Philexport president Sergio Ortiz-Luis Jr. said most of the group’s members are linked within the tourism supply chain such as in food, furniture, logistics and giftwares, thus reforms in the tourism and hospitality sectors are also critical for local exporters.
MANILA, Philippines – Local exporters are pushing for policy and economic reforms to boost the country’s tourism and hospitality sectors which they claim remain lagging behind in the region.
Among the reforms being proposed by the Philippine Exporters Confederation Inc. (Philexport) include market access and connectivity improvement through upgrading of the international and domestic airports and seaports, as well as reduction of foreign carrier operations cost and elimination of the common carriers and tax on gross Philippine billings.
Other reforms seen by the group as imperative for bolstering industry growth include improving sea and road transportation services on safety and reliability, as well as development of competitive destinations, products and services.
Philexport president Sergio Ortiz-Luis Jr. said most of the group’s members are linked within the tourism supply chain such as in food, furniture, logistics and giftwares, thus reforms in the tourism and hospitality sectors are also critical for local exporters.
Ortiz-Luis stressed the vital contribution of the tourism sector to the country, with 34.8 percent of total employment or about five million Filipinos engaged in the food, beverage and accommodation sectors.
He said the number is still outside the passenger transport sector which has recorded an even bigger employment share of 36 percent.
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According to Ortiz-Luis, the gross value added of the tourism industry to total gross domestic product has reached P1.093 trillion last year, 14.8 percent higher from P952 billion recorded in 2010.
“Aside from trade, tourism is another sector that creates high value-added and positive ripples in the economy. Investments and jobs are generated, not to mention the socio-cultural exchange and development opportunities that become available. When taken advantage of, such links can help enhance a country’s image and status in the global market,” Ortiz-Luis said.
The Philexport official, however, said while the country’s tourism performance has been improving in recent years, it continues to be way below the performance of neighboring countries such as Thailand, Indonesia, Malaysia and Vietnam.
“Clearly, we find ourselves in a catch-up game again and unless the public and private sectors effectively work together in addressing bottlenecks that hamper further progress, moving forward will be daunting, even impossible,” he said.
