EDITORIAL - Another slide in competitiveness

A new law aimed at boosting the country’s tourism industry is expected to be enacted soon. Though the Tourism Code won’t please everyone in the industry, the nation needs to exert additional effort to bring in more visitors. The third annual report on tourism and travel competitiveness, prepared by the World Economic Forum, showed the Philippines sliding five notches.

The results of the WEF survey, which covered 133 countries, are consistent with studies in recent years on national competitiveness in other fields. The criteria for tourism competitiveness included the existence of supportive business and regulatory frameworks for travel as well as the availability of world-class transport and tourism infrastructure. The report also considered the level of development of human and natural resources for tourism.

Not surprisingly, the top 10 countries in the competitiveness report are Switzerland, Austria, Germany, France, Canada, Spain, Sweden, the United States, Australia and Singapore. The Philippines, ranked 86th, is way behind even in Southeast Asia. Malaysia ranked 32nd, Thailand 39th, Brunei 69th and Indonesia 81st. The Philippines ranked ahead only of Vietnam and Cambodia, and both countries are already racing to catch up. Laos and Myan-mar were not included in the survey. This year Syria sprinted ahead of the Philippines at 85th place, up from its 94th ranking last year.

Competition for visitors is expected to be tougher this year amid the global economic slump. The WEF report cited the Philippines’ strengths: its rich natural resources and biodiversity, low prices and relatively relaxed visa requirements. Bilateral air agreements were also cited as a plus. But the report said restrictions on foreign investment, difficulties in starting a business and weak protection of property rights hampered the development of the travel industry. Other concerns raised were safety and security, health and hygiene, and the inadequacy of transport, tourism and communication infrastructure.

All those concerns have been raised several times in the past by various business groups. The enactment of a Tourism Code should improve the response to those concerns and raise the country’s level of competitiveness in one of the biggest revenue-generating sectors in the world.