Diplomacy spurs travel, investments

Good diplomatic relations and business ties with different countries are vital in attracting tourists and foreign direct investments to the Philippines, an economist said.

Despite the increasing number of tourists, Rizal Commercial Banking Corp. chief economist Michael Ricafort said during Daily Tribune’s online show Straight Talk last week that the Philippines has to catch up with its Southeast Asian neighbors.

“(The number of arrivals) are drivers in raising revenues and China also infuses higher foreign direct investments, so that’s an opportunity going forward,” Ricafort said.

“That’s a potential source of growth and additional productivity for the country, which means more jobs,” Ricafort added.

He mentioned that the number of tourist arrivals would mean more jobs, more revenues that generate more businesses, and greater growth.

‘Right policies’ implemented

Ricafort said putting with the right policy is a major draw for foreign direct investments.

However, he said that the public would just need to be “patient” regarding tourism growth as the country is still recovering from the pandemic.

“We know what to do, especially the economic team whose members are competent, credible and experienced, they have a good track record. So the foundations are there,” Ricafort said.

“We have yet to see a significant number of foreign tourists from China and other Asian countries, we have to see that but it’s the right recovery part; it’s doing well, at least the economy is recovering,” Ricafort added.

However, Ricafort underscored the government’s role in encouraging and helping the environment to be more conducive to business, creating more investments, generating jobs, and boosting tourism aside from improving the productivity of agriculture and manufacturing.

“It’s very important to reap the benefits of the demographic sweet spot, as the majority of the population are of working age. So that would help,” Ricafort said.