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  • Tourism arrivals hurt by US woes

     

    By Ma. Stella F. Arnaldo

    Special to the BusinessMirror

     

    TOURISM arrivals in the Philippines will continue to strengthen despite the projected slowdown in visitors from the US.

    In an interview with the BusinessMirror, Tourism Secretary Joseph Ace Durano said: “I’m projecting a 7-percent to 9-percent growth this year overall, even if arrivals from the US market slow down.”

    However, Durano’s projections are slightly lower than the 3.5-million target he announced at the beginning of 2008.

    Last year, tourist arrivals reached 3.09 million, up 8.7 percent from 2006, data from the Department of Tourism (DOT) show. This means Durano’s revised projection this year for arrivals is between 3.3 million and 3.37 million, compared with the 13.3-percent growth earlier announced.

    The slippage in arrivals from the US was already evident in the shrinking of participants in the recently concluded 4th Annual Ambassadors, Consuls General and Tourism Directors Tour. While the DOT had targeted 500 balikbayan or returning Filipinos from the US and Canada including their families, only 347 actually joined the tour held from July 12 to 14. When the tour was started in 2005, participants numbered 516. Last year, participants topped off at 650.

    Philippine Ambassador to Washington, D.C., Willy   Gaa said “people abroad have been affected by the economic crunch.” Still, he expressed satisfaction with the size of the tour group, saying: “It’s more than we expected and this group that joined us gave us their reservations as early as April or May…. I think this is just about the right size [compared with] last year, which was a lot.”

    For his part, Durano explained: “In the US, consumer confidence is at its lowest ever in the past 16 years, so I’m even surprised we got this number. While we initially targeted 500, we expected only 200, considering the [tour] packages went up by 20 percent. With these dual factors in play, 200 would have been considered good, but we got 350.”

    The tourism chief added there is even a demand to hold a similar tour twice a year, beginning this November. “We’re ready for it. We’ve always been pushing for making it twice a year. The value of this is not so much the tour but [the possibility of turning] them into investors. They start off as tourists to see the vibrancy of the economy, to see the opportunities as an investor also in business.”

    Data from the DOT show 1.37 million tourists arrived from January to May 2008, up 7.4 percent from the 1.28 million arrivals in the same period last year. For the first five months of the year, the US market accounted for 266,005 or 19.4 percent of the total arrivals, placing second after Koreans at 270,005, accounting for 19.7 percent. Arrivals from Canada came in eighth place, at 45,944, representing 3.3 percent of total tourist arrivals in the Philippines.

    “Nobody saw the slowdown in the US. I foresee the North American market to soften. But in the past two years we were able to position ourselves in emerging markets and these are the ones that are fueling our growth despite the challenges. These emerging markets include Korea, China, India, and Russia,” said Durano.

    The DOT data show that in the first five months of 2008, Korean arrivals rose by 2.4 percent, the Chinese at 22.2 percent, Indians 24 percent, and Russians, 12.4 percent.

    Meanwhile, participants in the Ambassadors’ tour said they were satisfied with the events they attended and sites they visited.

    Evangeline Gatmaitan, a dentist in Manhattan and resident of New York since 1975, said she was happy to be back in the Philippines, and meant to go home to her province of Davao with the official tour now over. “Many changes have happened since I was here last nine years ago. The tour was just great. We have been treated so well. I can’t complain.”

    Guam businessman Henry Santos Dacanay, whose family hails from Ilocos Norte, said the tour was “fantastic.” Born and raised on Guam, he said the tour made him appreciate his Filipino roots even more. “Growing up on Guam, I’ve never really experienced Filipino culture, but this trip has made me proud to be a Filipino.”

    His wife, Laura Lynn V. Dacanay, an American banker, said when she visits Manila, she usually does “the three Ms—malls, massages, and manicure. But this is the first time I’ve seen the culture. I really appreciate it.”

    The tour delegations visited Intramuros, Corregidor, Rizal Park, the Manila Ocean Park, and other popular tourist sites in Cavite, Laguna and Batangas.

    One addition to this year’s tour was the visit to the International Rice Research Institute (IRRI) in Los Baños, Laguna. According to Ambassador Gaa, the IRRI visit “is a timely inclusion because of the recent problem on food security all over the world. The people have been given the opportunity to look into the developments on rice production and what governments the world over has been doing to address this food issue.”

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