Open-skies policy to create 1m jobs
Air travel liberalization in Subic and Clark can bring in one million more foreign tourists to the country and generate another one million jobs, said Economic Planning Secretary Romulo Neri.
Neri, who is also the director general of the National Economic and Development Authority, said the open skies policy was the right path for the air travel sector as this would result in more Asians traveling to the Philippines aboard budget airlines.
He said while there were powerful individuals resisting reforms in the air travel sector, the government would issue an executive order to implement the open skies policy.
The order will clarify the final position of the government on air travel and replace Executive Order 500-A, which restricted the entry of foreign budget airlines like Tiger Airways and Air Asia to the developmental routes of Subic and Clark.
Data shows that in 2004, the Philippines attracted only 150,000 visitors from other member-countries of the Association of Southeast Asian Nations. In comparison, Malaysia drew 12 million visitors from other Asean countries during the same year; Singapore, three million; Thailand, 2.9 million and Indonesia, 2.4 million.
Amid pressure from local airlines, the government earlier issued EO 500-A, which provided that foreign governments should officially designate international carriers to Clark and Subic first, before they can bring in passengers to the two special economic zones.
Neri said politically well-connected individuals with vested interests resisted the government’s economic reforms, particularly in the aviation sector.
Philippine Airlines, Cebu Pacific Air, Asian Spirit and other local carriers argued that there would be a lack of reciprocity if the Philippines grants foreign airlines unlimited access to the airports and passengers of Subic and Clark. They said local airlines were denied similar access by other countries mindful of the interests of their own airlines.
Subic Bay Metropolitan Authority administrator Armand Arreza hit back at those who were trying to stifle the open skies, saying this reform policy would be crucial in Subic’s and Clark’s campaign to become an international logistics hub.
“What we want to see is more open skies in Subic and Clark. Tourism is growing right now. Why do they want to restrict it?” he said.
Secretary Edgardo Pamintuan, chairman of Subic-Clark Alliance for Development, said the two economic zones were the best bet of the country for economic development.
“The United States now considers Subic and Clark as the gateway to Asia-Pacific,” Pamintuan said.
SBMA deputy administrator Ferdinand Hernandez said the policy would help Subic regain its position as a one-stop tourist destination.
Resort owners and hotel operators in Subic also pushed for the open skies policy, saying this would facilitate the movement of dollar-spending foreign visitors to the Philippines.
George Lorenzana, chairman of the White Rock Resort Hotel in Subic, said the respective private sector-led visitors bureaus of Subic and Clark had recently passed a resolution asking the government to implement the open skies policy soon.
Air travel services is one of the 11 priority sectors that the Association of Southeast Asian Nations is set to liberalize starting January 2007.
By Roderick T. dela Cruz - Manila Standard Today
Neri, who is also the director general of the National Economic and Development Authority, said the open skies policy was the right path for the air travel sector as this would result in more Asians traveling to the Philippines aboard budget airlines.
He said while there were powerful individuals resisting reforms in the air travel sector, the government would issue an executive order to implement the open skies policy.
The order will clarify the final position of the government on air travel and replace Executive Order 500-A, which restricted the entry of foreign budget airlines like Tiger Airways and Air Asia to the developmental routes of Subic and Clark.
Data shows that in 2004, the Philippines attracted only 150,000 visitors from other member-countries of the Association of Southeast Asian Nations. In comparison, Malaysia drew 12 million visitors from other Asean countries during the same year; Singapore, three million; Thailand, 2.9 million and Indonesia, 2.4 million.
Amid pressure from local airlines, the government earlier issued EO 500-A, which provided that foreign governments should officially designate international carriers to Clark and Subic first, before they can bring in passengers to the two special economic zones.
Neri said politically well-connected individuals with vested interests resisted the government’s economic reforms, particularly in the aviation sector.
Philippine Airlines, Cebu Pacific Air, Asian Spirit and other local carriers argued that there would be a lack of reciprocity if the Philippines grants foreign airlines unlimited access to the airports and passengers of Subic and Clark. They said local airlines were denied similar access by other countries mindful of the interests of their own airlines.
Subic Bay Metropolitan Authority administrator Armand Arreza hit back at those who were trying to stifle the open skies, saying this reform policy would be crucial in Subic’s and Clark’s campaign to become an international logistics hub.
“What we want to see is more open skies in Subic and Clark. Tourism is growing right now. Why do they want to restrict it?” he said.
Secretary Edgardo Pamintuan, chairman of Subic-Clark Alliance for Development, said the two economic zones were the best bet of the country for economic development.
“The United States now considers Subic and Clark as the gateway to Asia-Pacific,” Pamintuan said.
SBMA deputy administrator Ferdinand Hernandez said the policy would help Subic regain its position as a one-stop tourist destination.
Resort owners and hotel operators in Subic also pushed for the open skies policy, saying this would facilitate the movement of dollar-spending foreign visitors to the Philippines.
George Lorenzana, chairman of the White Rock Resort Hotel in Subic, said the respective private sector-led visitors bureaus of Subic and Clark had recently passed a resolution asking the government to implement the open skies policy soon.
Air travel services is one of the 11 priority sectors that the Association of Southeast Asian Nations is set to liberalize starting January 2007.
By Roderick T. dela Cruz - Manila Standard Today
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