GIVEN its 7,641 islands, the Philippines could leverage on a “multi billion peso” leisure boating industry. However, it remains rough sailing as more things still need to be done, Headsail Inc. President Angelo Olondriz said.
While the recreational use of a boat is now getting more popular in the country, he said it’s still quite a very young industry, mostly because the infrastructure hasn’t really been worked on.
“If we were building marinas and add charter industries and manufacturing [players], you’re talking billions [of pesos in revenue],” he told the BusinessMirror in the sidelines of the opening last Friday of the ninth SEA-EX Philippine Boat Show and Nautical Lifestyle Expo at the SMX Convention Center, Mall of Asia Complex, Pasay City. “The potential for the industry is huge.”
What’s also preventing the growth is the limited number of local boat suppliers or builders which, based on the Maritime Industry Authority’s (Marina) data, currently numbers 92.
“Now, they’re coming and sell out of their homes. It’s a very ‘mom-and-pop’ type of thing,” he noted. “But slowly, they’re investing more in their products and in their trainings. They’re backing it; they’re getting new products so as the industry grows. And that’s what we see today.”
Olondriz estimated the local leisure-boating sector generates around P250 million in boat sales alone annually. It can go up to P300 million yearly if other sources of income are included, he said.
“We just have to put things into place and then we have to work it,” he said of the possibility for the industry to reach its full potential and turning the Philippines as one of the leisure-boating capitals of Asia.
Over the years, there have been unprecedented developments between the national government and the private sector that are paving the way for the creation of a thriving local boating community, one that rivals those of Thailand, Hong Kong and Singapore.
As a country with 36,289 kilometers of coastline—the third longest in the world—and vast marine resources, the Philippines has the natural resources needed to support developments.
“Our location is ideal, being on the equator and our weather is beautiful almost all year round. If it’s stormy in Luzon, you can go down to the Visayas. And then we have some of the biggest concentrations of boats in Hong Kong on top of us or in China, and they have four seasons. So what I’d like to see is when there’s winter there, they start moving down and then they come and cruise in our waters,” Olondriz said. “I don’t see why can’t we achieve that. It’s already happening in other countries, where people from Hong Kong or China go to Thailand. So why can’t they come to us since we’re closer to them?”
In 2009 a select number of players in the boating sector, which he headed, begun the campaign to turn the Philippines into Asia’s Mediterranean—a country whose coastlines host businesses that not only support employment for locals, but also provide significant contribution, as well.
This year the government, headed by Marina, the National Coast Watch Council and the Tourism and Promotions Board, joins the initiative and calls for more private firms to join, as well.
“During the first SEA-EX Nautical Lifestyle Expo nine years ago, we started the dialogue about the importance of our coastline and marina development, and the potential growth it can provide the country, if done properly. We are happy to see the government, along with the private sector, is now taking the lead in that discussion.
Olondriz said they are currently working with them to update the rules and regulations that govern the maritime industry, since it was last revised in 1987; and they are pushing for legitimization of the leisure boating industry.
“We just have to fix regulations, rules and the safety aspect of it because security is very important. So that’s what we’re doing now with the government, and it seems to be getting better,” he said. “I would also add the last few years was a lot more positive and we’re excited about it. They recognize the industry, which is No. 1 most important. So we now have a voice per se, and we just move on from there.”
Because it’s very capital and labor intensive to get into boat manufacturing and even marina development, incentivizing the builders and developers is a feasible way to encourage more industry players.
“The confidence is rising, more products and support are coming in, and we’re professionalizing ourselves. These developments will pave the way for significant growth in the years to come,” Olondriz said.
1 comment
Thank you for this brother Roderick… I was looking into this too, SEA is a region that blows away the Carribean…. Philippines alone would be perfect for this. I am praying they will follow the 0% importation of Sailboats under 40m (non- Superyacht) so non-rich boaters can actually have a chance to enjoy the sport and the Filipino people can rediscover a lost tradition!