FAA move to boost tourism – DOT chief

MANILA, Philippines - The country’s tourism industry is expected to get a further boost with the impending opening of new destinations in the United States to local airlines, following a US Federal Aviation Authority (FAA) upgrade of the safety status of the Philippine commercial aviation industry.

Tourism Secretary Ramon Jimenez Jr. made the observation in reaction to the FAA’s decision restoring the Philippines’ Category 1 status six years after it was downgraded to Category 2 due to safety concerns.

“This is yet another major boost to the Philippine tourism industry and all Filipinos,” Jimenez said. “We forecast even stronger growth,” the tourism chief said, while declining to say whether there would be a revision in DOT’s tourism targets this year.

He also declined to give estimates of revenue from the potential air service expansion.

He said credit should be given to Transportation Secretary Joseph Emilio Abaya and Civil Aviation Authority of the Philippines (CAAP) chief William Hotchkiss III for the positive development.

The FAA upgrade came on the heels of a European Union lifting of restriction on Cebu Pacific’s flight to destinations in Europe.

“We must also add our deep appreciation for the EU lifting of the restrictions on Cebu Pacific travel to Europe and for domestic aviation as well,” he said.

Earlier, DOT estimates showed that some $1.2 billion worth of revenues could be realized from the European market with the lifting of the EU ban.

The EU decision has also allowed flag carrier Philippine Airlines to operate fights to the 28-nation bloc.

The European market is one of the Philippines’ top 10 sources of foreign tourists.

Arrivals from Europe grew 26.37 percent to 11.4 million in 2013 from 9.03 million in 2012.

The US, meanwhile, has remained the Philippines’ second biggest market with 674,564 arrivals or 14.4 percent share, next to South Korea.

For his part, Tourism Undersecretary Benito Bengzon said they would immediately call for a meeting with Cebu Pacific officials to discuss the airline’s plan for the newly opened European market.

“This is a very exciting time for us It will help us get a much larger footprint in the EU,” Bengzon said.

The DOT is eyeing to double its tourism receipts to $8 billion in 2016. This year, tourism receipts are seen to reach $6.07 billion from $4.4 billion in 2013.

Tourism receipts have been on the rise for the past years. In 2011, they stood at $2.99 billion.  Tourism receipts grew to $3.82 billion in 2012.

With the lifting of the ban, the DOT also sees full utilization of all three Ninoy Aquino International Airport terminals.

“We see and hope by the end of 2014, our three NAIA terminals will have full capacity with inflows of foreign and local tourists,” Jimenez said.

Jimenez said the DOT is also looking forward to the Asia Pacific Economic Cooperation (APEC) Summit in 2015.

“The absorptive capacity of Philippine tourism will be tested in many world conferences set to be held here, like the APEC summit in 2015,” Jimenez said. – With Delon Porcalla, Paolo Romero, Christina Mendez