A country resilient in troubled times
According to a recent article in the Philippines Inquirer, Filipinos are in an excellent position to survive and grow out of the global economic crisis.
The paper reports: “Fundamentally our economy is resilient, borne by a spirit of self-empowerment and resourcefulness. We are in a place where people find ways to get by and even prosper.”
The same newspaper ran a front page story on the Forbes billionaire list, showing that while Buffet and Gates remain high up on the list, notable Philippine billionaires Henry Sy and Lucio Tan, who have fortunes rising, are catching up.
No longer is it gloom and doom in headlines from the Philippines. In fact, it is quite the opposite. While the gloom and doom dominate headlines in the Western world, Asia and the Philippines in particular are showing resilience in facing the global economic turmoil.
The government is focused on strengthening the economy. Undersecretary of Trade and Industry Elmer Hernandez says, “Although the Philippines is not insulated from the global economic turmoil (no one is), the country may be in a better position than most of its neighbors to weather the storm.”
One reason frequently cited for this position is that the country is less dependent on exports, unlike for some other countries such as Japan and Korea.
“The Philippines has a large domestic market, which will sustain the economy for at least the next 12-18 months, until we see improved global conditions,” the undersecretary notes.
The growth in overseas Filipino workers’ remittances will also remain steady since most of them continue working in service industries, a sector which has been less affected than manufacturing.
Hernandez remains optimistic on global outsourcing as a major source of revenue for the Philippines as American and European companies look at ways of cost cutting and outsource to other countries. The Philippines is a major hub for the BPO (business process outsourcing) industry.
One of the major hubs for the BPO industry is the island of Cebu, more known for its stunning natural beauty and beaches than for industrial development. Cebu has become one of the fastest growing regions of the Philippines. Centrally located at the heart of the Philippine archipelago, Cebu’s international airport has direct connections to anywhere in the Philippines as well as to most Southeast Asian capitals such as Singapore, Hong Kong and Kuala Lumpur.
Cebu’s growth rate for the past five years has averaged close to 20 percent higher than the rest of the country. Emphasis is placed on education and human capital, and the skilled labor force is provided by Cebu’s nine universities and 35 colleges that specialize in the information technology sector. The university population is over 200,000. Yearly graduates number about ten percent (20,000) in various disciplines, providing a labor pool for information technology projects, call centers and BPOs. Convergys and Sykes Asia are only two of a growing list of call centers that operate in Cebu.
The tourism sector is growing and the island is dotted with upscale resorts that attract tourists from all over the world. Shangri La Hotels and Resorts dominates the adjacent Mactan Island with their five star property located on one of the best beaches on the northeast corner. Part of the enticing package that Shangri La offers is the world renowned Chi Spa.
In traditional Asian philosophy, “chi” is the universal life force that governs well-being and personal vitality. For people to maintain good health, it is believed that “chi” must flow freely within the body.
After a session at Chi Spa, the rejuvenation factor will quickly kick in.
Shangri La Hotels and Resorts have just recently opened a new five-star property on the adjacent island of Boracy, a short hop by plane from Cebu or Manila.
Perhaps one of the most ambitious projects to date is the transformation of the entire landscape of Manila Bay through a multibillion dollar cutting edge entertainment resort known as “Entertainment City.”
The development’s cutting-edge designs will transform the capital’s skyline and propel Manila into a world class tourist destination through a combined offer of shopping, entertainment, gaming and leisure outlets. The driving force behind the project is Efraim Genuino, the chairman and CEO of PAGCOR, the state owned Philippine Amusement and Gaming Corporation.
According to Genuino: “Big investments mean big returns, and for the Philippines to recover economically, we need to develop tourism. Once we do, industrialization will follow.” Genuino believes that with Entertainment City and the additional developments, the Philippines should be able to attract 10 million tourists in the next five years.
