RP capable of drawing 10-M tourists every year

The Philippines could attract around 10 million tourists each year like its neighbors Thailand and Malaysia once the long-awaited Executive Order 500B is issued.

This optimism was expressed by Meneleo J. Carlos Jr., private champion of National Competitiveness Council’s (NCC) Seamless Infrastructure Network Working Group, as they expect President Arroyo to sign the proposed EO before the year ends. 

EO 500B seeks to rescind the restrictive EO 500A which limits the operation of budget airlines in Subic and Diosdado Macapagal International Airport (DMIA) in Clark. Such budget airlines first have to be designated by their respective countries and are entitled only to third and fourth air freedom rights meaning, they can no longer fly to a third country. 

EO 500A amended EO 500 which allowed budget airlines to fly to DMIA without limitations on traffic rights, capacity and air freedom rights, except sabotage.

During its seven-month implementation period starting August 2006, EO 500 effectively brought more tourists into the country, attracted new investments, created more jobs and improved the overall competitiveness of the Philippines.

 “There is a need to restore EO 500 to allow pocket open skies policy for DMIA in support of the promotion of international trade, tourism and investments as well as the development of a mega logistics hub in Clark and Subic,” Carlos told Philexport News and Features.

He said this initiative shall be pursued with a few countries of major market interest and where reciprocity, defined as the exchange of rights, freedoms and economic benefits of equal or equivalent value, can be achieved.

Carlos said possible partner-countries where this reciprocity concept can be achieved are China, Hong Kong, Taiwan, Macau, South Korea, Japan, Singapore, Thailand, Malaysia, Indonesia, Brunei, Vietnam, India and Russia.

He said the Philippines would conduct and conclude bilateral air talks for 2007 and 2008 with Macau, Singapore, Thailand, Malaysia, United Arab Emirates, Hong Kong, Russia, Brunei, Bahrain, Australia, Cambodia, China and Canada . 

Aside from these efforts, Carlos said they are also working on ways to lower airport fees in these areas to further boost the tourism sector.

 “Of his $1,000 budget, a regular tourist now spends $400 for airline while only $600 for tourism. A typical tourist should pay only $200 for airline. Because of this, the country is losing (in terms of tourism revenue) because tourists spend more money in airline,” he noted.

To this end, the NCC believes that the Philippines would greatly benefit in joining the Asean Open Skies for capital cities in 2008. This would allow any carrier to fly passengers and goods in either direction between capital cities of consenting countries. — Philexport News and Features