THE outbound travel industry continues to be vibrant, as Filipinos continue to go abroad for holidays and vacations, despite the weakening peso.
In an interview with the BusinessMirror, Aileen Clemente, chairman and president of Rajah Travel Corp., said: “Even as the peso depreciated, there have been more airline promos this year than last year.” The lower ticket fares, she asserted, “offsets” the impact of the depreciated peso, thus evening out the cost of traveling abroad.
Her company, for one, has recorded a “15-percent to 20-percent increase in ticket issuance,” with many outbound tourists going to countries in the Asean, Japan and the United States. While these countries continue to be frequently booked, she has also noted an increasing number of Filipinos traveling to “new destinations like Iceland and New Zealand.”
Iceland has a dramatic landscape, which offers visitors volcanoes, geysers, lava fields and an opportunity to gaze at the aurora borealis (northern lights). Aside from its lively food and beverage scene by way of local wineries, New Zealand has also become popular because some sites were used as locations for the popular Lord of the Rings film trilogy.
“Also, Singapore Airlines has more flights now to New Zealand, and PAL [Philippine Airlines] will start direct flights there soon,” Clemente explained.
The Philippine peso is considered the worst-performing currency in Asia, and fell to a new 11-year low on October 19, closing at 51.53 to the US dollar.
Last Friday Rajah Travel launched “Luxury Gold,” a sister brand of Insight Vacations aimed at the premium market. “Luxury Gold really ups the ante allowing smaller group size, having more than a travel director—a travel concierge, luxury accommodations and more opportunities for relaxation, great dining experiences (including Michelin-starred restaurants, farm-to-table dining, actual cooking demos and actual cooking, etc.). It is truly an upgraded journey,” she said.
“Most important,” Clemente added, “these are VIP experiences that you will not get elsewhere. Most tours allow VIP visits, meaning only the group would be in the museum before anyone else gets there, or after everyone has left. So it gives you more intimate experiences in usually crowded museums.”
Under the Luxury Gold brand is the “Chairman’s Collection,” which are destinations and experiences personally handpicked by The Travel Corp., which owns Luxury Gold/Insight Vacations, along with 30-plus other global brands. “These include encounters with royalty, such as lunch with an Italian count at his grand Tuscan villa; a visit to the gardens of Alnwick Castle with the Duchess of Northumberland; dining with a French noble at Paris’s oldest café; and a drinks reception with Princess Anita von Hohenberg at Artstetten Castle,” Clemente pointed out.
The tourism industry stalwart expressed optimism that these new luxury tours offered by Rajah would be a welcome addition to the country’s strong outbound travel market. “In terms of Insight Vacations and Luxury Gold, our clients are the kind of travelers not so affected by currency movements. They are discerning travelers who value the experiences over the costs. They know that, in taking a Luxury Gold tour package, it is an experience that cannot be quantified.”
She believes outbound travel will continue to grow, despite the weakening peso, which many economists have forecast to drop to 52 to a US dollar by year-end. “Travel is a way of life, and can be both for business and leisure. We are also part of the global economy, which means that travel in and out of the country will continue.”
Currency forecasts for 2018 are mixed, from P52 to P54 to the greenback, depending on whether or not the Philippine central bank raises its key interest rates, in reaction to the US Federal Reserve’s anticipated rate hike.
However, the Asian Development Bank recently projected continuing strength in the Philippine economy, expanding by 6.5 percent in 2017, and 6.7 percent for 2018, in terms of GDP. The Philippine government is targeting a GDP growth of 7 percent to 8 percent in 2018.
1 comment
They keep on talking about peso depreciation rather than USD appreciation. The fact is, many currencies such as British Pound, EURO, Australian, New Zealand, & Canadian dollars have all depreciated vis-a-vis US dollars. The exchange rates of the Philippine peso with these currencies are basically unchanged from 2-3 years ago. It has even appreciated slightly against the British pound.