BusinessMirror July 17, 2019

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C.A.B. CHANGES MIND, ALLOWS CHARTER FLIGHTS ANEW TO BORACAY GATEWAYS

SUNSET at the popular Willy’s Rock in Boracay Island is seen in this 2018 BusinessMirror file photo. NONOY LACZA

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

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HE Civil Aeronautics Board (CAB) has lifted the moratorium on charter flights to Kalibo and Caticlan, both gateways to the Philippines’s so-called crown jewel of tourism, Boracay Island. The lifting comes after local tourism stakeholders pressed the Department of Tourism (DOT), whose secretary sits as CAB vice chairman, to undo the moratorium, counting billions of pesos in losses from booking cancellations in hotels in Boracay.

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In a news statement sent to the Busi-

nessM irror by CAB Executive Director Car-

melo L. Arcilla, the agency also allowed carriers with scheduled flights to Kalibo and Caticlan to maintain their schedules for the rest of the Iata (International Air Transport Association) Summer Season, “but are restricted, however, from mounting additional flights.” Also, all air operators to these two cities “will not be allowed to use aircraft with more than a 200-seat capacity.” The CAB resolution lifting the moratorium, effective immediately, was signed after a special board meeting on July 15, 2019.

Christine Ann U. Ibarreta, president of the Hotel Sales and Marketing Association Inc., welcomed CAB’s decision lifting the moratorium: “We thank the DOT and CAB for listening to our side. Due to our constant dialogues, they came to appreciate our position and intention to grow the tourism industry. We hope for a more open and consultative process with relevant government agencies in the future.” Asked if the hotels would be able to get back their guests, she said, “we hope that our business partners [wholesalers] are still willing to gamble and rebook their guests.” See “CAB,” A2

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Wednesday, July 17, 2019 Vol. 14 No. 280

Pre-Sona: Govt policy widened inequality ₧86,000 C By Cai U. Ordinario

@caiordinario

ONDITIONAL cash transfers (CCTs) and various corporate social responsibility programs alone will not address income inequality in the Philippines, according to the Freedom from Debt Coalition (FDC).

In its annual State of the People’s Address (Sopa), FDC President Rene Ofreneo said these were merely “dole-outs” that do not address structural issues affecting the lives of the poor. Based on the 2015 Poverty Statistics, the Philippine Statistics

Authority (PSA) said the income of the poorest Filipinos, which averaged P86,000 a year, is just oneninth of the income of the richest in the country, pegged at an average of P786,000 per year. “Reducing inequ a l it y is about how a society’s policies, struc-

tures and decisions work together to promote inclusion, equality and balanced development. This means formulation of programs that help empower the poor to become active players in societ y and economy, not just passive recipients of

The average annual income of the poorest Filipinos, a figure that is just one-ninth of the income of the richest in the country, pegged at an average of P786,000 per year, according to PSA data

dole-outs from government and the do-gooders or conscience-stricken corporate captains of industry,” Ofreneo said in a statement. In an interview at the sidelines of the Sopa, Ofreneo said the key to addressing poverty and inequality are jobs. This will empower the poor to address their economic and financial needs. See “Pre-Sona,” A2

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DATA CHAMPION

DEFIANT REMITTANCE FLOWS WILL PATCH UP HOLES IN PHL ECONOMY–EXPERTS By Bianca Cuaresma

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@BcuaresmaBM

EMITTANCE flows in the country are projected to remain strong in the coming months no matter the condition of the global economy, and is seen to patch up some holes in the local economy in the coming months, analysts said. In their assessment following the Bangko Sentral ng Pilipinas’s (BSP) release of the remittance flows in the first five months of the year, local economists were optimistic about how the cash sent by Filipino migrant workers will continue to provide fresh fuel for the country’s growth engines in the near-term. Some experts have projected a slowdown in the transfers from overseas Filipino workers (OFWs) to the country, especially last year. The forecasts were made on ac-

count of the foreseen decline of remittances in big source countries, particularly those in the Middle East. On Monday, however, the BSP reported a 5.7-percent rise in May alone—bringing the five-month average growth to 4.5 percent. This is higher than the 3.1-percent average growth in 2018. In a commentary, ING Bank Manila economist Nicholas Mapa said the month’s rise in remittances went against the expectations of remittance decline and will continue to thrive in the coming months. “Filipinos working abroad cont i nued to def y m a rket expectations, clocking in at a 5.7-percent g row t h c l ip, proving that it remains to be a solid and dependable source of both foreign currency and potent purchasing power,” Mapa said. See “Remittances,” A2

Rice output likely dipped 5.6% in Q2 By Jovee Marie N. dela Cruz

The NIC, in coordination with concerned agencies, is also tasked to “explore the possibility of accessing a growing range of bilateral and multilateral funds” as assistance to the funding of research, development and extension and other innovation efforts, according to Republic Act 11293 signed by the President last April 17, a copy of which was only released to reporters on Tuesday. Public-private partnership shall also be encouraged in the development and implementation of innovation initiatives. All banking institutions, whether government or private, shall also set aside at least 4 percent of their total loanable funds for innovation development credit. See “Innovation Act,” A2

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Duterte signs Innovation Act; ₧1-B revolving fund to help small enterprises

RESIDENT Duterte has finally signed the Philippine Innovation Act, which sets up at least P1 billion in a revolving Innovation Fund to strengthen entrepreneurship and enterprises engaged in developing innovative solutions to benefit the poorest of the poor. The new law also mandates the establishment of a National Innovation Council (NIC) chaired by the President to develop the country’s innovation goals, priorities and long-term national strategy. The NIC shall also develop strategies to promote the creation of new ideas that will be developed into new and quality products, processes and services aimed at improving the welfare of low-income and marginalized groups.

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HE country’s production of unhusked rice likely fell by an annualized rate of 5.6 percent in April to June due to the contraction in harvest area, the Philippine Statistics Authority (PSA) said in its latest report. Based on standing crop, the PSA said in its report, titled “Updated Palay and Corn Estimates,” that palay production in the second quarter of the year was slightly lower than its previous estimate of 3.86 million metric tons. Harvest area in the April-to-June period shrank by some 18,000 hectares, from 932,790 hectares recorded a year ago, while yield per hectare likely fell by 3.7 percent from last year’s 4.38 metric tons.

AS palay husks fly, farmers at a farm in Nueva Ecija work with threshers in this 2018 BusinessMirror file photo.

BERNARD TESTA

US 51.0880 n JAPAN 0.4735 n UK 63.9520 n HK 6.5283 n CHINA 7.4283 n SINGAPORE 37.6783 n AUSTRALIA 35.9608 n EU 57.5200 n SAUDI ARABIA 13.6220

See “Rice,” A12

Source: BSP (16 July 2019 )


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