Philippine Department of Tourism optimistic about ASEAN ‘open skies’ deal

2010-02-18

THE Department of Tourism (DOT) is confident that the Philippines is ready for open skies. Discussions on this agreement amongst the Association of Southeast Asian Nation (ASEAN) member countries could finally lead to the signing of the policy around April 2010.

Under the ASEAN agenda, which covers economic recovery plan until 2015, the open skies pact focuses on the liberalization of air space between member countries, including the lifting of tariffs and other add-on costs. This new agreement will allow regional air carriers to make unlimited flights among the group’s 10 capital cities. For the Philippines, this entices more airlines to land in the country, increasing flights and providing more options for passengers.

“We are taking positive steps towards the signing of the agreement, as the benefits of air space liberalization for the country signal a region-wide increase in cooperation and tourism activity,” Tourism Secretary Ace Durano noted.

The move promises to re-energize the stalled 2003 ASEAN open-skies framework, which includes phased plans for liberalizing intra-ASEAN freight and passenger air services by 2015. Industry analysts are convinced the deal also promises to boost regional tourism, trade, and aviation-related investments.

Durano added, “The sealing of this deal strengthens not only tourism but more so, economic relations between the country and our ASEAN counterparts. We see this as a welcome development, contributing to the growth of the airline industry through increased availability for more passengers.”

Growth in ASEAN neighbours

Undersecretary for Tourism Planning and Promotions Eduardo Jarque, Jr. said, “Our neighbours in the region have seen the benefits of the open skies agreement, and we hope to replicate the same success here in the country.”

Those clear economic benefits are evident in the country’s ASEAN counterparts. In Malaysia, their government decided to support a further restructuring of its domesticair services , including support for their local carriers. The success of their budget carriers has launched a veritable explosion of new low-cost carriers across the region.

On the other hand, Singapore currently has the most liberalized aviation sector in region. In recent years, air-travel-related services have contributed as much as 9.2% to the island state’s gross domestic product, a National University of Singapore report said.

In 2004, Singapore inked ASEAN’s only open-skies agreement, with Brunei and Thailand, which allowed for unlimited flights among the three countries.

These examples with Malaysia and Singapore show that other ASEAN countries could achieve similar growth.

“The liberalization of air policies in the country would help increase tourism activities within and to the Philippines, and this is always a beneficial thing as it allows for improved accessibility and more affordable flights.”

RP is ready

An increase in air traffic means a steady influx of tourists, whether domestic or foreign. Rolando Cañizal, Director of Tourism Development Planning, said, “The economic challenges have affected tourism’s flat growth the past year, but it has also allowed more time to develop new areas of interest.”

Community-based eco-adventure destinations that promote an appreciation and care for the environment were among the priorities of the Department.

“Investments in hotels, resorts, and tourism-related establishments have continually progressed from the past years, which added to the country’s capacity to host more guests,” Cañizal added.

“Our country is prepared to welcome more tourists from the ASEAN region, and this is only the beginning of an even more vibrant tourism andeconomic relations with each other,” noted Secretary Durano finally.

According to a report released by the Pacific Association of Travel Agents (PATA), air travel within Europe had increased as of 2006 by 44 million passengers, 20.2% of whom were carried by new low-cost carriers since the full implementation of the open-skies deal in the region in 1997.

Over that same period, air travel and related industries generated $85 billion in economic growth, the report said further. Industry analysts are convinced that the same scenario of growth and development can be seen in Southeast Asia with the full adaptation of the open skies pact.