Threat to Philippine tourism

By: Modesto P. Sa-onoy

The spat between the Philippines and the United States due to the continued detention of Senator Leila de Lima may have grave implications to the tourism industry in the Philippines. Three American senators inserted in the US 2020 budget a provision banning the entry to the US of Filipino officials who are directly responsible for the restrictions of her freedom of movement that until now have not been brought before the court.

In retaliation, the Philippine government declared it will impose a visa requirement for Americans entering the Philippines. For now, American citizens enter the Philippines without the need for a visa for a visit not exceeding 30 days. This privilege is not limited to Americans but to a reported 159 other nationalities.

On the other hand, Filipinos going to the US must secure a visa. That seems unfair but the Philippines, a former American colony had extended that privilege to Americans as a matter of course and we did not complain.

There are serious concerns that requiring Americans to get a visa to visit the Philippines might adversely affect the country’s tourism industry and discourage potential investors who usually come first as tourists. The tourism industry believes that this requirement is “potentially high price to pay over an issue that only affects a few but powerful politicians in the Duterte administration.”

Indeed, the people involved are only a few but imposing a visa would mean thousands of Americans who will not find the effort worth their while to visit the Philippines. Considering the close and tough competition among Asian countries for tourists, the fear is well-grounded.

 

Malacanang however clarified that Filipinos with American citizenship are not to be included. That is a little consolation and concession because many Filipinos in America have dual citizenship.

 

The threat of the visa requirement, however, is not yet an official decision but merely a public expression of intent. Nevertheless, local and foreign business groups are uneasy that they might be the collateral damage in what they call, “government’s knee-jerk response to a US ban on certain Filipino officials for alleged human rights violations.”

 

Specifically, President Rodrigo Duterte had ordered the three American lawmakers barred from entering the Philippines after they sponsored a resolution to ban against Filipino officials who had a hand in the imprisonment Senator de Lima. That should have been enough and a normal manner to express the country’s displeasure in the actuation of the US senators. All others have nothing to do with their actions even if the resolution had the bipartisan support of the US Congress.

President Duterte however, considered the US action as “an affront to Philippine sovereignty.”.

If imposed the policy limit the number of American visitors who account for the third-largest group of foreign travelers in the Philippines. Over one million Americans visited the Philippines in 2018. Considering the number of consular offices in America, securing visas for the Philippines would be a big hassle, expensive and a test of patience.

The Philippines lag in tourist arrivals. Thailand has 35 million tourists, Malaysia 25 million and even small Vietnam has 15 million. The Philippines has only 8 million.  Only 1.12 million Americans visited Thailand which means the Philippines is a favorite place for Americans attracted mainly because the Philippines has become a place they can readily interact. That number can plunge quickly to a small number. It is not good business policy to make it hard for customers. After all we spend millions to try to get them here.

In the highly competitive tourism business, a visa requirement is always a disincentive unless the urge is too great to ignore. Thus, a visa requirement can slow down the entry of more Americans at a time when we are attracting more tourists, a very big source of national income. Indeed, tourism is such a money-making industry that the budget of several countries rely on it rather than increase the tax burden on their people.

Except for the threat and specifically naming the banned personalities, the Duterte administration has not yet decided and we hope it does not. Too many people depend on tourist arrivals. There are other ways to express our sentiments against “American interventionism” if one might call that. The tit-for-tat decision I believe is sufficient because we have also to see the rationale for the US congressional resolution.