Philippines' economy works the tourism angle

The Philippines' tourism boom

Story and photos by Ülle Baum

Bacuit Bay's majestic 250-million-year-old limestone cliffs are one of its major tourist attractions. The Bay, which is located on the northern tip of Palawan Island, features 45 islands, islets, coves and lagoons. It is part of the 7,000-plus archipelagos in the Philippines.

Atropical wind breezes by as a Filipino banca boat cuts through the turquoise waters of Bacuit Bay, throwing sprays of water into the air as it veers towards the majestic limestone cliffs on the horizon. Under the clear blue sky, it almost feels as though infinity is near. Bacuit Archipelago features 45 islands, islets, coves and lagoons. The closest island town is El Nido, which has become a favourite island-hopping destination for adventurous travellers. El Nido sits on the northern tip of Palawan, which is among the largest of the Philippines’ 7,641 islands, only 2,000 of which are inhabited. This Southeast Asian nation has a population close to 108 million people who speak 185 languages and dialects. English is the second official language, after Fili

62 pino, which is based on the Tagalog language. As such, the country has the third largest group of English speakers in the world. A largely Christian society, 92 per cent of the population is Christian, and 86 per cent of the Christians are Roman Catholic.

A rapidly growing economy According to last year’s Oxford Economics report, the Philippines will be the second fastest growing emerging market over the next decade. The gross domestic product (GDP) is expected to grow by an average of 5.3 per cent between 2019 and 2028. The ranking also took into account funding availability and growth in the skilled labour force, which is expected to grow by an average of 2.3 per cent over the next decade. The country also enjoys the advantage of having a relatively low foreign-debt obligation. Remittances from 11 million Filipinos living abroad support the economy and the currency, amounting to nearly 10 per cent of the GDP in 2018, totalling US$26 billion. Four million Filipinos live in the U.S. and one million in Canada. Many work as nurses, nannies and caregivers. These remittances, along with the booming tourism industry, have helped maintain a budget surplus and remittances are expected to remain steady as more opportunities become available for Filipinos to work in Japan and Germany. The ambitious Build, Build, Build Infrastructure Program will cost $180 billion and is touted as the program that

will transform the Filipino economy over the next decade. The program’s key projects include building 32 roads and bridges connecting Luzon, Visayas and Mindanao, the three main island groups, as well as constructing six new airports, nine railways, three rapid transit bus systems and four seaports to facilitate more efficient movement of people and goods across the large archipelago. This plan will also increase the incomes of rural people and bring more investments to the countryside. The funding of these major strategic infrastructure projects is supported by development assistance from the Philippines’ leading investors, including the Japan International Co-operation Agency, Asian Development Bank and the Export-Import Bank of China. The United States is also supporting this infrastructure program. In November, the government unveiled a revised list of 100 infrastructure priorities to be launched in next three years. As the Philippines continues to target more new markets in Eastern Europe, Central Asia, South Asia, Africa and Latin America for its products, opportunities from trade diversification will insulate the economy from adverse external factors. Last year’s World Bank Global Economic Prospects report stated that the country will sustain its economic growth amidst global uncertainties and is expected to grow 6.1 per cent in 2020 and 6.2 per cent in 2021.

Tourism is a key economic driver In this steady economic growth, tourism continues to play a vital role, accounting for 12.7 per cent of GDP in 2018, with 5.4 million jobs generated. During the first half of last year, a total of5.5 millioninternational tourists visited the Philippines, an 11.43-per-cent increase compared to the same period a year before. In spending, they contributed $4.67 billion. The country ranks 13th among the world’s Top-15 travel and tourism destinations, out of 185 countries, according to the World Travel and Tourism Council. The prestigious Conde Nast Traveller’s Top 20 Countries in the World: Readers Choice Awards 2019 ranked the Philippines eighth. December through February is considered peak tourism season in the Philippines. The average year-round temperature of this popular tropical destination is 26.6 C. With so many unique travel opportunities, the Philippines offers accommodations for every budget. The country has well-established teams The gold colour of the Okada Manila building represents the hue of Manila Bay's sunset. Okada Manila is a luxury casino resort and hotel complex located in the Entertainment City, a gaming strip in Metro Manila. The fountain in front of the building is one of the largest dancing fountains in the world.

The Taal Volcano and lake. on the island of Luzon, offer one of the most picturesque views in the Philippines. Taal Island is in the middle of Taal Lake, where the Philippines' second most active volcano is situated. It has had 33 recorded eruptions.

of travel experts that can arrange tours and transportation to all destinations. Alejandra C. Clemente, chairwoman of Rajah Tours International Inc., is one of the architects of the country’s hospitality trade. Beginning in the early 1970s, she helped build the industry that has since been a tremendous help to the country. Since 2014, Clemente has organized seven “Winter Escapade” trips for more than 2,200 Canadian and American tourists.

The tour is an effective strategy to promote the Philippines as a tourism destination and also as a place for investment. It is a joint promotional program of the departments of foreign affairs and tourism. Last year, they refreshed their tourism branding — “It’s More Fun in the Philippines” — to focus on sustainable tourism. As the Philippines has set an ambitious goal to have 12 million foreign tourists by 2022, the balance between development and conservationis key. New tourist destinations are being promoted, including Luzon island, Mount Bulaylay in Cuyapo, Nueva Ecija, Candau City Ecotourism Zone in Ilocos Sur, Santiago Cove in Santiago, Ilocos Sur and Pinsal Falls Santa Maria in Ilocos Sur. The most popular tourist destinations in the Philippines, however, remain Boracay, Cebu and Palawan. Palawan made Lonely Planet’s Publisher’s List last year as one of the best places to visit in the Asia-Pacific region. It is also a UNESCO Biosphere Reserve. Palawan’s gem is El Nido, with pure white beaches, turquoise water, mysterious limestone landscapes and coral reefs. Various islandhopping tours take tourists to intimate coves and exotic lagoons.

A restricted number of boats and passengers are permitted to go daily from Bacuit Bay for sightseeing. Fewer tourists mean less environmental damage to this unique tropical oasis. During recent years, the municipality of El Nido has made many changes to its regulations. Going plastic-free was one of them. All single-use disposable plastics were banned by law from the boat and island tours in September 2018 and El Nido’s famous five Rs are: Reduce, Reuse, Recycle, Refuse and Report. As a mega-diverse country, the Philippines hosts more than 52,177 of the Earth’s species, and more than half of those are found nowhere else in the world. For example, two-thirds of its 150 palm species are unique, and 900 of 1,100 species of orchids are endemic to the Philippines. Travellers can see Filipino eagles, whale sharks, Palawan’s peacock-pheasants and a manatee-like marine mammal known as A dinner for Winter Escapade delegates was hosted at the Makati Shangri-La hotel by the Philippine Tourism Promotions Board, and featured performances by Bayanihan dancers such as this one.

Colourful banigs — handwoven mats — are traditionally used for sleeping and sitting. These ones were on display at El Nido's Kalye Artisano, a community-based artists village. Indigenous weavers use leaves and grass to make these unique designs. dugong.

The country’s surrounding waters have the highest level of marine biodiversity in the world, with about 330 freshwater fish, including the rare Sardinella tawilis, found only in Taal Lake. The Philippines’ rich biodiversity is one of its main tourist attractions.

Food tourism is also becoming more popular. People travel from afar to taste the most unusual delicacies of Filipino cuisine, which features Chinese, Malay, Indian, American and Spanish influences. The Philippines is the world’s second largest producer of coconuts, harvesting more than 153 billion tonnes per year. Suman, a traditional dish of rice cakes wrapped in banana leaves and made of glutinous rice, coconut milk, brown sugar and salt is a delight. And the indigenous calamansi fruit, also known as calamondin or Philippine lime, is widely used in local cuisine.

The capital, Manila, is among the eight top mega-cities of the world, with a population of more than 24 million and a population density of 15,300 per square kilometre. It is a centre for government, finance, trade, tourism, real estate and, of course, shopping. Manila is home to the world’s three largest shopping centres — SM Megamall, SM North Eds and SM Mall of Asia. The city keeps growing and every month a new hotel is built. Many regional tourists travel here just to shop.

About 30 international airlines bring travellers to the Philippines. Philippine Airlines (PAL) is the flagship carrier of the country and has 58 international destinations in 33 countries. It has non-stop service from Toronto and Vancouver to Manila. The carrier was ranked No. 1 on last year’s World’s Most Improved Airlines list, receiving the award from the U.K.-based airline rating consultancy Skytrax at the Paris Air Show in June. The airline is now ranked 30th out of 100 airlines from all over the world. It is a remarkable achievement and a 19-spot jump from 2018. PAL flights are known for their quality of food and service and the airline aims to receive a five-star rating this year. The airline shares the country’s distinct Filipino hospitality, which is the strongest brand for its tourism — one of the country’s main economic drivers, and a growing one.

Ülle Baum is Diplomat’s staff photographer. She visited the Philippines compliments of Philippine Airlines, Rajah Tours International Inc. and the Embassy of the Philippines in Ottawa.