Tour-related profits offset merchandise export losses

CEBU, Philippines — While the ongoing trade war between United States and China affected the country’s merchandize trade export volume, the sector is banking on the strong service exports brought about by tourism.

Tourism-related services exports surged at 35 percent in 2016-2017, twice that of Business Process Outsourcing (BPO) performance, said Philexport president Sergio Ortiz-Luis Jr.

Ortiz-Luis admitted that performance of traditional export trade slowed down and is adversely hit by the American and Chinese trade squabble, and other worldwide problems.

However, the Philippine’s export sector takes its strength in the robust tourism industry, which offset the weakening of the merchandize export volumes.

Tourism related services exports are those revenues derived from payments by a “non-resident” customer, such as tourism and travel-related services like tour operators, hospitality industry, business tourism, agri-tourism, eco-tourism, edu-tourism, among others.

Earlier, economist Ronilo Balbieran said the Philippine economy is not susceptible to the effects of US-China arguments on trade.

The strong OFW remittances, robust tourism, and growth in consumer expenditure keep the Philippines in shape, regardless of the uncertainties in the global economy.

Exporter Pete Delantar also affirmed that furniture exporters for instance are now expanding their businesses, meeting the demands of the tourism-related establishments like hotels, resorts, restaurants, and even commercial and condominium buildings. (FREEMAN)