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Business

Clark looks lifeless

DEMAND AND SUPPLY - Boo Chanco - The Philippine Star
Clark looks lifeless
About a month ago, my Singapore-based son and his family took a CebPac flight to Clark and we picked them up from the newly opened Hilton the following day. My son was impressed by the new Clark International Airport. But he wondered why there were hardly any flights there. The airport was practically empty compared to the crowded NAIA terminals.
STAR / File

Compared to the bustling areas around Clark from Mabalacat to Angeles City, Clark seems rather dead. Yet, Clark Development Corp. (CDC) reports investments worth P44.4 billion in the first quarter of this year. Baka promised investments lang, yet to see the light of day.

About a month ago, my Singapore-based son and his family took a CebPac flight to Clark and we picked them up from the newly opened Hilton the following day. My son was impressed by the new Clark International Airport. But he wondered why there were hardly any flights there. The airport was practically empty compared to the crowded NAIA terminals.

Asking around, it appears that the new impressive airport is processing well below its pre-pandemic traffic of about five million passengers a year. Is this a marketing problem or something inherent to a government project that seems to have been forgotten after much hoopla?

I asked someone who used to be involved with Clark and his response: “Hi Boo. Traffic is 2.4 million. It’s down. I asked the guys there why? The response was the airlines using Clark cannot increase their frequency because of lack of airplanes. (CebPac had problems with maintenance of Pratt and Whitney engines). But I think Clark can do better. I really feel bad about it. Sayang the infrastructure and the Changi partnership.”

An airline executive said Clark is simply not gaining a lot of traction after the pandemic. Demand is still mostly in Manila, mainly because of better network and connectivity.

The congestion in NLEX was also cited as a disincentive for people to use Clark especially for domestic flights. A two-hour NLEX trip to Clark to take a 45-minute trip to Bacolod does not make sense. The train service from Clark to Manila cannot come too soon. Last I heard, 2026 yet.

It seems most of the international flights to Clark are charters from South Korea with their load of passengers eager to play golf and take their chances in the casinos.

Said another: “Clark could specialize in catering to the budget carriers which are price sensitive regarding landing fees and turnaround times. That way, NAIA could be decongested. CRK could also be the hub for spokes by twinning international carriers with domestic airlines that cater to tourism destinations whose airports cannot take in direct international flights. One example would be Busuanga in Palawan. Siargao is another popular destination that has a small airport.”

Clark Airport officials should also do more marketing. One of the first things Megawide did when they took over the Mactan Cebu International Airport was to do roadshows abroad to convince carriers to come. Clark has to work with Central Luzon destinations to attract niche markets. Resorts in Zambales, Pangasinan and La Union could cooperate among themselves and help Clark Airport authorities market the airport and destinations abroad.

But it is not just the airport that looks dead. I have heard presentations for Clark’s development from at least two administrations and from what I saw last month, nothing much has happened that’s significant over the past decade.

There is Clark Global City, a really well-planned metropolis that BGC should have been. Wide roads, bike lanes, open spaces. But not much going on. The Kuwaitis were initially involved in its development and was taken over by Dennis Uy, the Duterte crony. He is now looking for a buyer after he got into so much money trouble.

This planned development should be ideal for BPOs which should be encouraged by tax perks and penalties to help decongest Metro Manila. It even has a world class hospital, The Medical City Clark, to take care of the health needs of those working in the area.

It seems whoever is in charge of BCDA lacks the marketing savvy of Arnel Casanova and Vince Dizon. They have to be more aggressive in attracting business and people not just to Clark but to Poro Point as well.

There must also be a visible focus on providing lower operating costs (electricity, water, better digital facilities) and better infrastructure for companies to be attracted. There must also be active coordination with local universities in Angeles, to show a pool of skilled workers available for locators.

Sayang talaga. Clark is an economic zone with an airport and only 70 kms to a port and we are far from maximizing its potential economic contributions. It is our country’s best chance to establish an economic zone that can be competitive with Vietnam, Cambodia, etc.

Maybe the problem in Clark’s development is the overlapping bureaucracy. There’s CDC, CIAC and BCDA. Then there are also the local politicians in CDC who may not have the national perspective to appreciate the real value of Clark to the country.

The national government should jumpstart Clark’s development by moving as many of its offices to Clark as is possible. The BSP is moving some offices and personnel to Clark - the Head Office along Roxas will be retained but the QC compound will be vacated. DepEd could very well operate out of Clark. DPWH, DENR and DA as well.

The SGV Clark website claims that “Clark has registered more than a thousand export and domestic market enterprises in manufacturing, information technology and business process management (IT-BPM), aviation, logistics and tourism sectors, among others. The CDC has disclosed on its website that it is a home to key investors from South Korea, the US, Australia, and Japan.”

If all that is true, why does Clark still look like a ghost town after 30 years?

 

 

Boo Chanco’s email address is [email protected]. Follow him on X or Twitter @boochanco.

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