RP to lose 200,000 Taiwanese tourists

The Philippines stands to lose some 200,000 Taiwanese visitors annually if Manila and Taipei fail to resolve soon their air dispute, Tourism Secretary Gemma Cruz-Araneta said yesterday.

This developed as President Estrada said he has directed Transportation and Communications Secretary Vicente Rivera to spearhead negotiations with Taiwan for the resumption of the air service agreement between the two countries.

Meanwhile, Taiwan said it would suspend all Philippine Airlines (PAL) flights to Taipei in reaction to Manila's move disallowing the entry of Taiwanese planes into the Philippines.

Araneta said Taiwanese tourists, many of whom come to the Philippines to play golf, would find it more expensive if they had to fly through Hong Kong.

"Therefore, they would rather go to another place which is nearer," she said.

Araneta projected a "very, very great decline" in tourist arrivals from Taiwan unless the bilateral air agreement was resolved.

She also said some foreign airlines have long wanted to increase the number of their Manila-bound passengers, but were afraid they might offend some government officials and business leaders in the Philippines.

"They told me they refused passengers (bound for Manila). They want to apply (to increase their loads), but they are afraid that instead of being increased, they passenger loads might be reduced. Somebody might get angry," she said without naming names.

There have been concerns that the Estrada administration has been favoring PAL, the national flag carrier, whose majority owner, Lucio Tan, is a close presidential friend and campaign contributor.

The bilateral air service agreement was severed last Tuesday, the second time in five months, after Philippine aviation authorities disallowed two Taiwanese carriers from landing in Manila.

The Civil Aeronautics Board (CAB) justified the move by saying Taiwanese commercial planes were exceeding their passenger limits.

Taipei unilaterally reduced last month PAL's access to Taiwan to four flights a week, equivalent to 1,200 seats, from seven flights in violation of an interim bilateral accord which allows a maximum of 4,800 seats weekly.

On the other hand, Taipei officials said they were cutting the direct air links in a retaliatory move after an EVA Airways plane was prevented from landing in Manila last Tuesday.

They viewed it as an "unfriendly move" that could affect normal ties between the two countries.

Philippine and Taiwanese carriers resumed direct flights last Feb. 16 after signing an interim agreement last Jan. 28. It would have allowed their respective aviation officials to negotiate a new permanent accord to replace their 1996 pact.

Meanwhile, Air Transportation Official chief Jake Ortega Jr. said the air dispute could worsen as the two parties remained firm on their respective positions.

"We stand by our decision to suspend the flights of Taiwan's two flag carriers -- EVA Air and China Airlines (CAL). Our mandate is to protect our national flag carrier," Ortega said.

Taiwanese aviation officials have argued that their airlines could go beyond the 4,000-passenger limit set by the interim agreement, provided that the excess passengers come from outside Taipei.

But the CAB rejected their argument.

When the CAB disapproved CAL's application to fly out of Kaoshiung, the Taiwan Civil Aeronautics Board cut PAL's flights to Taipei from seven to four times a week.

"The Taiwanese have 17 flights. We only have seven. And they were even reduced to four. On top of this, they snubbed the scheduled talks last March 1 and 2," Ortega pointed out.

He added that Manila could not allow EVA Air and CAL to continue violation the bilateral air agreement as it would mean certain death for PAL.

Taipei Economic and Cultural Office representative Hsien Ching Chan said their government was bound by the principle of reciprocity in canceling PAL's four remaining flights to Taipei.

"We still need to build mutual trust and confidence before talking again, because without mutual confidence, everything will be meaningless," she added.

Chan pointed out that they would need enough time to establish rerouting arrangements with Hong Kong, including applications for acquiring shuttle seats from other airlines going to the former Crown colony where CAL and EVA air could pick up passengers to Taipei. --