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SEA Games boosts C. Luzon’s tourism, economy in 2019

By Zorayda Tecson

December 26, 2019, 8:04 pm

CITY OF SAN FERNANDO, Pampanga -- Central Luzon’s staging of the 30th Southeast Asian (SEA) Games helped boost the region’s tourism and economic growth.

Amid the mild domestic challenges that Central Luzon experienced in the past months, the holding of various sporting events in several areas in the region spiked the regional economy in the fourth quarter of the year.

With more than 12,000 athletes and other members of the SEA Games delegation, as well as other local and foreign tourists who watched the events, the region experienced an economic boost, making it one of the core regions contributing to the overall growth of the country.

Agriculture

Central Luzon experienced a slowdown in the agricultural sector following the effects on farmers of the Rice Tariffication Law and the entry of African swine fever (ASF) into the country.

However, concerned government agencies spearheaded by the Department of Agriculture (DA), as well as local government units (LGUs), have put up various measures to mitigate the ASF’s adverse impact on the region’s agriculture sector.

During the remaining months of the year, Central Luzon farmers started to feel the benefits of the PHP10-billion fund allocated for them under Republic Act 11203, or the Rice Tariffication Law.

Out of the fund, PHP5 billion was allotted to farm mechanization; PHP3 billion to seed distribution; and PHP1 billion to expanded rice credit assistance.

On top of the Rice Competitiveness Enhancement Fund (RCEF), the DA also launched the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid) in Nueva Ecija to provide loan assistance for immediate relief to rice farmers affected by the impact of low palay prices as a result of the Rice Tariffication Law.

The government, through the Land Bank of the Philippines and the Development Bank of the Philippines, has also started releasing the cash grant through the Rice Farmer Financial Assistance (RFFA) Program.

“We understand the plight of our rice farmers, particularly the marginal ones who are experiencing the challenge of a liberalized rice trade,” Agriculture Secretary William Dar said during the launch of the RFFA program in Nueva Ecija last December 23.

The National Food Authority (NFA) has also purchased PHP3 billion worth of palay from Central Luzon farmers for a competitive price of PHP19 per kg.

Meanwhile, LGUs have also implemented ways to help cushion the effects of the Rice Tariffication Law.

In Nueva Ecija, a multi-agency food council was created by the provincial government. With an initial fund of some PHP400 million, the council procured palay from local farmers at a price higher than the prevailing rate in private trading.

To address the ASF concerns, some LGUs in Central Luzon imposed a ban on pork and meat products from areas where the hog virus has been detected.

The Bureau of Animal Industry has also started deploying sentinel pigs to disinfected areas in the region to test the possible re-occurrence of ASF.

Tourism

A spike in tourist volume in Central Luzon this year was noted due to improved infrastructures under the government’s “Build, Build, Build” program.

Among the high-impact projects are the New Clark City, which houses the world-class sports facilities used during the Philippines’ hosting of the 30th SEA Games, and the Clark International Airport that is envisioned to be a major global gateway.

The modernization of the Clark International Airport will pave the way for improved and easier travel to and from the Central Luzon provinces, which is a come-on for businessmen and tourists.

Data from the regional office of the Department of Tourism showed 2.4 million tourist arrivals, both domestic and international, via the existing Clark airport, during the first seven months of the year.

With the opening of the new terminal by next year, some 12 million passengers per year are expected to arrive via Clark airport.

The country’s hosting of the 30th SEA Games also gave a big boost to the tourism industry in the region, particularly the Clark Freeport and Subic Freeport, which hosted some sporting events.

Increased tourist arrivals in Subic due to its cruise tourism program were also noted in 2019.

From January to October, 15 cruise ship arrivals in Subic generated 38,985 visitors and an income of PHP8.07 million.

SBMA chairman and administrator Wilma Eisma said the Subic agency has already listed 38 confirmed cruise ship arrivals and two tentative bookings next year.

“These arrivals will serve to provide additional income to the Subic community, as well as neighboring areas that cruise passengers visit upon arrival in Subic," Eisma said.

Investments and job generation

The growing economy of the region was also boosted by the good performance of the three freeports in the region -- Subic, Clark and the Freeport Area of Bataan (FAB).

Steady growth in investments in the first half of the year has increased the number of workers in Subic Freeport to 135,224 despite the closure in January of what used to be the single biggest employer in the past 10 years, the Hanjin shipyard.

Figures from the Subic Bay Metropolitan Authority (SBMA) indicated a slight increase in this year’s first-half employment figure of 135,224 over the 133,940 recorded in the same period last year.

“We’re back to more than 135,000 active workers now, which is just a shade lower than our 2018 yearend record of 135,690. But by the end of this year, we are confident that we would again break this 2018 employment record,” Eisma said.

Meanwhile, the SBMA has approved new investment projects worth PHP4.48 billion in the first half of the year, eclipsing by 42 percent last year’s new investment record of PHP3.15 billion for the same period.

Likewise, investments in Clark Freeport are increasing with 54 new locators and an additional workforce of 5,295 in the first seven months of the year.

As a result, Clark now has a total of 1,092 locators from 1,038 companies. The number of workers here also grew to a total of 128,268 as of the first semester of 2019 from 122,973 employees last year.

Clark Freeport has also been cited as "sports tourism destination of the year” by the Philippine Sports Tourism Awards (PSTA) for hosting more than 200 events since last year that included fun runs, marathons, triathlons, duathlons, games such as football and baseball, cycling and other sports-related activities.

Aside from this, Clark is also a preferred destination for Meetings, Incentives, Conferences, and Exhibits (MICE).

The FAB, on the other hand, has recorded a new high in terms of the number of direct workers, which is projected to reach 46,000 by the end of the year.

As of October 2019, the number grew to 45,020 compared to 12,777 when FAB took over from the Bataan Economic Zone in 2010.

“We are proud of the rate of regularization in employment going on in FAB enterprises. From about 5,000 regular workers in 2010, there are now 26,760 regulars or 57 percent of the present total number of workers,” FAB chairman Emmanuel Pineda said.

Economic outlook for 2020

The year 2020 is seen to be another good year for Central Luzon’s economy.

The continuous implementation of massive infrastructure projects in the region is expected to stimulate business activities in the region.

Tarlac Governor and Central Luzon Growth Corridor Foundation, Inc. (CLGCFI) president Susan Yap said that with its strategic location as the gateway to Asia, accessibility to three international airports, expanding infrastructure facilities, and the highly-anticipated full development of the New Clark City, Central Luzon is strengthening its position as one of the most dynamic investment destinations in the country.

“We believe that the Central Luzon, as the third biggest region in the country in terms of population, has the most potential and untapped resources. Thus, we continuously seek new platforms to showcase this vast potential of our region for development,” she said. (PNA)

 

 

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