Japanese retirees eyeing Cebu as retirement hub

CEBU, Philippines - Cebu is not giving up on its effort to position itself as a “retirement haven”, especially now that it has gained strong interest from the Japanese retirees.

Cebu Investment and Promotions Center (CIPC) managing director Joel Mari S. Yu said if only Cebu could establish a very good facility that will host the Japanese retirees looking for a good destination outside their country where they can seek for permanent medical help, and good tropical environment.

Due to the lack of right facility to capture the multi-million-dollar medical tourism in the world, Cebu has yet to start off and showcase its capability as a preferred ‘retirement destination” for wealthy foreigners.

This time, according to Yu, it is good for Cebu to tap the fast growing Japanese retirees. “They are moving faster.”

Every year, about two million Japanese enter to the retirement group, Yu said. Because it is getting more and more expensive for retirees to live in Japan, at the same time maintain medical attention, “they are looking at ‘retirement destinations’, and Philippines, specifically Cebu is one of the hottest targets for Japanese.

Based on a study conducted by CIPC, every Japanese retiree spends at least two to four thousand dollars per month for their needs, including medical check-ups, and others, with their own money, or mostly through their retirement funds given by the Japanese government after they retire.

If Cebu will be able to capture at least one thousand Japanese retirees, the province stands to earn an average of US$2 million per month.

A retirement facility doesn't have to be in the City, Yu said as long as it has a mini-hospital or clinic and other necessary needs for the older people.

“These are not the ‘healthy’ or the active retirees. We are targeting the retirees that already need constant medical attention,” Yu said adding that these growing Japanese retirees are actively looking for destination.

The Philippines, no doubt, is the first country that these Japanese are considering, only if it has the right facilities, such as an integrated retirement village, medical institutions that have good partnership with Japanese insurance system, and the government, among others.

Yu hopes that hospitals in Cebu should also start partnering with insurance system in Japan, to tap this opportunity, as well as capitalists to start investing on retirement facilities for Cebu.

Meanwhile, following the announcement of the Philippine Retirement Authority (PRA) to push for more promotional activities abroad boasting its potential as retirement haven, Cebu is seen to benefit this move, said Department of Trade and Industry-Cebu Provincial Office (DTI-CPO) director Nelia F. Navarro.

In an interview, Navarro said Cebu will maximize its potential attract thousands of retirees looking for alternative vacation homes outside of their countries, if investors will start to build facilities that will accommodate this high-revenue earning industry.

Recently, PRA general manager Veredigno Atienza announced that the government will aggressively promote the country as a retirement destination for the world’s retirees.

Atienza said that the agency must do more roadshows and conferences which are rifled at distinct focused audiences.

PRA, is now focusing on the country’s leading source of retirees such as China, South Korea, and Japan.              

“PRA is leveraging developments in age-friendliness, tourism, healthcare and Department of Tourism’s ‘It’s more fun in the Philippines’ campaign to boost the Philippine position further in the international retirement rankings,’ said Atienza.

According to Atienza, PRA is expected to launch more product innovations designed to lure more retirees to the country, adding that the Philippines hopes to attract one to ten million foreign retirees in the next six years.

On the other hand, Navarro despite Cebu’s potential to host the foreign retirees, the province still has to provide the right facilities, while there are already a growing number of markets that expressed interest to choose Cebu as their retirement destination.

As of this moment though, Cebu is still attracting capitalists to invest on building integrated retirement villages, or facilities.

Navarro hopes that the earlier announcement of businessman Justin Uy to develop a 10-hectare Retirement Village in Consolacion will soon be realized.

For the meantime however, while the plan is still raw, Navarro said Cebu will have to maximize its strength in the huge medical tourism market, which is to focus on providing services for the active retirees, who may not necessarily live in Cebu yet, but experience the place for vacation, leisure, and some of their ‘light’ medical needs. (FREEMAN)