PHL airport investors warned vs optimistic traffic forecasts — CAPA
By Denise A. Valdez
INVESTORS in new international airports in the Philippines could encounter difficulty realizing “ambitious traffic projections” for certain destinations, as international traffic remains focused on Manila, Cebu and Boracay, the Center for Asia Pacific Aviation (CAPA) said.
In a research report, the Australia-based aviation think tank said government efforts to direct international visitors to other destinations have not yet produced results.
“The Philippines has several islands with huge growth potential, but historically most overseas tourists have focused on Boracay, Cebu and Manila. Other destinations such as Bohol, Cagayan De Oro, Palawan and Siargao have attracted domestic tourists, but accessibility issues have limited international traffic,” it said.
It added: “A large proportion of foreign tourists that were intending to travel to Boracay during the closure period have decided to holiday in other countries because most of the existing alternative destinations have limited capacity — both in terms of flights and hotel rooms.”
The Philippines is targeting tourist arrivals of 7.4 million in 2018, which Tourism Secretary Bernadette Romulo-Puyat is confident of achieving.
“To meet this goal the Philippines needs to persuade approximately a half million visitors that would have gone to Boracay to try out other destinations in the Philippines,” it said.
The growth of regional international airports is intended to decongest the Manila gateway, CAPA said. One of the government’s airport projects, the New Bohol (Panglao) International Airport which is set to open in August, is expected to make the island the “next Boracay.”
The country’s major airlines — Cebu Pacific, Philippines Airlines and AirAsia — are expected to boost their presence in Bohol. International flights to South Korea and China are among the destinations expected to originate from the airport.
But CAPA said its growth may not be as fast as expected, as it will “take time for the new airport on Panglao to ramp up and attract flights.”
It noted that despite having seven international airports, Ninoy Aquino International Airport (NAIA) and Mactan-Cebu International Airport (MCIA) continue to take up 90% of international seat capacity in the Philippines.
“As the new airport is opening only two months before Boracay reopens it will not likely benefit much from the closure of Boracay, which has impacted traffic at Caticlan and Kalibo airports,” CAPA said in the report.
“Potential investors in the Bohol International Airport and other new international airport projects may be wary that the ambitious traffic projections may not materialize,” it added.