
information, Target group campaigns
1.General image brochure Features images of destination, creates desire and shows
travel opportunities; it is recommended to present themes
(instead of regions) i.e:beach and coast, underwater,
mountains and nature, Bacolod, people and culture. Includes
map. Excludes information that needs frequent updating.
Format A4 or slightly smaller, landscape or portrait. 12 pages.
Highest quality possible .
2. Practical information kit/brochure Delivers all essential information for planning a trip to
Negros:Travel modes and times, local transport, accom-
modation incl. Tel., email, website, main visitor sites and
opening hours, different types of restaurants, key tourism
information offices. Additionally proposes selected itineries,
also for active tourism with contacts, etc.Includes map (more
detailed than above).Frequently used format:A5 flyer or other
compatible to image brochure
3. Meeting and event planning kit 3.1 Features Negros as a top place for meetings and confe-
rences. Creates interest and desire.Outlines the advantages/
3.1. Meeting/event promotion
qualities of Negros. Accomm., Culinary features, post
brochure conference programmes Relates to Adventure Negros.
3.2. Practical meeting planner Addresses HR managers and Board members.Format A4, 8
pages.
3.3 Folder to hold brochures/flyers
3.2 Listing of venues with relevant details, appropriate catering
(also to hold additional flyers from
establ., excursion, sports, cultural events, transport, other
individual hotels suppliers, tour agencies, tourism offices. 9
Preparation of Promotional Material
Corporate Identity
Ensuring that all promotional materials belong to the same family and express
best the destination brand: Adventure Negros
---------------------------------------------------------------------------------------------------
• Collect comparable material from several different destinations and identify
concept and styles of Corporate Identity
• Define own concept and prepare brief for designer specifying key elements of
Corporate Identity such as logos, slogans, preferred colours and layout, format,
etc. but allowing artist creativity
• Present and discuss analysis and brief in Board Meeting
• Request CI sketch proposals from 2-3 graphic designers at fixed price.
Proposals shall include formats, layouts, letter fonts, coloring, papers,etc. for all
basic print materials
• Present and discuss proposals in Board or General Membership Meeting and
choose preferred proposal
• Contract designer for final design and tender print work
10

29. Destination Marketing
Basic Promotion Material (Must Have) II
Negros Adventure Website/Portal - Actions
Reserve www. Adventurenegros.com
Web Address
Design this first website as little complex as possible, without reservation
functions, internal web, or sophisticated links
Three main content categories:
Regions (I.e.Bacolod, Northern Coast, Southern Negros, Mountains)
Main products
Information (transport, accommodation, food, information, culture, etc)
+ NITI contact and information on NITI
Website is crucial and urgent
11
Destination Marketing
Basic Promotion Material -Production
• Basic promotional material is outsourced to graphic designers and printing houses. NITIs
role is to draft specifications, to supervise and monitor work
• NITI Board to discuss maquettes and draft design in view of optimising publication
• Promotional material shall be produced in an order of priority
12

30. Destination Marketing
Basic Promotionial Publications – cost estimate
Type Amount-cost per item Total cost
(estimated)
1.General image brochure(for consumer) P 100 x 10.000 P 1.000.000
2.1Practical information folder (for consumer) P 50 x 10.000 P 500.000
2.2 Tour Operator Manual documentation (in P 100 x 250 P 25.000
holding folder), similar to 2.1
3.1 Meeting/event promo brochure (for P 70 x 3.000 P 210.000
corporate/association clients)
3.2.Meeting planner P 20 x 3.000 P 60.000
(for Human Resource managers)
3.3. Holding folder P 100 x 3.000 P 300.000
Corporate Identity Design P 3 x 25.000 P 75.000
Website design and initial operation P 500.000
13
Destination Marketing
Other Promotion Material (Should Have)
Theme promotional brochures
Golf vacation Should be produced only if several packages cn be
offered. Needs a tour operator for packaging and
ground handling. Brochure could be co-financed. High
quality publication.
Hiking and trekking guide (theme flyer) Conditional to availability of guides and trail network
Negros by bicycle Bicycle route map and planner
Bicycle trail decription (individual sheets per trail)
A divers paradise (theme flyer)
Audio-visual documentation/promo on
diving and dive sites
Adventure Negros Resorts Promoting beach and inland resorts, featuring the
various fun and sport activities. Creating interest and
desire. Structured in North, Central and South
Region. 14

31. 8. Marketing Actions - General
Action Comments
Database of tour operators (from Philippines,
Asian and European target markets) which are
active in Negros products
Conduct of market research, surveys on active Aim is to obtain more detailed knowledge on specific
tourism market segments traget groups and how to reach them. Surveys could
be done by tourism students as their degree works or
other university research work. NITI itself should not
carry out such surveys.
Build-up of a photo library of Negros and Aim is to have a growing collection of photo images
tourism-related images available for use in promo publications, PR articles,
website, etc.
Collect/copy available digital photos (high resolution
only) and photo negatives from NITI partners
Options: organize amateur photo competition or hire
professional photographers
Study tour to international tourism trade fair in Comparison of products, analysis of competitors,
SE Asia with suppliers quality assessment, networking with tour operators
Media fam trip for Philippine journalists and tv
Travel package promotion on website and in In cooperation with tour operators
cooperation with sponsors (airline, shipping
company, casino, etc)
15
Marketing Actions - Leisure
Action Comments
Organisation of a meeting with resorts on a sales Sensibilisation of resort owners for
campaign professional marketing
Sales training course for resort owners/managers Trainer: experienced hotel/resort sales
manager and/or tour operator
4Q 2006
Product presentation in Negros for Philippine inbound
operators
Benchmark Study comparing Negros Occ. resorts
with Bohol and Negros Oriental
Public Relation Campaign in Activity magazines Prepare standard PR articles, make
(Philippines, USA, Europe, Southeast Asia) available high quality phote material
16

32. Marketing Actions – Meetings and Events
Action Comment
Set-up of a database of a) -
a) MICE infrastructure, services, b) Information provided by hotels and business
directories
suppliers in Bacolod and Negros
b) Associations and corporations
(potential clients) in the Philipines
Preparation MICE promo brochure and Attention to high quality
meeting planner
Organisation of either fam trip or product One day event in Bacolod with presentations and visits to
presentation to Manila and Cebu meeting facilities and hotels
Professional Congress Organisors (in collaboration with Casino and airline)
Mailing promo brochure and meeting planner
to multipliers: ministries, Governmental and
NGO, embassies, chambers of commerce
Mailing promo brochure and meeting planner
to selected associations and Human
Resource managers
17
Marketing Actions – Active Tourism
Action Comment
Press releases to biking magazines and Attractive and feasable products must be available.
advertisements for biking packages Be done with inbound tour operator.
Fam trips for active tourism TOs from In cooperation with major inbound operator in Manila
Europe and US
Participation in Dive Expo 2007 in
Bangkok
Networking with golf clubs and
associations in target markets
18

33. Marketing Actions – Other
Action Comment
Market study on English language Desk survey, contacting universities and language
classes and courses in Taiwan, China, schools
Thailnd, Japan Cooperation with Bacolod training institutes
Preparation of information/promotion Cooperation with Bacolod training institutes
folder for language studies
Advertisement and board notices in
language schools and universities in
target markets
19
Proposed Marketing Action Programme 2006
Main Actions Cost estimate in P
Design and opening of destination website 500.000
Corporate Identity and Corpoprate Design 75.000
Production of general image brochure 1.000.000
Tour-operator and MICE database
Photo library 20.000
Sales training for resort managers
Resort product presentation
20

34. Proposed Marketing Action Programme 2007
Main Actions Cost estimate in P
Production practical information kit 500.000
Meeting and event theme brochure and planning kit 270.000
Tour Operator Manual and Holding Folder 25.000
Product presentation in Negros for Philippine
inbound operators
MICE mailing campaign, multiplier lobbying
Consumer tourism fair Manila or special interest
trade fair
Media fam trip for Philippine press
Launching of travel packages and promotion on
website and with sponsors
21

35. Annex 5 - NITI Certificate of Incorporation with the Securities Exchange
Commission
Page 33 of 33

51. Contact Information
Manila Office
10/F German Development Center
PDCP Bank Centre Building
V.A. Rufino cor. L.P. Leviste Streets,
Salcedo Village, Makati City
SMEDSEP Program c/o GTZ Office
Manila, P.O. Box 2218 MCPO
Makati City, Philippines
Tel. No.: +63 2 8123165 local 46
E-mail: smedsep@mozcom.com
Website: www.smedsep.ph
Cebu Office
38 Acacia Street, Lahug, Cebu City 6000
Tel.: +63 32 4122256
Telefax: +63 32 444494
E-mail: masmedsep@globlelines.com.ph