Numbers Don’t Lie
By Andrew J. Masigan
Expectations could not be higher for newly confirmed Secretary of the Department of Tourism, Bernadette “Berna” Romulo-Puyat. Following Wanda Teo who used her position as a piggy bank for the entire Tulfo clan, the public now demands a sensible, no nonsense tourism program.
The stakes could not be higher. Apart from the fact that 2.22 million Filipinos depend on the tourism industry for their livelihood, tourism revenues are now an important contributor to help minimize our widening current account deficit.
The Aquino administration did a splendid job in developing the country’s tourism industry.
From a minor cog in the economy, it has become a major contributor to gross domestic product. Under the baton of former Secretary Mon Jimenez, foreign tourist arrivals expanded from just 3.5 million visitors in 2010 to 6 million visitors in 2016. Even local tourism flourished with some 66 million Filipinos travelling across our islands. Tourism revenues increased from just $2.5 billion in 2010 to $5.6 billion six years after.
Secretary Berna must supersede the performance of former Secretary Jimenez for the Duterte administration to claim that it performed better then its yellow predecessor. Talk about a job cut out for her.
Last week, I had the privilege to have lunch with Secretary Berna along with colleagues from the Bulong Pulungan group. I have known of Secretary Berna since high school as we have many friends in common. However, this was the first time I was able to have an earnest conversation with her.
As first impressions go, I was fairly impressed with her disposition. Apart from having the beauty and charm befitting a tourism marketer, I found her to be articulate, pragmatic, and focused. She clearly understands the principles of branding and the importance of infrastructure in tourism development. As a government worker, she has thrived at the Department of Agriculture for 12 years, so its safe to say that she knows how to navigate the bureaucracy to get things done.
From what I gather, at the heart of Secretary Berna’s agenda is sustainable and responsible tourism. In other words, creating a vibrant tourism industry without damaging the environment and its heritage sites. Also, to minimize tourism’s social costs like prostitution, gambling, and drug use.
In her short discourse, she promised to work with local government units to ensure that the environmental disaster in Boracay never happens again. Painful as it was for Boracay’s stakeholders, she sees the proverbial silver lining in the incident as it made other government units aware of the importance of environmental law enforcement. So hard was the lesson that the President himself warned LGUs to strictly enforce environmental laws in his state of the nation address.
To Sec. Berna’s relief, foreign visitor arrivals still increased by 10.4% in the first half of the year despite Boracay’s closure. Destinations like Mactan, Siargao, Palawan, La Union, and Bohol benefitted while virgin territories like Siquijor, Romblon, and Panay were discovered. For its part, Boracay has been able to heal itself from years of inundation.
Sec. Berna has spent the last three months killing fires left by Teo and consolidating the DoT’s budget, whatever is left of it. She is strengthening the internal audit systems of the DoT to prevent abuses in the future.
In terms of promotions, she has been meeting with the likes of J. Walter Thompson, Evident Communications, and BBDO Guerrero to strategize the country’s next tourism ad campaign. We were told that the “It’s more fun in the Philippines” slogan will continue to be used, albeit refreshed. I consider this a wise move considering the traction and recall the slogan has already built up.
The next campaign will still feature our beautiful beaches, but emphasis will be given to local gastronomy, heritage tourism, and agricultural tourism
THE OPPORTUNITY
I have no doubt that Sec. Berna will succeed in as far as tourism arrivals and revenues go. Everything is working to her favor, not the least of which is the commissioning of numerous provincial airports and more access roads to and from tourist destinations. Infrastructure is a great enabler of tourism and it is all coming on-line in the next few years.
Numbers aside, Sec. Berna has the rare opportunity to forever change the way our country is perceived by the rest of the world. I’m not talking about our image as a tourist destination, but our image as a people, as a culture, our heritage, our achievements, our competencies and our aspirations. I am talking about our country brand.
Even today, despite the great advances we’ve made economically, we are still perceived by the world as a third world country with third world mentality. We are associated with national disasters, grime, and squalor.
To foreigners, images of Smoky Mountain and the annoying jeepney still come to mind when speaking about the Philippines. The jeepney has been used as our icon for decades. It is a national symbol that ceased to be cute a long time ago — it is now a symbol of backwardness.
These images do not give justice to the talent of the Filipino, our achievements in the BPO and electronics space, our strength, resilience, and creativity. It certainly does not do justice to the fact that the country is now among the fastest growing economies in the world with aspirations to be a developed economy by the year 2040.
Country branding refers to the process of defining, building and managing a nation’s image. It is an important component in national development given its effect on tourism, global trade, investments, and diplomacy. It also has a profound influence on our sense of identity as a people and national pride. If ever, Secretary Berna will be the first Secretary to shape our country brand since former Secretary Jose Aspiras in the 1970s.
How the country should be branded is not for me to say — it is something that should be decided upon by experts in global communication. We can look at best practices from other nations.
Germany, for instance, built an image associated with precision and technology. France established theirs based on design and craftsmanship. Both nations have intentionally crafted these images to lend credibility to their exports, industries, and of course, in tourism.
Malaysia and Singapore have crafted their image as modern, progressive economies with advanced infrastructure and strong institutions. All these are meant to make them the first choice of foreign investors
Spain built its image around its passion for life and the humanities. It serves as the perfect building block for its goal to be the global champion in tourism, gastronomy, and agro-industries — a goal it achieved.
If the Philippines does not purposely craft images and perceptions that it wants to be associated with, then the world will do it on its own based on the inputs it receives from international media. Let’s face it, most of the news feeds circulated about the Philippines are of negative persuasions. Hence, the urgent need to manage it.
The importance of country branding cannot be over emphasized since it also affects our “soft power.” Soft power is the ability to influence policy and global decisions on the back of who you are as a nation and the gravitas you wield. It is the ability to attract coalitions, followers, cohorts, and cliques not by force or money but by persuasion.
At this time in our history when government is pursuing an independent foreign policy, soft power is a tool we cannot do without.
At this time when China is encroaching on our borders and the US is looking inwards, soft power will play an important role in defending our sovereignty.
At this time when we need to attract more foreign investments to keep the economy growing apace, soft power is the way in which we can compete against our aggressive neighbors.
Secretary Berna’s role as the tourism chief is clearly much larger than merely increasing visitor arrivals. Her work has sway on the nation’s foreign policy, defense, and the economy.
Having the rare opportunity to shape our country brand is great responsibility and a great opportunity. Done right, Secretary Berna can come down in history as the someone who has changed development trajectory of the Philippines forever.
Andrew J. Masigan is an economist