Time to scrap that useless open skies policy!

In two weeks, EO No. 29 dubbed as the Aquino regime’s “Open Skies” policy will be a year old (it was signed on Mar. 14, 2011) but it seems that nothing is happening within the Tourism industry a year after its implementation. EO No. 29 was the pet program of former Tourism Secretary Alberto “Bertie” Lim which from day one, we vigorously opposed for the simple reason that in Cebu for instance, there were at least 20 airlines already armed with entitlements given by the Civil Aeronautics Board (CAB) to fly directly to Cebu even without EO No. 29, yet none of these airlines cared to make use of these entitlements.

But somehow, the former DoT Secretary was able to convince President Benigno Aquino III to sign this EO, and the President obliged his Tourism Secretary, who in the past was one of the main pillars of the “Freedom to Fly Coalition.” Under P-Noy, this group has finally achieved their goal. I originally supported the Open Skies policy when we only had Philippine Airlines (PAL) flying in and out of Cebu. But I changed my stand when many other airlines started operating locally.

Well one year of Open Skies policy hasn’t brought any new players into the Cebu tourism market. That alone is proof that Pres. Aquino’s Open Skies policy has not worked as we predicted. But never mind that no new airlines are flying to Cebu… but the more painful part was revealed to us last week… when Qatar Airways formally announced that they are discontinuing the thrice-weekly Cebu-Doha-Cebu route. The last plane out will be on March 26. So if you’re a regular flyer to Doha, you must now fly to Manila to fly to Doha via Qatar Airways. Imperial Manila wins again!

We learned that among the many problems that foreign airlines are experiencing is due to the reality that these foreign airlines have to pay a 3 percent common carrier’s tax and a 2.4 percent gross Philippine billings tax on passengers and cargo revenues. I was informed by a frequent traveler, Rodolfo Taneo Jr., who emailed me that KLM uses 11,000 rooms annually for their flight crews… but all these will be gone when they pull out of the country.

Taneo pointed out, “If I will make an extrapolation, Qatar Airways’ 2 times a week flight should fetch approximately 4,700 rooms annually and this too will be all gone soon. Obviously, its adverse effect is serious. I know that this government will always say that we can’t forgo also the tax revenues that will be derived from these flights but for goodness sake, this is common sense — they are bent in getting the “eggs” at the expense of killing the “hen”?

Taneo added, “I feel frustrated because I’ve been telling my foreigner friends here in Doha to spend their vacations in Cebu. I should share with you that one common question raised by these potential tourists is — is there a direct flight from Doha to Cebu? Anyway, I read just recently that both the provincial and the city councils have passed a resolution asking Qatar Airways to reconsider its decision, but it may be a long shot unless these barriers are removed and until this government starts doing its job seriously.”

Indeed, Taneo’s information is correct. The Cebu Provincial Board (PB) and the Cebu City Council together with the Cebu Chamber of Commerce and Industry, Inc. (CCCI) last Wednesday issued resolutions asking Qatar Airways to reconsider its decision to discontinue its flights between Cebu and Doha as they are Cebu’s direct link to the Middle East and the rest of Europe, whose majority passengers are overseas Filipino workers (OFW) working there. Now these so-called “new heroes” would have to spend extra money for the flight from Manila to Cebu.

When Qatar Airways is gone, there is no doubt that the other remaining airlines flying in or out of Cebu will benefit from the windfall and perhaps even raise its fares…something that we hope they would not do. Come October, preparations are now underway for the canonization of the 2nd Filipino Saint, the Blessed Pedro Calungsod who comes from the Visayas.

Already, we learned that no less than his eminence Ricardo Cardinal Vidal and Cebu Archbishop Jose Palma had a meeting with President Aquino to invite him to join the Cebu delegation to be at the Vatican in Rome for this joyous occasion. Unfortunately, the two pillars of the Cebu Archdiocese did not talk with the President, perhaps because P-Noy has alienated himself from the Catholic Church because of his dogged pursuit to pass the Reproductive Health (RH) bill.

Qatar Airway’s move to drop Cebu will have serious consequences in our tourism industry. In 2011 there were 3.9 million visitors to the country, which is nothing compared to Thailand’s 20 million tourists. We know that the DOT has been trying hard to sell our slogan, “It’s more fun in the Philippines”, but what good is that if foreign airlines refuse to fly here because of excessive aviation fees? I dare say scrap that useless E.O. No.29!

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For email responses to this article, write to [email protected]or [email protected]. His columns can be accessed through www.philstar.com.

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