RDC: 2007 a good year for Region 7 economy

The Central Visayas economy is expected to enjoy great benefits this year, according to the Regional Development Council.

The RDC, during their Full Council Meeting held last March 30 at Bohol Tropics Hotel, presented the region’s prospects for 2007, wherein it stated that among the activities that are expected to push the economy in the region is the May elections.

With over three million registered voters, the RDC said that the region will benefit from election-related spending since each senatorial candidate is expected to spend around P10 million for his/her campaign excluding expenses to be spent by political parties.

These spending, according to the RDC report, will benefit the people in terms of election-related jobs and a rise in demand for services from service firms.

A further improvement of business and consumer confidence on the Philippine economy is also expected to lead a higher growth for the Central Visayas economy this year.

It said that rising dollar remittances of Overseas Filipino Workers and more stable prices of commodities are among the factors that will lead to increased consumer spending which will directly benefit retail trade and other related industries.

Prospects of accelerated growth for the region’s retail trade industry is strengthened by the expansion of tourism and ICT industries, as new players are anticipated to come in and existing ones are likely to expand operations this year.

Transportation is another sector that is foreseen to directly benefit from a stronger tourism sector. Two new foreign airlines plan to open Cebu-Taiwan and Cebu-Singapore flights. Sea Air, a local airline company, is also negotiating with Tiger Airways to open the Cebu-Singapore route via Clark.

Shipping activities are also expected to pick up following the improvement of RORO terminals and ports along the Strong Republic Nautical Highway, which is anticipated to lower the cost of sea transport by 37 to 43 percent for passengers and 24 to 34 percent for cargo.

The promotion by the national government of Central Philippines, which includes Central Visayas, as the country’s tourism center is expected to generate more investments in the region’s tourism sector.

While the construction industry is likely to remain upbeat this year as implementation of many on going projects spill over in 2007 and as the sector benefits from increased investment in tourism and ICT facilities, and real estate projects.

It added that aside from the private sector, the government will be a major client of the construction industry as public spending for infrastructure will rise this year as a result of a better fiscal positioning. — Mitchelle L. Palaubsanon/QSB