BusinessMirror May 06, 2019

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D.O.T. UPBEAT ON 8.2-M VISITORS’ GOAL N ADI, Fiji—With over 2 million tourist arrivals nationwide in the first quarter of the year, the Department of Tourism (DOT) remains confident that will be able to hit its target of 8.2 million visitors this year. In a briefing on the sidelines of the 52nd Asian Development Bank (ADB) Annual Meeting in this Pacific island nation, Tourism Secretary Bernadette Romulo Puyat said there was a 7.59 percent growth in tourist arrivals in the January to March period this year. Romulo Puyat said based on data from the Philippine Statistics Authority (PSA), this translated to as much as 2.2 million tourist arrivals in the first quarter, higher than the 2.05 million posted in the

EL NIDO in Palawan, often cited as one of the world’s best islands, is seen in BusinessMirror file photo. NONIE REYES

DEPT. OF SCIENCE AND TECHNOLOGY

PHILIPPINE STATISTICS AUTHORITY

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first quarter of 2018. “Well, there are a lot of factors. We have a lot of direct flights, Cebupac, PAL, AirAsia, [they] now have more direct flights. In fact, when we met with both airlines, actually, even with AirAsia, they told us they have new routes in Japan, in Australia. [These] direct flights really help [increase tourist arrivals],” Romulo Puyat said. Romulo Puyat said in March alone, tourist arrivals grew 11.13 percent to 714,309 visitors compared to 642,757 arrivals during the same period in 2018. Last year, had the closure of Boracay not happened during peak summer months, Romulo Puyat said the country would have been able to exceed its target

See “DOT,” A2

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

n Monday, May 6, 2019 Vol. 14 No. 208

Changes seen in PHL move to UMIC status N

By Cai U. Ordinario

@caiordinario

ADI, Fiji—The Philippines believes it will “graduate” to upper middle income country (UMIC) status this year, sooner than expected, and this will likely result in “changes” in its financing efforts, according to the country statement submitted to the Asian Development Bank (ADB) Board of Governors.

In the statement issued by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, who is the Alternate Governor of the Philippines in ADB, the country will continue to rely on its programs with the Manila-based multilateral de-

velopment bank (MDB) to achieve inclusive growth. “The Philippines has benefited immensely from cooperation with the ADB’s programs. This year— sooner than we expected—the country will ‘graduate’ into the

ranks of upper middle-income economies. While this will result in small changes in the terms of bank financing, we expect to sustain the solidarity that has characterized this community for decades,” Diokno said.

“The Philippines has benefited immensely from cooperation with the ADB’s programs. This year—sooner than we expected—the country will ‘graduate’ into the ranks of upper middle-income economies. While this will result in small changes in the terms of bank financing, we expect to sustain the solidarity that has characterized this community for decades.”—Diokno

“Within the next few years, we expect to achieve a truly inclusive economy that ultimately redounds to the benefit of our people. In this aspiration, we will continue to rely on the collaborative programs we have begun with the ADB,” he added. See “UMIC,” A2

By Bernadette D. Nicolas @BNicolasBM

RESIDENT Duterte has indeed directly vetoed the “block payment” provision in the 2019 national budget intended to prohibit the government from using unprogrammed appropriations for public video surveillance and communication system. The President also placed under conditional implementation the related safeguard provision enumerating the foreign-assisted projects which may draw from authorized appropriations for fiscal year 2019. These provisions were included by the Senate in order to prevent the government from using the unprogrammed appropriations for the P20-billion Chinese-offered “Safe Philippines Project”, which

will pilot a CCTV-based emergency response system proposed to be installed by the Duterte administration in Metro Manila and Davao. Senate President Pro Tempore Ralph Recto has since raised concern over the “vetting and approval of the project” which allegedly lacked studies, consultations and validation. He also noted that the primary equipment contractors for the project’s Phase 1, Huawei, had been “embroiled” in controversies over national security and data protection. However, the whole Special Provision No. 17 under the Unprogrammed Appropriations titled “Prohibitions Against the Use of Unprogrammed Appropriations” was stricken out, as seen in the copy of the 2019 General Appropriations See “Duterte,” A3

PESO EXCHANGE RATES n US 51.8200

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PESO SEEN TO WEAKEN IN Q2, TRADING BETWEEN 52 AND 53 TO $ TILL JUNE

T

HE local currency is projected to weaken against the dollar in the second quarter of the year, according to the forecast of local economists. In a recent research analysis on the Philippine economic dynamics, economists from the First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P) said the peso is seen to trade between 52 and 53 to a dollar up until June this year. “The month-end actual dollar to peso rate in March lodged below the 200-day moving average (MA) but above the 30-day MA, suggesting more volatility in the coming months. We maintain our view that the peso will trade again within the 52 to 53 range in the second quarter, as BSP rebuilds its GIR [gross international reserves],”

Duterte vetoes budget restriction on funding

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of 7.4 million tourist arrivals. In 2018, Romulo Puyat said there were around 7.1 million local and foreign tourists who visited various parts of the country. She said this was despite the 6-month closure of Boracay which could have yielded 500,000 or more tourists. “We were celebrating because I really didn’t expect, I thought it would be almost the same to last year [because of Boracay]. So that’s why we’re celebrating. From 6.6 [million last year] to 7.1 [million]. [There were] 6.6 [million tourists in] 2017 (then we had) 7.1 million for 2018 and mind you, it [Boracay] was closed April 26, we lost May, [the height of ] summer,” Romulo Puyat said.

economists said. Toward end-2018, the GIR took a beating, declining to 7-year lows, as the BSP battled to smoothen out volatilities in the then-depreciating value of the peso against the dollar. Sentiment then was also down due to the accelerating inflation, which peaked at 6.7 percent during those months. GIR hit its lowest level in 2018 at $74.7 billion in October. Aside from local developments, the US dollar is also seen to gain traction against emerging market currencies in the coming months. “ The global uncertainty emanating from the US-China trade war and Brexit, and untarnished strength of the US economy, among others, encouraged capital flows into the See “Peso,” A12

MICP April collection hits ₧13.8B

T

GARDEN CITY Flowers in bloom at the hub of some 500 garden enterprises at the Guiguinto, Bulacan Cloverleaf area capture the festive mood in the area, as the municipality shoots for the distinction of being the garden center of the Philippines by 2022. The sustained development and promotion of its cutflower industry is seen to get a boost with the construction of the Garden City Tissue Culture Laboratory for Ornamental Plants and Cutflowers, the town’s joint project with the Department of Science and Technology (DOST). NATASHA PANGILINAN

HE largest collection district of the Bureau of Customs (BOC) collected a total of P13.8 billion in April, breaching its P13.6-billion target, according to preliminary data. The April 2019 collection is higher by 14 percent compared to the collection during the same period last year. The Manila International Container Port (MICP) contributed the largest share of duties and taxes, at about 25 percent of the P53-billion national target for April, the BOC said. District Collector Atty. Erastus Sandino Austria attributed the positive collection to the men and women of MICP, and the various See “MICP,” A2

n JAPAN 0.4648 n UK 67.5577 n HK 6.6075 n CHINA 7.6946 n SINGAPORE 38.0274 n AUSTRALIA 36.2740 n EU 57.9399 n SAUDI ARABIA 13.8179

Source: BSP (3 May 2019 )


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