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Peace and order spurs tourism development By CHARLES RAYMOND A. MAXEY
The present positioning of the city as an urban destination with eco-adventure and eco-tourism offerings make Davao City a unique place of interest.
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NE only needs to look around to know how far Davao City has attained when it comes to tourism growth. Many accommodation facilities are sprouting, shopping malls are mushrooming and dining places are everywhere.
Visitors, too, come and go--domestic and foreign tourists alike. To City Tourism Operations Office (CTOO) chief Lisette Marques, the growth of Davao City tourism industry through the years can only be attributed to one factor— the city’s stable peace and order situation. Marques even pointed to Mayor Rodrigo R. Dutere, whose iron hand against criminality is known all over the Philippines, as the real tourism officer of the city. “We all know who the real tourism officer is,” Marques told
Edge Davao. Marquez recalled that during a BIMP-Eaga gathering in Davao City last October, Duterte assured guests of their safety in the city as peace and order is also geared towards tourism growth. She said visitors are coming over because of the city’s stable peace and order situation and that businessmen are pouring in their investments into Davao. Marques didn’t gave details as to the exact number of tourist arrivals in the city since not all accommodation establishments have provided her office with a report, but said tourist arrival have grown to 32 percent in 2014 from the 27 percent growth recorded in 2013. Based on the Department of Tourism (DOT) 11 record, tourist arrivals in the Davao Region reached 2.3 million in 2014, mark-
ing a 25 percent increase from the 1.8 million visitors recorded in 2013. According to the Davao City Investment Promotion Center (DCIPC), the city’s tourism industry is now undergoing an unprecedented growth. DCIPC said this is evident by the recent entry of new hotel brands, with about five more business hotels undergoing construction. The rise of new hotels has brought the current number of rooms in the city to more than 7,000. “The present positioning of the city as an urban destination with eco-adventure and eco-tourism offerings make Davao City a unique place of interest,” DCIPC said in a report. Two airline companies are
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The State of the IT-Business Process Management Industry
DAVAO AS ASPIRING OUTSOURCING DESTINATION By BELINDA L. TORRES, MSIS
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T IS almost nine o’clock in the evening Philippine time, and most new breed of yuppies are mobile to report for work at 9 AM EST. Being part of this industry, one has admired and learned what EST, PST, CST, AST and even IST is, all of them are of different time zones as this is crucial to BPO (business process outsourcing) company’s operations as well as the employee’s time in and out. The IT-BPM (IT Business Process Management) industry in the Philippines has changed when people work, how they work but has greatly impacted the community and the country as a whole in achieving sustainability and inclusive growth.
The IT-BPM Industry in the Philippines is something we should be proud of. Its performance has marked us, as the No. 1 in the Voice sector worldwide and No. 2 in the 2015 Tholons Top 100 Outsourcing Destination Survey (NCR in particular). The Tholons Survey identifies the Top 10 emerged, Top 50 emerging and 40 aspiring outsourcing locations around the world through the implementation of primary and secondary research, as well as quantitative and qualitative analysis. Its growth has become so tremendous that in 2006, its revenue of US$ 3.4B from Full-Time Employees (FTEs) of about 236,000 has become US$ 18B in revenues from 1,000,000 direct FTEs. This translated to about 5.5% of the Gross Domestic Product (GDP) at yearend of 2014. The industry is optimistic that by 2016 it will generate about US$ 25B in revenues from the di-
rect full time employees (FTEs) of about 1.3 million. The industry impacted a global share of 6% in 2006 to about 10.4% in 2012. Just like any industry, the IT-BPM has its own ecosystem. These factors have contributed to what it is today. There should be synergy in terms of talent, energy, security, domestic market, investment and connectivity to make seamless IT-BPM operations. Where does Davao region, come into play? ICT Davao, Inc. a non-profit organization with 15 member associations comprising of BPO companies, software developers, animators, graphics designers, Virtual Assistants, transcribers, educators, corporate IT practitioners has been in the forefront in making Davao region an ICT-BPM hub ensuring that this
region, will remain attractive to more locators in coordination, cooperation and support of DOLE, DTI, DOST-ICTO, TESDA, CHED, NEDA and of course the local government of Davao City to name a few. Davao has been ranked No. 69 in the Tholons Survey, the third city from the eight ranked in the Philippines after NCR and Cebu. It has also maintained its position as No. 1 in the Next Wave Cities, a ranking done by DOST-ICTO among 42 National ICT Confederation of the Philippines (NICP) members represented by ICT coun-
cils of different cities. Talent According to an IDI report in 2014 as presented by its president, Atty. Samuel Matunog, Davao City has remained an attractive location for BPO locators, which have now risen to about 35 centers, those with over 100 seats although there are centers that are still to be accounted for especially those start-ups and backyard centers. It is estimated in 2013 that this industry is employing about 21,000 FTEs and is roughly generating 4.0 Billion Pesos in annual compensation rev-
enue at a P15,000 monthly salary based on the 2013 report of the Philippine Statistics Authority. By 2016, it is estimated that the workforce will increase to 30,000 or about 43%. In an ADB Working Paper Series No. 366, published on September 2013, Raja Mikael Mitra in his paper Leveraging Service Sector Growth in the Philippines wrote, “The country’s principal strength is its large, educated workforce with strong English language capabilities and a repu-
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Main office: SLDC Bldg., Duterte St., Davao City | For Inquiries & Reservations: Tel. No. (082)221-5688;300-7083 • Email ad: sldcdvo71@yahoo.com • Website: www.santosland.net
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Y T R E P PRO
T O N WHY By NEILWIN JOSEPH L.
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F there is one oft-repeated question thrown at every player in the real estate business out there, it should be: Why not Davao? That question is hounding every Tom, Dick and Harry in the property market. It’s even setting off every glib-tongued, stiletto-clad saleswoman in the brokerage world. It’s that one question too that stares a wouldbe investor in the eye. The clock is ticking.
BRAVO
Yes, that’s Davao. It’s a take-it-or-leave it proposition. More like take-it-before-you-regret-it. It’s the real deal, hot deal served on the table. You have to think fast or someone beats you to the deal. And why not? Davao is perhaps the most intriguing question of late when it comes to property investment. Make no mistake about it. For starters this city is lovely, her residents are friendly, the water is clean and
available property is abundant and diverse. Take your pick. From investing on a condominium, to house and lot, to commercial property or a piece of land to offset inflation, generate income, or just to enjoy a new asset. You’ll find at least the right property for all the right reasons. Stable supply of electricity, abundant water, high-speed internet and favorable land elevation are some factors that prospective buyers consider when purchasing a new property. Check the boxes on those items when you bring your checklist on any Davao City property offering. According to the Davao City Investment and Promotions Center (DCIPC), Davao City has grown to become the leading metropolitan city of Southern Philippines. Its economic landscape has changed
dramatically over the last 10 years and is projected to have a sustained or sharper growth trajectory in the nest 3 to 5 years. That 10-year period was marked with an investment growth that was anchored strongly on a 60% contribution from property development alone. Given that just about every big name in the business are already in the city—Ayala Land, Robinson’s Land, SM Properties, Filinvest, Crown Asia, Consunji Group, Megaworld, DMCI and Camella--the city government has placed property development among the most attractive investments in the city. Not to be outdone, the local players like Alsons, Damosa Land, Kisan Lu
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? O A V A D T convention centers, industrial estates, self-contained communities, and retirement parks. The DCIPC has laid down the guidelines for future construction with attention to green ar-
and lately, Escandor Development Corporation (Esdevco) and FTC Group of Companies, are also joining the mix in this increasingly crowded industry unfazed by the daunting presence of high rollers. The DCIPC said mall investors have also shown optimism about the strength of the local market by establishing multi-billion peso complexes in the city. Condominiums, condotels and dormitories make up the new wave of construction that’s practically racing towards the city’s skyline sprouting from the central business district to strategic locations around the city. Even the old city streets like C.M. Recto (Claveria) and A. Pichon Sr. Street (Magallanes) are enjoying a so-called renaissance with high-rise projects. DCIPC credited the emerging market with the strong and steady influx of overseas Filipino workers (OFWs) market and expats affirming the city’s reputation as a “buyer’s market” for its low cost of living, peace and order and laid-back lifestyle. The growing market and the invasion of real estate companies were a spinoff to the city’s huge housing backlog totaling 42,430 for the low-cost type and a considerable number for middle class and high end, according to the DCIPC. In 2014, the Board of Investments (BOI) Mindanao Field Office reported that seven real estate projects worth P2.37 billion were put up in Davao City. Steward Home Development Corp. and Kim Guan Realty Development Corp. are newcomers while 8990 Housing Development Corporation has poured in the biggest investment. Amidst the sustained growth in the construction industry particularly in the housing and commercial sector, investors can also look at a window of opportunity in
chitecture and engineering, use of environment-friendly building materials, energy-efficient lighting, and air-conditioning. The premium is to heed the demands of the times with impe-
tus on climate change. Given all that, we go back to the question: Why not Davao? That question is more and more sounding like an imposition to act.
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also re-launching their domestic routes by the end of this month, underscoring Davao City’s label as a tourism destination. The Philippine Airlines (PAL) will have a daily Cebu-Davao flight
and a thrice a week Zamboanga-Davao flight starting March 29, two of eight domestic routes the country’s flag carrier is launching and making Cebu as the hub. Two days earlier, Air Asia will also start its
Manila-Davao route with three flights a day. “These are routes that were there before and were cancelled. Now that they have re-established these connections it gives consumers, our visitors, better choices,”
Marques said. For this year, the city’s tourism got a major boost right away still four months into 2015 with the staging of the Visit Davao Fun Sale (VDFS). The VDFS is Davao
City’s most awaited tourism campaign this Holy Week and summer covering all sectors of tourism from tours, accommodation facilities, dining, shopping and adventure. Why must visitors go
to Davao City? “There are so many things to offer. The Davao Region has been tagged as from islands to highlands,” Marques said. “It is the only destination that we can boast of an urban lifestyle.”
tation for being flexible, adaptable to both Asian and Western cultures, productive, loyal, and dedicated with key strengths in attention to detail and the ability to communicate and work with a positive and enthusiastic attitude and to take initiative. Filipinos speak idiomatic American English better than Indians and many other Asians, and their accents are more neutral. The workforce is familiar with multiple cultures (American, Chinese, Japanese, Malay, and Spanish) and has a proven ability to respond to changing customer demands and to deliver quality at low cost.“ Despite these statements and while the available graduates in the southern Mindanao catchment area exceeds 54,000 higher education graduates every year, demand
for qualified talent continues to outstrip supply estimated at 5,000 seats at any given time. In a recent study made by iBPAP, out of the 100 applicants only 7-10 is given job offers and is hired. The local government on 2014 supported the industry through its bridging program translating to about 350 graduates and employing about seventy percent (70%) of them. TESDA continue to provide scholarships in support to the sector’s employment demands. On the other hand, CHED has included a tract in two programs in particular BSBA and BSIT dedicated for BPO competency requirements. There remains a strong demand for talent as BPO locators continue to consider Davao as a potential location; which, in turn, entices more property owners
to invest in BPO spaces. Investment Huge investments are being poured in the construction of BPO spaces, with big locations currently being constructed: Matina IT Park, Matina Townsquare and Felcris Centrale just newly opened. These projects under construction are slated to be completed by third quarter of 2016. Developers are increasingly positioning themselves on BPO projects. Energy With new power sources supplying the Davao grid between now and 2016, it appears that adequate and reliable energy supply is assured despite occasional brownouts being experienced by the region. Security Security has been a sensitive issue with for-
eign locators as national broadsheet sometimes generalizes events that are detrimental for investors to pursue business in the region because of negative publicity but with media continuously providing positive support and reports making Davao a business and tourist destination, all these impressions are to our advantage. Crime rate is low and presence of the police to safeguard its constituents have been a major factor enabling people to feel safe to walk alone even at night. Evident to this, the Davao City Police Office was awarded three times in a row as the best police office in the country. Davao is the only city with the 911 facilities outside the USA and Canada. Connectivity There is so much to be desired in the area of
Internet bandwidth. It remains slow and costly. Serious new players are welcome to penetrate the market to create a level playing field. Globe Telecom has announced a new submarine cable connecting Davao to the US will be completed by the fourth quarter of 2016, linking five areas and territories that include Manado (Indonesia), Davao (Philippines), Piti (Guam), Oahu (Hawaii, United States) and Los Angeles (California, United States). The SEA-US project will be approximately 15,000 kilometers in length provides route diversity from the North Pacific, avoiding earthquake prone areas in East Asia. The cable system is expected to provide more efficient connectivity to approximately 1.5 billion people. Still another Internet gateway is
planned to link Mindanao to Malaysia and Brunei. All these developments should augur well towards vastly improving the adequacy, quality, reliability, and cost-effectiveness, of Internet bandwidth for southern Mindanao, according to IDI. Domestic market With the potential of this industry, inclusive growth has been evident, considering the indirect employment it generates. According to the old AsiaWeek, Davao City is the Most Livable City in the Philippines. It is eight o’clock in the morning and these yuppies that reported for work at 9 o’clock in the evening Philippine Time, call it a day. Time to go home, rest and sleep. It is 12 pm and it is 12 o’clock Midnight EST. Sweet dreams.
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By CHENEEN R. CAPON
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crc@edgedavao.net
HEN Filinvest Land, Inc. (FLI) had its ground-breaking ceremony for the developer’s second medium rise condominium project in Davao City last Friday, it marked another milestone in the company’s real estate business. Not only that, the latest ground-breaking ceremony also means that another project will soon rise and eventually end up becoming an added structure to the booming real estate sector of Davao City. FLI president Lourdes Josephine Gotianun-Yap promised that the 3.4 hectare 8 Spatial Davao in Maa, Davao City will not be the last of its kind even as she renewed her commitment not only in the city, but also in the region they will continue to make more real estate projects. Yap noted the city’s accessibility, peace and order, growing market and vibrant economy as the reasons why Filinvest has a long-term plan for Davao City. “We will continue putting up similar project in Davao City to address the growing and diverse
market here,” Yap said during the ground breaking ceremony and blessing of site sales office of 8 Spatial Davao, a joint venture of Filinvest and Villa Abrille family. The multi-billion real estate sector is just among the booming industries of the vibrant city of Davao, the center of commerce in Davao region and in Mindanao. The city continues to attract local and foreign investors in light manufacturing, tourism and recreational facilities, wholesale and retail, agribusiness, power generation, health and wellness, public-private partnership projects and information communication technologybusiness process outsourcing (ICT-BPO). As the Davao City Investment Promotions (DCIPC) puts it: “Investing in Davao City is truly rewarding experience given the mix of incentives, as well as the natural and economic advantages of the city.” “Cited as one of the Top 10 Asia Cities of the Future by
the Financial Times of London magazine and consistently topping the Most Competitive Metro City in the Philippines survey, there is a wealth of reasons why you should invest in Davao Now!” DCIPC added. Among the reasons DCIPC cited that made the city a good area for investment are accessibility, Davao City as a business-friendly city, competitive cost of doing business here, efficiency of public utilities, and good weather. The city is strategically located in the east Asean (Association of Southeast Asian Nations) and BIMP-EAGA (Brunei, Indonesia, Malaysia, Philippines- East Asean Growth Area) growth polygon with regular local and international flights and shipping routes connecting the city to the rest of the world. Another reason is the good governance here. In fact, the city is the first in the country to pass an ordinance on local investment incentive
code and first to establish a local investment promotion center to the needs of the investors. “The city government is continually improving the Business Permit and Licensing System in order to be at par with the best business locations in the world,” DCIPC said. DCIPC chief Ivan C. Cortez said doing business in Davao City is cheaper compared to other major cities. Not only cheaper cost of business here is experienced by investors here but also the “pool of easily-trainable graduates and job-ready or highly-skilled English speaking professionals.” The fiscal and non-fiscal incentives given to local and foreign investors are also among the reasons that made Davao City a suitable area for business. DCIPC gives tax incen-
tives and tax holiday to new, expanding projects of enterprises, partnerships, corporations, or cooperatives with a minimum project cost of P3 million upon meeting certain qualifications and documentary requirements. A longer tax incentives are given to projects located in preferred districts, namely: Calinan, Baguio, Marilog, and Paquibato. “Investments situated in these areas may be exempted from payment of business tax for five years starting from the date of the first sale activity, and basic real property tax of real properties used in the registered business, excluding barangay
share for five years,” DCIPC said Investors have also the chance to enjoy non-fiscal incentives like data-banking services, organize one-stop shops for documentation services (building and business permits, licenses and incentive availment), facilitation of processing of local permits and licenses, referral for manpower sourcing, referral of ideal locations for certain projects based on the city’s approved zoning ordinance, investment counseling, and business matching. Indeed, Davao City is not just a place to live with, but a place to work, play and invest.
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COPING WITH POWER Davao’s growth comes with a hefty price
By ARMANDO B. FENEQUITO JR. abf@edgedavao.net
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CONOMIC growth comes with a price. In the case of Davao City, the booming economy also brings with it the problem on how to match the increasing demand for power with its current supply. Last year alone, Davao City experienced rotational brownouts to up to five hours a day in some areas just to cope with the low supply during summertime. With the onset of summer this year, the city again faces the spectre of dealing with low power supply that’s plaguing the entire Mindanao, according to Engr. Glenn Jay Reston, science research specialist II f the Department of Energy (DOE) Mindanao Office. Reston said almost 60 percent of power generation in Mindanao came from the hydro power plants that depend on the water level of the lakes and rivers. Now, the Mindanao Grid is operating a very low reserve power because of the maintenance of Unit 1 of STEAG State Power Inc.’s 105 Mega Watts (MW) Coal-fired power plant in Cagayan De Oro City. Based on the power outlook of National Grid Corporation of the Philippines (NGCP), Mindanao Grid has only 58 MW of power reserve as of March 13. Reston said if the
STEAG Unit 1 will be operational on March 16, the power generation might be normal, although it can cope with the demands with no reserve. The maintenance of STEAG Plants, Reston said, is part of the preparation to prevent the Mindanao-wide power outage last year to happen again this year. Reston, however, said that in the case of Davao City, the effect on the power outage could only be minimal because Davao Light and Power Company can always get from its embedded supply such as the Bajada Plant which can provide around 40 MW. Aside from the Bajada Plant, DLPC can also get supply from other private plants such as Hedcor’s Sibulan and Talomo hydroelectric power plants, and Therma Marine Inc. Reston said the Therma South Inc. (TSI), Coal-fired power plant of Aboitiz Power in boundary of Davao City and Sta. Cruz, Davao Del Sur is also being eyed for operational this summer. Reston said TSI will supply the grid with 150
MW which will be enough to supply the other places in Mindanao. Councilor Louie John Bonguyan, chair of the committee on energy and power, said that as of this time power supply in city is still stable after the 105 MW STEAG 2 resumed its operation last March 2. Bonguyan said that by this quarter, the operation of TSI will really give a stable power supply not just in the city but also to the whole Mindanao Grid. He added that next year the TSI will also have another
150MW plant to operate. Aside from this, the coal-fired power plants of San Miguel Consolidated Power Corporation in Malita, Davao del Sur and the Saranggani Energy Corporation will also operate next year. Bonguyan said the operation of these power plants could give power stability in Mindanao for the meantime. “It is for the meantime because we cannot say if there are more power plants will operate it does not mean that the power
supply will be sufficient since Mindanao is continuously developing,” he said. In the last decade, Davao City has seen a lot of new buildings and facilities sprout everywhere with steadily growing investments from different sectors such as the business processing and outsourcing, manufacturing, real estate and retailing. All that are indications of the growing necessity for power—a reality the city will have to contend with in order to sustain its growth.
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Davao artists seek help from gov’t, private sector By ARMANDO B. FENEQUITO JR.
A
RTISTS in Davao City VISUAL artist groups and individuals in Davao City are calling on the city government and the private sector to help them showcase their artworks. “Art is a life and wealth as far as the artist of Davao is concerned,” said Dinky Munda of Tabula Rasa Art Group during the SM Fast Fridays forum at Barrio Fiesta in SM Lanang Premier last week. Munda said the challenge for the artists in Davao is to have a place where they can display
their artworks and allow the public to see and experience their products. He bewailed the lack of support from the City Government for the art sector. The initiative of the SM Lanang Premier management of allocating them space for the Davao Art Market which started last March 9 was a big help for the artists in the city to showcase their masterpieces, according to Munda. Munda said major cities in the world such as Singapore and Hongkong or even in Manila have their
Art Festival that showcases the work of the artists. “Davao City, somehow, lacked in arts and cultural events and Davao will never be a great city if the culture and arts are disregarded,” Munda said. “There is no reason why this Art Market can only be done during Araw ng Davao, Kadayawan. Why can’t we create an event that Art Market is there all the time,” he added. The lack of venue is a problem facing the Davao Art Market because artists do not have the opportunity to display their works.
“What we need are opportunities for us to show our works because we have so many artworks but they have not been seen,” Munda said. For his part, Bong Perez said Davao City has many talented visual artists, only that there is no place for them to display their output. Like Munda, Perez wants the city to have its own art center. “Who are we if we just keep our artworks because we have no place to display them,” he said. Leaf Artist Mishael
Pueblas said through the Davao Market their works will be noticed and appreciated. Bai Manginsay, also from Tabula Rasa Art Group, said there are people who practice stereotypes in buying an artwork. He said these people will only buy the art piece if the artist is from Manila, in the process disregarding the local ones. “It is really the problem whether we like it or not. That is the situation of the market,” Manginsay said, adding that the problem lies on he lack of presenta-
tion of artworks of the artists in the local scene. He said they are now planning to institutionalize the Davao Art so that there will be a group that will help promote the arts and culture in Davao City or even in the region. Manginsay said he will propose this to Department of Tourism (DOT) 11 director Roberto P. Alabado III and make the art work their agenda for tourism. The local artists said the city government has to listen to their plight as they are also contributing to the development of Davao.
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