A FORMER director general of the National Economic and Development Authority (Neda) has advised Cebuano entrepreneurs to position businesses that will support the province’s twin-win industries—tourism and business process outsourcing (BPO).
But Dr. Cayetano Paderanga Jr., now chairman of the Institute for Development and Econometric Analysis Inc., clarified that investments in these industries do not have to be “big ticket” ones.
For small and medium entrepreneurs, he said there are “ancillary industries” that also benefit from the success of the tourism and BPO industries.
He cited as an example that tour operators can come up with tour packages that will involve many more businesses—from bus companies, spa and wellness centers to food suppliers.
“You can multiply that to many other things,” he said during his speech at the One Cebu Business Summit at the Cebu International Convention Center.
In his presentation, Paderanga said that with the growth of the tourism and BPO industries, it will also have a “spill out effect” to other industries like the banks, retail,
trade, transportation, health, and wellness and power.
However, in the case of power utilities, Paderanga admitted that the infrastructure should have come before the demand.
In the same presentation, Paderanga also identified a number of challenges that might affect the success of the tourism and BPO industries.
Threatened
He said it is possible that despite the growing tourism arrivals in Cebu, because of the global financial crisis, the buying power of foreigners is threatened.
Paderanga also referred to data from the Cebu Investment Promotions Center showing which problems Cebu stakeholders need to address, like the lack of software developers and lack of adequate infrastructure.
“Infrastructure is Cebu’s weakest point,” he said.
On the other hand, he said there are also advantages that Cebuano stakeholders can capitalize on, like the strong private and public sector partnership in Cebu.
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