Investments
Half Empty, Half Full
In the first half of 2006, the cost of investment projects approved by the Board of Investments and the Philippine Economic Zone Authority went down by 21%. From P127 billion a year ago, the total project cost this year reached P100.2 billion only.
But this decline should not be a matter of great concern in the meantime. The number of projects did rise 25% to 331 from 265 and the projected number of workers that will be employed increased to 63,260 from 44,266.
WHO ARE BULLISH?
BOI- and PEZA-approved investments in
the first semester |
| |
2005 |
2006
|
| Project cost |
127.2 |
100.2 |
| Foreign investments |
43 |
43.8 |
| American |
3.9 |
23 |
| Japanese |
17.2 |
7.6 |
| Dutch |
7 |
6.4 |
| Singaporean |
0.1 |
3.6 |
| South Korean |
9.7 |
0.8 |
| Local Investments |
84.2 |
56.4 |
| Sources: Board of Investments, Philippine Economic Zone Authority |
|
By sector, infrastructure and industrial projects accounted for the largest share of investments, amounting to P41.7 billion, followed by the wholesale and retail trade at P26.0 billion and manufacturing at P17.8 billion.
Investments in real estate, renting, and business activities surged 200% to P7.5 billion from P2.5 billion a year ago. Investments in IT services also rose 50% to P4.7 billion from P3.1 billion. However, investments in mining and quarrying contracted 86% to P77.8 million from P573.2 million.
In terms of nationality, the Americans, Japanese, Dutch, and Singaporeans emerged as the top investors in the first half, contributing P23.0 billion, P7.6 billion, P6.4 billion, and P3.6 billion, respectively.
Medical Tourism
Health Is Wealth
If the country plays its cards right, the economy should soon be able to bank on medical tourism to make substantial contributions to overall dollar revenues.
GRAY MARKET
Other countries’ senior citizens are being eyed as a market for the Philippines’ health and wellness industry |
| Country |
Citizens 65 Years
and Over (in millions) |
% of
Total Population |
| U.S. |
36.3 |
12.4 |
| Japan |
24.2 |
19.0 |
| Germany |
15.1 |
18.3 |
| Italy |
11.1 |
19.1 |
| U.K. |
9.9 |
16.4 |
| France |
9.4 |
15.7 |
| Spain |
7.1 |
17.6 |
| Canada |
4.2 |
13.0 |
| Australia |
2.5 |
12.8 |
| Belgium |
1.8 |
17.3 |
| Sweden |
1.6 |
17.3 |
| Austria |
1.3 |
16.0 |
| Switzerland |
1.1 |
15.3 |
| Norway |
0.7 |
14.8 |
| Source: U.S. Census Bureau |
|
Last year, tourism revenues contributed almost 5% to the GDP and created 2.6 million jobs. Around 2.6 million tourists brought in US$2.1 billion into the local economy, a good portion of which was spent for medical and physical fitness–related activities.
This year, the Department of Tourism has raised the bar higher with a target to bring in at least three million tourists. Aside from promoting the country’s white beaches, rich cultural heritage, diverse flora and fauna, and shopping destinations, the DOT is positioning health and wellness as another primary tourist attraction. The campaign covers medical tourism, retirement and care giving, and wellness tourism.
According to the World Tourism Organization and national tourism organizations, of the 120 million travelers who go to Asia, 1.4 million avail of medical services. The aging population of other countries is a good market for the Philippine health and wellness industry. According to the U.S. Census Bureau, there are 126.4 million people aged 65 and above in First World countries. The country’s caring and hospitable culture should be able to attract a portion of this market. However, the Philippines needs to first improve its public and private insurance portability, upgrade healthcare and retirement facilities, and gain international accreditation for its hospitals to boost its marketability.
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