TERMS OF REFERENCE ANNEX D

ANNEX D
TERMS OF REFERENCE
I. PROJECT TITLE: PHILIPPINE TOURISM PROMOTION TO
HONG KONG and MACAU MARKET
II.
BACKGROUND:
Hong Kong is among the top ten source markets for Philippine tourism. Arrivals from
Hong Kong experienced double-digit decline in year 2005 (-34%) and 2006 (-10.2%)
resulting from the SARS scare among Hong Kong travellers as well as the negative
image of the country. The Department of Tourism hired a Hong Kong-based
Marketing Representative in 2006 who implemented intensified marketing campaigns
for the Philippines to win back this market. This resulted to a steady increase on
Hong Kong tourist arrivals to the Philippines from 2007 to 2010. The unfortunate
hostage incident in Manila last August 23, 2010 which resulted to the issuance of a
“Black” travel alert to the Philippines by the Hong Kong government have greatly
affected the country’s image among the Hong Kong travelling public and travellers
from other countries to some extent. While the travel alert is in force, the
Department of Tourism is gearing towards the implementation of a Recovery
Marketing Plan to regain the confidence of the Hong Kong general public.
III. PURPOSE/OBJECTIVES:
To finalize and carry out the Recovery Marketing Plan, the Philippine Department of
Tourism is in need of the services of a Hong Kong-based Tourism Marketing and
Public Relations (PR) Company to represent Destination Philippines and its tourism
promotions interests in the Hong Kong and Macau market. The selected company
shall undertake the planning, development and implementation of a PR and
marketing campaign for Philippine tourism in accordance with the Recovery
Marketing Plan in order to meet the following objectives:
A. Travel Trade Development:
1. Regain the confidence and increase the number of Hong Kong and Macau
wholesalers, tour operators and travel agents selling Philippine programs
2. Expand Philippine destination and product offerings of existing Hong Kong
and Macau travel trade partners
3. Work out joint promotions activities with Hong Kong as well as Philippine
travel trade partners
B. Consumer Promotion:
1. Sustain consumer awareness and knowledge of and interest in Philippine
destinations and products;
2. Sustain the increase in tourism arrivals to the Philippines from Hong Kong
and Macau;
C. Public Relations:
1. Build a distinct and positive branding for Destination Philippines in the
Hong Kong and Macau market and position it as a preferred travel
destination in Asia;
2. Maintain and sustain Philippine tourism presence in the market place and
promote as well as protect its interests
IV. MARKETING AND PROMOTIONS FRAMEWORK
To be able to achieve the above-mentioned objectives, bidders shall prepare a
proposed Recovery Marketing and Promotions framework that will set and guide the
directions and actions in the market place, to include the following:

A. Overview and analysis of the Hong Kong and Macau market
B. Philippine Destination Analysis in relation to the Hong Kong and Macau market
C. Methodology and Approach for Philippine Tourism Marketing and Promotion in
Hong Kong and Macau
D. Strategic Directions / Tactical Plans
1. Trade Development
2. Consumer Promotion
3. Public Relations
V. SCOPE OF WORK/DELIVERABLES
A. RECOVERY MARKETING AND PROMOTIONS PLAN
1. Prepare and implement a proposed recovery marketing and promotions plan
including specific activities and proposed budgetary requirements in
consultation with DOT.
B. TRADE DEVELOPMENT
1. Production assistance
2. Familiarization Trips (minimum of 4 famtrips per year with negotiated FOC
international air tickets)
3. Travel trade data base
4. Newsletters/e-newsletters
5. Sales calls/presentations
6. Participation to travel trade shows, conferences and the like
C. CONSUMER PROMOTION
1. General information service
2. Joint Promotions
3. Below the line promotional activities
4. Co-branding
5. Barter agreements
6. Participation to travel shows including setting up and manning of Philippine
booths
D. PUBLIC RELATIONS
1. Permanent Philippine press cabinet service and press clipping
2. Press releases
3. Syndicated articles
4. Press kit
5. Media trips (minimum of 4 media trips per year with negotiated FOC
international air tickets)
6. Media interview assistance
7. Networking and lobbying with travel journalist organizations
8. Crisis communication management
E. REPRESENTATION
1. Represent the Department in events and meetings
2. Undertake policy and lobbying interventions to spur market growth
3. Extend support to the Department of Tourism as needed in the interest of
Philippine tourism promotion in Hong Kong and Macau
4. Maintain a harmonious working relationship with the Philippine Embassy in
Hong Kong and Macau
VI. STAFF COMPLEMENT
In order to meet the objectives and carry out the activities for this project, bidders
shall submit the recommended staff complement with the following information:
A. Recommended personnel to be dedicated to the project
B. Qualifications of personnel
C. Recommended Work Schedule
VII. REPORTS AND TIME SCHEDULE
The following reports shall be submitted as part of the deliverables of the project:
A. Market Intelligence (monthly)
B. Report of Activities (monthly)
C. Press Clippings (monthly)

D. Telephone and Website Inquiry Reports (monthly)
E. Other Reports (as necessary)
e.g. Familiarization Trips Terminal Report (as needed)
Travel Fairs / Sales Missions Terminal Report (as needed)
VIII. TIME FRAME:
The contract duration is for a period of twelve months subject to mid-term review,
and if found that bidder’s performance is satisfactory based on the required
deliverables for this project, the contract shall be continued until the twelfth (12 th )
month. Otherwise, if bidder’s performance is found to be unsatisfactory, this contract
shall be terminated at the end of the first sixth (6 th ) month after the conduct of said
review and notice to bidder.
Renewal of contract shall be at the sole discretion of the Philippine Department of
Tourism and subject to the assessment of the performance of the PR company for
the entire period covered by the contract.
IX. BUDGET
Total Budget allocation for 1 year: Php2,820,000.00 or USD 60,000 inclusive of
taxes.
Breakdown:
Retainer’s Fees:
Php164,500.00 (USD 3,500) per month
Php1,974,000.00 (USD 42,000) for 12 months
Funds for Operations:
Php70,500.00 (USD 1,500) per month
Php846,000.00 (USD 18,000) for 12 months
X. PAYMENT PROCEDURE
Charges for retainer’s fees shall be billed directly to the Department of Tourism Head
Office.
Funds for Operations shall be remitted to the PR Company on reimbursement basis.
CONFORME:
______________________________
[Authorized Signature]
[Name and Title of Signatory]
[Date]
TOR as of February 23, 2011