By Nickky Faustine P. de Guzman, Reporter

More than 1,400 kilometers away from the Ninoy Aquino International Airport (NAIA) in Manila is a destination that offers surprises for beach bums and nature lovers. Mati City in Davao, Oriental might easily pass as a regular travel destination because it is not as famous as Boracay.

But like the internationally recognized island paradise, Mati also has a rich collection of sun, sea, and sand.

“It’s the kind of place we only see in postcards. The bounties of the sea are fresh, generous, and cheap,” said Gabbie Baniqued, a local traveler.

However, the similarity between Boracay and Mati ends there.

While traveling to Boracay has become relatively easier through the years, getting to Mati, the province’s capital city, may strain the patience of tourists.

After all, visitors will have to travel for four hours to get there upon arriving in Davao City, which is more than an hour’s flight away from Manila.

“It’s a surfer’s dream destination,” Ms. Baniqued said, adding that the place could easily be the La Union of the South. She visited Mati’s Dahican Beach sometime in April, and said would revisit it in a heartbeat.

“But the challenge is going there [to the beach]. Walang dumadaan na mga tricycle. (No tricycle was passing by). The inn we rented was approximately 20 minutes away from the beach.” But there are small beach resorts, she clarified.

The marketplace, she recounted, was on the National Highway and the neighborhood stores that dotted the beach areas sold goods at atrocious prices. She advised visitors to bring their own food. Those who fail to do so might be forced to pay hand over fist — that is, if they can catch a ride to the nearest food kiosk — just to grab some grub.

As a result, these and many other inconveniences have not only made it difficult for travelers to enjoy their trips, they have also discouraged new tourists from the get-go, no thanks to the lack of roads and other related tourism facilities.

But those days are over.

At least for Mati.

According to the Department of Tourism (DoT) Region XI director Roberto P. Alabado III, the department is working with the Department of Public Works and Highways (DPWH) to ease the burden of traveling while helping underdeveloped tourist sites get their much-needed boost.

“Through the DoT-DPWH joint undertaking program called Tourism Road Infrastructure Program (TRIP), local road projects to tourist destinations are prioritized. Davao Oriental is one of the beneficiaries of this program with three major roads completed within 2010-2016 period,” he told BusinessWorld in an e-mail interview.

New roads have now been built to connect Mati, the capital city, to three newest tourism destinations in the province, which are the Pusan Point Ecopark, Mt. Hamiguitan Range, and Wildlife Sanctuary and Aliwagwag Falls Protective Landscape. Mati City is also accessible from Davao del Norte and Compostela Valley via Cateel and Boston.

Connecting the Philippines

Funded by a P60-billion allocation, the government’s tourism road program has completed an estimated 1,549 kilometers of roads, “complementing the country’s natural attractions and drawing local and foreign tourists,” the public works department said in an earlier statement.

The allotment, released over “the period of five years from FY 2011 to 2015 was utilized to finance 463 projects involving construction, upgrading, rehabilitation, and improvement of roads and bridges including slope protection works with a total length of 2,502 kilometers,” said the statement published on the Official Gazette.

Some of the completed projects include: the Junction Ilocos Norte-Abra Road, which is a gateway to Nueva Era in Ilocos Norte, which offers ecotourism activities; the 11-kilometer road to Ambangeg Junction National Road to Mount Pulag, the third highest mountain in the country known for its breathtaking view of sunrise and sunset; and the road widening in the town of Glan in Sarangani Province, which leads to its Gumasa beach, dubbed as “The Little Boracay of Southern Mindanao.”

For 2016 meanwhile, DoT Assistant Secretary for Tourism Planning Rolando T. Cañizal said, “P22.58 billion has been provided in the approved budget of the DPWH for the construction or improvement of access roads leading to tourism destinations.”

He said funds have been allocated, for instance, to Sta. Fe-Bantayan-Madredijos Provincial Road in Bantayan Island, Cebu, which is also a favorite tourist destination despite the challenge to get there.

“The DoT and DPWH are working closely to continue this convergence program under the National Tourism Development Plan for 2016-2022,” said Mr. Cañizal.

By then, the DoT might already be able provide information on how connected the country is.

“More tourists have been able to visit more places in the country since the national government has given attention to improving access to tourist destinations beginning in 2012 to the present,” he said.

The latest DoT data said the tourist arrivals reached two million from January to April 2016, which is a 14% increase from the same period last year. Our target for this year is 6.5 million tourist arrivals.

Tourism after Yolanda

Like Mati, Bantayan Island in Northern Cebu is a stunning destination that could easily draw local and foreign visitors. It boasts white sand beaches and clear waters reminiscent of Boracay’s, if not better.

To reach the island from the Mactan-Cebu International Airport, travelers have to go to the Cebu North Bus Terminal, and hop on a bus for a two-hour trip that will take them to Hagnaya Port. Upon reaching the port, the bus will get on a Roll-On, Roll-Off (RoRo) vessel and travel for another one and a half hours to reach the area.

But the island, known as Visayas’ “egg basket,” was hit by super-typhoon Haiyan in 2013, affecting its poultry industry and devastating 90% of its houses and structures, which has also dampened its growing tourist and investor enthusiasm.

Bantayan Island is among the nine tourism development areas aided by the Local Governance Support Program for Local Economic Development, a Department of Interior and Local Government (DILG) program funded by the Canadian government. The other areas are Albay, Sorsogon, Davao del Norte, Antique, Guimaras, Siquijor, Negros Oriental and Occidental, and Northern Cebu and Palawan.

Together with the Philippine Chambers of Commerce and Industry, the goal of the project is the revival of investor interest after the typhoon, which will eventually result in more visitors.

According to the data from BusinessWorld-Research, tourism arrivals in these regions have started regaining momentum. For instance, Sorsogon and Albay have increased tourist arrivals by an average of 32.18% between 2011 and 2015. Thanks to an overspill of Boracay Island tourists, its neighbor, Antique, grew its tourist arrivals by 44.12% between 2011 and 2015.

In addition, Central Visayas, which includes Cebu and thus, Bantayan Island, “has the absorptive capacity with the influx of local and foreign tourists. We have the most number of rooms outside the National Capital Region, and other necessary services that tourists needed,” said Mr. Cañizal.

‘Software’ readiness and millennials’ bucket list

But in the absence of road networks and hotels, the community needs to appear as a strong player in propagating its growing tourism industry, including, ingenious offerings like homestays and tent rentals.

“You also need the ‘software’ or the people and its strong sense of community empowerment. They should be at the frontline. Sometimes, even in absence of infrastructure, they will come [as a key source of tourism strategy],” Clang Garcia told BusinessWorld in a phone interview.

Ms. Garcia is the founder of Jeepney Tours, a city tour that roams Manila via air-conditioned jeepneys (with karaoke inside); and is a member of the Philippine Tour Operators Association, (PHILTOA) Inc., a private organization of 999, and growing, travel agencies, hotels, resorts, handicraft stores, transport groups, and other tourism related companies.

PHILTOA has partnerships with the regional DoTs and LGUs in “search for promising destinations — not necessarily those with ample hotels — but the ones that are ready to start, if not starting.”

“We scour the country in search for a tourism-ready destination,” she said, “but we will not push it in the absence of the locals’ initiatives and go signal. We are only the conduit.”

When asked for samples of underdeveloped tourism sites, she mentioned Siquijor, which is part of Central Visayas region. “It still needs improvement, probably more hotels and properties. But it is promising.”

A province veiled in mystique, Siquijor is often associated with superstition and sorcery. But according to the It’s More Fun in the Philippines Web site, the island is a treasure trove waiting to be unearthed because it is replete with natural wonders like beaches, caves, and waterfalls, among others.

PHILTOA said it has identified six other tourist destinations that may be underdeveloped yet they form part of millennials’ 2016 bucket list: Romblon, Catanduanes, Marinduque, Iloilo’s Gigantes Islands, Real in Quezon, and Tanay and Antipolo in Rizal. The provinces are part of PHILTOA’s annual Philippine Travel Mart fair in September.

These sites are underdeveloped because they are “separate islands that are hard to reach, without regular visitors, and with no direct and daily flight schedules but RoRo,” said Ramon F. Mariñas, PHILTOA product development in charge and board member, in a phone interview.

“The millennials are group of people who are really interested in other places than the mainstream,” he said. They are game for adventures and mostly backpackers who are unfussy and over-particular.

Sites off the beaten path

Mr. Mariñas said the group has just finished its nine-day immersion in Romblon to see and discover what it still has to offer.

An archipelagic region in Mimaropa, Romblon is primarily known for its marble. But beyond its metamorphic rock products, Mimaropa is a collection of islands with majestic views of the underwater world, including Sibuyan, which is dubbed as “The Galapagos of Asia.” Its Carabao Island, meanwhile, is a good alternative for Boracay Island and its party-ready atmosphere.

“It benefits from the tourist spill in Boracay,” said Mr. Mariñas. He said the LGU they have worked with has implemented a master plan development to maintain its immaculate beauty

“Perhaps in 10 years time we’ll see its development,” he added.

One hundred fifty nine kilometers south of Romblon, meanwhile, is another underdeveloped destination: Iloilo’s Gigantes Islands.

“Part of its charm is an overnight stay in one of the islands via cottage or tent. It [offers] total relaxation because the place almost has no cellular signal,” said Kenneth M. Dulla, 23, who visited Gigantes Islands last summer. He added that the areas have rotating electricity schedules.

Gigantes Islands is a remote group of islands in Northeastern Iloilo. From Iloilo City, it takes five hours of land travel to Estancia town and two hours more of boat travel to reach the isolated islands blessed with a bounty of beaches, rock formations, and fresh seafood.

According to the Iloilo government Web site (www.iloilo.gov.ph), the tourist arrivals in the province increased in 2015 reached 206,204, compared with 2014’s 159,398 visitors.

Most of the island hopping activities in Gigantes Islands have no entrance fee. Mr. Dulla and his friends paid P2,000 each for a travel package that covered their tent, food, and transportation.

“It is true when they say that ‘It’s More Fun in the Philippines’ because we have a lot to offer and to discover,” said Mr. Dulla.

Ms. Garcia agreed and added that sometimes, even established tourist sites, more so the underdeveloped destinations, could offer sites located off the beaten paths — only if you know how to find them.

“The underdeveloped tourist sites have not yet fully embraced the tourism culture. The resources are there but they do not know how to maximize it,” added Mr. Mariñas, saying that PHILTOA works with regional DoTs and LGUs in “product development” ideas, or steps on how to package a potential or underdeveloped tourist destination.

“What’s important is to create noise,” he said.

Nickky Faustine P. de Guzman (@nickkydg on Twitter) likes cheap airfares and secondhand books. She is reading The Light Between Oceans before it hits cinemas in September.

By Bienvenido S. Oplas, Jr.

The rapid pace of economic growth in East Asia over the past two to three decades coincided with, or was facilitated by, high energy capacity largely coming from coal power plants.

This is shown by the numbers below covering two decades. Electricity generation and solar power consumption are expressed in terawatt hours (TWh, 1 TW = 1 million MW), coal consumption is expressed in million tons oil equivalent (mtoe), and GDP size is valued at Purchasing Power Parity (PPP).

The table on the right shows the following:

1. The Philippines has a small electricity production, only 83 TWh in 2015 or just one-half (1/2) that of Vietnam and Thailand and only one-third (1/3) that of Indonesia. This is a reflection of its low installed power capacity relative to its neighbors.

2. China and Vietnam have significantly expanded their electricity production in the last two decades by nearly 500% and 1,000%, respectively. This coincided with, or significantly contributed to, their high GDP expansion of 769% and 426% respectively for the same period. China has a very high level of coal use, 1,920 mtoe in 2015 while Vietnam has a very high % expansion of coal use, 616% in just two decades.

3. Of the 12 Asian economies listed, only three — Japan, Thailand and Hong Kong — did not experience 200+% expansion or quadrupling of GDP size after two decades. They are also the three economies plus Pakistan, that did not experience high expansion in electricity generation and coal use.

4. The eight other Asian economies have benefited from higher electricity generation, higher coal use, and coincided with or facilitated higher GDP size expansion in just two decades.

5. Solar power consumption in Asia remains very small. Less than 0.05 TWh in 2015 for six of the 12 economies — Vietnam, Hong Kong, Malaysia, Philippines, Singapore and Thailand. Thus, statements that many Asian economies have (a) significantly embraced new renewables like solar, and (b) their use of coal power is declining as they shift towards more solar and wind power – are preposterous.

During the BusinessWorld Economic Forum last July 12, 2016, the subject of Philippines’ power and energy policies was mentioned several times by different speakers.

In his keynote speech, First Pacific Co. Ltd. managing director, said that “The recent heightened interest in renewables is understandable. But let me say this: for now, renewables cost more than conventional power, which means higher power prices. There’s a cost to protecting our environment — no such thing as free lunch.” He added that we are heading towards sufficient power capacity and majority of these power plants are coal.

DoF Secretary Carlos Dominguez III partly mentioned the importance of a realistic energy mix that will not burden the consumers with high electricity prices.

In the panel on Disruption, Solar Philippines’ President Leandro Leviste argued that “solar is now cheaper than coal.” He added that batteries to stabilize solar output that currently costs an additional P2.50 per kWh to solar power can significantly drop by one-half by 2020. Still, he argued, that solar + battery prices, solar can replace all gas, oil, and diesel in the Philippines.

In the panel on Infrastructure Capacity, Eric Francia, President & CEO of Ayala Corporation Energy Holdings, Inc. showed one slide where the Philippines’ power capacity 2014 was only 15.6 GW vs. Vietnam’s 40+ GW.

Finally, in the same panel on Capacity, Erramon Aboitiz, President & CEO of Aboitiz Equity Ventures, Inc. (AEVI) said that the Electric Power Industry Reform Act of 2001 (EPIRA, RA 9136) is working. It stopped the financial drain of government with heavy NPC monopoly losses and debts, attracted investments from the private sector and competition has driven down power rates. He rightfully argued that in deciding the energy mix, affordability to consumers and stability of power supply should be a priority for the government. The open access and retail competition provision give customers the power of choice.

There are several ways that expensive solar energy will burden the consumers in the coming years. One, the high feed in tariff (FiT) of P8.69/kWh in 2015, that becomes P9.69/kWh in 2016, that will become roughly P10.70 by 2017, and further rise in 2018 and beyond as indexation to inflation rate and other factors are inserted. Two, this ever-rising solar price is assured for 20 years for each FiT-eligible solar company. Three, even consumers in Mindanao who are not connected to the Visayas-Luzon grids and not part of WESM energy trading are forced to pay this expensive FiT. Four, the priority or mandatory dispatch into the grid even if cheaper sources like coal that can be sold at marginal price of only P1 to P1.50/kWh during off-peak demand hours and days are available. And five, the impending renewable portfolio standard (RPS) will force, coerce and arm-twist many or all the distribution utilities (DUs) in the country to buy a minimum percentage from expensive renewables, the additional cost will be passed on to the consumers.

The government should step out of energy rationing and cronyism. Consumers should be given the freedom to choose, to buy from cheaper energy and avoid expensive electricity. Current legislation via the RE law of 2008 (RA 9513) that institutionalizes energy cronyism should be amended or abolished. This is one policy measure that President Duterte and DoE Secretary Cusi can consider in the next six years.

Bienvenido S. Oplas, Jr. is the head of Minimal Government Thinkers and a SEANET Fellow. minimalgovernment@gmail.com.

SuperTyphoon Yolanda (International name Haiyan), one of the strongest storms ever recorded, left a “deep imprint on everyone” at the First Philippine Holdings Corporation (FPH), the parent company of Energy Development Corporation (EDC).

This was admitted by FPH Chief Executive Officer and Chairman Federico R. Lopez said during his keynote speech last June 17 at the SharePhil Summit 2016 in Makati City.

The typhoon brought about “considerable corporate and personal damage” on the company’s geothermal plants in Leyte, where Yolanda made landfall, he said.

As a result of the devastation, the Lopez-led company was prompted to walk its talk — it rejected the use of coal, one of the cheapest but dirtiest fuels, to generate power.

“We made public our group’s stance that we would no longer consider building, developing, or investing in coal-fired power plants despite the fact that every other business group and bank in the country is doing so. We’re making it our mission to help the country navigate the challenging transition toward a cleaner decarbonized future,” Mr. Lopez said.

Mr. Lopez also warned shareholders during the summit that they can no longer overlook the costs of such disasters and that Filipinos are not ready to face calamities brought by climate change.

“The later the carbon emissions to be reduced, it will be more difficult, drastic, and impossible those reductions be. Much of the warming already occurring will trigger widespread tipping points and feedback loops on ecosystems that cannot be reversed and will exacerbate climate change even more,” Mr. Lopez said.

Coal reconsidered but later rejected

These sentiments were the diametric opposite of what has been publicly expressed by Mr. Lopez.

During the sidelines of the stockholders’ meeting last May 23, the diversified conglomerate had considered to invest and build coal-power plants but explained that the idea was already scrapped.

“In fact at some point we were studying it, we were going to invest in it. We even had plans that we announced. We’ve scrapped all of that already,” Mr. Lopez said.

Despite the drive towards renewable energy, coal still remains the cheapest and most dependable source of energy in the country. During his first media briefing held on July 4, Energy Secretary Alfonso G. Cusi said that the Philippines will retain coal as a core part of its electricity generation mix.

“Coal is the more dependable, the more reliable source for base load […] As a developing country we cannot afford not to have coal,” Mr. Cusi said.

Being one of Asia’s fastest growing economies with a current gross domestic product growth projection of 6%, the country aims to double its capacity to generate power by 2030 to avoid a power shortage that took place in the 1990s.

But these developments haven’t made a dent in the company’s commitment for a greener future.

“Social Justice also emerges in the way we approach our geothermal business. In the broadest sense, social justice is that of doing right for society. It has always been at the core of our Group’s DNA,” he added.

From January to March this year, Lopez Holdings earned P1.35 billion, 24% higher than the P1.09 billion reported during the same period in 2015.

FPH was registered with the Securities and Exchange Commission with the purpose of purchasing and acquiring shares in the power generation, real estate development, roads and tollways operations, manufacturing and construction, financing and other service industries. The company’s other subsidiaries and affiliates include First Gen Corporation; First Philippine Industrial Corporation; and Rockwell Land Corporation. FPH also has a 3.95% interest in Manila Electric Company. — Mac Norhen E. Bornales