Manila (Philippine Daily Inquirer/ANN) - The Philippine government will further liberalize the civil aviation industry to increase tourist arrivals, President Benigno Aquino III has said.
"We will pursue the full implementation of Executive Order No. 219 (the liberalization of the air travel industry) in international aviation," Mr. Aquino said at the opening of the public-private partnerships and infrastructure summit.
In his keynote speech before foreign and local business leaders, he said: "Our national development requires promoting an open and competitive international aviation sector that enables Philippine and foreign air carriers to expand their operations, maintain a strong Philippine-based aviation industry, and ensure international connectivity in order to allow Philippine and foreign air carriers to plan and make long-term investments in the Philippine market."
Sought for comment during a break, Mr. Aquino indicated that the liberalization would be done gradually.
"I think we will start with what is called pocket open skies. Then we will really strengthen and increase it. The bottom line is we see a bridge that can bring many more tourists to our country and an increase in the opportunity to use air services like air cargo," he told reporters.
The President said the government had already liberalized telecommunications, trade and foreign investments.
"The change in the country's investment policies has been a crucial factor in building up confidence in the economic prospects of the country. This is what we will do with aviation," he said.
Rebrand country
Despite its beautiful beaches and many other attractions, the Philippines attracts only 3 million tourists a year, while Malaysia and Thailand have more than 14 million a year, he said.
"Needless to say the potential is significant. To tap this potential, we are embarking on a new campaign to rebrand the country as a tourist destination. We are also reviving our tourist police to deal with visitors' concerns," Mr. Aquino said.
"And if that is not enough, we are also rationalizing our network of airports around the country, by expanding runway and terminal capacities in areas that we see as potential tourist hubs," he added.
The President said his administration recognized the importance of international aviation as a major driver of economic progress and a leading catalyst of tourism, trade development and employment generation.
"Aviation moves 98 percent of international visitors, 54 percent of Philippine export value and more than 1 million overseas Filipino workers per year," he said.
He said EO 219 provided the framework for liberalizing the country's air policy as early as 1995.
"The impact of this measure has been dramatic in the domestic passenger market as passengers have enjoyed a wider range of choices and travel opportunities," Mr. Aquino said.
More jobs
"Additionally, it will also enable more aviation and tourism-related jobs through the increase in local tourism, trade and investment. What remains to be done is putting teeth to existing policy," he said.
The liberalization has allowed the entry of low-budget carriers like Cebu Pacific, now the country's biggest airline by number of passengers, displacing flag carrier Philippine Airlines.
PAL supported the government's plan to fast-track the liberalization of the country's aviation sector and opening up more airports to foreign airlines.
"We welcome the President's vision to promote a competitive international aviation sector anchored on a strong Philippine-based aviation industry, which we firmly believe is indispensable to the development of Philippine tourism, trade and economic progress," PAL president and chief operating officer Jaime J. Bautista said in a statement.
The company said it would continue to work in partnership with government to attract more foreign visitors from both existing and new markets overseas.
Reciprocity
PAL's position does not oppose any liberalization in air rights, which would lead to tougher competition. However, PAL has stressed the need for reciprocity, which means that any country allowed to fly to the Philippines must return the favor.
"PAL has always led the way in promoting Philippine tourism, by being the most aggressive airline in pioneering new routes, serving key tourism markets, and making necessary investments to put the Philippines on the tourism map as a destination for the world," Bautista said.
Cebu Pacific could not be reached for comment as of press time, but its president and CEO Lance Gokongwei had said in previous interviews the airline welcomed the liberalization of the air industry.
Like PAL, Cebu Pacific also stressed the need for other countries to also open up their skies so as not to put local carriers at a disadvantage.
