Gov’t urged to expand tourist markets to boost arrivals

MANILA, Philippines - The government should work on attracting more markets for the tourism sector if it wants to increase visitor arrivals to 5.7 million this year and further stimulate the economy, an industry analysis by a major bank noted.

In a report, Mabellene Reynaldo, research analyst at the Metropolitan Bank and Trust Co., said the country should look into enticing more tourists from the Association of Southeast Asian Nations (ASEAN), North America and Europe.

“Despite its proximity, ASEAN’s share of arrivals is only at nine percent (last year), just equal to that of China’s,” she said.

“The North American and European markets should also be expanded as their tourists are reported to have the highest in terms of per capita spending in 2013: top countries in spending are Canada, Australia, Germany, US, and UK,” she added.

“Through attracting these other markets, the country can likely achieve its 2014 target of 5.7 million (tourists),” Reynaldo said.

Tourist arrivals went up 9.6 percent to 4.68 million last year from 4.27 million in 2012, but fell short of the government’s five-million target.

South Korea remained the country’s biggest market, making up one-fourth or 1.17 million of total tourists, followed by the US (14.4 percent), Japan (9.2 percent) and China (9.1 percent).

“Tourism is regarded as one of the country’s low hanging fruits, since it has a direct positive and widespread effect on income and employment even on a micro level,” Reynaldo said.

“With the industry’s integral role in the government’s aim towards inclusive growth, it is imperative the industry accelerate its appeal towards new markets,” she added.

The government sees tourism as one of the country’s key industries in spurring and sustaining the stellar 7.2 percent economic growth.

To support the tourism sector, the government has implemented an open skies policy to increase seats and frequencies to and from the Philippines, and planned for the rehabilitation and expansion of airports around the country.