Competitive Index

THE 2011 Travel & Tourism Competitive Index is out from the data of the United Nations World Tourism Organization pulled from the World Economic Forum in Davos, Switzerland.
The Philippines rank almost at tail end occupying number 94 out of the 139 participating nations in terms of competitiveness. European countries, lead by Switzerland, France and Italy occupied the top three based on various index.
In Asia, Singapore and China leads. On travel and tourism regulatory framework, we were ranked No. 98 on a scale of negative 3.7 %. On business environment and infrastructure, we improved to No. 95 or a negative of 3.2%. We got an encouraging higher rating of No. 20 or plus 5.2% on price competitiveness.
While on cultural and natural resources, we rank No. 75 at negative 3.7%. This low rating should serve as a wakeup call to the mining and mineral explorations proponents.
We did poorly on safety and security at No. 109 or negative 4.1% with the hugging headlines of kidnapping and disturbing sensational crimes aggravated by the various travel advisories issued by foreign nations.
But it was on the ground transport that we got clobbered by the traveler’s index at No. 114 or negative 2.8% which showed some weakness to the PNoy government that should have a stop gap with the appointment of Sec. Mar Roxas to the DOTC. Ground transportation does not only speak of the modes of transport but on the general conditions of moving travelers by land. This covers infrastructures like good roads and bridges and traffic management.
Perhaps on infrastructures, the government realized the folly of their actions after withholding money for various public works improvement which the Department of Budget and Management released only early January 2012.
While on traffic management, we have made slow inroads, it’s still a daily grind in Metro Manila, Cebu and Davao City.
In our native language, we call it “kalandrakas”. Many cities in the Philippines like Cagayan de Oro and Baguio City have to go to the banks to finance their Flyovers in the City which were built on national highways.
A city government taking over the road jurisdiction of the Department of Public Works and Highways? The government funds which were not available in 2011 for public works brought down our competitiveness among the lowest 20’s in the 139 nations in the world.
The government logic in releasing the budget in the 1st week of January as priming the economy with P182 Billion infrastructures for 2012 is a positive acknowledgement that in did, we lost grasp of the economy which has already gone down with an anemic growth of 3.7% compared to the higher economic growth of 7.2% in 2010.
According to Mr. Benjamin Diokno of the UP School of Economics, “the lack of public funds for infrastructure and low government expenditures last year slowed down the economy”.
NEDA officials understood that but maybe the Budget Secretary has another economic interpretation to cover up for the weakness of Malacañang? The Competitive Index showed however that there is a good indicator of priming the economy which can spark tourism growth with foreign investments welcomed to the Philippines. On Visa requirements, we rank No. 3 on good policies and regulations. Hotel price index for foreign travelers stood at No. 15 or plus 10.05% in spite of fewer hotel rooms.
We rank No. 132 of the 139 nations having low capacities for hotel density per 1,000 square kilometers. It relates to a message clearly understood by big property developers like Ayala Land, Fil-invest, SM Prime and Megaworld to bankroll development for more international standards hotels.
Ayala Land’s Kukun Hotel is scheduled to open in the 3rd quarter of 2012 in Cagayan de Oro City with two more properties at the Bonifacio Global City and at the Abreeza in Davao City. On the pillar of human resources, the Philippines stood No. 69 or 11.03% on the quality of the educational system. We were No. 46 or 11.05% on the extent of staff training due to our English literacy.
But wait until you see some shocking and arbitrary revelations that shows, we are No. 1 out of the 139 nations with” HIV” prevalence which brings a negative of 11.09% or No. 83 on business impact of HIV/Aids lowering life expectancy to the rank of No. 87 or negative 11.10%. We are low on the pillar of health and hygiene, rank No. 127 or negative 4.04% on the resurgent of tropical disease like Dengue fever, Malaria and Leptospirosis plus the inadequacy of hospital beds. Don’t cry for me Argentina, on the scale of 1 – 10, where do we stand? This is for our government policy makers and our leaders to ponder to earn their mandate.


Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.

Can the Tourism stakeholders in Cdo crack the China market

Our future tourism market is full of opportunities, with the hotel room’s expansion in the city estimated to add an estimated 700 international standard rooms at the 3rd quarter of 2012 and with a new airport middle of 2013, emerging market potential from our traditional trade partners can be expanded.
In Cagayan de Oro City, aside from our corporate and local convention market, we have the Korean arrivals which rank as our top source of foreign business followed by the Filipino Balikbayan groups that includes Filipino expatriates working or living in some western hemisphere countries outside of the United States.
According to the Asia Travel Magazine, China travel figures continue to remain the strongest growing market in the past 12 years. The Peoples Republic of China (PROC) is sending 33% of their outbound tourist to South Korea and growing by 13% annually.
The Philippines is some 6 hours away from Korea and within the travel sphere of Mainland China.
The Chinese economy which is expected to overtake the United States of America in 2020 with a per capita income of USD 3000 ending 2011 compared to the United States USD 3,340.
China has a stronger growth pattern from 2008 up to 2010 which is forecasted to surpass the US due to a higher Chinese Population of 1.3 Billion, a factor in contributing to the GDP. Gross Domestic Product is the total market of goods and services produced by a country in a specific period of time.
It is divided among the countries personal consumption, investments, net exports and government spending. China achieved a higher growth pattern through a fixed value of their currency against the US Dollar and continuously undervalued their product cheaper thus “increasing” its export to the US and to the west.
Using this statistical support, building our capacity and knowledge on how the Chinese tourists behave outside of their country including the insights of their spending habits, tourism stakeholders could launched tour programs attractive to the young and old Chinese travelers.
Strong cultural ties and family trees of rich Filipino Chinese traced their roots to the Chinese mainland. Relatives from abroad come and visit Chinese communities in the Philippines.
Travel has brought the exodus of tourist filling up the hotel rooms in Manila during the Chinese New Year. Bus loads of Hongkong tourist crowd the Chinese Temple in Cebu during February.
The gambling Casinos in Laoag, Ilocos Norte and Sta Ana, Cagayan Valley are filled to the rafters with tourist from Chinese Macau.
In the far flung Misibis Resort in the Bicol Peninsula, Chinese tourist from Fujian Province frolic in the sun. Young vacationers and honeymooners are transported by All Terrain Vehicles (ATV) for a tour at the foot of Mayon Volcano or to the Cagsawa Ruins near Legaspi City.
Tourist destinations in the Philippines have peculiar interest that could be adequately handled by the professional guides trained by the Department of Tourism.
Tour guiding can be expanded by training Taxi Drivers and transport operators on foreign languages and the value of our cultures as well as honesty in dealing with foreigners.
Packages can be developed making use of the transportation and hotel accommodations as the revenue center. The land tours, food and sports activities make up the rest of the tourist receipts.
Some resort destinations have added Spa and health care as well as extreme sports among the attractions. In Cagayan de Oro City, tourism promotions must come under one roof with joint national and local tourism initiatives above the private sector.
Setting the tones and sound guidelines through an active Promote Cdo type body with regular budgetary allocations and policy recommending authority devoid of political colors or affiliations.
Modern cities have changed their paradigms on tourism from the expensive hosting of irrelevant beauty pageant into a market oriented business linkage through overseas travels and attendance to trade fairs.
Travel and trade gatherings leads to business opportunities. Travelers’ first come as a tourist the return next visit could be a prospective investment trip. The city of Cagayan de Oro cannot stand alone as a tourist destination; it has to partner with the province of Misamis Oriental that seat on a vast field of natural attractions and a potential location for eco-tourism and industrial development.
Much more, the province of Misamis Oriental cannot attract international attention without a city as the center of business with modern communications. The lifestyles and diverse cultural background of a city adds to the interest of travel.
Aside from the “Its more fun in the Philippines “DOT slogan, government has to build a level of preparedness to benefit from the growth of China. We cannot be a continuous buyer of Chinese made products but maybe a potential trading partner throught the opening of joint ventures.
Misamis Oriental has brilliant lawmakers now seating in Congress, they have the influence over their pears with a commanding more than 1.2 Million voters to include the City of Cagayan de Oro and Gingoog City, they can make or unmake any Presidential aspirant.
Our Congressmen can propose and work for the passage of a law opening more tourism zones, they can secure more infrastructure allocations to expand the roads and improve traffic management.
They can corner more power plant investors and market our industrial estate to business locators. Nothing is impossible if they can work together. They can even built a skyway from the Laguindingan Airport up to the western gateway of the City.
When these are realized, they can join hands and before the end of their terms, welcome “Nihao” our first batch of Chinese tourists. Tourism is a magnet for more investments. The private sector will built the facilities and many will follow with the banking sector providing the needed capital. Government has to lead in a class above their own.


Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.

TRAVERSING THE TOURISM HI-WAY

DAILY our national newspapers are coming up with screaming headlines on the Scarborough Shoal standoff. It is a hot topic as if the end of the world will come in a confrontation between China and the Philippines exploding into a full blown war? Don’t ever think of war because we cannot afford it nor China will go for it inviting sanctions from the US and ruin their exports to the west.
There is no war to happen and the Philippines and China are doing the best diplomatic efforts to resolve the issues without a need for arbitration in the international court of justice regarding the laws of the seas. China is just saving face to cover up for their fisherman’s pouching activities. They will eventually withdraw when the monsoon season comes because they cannot muster enough supply for their ships 1,200 miles away and 220 miles near the Philippines. Posturing to test our resolve to depend our territory, it’s all for entertainment and face saving.
China needs the Philippines for comfort to dump their Peking ducks, DVD Players, Ma-ling and Noodle products more than what we need them. They need America for business, copy their technology and steal their military secrets faster than what America can protect them. China needs the South China Sea open as safe route for their oil coming from Iran. China knows that the Scarborough Shoals belongs to the Philippines. They are afraid to destabilize the maritime peace.
War rumor mongering only distract us from the more important economic and political issues confronting the Philippines. Our leaders should instead focus on their mandate to fast tract the peace process with the MILF and the economy. Our eyes and ears should instead be open to what the Asian Development Bank (ADB) Board of Governors Conference now going on in Manila will forecast about the economy in Asia where the Philippines plays an important demographic roles.
The Chinese economy is export driven. They created so much of the world’s products more than what they can use and dispose at a bargain price. The US and the west are huge buyers of undervalued and cheap consumer household products. From appliances, electronics, clothing’s and processed foods, the supermarkets shelves’ in America and Canada are overloaded with made in China. The trade surplus is not surprising because Asians are the number one immigrants to the US and Canada than any other countries in the western hemisphere or Latin America. Asians and even Filipino-Americans buy a lot of Chinese products traded to America. Without the west, the Chinese economy will go back to the 2nd world war level. Any trade depression will find their products rotting in many manufacturing zones in China if the west stops buying.
Before a single Filipino dies of hunger, millions of Chinese will die of starvation if their industries stops grinding for lack of fuel to process their food products and other exports. Of course, the US knows that, a reason their Pentagon wanted to establish another naval base closer to the South China Sea. In fact a brand new super aircraft carrier will soon be commissioned for Pacific tour of duties, the nuclear powered USS Ronald Reagan and one more is in the naval dockyard in the US awaiting completion reserved for a living former President. The US supply naval base in Diego Garcia somewhere in the Indian Ocean is too small and too far to handle a naval blockade in the oil route. US can not involve their forces stationed in Okinawa and Korea as it would violate their agreement with their host countries.
The Chinese are not stupid to cause a tip in the balance of peace in the South China Sea. Any conflagration with the Philippines which has a gray defense mutual treaty with America will drag the US 7th Fleet Forces out and choke China’s supply route of oil from Iran. That is what America wanted to happen, use the Philippines as a springboard to patrol the South China Sea and cut China without going into a confrontational war. It is hitting two birds in one shot; any chain reaction will diminish the capability of Iran to exchange their oil with Chinese armaments. No shot will be fired for the Philippines.
Let us not fan the situation in the Scarborough Shoal, for all we know, small countries are used as pawns for the war of the major powers. Modern warfare are not designed to conquer nations and annihilate their population but to wrist the economies and imposed dominion in trading through various sanctions. Whoever is victorious in the arm twisting has the upper hand in trade and collect the balance of payment.


Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.