DoT backs enhanced ports for cruise ships

December 23, 2015 at 16:00

THE TOURISM department is batting for the development of ocean passenger terminals to enhance the country’s ability to host cruise ships, which capture more value for the economy than mere port calls.

Ideally, he added, those same passengers could “return to Manila [at the end of the cruise] and fly back home.”

A 2,000-passenger cruise ship, calling on a port in Manila, would generate about $250,000 in revenue, while turning around a ship of the same capacity between voyages would take in about $1.2 million, the official estimated.

The Department of Tourism (DoT) expects to have welcomed about 40,000 cruise passengers by the yearend, with at least two more ships — MS Europa and Costa Atlantica — scheduled to call at certain Philippine islands. The number will likely increase to 50,000 in 2016, Mr. Bengzon said.

To tap the potential of cruise tourism, the government is looking at developing ports in strategic locations such as Manila, Puerto Princesa, Subic and Boracay.

“If we are going to upgrade or develop new ports, we must make sure they satisfy the minimum requirement for big ships,” Mr. Bengzon said, citing a recommendation under the National Cruise Tourism Development Strategy prepared for the Philippines by a group of consultants.

Asked what kept the government from addressing the infrastructure backlog earlier, the Tourism official said: “You have to look at it from the point of view of port operators and where the revenue is coming from… It is not that it was not given the priority or attention that it deserves but now you have the basic components in place, which places us in much better position.

A cruise firm based in the United States has expressed interest in investing in the Philippines. Without naming it, Mr. Bengzon said the company is considering expanding to Manila and developing a particular island.

“The demand is there. It is like you have this big playground, and the others are already playing around you and just waiting for you to be ready to accommodate,” the Tourism official said. “What we really have to work on is infrastructure and some of the legal issues — cabotage, for example, and tax issues we have to discuss with the Bureau of Customs.”

TOURIST ARRIVALS
Foreign tourist arrivals in the Philippines increased 11.13% year over year to almost 4.4 million in the 10 months to October, according to the October 2015 Visitor Receipt and Arrival Report of the DoT. Accordingly, earnings generated from tourism activity rose 8.24% to P186.89 billion in the same period.

For 2016, the Tourism department expects the number of international visitors to increase to 6 million.

The prospects for the Philippine tourism industry will depend on greater connectivity from the main gateway and secondary airports, expansion of the country’s capacity in terms of accommodation, upgrading of the quality of frontline services, Mr. Bengzon said.

“On the demand side, you have to make sure that you create a stronger awareness of the Philippines as a whole, create a greater demand for specific destinations [like] Manila, Cebu, Bohol, Boracay, Palawan, Davao, Iloilo, Siargao,” he added.

The DoT, along with its two attached agencies, will spend more than P3.6 billion next year. The agency’s approved budget for branding alone amounts to P1.1 billion.

The amount also includes P931 million for tourism advisory, P206 million for regulatory operations, P328 million for support operations and P336 million for general administrative services.