By Ehda M. Dagooc (The Freeman)
Updated January 02, 2011 12:00 AM
CEBU, Philippines - While the world is generally anticipating full recovery in 2011, Cebu on the other hand thinks that there’s nothing to “recover” from as its economy continued to stay healthy in 2010 and was barely affected by the so called “global recession.”
“I don’t think recovery is an accurate word. Cebu economy wasn’t direly affected by the global recession experienced by US and Europe. Cebu was able to manage well in protecting itself from being affected by the global recession,” said Philippine Retailers Association (PRA-Cebu) chairman Jonathan Jay P. Aldeguer.
Now that everybody is anticipating for 2011 as a gateway to the world’s recovery, Aldeguer said Cebu should be see a more dynamic economy to be led the old drivers—tourism and Business Process Outsourcing (BPO) companies.
Aldeguer said the threat is no longer the weakness of the world economy, but more the calamities and untoward incidents such as the August 2010 hostage-taking incident in Manila.
Cebu Business Club (CBC) president Gordon Alan Joseph believes that the “old drivers” will bring Cebu into an ultimate economic boom in 2011 provided that proper infrastructure will be fixed to complement the expected growth.
What is good now, Joseph said, is there is high confidence among local and foreign investors to put their money in the Philippines. Thus, 2011 is the year to be watched out for, and that the government should be active to support any private-initiated endeavors, such as making it easier for private sector to enter into infrastructure projects through the Private-Public-Partnership (PPP) program of President Benigno Aquino III.
Cebu Chamber of Commerce and Industry (CCCI) president SamuelChioson said that there is a need for government fast track the implementation of PPP, as the private sector is excited to take advantage of the opportunities in 2011 and the delay of implementation could mean loss of opportunity.
According to Chioson, the private sector in Cebu is ready to participate in the government’s PPP program, but they need the details such as on how they can avail of the incentives, tariff cuts, and others.
Chioson said capitalists need the fast implementation of the program so that they can incorporate it in their plans for the coming year.
In Cebu for instance, Chioson said the private sector is desperate to work with the government in fixing its infrastructure, in order to supplement the province’s robust growth in the next few years, otherwise, it is expected to lose its chance, if infrastructure is deteriorating.
During a recent dialogue between Aquino and Cebu businessmen, the president outlined seven priorities that his administration has identified as the ones that would have a direct effect to the economy of Central Visayas.
The seven issues and concerns raised by the sector are the appropriation of P4.404 billion infrastructure projects in Metro Cebu; the enhancement of tourism in Cebu and the region; reduction of fuel and power costs; modernization of the Mactan-Cebu International Airport, establishment of a mass transit system, realization of the Panglao international Airport; and the possibility of pursuing the linking Cebu and Bohol with a bridge.
Chioson hopes that the national government will be able to produce the complete guidelines on PPP soon, so that the private sector could also see how it can participate in the different infrastructure projects specifically in Cebu.
The CCCI president added that Cebu desperately needs more infrastructure projects to support a robust growth in the last few years.For the coming year, this is needed to support the expected growth.
Chioson pointed out that the government can start by fixing what needs to be repaired.
Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza also said that the robust growth in tourism and BPO sectors would result to a lot of employment in Cebu, but such can only happen with proper infrastructure support from government.
He said that an improvement in the roads, traffic situation, and garbage disposal are among the priorities that have to be made in terms of infrastructure to make Cebu a more attractive tourist destination.
For the BPO sector, what is most important in for Cebu to provide sufficient and capable manpower to fill the seats, said Joseph.
Economist Perry Fajardo also concurs that the tourism sector would be expected to drive the economy of the province next year.
He has noted how the growth of the tourism sector seems to be picking up and only a major calamity or crisis would derail it in 2011.
According to Fajardo as Cebu has already established its name in the world market, as preferred business and leisure destination, it is going to benefit from the recovering interest of international travelers.
“Tourists have money. Travel goes with higher income market. The world’s recovery is giving the wealthy travelers a new life,” said Fajardo, who is the dean of the Department of Economics at the University of San Carlos.
He also strongly believes in the need to complement any expected growth with proper infrastructure.
According to Fajardo the Local Government Units, should make tourism as big income generator starting next year, that’s why investment on tourism related facilities, and infrastructure should be started. —/NLQ (FREEMAN
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