Poor intl connectivity, weak airports hinder PHL tourism growth - World Bank

BY CAI U. ORDINARIO

The country’s poor international connectivity and weak international airports were identified by the World Bank as the main constraints preventing the country from reaching its full potential as a main tourism destination in the region.

In a presentation, World Bank Philippines senior economist Eric Le Borgne said while the country has a comparative advantage in tourism, with various tourist destinations, affordability and the wide use of the English language across the country, its full potential has not been realized. 

“What we know about tourism in the Philippines is that not all its comparative advantage is realized. The number of visitors has been growing very fast as we can see, but actually represents a small share of what we see in the region. The Philippines has been lagging behind,” Le Borgne said. 

Le Borgne said there are many constraints to tourism in the Philippines but the main constraint is its poor connectivity to international destinations, like Europe and Russia. Currently, only Dutch airline KLM is offering direct flights to and from Europe. 

He added that “Russia is underserved,” since there are currently no direct flights to and from that country, from and to Manila or any of its secondary destinations, like Cebu or Davao. 

Another main constraint, Le Borgne said, is the country’s weak international airports. Last year’s downgrade of the quality of Philippine airports, he said, may have also affected recent tourist arrivals. 

Tourism Undersecretary Daniel Corpuz admitted that in terms of some airports, the country is already operating over and above its full capacity. This presents a daunting challenge in the near term due to the recent announcement of Philippine Airlines and Cebu Pacific to acquire new equipment.

Corpuz disclosed that Terminal 1 of the Ninoy Aquino International Airport (Naia) is already operating at 162-percent capacity, exceeding its utilization rate. Terminal 2, more commonly known as the Centennial Airport utilized solely by Philippine Airlines, is already operating at 119-percent capacity. 

Secondary destinations, such as the Cebu and Davao international airports, are already operating at 141 percent and 133 percent, respectively. Naia Terminal 3, on the other hand, is operating at only 62 percent of its capacity. 

“The average growth rate in terms of visible arrivals is 9 percent. We are rebounding strongly when we posted a 17-percent increase in 2009 [from estimates of 3.14 million in 2008]. However, we are partly lagging behind our friendly Asean [Association of Southeast Asian Nations] competitors. Malaysia in 2009 was the benchmark, having 29 million visitors; Thailand with over 14 [million]; Singapore more than 7 [million]; Indonesia 6 [million]; and then Vietnam overtook us with 3.9 [million],” Corpuz explained. 

However, Corpuz gave assurance that the government is already implementing various projects and programs to improve the situation. He said the government is already tapping the private sector’s help in developing airports. 
Corpuz said the construction of the Panglao airport and the Daraga airport will be done through the government’s Public-Private Partnership (PPP) initiative. The government will also submit the privatization of the Languindingan airport for PPP. 

He said the Department of Transportation has met with the Department of Public Works and Highways to set aside some $6 billion to improve road networks in specific destinations, like service roads in Boracay and the circumferential road in Bohol and Panglao.