Phl expects to earn $1.5 B from European market – DOT

MANILA, Philippines - The lifting of the ban on commercial flights between the Philippines and Europe is expected to earn $1.5 billion a year for the country, according to the Department of Tourism.

The lifting of the ban, imposed by the European Union in 2010 due to safety concerns, will allow flag carrier Philippine Airlines to operate fights to major destinations in Europe.

Tourism assistant secretary for international tourism promotions Benito Bengzon Jr. said on the sidelines of the Travel Madness Exposition 2013 that once PAL resumes flights to Europe, arrivals from the continent would likely increase by 15 to 20 percent.

“(We) estimate to bring it up to 600,000 visitors from Europe with the lifting of the ban on PAL,” Bengzon said.

He said a European tourist spends an average $2,000 in his or her 10-15 days stay in the Philippines. This is double the average other foreign visitors normally spend during the same period of stay here. He said tourists from Europe are considered “high-yielding.”

The DOT official noted that, “visitors from Europe are growing by 8.5 percent but with recent development we are confident that we can bring it up to 15 to 20 percent.” He did not explain the projections. A two-digit growth in tourist arrivals from Europe, he said, would be first on record, if ever. The biggest arrivals were from the United Kingdom, Germany and France.

He said that aside from tourism, other business enterprises would benefit from the lifting of the ban.

“This is a very welcome development. Our partners from private sectors share the same excitement. They are very happy that our flag carrier will be the first to fly in major cities in Europe and see this an excellent opportunity for the DOT to reach out to high yield market in Europe,” he said.

DOT is eyeing to double its tourism receipts to $8 billion in 2016, an official said.

For this year alone, tourism receipts or money spent by foreign visitors are seen to reach $4.95 billion.

For next year, the figure is expected to increase to $6.07 billion.

Tourism receipts have been on the rise in the past years, settling at $3.82 billion last year from $2.99 billion in 2011.

Foreign tourist arrivals reached a record mark in the first five months of 2013 to 2.011 million, 10.54 percent up from last year’s figure.

For the month of May alone, he noted that arrivals rose by 12.47 percent to 362,062 from 321,920 in the same month in 2012.

The latest tourists arrival figure further boosted DOT’s confidence that the 10-million target in 2016 is achievable.

“We have been seeing a sustainable increase in arrivals since last year. This building enthusiasm for the Philippines, aided by our government’s good governance agenda, gives us the confidence to achieve our target of 10 million tourist arrivals by 2016,” Tourism Secretary Ramon Jimenez Jr. earlier said.