Philippine Economic Briefing: Private Sector Recommendations

SPEAKER

RECOMMENDATIONS

Aileen Clemente

President, Philippine Travel Agencies Association

·         Review the Rationalization of Fiscal Incentives bill: correctness of incentives and ability to provide more if necessary.

·         There are still no revenue regulation tax incentives for tourism economic zones as stated in the Tourism Act of 2009.

·         Correct the Common Carriers Tax/ Gross Philippine Billings.

·         Government should pay for the overtime of Customs, Immigration, and Quarantine.

·         Make the Immigration Act and Passport Act relevant. These have not been changed since they were promulgated in the 1960s.

·         The National Tourism Development Plan assigns 1 tourist = 1 job. In other countries, 1 tourist = 4 jobs.

·         Make obtaining visas to visit the Philippines easier.  

·         Secure automated data sharing among government agencies to provide process improvements at airports, in visa procurement, in tourism investments, etc.

·         There has to be a paradigm shift on how to view tourism. Tourism is not about promotion alone. It requires good infrastructure development and connectivity.

·         We cannot merely have lip service. The key driver is having intuitive laws, regulations, and policies.

·         There is a need to coordinate various government agencies.

·         Campaign to attract not only leisure tourists but business tourists as well.

·         Provide better and seamless customer experience to our tourists – improve and make out airports more efficient.  

Ferdinand Constantino

CFO, San Miguel Corporation

·         Improve infrastructure, the stumbling block of the Philippines in attracting foreign investment.

Nicolaas De Lange

Vice President and Corporate Secretary, Chamber of Furniture Industries

·         Three factors to improve: 1) marketing/branding, 2) quality materials, and 3) craftsmanship and technology.

·         Support international shows which are now integrated with CITEM.

·         Support efforts by industry to market to countries/ branding.

·         Build brands based on green approach by: a) having access to sustainable raw materials and remove the moratorium on logging (EO 23); and b) reduce red tape in importing materials (DAO 99-46) and duties.

·         Maximize benefits from free trade agreements by: a) selling more to Asian neighbors than US and Europe; and b) look into agreements re tariffs.

·         Link up furniture and furnishings/décor industries with the tourism industry. Include furniture bought by hotel and resort investor in BOI incentive package to encourage buying locally and not having to import.

·         Get DOST to help add technology to the industry to complement the craftsmanship.

·         Bring more FDI into the industry.

·         Review labor laws to address issues of productivity and cost.

·         Address inter-island shipping rates.

·         Get the industry involved in the effort to stop smuggling.

John Eric Francia

Managing Director, Ayala Corporation

·         PPP should take off this year. DOTC should launch major projects.

·         Government should provide guidance and be open to unsolicited bids to expedite projects. Inform the private sector under which circumstances will unsolicited projects be accepted.  

·         Government should strike a balance between hybrid models of PPP and ODA. Government should consider risks such as timing and completion of projects as well as complexity of project execution.

Eduardo Francisco

President/Director, Management Association of the Philippines

·         Government should take steps to ensure that the English speaking ability of Filipinos does not continue to deteriorate.

·         Check the tourism goal for 2012 (in the BSP presentation). From 3.9 million visitors in 2011 to the 4.2 million goal of DOT in 2012 is only an eight percent increase.

Lance Gokongwei

President and CFO, JG Summit Holdings, Inc.

·         Single biggest challenge is infrastructure. Provide better infrastructure.

·         Further improve access and operations of Philippine airports.

·         Resolve the FAA Category 2 downgrade of CAAP.

·         Develop the Philippines as a center for pilot training in Asia.

Stephen Groff

Vice President, Asian Development Bank

·         Philippines should pay attention to boosting its manufacturing sector.

·         Inadequate infrastructure impedes the country’s development. Greater investment in infrastructure is critical to create jobs, improve health access, and education services.

Maulik Parekh

President and CEO, SPi Global

·         Look at incentives in relative terms with competing countries such as China, India, and Latin American countries.

·         Increase marketing through more road shows, video ads, etc.

·         Government should continue pursuing its good governance policy.

·         Pass the DICT bill. Continue support and strengthen the Data Privacy and Cybercrime bills.

·         Continue support from TESDA, CHED, and other agencies but tweak approach by focusing on the voice and non-voice aspect.

·         Promote the BPO industry as a career of choice so workers will no longer leave the country.