IT and BPO sectors fuel Central Visayas economy

CEBU, Philippines - The continued expansion of the information technology and business process outsourcing market in Central Visayas, particularly in Cebu and Negros Oriental, has greatly contributed to the growth of the regional economy, according to the National Economic and Development Authority region 7.

In a recent economic report, NEDA-7 assistant regional director Ruth Cruz said the IT and BPO sectors remain as two of major growth drivers of the economy in Central Visayas.

Data from the Philippine Economic Zone Authority showed that in the first quarter of this year, direct employment generated by IT centers reached to 65,303, up from 51,962 last year.

In 2013, investments from IT companies reached to more than P9 million. Manufacturing ecozones' investments stood at more than P15 million in 2013 and generated direct employment of 120,989 this year, higher than last year's 116,651.

Tourism

Despite the good prospects in the BPO and IT sectors, Cruz said the tourism industry in the region has relatively not been doing good this year due to the Bohol earthquake last year and the aftermath of super typhoon Yolanda which hit Northern Cebu.

"Tourism has been the growth driver in 2013, however, 2014 has not yet been a good year (for the industry)," she noted.

Data from the Tourism Department revealed that in the first semester, foreign visitor arrivals in the region decreased by 1.13 percent to 684,864 this year, slightly lower compared to 692,719 last year.

Of the four provinces, only Bohol recorded a decrease by 8.51 percent in tourist arrivals which went down to 209,634 this year from 229,138 last year.

On the other hand, NEDA's Cruz mentioned some development goals for the region's economy: to attain an average gross regional domestic product growth rate of 9.9 percent by 2016; expanding the supply and reach of basic facilities and services including health, education and infrastructure to make the economy more inclusive; and fast track rehabilitation and recovery efforts caused by major disasters that hit the region.

The updated Regional Development plan has also identified some challenges for the region's economic performance, she said.

These include the high poverty incidence, high cost of doing business, poor infrastructure and logistics support, uncoordinated transport network and planning and limited capacity and inadequate maintenance of transport facilities. (FREEMAN)