Wake Up, Philippines!

A doable stimulus plan

Posted in Economy, Global Financial Crisis, Legislation, Tourism by Erineus on March 16, 2009

Philippine Daily Inquirer
First Posted 20:14:00 03/16/2009

A measure that has been passed by Congress and is now awaiting the President’s signature may yet be one of the answers to the current economic crisis and at the same time may provide a long-term solution to the problem of poverty. The measure, the Tourism Act of 2009, creates the Tourism Development Estate Zone Authority and the Tourism Promotion Board.

Alejandra Clemente, president of the Federation of Tourism Industries of the Philippines (FTIP), said the tourism economic zones to be developed by the Authority would create millions of jobs and generate $10 billion in foreign exchange. She said that tourism could be an important engine of socioeconomic and cultural growth and generate investments, earn foreign exchange and create jobs.

Many countries today are visited by millions of tourists every year and earn billions of dollars in foreign exchange. According to the World Tourism Organization, in 2007 the top five most visited countries were France, 81.9 million tourist arrivals, $54.2 billion in tourism receipts; Spain, 59.2 million, $57.8 billion; United States, 56 million, $96.7 billion; China, 54.7 million, $41.9 billion; and Italy, 43.7 million, $42.7 billion.

The Philippines was visited by only 3.4 million tourists in 2007, compared with the 17 million of Malaysia, 14 million of Thailand and 14 million of the small country of Singapore. Clemente said that even Vietnam, which is still recovering from the devastation of a long war, was slowly overtaking the Philippines.

The Philippines could study the experience of Spain which was an underdeveloped country until the 1960s. It developed its tourism industry and is now one of the top five most visited countries and the second biggest earner from tourism in the world. Spain is not resting on its laurels and is continuing to develop business models that are environmentally, socially and culturally sustainable.

What does Spain have or, for that matter, what do Malaysia and Thailand have that the Philippines does not have? The Philippines has many tourist attractions like Boracay, one of the best beaches in the world; Palawan, “the last frontier,” which has exotic wildlife, white sand beaches and natural wonders like an underground river; Bohol, which has the world-famous Chocolate Hills and superb diving spots like Panglao and Balicasag; the Banaue rice terraces, called the Eighth Wonder of the Modern World; and Tubbataha Reefs, an excellent diving spot. The Philippines has a gentle, hospitable people, most of whom speak English. A melting pot of Malay, Chinese, Arabic, Indian, Spanish and American culture, the Philippines is a culturally active nation inhabited by musically and artistically gifted people.

What the Philippines lacks is a comprehensive, systematic tourism plan. A lot of infrastructure has to be constructed to bring many destinations up to world standards. Many hotels still have to be built to accommodate the growing number of tourists. And the government has to improve peace and order conditions; it has to crack down on kidnappers, robbers and con artists.

The development of the tourist industry would have a multiplier effect on the economy. The tourism master plan would create 30 million jobs over a 10-year period and earn about $10 billion in foreign exchange. When the number of tourist arrivals increases, there will be greater demand for food and services. A burgeoning tourist industry would benefit agriculture and the information technology industries. More factories would be needed to manufacture supplies for hotels and resorts.

A growing tourist industry could absorb the tens of thousands of overseas Filipino workers who have lost their jobs and are returning to the country. These workers only need to be retrained so that they can enter the tourism industry. An added advantage is that they would not have to leave the country again, and the social problems created by absentee parents would be partially relieved.

Government officials are pushing stimulus plans to revive an economy that is being affected by the global economic meltdown. The tourism program envisioned under the Tourism Act of 2009 is one concrete, doable stimulus plan. If President Gloria Macapagal-Arroyo wants a ready answer to the current economic crisis as well as a long-term plan to solve the problem of poverty, she can find it in the measure that is just waiting for her signature.

http://opinion.inquirer.net/inquireropinion/editorial/view/20090316-194487/A-doable-stimulus-plan

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