Philippines Poised to Become Aviation Hub In Asia by 2028

Philippines Poised to Become Aviation Hub In Asia by 2028

By Kisho Kumari Sucedaram

Bernama (Malaysia)

02 October 2024

MANILA, Oct 2 (Bernama) — The Philippines aviation industry is on the cusp of a significant transformation and is poised to become an aviation hub in Asia by 2028, lifted by its airport privatisation initiatives and the completion of its new airport.

Department of Transportation Secretary Jaime Bautista said this advancement would be fueled by increased investment and private sector involvement in crucial areas like infrastructure, human capital, and sustainable development.

“We are in the process of privatizing the operations of selected regional airports as part of the strategy to improve airport operations and maintenance.

“The formula has been proven successful in the privatization of the operations of international airports such as Clark International Airport and Mactan-Cebu International Airport,” he said on the sidelines of the 2024 Aviation Summit Philippines today.

He said the government has difficulty modernizing the port because of the procedures and investment policies that need budgeting and finance.

So, we look at the private sector to help us modernize the airport. We’re privatizing just the operations as the private sector is more efficient and customer-centric,” he said.

Recently in April, the country has undertaken the privatization of Ninoy Aquino International Airport (NAIA) to drive economic growth and position the Philippines as a premier tourism and investment hub.

The contract was awarded by the government to the consortium led by San Miguel Corp. (SMC) which offered the Philippines government a revenue share of 82.16 per cent.

Under the contract, the group, which includes the operator of South Korea's Incheon airport, would manage the Philippines' main gateway until 2039. It is the third major airport privatization in the country.

Through public-private partnerships (PPP), Bautista expects to finally raise NAIA’s capacity to 62 million from 35 million passengers per annum.

“The airport rehabilitation should generate more than 58,000 jobs due to increased tourism arrivals and spending,” he said.

The country will also see another new airport, the New Manila International Airport, which is also known as Bulacan International Airport, which is under construction on the coastal area 35 kilometers north of Manila, the capital of the Philippines.

The Philippine economy is projected to sustain over six per cent growth through 2029 and inflation to stabilize at three per cent.

— BERNAMA

Philippines travel industry heading toward record high

Philippines travel industry heading toward record high P5.4 trillion

Story by Elijah Felice Rosales
Philstar Global 
29 June 2024

MANILA, Philippines — The Philippine travel industry is heading toward an all-time high value of P5.4 trillion this year, propelled by efforts to boost tourism in the provinces and upgrade aviation infrastructure.

Based on forecast by the World Travel and Tourism Council (WTTC), the country will grow its travel and tourism to new highs in 2024, particularly on economic contribution, job generation and visitor spending.

WTTC projects travel’s contribution to the economy to rise by almost a quarter to P5.4 trillion this year, from P4.34 trillion in 2023.

Likewise, travel will generate at least 9.5 million jobs for Filipinos, comprising one in every five of the labor force. Also, domestic visitor spending is seen to go up to P3.7 trillion, while foreign tourist expenditure is estimated to hit P715.6 billion.

WTTC president and CEO Julia Simpson said travel would benefit from public and private efforts to upgrade regional airports. The Department of Transportation (DOTr) is investing P14 billion for the development and reconstruction of provincial gateways this year.

Similarly, the DOTr is arranging public-private partnership contracts for the upgrade of airports in Bacolod, Bohol, Davao, Iloilo, Kalibo, Puerto Princesa and Siargao.

Apart from this, Simpson said travel would gain from the impending turnover of the Ninoy Aquino International Airport (NAIA) to the New NAIA Infrastructure Corp. led by San Miguel Corp.

The DOTr is set to hand over NAIA to the consortium by September, and from there the airport will undergo a P170.6 billion rehabilitation in the next 15 years.

WTTC estimates that travel and tourism will raise about P9.5 trillion for the Philippine economy by 2034. By then, the industry will take up 22 percent of the economy, creating jobs for as many as 11.9 million, sustaining one in every five Filipinos.

Regionally, WTTC believes Southeast Asia will grow its travel segment by 21 percent to hit P21 trillion this year. Additionally, jobs in travel and tourism will balloon to 42.4 million, expanding the role of the industry in livelihood generation.

The government is working on the improvement of transport infrastructure across the Philippines to enhance inter-island connectivity, benefitting industries reliant on tourism.

For one, the rehabilitation and upgrade of NAIA is expected to increase the passenger capacity of the airport to 62 million a year, from 32 million at present.