JFC Statement in Support of Aquino Administration Policy on Civil Aviation Liberalization
May 10, 2011 at 07:07
We wish to extend full support for President Aquino’s visionary leadership on civil aviation embodied in Executive Order 29. The policy allows market forces todetermine supply and demand of seats to secondary gateways throughout the country.With this new policy, the administration has taken a giant step towards its goal ofdoubling annual tourist arrivals to more than six million by 2016. As in other areas,President Aquino is implementing his statement last September 23, 2010 in his speech atthe Council of Foreign Relations in New York: “Ladies and Gentlemen, I came here todeclare that the Philippines is open for business under new management.”
It is estimated that every foreign tourist who visits the Philippines infuses anaverage of one thousand dollars, creating one direct or indirect job for a Filipino in thetourism service industry. Many of these jobs are in rural areas and less-developedprovinces. With the landmark policy established by EO 29, more foreign airlines – as well aslocal airlines – can be expected to begin direct air service from cities around Asia to citiesthroughout the Philippines. We understand the government is assigning increased priority to theimprovement of airport facilities and other infrastructure at secondary gateways inexpectation of increases in tourist arrivals. We also understand DOTC, DOT, DPWH,DEPED, and TESDA are coordinating their programs to develop the needed facilities,training, and promotion at priority tourist destinations. Hotels, restaurants, shops, andfarms to support the additional tourists will also require new investment, creatingadditional business opportunities for local businesses at these destinations. Another barrier to fully develop the potential of the tourism industry, theCommon Carriers’ Tax and the Gross Philippine Billings Tax, should be removed as soonas possible, to unleash the creativity and dynamism of the private sector. Continuation ofthese taxes risks losing some of the present international air services into the country, aswell as deterring new ones, and departs from standard international practice. With these proactive reforms of the Aquino Administration, we can look forwardto continued rapid expansion of the aviation market in the Philippines, more competitivepricing and better service, and new routes to drive tourism, investment and employment. March 22, 2011
