Table of Contents
1 Improving Market Access & Connectivity 1
1.1 Rapidly Expand Capacity of Secondary International Airports 1
1.1.1 Subprogram for Upgrading Secondary International Airports 2
1.1.2. Increasing International Tourists at NAIA 4
1.2 Expand Connectivity between Philippines and its Key Growth Markets 5
1.1.2 Renegotiating Air Service Agreements with Key Growth Market Markets 6
1.1.3 Reducing International Air Operations Costs in the Philippines 7
1.1.4 Simplifying Border Formalities /Procedures for Key Growth Markets 7
1.3 Implement a Strategic Access Infrastructure Program between Secondary International Airports and Strategic Destinations 8
1.3.1 Design and Implementation of Strategic Access Infrastructure Subprogram 9
1.3.2 Improving Sea and Road Transportation Services 13
Philippine National Tourism Development Plan 2011-2016
1 Improving Market Access & Connectivity
As noted in Section 3.5, the stakeholders identified three programs to improve market access and connectivity especially for international tourists. These are:
» Rapid upgrading of existing international airports to handle at least 3.1 million additional international arrivals (i.e. 6.2 million international passenger movements) and well as accelerating existing programs to strengthen compliance with international air regulations;
» Adoption of policies to facilitate international airline transportation services and operations; and
» Improving strategic air, sea and road infrastructure linkages and transportation services between the 8 international airport cluster destinations and the 13 strategic cluster destinations without international gateways
The details of cost estimates and cost assumptions of each program, its subprograms, and projects are provided as an attachment to this Appendix. The action plan for each of these programs is set out below.
1.1 Rapidly Expand Capacity of Secondary International Airports
Description of the program
Given the limited capacity of NAIA to handle increased international tourism flows due to runway congestion problems that will be difficult to resolve, the need to reduce the cost of traveling to Philippine destinations, and the need to spread the benefits of tourism more widely, it is necessary to rely increasingly on the secondary international airports i.e. Clark (MDIA), Mactan-Cebu (MIA), Davao, Puerto-Princesa, Iloilo, Laoag, and Zamboanga. EO 29 designating open skies for secondary international airports, the planned increased investment in international marketing; and of other measures designed to facilitate the number of international tourists to the Philippines will do much to drive more traffic to these airports.
However, as noted in a review of the current situation at these airports, their capacity to handle increased international air operations and tourist arrivals is severely constrained by city and air side infrastructure constraints that will also have to be addressed if these are to function as intended. In this context, the main objective of this program is to rapidly increase their capacity; and to undertake improvements at NAIA to decongest its main runway and Terminal 1 which is the subject of increasing criticism and complaints by international tourists. The program has two subprograms:
» Rapid upgrading and/or expansion of secondary international at Clark, Mactan-Cebu, Davao, Pueto-Princesa, Iloilo, Laoag, and Zamboanga International Airports.
» Facilitate increased international tourists through NAIA
Objectives
The objective of these subprograms is to position the Philippines to maintain and increase its current international market growth momentum and improving the arrival and departure experience to a more favorable level.
Proposed Subprograms and Projects
1.1.1 Subprogram for Upgrading Secondary International Airports
/Description and Projects / Time Frame /
The secondary international airports located at Clark, Mactan-Cebu, Davao, Pueto-Prinsesa, Iloilo, Laoag, and Zamboanga are currently unable to handle rapid international tourism growth because of limitations on: (a) city side aspects such as poor access, lack of parking, and inadequate support services; (b) air side constraints related to runway/taxiway/parking apron limitations, air navigation system imitations, and fire and rescue service limitations; and (c) airport management and operations limitations. The subprogram has 8 projects:
» Project 1: Upgrading of Clark International Airport
This project comprises the following tasks:
- Improve access road, day and long-term parking and and support services as part of Terminal 1 expansion and new terminal development including development of airport hotels (1x300 room 4 star, 2x300 rooms 3 star, and 2x150 rooms economy hotel
- Complete Terminal 1 expansion to 5 m pax p.a. and implement planned construction of Budget Carrier Terminal project for 10 m pax p.a. Proceed wirh construction in Quezon City of a City Check-in facility and airport bus transfer terminal.
- Complete upgrading of CIQS facilities under Phase 2 of the Terminal 1 airport expansion program.
- Complete upgrading under Phase 2 of the Terminal 1 airport expansion program.
- Complete upgrading of fire and rescue services under Phase 2 of the Terminal 1 airport expansion program.
- Further strengthen capacity of DMIA to market the airport to schedule, charter and budget carriers. / Project 1.
Starting date:
Immediate with completion by December 2012
» Project 2: Upgrading of Mactan - Cebu International Airport
This project comprises the following tasks:
- Urgently improve capacity to handle multiple wide body aircraft arrivals and departures at existing international terminal by rationalization of existing office and commercial space and arrangements for check-in counters to: (i) provide 2 additional gates, (ii) increase the number of check-in counters, and (iii) increase baggage handling and queuing space. Proceed with plans to construct a 10 million-passenger capacity Low Cost Carrier Terminal.
- Construct 2 new 3,000 x 50 m taxi-ways to facilitate aircraft movements
- Further strengthen capacity of MIA to market the airport to schedule, charter and budget carriers. / Project 2.
Starting date:
Immediate with completion by December 2012
» Project 3: Upgrading of Davao International Airport
This project comprises the following tasks:
- Improve city-side access road, parking and air operations and ground transportation support services by immediately reverting to the proper vehicle drop-off and pick up arrangements, and ensuring effective integration of the three security services (Airport, PNP, and Military)
- Immediately decongest passenger-handling capacity in the existing departure area by rationalizing office and commercial space to increase the number of check-in counters and queuing space. Implement master plan to expand the international terminal by 2 gates and dedicate 4 gates for domestic air operations with flexibility to use international gates as required.
- Expand CIQS facilities as required
- Expand parking aprons for terminal expansion and work on acquiring land to construct a 3,000 m x 50 parallel taxiway
- Conversion to Airport Authority that includes marketing of airport to carriers as part of its charter / Project 3.
Starting date:
Immediate with completion by December 2012
» Project 4: Upgrading of Iloilo International Airport
This project comprises the following tasks:
- Improve city-side airline operations and ground transportation support services
- Renovate the existing terminal space to allow flexible use of 2 gates for international air operations including provision of dedicated CIQS and baggage belts.
- Include CIQS facilities in rationalized terminal
- Increase ramp space to facilitate parking of international aircraft and aircraft not using gates
- Conversion to Airport Authority that includes marketing of airport to carriers as part of its charter / Project 4.
Starting date:
Q1 2012 with completion by December 2013
» Project 5: Upgrading of Puerto-Princesa International Airport
This project comprises the following tasks:
- Improve access road, parking and air operations and ground transportation support services including development of airport hotel (1x250 room 3-4 star convention hotel)
- Implement current terminal renovation plans and implement construction of new international terminal by 2015
- Provision of permanent CIQS facilities in renovated terminal
- Realign tax-way entrance by expanding the ramp area
- Upgrading of Fire and Rescue Equipment to handle international airline operations
- Conversion to Airport Authority that includes marketing of airport to carriers as part of its charter / Project 5.
Starting date:
Q1 2012 with completion by December 2013
» Project 6: Upgrading of Laoag International Airport
This project comprises the following tasks:
- Improve access road and parking areas. Provide public transportation services from a designated point outside the terminal to Laoag City
- Implement current terminal improvement program focusing on increasing international passenger arrival and departure handling capacity
- Provision of permanent CIQS facilities
- Upgrade of Fire and Rescue Equipment as required by regulation
- Conversion to Airport Authority that includes marketing of airport to carriers as part of its charter / Project 6.
Starting date:
Q1 2013 with completion by December 2014
» Project 7: Upgrading of Zamboanga International Airport
This project comprises the following tasks:
- Improve city-side access road, parking and air operations and ground transportation support services
- Implement current programs to improve terminal facilities
- Conversion to Airport Authority that includes marketing of airport to carriers as part of its charter / Project 7.
Starting date: Q1 2013 with completion by December 2014
Lead Responsible / Strategic Partners
DOTC/CAAP/Airport Authorities / Private sector stakeholders
Destinations for Implementation
NP-3-Central Luzon Clark), CP-6-Central Visayas (Mactan-Cebu), SP-6-Davao Coast & Hinterland (Davao), CP-5-Western Visayas (Iloilo), CP-4-Palawan (Puerto-Princesa), NP-2-Laoag-Vigan (Laoag), and SP-5-Zamboanga peninsula (Zamboanga).
Estimated Cost (PhP 000) / Potential Financing Sources
Project 1: 154,000
Project 2: 1,500,120
Project 3: 84,270
Project 4: 82,270
Project 5: 146,150
Project 6: 217,120
Project 7: 105,500 / DOTC/CAAP/Airport Authority
DOTC/CAAP/Airport Authority
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
1.1.2. Increasing International Tourists at NAIA
/Description and Projects / Time Frame /
NAIA is a critical link between the Philippines and its key international markets and it is important to ensure that it has the capacity to increase the volume of international arrivals to Metro Manila and other strategic cluster destinations in the Philippines. Given the current situation at NAIA, including existing initiatives already announced by CAAP/NAIA, this project sets out additional initiatives that could be taken to improve the airports international tourist passenger volumes over the next five years. The subproject involves two projects:
» Project 1: Improving Physical Facilities at NAIA
This project comprises the following tasks:
- Complete renovation of arrival and departure arrangements at Terminal 1.
- Complete renovation of Terminal 1 and minor renovation of Terminal 2 giving priority to:
§ Increasing the number of check-in counters and queuing space, public toilet,
§ Rationalizing office and commercial space in the departure area; and
§ Increasing the number of immigration and customs counters in the arrival hall.
- Consider constructing a parallel taxiway between Runway 1331 and the old Nayong Pilipino property to provide a new taxiway link between Terminal 3 and 2, link the four terminals, and free up runway space.
- Convert the General Aviation area into aircraft parking area with busing of passengers to terminals. / Project 1.
Starting date: Immediate through to 2013 with continuing operations and maintenance
» Project 2: Improving Airport Management & Operations
Involving:
- Implementing current plans to relocate General Aviation operations out of NAIA by the end of 2011.
- Restriction of all turbo-prop aircraft operations to Runway 1331.
- Encouraging domestic carriers to rebase their smaller aircraft (non-jet) operations to Clark, Cebu and Davao.
- Exploring opportunities for negotiating a settlement on Terminal 3 with PITACO and Tagenaka to allow permanent use of the Terminal.
- Strictly enforcing a limit of 32 runway rotations per hour to comply with ICAO standards and ensure safe air operations. / Project 2.
Starting date: Immediate through to 2013
Lead Responsible / Strategic Partners
DOTC/CAAP/NAIA / Private tourism companies where appropriate, e.g. airport operations and maintenance
Destinations for Implementation
NP-7-Metro Manila-CALABARZON (Manila)
Estimated Cost (PhP ‘000) / Potential Financing Sources
Project 1: 1,500,000
Project 2: / DOTC (consider private sector funding and operations)
DOTC (consider private sector funding and operations)
1.2 Expand Connectivity between Philippines and its Key Growth Markets
Description of the program
This program seeks to complement the physical investments in improving the capacity of the existing primary and secondary international airports with a series of policy initiatives designed to facilitate the participation of existing Philippine and other international carriers, as well as attract the entry of new international carriers servicing routes between points in the key growth markets and the Philippines. As noted in the Situation Analysis:
» The current air service agreements do not designate many of the secondary international airports as points that can be served within the Philippines while existing entitlements for Philippine and foreign carriers on the primary routes remain limited;
» The cost of international air operations to the Philippines is constrained by high airport ground costs and impost of a common carriers taxes and other fees and charges; and
» Frontier requirements for key growth markets such as China and India make it difficult for the Philippines to tap the full potential of these markets.
Objectives
The main objective of this program is to provide the necessary regulatory and financial platform that will enable the Philippines to expand tourism from its key international growth markets.
The program will be implemented through three subprograms:
» Renegotiating air service agreements with key growth market countries
» Reducing international air operations costs in the Philippines
» Simplifying and reducing frontier requirements for key growth markets
Proposed Subprograms and Projects
1.2.1 Renegotiating Air Service Agreements with Key Growth Market Markets
/Description and Projects / Time Frame /
The current air service agreements do not designate most of the EO 29 secondary international airports as points that can be served within the Philippines in the existing air service agreements with main growth market countries of China, India, South Korea, Japan, USA, and Australia. In addition, existing route entitlements for Philippine and foreign carriers need to be increased significantly, and new points in the main gateway countries designated. The subprogram has one project: