BPO, tourism remain CV’S top growth drivers in 2013

Information technology – business process outsourcing ( IT- BPO) and tourism sectors remained top propellers of economic growth in Central Visayas, helping dash fears that the twin calamities might have hampered the region’s overall growth last year.

The National Economic Development Authority ( Neda- 7) has yet to announce the official growth figure the year past, but reported in its year- ender journal that the 7.6 percent regional gross domestic product (GRDP) for the first half of 2013 exceeded the 7.5 percent-target.

“This is why we are confident the natural calamities that struck the region in the latter part of the year will not hamper Central Visayas’ overall performance,” Neda-7 said.

Central Visayas’ most recent GRDP, however, was lower compared to what it logged last year. In 2012, the region’s economy expanded by 9.3 percent.

But while lower than the growth in 2012, the GRDP in Central Visayas continued to surpass the national gross domestic product since 2010, Neda-7 said.

In 2010, the region’s GRDP skyrocketed to 12.9 percent while the national GRDP was pegged at 7.6

percent. One year later, Central Visayas grew by 6.8 percent compared to the national rate of a measly 3.6 percent.

Tourism “With the increasing number of foreign and domestic visitors, tourism continues to play a key role in the regional economy,” said the Efren Carreon-led Neda-7 in a report.

The Department of Tourism ( DOT) hit 1.72 domestic and foreign visitors arriving in Central Visayas for the first half of 2013 alone. This was 14.8 percent higher than 2012’s 1.5 million.

The number of foreign and domestic arrivals has experienced double- digit growth since 2010.

Domestic tourists continue to dominate the sector, although their number declined slightly to 60.9 percent to “give way for growth in the number of foreign tourists,” whose share rose to 39.1 percent.

Neda-7 said while Cebu continues to enjoy a big share of the visitor arrivals, Negros Oriental showed the highest growth where it posted 13.7 percent over its rate last year compared to Cebu’s 13.4 percent.

The number of visitors arriving in Bohol also grew 26.4 percent in the first semester of last year to corner 12.7 percent of the total, while Siquijor was unable to sustain its 2012 momentum by posting a mere 1.2 percent compared to 2012’s 17.7 percent.

The increase in visitor arrivals was reflected in the figures reported by the aviation sector. The sector reported 5,684 international flights in 2013, 18.2 percent more than 2012’s 4,807. Domestic flights also increased faintly by 3.2 percent to reach 31,627.

There was also an increase of 13.8 percent in shipcalls or 91,241 against 80,190 in 2012 and a growth of 6.5 percent in the number of passengers which reached over 13.3 million in 2013. BPO, construction The IT-BPO industry, meanwhile, continued to fuel the region’s economic growth with revenues that have been escalating since 2010.

In the first three quarters of 2013, it brought in P435.4 million to the government, 84 percent rise from the annual revenue in 2012.

The sector’s growth is expected to increase further with the entry of three new BPO companies in Cebu. It is seen to continue to expand with Cebu rising one notch to land top 8 in Tholons Top 100 Outsourcing Destinations in the world.

According to Neda-7, robust growth in tourism and IT-BPO sector, along with the increasing remittances from overseas Filipino workers, spurred development of residential properties, hotels, retail outlets and office spaces.

Neda- 7 reported that 4,891 new construction projects were approved in the first semester of 2013 alone with an aggregate cost of P7.83 billion.

The Board of Investments also approved 13 projects in the same period, majority of which were for mass housing with a total cost of P3.22 billion.

The economic authority, however, said it continues to monitor the export manufacturing industry despite its weak performance. From January to July last year, the value of merchandise exports dell 16.1 percent to P1.97 billion from P2.35 the year before.

Agriculture also exhibited a continued downward trend with production dropping 36 percent in 2013 after falling 15 percent the previous year. The year-end figure is expected to be even worse considering the effects of the earthquake and super typhoon.