Beijing issued its travel advisory after a Chinese teenager who worked in a family-run store in Zamboanga Sibugay was kidnapped and in the face of a plot confirmed by police by criminal groups to attack the Chinese embassy and companies.
“We expect that there will be cancellation of flights,” Benito C. Bengzon, Jr., Department of Tourism (DoT) assistant secretary for International Tourism Promotions, said in a telephone interview yesterday.
“It is too early to tell if our targeted 5 million foreign tourists by the end of 2014 will not be met due to the advisory because we are still consolidating reports from offices abroad, but other markets like Korea, America and Japan are performing well.”
DoT data show foreign visitor arrivals hit 4.68 million last year, up 9.56% from 2012’s 4.27 million. Visitors from China made up the fourth-biggest group by yearend with a 9.1% share at 426,352, up 69.9% from 2012’s 250,883.
“We are looking at new geographic markets like Europe and other Southeast Asian countries, so I think... the [expected] decrease in Chinese visitors due to the advisory... will be compensated,” Mr. Bengzon said.
He added his department had been assured by the national police “that the situation is under control” and has “also asked our offices in China to continue with marketing and promoting the Philippines...”
Latest available DoT data show foreign visitor arrivals edging up 2.22% to 2.433 million last semester from 2.381 million in the same six months last year.
Tourists from China made up the third-largest segment in the first half after South Korea (547,971 visitors) and the United States (389,432), amounting to 226,163 and making up 9.29% of the total.
But while Chinese arrivals were up 13.56% annually, this was a slowdown from the 42.99% year-on-year growth to a preliminary 150,749 total in 2013’s first half.
China’s official advisory and its expected repercussion come amid simmering maritime tensions in the South China Sea, and in the wake of a separate warning last month by the South Korean embassy in Manila of possible impact to investments of a perceived rise in crime against Koreans in the Philippines as of July.
To be sure, Koreans still made up bulk of foreign visitor arrivals last semester at 22.52%, but a graph with the DoT data bared a drop in volume year on year. Official data in the same period last year put the total for these nationals at a preliminary 474,685, 22.13% of the total and up 10.5% from the same six months in 2012.
“With the travel advisory issued by China, the Chinese market will likely rank as no. 4 when it comes to top tourist markets, with Korea being the first, followed by the US and Japan,” John Paul M. Cabalza, president of the Philippine Travel Agencies Association, said in a telephone interview.
“Due to cancellation of flights, then most probably there will be a decrease in foreign tourist arrivals. In effect, resorts and hotels -- which are the end suppliers -- will be gravely affected because if they are starting to cancel their flights to Manila, then they will be cancelling hotel rooms [reservation].”
Airlines flying between the Philippines and China have also begun to hurt.
Juan Lorenzo T. Tañada, vice-president for Corporate Affairs of listed Cebu Pacific operator Cebu Air, Inc., said in a text message yesterday: “Cebu Pacific and Tigerair cancelled all 149 charter flights to and from Mainland China.”
“These charter flights were scheduled from September to December 2014. Total number of passengers in these cancelled charter flights is estimated at about 24,138 passengers,” Mr. Tañada said.
“We estimate impact on tourism revenue would be about P284 million, assuming tourists were to stay four days in the Philippines and spend an average of $66 per day.”
He clarified that Cebu Pacific continues to operate scheduled commercial flights to and from Mainland China.
“It’s hurting our business very much; we’re hoping it can be resolved soon. The problem will be with organized tour groups, which are also a big part of our revenue stream,” Marianne B. Hontiveros, chief executive officer of Philippines Air Asia, Inc., said on the sidelines of a forum in Pasay City yesterday.
AirAsia Zest on Tuesday said it has suspended services between Kalibo, Aklan, on the one hand and Shanghai and Beijing on the other, effective Sept. 18.
“I think the individual citizens are still interested to travel here, but the tour operators of course will follow the advisory. You can’t blame them,” Ms. Hontiveros said.
“The cancellations will come from the tour groups. So, that’s going to hurt us.”
source: Businessworld
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