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Airport transfers and tourism

Is there a connection between tourism and the travel time to and from the international airport and the city proper?

I asked myself this question while I was reading Eva Air’s inflight magazine en route to Houston, Texas.

I spent a total of 17 hours traveling — two hours from Manila to Taiwan, a layover of one hour, and another 14 hours from Taiwan to Houston.

The good news is that all three airports mentioned have free Wi-Fi, especially in Taiwan, which offers fast Internet connections without requiring registrations. The bad news is that free Wi-Fi does not reach some gates at the NAIA.

I paid a visit to Houston to attend the “America First Energy Conference,” set for Nov. 9 at JW Marriott Houston, sponsored by the Heartland Institute, which also provided me a travel scholarship.

The airline’s En Voyage inflight magazine has one table that shows the list of the global airports they serve, distance from airport to downtown, the estimated travel time by train, bus and car/taxi (C), and cost in local currencies. I reconstructed the table and chose only major cities in East Asia, computed the average speed by car/taxi travel, then added data on each country’s international tourist arrivals and tourism receipts in 2016 (see table).

Airport transfers and tourism

From the above numbers, these preliminary analysis would show:

1. Economies that have quick and convenient transport systems between their airports and city centers have higher tourism arrivals, even if their airports are far away from the cities. These examples include: China, Hong Kong, Japan, Malaysia, Thailand, South Korea, and Singapore.

2. Airports near their city centers have fewer visitors, if transport systems between locations are slow. These examples include: Vietnam (especially Ho Chi Minh airport) and Philippines, both NAIA/Manila and Mactan-Cebu airports.

There are many factors of course why some countries have very high tourist arrivals while others have fewer visitors. These factors are convenience of the airport itself, overall peace and order situation of the country, dominance of the rule of law, proximity of that city/country to other important tourism areas in other cities and countries.

If one lands in Bangkok, one can go to Cambodia, Laos, and Vietnam by land, without the need to take other flights.

Preliminary data show that yes, there seems to have a positive connection or correlation between fast airport transfer and tourism arrivals.

The data on Manila airport is a bit outdated because (1) there are now convenient and fast bus transportaion from NAIA/Manila airport to city centers of Makati City, Pasay City, and Manila and vice-versa, and (b) newly opened NAIA Expressway (PPP project by San Miguel) has significantly cut the travel time by car from the airport’s three terminals to city centers.

Some implications for the Philippines and its infrastructure and tourism policies.

One, NAIAEx tollway is doing good and should contribute to attracting more visitors into the country; thus, further extension of this tollway to BGC and other areas as planned by the project proponents and O&M operators should be facilitated by the government and not subjected to various cumbersome and costly regulations and permitting procedures.

Two, moving the Philippine international airport to a farther but bigger space (Clark in Pampanga, or Sangley Point in Cavite, or currently rice lands in Bulacan, etc.) complemented by fast train and/or buses to city centers will be a win-win situation.

Three, allow more integrated PPP (builders and O&M operation functions are assigned to only one winning bid player or consortium of players) for big, new airports, not hybrid PPP.

 

Bienvenido S. Oplas, Jr. is the head of Minimal Government Thinkers, a member-institute of EFN-Asia.

minimalgovernment@gmail.com

NATO looks to seize momentum in Afghanistan conflict

BRUSSELS — Defense ministers from across the North Atlantic Treaty Organization (NATO) alliance meet in Brussels on Thursday to review next steps in the Afghanistan conflict and brainstorm ways to deal with the 16-year-old security crisis.

NATO this week announced it would be sending some 3,000 extra troops to the war-torn country, bringing the Western military footprint up to about 16,000 soldiers.

The additional troops, most of them American, will help train and advise local Afghan forces who have struggled to hold the Taliban at bay while suffering heavy casualties.

NATO leaders are optimistic that 2018 could see Afghan forces start to gain momentum against the Taliban, thanks to renewed training efforts, a growing air force and thousands of extra Afghan commandos.

Plus US President Donald J. Trump has given American forces greater leeway in how and when they can hit the Taliban, and Afghan forces are increasingly going on the offensive.

Speaking ahead of the NATO defense ministers summit in Brussels, Secretary General Jens Stoltenberg said the alliance would boost its presence “to help the Afghans break the stalemate, to send a clear message to Taliban to the insurgents that they will not win on the battleground.”

Immediately following the NATO summit, US Defense Secretary Jim Mattis will host a separate meeting with partners from the coalition fighting the Islamic State (IS) group in the Middle East, where the jihadists continue to lose territory.

Mr. Mattis said coalition partners are looking to the United States for a clear plan about what follows the physical defeat of IS.

“Maybe three-quarters of the questions I am getting asked now is (about) going forward. It’s not about are we going to be able to stop ISIS, are we going to be able to overcome ISIS. They are now saying: ‘What’s next? How is it looking?’” Mr. Mattis told reporters this week using another acronym for the group.

Following back-to-back losses, including of their Syrian and Iraqi strongholds of Raqa and Mosul, IS fighters are down to defending their last holdouts along the Euphrates River valley.

America’s military involvement in Syria has until now been focused solely on fighting IS, but with the jihadists on the ropes, Washington must articulate its longer-term interests and what role, if any, US forces will play in Syria. — AFP

Health advocates rebuffed on new tobacco taxes

NEW TAX on tobacco being pushed by health advocates cannot be accommodated in the first package of tax reform program, Senate committee on ways and means chair Juan Edgardo M. Angara said.

“We are aware of this especially now that they (health advocates) are very vocal,” Mr. Angara said, adding, “We wish that they came earlier.”

The Sin Tax Coalition, which includes health care workers, was present at the Senate on Wednesday, Nov. 8, during the committee hearing discussing Tax Reform Acceleration and Inclusion (TRAIN) legislation.

“We cannot afford to wait for 2019 to increase the tobacco tax.  We have presented this to Sen. Angara several times. If our Senators delay this measure we expect 200,000 new smokers, most probably children, next year and thereafter,” according to Dr. Maricar Limpin, a pulmonologist and former president of the Philippine College of Chest Physicians (PCCP) and executive director of the Action on Smoking and Health organization.

University of the Philippines (UP) College of Medicine Professor Antonio Dans said: “The current [law] increases the tax of tobacco by 4% every year… Despite this, you will end up with 1 million more smokers by 2022 at the current tax rate.

Mr. Angara said it may be possible to include the proposal in subsequent packages of TRAIN.

“Perhaps not in the first package as it is too late… and there is a deadline, but of course the body can overrule me. I’m just one vote at the end of the day,” Mr. Angara said.

Mr. Dans said: “[I]f we include it in TRAIN2, the earliest implementation is 2019. In that one year delay, there will be 200,000 new smokers.”

“Another reason is we don’t think we will be able to pass TRAIN 2,because the current administration is losing political capital,” Mr. Dans added.

Senators Emmanuel D. Pacquiao and Joseph Victor G. Ejercito have filed Senate Bills 1599 and 1605, respectively,  seeking to further increase the excise tax on tobacco products by P60 to P90 per pack from its current tax rate of P30.

In a statement released by the office of Mr. Pacquiao in October, the senator said that “the implementation of the Sin Tax Reform Act (RA 10351) has been proven effective in minimizing if not totally stopping the smoking habit and in raising funds for public health.” —  Arjay L. Balinbin

BDO Leasing profit down at end-Sept.

BDO LEASING and Finance, Inc. (BDO Leasing) booked a slightly lower net income amid an uptick in funding costs.

In a statement disclosed to the Philippine Stock Exchange on Thursday, the Sy-led BDO Leading said it saw a 4% decline in its net income to P406 million in the first nine months, from P425 million in the comparable period last year.

BDO Leasing recorded gross revenues of P2.3 billion, up 9% from the previous year.

Its net lease and loan portfolio, meanwhile, booked a 13% increase, amounting to P34 billion.

In the same statement, BDO Leasing said it will continue to strengthen its marketing efforts in emerging provincial areas while leveraging the broad market reach of its parent company to extend its services.

“Additionally, the company intends to expand and optimize its funding sources to match its asset growth and manage its funding,” it said.

Shares in BDO Leasing closed at P3.84 apiece on Thursday, down by two centavos or 0.52% from Wednesday’s finish of P3.86 each. — Karl Angelo N. Vidal

Davao 1st half investments down, but recovery seen in 2nd half

Vulnerabilities of our techno-laden world

Almost a quarter of a million stock market online investors’ personal data may have been stolen by hackers, as reported by the country’s largest online stockbroker, COL Financial to the National Privacy Commission on October 20. The company informed its clients that its computers were subject of a “possible breach” and further advised them to change their passwords used to access their online trading portfolios.

Early last year, the country suffered its worst ever government data breach when personal information, including fingerprint data and passport information belonging to around 70 million people is said to have been compromised by hackers, as reported by BBC. Then just barely a month, the Philippine Commission on Elections (Comelec) saw its website defaced by hackers.

In the global scene just in September, Equifax Inc, a U.S. provider of consumer credit scores, announced that personal details of as many as 143 million U.S. consumers were accessed by hackers between mid-May and July, in what could be one of the largest data breaches in the United States.

It gets even nastier when Wired Magazine noted that the first six months of 2017 have seen an inordinate number of cybersecurity meltdowns, ranging from massive and viral WannaCry ransomware, to leaks of spy tools from US intelligence agencies, to full-on campaign hacking.

These are the downsides of technology and a connected world – one that can be manipulated, as underscored by Marc Goodman, New York Times best-selling author of “Future Crimes”. He goes on to give examples of terrorists who can use smartphones and Google Earth and to stage attacks on nations and states, and advanced drug cartels that could synthetically modify organisms to produce illegal narcotics.

He is not only a futurist but a realist as well. Having worked in law enforcement and technology, he states early in the book, “The cornucopia of technology that we are accepting into our lives, with little or no self-reflection or thoughtful examination, may very well come back and bite us.”

Then he goes on to describe the vulnerabilities we all face as consumers of technology, citing a scary statistic that 600,000 Facebook accounts are compromised each day. He describes how scammers sell fake versions of apps and can suck down sensitive personal information in the process by manipulating app stores.

He then points out the how Facebook, Google, and Twitter make money from using our personal information and erode our privacy, and how flawed antivirus software create a false sense of security which hackers can exploit.

But in the end, Goodman implores us to take responsibility for the tech-laden world that’s unfolding before us by considering the most extreme scenarios and taking action.

Catch Marc Goodman give share more insights as he delivers his keynote in PiliPINASCon 2017 with the theme “Increasing the Filipino’s Awareness on Cybersecurity” this Nov 28 at The Tent, Enderun Colleges, McKinley Hill, Taguig City, organized by Global Chamber Manila. The conference is packed with practical insights and visionary prognostications on the state and future of cybersecurity in the Philippines and the world, with a host of experts and panelists from tech companies, government agencies, NGOs and industry associations, and academe.

For more information, you can email mnl@globalcahmber.org or register online at manila.globalchamber.org.

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of FINEX. The author may be emailed at reylugtu@reylugtu.com.

Reynaldo C. Lugtu Jr. is the Managing Director of The Engage Philippines, digital marketing and customer engagement solutions company.  an information and communications technology firm. He is the Chairman of the ICT Committee of the Financial Executives Institute of the Philippines (FINEX). He teaches strategic management in the MBA Program of De La Salle University. He is also an Adjunct Faculty of the Asian Institute of Management.

How PSEi member stocks performed — November 9, 2017

Here’s a quick glance at how PSEi stocks fared on Thursday, November 9, 2017.

How does the Philippines fare in terms of shipping connectivity?

Nation at a glance — (11/10/17)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

The Philippines looks to foreign investment to liberalize trade

With an eye on reversing a dip in foreign direct investment (FDI), the Philippines has proposed a series of reforms aimed at increasing trade liberalization.

In early October Ernesto M. Pernia, the director-general of the National Economic and Development Authority (NEDA), told media that the government planned to significantly reduce the foreign capital limit currently in place for the retail sector.

Under the proposed changes, the minimum amount of paid-up capital that foreigners need to take up full ownership of a retail company will be reduced from $2.5 million to $200,000.

EFFORTS TO TAP INTERNATIONAL FUNDING FOR RETAIL GATHERING PACE
The reforms are aimed at attracting more international investment to the retail industry.

Both the European and Japanese chambers of commerce in the Philippines told media they welcomed the move, saying it should improve competitiveness. The announcement also brought a favorable reaction from key foreign business leaders based in the country.

However, the favorable response has not been universal; local businesses, in particular, have expressed concern that a ceiling of just $200,000 could crowd them out of the market by bringing in foreign entities seeking short-term gains.

In response, the Philippine Chamber of Commerce and Industry has called for the foreign investment cap to remain above $200,000, arguing that a higher limit would attract more strategic foreign investors, and, in turn, bring improved technology and innovation into the retail sector.

REFORMS TO OPEN UP INDUSTRIES TO INTERNATIONAL OPERATORS
The proposals form part of a broader national strategy to liberalize the economy and are a key component of the government’s review of its Foreign Investment Negative List (FINL).

Scheduled to be released by NEDA before the end of the year, the review is expected to reduce the number of activities and sectors in which foreign participation is prohibited. It is also expected to allow 100% foreign ownership of companies in more areas of the national economy.

In addition, NEDA has proposed lifting restrictions on foreign contractors, highly skilled academic professionals and public utilities.

Contractors are seen as key potential partners in the government’s ambitious plans to build and upgrade roads, bridges, and mass urban and subway systems across the country. The administration has targeted spending 7% of GDP on infrastructure needs, up from 4% in 2015 and 5% in 2016.

Increasing the number of foreign academics in the Philippines’ universities, particularly in the fields of science and technology, will also improve the education system, according to Mr. Pernia.

The University of the Philippines was the only Philippine institution to make it onto the Times Higher Education World University Rankings 2018 list, appearing in the 601-800 bracket of more than 1,000 assessed.

Efforts to liberalize the economy come at a time of declining international capital inflows. FDI fell by 16.5% year on year in the first seven months of 2017 to $3.9 billion, according to data from the central bank. In July net inflows fell to $307 million, the lowest monthly level since June 2016, when they reached just $238 million.

PHILIPPINES TARGETS IMPROVING ASEAN COMPETITIVENESS
The planned liberalization drive coincides with efforts to make the Philippines more competitive with its ASEAN neighbors, as officials look to boost the country’s share of regional FDI.

At a recent speech to a Bank of China-organized forum in Shanghai, Carlos G. Dominguez III, the Secretary of finance, highlighted what he has often referred to as the country’s “demographic sweet spot,” noting that a sizeable generation of young, educated people will be entering the workplace as the populations of some other Asian countries begin to age.

However, the country still has work to do; the Philippines ranked seventh out of the nine ASEAN countries featured in the World Economic Forum’s Global Competitiveness Index 2017-18, placing 56th out of 137 economies overall.

While improving its position in last year’s survey by one spot, the country lost ground to ASEAN neighbor Vietnam, which ranked 55th, and also placed lower than Singapore (3rd), Malaysia (23rd), Thailand (32nd), Indonesia (36th) and Brunei Darussalam (46th). The report cited inefficient bureaucracy, inadequate infrastructure, corruption and a problematic tax system as the most pressing barriers to investment.

Despite these challenges, the government’s broader plans to liberalize the economy appear to be generating a generally favorable response among businesses. In OBG’s “Business Barometer: Philippines CEO Survey,” undertaken in mid-2017, all C-suite executives surveyed described their expectations for local businesses in the year ahead as either “positive” or “very positive.”

Eight reasons why the Mental Health Law must be passed ASAP

This Christmas season, mental health professionals and advocates alike have only one thing on their wish list: the passage of a Philippine Mental Health Law.

At a press conference last Monday, advocates called upon lawmakers to hasten the passage of the Philippine Mental Health Law through a discourse about the state of the Mental Health Bill, now up for its third and final reading in the House of Representatives.

Below are some of the reasons why Mental Health Law must be passed ASAP:

1. Mental health is not a matter reserved only for people with diagnosed mental health conditions.

As defined in the bill, it is “a state of psychosocial well‑being in which individuals realize their own abilities adequately with the normal stresses of life, display resilience in the face of extreme life events, work productively and fruitfully, and are able to make positive contributions to the community.”

Mental health is not just the absence of illness. It is something that everyone who has a functioning brain (and we mean this literally, not figuratively) must take seriously.

2. The Philippines is the only Southeast Asian country left without a mental health law.

“First of all, global statistics say that one in 20 individuals have mental health problems. The disability impact of mental health disorders is 28%, much higher than other non‑communicable diseases,” Dr. June Lopez of the Philippine Psychiatric Association pointed out. “[In the country], the budget for mental health mainly goes into hospitals and tertiary care facilities, wherein those who are hospitalized already have severe problems,” Dr. Lopez said.

3. The Philippine Mental Health Bill is a rights‑based bill.

It protects both the rights of people with mental health needs, and the rights of all Filipinos. The rights of mental health service users, carers and professionals are articulated in the bill. Substance abuse and drug dependence are also defined as a psychological disorder, making it unjust to criminalize sufferers.

4. The bill is for the protection and promotion of every Filipino.

“The power of the law will lead to the development of mental health services that will promote the well‑being Filipinos for thriving of individuals in homes, schools, workplaces and communities. [It] will also lead to the development of more services supporting Filipinos going through all sorts of experiences like migration and marital conflict, life transitions, disaster and even war.”

5. It will open up a lot of services and programs.

Some of the mandates of the bill in its current state include: the establishment of a National Mental Health Council to improve access to services and community‑based prevention programs, and the accountability of concerned government agencies (e.g. the Department of Health, Department of Justice, Commission on Human Rights).

6. It will offer a complaint system.

The bill also mandates the establishment of a complaint mechanism against abuse of individuals with mental health disorders. It also calls for mental health education programs in all levels and research support.

7. You may have the opportunity to meditate or take art therapy in your barangay.

Community‑based prevention programs on the barangay level will be implemented to promote mental wellness. This includes meditation, home visits, family support, growth groups, art therapy and dance therapy. It will also promote capacity‑building with local mental health workers with facilities and university hospitals.

8. It will benefit Filipinos in a “most profound way.”

During the press con, Patrick Wincy Reyes of the Youth for Mental Health Coalition said that mental health : “It’s a step towards attaining that. You don’t have to be a psychologist to advocate for mental health—you just have to have an open mind and the willingness to be the voice of the unheard… implementing it into law will reach the farthest provinces in ways that are very concrete.”

The Comprehensive Mental Health Bill, HB 6452, is expected to undergo its third and final reading once the Congress opens after the ASEAN Summit.

Finally, Dr. Bolet Bautista of the Psychological Association of the Philippines urged lawmakers: “When you approve the bill, you give the Filipino people one big, beautiful gift—for it is one that will benefit all Filipinos in a most profound way.”

Gov’t mulls tax amnesty next year

By Elijah Joseph C. Tubayan
Reporter

THE GOVERNMENT may offer a general tax amnesty next year after showing it means business in running after delinquents, the Budget chief said yesterday.

“I think this is the best time to have an amnesty, now that we have established our credibility to run after those who have evaded,” Budget Secretary Benjamin E. Diokno said in a panel discussion during the Philippine Economics Society’s 54th Annual Meeting in Quezon City.

Asked when amnesty may be offered, Mr. Diokno told reporters on the meeting’s sidelines: “Maybe in a year baka pwede namga next year.”

He added that mechanisms to encourage availment could include bigger discounts on settlement amounts the sooner a delinquent applies, “so there’s a sense of urgency to avail of the tax amnesty.”

Asked further on what taxes could be covered by amnesty, Mr. Diokno replied: “[L]ahat ‘yun (all of them) — unpaid taxes and fees.”

Mr. Diokno noted that the administration has proven its seriousness in dealing with big-time tax cheats, saying: “Marami na kaming kaso (We have a lot of cases).”

At the same time, he said the potential program should be a one-time offer in order to encourage availment and net many delinquents into the system.

Pagtapos mo ‘nun (After the amnesty offer), to make it very useful, dapat gagamitin mo na ‘yung (one should use the) database mo. You have to use that and then they have to pay. Kasi ‘yun naman usually ang terms ng amnesty e: one time tapos magbayad ka na ng tamang buwis (and then you pay the right amount of tax),” Mr. Diokno explained.

“We have to establish na, ‘o mag-avail na kayo ngayon (now), otherwise huli kayo (we will arrest and prosecute you),’” he added.

“We are serious.”

Sought for details, Finance Undersecretary Karl Kendrick T. Chua said in a mobile phone message that there is “no concrete plan” yet for a tax amnesty, although “[i]n the years ahead, we may consider” offering it.

Mr. Diokno, however, said that while the Cabinet has not yet taken up the plan, “We will discuss that.”

Sought for comment, Eleanor L. Roque, P&A Grant Thornton’s Tax Advisory & Compliance head, said an amnesty will fit hand in glove in current moves to reform the country’s tax system.

“The best time for a tax amnesty is when there is a new rule, which is what we’re expecting for the tax reform,” Ms. Roque said in a telephone interview yesterday.

“So ang expectation ng taxpayers: once matapos ang tax reform (is in place) — at least package one and two… — they’ll settle all their previous obligations, and then they’ll be charged under the tax reform,” she explained.

The first of up to five tax reform packages that now awaits Senate approval — for implementation by January — will cut personal income tax rates while raising car and fuel excise taxes, imposing an excise tax on sugar-sweetened drinks, reducing value-added tax exemptions, as well as simplifying the estate and donors tax system.

The second package — scheduled to be submitted to Congress in January — will reduce the current 30% corporate income tax rate to 28% by 2019 and to 25% by 2021 and will streamline tax breaks in order to make sure that only sectors that need them can avail.

“So if ang tanong (if you are asking if it will be an) opportune time ba in a years’ time, then the answer is ‘yes’, as long as we have all the major tax reforms in place,” Ms. Roque said.

Finance Secretary Carlos G. Dominguez III said earlier that bank secrecy — now among the most restrictive in the world — must be relaxed prior to offering tax amnesty in order to make the program effective.

“Will the government ensure that the net worth or the assets that the taxpayer is declaring is true and correct? They should have a mechanism to be able to verify the truthfulness of information submitted to the government,” Ms. Roque said.

The government last implemented an amnesty program covering all national taxes in 2007, under which it collected some P4.91 billion, according to Bureau of Internal Revenue data.

The government expects to rake in P2.258 trillion in tax revenues this year, and it has so far collected 72.59%, or P1.639 trillion. In 2018, the government seeks to collect P2.671 trillion in taxes that will help fund its ambitious P8.44-trillion infrastructure build until 2022.

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