EDITORIAL - Support for tourism

The numbers are improving, but the revitalized marketing campaign to lure more tourists to the Philippines will have to be backed by investments in the many other aspects of the travel industry. This is according to an economist whose views have also been expressed by industry players.

From January to September this year, the country recorded 3.15 million tourist arrivals – 9.08 percent higher than in the same period in 2011. The country appears to be on track to surpass last year’s total arrivals of 3.917 million and the 3.52 million in 2010.

Compared with neighboring countries, however, the Philippines has some catching up to do. Thailand, for example, recorded 19 million tourist arrivals last year, despite massive flooding that affected even the capital Bangkok. Malaysia recorded an enviable 24.7 million. The Philippines is aiming for a modest goal of 10 million arrivals – by 2016.

University of Asia and the Pacific economist Victor Abola said that without the infrastructure to bring tourists to Philippine destinations smoothly and comfortable hotels, it could take a decade for the country to catch up with its neighbors in terms of tourist arrivals.

The country lags behind its neighbors in terms of commercial service exports, which cover tourism, transportation, business process out-sourcing and financial services, according to the latest data from the United Nations Conference on Trade and Development and the World Trade Organization. The numbers have improved, with commercial service exports amounting to $3.782 billion in the second quarter of the year – an increase of 10.7 percent from the same period in 2011. But the amount pales in comparison to $28.909 billion for Singapore, $10.096 billion for Thailand, $9.252 billion for Malaysia and $5.645 billion for Indonesia.

There have been impressive gains in the past two years, and the Philippine economy is doing better than most amid global financial woes. The latest upgrade by Moody’s Investors Service, which raised the country’s credit rating to just a notch below investment grade, is just the latest piece of good news. But even with improved economic performance, most of the country’s neighbors are still ahead in many development indicators. Philippine economic figures so far are positive, but there’s a lot of room to do better.