Philippines, a difficult path to recovery

MANILA- Economic perspectives looked bright for the Philippines until mid October. The country was on target to achieve one of the region’s strongest GDP progressions in 2013, at around 6.5%. Long considered as the sick man of Southeast Asia, the Philippines have found back a new optimism, stimulated by growing income for the population and a surge in real estate with new projects popping all across the archipelago. And the new tourism campaign, launched two years ago – “it is more fun in the Philippines” was showing positive results on international tourist arrivals.

The Bohol earthquake from the end of October destroyed large parts of Bohol and Cebu followed less than a week ago by the devastating typhoon Haiyan. They have put in rumbles many areas, especially in the Provinces of Bohol, Cebu, Samar and Leyte. But they have also ruined 2013 forecasts and are lijely to further jeopardize Philippines’ near future. The damage from the typhoon alone is estimated to cost some US$ 14 billion in a country when its economic output reaches US$ 250 billion. Some 9.5 million people were affected by the last typhoon while deads are counted in ten thousand.

Recovery of the country might then take time, a very long time. Infrastructures have always been a weakness of the Philippines as successive governments have chronically underinvested in proper roads, ports or airports. The recent destruction of large parts of the country’s infrastructure as well as communication systems add to the misery and will isolate for many months large chunks of the country. In many villages and cities affected by the typhoon and the earthquake, electricity and water supply is not provided. Food is also rare. Many road accesses are impracticable.  The country’s main international airports are however open again to traffic with airlines resuming flights to evacuate passengers. Only Tacloban airport will remain closed for a long time as it was totally devastated last week.

Camps for survivors will be installed all across the affected regions. But the images of massive destructions and of the consequent chaos in the country will also likely affect tourism. As the situation is difficult now to assess, travel professionals can only advise people to wait and see. Airlines already have announced to rebook flights to a later point without any penalty. In a published statement, the Association of British Travel Agents resumes very well the feeling of the profession: "The extent of the damage and the affected areas is still being assessed. Tourists in the region or those intending to visit should contact their tour operators, accommodation providers or local authorities if appropriate to get the latest information. ABTA is monitoring the situation closely and will provide updates on abta.com."

Many associations such as UNWTO or PATA have called for people to continue to travel to the Philippines as it is one of the way to help local populations. But as the situation remains chaotic in Central Philippines, especially in the Visayas and with the safety at stake– a convoy of medical aid from the Red Cross has been for example attacked in the Leyte province-, tourism is certain now to drop at least for a few months. Power supply is still insufficient and fuel supply is also limited for the time being, forcing some hotels to interrupt the continual use of power generators.  Some experts estimate that the Philippines will need at least two to three years to recover. It is just to be hoped that tourism will recover more quickly. All the professionals dealing with the family have a big card to play to help to the recovery of the destination.

Sourced: TravelDailyNews