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Business

Let’s have more fun in the Phl

BIZLINKS - Rey Gamboa - The Philippine Star

Philippine tourism has been enjoying solid results from the marketing efforts of the Department of Tourism (DOT) and its affiliate government agencies, and of course, the valued direction of Tourism Secretary Ramon Jimenez  who was a successful marketing man from the private sector before his appointment to government.

The first three months of 2016, in particular, were standouts as the industry registered double-digit growths. DOT data showed international arrivals in January grew by 13 percent, in February by 20 percent, and in March by 12 percent.

It was also a stellar year for Philippine tourism last year as the industry earned 14.8 percent more than the previous year, accounting for 8.2 percent share of the country’s total gross domestic product.

In fact, over the last five years, the Philippine tourism industry was able to grow at modest rates notwithstanding the highly competitive global tourism environment and the continued uncertainties in formerly tourism campaign-receptive countries.

Our tourism officials must be doing something right because tourist receipts have steadily grown, from 6.8 percent in 2011 to seven percent in 2012, to 7.2 percent 2013, and to 7.5 percent in 2014.

Even the World Travel and Tourism Council (WTTC) has been bullish about the prospects of Philippine tourism. While using a different basis for its figures, it cited the industry’s potential total contribution — not only the economic activity of directly related industries, but also investments and the supply chain — to rise by 6.6 percent this year, and to contribute P2.6 trillion to the economy by 2026.

Building on successes

Such accomplishments should challenge incoming Tourism secretary Wanda Tulfo Teo who was recently named by president Duterte to replace Jimenez. With 22 years of experience in the private sector, and having been president of the National Association of Independent Travel Agencies (NAITAS) Philippines since 2015, Teo is well-received by industry stakeholders.

Most agree she would do well by just continuing with the major roadmap that the outgoing Tourism Secretary will leave behind, but she should not be content with just that. Having been involved deeply in running a major travel and tours agency in Davao, she has a better understanding of the intricacies and needs of the industry.

In a recent meeting of the Philippine Tour Operators Association, a tourism agenda for the new government was presented giving suggestions on how to improve the local tourism industry. This included further infrastructure development, improved competitiveness of the Philippines in the global arena, and higher inbound tourist numbers, as well as improved domestic tourism.

The DOT, on the other hand, pointed out four major areas that need attention in the coming years. These include strengthening of the DOT’s branding campaign and tourism marketing and promotion activities, institutionalizing the tourism coordinating council, enhancing local government units’ capacity on tourism planning and product development, and implementing the star rating system.

Top two challenges

The local tourism industry has been asking for improved infrastructure for the longest time now. With the country’s tourism industry going for four million visitors this year, the biggest problem is finding lodging for tourists.

There is also a need for bigger airports to receive more airlines, especially in provincial destinations like Cebu and Aklan (for Boracay), which continue to top the list of preferred holiday places to visit.

Should there be improved relationships with China under the new administration, a foreseen jump in Chinese tourists will add to the pressure for more accommodations and better airports. While China is only the fourth largest source of inbound tourists to date, it is the fastest growing.

At present, the Koreans account for the biggest number of inbound tourists, but some are already forced to divert their holiday destinations to other countries like Thailand or Indonesia, which have comparable beach resorts and other tourist attractions, because they cannot confirm hotel bookings here.

A diminished Korean market, which is also currently the biggest revenue generator in local tourism, would dampen the current bullishness being experienced.

Other concerns

Of course, there are other concerns — many of them likewise outstanding for ages. The DOT needs to empower local governments to carry out local tourism initiatives by bolstering their capabilities, specifically in overcoming budgetary challenges.

We need to improve the quality of services that local tourism facilities provide. The challenge of tourist destinations away from the city is the dearth of quality personnel to man the hotel front desks, restaurants, transportation service, and others who ensure that guests have an enjoyable time.

Security is also once again on top of the agenda, especially after the recent beheading of a Canadian tourist, albeit one who had made the Philippines his home for an extended period already.

Perhaps president-elect Rody will be able to resolve this last problem that masquerades as an ideological cause, but in reality is simply a kidnap-for-ransom operation involving hooligans.

Boosting local tourism

In the immediate future, if and when we will be forced to stop campaigning for more tourists because of the infrastructure challenges, an alternative program that would help augment revenues and sustain the employment of workers in this sector would be to bolster domestic tourism.

Of course, this would only be possible if our airline companies did something to bring down their transportation fares which continue to be notoriously expensive, sometimes even more than the cost of an overseas plane ticket.

The alternative would be to improve inter-island road travel with the help of roll-on, roll-off ships, especially now that there are new vessels being brought to sea that have improved facilities and safety features.

The Philippines is consistently making it to must-see listings of influential global travel blogs and advisors, and it would be a shame if Filipinos would not support local tourism initiatives.

Facebook and Twitter

We are actively using two social networking websites to reach out more often and even interact with and engage our readers, friends and colleagues in the various areas of interest that I tackle in my column. Please like us at www.facebook.com and follow us at www.twitter.com/ReyGamboa.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.

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