A boost for tourism

In this year of recession, players in the tourism industry believe their sector can serve as a major engine of recovery.

Filipinos who have lost their jobs overseas can be taught new skills to join the local tourism industry. Some need not even learn new skills, according to Alejandra Clemente, president of the Federation of Tourism Industries of the Philippines. Chambermaids and other hotel personnel as well as kitchen staff can find jobs in local tourism facilities, Clemente pointed out.

There could be even more jobs if the industry is further opened to foreign investors, and if more incentives are given to local ones, she said. The industry currently employs nearly four million people directly or in downstream activities.

The industry is pinning its hopes for a business boost on the recent passage by Congress of the Tourism Act of 2009.

Though the new law will not cure all the ills besetting the industry, the federation is hoping that the law will pave the way for a better coordinated and more aggressive push to promote the Philippines as a tourism destination.

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Never mind the latest Travel and Tourism Competitiveness report prepared by the World Economic Forum, which showed the Philippines dropping five notches to a dismal 86th place among 133 countries.

The actual figures are more disheartening. In 2006, for example, the Philippines lagged behind much of Southeast Asia in terms of tourism receipts.

Thailand topped the list with $12.42 billon in tourism receipts — a growth of 29.52 percent from $9.59 in 2005.

Malaysia followed with $9.63 billion in earnings, growing by 12.72 percent from the previous year’s $8.54 billion.

Tiny Singapore earned $7 billion, up by 19.51 percent from $5.9 billion in 2005. Indonesia, still feeling the fallout from the bomb attacks in Bali, saw a drop in tourism receipts from $4.52 billion in 2005, but its 2006 earnings amounting to nearly $4.45 billion was still bigger than ours.

The Philippines’ tourism receipts amounted to $3.465 billion in 2006 — a hefty increase of 54.96 percent from the previous year’s $2.265 billion. But Vietnam, which earned slightly lower with $3.2 billion, saw its tourism receipts jump by 70.21 percent, from $1.88 billion in 2005.

In 2008, 3.139 million tourists arrived in the Philippines, with 195,287 of them Filipinos visiting from overseas.

That sort of growth is hardly impressive, industry players point out, considering that way back in 1983, tourist arrivals in the country had already hit two million. Clemente said tourist arrivals at the time plummeted following the assassination of former senator Benigno Aquino Jr.

The slow growth is lamentable, especially considering the revenue-generating potential of tourism. In 2007, visitor arrivals generated $4.8 billion in foreign exchange earnings for the Philippines.

What are we doing wrong?

Israeli Ambassador Zvi Vapni, who visited The STAR this week together with Chaim Choshen, director of the South and Southeast Asia division of their foreign ministry, said only 2,000 Israeli tourists went to the Philippines last year, while an average of 150,000 Israelis visit Bangkok every year.

Vapni pointed out that Jews like to travel; about two million of Israel’s population of seven million go abroad every year for business and leisure.

Israel can be an expensive travel destination for Filipinos, and there are security concerns even for those who feel they need to see the Holy Land at least once. About 6,000 Filipinos visit Israel every year.

But why the large discrepancy in the number of Israeli visitors to Bangkok and Manila? Vapni thinks it could be a marketing problem, with the Thais more focused on promoting tourism as a major national industry.

Flight arrangements are also easier between Israel and Thailand than between Tel Aviv and Manila.

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Industry players hope such problems can be better addressed with the signing of the Tourism Act.

Among other things, the new law will set aside for tourism promotion 50 percent of the earnings of the Philippine Amusement and Gaming Corp.

To help attract more investments in tourism, a Tourism Promotions Board will be set up, with representation from the various sectors of the industry.

So-called tourism enterprise zones will be set up across the country, to be supervised by the Tourism Infrastructure and Enterprise Zone Authority.

Tax breaks will be offered and measures drawn up to cut red tape and make it easier for investors to set up tourism-related businesses nationwide.

A unique feature of the new law is the “social responsibility incentive,” which offers tax deductions of up to 50 percent for tourism-related enterprises that promote the preservation of the country’s cultural heritage, environmental protection as well as sustainable livelihood.

To ensure that tourism development efforts are sustained, local governments will be involved in tourism development planning.

With international travel and tourism hit by the global economic slump, local industry players are counting on Filipinos to continue traveling within the country. In 2006, 16.76 million domestic travelers contributed an estimated P121 billion to the local economy.

The Tourism Act will have to be complemented by action from other agencies, particularly those involved in improving infrastructure for transportation and telecommunications. Inadequate infrastructure is one of the top complaints of investors and visitors alike in this country.

Security concerns must also be addressed. A nation that wants to turn tourism into its biggest industry must know how to keep visitors safe from all sorts of crooks, from petty thieves to foreign exchange swindlers and kidnappers. 

Sanitation and medical facilities need to be upgraded. We need clean public toilets, safe drinking water, efficient garbage collection, less air and water pollution as well as more access at least to efficient emergency health care.

Industry players believe the Tourism Act is a significant step forward and are awaiting President Arroyo’s signing of the law. Following its enactment, implementing rules and regulations must still be drawn up.

Countries such as Thailand and Spain have turned tourism into their top revenue earner. In the Philippines, industry leaders believe tourism can also become the primary engine of investment and national development.