INTEGRATION IN THE ASEAN TOURISM INDUSTRY 2015:

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1 ! INTEGRATION IN THE ASEAN TOURISM INDUSTRY 2015: ONE VISA FOR ONE COMMUNITY LT #3A Borromeo, Louise Daga, Kavita Dee, Michael Iyer, Vishal Jalan, Hemant Kashyap, Vyjayanta

2 INTEGRATION IN THE ASEAN TOURISM INDUSTRY 2015: ONE VISA FOR ONE COMMUNITY By 2015, ASEAN will provide an increasing number of visitors to the region with authentic and diverse products, enhanced connectivity, a safe and secure environment, increased quality of services, while at the same time ensuring an increased quality of life and opportunities for residents through responsible and sustainable tourism development by working effectively with a wide range of stakeholders. - ASEAN Tourism Strategic Plan Vision BACKGROUND The Association of South East Asian Nations (ASEAN) has done several things in order to promote tourism in its region. Formalized in 1976, a Sub Committee on Tourism (SCOT) under the ASEAN Committee on Trade and Tourism was established to initiate regional tourism projects through functional areas such as promotion, marketing and research. Years ago, phenomenal growth in ASEAN tourism was seen in , wherein it captured more than two fold of the world s arrivals and over that of the Asia Pacific region. In 2000 and , the original member countries or ASEAN 5, was expected to have a significant share of tourist arrivals at 37 million and 47 million, respectively. Member countries have already recognized the role tourism plays in the growth of their respective economies. In 1996, ASEAN tourism sector collectively contributed significant gain to the regional economy with an equivalent of 9.1% of total exports and 4.9% of Gross Domestic Product (GDP). In 2008, one of the major drivers for growth was the Intra ASEAN travel, which comprised 46% of the total. In view of this, the ASEAN wanted to capture a bigger market and be recognized globally. It wanted to be a destination, not only for co ASEAN member states, but for citizens of other nations as well. I. ASEAN INTEGRATION 2015: TOURISM INDUSTRY The 10 member association is geared towards a platform, which emphasizes Two I s Integration and Identity. With the vision of ASEAN integration by 2015, the tourism industry is considered to be one of the twelve priority sectors for this goal. In 2011, ASEAN countries

3 attracted 81.2 million visitors which is an average growth of a million every year for the last two decades. 46.5% of tourists come from within ASEAN, while 27.6% are from other Asian markets. According to Dr. Surin Pitsuwan, ASEAN Secretary General Our strategy is designed to help build global recognition of Southeast Asia as a competitive, world class tourism destination. The Southeast Asian region has many attractive locations, diverse in culture, rich in history, flora and fauna. ASEAN nations are currently in a midst of strong economic growth due to speedy changes in the way business is being conducted in the new globalized environment. These countries need to leverage the progress made in telecommunications, information technology, etc. to address the structural issues that hinder the growth of tourism in the region. Tourism would promote awareness about ASEAN members outside the region, help create new jobs, encourage entrepreneurship and provide a platform for inclusive growth of the growing population. Therefore, in developing the Tourism Marketing Strategy for ASEAN, the objective is for visitors to go to more than one country, given the uniqueness of every ASEAN country s attractions and culture. Strategic Objectives: To ensure that there are an increased number of international visitors traveling to Southeast Asia and visiting more than one country To determine how the ASEAN NTOs, using their resources, can contribute to the overall positioning of the region as a preferred destination. To ensure that the power of tourism as a development tool is recognized and incorporated into a marketing approach that will be directed at meeting special social, economic and cultural goals. To guide budgetary decisions related to positioning the region and various dimensions of the travel experience.

4 Top ten country/regional sources of visitors to ASEAN as of 30 June 2012 Country of origin Number of tourists 2009 Share to total Country of origin Number of tourists Share to total Country of origin in thousand arrivals 2011 tho us ands percent tho us ands percent tho us ands percent ASEAN 31, ASEAN 34, ASEAN 37, Number of tourists European Union-25 6, European Union-25 6, European Union-25 7, China 4, China 5, China 7, Japan 3, Australia 3, Australia 3, Australia 3, Japan 3, Republic of Korea 3, USA 2, Republic of Korea 3, Japan 3, Republic of Korea 2, USA 2, USA 2, India 2, India 2, India 2, Taiw an (ROC) 1, Taiw an (ROC) 1, Taiw an (ROC) 1, Hong Kong, SAR Hong Kong, SAR Russian Federation 1, Top ten country/regional sources 58, Top ten country/regional sources 64, Top ten country/regional sources 72, Rest of the w orld 7, Rest of the w orld 8, Rest of the w orld 8, Total tourist arrivals in ASEAN 65, Total tourist arrivals in ASEAN 73, Total tourist arrivals in ASEAN 81, Share to total Now, the ASEAN tourism is moving towards certain strategic directions in order to integrate the overall tourism industry in the region. First of which is being able to develop experiential regional products and creative marketing and investment strategies. Second would be strategically increasing the quality of services and human resources in the region. And third is to enhance and accelerate travel facilitations and ASEAN connectivity. II. TOURISM INDUSTRY CHALLENGES For the tourism industry to proper, there are still several obstacles that must be overcome. In the past years, the ASEAN travel & tourism industry has undergone several rough patches, which includes both internal and external shocks. The promotional efforts for ASEAN tourism lost its momentum when the 1997 Asian economic crisis hit, affecting several nations in the Southeast Asian region. But since then individual efforts by the respective member states of the ASEAN with the help of public and private sector players, including state and city governments, national tourism organizations, airlines, airports, etc. It seems that the ASEAN countries have forgotten the synergistic effects of promoting the ASEAN region as a single destination. There were also issues involving the funding and decision making structures especially in new

5 member countries. Along with the 1997 crisis, there were also internal geopolitical disturbances and natural disasters which occurred and impacted the tourism industry. Over the last three decades up to today, one major factor to improve on to build tourism growth is through better infrastructure. Through this, bottlenecks will be eliminated without compromising the environment. There has to be a strong connectivity of domestic, regional and international infrastructure in order to attract more tourists to ASEAN. Accessibility of road, sea, air and rail within the region will be a great way in promoting ASEAN as a single tourist destination. Another way of promoting ASEAN as a single tourist destination is through the development of the ASEAN single visa for non ASEAN nationals. In 2006, the ASEAN Framework Agreement by the ASEAN member states have provided for a visa exemption for ASEAN nationals as a support to the vision of integration and connection as one community. By developing an ASEAN single visa in the future, more tourists will be attracted to visit and see the region s rich culture, heritage sites, diverse landscapes, natural beauty and marine attractions. One of the three important strategic directions in the ASEAN Tourism Strategic Plan as mentioned, is enhancing and accelerating travel facilitations and ASEAN connectivity. Aside from the lack of tourist related support infrastructure such as airports, hotels, surface transport and other life support services like water, telecommunications and power. A great deal of attention should also be given to policies and regulations that affect the travel experience of tourists especially for non ASEAN nationals. III. POLICY RULES AND REGULATIONS There are certain metrics used to measure the competitiveness of the travel and tourism industry of countries around the world. The Travel and Tourism Competitiveness Index (TTCI) is a comprehensive index that aims to measure the factors and policies that make it attractive to develop the Travel & Tourism (T&T) sector in different countries. The TTCI is composed of 14 pillars, which constitute of factors that are considered to be drivers of growth and prosperity in the travel and tourism industry. These pillars are further categorized into three sub-indexes: T&T regulatory framework, T&T business environment and infrastructure and T&T human, cultural, and natural resources.

6 Pillar 1: Policies and Regulations Pillar 1 Singapore Malaysia Thailand Brunei Indonesia Vietnam Philippines Cambodia Rank* Score *Rank out of 139 economies The first pillar under regulatory framework, policy rules and regulations, captures the extent to which the policy environment is conducive to the development of the travel and tourism industry. Since regulatory frameworks captures those elements which are policy related and generally under the purview of governments, the ministry or department of foreign affairs, in charge of visa policies and regulations will play a role in this factor. In this pillar, the ASEAN region is highly fragmented. Among 139 countries ranked, Singapore takes the top spot, while only Malaysia and Vietnam made it on the top half of the ranking. Among all the other ASEAN member countries, Cambodia is the lowest ranked at 132, while the Philippines is at number 70. Overall the travel and tourism sector in ASEAN faces certain challenges, since only three of its countries are in the top 50. In all the pillars, Singapore consistently leads the ASEAN and is the best performing advanced economy outside Europe and North America. In eight out of 14 pillars, Cambodia is ASEAN s worst performer. Among these 14 pillars, ASEAN countries show strength in price competitiveness, affinity for T&T and the prioritization of T&T. On the other hand, weaknesses are in environmental sustainability, health and hygiene, tourism infrastructure and ICT infrastructure. Singapore Singapore is a highly urbanized country, located at the southern tip of the Malay Peninsula. Often considered as the most tourist friendly destination in Southeast Asia, it offers a wide range of tourist attractions and activities for visitors. Singapore offers a variety of parks, wide range of shops and a mix of culture. Its strategic location also made it known as a pro business environment, accounting for 25% of business tourism in Asia. The tourism industry in Singapore is a major contributor to its economy. According to the Singapore Tourism Board s statistics, over 53% of visitors came from the biggest markets: Indonesia, China, Malaysia, Australia and India.

7 The Ministry of Foreign Affairs, a government body formed in 1965, handles and manages diplomatic relations between Singapore and 182 other countries. As part of MFA s mission, they contribute to the formulation and implementation of Singapore s foreign policies, which include visa policy rules and regulations. For visa and entry requirements for foreigners, only 33 countries are required to have a visa to Singapore. These countries are categorized as either Assessment Level I Countries, which means they are eligible to apply for an e-visa and can be processed within three working days. Countries categorized as Assessment Level II Countries need to visa completely and take longer processing time of seven working days. Travel to Singapore may range from a period of 15 days to 90 days. Philippines The Philippines, with a population of more than 103 million is considered to be the 7 th most populated country in Asia. It offers a plethora of tourist attractions from the beaches of Coron and Boracay to the lush forests of Bohol. The emerging tiger of ASEAN had more than four million visitors in the last year with international tourism receipts accounting for a meager 2 % of the country s GDP. The country gets a small share of 1.1% of the tourism revenues of the region. This is mainly due to the natural geographic challenges coupled with severe infrastructural issues. According to a WEF report on infrastructure requirements, Philippines ranks 114 tourists by Majority of the international travellers arrive by air, but the airport infrastructure and flight frequency are substandard to support the growth in tourism. Major investments are required to improve the in country rural-urban connectivity to make travelling attractive for tourists in the Philippines amongst 136 nations. The tourism ministry targets to attract 10 million. The country also faces challenges due to negative perception portrayed by the Western media. Issues such as hygiene, security and lack of tourism infrastructure drive tourists away to other destinations such as Indonesia and Malaysia. In the Philippines, two government bodies are responsible for enforcing the visa policy, namely the Department of Foreign Affairs (DFA) and the Bureau of Immigration (BI). The visa policy of the Philippines is governed by the Commonwealth Act No. 613 or the Philippine Immigration Act.

8 Most foreign nationals that enter the Philippines would need a visa however there are certain exception to the rule. One of these exceptions is citizens from member state of the Association of Southeast Asian Nations (ASEAN). There are also some citizens of non ASEAN member state wherein the nationals can enter the Philippines even without a visa. Cambodia With tourism arrivals increasing by 24.8% in 2012, the tourism sector is indeed an important contributor of the Cambodian economy. Marketing itself as the Kingdom of Wonder, Cambodia s tourists destinations has three main categories: cultural attractions, natural attractions, and people and traditions. Some of its featured tourist spots are the National Museum of Cambodia, Kirirom National Park and the Beach in Sihanoukville. Over 1 million tourists also visit Angkor Wat in Siem Reap annually. In 2012, Cambodia had 3,584,307 in tourism arrivals wherein almost 50% of the number comes from other ASEAN countries. Cambodia s relation to the international community is handled by Ministry of Foreign Affairs and International Cooperation. This government body is in charge of overseeing foreign relations of Cambodia, maintaining diplomatic missions in other countries and providing visa services for travelers. With the recent adoption of the e-visa system, improvement on tourist visa processing is achieved via online application. Citizens from ASEAN countries except Myanmar are granted visa free travel to Cambodia within a period from 14 to 30 days. For travellers and tourists from other countries, they may be granted a 30 days visa on arrival upon arrival in a major checkpoint in Cambodia. Another option is applying for an Electronic Travel Authority (ETA), however there are some countries exempted from this service. *Please see the PESTE and SWOT in Appendix section for environmental analysis of the three countries. Also see the current tourism trend in these 3 countries from 2008 to 2011.

9 IV. ASEAN SINGLE VISA Given the fast rising number of tourists travelling all over the world, it is necessary to establish certain conditions that make it faster, easier and more efficient for tourists to move from one country to another. One of the most important factors to look at is the visa policies for every country, which have a great impact on international tourism. There is a close relation in the development of the tourism industry in every country with the policies and procedures for visas as well as other travel documents such as passports. Several developments in visa policies in different countries are worth mentioning such as multilateral agreements, wherein there is mutual exemption of certain travellers from visa requirements. Despite the many improvements of visa policies, there are still areas that may have been overlooked, which make these policies inadequate and inefficient. Looking at member states of ASEAN, each country has a different set of visa policies for different non ASEAN citizens. Based on a joint research by the UNWTO and the World Travel and Tourism Council (WTTC), improvement of visa processes could generate an additional US$206 billion in tourism receipts. It can also potentially create jobs as high as 5.1 million by 2015 in the G-20 economies. Therefore as part of the vision of ASEAN integration, movement of people and travellers is an important factor. There is a great lag seen when it comes to facilitating travel for non ASEAN citizens. Patterned after Europe s Schengen Visa which is adopted by 26 European countries, the idea of having a single visa for ASEAN countries for non ASEAN nationals has been going on for quite some time. Under this proposal to be adopted by 2015, travellers are allowed to move from one ASEAN country to another within a limited period of time. This would definitely provide a number of advantages to ASEAN member states. However certain challenges and negative feedback were also raised. There seems to be inability to agree, invoking the barriers of technology, political issues, concerns of sovereignty and security and the different visa systems in the ASEAN member states. There is also opportunity cost in terms of revenue from visa fees if a single visa is generated for all ASEAN countries. Coming up with a single visa has brought in advantages for European countries part of the Schengen Area. Since the founding of the agreement in 1985, the signatory states agreed for the abolishment of internal borders and have one single external border. The agreement also

10 stipulated for the establishment of a common visa policy. Now the Schengen Area operates similarly to a single state in terms of international travel purposes.! One of the greatest contributions of Schengen is easier travel and movement of people through the abolishment of internal border checks. Entry conditions and the conditions for crossing external borders have been harmonized, along with the policy on issuing visas. In effect a foreign traveler can go to all Schengen States with a single visa. This also allows the visa holder to travel across all member countries without going through any official paper work, thus reducing administrative and other transaction costs. When a lot of travelers visit a particular country, economic activity is boosted and thereby tourism is also promoted. Each ASEAN member state has areas of improvement in terms of visa facilitation. There are five areas of opportunity identified. First would be to improve the delivery of information on entry formalities. Second is through the facilitation of current processes needed to obtain a visa. Another improvement opportunity is by differentiating treatment to facilitate tourist travel. This practice of facilitating the visa process for certain types of visitors is widely used among economies especially for temporary visitors. Next would be to institute an evisa program, which is considered to be the most talked about opportunity. This makes it easier to obtain a visa and is less hassle since no physical appearance of the applicant is required. Lastly, which is already adopted by some ASEAN nations it the establishment of regional agreements that allow travelers from a third country to move freely between member countries once admitted by one of the participating countries. V. ONE ASEAN COMMUNITY Despite the doubts of the benefits of the single ASEAN visa, a great difference can be made in identified are areas of opportunity in visa processing policies. Every ASEAN member state has its own visa processes and procedures. These policies are very instrumental in boosting tourism. In fact the G-20 leaders recognized the greater role of a strong tourism industry in creating jobs to drive economic growth and development. Now more than ever, measures taken to promote the tourism industry in ASEAN have been implemented. Building of the ASEAN brand with a tagline Feel the warmth, has been started in order to promote and to meet the objective of marketing Southeast Asia as one tourist destination.

11 With the recent agreement of the Philippines, Myanmar, Cambodia and Indonesia to develop a common smart visa system, we can see that initial steps have already been undertaken in order to boost tourism across Southeast Asia. According to Department of Tourism Secretary, Ramon R. Jimenez, Jr. By recognizing the importance of the connectivity in tourism activities, the statement of intent expresses our desire to give a boost to the tourism sector by facilitating the movement of tourists across borders; by going towards a smart visa through adopting best practices; and maximizing the use of technology to reduce the inefficiencies of the traditional visa application process. The creation of a common smart visa system is projected to boost tourism by as much as 20%. Currently the tourism and travel sector is directly providing jobs for more than nine million people in the ASEAN region, which contribute 5% of the GDP. If the new visa system is adopted, growth in tourism sector would be even more promising with increased investments and job creation. VI. COOPETITON IN VISA POLICY RULES AND REGULATIONS Often times, travelers view visas only as a formality imposed by the government and requires cost to obtain. The cost involved in obtaining a visa can either be direct monetary cost in the form of fees or indirect cost such as distance, time spent waiting in queues and the overall complexity of the process. When these costs exceed a certain threshold of the traveler, they may decide on taking on another destination wherein there is less hassle involved in travelling. Member countries of ASEAN need to realize that sum of parts is greater than the whole and the benefits would be tremendous if they work in a co-operative manner. Rather than ASEAN countries like Singapore, Philippines and Cambodia promoting tourism individually, steps should be taken to promote the whole region as a single tourism destination. They should come together in discussing the developmental issues in the tourism sector and take measures to improve tourism in ASEAN as a whole. It is necessary to synchronize policies, to facilitate travel within the region. This would also incentivize individual countries to spend and improve physical infrastructure. Countries should feel more comfortable sharing the best practices and technology for seamless tourism experience. While it is true that creating a common visa scheme is not the only way to facilitate a better travel experience for tourists, but the benefits of doing so may outweigh its disadvantages. Individual ASEAN member states may improve on its own visa policies and process through

12 simplifying application procedures, improving processing times, reducing fees and extending visa exemption lists. But through cooperation, synchronization and integration of ASEAN countries to create a common policy, greater value is achieved for travellers, which will then eventually reflect in individual ASEAN economies, thus fulfilling the vision of the ASEAN Additions in Term 3 VII. REDDING FRAMEWORK Usually all the businesses have economic, social and political forces affecting their existence in the current environment. Redding framework is one such useful tool which would account for structures and systems for coordinating and institutions, culture and exchange.

13 This is the Redding Framework for our topic. As mentioned above, we have initially decided to go ahead with the single visa move for only 3 countries Philippines, Cambodia and Singapore. We are looking at combining the entities from these places as the ASEAN Visa Council - 1. Ministry of Foreign Affairs, Singapore 2. Department of Foreign Affairs, Philippines 3. Ministry of Foreign Affairs and International Co-operation, Cambodia This would serve as the ASEAN enterprise system in the Redding Framework. With the abundance in natural beauty in the Singapore, the Philippines and Cambodia, the tourism resource potentials are still highly underutilized. The complicated and time consuming visa process turns many tourists off when it comes to travelling multiple countries Rankings based on Travel & Tourism Competitiveness Index (TTCI) for policy rules and regulations puts Philippines and Cambodia at 70 th and 132 nd position respectively. Singapore is at the top of TTCI ranking for policy rules and regulations. The ASEAN Visa Council, with the high profile representatives from each of the three participating nations, will have bargaining power to implement necessary discipline for competitiveness on the two lagging members. Please take a look at the comparative TTCI rankings of the 3 countries in Exhibit D. The ASEAN Enterprise System which is the ASEAN Visa Council needs elements of Coordination, Order and Culture. By Coordination we mean that there should be enough resources that should be adaptable to the different environments. There needs to be proper coordination among the visa departments of the three participating nations to have a set of common visa norms acceptable to all. This is a challenging task since the existing norms and rules would also be different for all the 3 countries. Apart from the visa departments, there is coordination that will be required amongst the tourism departments of the 3 different countries. There would also be coordination required between the ASEAN Visa Council and the tourism department. All the 3 countries have different cultures and unique points of sightseeing. The Philippines is known for its beaches and uses the tagline Its more fun in the Philippines for promoting tourism. On the other hand, Singapore is a small country that boasts of extremely well built infrastructure with the tagline Your Singapore. Cambodia is a completely different country with a pertaining king rule even today and is branded as the Kingdom of Wonder. It is known

14 for its historical architecture and structures. Hence the willingness for coordination of all the three members is a very important factor in the success of this endeavor. The first important thing to do would be to pull together the tourism promoting resources of all the three participating nations and come up with a combined effort to promote the tourism of all three together. Enhance inter member nation travelling convenience by encouraging growth of transportation infrastructure to improve connectivity. This could be compared to the Europe system of travel which is so convenient for passengers. All they need to do is take a pass for the Euro Rail and they can travel anywhere across Europe. Considering the different dynamics and waters of South China Sea between these countries, they could think of water transport. But this might take a lot of time and not all travelers have the luxury of time. There are flights operated by airlines such as Cebu Pacific and others between the Philippines and Singapore. The same offers could be started between all these countries. This would enhance inter member nation travelling convenience by encouraging growth of Transportation system among themselves. Order would mean to identify the people and institutions that would enable the society to standardize and regulate the conduct of stakeholders. With the members dependent on the efficiency of the entire group, there would be more pressure on each nation from the other two to reduce corruption in tourism. For example, if country A is high on corruption and country B is not, now with one set of rules and the same number of days of visa processing in one country, the other country will also have to follow the same rules. This would prove to be a challenge initially but with time it would definitely curb. Singapore is a country that invests a lot in infrastructure. Efforts similar to Singapore s $2 billion Tourism Development Fund (TDF) dedicated for certain initiatives such as improving infrastructure should be made by the other members too. This would form a similar set of ASEAN nations instead of the huge disparity between them. Such projects might take a few years to show results, and continual efforts are needed for long term benefits. Safety and security remains to be a concern that affects a lot of sectors including tourism. In terms of human resources, Singapore ranks 2 nd among 139 countries and this is seen as a key aspect of ASEAN s strategy to develop the tourism sector specifically in mobility and training. Philippines and Cambodia do not rank high on Human Resources. But these countries can

15 exchange ideas and best practices and make the best out of existing resources. Each country s tourism department must encourage tourists to visit other member nations and thus through Coopetition each country strives to achieve their tourism targets. There must be plans laid out to achieve this. Billboards and different forms of advertisements should be done at strategic locations in the cities. The third most important block in the Redding Framework is Culture. Every country would have its own inherent culture. Bridging the gaps between the culture and forming one unit is an integral part of this framework. Co-ordination, Order and Culture are interconnected and need to be worked hand in hand to get the One Visa concept a success. ASEAN countries have a remarkably high level of rich heritage but they are not amongst the high ranking nations in terms of showcasing their culture in spite of its unique heritage and beauty. For business culture, the Philippines management style tends to be paternalistic. It is also often build upon personal relationships. In Singapore, the Confucian business culture reigns wherein managers expect to be respected and obeyed. Loyalty and dedication are also highly valued. The Cambodian culture values hierarchy. Suitable protocols are followed. Respect to the most senior person is a given. So, the ability to handle the cultural difference shall play a major role in the success of this endeavor. Singapore is a part of ASEAN and so are countries like Cambodia and Indonesia. But the mindset of the world outside for these countries is poles apart. These countries are extremely different in terms of per capita income, GDP, education and life facilities etc. Travelling in Singapore is way different from travelling even in Bangkok. The standard of living is much higher in Singapore as compared to any other ASEAN country. This directly related to the progress that Singapore has made and its per capita income. Keeping all this in mind, we have come up with certain recommendations for One Visa in ASEAN. These recommendations would be instrumental in ensuring that this vision in light of ASEAN 2015 is a success.

16 Our recommendations for One Visa in ASEAN to be a success are: 1. Synchronization of policy rules and regulations in preparation for the adoption of the single ASEAN visa 2. Develop infrastructure (Physical and ICT) to reduce bottlenecks in long lines and eliminate redundant steps in the process. 3. Streamline visa processing procedures to lower cost and promote tourism in ASEAN countries as a single destination!!!!!!!!!!!

17 APPENDICES A. SWOT Analysis Internal Analysis Ministry of Foreign Affairs Singapore Strengths Weaknesses 1. ASEAN and the US issue the Joint Vision Statement to launch the ASEAN-US Enhanced Partnership. 2. Launches of new eregister portal 3. Maintains diplomatic relations with 182 countries 4. Strong government support with little or no disruption of policy implementation resident foreign Embassies and High Commissions, 39 foreign Consulates, and 8 International Organizations based in Singapore. 1. Public perception of the Singaporean government. 2. Hesitation of the people to try eservices of the government Department of Foreign Affairs Philippines Strengths Weaknesses 1. Foreign policies are decided in the context of ASEAN based on the constitution 2. Has 60 embassies and 20 consulate generals all over the world. 3. Strong relations with Asian nations 1. Tension with rival international claimants to various land and water territories in the South China Sea 2. Policy process has been easily affected by the pressures of intra-elite rivalries, organized interests both foreign and domestic and the intrusions of elected politicians, their business friends, and their wives. Ministry of Foreign Affairs and International Cooperation- Cambodia Strengths Weaknesses 1. Launching of the e-visa system 2. Diplomatic relations with the United States, United Kingdom, France and as well as with its Asian neighbors. 3. WTO membership 1. Cambodian government has corruption problems and poor governance 2. Falling foreign direct investment (FDI) 3. Border disputes that arise between the Cambodia and its neighbors occasionally External Analysis Ministry of Foreign Affairs Singapore; Department of Foreign Affairs Philippines and Ministry of Foreign Affairs and International Cooperation- Cambodia (ASEAN Tourism Industry) Opportunities 1. Willingness of leaders of ASEAN nations to build and link countries in the region through a cyber-highway. 2. Pooling of resources (human, capital and physical capital) for planning and implementation Threats 1. Impact of global financial crisis 2. recurring natural disasters such as tsunamis, super typhoons, earthquakes 3. Man made disasters such as terrorism and separatism.

18 3. The growing importance of multilateral and inter-regional organizations to promote common interest 4. Prospects of ecotourism and ethnic tourism 4. Challenges of climate change 5. Political instability in some ASEAN countries 6. Cyber- terrorism for e-government services 7. Territorial disputes involving some ASEAN countries B. PESTE Analysis ASEAN Nation Political Economic Social Technological Environmental Singapore Philippines -Efficient and transparent government -5 th least corrupt nation in the world (WCR,2009) -Attractive tax policies -18 FTA with 24 trading partners -High corruption rate -Trade to GDP ratio of 270.8% in 09 -High dependency on global market trends -High proportion engaged in advanced activities -Sectors are open to FDI -High foreign exchange reserves -Significant percentage of non-residents -Widening trends of income inequality -92.5% literacy rate -Efforts to reign in knowledge transfer -Has welleducated workforce -World-class technological infrastructure -has a very innovative focused culture -well connected with different parts of the world -Low spending on R&D activities -External dependency for new technology -EPI: 28 th out of 163 -Rich natural resources Cambodia -Membership of most major international organizations (UN, ADB and IMF) -Police and judicial systems are believed to be corrupt -Economy is driven by the garment and tourism industry -Lack of legal protection for investors export reached $3.9 billion -95% of population have Buddhism faith -75.1% literacy rate -Khmer is a first language spoken by 95% of population -Way behind in terms of technology -spillover of the technological knowledge from FDIs -Environmental and natural resources are threatened by short sighted over exploitation - Low awareness level on environmental issues

19 C. Tourism Trend (Added in Term 3) Current Tourism Trend: 14, , , , , , , Targeted Tourism Trend: Cambodia Philippines Singapore Country Target Year Cambodia 7 million 2020 Philippines 10 million 2015 Singapore 17 million 2015 D. Travel and Tourism Competitiveness Index (Added in Term 3)

20 E. PARTS Framework Players The tourism industry involves several stakeholders. These stakeholders classified into four main categories based on the Porter s Five Forces Framework as seen below: Added Value The Singapore government, being strong in policy implementation has earned them the top spot among 139 countries in the first pillar on policy rules and regulations in terms of measuring travel and tourism industry. The Philippines on the other hand, offers strong relations on Asian nations and take into consideration the ASEAN community in decision making on foreign policy. Cambodia, being the weakest link in the ASEAN region has just begun to pick up through launching its e-visa system, which allows faster and more efficient visa processing. Leveraging on the strengths of the Ministry or Department of Foreign Affairs of these countries will create value and synergy in time for the adoption of the single ASEAN visa through lowered cost and elimination of redundant processing of visa application per country.

21 Rules The foreign policies of Singapore, Philippines and Cambodia are developed to maintain good relations with the international community. These policies will serve as the guide in knowing which areas are to improve through synchronization of policy rules and regulations in preparation of the adoption of the single ASEAN visa by Tactics In collaborating through co petition, the greater good of the whole ASEAN tourism industry will prosper. By capitalizing on existing resources such as good relations with other nations and implementing the best practices of the Singaporean government in their policy rules and regulations for visa processing, travellers from all over the world will be enticed to visit ASEAN with the single visa and will have a great travel experience brought by easy movement from one country to another. Scope Cooperation between Singapore s MFA, Philippines DFA and Cambodia s MFIC, can be break new grounds in developing and streamlining policies for visa processing in preparation of the single ASEAN visa proposal in view of the ASEAN integration in Together, these three nations can create value for tourists and travellers through reducing bottlenecks in waiting in long lines and eliminating of redundant processes in visa application for every country. Economies of scale are achieved when costs are lowered for every visa issuance.

22 References: A%20SWOT%20Analysis%20of%20ASEAN%20Tourism.pdf ASEAN Secretariat (2012). Tourism Marketing Strategy (ATMS) Jakarta.ASEAN ASEAN Secretariat (2011). ASEAN Tourism Strategic Plan Jakarta.ASEAN World Economic Forum (2012). The ASEAN Travel & Tourism Competitiveness Report 2012: Fostering Prosperity and Regional Integration Through Travel and Tourism,. Geneva. World Economic Forum