The people have spoken

Last Tuesday’s Awards Night for the Petron Xtra Unleaded 2006 Auto Focus Automobile/Motorcycle of the Year People’s Choice Awards is a testamentary feat for the Filipino consumer.

As I have said in my welcome speech, in many parts of the world, the motoring industry is always considered as one of the more accurate barometers to determine the health of a country’s economy. Although in some places, especially the developing ones, it is said that the performance of the motoring industry not only mirrors the economic status of the country, it actually dictates or influences the economy’s fate. In the Philippines, many business observers maintain that the motoring industry, comprising the manufacture and distribution of automobiles and motorcycles, may not only be considered as one of the major business sectors whose performance reflects the economy’s state of health; it can actually make the flailing Philippine economy healthy provided, of course, that some challenging conditions are altered, like the government’s frame of mind when it comes to taxation and the apparent less that determined will to put a complete stop to the wanton importation of used vehicles.

First, let’s tackle what appears to be the government’s frame of mind when it comes to taxation. A lot of us motoring journalists who went to Thailand recently for the Bangkok Motor Show learned that when the pickup became evident to be the popular choice for transport by that nation’s populace, the government stepped in and came up with tax incentives to make it more affordable. In the Philippines, when a particular vehicle sells, the tax can only get higher.

Now the wanton importation or dumping of used vehicles, automobiles and motorcycles alike, has been proven in the past to have caused the downfall of one country’s motor industry, not to mention the emission issues that come with it that need to be fully addressed. But many are still asking: have we really and truly stopped this industry damper?

These are only some of the concerns of the industry, and we hope that with undertakings that bring to fore the popular choices of the Filipino populace, initiated by the private sector, we can help, in our small way, to propel the industry to greater heights and give the consumers an opportunity to make better and more educated choices. I strongly feel that helping the manufacturers and distributors of automobiles and motorcycles in the country get a better feel of what the public wants and prefers would eventually make them come up with better vehicles that would best suit the market’s needs and wants. Standards of performance and safety would be raised and probably a healthier business atmosphere can be achieved, therefore a more dynamic motoring industry and consequently a more progressive economy for the country.

To all the winners in the various categories, you are truly representative of what the Filipino consumer wants in his choice of automobiles/motorcycles. And to industry friends who made this undertaking possible, Petron Xtra Unleaded, Michelin, Asahi Glass, Bolinao Security, Crystal Clear Water, Premier Wines & Spirits and Asia Brewery, Inc. Mabuhay kayo.

Tourism Bill needs further study?

The controversy surrounding Senate Bill No. 2138 authored by Senator Richard Gordon which seeks to reorganize the Dept. of Tourism continues to rage. Some quarters in the travel and tourism industry take exception to specific provisions in the bill that touch on the new powers and functions of the department. The Tourist Bill seeks to have the DOT represent the government in all domestic and international conferences and in all multilateral or bilateral treaties and international agreements concerning tourism, and ensure government’s implementation and compliance with all obligations arising there from, particularly those that facilitate travel by air, sea and land. From all appearances, these are concerns of other departments like the DOTC, and the apprehension here of the travel industry is that the DOT Secretary will have a say on aviation issues, which isn’t everyone’s area of competence. The bill also provides to effect the removal of unnecessary barriers to travel, and the integration and simplification of travel regulations. Perhaps the security implications of this provision should be further reviewed as this could open the doors to laxity in implementing travel regulations.

Reading through the bill’s provisions, one is overwhelmed by the vastness of and the overreaching powers that the DOT Secretary stands to inherit should the bill see light. For instance, he will be an integral part of all meetings of government agencies, boards, commissions, etc. that may affect tourism, including transportation and travel, peace and order, national emergencies and disaster coordination, public utilities and other public infrastructure, foreign relations and immigration. He will act on complaints concerning tourism enterprises and exercise quasi-judicial functions in the process of accreditation, suspension or prohibition of the operation of tourism enterprises, will formulate and enforce standards for tourism enterprises, will license, accredit and classify tourism enterprises, and thus may suspend or prohibit their operation in accordance with duly promulgated rules and regulations. Under this bill, every local government unit with a duly-prepared tourism development plan shall have the authority to grant licenses and permits for the operation of tourism enterprises within their jurisdiction…the local government shall not renew any license or permit of any tourism enterprise that has failed to obtain or lost accreditation from the Department. My reservation here is that these provisions could provide an opportunity for corruption again in the process of accreditation and licensing. There is an apparent duplication of functions of local government units, particularly in the licensing division, and the local government units would apparently lose their freedom to make decision to DOT. The Bill threatens to impose "suspension of the power of the local government to issue licenses and permits to tourism enterprises and imposition of reasonable fines and penalties against the responsible local government executive and subordinates" where they fail to act as required after proper notice and hearing conducted by the DOT. What’s more, Tourism Philippines which shall oversee all these will be a very powerful corporate body under the DOT, with extensive funding from other agencies. The PAGCOR, for instance, will remit 25 percent of its net income for the Tourism Promotion and Development Fund; Duty Free Philippines will remit at least 50 percent of its income to this fund, in lieu of its statutory remittances to the National Government, and at least 25 percent of the net income of international airports and seaports to be taken from the share of the National Government. On top of this, figure out a minimal tourism fee which "shall not exceed $5 to be collected from foreign guests per night spent in accommodation establishments" which shall be remitted to Tourism Philippines. The Hotel and Restaurant Association of the Philippines (HRAP) has taken a stand against this provision particularly, on the grounds that it is an additional financial burden on the tourism sector, already saddled with corporate, government and municipal taxes, not to mention the VAT. The additional levy will have to be added to the room rates, and since this is a highly competitive sector, this could be counter-productive in the government’s efforts to attract tourists.

The tour operators and the HRAP find so much that need to be reviewed in the National Tourism Act. I venture to say that more consultative meetings are in order for the Senate, and the public, to thresh out all the pertinent concerns.

Poker Tour Philippines winners

Congratulations to all the top ten winners of the Million Peso Poker Tournament held last Saturday: 1st place and Grand Champion, Jo Derek Bautista, a businessman from Baguio City; 2nd place Ricky Sarmiento, a registered nurse from QC; 3rd — Ikaika Villa, 2-time surfing champion from Honolulu, here for a honeymoon and to play poker; 4th— Mike Tyler, accountant from Cebu City and 1st runner-up in the Poker King Challenge 2005-2006; 5th — Manuel Regis, retired businessman from Cebu City; 6th — Michael Alonzo, a doctor by profession; 7th — Ruben Tan, a businessman and a newbie in Poker; 8th — Benny Gonzalez, an avid poker enthusiast; 9th- Jun del Prado, a veteran poker player from Cebu and consultant for SM; and 10th — Eric Sia, a lawyer by profession. It was a fantastic turnout, a grueling two-day event that saw the best poker players in the land competing and vying for honors. This places you in the top ten Hold’em poker players in the country. Till next tournament, guys!

Mabuhay!!! Be proud to be a Filipino.

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