Tourism: Engine of economic growth

The current administration has identified the tourism industry as a key engine of economic growth, and has put in a lot of effort to position the Philippines as a global destination of choice through aggressive marketing campaigns and the continued implementation of several infrastructure projects over the years. These include airport projects, ports, roads, and bridges including the P52.44-billion Southrail project, and the roll-on, roll-off (RORO) facilities. A lot of these projects are concentrated in the so-called Central Philippines Tourism Super Region which, according to DOT Secretary Ace Durano, accounts for more than 50 percent of the country’s tourism industry. Despite the global economic slump, the Philippines managed to attract close to four million visitors last year – but this is still a far cry from the 10 to 15 million average of countries such as Malaysia, Singapore, and Thailand (although the crisis in Thailand has shattered its image as an Asian paradise) while Vietnam and Indonesia attract more than five million tourists per year.

Despite the upgrading of airports and other infrastructure, complaints still come about the difficulty of traveling to prime destinations like Boracay for instance. Max Soliven used to say that going to Boracay is like an obstacle course, with passengers having to go through a torturous boat ride and an equally unpleasant travel by road before they can reach their destinations of choice.

While it may irritate PBA III no end that so many are recommending people to positions in his Cabinet, it is understandable that he prefers to appoint those whom he has known for some time. After all, the president needs to surround himself with people he can trust particularly on critical positions such as Executive Secretary, Justice Secretary and Chief Legal Counsel, especially since he has a “macro” style of management wherein he just gives instructions on what he wants accomplished without necessarily going into details. However, a position such as that of the Tourism Secretary is another matter. PBA III would be better off getting somebody who has the drive, the passion and obviously the experience and know-how for the position.

One name that keeps popping up is that of Andy Bautista, CEO of the Kuok Group whose properties in the Philippines include the Shangri-La chain of hotels. A lawyer by profession, Andy is also the dean of the FEU law school as well as a weekend columnist of the Philippine Star. Knowing Andy, he is not only capable but also gifted with an ability to see the total picture and view the long term. His expertise as a lawyer will also come in handy particularly in helping understand legal entanglements – such as the one generated by the Tourism Act of 2009 or Republic Act 9593 which is supposed to help the Philippines become a more competitive destination in Asia through a stronger partnership between the government and the private sector – but has now become a source of discontent and irritation within the tourism industry, with accusations that appointees to the newly-created bodies were made without prior consultation with the private sector.

No doubt the tourism industry has so much potential to generate a million jobs and earn billions of dollars in revenues and tourism-related investments into the country. In the Bicol region alone, the DOT reported an uptrend in gross receipts from P443.5 million in 2007 to more than P1 billion in 2009. One sector that shows a lot of promise is medical tourism, with gross revenues estimated at $350 million since the program was launched in 2006 – which is still peanuts when you think about the $3 billion-plus potential earnings of the global medical tourism industry per year. Given our large pool of competent healthcare professionals who speak very good English, the presence of medical institutions and facilities now offering topnotch services at par with the rest of the world, our relatively pleasant climate and the reputation of Filipinos as friendly and caring, individuals, there is no reason why the Philippines cannot become a leading healthcare destination.

Despite the hitches, the Philippines seems off to a relatively good start this year considering the number of recognitions from some international travel magazines that listed the Philippines among the top 10 destinations for elite travelers in China, Russia, Australia and North America. But aside from focusing on foreign visitors, the DOT should also encourage “local tourists,” similar to what Thailand did when it concentrated on strengthening its domestic market.

But one gripe among local tourists is the neglect of basic facilities and services like toilets that more often than not are stinking and dirty. Another complaint is the perception that traveling to local destinations seems to be as costly as – if not more costly than – going to foreign destinations like Hong Kong. Some locals complain about ridiculous charges for transportation and transfers – which is understandable since they know the real transpo costs. Another concern is frequent power interruptions and the growing costs of electricity which hamper operations, like what’s happening in Zamboanga City. Sources say a power supply agreement entered into by ZAMCELCO and IN2Power Inc. could raise power rates by as much as 71 percent – making this basic utility unaffordable to most people – which in turn could make the city unattractive both as an investment and tourist destination.

Then there is also the issue of is sustainable development – wherein tourism revenues must not pre-empt environmental protection and preservation. While Thailand was successful in generating a huge number of visitors, it came at a cost to its environment and culture. This is where cooperation between government and private sector becomes critical. As GMA pointed out in one of her speeches, we can create jobs even while we continue to keep our environment safe – and how to keep that delicate balance will certainly be a tough job for the next Tourism secretary – whoever he may be.

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