Multi-billion dollar opportunity, anyone?

This multi-billion dollar opportunity was within our grasp many years ago if we only did our homework and proceeded in earnest to develop and position the country as a retirees’ haven. In fact, many of the opportunities the Philippines missed out on were a matter of doing one’s homework.

If we are to market the Philippines as a retirees’ haven and gain a significant share in this multi-billion dollar bonanza, then we had better be geared up to be not only gracious and pleasant, but more importantly, be efficient, effective and well-equipped hosts who aim to please even a small percentage of close to a billion retirees seeking ideal overseas havens in their twilight years within the next decade.

Industrialized countries are expected to produce almost $870 million loaded retirees or what others call as senior or long- stay tourists. A large portion of this almost one billion retirees, experts predict, would be looking to countries where they can enjoy a relatively more comfortable and luxurious life.

What makes countries like the Philippines attractive to retirees is that, thanks to the $1-P52 exchange rate, they get more value for their money. The amount of $2,000, for example, if spent in their home countries would accord them only the very basic needs and not much else.

But the same amount, in contrast, if spent in retirement havens like in the Philippines, would mean a life of relative comfort and all other perks they could not otherwise afford back home. Imagine the seemingly endless wave of economic benefit this country would generate if it can attract one million retirees who would spend an average of even just $1,000 a month.

Thailand and Malaysia have been making a killing out of this industry for years, but sadly, not us. To date, industry experts estimate that Thailand hosted almost nine million retirees of various nationalities in 2004. Malaysia did even better with more than 13 million, and is targeting 20 million by yearend. The Philippines? Heck, it can only muster two million tourists, not even the economically beneficial long-staying variety.

Two decades late

The government started entertaining the thought of cashing in on this demand as early as two decades ago with the creation of the Philippine Retirement Authority (PRA). The PRA is a government-owned and controlled corporation established by Executive Order 1037 on July 4, 1985 under the Office of the President. It was attached to the Board of Investments in 2001.

PRA is the lead government agency with a mandate to attract foreign nationals and former Filipino citizens to retire in the Philippines. Its thrust is towards accelerating socio-economic development, contributing to foreign currency reserve, and providing in a most attractive package the best quality of life to its foreigner-retirees.

More than two decades after the PRA was signed into law, the Philippines is still way behind the Thais and Malaysians. The good news is, albeit very belatedly, is that the government is again taking a serious look at this neglected industry, this time with the needed support and cooperation from the private sector.

Retirees from First World countries will steadily increase in the next 10 years, and the Philippines can still gain a sizable share of the billion-dollar windfall if this time it gets its act together and will not wait another 20 years before actually making a determined bid.

New apple of the eye

More aware of its vast income and job-generating potential, Malacañang recently proclaimed that the development of the retirement industry is now a flagship project of the Arroyo administration. Retired police official Edgardo Aglipay was tapped to head the PRA. Now all he needs is a competent team of business-savvy aides.

The amiable retired police officer pointed out that with increased demand for hospitals and medical services to be triggered by the expected arrival of foreign retirees and retiring balikbayans, the massive exodus of our physicians and nurses may actually be reversed.

Aglipay is banking on curbing the brain drain of Filipino physicians, nurses and other allied health personnel who are renowned for their skills and professionalism by giving them a worthwhile job in the country.

Indeed, for a place to become a favored retirement and medical tourism destination, it must have a steady supply of skilled medical professionals, world class medical equipment for state of the art procedures. The increased demand for their services in the local market may slow down the exodus of health care professionals.

This early, people behind the plan to develop our retirement industry are harping at the possibility of luring in one million retirees by 2015, create four million new jobs and reap $40 billion in income. Wow! Not even the much ballyhooed potential of the tourism industry could realistically aim for such a target.

Banking on the private sector

A good start that must be sustained if we are to lessen the gap with other competitors is the initiatives and goals set during the Philippine Retirement Industry and Investment Summit held recently.

The PRA, together with the private sector-backed Philippine Retirement Inc., and other concerned government agencies linked up to draft a blueprint and facilitate the development of this mega-billion dollar industry. The PRI is made up of companies engaged in real estate development, medicine, medical services and facilities.

Among the agreements forged was the granting of economic zone status in areas where retirees would wish to set up business enterprises, provisions of security forces in and around retirement villages and communities, and special lanes and services for retirees at all international airports nationwide.

Those are in addition to the standard perks and privileges accorded by the PRA to qualified retirees such as purchase privilege for condominium units, lease of lands, tax-free importation of household items, travel tax and visa exemptions among others.

Here’s hoping that groups behind this initiative sustain the zeal to further the retirement industry, and that they will not succumb to the usual "ningas kugon" syndrome.

Tagaytay Hold’em Challenge Part II

The next Casino Filipino Tagaytay qualifying/satellite tournament, dubbed as Tagaytay Challenge Part II, is scheduled on 19th August 2006. Winners of this leg will join Gary Gabionza, Victoria Lopez, Gregory Pratt and Herbert Uy — winners of Tagaytay Challenge I — to the Grand Finals of the 2nd Million-Peso Hold’em Philippine Championship to be held on 16th and 17th December 2006 at Casino Filipino Pavilion, Manila.

Interested poker players may visit www.PhilippinePokerTour.com or call the Secretariat (c/o Cindy) at 817-9092 or 812-0153 for more details.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected] or at [email protected]. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz