Air access issues, manpower shortage threaten CV growth

CEBU, Philippines - Although Central Visayas is expected to post a significant growth this year, the region has to address some concerns that may dampen the projected encouraging growth.

Based on the regional economic situationer prepared by the National Economic and Development Authority (NEDA), Central Visayas region is facing some issues that need to be addressed in order to pave the way for robust growth and economic vibrancy.

The region has identified three major problems that is considered as threat to its growth. These are related to air access, manpower scarcity specifically for Business Process Outsourcing (BPO) sector.

The continued imposition of the three percent Common Carriers Tax (CCT) and 1.2 percent to 2.5 percent Philippine Billing Tax (PBT) which prompted international carriers to assess whether it would still be profitable to continue operation in Central Visayas.

The report mentioned the recent cancellation of the Cebu-Doha flight of Qatar Airways last March of this year.

According to the report the cancellation of operations of some international carriers is expected to give adverse impact on the region’s tourism industry. Hence, there is an urgent need to review the policy imposition of the CCT and the PBT.

Second issue that needs serious attention is the ability of the region to increase the quantity of available, skilled, competent and highly qualified employees. This problem is seen to weigh heavily on the sustained growth of the Information Technology and BPO industry.

Hence, the report suggested that the private sector, academe and local government units in the region need to strengthen and enhance their collaborative efforts to increase the manpower pool through proficiency certification, retraining and jobs skills matching and other developmental programs.

Despite these threats, the regional economy is seen to grow faster for the rest of this year as the government increases spending on infrastructure projects.

The tourism, IT/BPO, retail trade, and real estate industries will continue to drive growth of the regional economy,

On the other hand, the export sector is foreseen to remain volatile as the European economies struggle with financial crisis.

The growing interest of travelers on Siquijor and Negros Oriental is projected to provide big boost to the tourism industry in these provinces, as well as in Central Visayas region. This will benefit the transportation industry, retail trade, and even the banking sector.

In so far as the transportation industry is concerned, the air industry is expected to remain upbeat as a number of airline companies, despite the pending problems of some government policies, announced their plans to open additional flights from the region to other local destinations.                                  

On the IT/BPO industry, the region is expecting the entry of new players in the industry starting in the first months of this year.

With the established voice BPO services in the region, specifically Cebu, it is now looking at tapping the potential Knowledge Process Outsourcing (KPO), or the non-voice outsourcing services.

Likewise, the real estate industry is also expected to continue expanding its growth this year on the back of the stronger tourism and IT/BPO sectors, as well as sustained interest of OFWs (Overseas Filipino Workers) to invest in properties in the region.

In Cebu alone, it is estimated that 1,317 residential condominium units would be added this year in response to strong demand and heightened interest from the market both local and foreign buyers. —(FREEMAN)