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Alternergy posts P38-M consolidated income

ALTERNERGY Holdings Corp. said on Monday that it recorded a consolidated net income of P38 million in the first half of the year, driven by higher revenues.

In a media release, the listed energy company said it managed to turn around from the P145.2-million net loss in the same period last year.

“Alternergy is entering the next phase of our growth momentum. We will build on past year’s successes,” Alternergy Chairman Vicente S. Pérez Jr. said.

He said in the next two years, “we will be on full-swing construction mode for our wind and solar projects and at the same time completing the construction of our run-of-river hydro projects.”

During the first semester, the company’s cash and consolidated assets rose to 113% to P1.2 billion and 41% to P4.9 billion, respectively.

Alternergy said it had allocated P720 million from the proceeds of its initial public offering to the pre-development of six renewable projects with 183 megawatts (MW) of capacity covering wind, solar, and hydropower.

The surge in consolidated assets was due to continued investments in the company’s projects, which are under construction, the company said. These are the solar farm and the battery storage project in Palau and two run-of-river hydro projects in Nueva Ecija and Ifugao.

During the period, earnings before interest, taxes, depreciation, and amortization increased by 7.7 times to P180 million from P23.3 million previously.

“Our initial year as a publicly listed company sets further growth in the coming years as we roll out our pipeline of projects,” Alternergy President Gerry P. Magbanua said.

The company said it expects its 13.2-MW alternating current solar farm and battery projects to start commercial operations by the fourth quarter of this year.

Alternergy is targeting to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower.

At the local bourse on Monday, shares of the company closed unchanged at P0.81 apiece. — Sheldeen Joy Talavera

FEU and CEU record improved financial performances

LISTED EDUCATIONAL institutions Far Eastern University, Inc. (FEU) and Centro Escolar University (CEU) reported improved financial performances in the first quarter of their fiscal years both ending in May.

In a stock exchange disclosure on Monday, FEU said it posted a P73.09-million net loss attributable to the owners of the parent company for the first quarter ending August, down from the P93.99-million net loss in the same period last year, due to higher revenues. 

“The current period net loss was reduced on account of better operating results from core school operations. First quarter results are usually at the lowest due to the seasonality of tuition revenue recognition,” FEU said.

FEU said its revenues rose 35% to P568.64 million from P421.95 million a year ago led by higher educational revenue, which increased 35% to P563.07 million.   

“Educational revenues growth resulted from increase in student population coupled with a modest increase in tuition fees,” FEU said. 

FEU also disclosed that its operating loss dropped 46% to P76.30 million from P142.06 million due to higher revenues.

“Operating loss declined by 46% as revenues increased, backed by a 6% increase in student population and a modest increase in tuition fees,” FEU said.

According to FEU, its operating expenses rose 17% to P657.55 million compared to P564.05 million. 

“Salaries and employee benefits expense increased due to higher faculty head count as well as the upward salary rate adjustments that took effect at the start of the current year. Utilities and communication expense went up on account of increased electricity and water consumption,” FEU said. 

“Outside services expense increased mainly on account of increased service utilization for janitorial and security services, while finance cost surged as a result of higher interest rates on bank loans,” the company added.

Meanwhile, FEU said it is optimistic that it would maintain a healthy financial position for the rest of the school year (SY) 2023-2024.

“The group is optimistic that it will sustain a healthy financial position and sound operating results for the SY 2023-2024, especially with an increase in group-wide student population during the first semester,” FEU said. 

In a separate regulatory filing, CEU said its first-quarter net income rose 106% to P147.41 million from P71.46 million last year.

The company’s revenues also improved 21.5% to P500.91 million compared with P412.45 million a year ago led by higher tuition and other school fees, which jumped 23.3% to P444.23 million.

CEU’s operating expenses climbed 3.67% to P353.50 million versus P340.99 million last year.

“CEU operations are generally affected by seasonality. There is usually a 10% to 12% drop in the number of students in the second semester, as compared to the first semester,” the company said.

On Monday, shares of FEU at the local bourse declined P5 or 0.86% to P575 apiece while CEU shares fell 20 centavos or 2.31% to P8.45 each. — Revin Mikhael D. Ochave

Overcoming headwinds, maximizing tailwinds

PHILIPPINE STAR/MIGUEL DE GUZMAN

(First of two parts)

THERE are several opportunities in the Philippine residential market that developers should start capturing.

Colliers Philippines is seeing several trends in the residential market, whether in the pre-selling or secondary segments. We are still far from the pre-coronavirus disease 2019 (COVID-19) level of Metro Manila prices and rents but the residential market is definitely rebounding.

We are now seeing the return of more expatriates, signaling a recovery of the leasing market in Metro Manila. In the pre-selling sector, the take-up in the first half of 2023 improved by 52% year on year while launches rose by 70% year on year.

Interest from local investors is picking up as reflected by improving consumer and business sentiment across the country. Developers remain cautiously optimistic and continue to be strategic with their launches. Housing summits are back, which only indicates that developers are starting to test the market’s overall appetite for new residential projects.

HIGHLIGHTING FEATURES THAT CATER TO BUYERS’ POST-COVID PREFERENCES
The results of our third quarter 2022 residential survey showed that 83% of respondents prefer condominium projects that offer good ventilation as well as more green and open spaces.

Developers should consider incorporating amenities that will allow residents to work from home or multi-task, such as co-working spaces and business amenities including function rooms and business lounges, as well as smart home systems.

Overall, more than 90% of respondents believe that having green and sustainable features are important in a residential development.

We encourage developers to consider integrating features such as water recycling and treatment facilities, sensor lighting, solar panels and pocket gardens to capture the demand from discerning buyers looking for innovative and sustainable features. In our view, these features are important in differentiating residential projects in the market.

SECURING GREEN BUILDING CERTIFICATIONS FOR RESIDENTIAL TOWERS
Colliers encourages developers to consider securing green building certifications such as Leadership in Energy and Environmental Design (LEED) or Building for Ecologically Responsive Design Excellence (BERDE) for their condominium and horizontal projects.

In our view, adopting green and sustainable features will play a crucial role in future-proofing not only office towers but also residential developments within and outside Metro Manila post-Covid.

EXPLORING JOINT VENTURE DEALS IN LAUNCHING UPSCALE TO LUXURY PROJECTS
We recommend that property firms seize opportunities in the market by partnering with foreign developers for the development of more luxury projects. In our view, these joint ventures (JVs) should help local players differentiate their projects in the market.

Developers should also emphasize the JV projects’ upscale amenities, integrated development features, topnotch concierge services, and strong potential for capital appreciation, which are important considerations for discerning investors and end-users.

EXPANSION FROM CITIES TO SUBURBS
More and more investors and end-users are willing to gravitate from the cities to the suburbs. We have seen people who own condominium units in Metro Manila expressing interest in purchasing horizontal units outside central business districts (CBDs), particularly in central and southern Luzon.

Since the start of the pandemic we have seen a spike in demand for resort or leisure-themed horizontal projects. We see this trend persisting beyond 2023 as more Filipinos choose to feel the suburban vibe.

With this trend, we see the demand for resort-oriented residential projects outside of Metro Manila thriving. As a result, developers have aggressively launched new house-and-lot and lot-only projects outside of Metro Manila as they seize this growing demand from end-users. Expect more masterplanned communities in the fringes as connectivity in key regions improves.

(To be concluded next week)

 

Joey Roi Bondoc is the research director for Colliers Philippines.

Katy Perry’s $225-million payday began in 1908

KATY PERRY sold the rights to most of her music for a cool $225 million last month to Litmus Music. It’s the latest in a series of high-profile payouts. Tempted by eye-popping offers from investment firms like Hipgnosis and Shamrock Capital, Paul Simon, Dr. Dre and other artists have sold out — literally.

While the scale of these transactions may be unprecedented, they’ve been a long time coming. These deals are the consummation of a revolution that began over a century ago when music copyright first began its improbable metamorphosis from a limited legal claim to something that can be monetized on a mass scale.

Though the US Congress passed the first copyright laws in 1790, they didn’t extend those protections to musical compositions until 1831.

But the new copyright referred to something very specific: publishing the lyrics and notes as a piece of sheet music.

Anyone who bought a piece of sheet music effectively purchased the right to perform the music, with royalties going back to the composer. But this was a one-time transaction: A single copy of sheet music gave the buyer the right to perform the music an infinite number of times, whether in the comfort of their own home or in front of a paying audience.

This put composers in a bind. In the 1890s, Paul Dresser came out with “On the Banks of the Wabash, Far Away,” a sentimental ditty about lost love in Indiana. It sold 500,000 copies of sheet music, earning about $100,000 — one of the most profitable songs of its day. But Dresser never saw a cent from the many performances of his piece.

Nor did he make money off the recordings. The new methods of reproducing musical sounds — the phonograph, which played music from wax cylinders; the gramophone, which relied on discs; and so-called player pianos, which “read” paper rolls — undermined conventional copyright law. They created a situation where, as historian Alex Cummings has written, “nothing was sacred.”

The firms pushing these new technologies argued that, legally speaking, these were performances, not recordings. As such, when a phonograph or player piano company wanted to get the right to produce records or rolls, it simply bought a single copy of sheet music before selling mechanical versions to a mass audience.

Infuriated composers, artists, and performers filed lawsuits against the usurpers, making what now seems like a pretty reasonable claim: mechanical music reproduction wasn’t a performance but a pirated copy. Yet when the Supreme Court heard a key case involving a player piano company in 1908, it ruled against the artists. While a pirated paper copy of a song sheet was still a copyright violation, a gramophone record based on that song was not.

In fairness, the court came to this decision out of deference to the original wording of the 1831 act, which did not anticipate the new technological advancements. Consequently, Justice Oliver Wendell Holmes noted in his decision that Congress might want to revise the law to acknowledge that “anything that mechanically reproduces [a] collocation of sounds ought to be held a copy.”

Congress, which passed the Copyright Act of 1909 in response, arguably muddied the waters further. It gave the copyright holder (typically the composer and the music publisher) the right to choose who made the first mechanical reproduction of the work. After that point, though, anyone could record or make copies of the song by paying the copyright holder a compulsory fee of two cents for every copy manufactured.

Members of Congress couldn’t wrap their minds around the idea that a recording of a song deserved protection on par with the underlying lyrics and score. Instead, they tried to frame the problem entirely in terms of the original composer and publisher. This effectively legalized the sale of bootleg copies of recordings.

By the 1960s, the widespread adoption of magnetic tape made large-scale piracy even easier, and when the culprits began issuing illicit copies of albums by artists such as Bob Dylan and the Beatles, it pushed the record companies to take action. They began by lobbying New York State to pass anti-piracy laws that other states quickly emulated.

Though they did not confer copyright, these laws set the stage for Congress to pass the Sound Recordings Act of 1971, which allowed companies to copyright their recordings. A subsequent act passed in 1976 conferred additional protections, giving corporations a 75-year claim to any recordings they created.

In the process, recordings became something that could be bought and sold like any other investment, their value determined by the belief that a popular song will remain so for the foreseeable future. The rise of digital audio files, where the cost of copying and distributing music drops to zero, has made ownership of the copyright — the music and lyrics on the one hand and the recording on the other — an increasingly attractive proposition.

In Katy Perry’s “If You Can Afford Me,” she sings: “Don’t make a bet if you can’t write the check … Cause, I can be bought, but you pay the cost.”

Thanks to the decades-long evolution of musical copyright, investors have concluded this is definitely a bet worth making, no matter how high the cost. — Bloomberg Opinion

Blending art and tech (and, no, not NFTs)

Charming turntables to support art scholars

THE ARTISTIC career of Spanish-born Filipino painter Juvenal Sansó was at its most secure and happy when he made the colorful Breton House Series. Now printed in high-resolution onto hi-fi Rega turntables, the cheerful Brittany houses he painted can be part of a unique listening experience.

The limited-edition Sansó x Rega turntables were unveiled at Fundacion Sansó early in October in a music lounge event, and are now available for purchase at their museum shop. They are a collaboration between the UK-based, world-class hi-fi audio brand Rega and the foundation dedicated to Mr. Sansó.

Most importantly, part of the sales from the turntables will be donated for study grants of students from the College of Fine Arts of the University of the Philippines (UP).

“The collaboration with Rega is mainly a means to fund the education of budding artists. We’re able to expand the reach of Sansó’s art to music lovers and audiophiles and raise money for the students,” Ricky Francisco, Fundacion Sansó museum director, told BusinessWorld at the launch.

The painting chosen to grace the rare turntables was the iconic Impact of Creation, inspired by the artist’s visits to Brittany.

It portrays charming, whimsical houses dotting the coastline, azure skies and seas, and fishing boats in the foreground. The cheerful colors give it an optimism, something they noted when choosing it to be the turntable motif.

“Those who don’t know Sansó or are not art lovers always first react to his Breton House Series, since they’re very bright and put people in a good mood,” said Mr. Francisco. “It’s something they can happily display in their homes.”

If all 150 limited-edition sets are sold, the institution will be able to raise a little over a million pesos, which will be enough to support several second- and third-year college students until they graduate.

Mr. Sansó, who was a UP Fine Arts alumnus, had always had a mission to help art students achieve their dreams, secretly giving scholarships out of his own pocket to select UP Fine Arts students in the past.

“The turntable, going beyond being a collectible, is merely a continuation of his vision,” said Mr. Francisco. In fact, the institution has been providing scholarships and grants to over 30 Fine Arts students from Bulacan State University, Far Eastern University, and UP over the past few years.

He added that recipients will be chosen based on teachers’ recommendations. They will be supported until they graduate, after which Fundacion Sansó will host their first exhibition and introduce them to galleries, collectors, and mentors to kickstart their careers.

The Sansó x Rega turntable system is available exclusively at the Fundacion Sansó Museum Shop in San Juan, which has an online shop at fundacionsanso.com. It can also be experienced in person by visiting Fundacion Sansó and its partner galleries, Art Lounge Manila in the Podium, Galerie Joaquin at the Powerplant Mall, and Galerie Nicolas in Greenbelt 5, Makati. — Brontë H. Lacsamana

ACEN secures P5-B loan for corporate spending, RE projects

ACEN Corp. has secured a P5-billion loan from a local bank to partly fund the Ayala-led energy company’s renewables projects, it said on Monday.

“The proceeds will be used for general corporate purposes, including but not limited to capital expenditures for RE (renewable energy) projects of the ACEN Group,” the company said in a message sent via Viber.

The loan was closed on Friday via a term loan facility with Metropolitan Bank & Trust Co., the company said in a disclosure to the stock exchange.

In March, ACEN said that its board had approved the procurement of additional credit facilities of up to P32 billion.

In August, it obtained a P10-billion term loan through credit facilities with China Banking Corp. of up to P5 billion, and omnibus credit lines with Mitsubishi UFJ Financial Group of up to $50 million.

To date, ACEN has around 4,200 megawatts of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The energy company is targeting to expand its renewable energy portfolio to 20 gigawatts by 2030. 

At the local bourse on Monday, shares in the company went up by three centavos or 0.58% to P5.21 apiece. — Sheldeen Joy Talavera

SMDC brings Korean superstar Lee Min-ho to Manila

SM Development Corp. (SMDC) tapped Korean superstar Lee Min -ho as its new brand ambassador, as it seeks to attract more overseas buyers.

Mr. Lee, the star of hit Korean dramas Boys Over Flowers and City Hunter, visited Manila to celebrate the 65th anniversary of the SM Group. Filipino fans flocked to the private event at the SMX Convention Center on Sunday.

SMDC President Jose Mari H. Banzon told BusinessWorld that the company’s decision to get Mr. Lee as its brand ambassador is a reflection of the growing importance of the international market.

“The market of SMDC is international. (In fact) more than 70% of our sales are from overseas Filipinos,” Mr. Banzon said.

“So, I think it is very appropriate that we get an international personality to match not only our market but also our standards,” he added.

The Korean superstar is the face of SMDC’s “Step into Luxury” campaign as seen in billboards scattered across Metro Manila.

Mr. Lee will be the ambassador for SMDC’s premier high-end properties, namely Gold Residences, Glam Residences, Sail Residences and Sands Residences.

Gold Residences is a condominium located in Parañaque, just across the Terminal 1 of the Ninoy Aquino International Airport. One-bedroom and two-bedroom units at Gold Residences range from P6.8 million to P15.7 million.

Meanwhile, Glam Residences, located along EDSA in Quezon City, offers studio, one-bedroom, and two-bedroom with prices ranging from P5.7 million to P13.9 million.

Sail Residences, named the gem of the Mall of Asia district located in Pasay, offers one-to-three-bedroom units with balconies. Units are priced between P8.6 million to P24.6 million.

Sands Residences, located along M.H. Del Pilar Street in Malate, Manila, features studio, one-bedroom and two-bedroom units. Unit prices range from P6 million to P17.5 million. — Justine Irish D. Tabile

Actress Suzanne Somers, 76

SUZANNE SOMERS (far left) with her co-stars Joyce Dewitt and the late John Ritter, in a publicity shot for the 70s hit show Three’s Company. —IMDB.COM

ACTRESS Suzanne Somers, best known for her role on the television show Three’s Company and for fitness and health business ventures, died Sunday at age 76, according to a statement from her spokesperson.

“Suzanne Somers passed away peacefully at home in the early morning hours of October 15th,” Ms. Somers’ spokesperson, R. Couri Hay, said in a statement.

“Suzanne was surrounded by her loving husband, Alan, her son Bruce, and her immediate family,” the statement continued. “Her family was gathered to celebrate her 77th birthday on October 16th. Instead, they will celebrate her extraordinary life, and want to thank her millions of fans and followers who loved her dearly.”

The New York Times reported Ms. Somers died at her home in Palm Springs, California.

Ms. Somers, who launched to fame as Chrissy Snow on the popular 1970s sitcom, was diagnosed with breast cancer in 2000, and announced in late July that it had returned.

“I had breast cancer two decades ago, and every now and then it pops up again and I continue to bat it down,” she said in an Instagram post on July 31. “This is not new territory for me. I know how to put on my battle gear and I’m a fighter.”

Beyond appearances on television and movies, Ms. Somers was also known for writing numerous books, mainly focused on health and nutrition, as well as pitching fitness products like the Thighmaster. — Reuters

Eastern Communications’ cloud platform to block data breaches

TELECOMMUNICATIONS company Eastern Communications has launched its cloud-based security platform Sophos Central Intercept X Advanced (CIXA) which aims to prevent data breaches and block ransomware attacks.

“We’re proud to introduce CIXA at a time when businesses need it most. With CIXA, businesses of all sizes can guarantee more proactive threat prevention, advanced malware protection, scalability, and flexibility toward cyber resilience,” said Edsel C. Paglinawan, Eastern Communications vice-president and head of product and innovation, in a media release on Monday.

The platform aims to protect organizations from cyberattacks, Eastern Communications said, adding that CIXA uses combined advanced technology such as endpoint detection and response, anti-malware, and machine learning-based protection to detect and block malicious activity from affecting a system.

“As digital adoption becomes more crucial today, Eastern Communications continues to remain agile and innovative as we continue to encourage businesses to evolve,” Mr. Paglinawan said.

Aside from preventing data breaches and ransomware attacks, the platform offers technological advancements preventing phishing e-mails and advanced malware.

The company said that CIXA is compatible with industries and businesses that are looking for low-cost cybersecurity solutions that don’t need new hardware.

The telecommunications company offers cybersecurity solutions like next-generation firewalls, vulnerability assessment and penetration testing, endpoint security, and protection against distributed denial of service attacks. — Ashley Erika O. Jose

National security: Should business worry?

PHILIPPINE STAR/KRIZ JOHN ROSALES

The Philippines continuously faces threats from both internal and external sources. The evolving trends and issues on security, such as territorial expansionism, volatile geopolitical competition and conflicts, the pandemic, internal threats to peace, terrorism, and natural and man-made calamities, continue to challenge the country. They can potentially affect our national defense and can pose an adverse impact to national development.

A holistic approach is needed for defense and security that extends beyond managing traditional military threats. The priority plans and programs to mitigate these issues were discussed by the Senior Undersecretary of the Department of National Defense (DND) Irineo C. Espino during the Sept. 20 Management Association of the Philippines (MAP) General Membership Meeting at the Ceremonial Hall of the Marriott Grand Ballroom.

He affirmed the overall thrust that “the Defense department is guided by its vision to guarantee the country’s security, territorial integrity, and sovereignty; continue to be a reliable partner in national development, and a strategy-player in the Asia-Pacific region.”

He added that the DND has a multi-faceted role of not only addressing defense issues but is also committed to ensuring the well-being and development of the nation and the Filipino people. A whole-of-nation approach is needed to carry out this mandate.

Mr. Espino likewise said that the major concern of the business sector is the peace and order in the country or the internal threats to peace. Insurgents attempt to derail operations of businesses, but the Defense Undersecretary assures that the insurgency in the country will be cleared before the year ends. This will ease the worries of existing businesses and startups — and hopefully pave the way for their growth.

The intent of the DND is to focus on external threats and come up with a capable defense posture to protect the country. The armed forces give priority to the commands that address external threats and most of these are directed to China.

The DND coordinates with the United States (US) government for joint maritime activities. According to Mr. Espino, China’s continued aggressive actions in territorial and maritime disputes, such as the West Philippine Sea, will remain a priority concern due to its implications to the country’s sovereignty, sovereign rights, and jurisdiction. Joint activities with our foreign counterparts are ongoing to provide solutions to address this problem. Equipment from other countries were also being procured, such as naval vessels and aircrafts, mostly donated by the US to the Philippine Air Force.

The Philippines needs to upgrade its weaponry through modernization. However, the challenge in upgrading the defense capability in the country is the financial cost. The support of the President alone is not enough to fund all the expenses needed to produce equipment. The DND specifies a requirement for suppliers to include in their packages: training, maintenance, and technology exchange. The DND likewise aims to produce this equipment in the future.

Aside from the hardware, the DND will also undertake re-educating and re-skilling of its personnel for competency enhancement. The modernization shift pushes the DND to opt for optimal deterrence and sustainability as it aims for an ambitious goal of achieving a modern, self-reliant, and combat-ready defense force.

Mr. Espino gave an update on the Reserve Officers’ Training Corps (ROTC), saying that it will be brought back to schools as a form of military training. This will be an orientation for emergency purposes for young people to be combat-ready. Aside from this, other expertise will be utilized, such as medical and other services.

The DND will also continue its engagement with security partners for joint development of technology and industries, and capacity-building through military training to improve the country’s security and contribute to global stability. The department will improve coordination with both the National Government and local governments for disaster risk reduction as well as maximize its resource generation through the utilization of defense potential.

The DND gave the reassurance that no war is being anticipated, yet, should a war arise, the DND’s plan to protect its people is in place. The Philippines can expect support from other countries, such as the US, Australia, Japan, and Korea, and continuously engages in bilateral talks with them to strengthen these alliances.

As to the preparation for natural calamities, Mr. Espino said that there are preparations for the use of food stamps in strategic areas in the country, including transportation and funding. Other government agencies are prepared for any disasters that may occur while local government units (LGUs) will be the first respondents to report their requirements for immediate response on disaster resiliency.

The DND calls for engagement and collaboration with the private sector to facilitate investor confidence in securing sensitive sites and communities.

A partnership between DND and MAP can help in establishing a well-secured Philippines, not only for the security and protection of businesses but for all the Filipino people to live comfortably on their own land. Trade and investments from foreign countries are crucial in the economic growth of the Philippines, but an assurance of security should always be prioritized.

In reciprocity, the MAP offered its assistance, especially in management expertise, to help the DND carry out its strategic shift from internal defense to external focus.

The DND shared its vision for a better country for the Filipino people. The department can play a vital role in the country’s overall national security thrust to support Philippine development. As Mr. Espino said, “under the ambit of the DND’s core values of patriotism, professionalism, and good governance, the department shall be able to fully and successfully transform into a modern, responsive, effective, and future-oriented defense force capable of attaining its mandate.”

 

Benedicta “Dick” Du-Baladad is president of the MAP and the founding partner and CEO of Du-Baladad and Associates or BDB Law.

map@map.org.ph

dick.du-baladad@bdblaw.com.ph

In Bali, ‘sea-sun-sand’ tourists threaten ancient rainforest

A MAN carries a surfboard in Nusa Dua, Bali, Indonesia, Nov. 17, 2022. — REUTERS

BULELENG, Indonesia — Deep inside his tribe’s sacred rainforest on the Indonesian holiday island of Bali, Indigenous guide Putu Willy Suputra looks on in disbelief as a group of tourists video themselves mimicking monkeys by swinging on a long, woody vine.

Mr. Suputra is a member of the 20,000-strong Adat Dalem Tamblingan Indigenous community who have lived in northern Bali since the 9th century and want rights to curb tourism and protect their rainforest and lake.

“These types of things really hurt me,” the 27-year-old said. “That liana will definitely die.”

“If we go into this forest, it is enough to walk, see, hear and leave a footprint, but we don’t need to do anything extra — like picking something or swinging from a tree,” he added.

“Most people are (only) thinking about the four S’s — sea, sun, sand and self … They don’t care about the culture of the (Balinese) people.”

From Venice to Bhutan, prized vacation destinations are seeking to limit tourism to protect locals and cultural sites, but without scaring off too many job-creating visitors with exorbitant taxes, hiking fees and other charges.

Bali, one of thousands of islands in Indonesia, is welcoming back visitors after COVID-19 restrictions, but critics fear the culture, traditions and rights of the predominantly Hindu island are under threat from mass tourism.

Bali has targeted 4.5 million international visitors for 2023 — more than its estimated 4.4 million residents — in a rebound from almost none during pandemic lockdowns. Before COVID, Bali had about 6.2 million visitors in 2019.

Tourism is putting huge pressure on the island’s limited infrastructure and has led to problems including soaring land prices, large developments, traffic jams clogging narrow streets and trash on once-pristine beaches.

The Alas Mertajati Forest and Lake Tamblingan are a near three-hour drive from the spas, yoga retreats, beach resorts and Bintang beer T-shirts of southern Bali, which has been Indonesia’s main tourist magnet for decades and made popular by the bestselling memoir Eat, Pray, Love.

The handful of tourists who make it to mountainous Buleleng regency usually sleep at homestays and go trekking or cycling, visit the ancient temples or simply take in the slow pace of rural life among coffee and clove plantations.

‘SUPPORTING ACTORS’ IN MASS TOURISM
Indonesia has in the last two years considered huge hikes in ticket prices to some of its most popular tourism sites, such as the Komodo national park which is home to the famous dragons — the world’s largest lizards — and the Borobudur Buddhist temple.

The plans spurred protests by tourism workers who feared for their jobs and were eventually scaled back.

Putu Ardana, a village elder in the Adat Dalem Tamblingan community, said Indigenous peoples should be able to decide what type of tourists can visit sacred areas. He said the emphasis should be on research, education and culture.

“Tourism is just a bonus. If we conserve our tradition, culture or farms (and) we do what we do best — people who like seeing our culture will come,” the 67-year-old said.

“What makes me sad is the actors of tourism in (southern Bali) are not actually Balinese, they’re people from Jakarta, investors from abroad … We Balinese are just supporting actors,” he added, with tears in his eyes.

The community wants government recognition of their “customary rights” to manage the forest and lake as ancestral lands dating back centuries.

“It is a race against time — the faster we can get recognition for the customary forest and lake, the sooner we can implement all the things needed to conserve it,” Mr. Ardana said.

In 2016, Indonesia announced that it would return customary lands to Indigenous peoples. To date, the country has recognized about 153,000 hectares (378,071 acres) for 108 communities, the government says.

President Joko Widodo vowed to return 12.7 million hectares of such land to Indigenous people, but progress has been slow. Land rights activists said the recognition process is cumbersome and prone to political interference.

A spokesman for Indonesia’s ministry of environment and forestry declined to comment.

Mr. Sumarsono, the head of the Bali natural resources conservation agency, said the Adat Dalem Tamblingan could apply to the central government for customary rights for the forest and lake. To date, this has not happened, he said.

Before this, however, the Adat Dalem Tamblingan need official recognition as an Indigenous group from both the local and central governments. An application was filed in 2019 but little progress has been made despite repeated requests, community members said.

The forest and lake have previously been designated as conservation areas, under which tourism must give priority to nature, for instance by banning permanent buildings and by limiting visits, Mr. Sumarsono said.

“In principle, it is not for mass tourism,” he added.

TOURISM A THREAT TO NATURE
A landmark global deal to protect nature agreed in Montreal late last year enshrined respect for the rights of Indigenous peoples as a key element for conservation.

Tourism can lead to the destruction of natural habitats, particularly forests and often land where Indigenous groups reside, said Danny Marks, assistant professor of environmental politics and policy at Dublin City University.

Developers often clear forests and mangroves and drain wetlands to make way for hotels, resorts and malls in Bali — and golf courses and train lines in nations such as Vietnam and Mexico, he added.

Governments have also displaced Indigenous communities to designate land as national parks or protected areas. Indigenous peoples are sometimes then branded as illegal settlers who can be arrested, Mr. Marks said.

“If tourism wants to ensure nobody is left behind, tourist operators and companies need to work directly with Indigenous communities, businesses, and NGOs — and governments should grant formal rights to their ancestral lands,” he said.

Rakhmat Hidayat, a regional manager at nonprofit think-tank WRI Indonesia, recommended “eco-educational tourism” for Indigenous peoples.

Such tourism can teach visitors about local culture, forest plants and ecosystems, offer tree adoption, and help develop forest-related products like honey or crafts.

“The community benefits economically while still being able to live in harmony with their traditional culture,” Mr. Hidayat said.

CRYSTAL-CLEAR WATERS
Shrouded in mountain mist, Lake Tamblingan, which supplies fresh water to villages and resorts across Bali, is believed by the Adat Dalem Tamblingan people to have medicinal and life-giving properties.

Village elders often swap stories of dragons appearing from the crystal-clear waters, or giant fish the size of boats that once caused a shocked, local fisherman to faint.

The surrounding 1,339-hectare Alas Mertajati Forest was mapped by local youths as part of community attempts to re-connect young people with their rainforest and gain customary rights.

Like his ancestors, nature is a huge part of guide Suputra’s identity, and he sees the Indigenous fight for rights as important for all of Bali. But he fears the holy rainforest will be harmed by ever more outsiders.

“I feel at peace in the forest. I can look deep into myself. (But) one day I will have a child or a grandchild, and I worry that it will be changed,” he added. — Thomson Reuters Foundation

Knight Frank: Manila office occupancy cost 5th cheapest in Asia-Pacific

The country’s capital ranked 19th out of 79 markets in the Global Occupier Market Dashboard by real estate consultancy firm Knight Frank in the second quarter. The report compares the occupancy costs* for office space across the world’s leading real estate markets. Manila’s occupancy costs for office space amounted to $32.78 per square foot (sq. ft.) a year, making it the fifth-most affordable office space among 22 Asia-Pacific markets.

Knight Frank: Manila office occupancy cost 5<sup>th</sup> cheapest in Asia-Pacific

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