Better infra, connectivity crucial to tourism growth – Metrobank unit

MANILA, Philippines - The government needs to first improve the country’s infrastructure and connectivity between provinces to drive faster growth in tourist arrivals, the research arm of Metropolitan Bank and Trust Co. said.

 “While there may be some remaining worries of tourists due to Super Typhoon Yolanda last year, more pressing issues such as low quality infrastructure and lack of connectivity prevent arrivals from accelerating,” Mabellene Reynaldo, research analyst at Metrobank, said in a report.

Tourist arrivals increased 2.22 percent to 2.43 million in the first half  this year from 2.38 million in the same period last year. The number translated to P109.77 billion generated from the inbound tourists in the six months to June.

However, the figure is a mere third of the government’s target of 6.8 million tourists this year.

“Given the current momentum, it would be difficult for arrivals to reach its 6.8 million target for 2014 and even the 10 million target by the end of the Aquino administration,” Reynaldo said.

 “Clearly there is much work to be done in terms of promoting tourism attractions and providing easier access for tourists,” she added.

 “With incomes from advanced economies starting to improve, there is a significant upside potential in tourism volume if only the right conditions are in place,” Reynaldo added.

Government data showed South Korea remained the top source of visitors in the first half of the year, followed by the United States, China, Japan and Australia.

By region, more than half or 58.78 percent of the tourists came from Asia, while 19.28 percent were from the Americas. Europe accounted for 10.64 percent while Australia and the Pacific made up 5.88 percent.

Last year, tourist arrivals hit 4.7 million, short of the government’s  five million goal.

The tourism sector is one of the Aquino government’s priority sectors, or those seen to have the potential to greatly reduce poverty, as the industry is a large provider of employment.