BMReports BusinessMirror
A2 Friday, December 15, 2017
www.businessmirror.com.ph
DOT hopes for ₧5B in receipts from Indian tourists By Ma. Stella F. Arnaldo
T
@akosistellaBM Special to the BusinessMirror
HE Department of Tourism (DOT) is looking forward to higher visitor receipts from India, with arrivals projected to hit 100,000 by year-end.
In a news statement, Tourism Undersecretary Benito C. Bengzon Jr. said: “An Indian tourist, on the average spent at least $1,000 [in the Philippines]; just imagine if we are able to meet the 100,000 mark of Indian tourist arrivals?” At P51 to $1, this would mean at least P5.1 billion in tourism earnings for the Philippine economy. He made this statement as the DOT signed on Tuesday a memorandum of agreement with Singapore Airlines (SIA).
Bengzon said under the oneyear partnership, the DOT and SIA will implement joint marketing activities to promote the Philippines to the Indian market. These marketing activities will be carried out through social media, familiarization tours for media and travel agencies, and road shows, to name a few. “This is a milestone for the Philippines. The India market is growing at a very fast rate. In fact, we are expecting to reach 100,000
arrivals by end of 2017. This joint agreement is envisioned to sustain and further strengthen this growth in the next years,” Bengzon said. From January to October 2017, arrivals from India jumped by some 20.3 percent to 88,832, making it the second-fastest growing market after China. Bengzon and SIA Senior Vice President Sales and Marketing Campbell Wilson signed the agreement at the Makati Diamond Residences. Also present were DOT regional directors. For his part, Wilson said the agreement with the DOT is a significant step in expanding the Philippines’s tourism industry. “We are confident we can increase visitor arrivals; it is an honor to bring our passengers anywhere in the Philippines,” he said. SIA is the primary carrier connecting India to the Philippines. The DOT added that SIA and its sister company, SilkAir, also agreed to bring tourists not only
to Manila but also to secondary destinations, in keeping with Tourism Secretary Wanda Corazon T. Teo’s policy of encouraging tourists to visit key destinations outside Metro Manila. “The end result that we are really looking for is a wider dispersal of tourist traffic across the country and spread the benefits of tourism to communities,” Bengzon said. He added that part of the DOT’s marketing strategy to is “to make the Indian tourists stay longer on the Philippines by developing new products that would meet their needs.” Last year the DOT held promotional road shows in Kolkata, Mumbai, Bengaluru and Chennai. “The four Indian cities we targeted are important feeder markets, hence, we are working on strengthening our relations with their local travel partners to assure sustainable growth,” Teo said then. She noted that increased Indian
visitor arrivals in the Philippines are facilitated by the visa-free entry privilege extended to Indian nationals who already have visas from the United States, Japan, Australia, Canada, Schengen, Singapore and the United Kingdom. However, the DOT has been appealing to the Department of Justice to grant a visa-on-arrival privilege to Indian tourists, as well. India has the second-largest population in Asia, after China. Francesca Alberto, vice president for domestic sales and marketing of Ark Travel Express, said of last year’s road show: “The market has high potential for luxury and honeymooners. The quality of agents in India are good and they are gaining more knowledge about the Philippines.” T he Phi lippines and Ind ia have long historical, cultural and trade ties. A rcheological evidence indicate trade between both countries running as far back as the ninth century BC.
Govt infra push to boost GDP growth for next year Continued from A1
Clark International Airport Expansion Project, which will be breaking ground on December 20; the Metro Manila Subway Project; and the Mindanao Railway Project Phase 1 Tagum-Davao-Digos Segment. The last time Philippine GDP reached 7 percent was in 2013, when GDP expanded by 7.1 percent. This was largely due to the 7.9-percent growth in the second quarter of 2013 and the 7.6 percent posted in the first quarter of that year. “I think we will enter the 7 [percent] territory next year,” Pernia said. “If the global economy will stay buoyant, that will be a plus to our exports and then government spending will surely be ramped up.” The 12 projects are part of the 36 approved policies and projects by the National Economic and Development Authority (Neda) this year. Of the 36 approvals, around 20 were considered “hard infrastructure projects.” Pernia said the Neda expects the Neda Board, the highest
DOST . .
Continued from A1
Asia. Vietnam, for instance, has 0.19-percent allocation, Thailand has 0.36 percent, Malaysia has 1.09 percent and Singapore has 2.0 percent of its GDP-budget allocation, she added. Buendia explained that the country’s low ranking in
policy-making body of the agency which is chaired by the President, to approve another 15 hard infrastructure projects in 2018. During the briefing, Neda Assistant Secretary Jonathan L. Uy said the interagency Investment Coordination Committee (ICC) Cabinet Committee (Cabcom) has proposed to the Neda Board six other projects for approval this year or early next year. Of the six projects, three are new—the P20.313-billion Safe Philippines Project; the P11.369billion Bridge Construction and Acceleration Project for Socioeconomic Development project; and a project to improve the capacity of the Philippine Coastguard. The Safe Philippines project entails the construction of 18 integrated operations and command centers that are complete with video surveillance systems and a remote backup data center. The Bridge Construction and Acceleration Project involves the construction of five iconic and 25 truss bridges. These will be constructed in nine regions of the
country and will be completed by 2022 and have a collective length of 2,848 lineal meters. The project to improve the capacity of the Philippine Coast Guard involve the acquisition of six helicopters that will be used for marine disaster response. “We are moving forward to complement the Philippine Coast Guard not only in terms of seabased coastguard operations but air. There are about six operational areas in the entire Philippines that will be supported,” Uy said. Apart from these three projects, the ICC Cabcom also approved the changes in cost for the new Bohol-Panglao International Airport project; the Samar Pacific Coastal Road; and the second stage of the Jalaur River Multi-purpose Project, encountered implementation delays. The Bohol airport project is expected to be completed by June 2018. The project is funded by the Japan International Cooperation Agency, which provided a P5.77 billion worth loan for the project. The project was approved in
September 2012. The Samar road project is a 109.3-kilometer road under the Arterial Road Network, which will link towns facing the Pacific and eventually complete the circumferential loop for Samar Island. The JRMP involves the constr uction of dam and ir r igation facilities, including a high dam and reservoir with afterbay and catch dams in Iloilo and its neighboring towns. For 2017 Pernia said Philippine economy is projected to grow between 6.7 percent and 6.9 percent. Growth drivers for this year were government spending, export earnings growth and strong consumer spending. He added agriculture performance was not significantly affected by issues, such as bird flu. Pernia said the Philippines is considered one of the fastest-growing economies in Asia. Philippine GDP growth is the second fastest after Vietnam as of the third quarter this year. The Neda chief said GDP growth in January to September averaged
the Global Innovation Index was pulled down by weaknesses in human capital and R&D, with a score of 22.7 out of 100, ranking only 95th from 128 countries. The reason, she added, is the low public and private expenditures on education and R&D. She said there is a need for a national law for space technology “which would innovate every ma-
jor sphere of our economy, such as commercial production, medicine, land use and marine ecology.” According to Engr. Raul C. Sabularse, deputy executive director of the DOST’s Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD), the government has invested around P800 million for the Philippine microsatellite
program that led to the successful development and launch into orbit of Diwata 1 last year, and the eventual launch of Diwata 2 in 2018. “This first microsatellite, designed and built by Filipinos with technological assistance from Japan, and deployed into orbit from the International Space Station on April 27, 2016, was the first not only for us, but even for the Japanese who realized that this downscaled satellite can be launched this way and served specific needs,” Sabularse said. The downside, according to PCIEERD, is that Diwata 1 is orbiting only at a height of 400 kilometers from land and it would only last up to 2018, or roughly 20 months. Early after its launch, the satellite shot images of Isabela province, the island of Luzon and parts of Northern Japan. It has captured images of the coastlines of Palawan, showing signs of siltation on certain parts of the province. House Bill 3637 and Senate Bill 1211, filed in September last year, both aim to establish a Philippine space-development program, and the creation of a Philippine Space Agency. The Senate bill was introduced by Sen. Paolo Benigno A. Aquino IV, while its House version was filed by Rep. Seth Frederick P. Jalosjos of the First District of Zamboanga del Norte and Rep. Erico Aristotle C. Aumentado of the Second District of Bohol. Sens. Loren B. Legarda and Vicente C. Sotto III have also filed their versions of space bills.
6.7 percent. He added the Asian Development Bank projects a fullyear growth of 6.7 percent vis-à-vis Vietnam’s 6.5 percent, China’s 6.4 percent and India’s 7.4 percent. “It is with pride that we close this year strong, seeing a string of successes, especially lately,” Pernia said. “We’ve seen robust domestic consumption and government spending, and there has been recovery in external demand. With this, we can say that we are well on the way to reaching our full-year growth target of 6.5 [percent] to 7.5 percent,” he added. Apart from these, Pernia said the country’s hosting of the 31st Asean Summit and Related Meetings, contributed to the country’s stellar year. He added that the government’s economic briefings abroad seemed well-received and fruitful. The briefings allowed the government to introduce its economic blueprint, dubbed as “Philippine Development Plan 2017-2022,” and its ambitious infrastructure program called “Build, Build, Build.”
BSP. . .
Continued from A1
Governor Nestor A. Espenilla Jr. said in a statement read by Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo. Risks to the outlook were seen remaining tilted to the upside as higher inflation pressures from the pending tax-reform program was seen tempered by proposed reforms on rice imports down the line. Guinigundo also reiterated that local monetary policy crafting, while cognizant of external economic events, has goals all its own and independent from more recent guidance from the US Federal Reserve (the Fed), which favors a tightening bias at the moment. Guinigundo, in particular, said the BSP does not have to match the tightening moves of the US Fed. The deputy governor added the BSP has factored in the expected interest-rate hikes by the US Fed and the within-target inflation rates up until 2019, indicating ample monetary policy space for the BSP to respond to risks as and when needed. The BSP also said geopolitical tensions and lingering uncertainty over macroeconomic policies in advanced economies continue to pose downside risks to the near-term prospects for global economic growth. Nevertheless, Guinigundo said prospects for domestic economic activity were likely to remain firm on account of strong consumer and business sentiment and ample liquidity in the system.
M a ny I nd i a n s, mo s t ly f rom Chennai (formerly Madras) who came with British troops during the brief occupation of Manila, decided to stay in the Philippines. More waves of Indian set t lers fol lowed du r ing t he American occupation, and the separation of India and Pakistan in 1947. While there are no recent statistics on the number of Filipinos of Indian descent, many of them are said to be residing in Cainta in Rizal, Metro Manila, Isabela and Negros Occidental. They are largely of Sindhi, Punjabi and Tamil stock. There have been a number of Filipino-Indians who have become part of the social and political fabric of the country. Among them are Bb. Pilipinas-Universe 2010 Venus Raj, former Manila Mayor Ramon Bagatsing, former Pangasinan Vice Gov. Ranjit Shahani and radio DJ Sam YG, to name a few.
Martial law. . . Continued from A1
In terms of investments, Neda Undersecretary Rosemarie G. Edillon said there was even a slight uptick after martial law was imposed in May, but this was mainly due to the investments that poured in the Davao region. “We also looked at the business expectation survey [BES] and the consumer expectation survey [CES]. And, in fact, for the fourth quarter, there was actually an uptick in both CES and more defined in terms of the BES. And the martial-law declaration was not listed among the issues that consumers and businesses identified,” Edillon said. “We’re hoping it will be maintained through out this extension. It’s really important that the government and military maintain the high moral ground even if martial law is [in effect],” she added.
‘Martial law still needed’
George T. Barcelon, president of the Philippine Chamber of Commerce and Industry, said the implementation of martial law in May was “instrumental” in the government’s bid to liberate Marawi City from Islamic State of Iraq and Syria-inspired terrorists. “Now that Marawi city’s rebuilding is about to start, military intelligence and keepers of peace are order presence are still needed. As such to give assurance, extending martial law is in order,” Barcelon said. “We trust the pronouncement of President Duterte that human rights will be upheld in the whole exercise. I believe investors are likely to have more confidence when there is the assurance of peace and safety,” he added. Perry Pe of the Management Association of the Philippines said the extension of martial law would not scare away foreign investors. “What will spook business is if we do nothing. The Fitch upgrade on Philippine bonds is a vote of confidence,” Pe said.
‘Business as usual’
Trade and business will go as usual in Mindanao in spite of the extension of martial law for a year in the island, according to the Mindanao Development Authority (MinDA). MinDA Secretary Datu Abul Khayr Alonto said the agency supports the extension of military rule in southern Philippines. Congress on Wednesday approved President Duterte’s appeal to continue the imposition of martial law in Mindanao for the entire 2018. “We believe in the pure intent of the President to maintain the high security level in Mindanao, and to prevent another Marawi conflict from happening. It is worth noting that the decisive action of the President to end terrorism in Mindanao once and for all is gradually yielding positive results for the islandregion,” Alonto said in a statement. He added said trade and business remain upbeat in the island in spite of the tight security protocol implemented by government troops. Alonto said a number of businessmen expressed interest to invest in Mindanao.