TOURISM: GOOD NEWS, BAD NEWS

The Philippine Star
01/23/09

The tourism industry continued to be a top contributor to the country’s coffers after posting another increase in tourist arrivals, with reported arrivals from January to October last year reaching over 2.6 million, or a four percent hike over the same period in 2007.

Tourist arrivals from ASEAN member nations as well as erstwhile non-traditional markets such as Russia, China, India, Scandinavia and the Middle East registered increases to offset declining growth rates from traditional markets including the United States, Japan and Korea.   

Other than the usual sightseeing tourist and tour packages, the tourism department reported that the country is carving a new destination niche as it is fast becoming a favorite location among Bollywood and Korean film makers.

For the first six months of 2008, data shows that tourist spending amounted to around $1.9 billion with Koreans and Americans accounting for 27 percent and 26 percent of the total amount, respectively. Expenditures earned from France, Scandinavian countries, Italy, Spain and Russia also registered double digit growths.

Such new developments make up the good news segment of the tourism industry. On the downside, the bad news is replete with the age-old problem of an inadequate or non-existent infrastructure backbone to serve the industry, including ill-trained or corrupt personnel.

With more direct flights from China, Taiwan and Korea to such destinations as Cebu and Boracay, the last thing we need are cramped and obsolete rural airports that greet travel weary tourists. This chronic lack of tourism-related infrastructure puts in peril the new markets we are attracting.

No place to stay

The tourism department has been busy all over the world trying to attract tourists to visit the country and enjoy our beaches, dive sites and natural wonders. 

But what’s the point of inviting the world to come over if we do not have enough hotel rooms, or, worse, offer sub-standard accommodations? That would be like inviting thousands of tourists who would be spreading negative reviews of the Philippines due to our poor infrastructure and services.

Big national organizations think twice about holding annual conventions in the paradise-like province of Palawan and its capital, Puerto Princesa City, due to lack of accommodation facilities.

While there are two Chinese investors endorsed by the Tourism Department that are building resorts in Palawan, these are not enough should the province go full throttle in bringing tourists in.

Holiday Inn, Mariott, Best Western, MGM, Wynns, and other noted international entertainment, gaming and hotel chains would definitely add luster to local tourism. All it takes is a generous incentive package – and genuine political will – to expedite their investment decision.

Take note that Malaysia takes in an average of nine million tourists from Singapore alone. What if even half, or even a quarter of that number, decide to visit Palawan? Where would they stay?

Lack of healthcare facilities

And it’s not just the inadequate number of hotel rooms that’s hurting tourism, but other related infrastructure like healthcare facilities. Palawan, Bohol and Boracay are ideal dive sites but in cases of drowning or other similar accidents, the nearest state of the art medical facilities would be Cebu for Boracay and Bohol, and Manila for Palawan. 

A St. Luke’s Medical Center or Medical City-type facility in Bohol, Boracay and Palawan is due, as it would also attract longer-staying retirees under the retirement incentive package the government is also actively pushing. 

We have to take care of our tourists, or somebody else will.

Zeroing in on Europe, Middle East

After successfully courting the lucrative Chinese, Russian and Indian markets, the tourism industry is now setting its sights on other European markets, i.e., France and Scandinavian countries, and the Middle East, the wealthy United Arab Emirates, in particular.

The 34-percent increase in Russian tourist arrivals and 29 percent for the French, who are the top-spending tourists last year, drew in some $20.3 million in revenues.

Positioning the country as a top tropical destination for winter-weary Scandinavians resulted in a 16-percent increase in arrivals from Denmark, Sweden, Norway and Finland. Spending from this market also saw a 29 percent increase, raking in $36.1 million.   

Diving and adventure packages also managed to jack up the number of Spanish tourist arrivals by 22 percent, while UAE arrivals posted an encouraging 32.7 percent increase from 2007 levels.

The numbers will tell us that there will always be tourists from all over the world interested to visit a destination laden with awesome and rich natural resources like the Philippines. And most likely, more will come if and when we offer them better services and are well prepared for their arrival in droves.

Learning from Malaysia

If Malaysia can haul in around 10 to 15 million tourists a year, what can we learn from them?

In 1999, it adopted a three-pronged plan of action to further boost tourism and a year later, earned some $5 billion from almost 10 million tourists. By 2006, Malaysia was earning $10.5 billion already from tourism.

Clearly, Malaysia can teach us a few things in terms of strategy, approach and attitude. And we need not wait for 36 years to achieve what our neighbor is reaping today.

Doubly challenging

With recession worries spreading worldwide, it would be doubly challenging to approximate the growth rates in tourist arrival achieved last year. However, the effort to grow or at least to maintain the previous year’s level must not waver.

With the plan of the government to boost the economy through infrastructure building, the needs of the tourism sector should be given priority if we are serious in making this sector a positive influence while the local economy parries the global crisis.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, SalcedoVillage, 1227 MakatiCity. Or e-mail me at reydgamboa@yahoo.com. For a compilation of previous articles, visit www.BizlinksPhilippines.net.