Shipment of goods

Sun.Star Cebu <> Tuesday, July 01, 2008

BY NANCY R. CUDIS and DEBRA M. ESTERO, Sun.Star Staff Reporters

BUSINESS organizations in the province call for a fast resolution of the Sulpicio Lines tragedy that prompted government to ground all its passenger and cargo ships of the shipping company.

“Sulpicio Lines is a major player in cargo shipments and (the hold order) will affect the flow of goods,” said Eric Ng Mendoza, president of the Mandaue Chamber of Commerce and Industry (MCCI), during a phone interview yesterday.

The MCCI, though, has not yet received any complaint from member-companies affected by the hold order. Other business organizations and industry groups have also not heard from members in relation to the suspension of operations of Sulpicio Lines ships.

The Department of Trade and Industry (DTI) and the Cebu Chamber of Commerce and Industry have also not received any complaint.

Transportation and Communication Secretary Leandro Mendoza last week ordered the suspension of operations of all passenger and cargo vessels of Sulpicio Lines, pending the investigation on the sinking of m/v Princess of the Stars.

But Roland de Leon, industrial relations officer of Sulpicio Lines, told Sun.Star Cebu over the phone yesterday that all of Sulpicio’s 11 cargo ships are still operating.

He said the Maritime Industry Authority (Marina) has already inspected the cargo ships. “Only the passenger ships are grounded,” he said in Visayan.

Tragedy

MCCI’s Mendoza said no one in the group raised the concern. But he said that it is possible that there are some Cebuano businessmen who had cargoes onboard the m/v Princess of the Stars.

“But they take it as a tragedy they have to bear,” Mendoza said.

Jun Monzon, secretary general of the Mactan Island Chamber of Commerce and Industry (MICCI), echoed Mendoza’s suspicion.

He said the MICCI board will ask its members if any of them are affected by the Sulpicio Lines incident during the group’s board meeting on Thursday.

The Philippine Exporters Confederation Inc. (Philexport)-Cebu also did not receive any complaint from members of its eight cluster industries: gifts, toys and houseware; fashion accessories; furniture; industrial goods; garments; food; seaweed; and electronics. But it is not dismissing the possibility that there are companies that have been affected by the incident.

Philexport Cebu advocacy and information officer Jun Abines said it is possible that some companies are still checking their inventories before coming up with a formal complaint.

While the grounding of the ships could affect the delivery of cargo to member-companies, Abines said there are other shipping companies that can handle shipment.

Besides, he said, not all raw materials come from Manila or abroad. “We also get our supply of raw materials from Central Visayas,” he added.

Once a formal complaint is lodged, Philexport will help the complainants reach concerned agencies.

DTI 7, on the other hand, advised businesses to file their complaints related to the grounding of Sulpicio Lines ships at provincial DTI offices for formal mediation process.

Mendoza said the MCCI board can call for a special meeting and determine what actions it can do to help the Mandaue businessmen whose businesses are hampered by the grounding of Sulpicio ships.

Mendoza told Sun.Star Cebu that as a businessman, he sympathizes with the people who are affected by the tragedy and at the same time understand the plight of the shipping company.

“It is not an easy task,” he said, adding that with the limited resources and technology, “nobody was prepared enough” to handle such an incident.

“But the willingness of the company to compensate for the loss is there,” Mendoza said.

Filed under: Business, CCCI, MCCI, MICCI, Philexport-Cebu, Sulpicio Lines

Group calls on members to help RP schools under CSR program

Sun.Star Cebu <> Tuesday, July 01, 2008

BY NANCY R. CUDIS, Sun.Star Staff Reporter

THE Cebu Chamber of Commerce Inc. (CCCI) responded to the Department of Education (DepEd) 7’s call for help by launching a “collective, meaningful and sustainable” corporate social responsibility (CSR) plan for education with its member-companies through DepEd’s Adopt-a-School program.

The two agencies inked a memorandum of agreement last week during the CCCI-Cebu Business Month e-governance and digital marketing conference at the Cebu International Convention Center.

In a report prepared by CCCI CSR committee chairman Virgilio Espeleta and presented by CCCI vice-president for external affairs Clarito Fruelda, the chamber pointed out that “competitiveness is dependent on the talents, skills, continuous upgrading of technologies and management (of) educated people.”

“Sustainable growth in business can be hampered by shortage, mismatch or low-level of qualified graduates versus what the industries and businesses need,” said Fruelda, quoting Espeleta’s report.

But the CCCI lamented over the sad state of the country’s public schools where four students have to share one textbook, 400 schoolchildren line up to use one comfort room with inadequate water supply, and more than 60 students are packed in one classroom. It said the government does not have sufficient funds to improve the quality of public primary and secondary education.

Get involve

Noting that companies are willing to and have been engaged in CSR programs of their own, CCCI urged the private sector to get involved in a “holistic approach” under its Adopt-a-School program.

Adopt-a-School program (ASP) was instituted through the passage of Republic Act 8525, giving private companies the chance to address problems in the public education system, including the lack of classrooms, desks and textbooks.

Apart from generating good will in the community, the CSR program also gives companies the opportunity to obtain tax incentives of up to 150 percent, Fruelda said.

CCCI’s collective CSR program for member-companies suggests that construction and furniture businesses provide for the physical facilities of the school while publication businesses can offer learning support through textbooks. Food, drugs and healthcare companies, on the other hand, can help deal with students’ hunger, health and nutrition, among others.

Member companies can also extend their help to pre-identified “needy” schools in the area or school division they belong.

DepEd 7 identified five schools for adoption in the Cebu City division-Oprra High School, Pasil National High School, Regino Mercado High School, Mangabon Elementary School, and Tabonan Elementary School.

The department also identified five high schools and five elementary schools for adoption in Lapu-Lapu City division, five schools in Cebu Province division, six in Mandaue City, and six in Talisay City.

CCCI plans to develop a marketing campaign for its CSR program for education. The campaign involves writing to target-companies regarding ASP and providing a workshop to educate companies regarding tax incentives they can avail for themselves through it.

Filed under: Business

Palawan resort recovers from 2001 kidnapping

Sun.Star Cebu <> Sunday, June 30, 2008

BY NANCY R. CUDIS, Sun.Star Staff Reporter

PUERTO PRINCESA – Seven years after the abduction of an American missionary couple and 18 others, the Dos Palmas Island Resort and Spa in Puerto Princesa City, Palawan is again gaining ground as a prime tourist destination here.

Aside from its posh accommodation facilities, the resort became controversial with the abduction of guests Martin and Gracia Burnham and 18 others by the Abu Sayyaf in 2001. The incident did not only caused the closure of Dos Palmas for four months, it also caused the tourism industry in Palawan to suffer losses.

But the tourism industry in Palawan’s capital is picking up and Dos Palmas seems to be recovering well.

Puerto Princesa City Mayor Edward Hagedorn said that in 2007, tourist arrivals in the city rose 73 percent from 52 percent in 1992.

Rey Salvatierra, Philippine Airlines (PAL)-Puerto Princesa Airport branch manager, confirmed the trend.

Cebuanos

The management of Dos Palmas foresees an influx of Cebuanos coming in with the revival of the Cebu-Palawan route of PAL Express, the flag carrier’s budget unit, last month. PAL Express has daily flights between Puerto Princesa and Cebu.

“The opening of this route only shows that Palawan is booming. Otherwise,

PAL would not have flown to a place where there is no demand for it. We know that there are many from Cebu who want to come here but are hindered by lack of transportation,” said Dos Palmas operations manager Johann Catiil.

About 70 percent of the 10-year-old resort’s regular guests are Filipinos, of which 30 percent are from the Visayas region. The rest are mostly balikbayans.

Koreans topped the list of visitors from Asia not only in Dos Palmas but also in the whole Palawan.

However, the Burnham kidnapping caused Europeans, who were the most frequent visitors of the resort, to be “very cautious,” said Catiil.

He said Dos Palmas’ occupancy rate remained at 30 to 40 percent between June and August until two years ago. But he added that since then, the resort is slowly attracting an increasing number of foreign tourists—although not as much as the number of domestic visitors.

“Apart from our website, word of mouth and presence of marketing consultants, what we do is that when interested people call us, we fax them security details. While beefing up our own security, we keep in close contact with the Puerto Princesa City Government and the Western Command of the Armed Forces of the Philippines to help monitor the seas,” he said in an interview with reporters Friday.

The resort also provides 24-hour security on the entire Arreceffi Island, where it is located, as well as an electronic marine
radar system that guards major approaches to the island and emergency training for security guards and staff.

Dos Palmas, the only resort in Puerto Princesa City, sits on a 24-hectare property. It has 76 room beach villas, 10 bay cottages and four executive rooms. Most of its furniture pieces are from Cebu.

With only about six hectares of the area presently occupied by the resort and hardly any lean season since two years ago, Catiil said Dos Palmas is planning to construct a gym, a mini golf course and a fishing village.

At present, its amenities include a spa, playground, tennis court, basketball court, chapel and swimming pool. It also has facilities for water activities such as snorkeling and diving, among others.

Dos Palmas, whose sister company is the New City Commercial Center (NCCC), will also expand to Verde Island, Batangas where it will provide the same amenities as in Palawan.

The 10-hectare Dos Palmas Island Resort and Spa-Verde Island will soft open on June 25, with 28 rooms.

Filed under: Business

‘Slow’ infra hampers tourism growth – DOT

Sun.Star Cebu <> Sunday, June 30, 2008

BY NANCY R. CUDIS, Sun.Star Staff Reporter

“NOW is the time, Philippines.”

This was the call made by tourism industry players during the three-day 2nd Philippine International Tourism Fair (PITF), a grand exhibit of the country’s tourism attractions, products and services.

The event, which opened last Thursday at the Cebu International Convention Center, was participated in by more than 100 exhibitors and several local and foreign buyers coming from the Asia Pacific, China, Europe, India, Japan, North America, Russia, South Korea and Australia, among others.

This is, for Cebu Gov. Gwendolyn Garcia, a “resounding note of confidence” in Cebu and manifestation of the province’s tourism growth.

“Tourism is about the people—the welfare of the people who serve in it, the people who are being served and the people who work for it,” she said during the opening of the fair.

Hope

PITF 2008 chairperson Angel Ramos Bognot said that now is the time to work and be united. She expressed hope that foreign buyers will prioritize the Philippines after seeing what it can offer.

The event also highlighted the Travel Market Exchange (Tramex), a one-day business-to-business networking session between foreign buyers and local sellers of travel packages, which Tourism Secretary Ace Durano opened last Friday.

Durano, in a brief speech, said that while Philippine tourism is facing challenges, it is enjoying the support and results of activities, such as Tramex.

He later told reporters that the major challenge hampering tourism growth is the “slow construction pace” of infrastructure, such as roads and hotels, which he noted would take two to three years to complete.

He cited Sofitel Hotel (a property of the SM Group), Imperial Palace Hotel, and Microtel Inns and Suites Philippines as some of the major hotels expected to open in Cebu this year. The major hotel projects have a combined capacity of more than a thousand rooms.

Durano also observed that infrastructure development has not been able to keep up with increasing tourism-related investments and visitor arrivals.

“That is a reality we cannot change. If we hasten construction, there is possibility that output would be of poor quality. Despite the demand out there for the Philippines, our tourist arrivals would still depend on how fast these infrastructure, whether public or private investments, will be put up,” he said.

Bohol Rep. Edgar Chatto, chairman of the House Committee on Tourism, reported that the country received 2.6 million tourists, earned P3.4 billion in tourism receipts, and generated 3.4 million jobs for the industry in 2006. These increased in 2007 when the country recorded three million tourists, P4.8 billion in tourism receipts and 3.7 million jobs.

“The Philippines should not miss the opportunities in tourism, which is an engine of growth and development. The House Committee on Tourism is studying and reviewing policies to sustain this momentum,” Chatto said.

He referred to the national policy for tourism that is expected to address issues on incentives for investors, tourist safety and security, and provision of adequate tourism budget, infrastructure and services.

Chatto authored the House bill while Sen. Richard Gordon, a former tourism secretary, filed a similar proposal in the Senate.

Durano, who had worked with Chatto and Gordon on the bill in the past two years, said the Department of Tourism is already implementing some of the bill’s features, such as hotel accreditation and incentive packages to local and foreign investors through tourism enterprise zones.

“Once the bill will be approved, it will institutionalize the efforts of the tourism sector,” he said.

As the bill is presently making its final rounds at the Lower House, Chatto said that proponents hope the framework will be approved before the country will host the United Nations World Tourism Organization meeting, to be held in Cebu from October 22 to 25, this year.

Filed under: Business

Consul drafts agenda to prepare Cebuanos for Russians’ coming

Sun.Star Cebu <> Saturday, June 28, 2008

BY NANCY R. CUDIS, Sun.Star Staff Reporter

WITH the expected increase in the number of Russians traveling to tourist destinations like the Philippines, the honorary consul of the Russian Federation urged local stakeholders to participate in her agenda for a holistic tourism program for Cebu.

In agenda, Russian Federation Honorary Consul Armi Garcia stressed the need for “cultural immersion; synergy between tourism and academe; and understanding the relationships between tourism, trade and investment.”

“The liberalization of Russian travel is good news since it would mean a new wave of income potential. But it could also be bad news for tourism players whose hands are suddenly full and couldn’t deliver the demands of an unfamiliar market,” said Garcia during the 5th Cebu Business Month Tourism Congress last Wednesday.

The Department of Tourism reported 128-percent increase of Russian tourist arrivals to Cebu in 2007.

“Russians spend more, about $100 per day, and stay longer, from a minimum of nine days to a maximum of 21 days. The average spending per Russian tourist would be more than $2,000,” said Verna Buensuceso, head of the Department of Tourism-Tourism Planning and Promotion’s Team Europe.

Garcia appealed to diplomats and tourism stakeholders to be “attentive and sensitive” to the Russian culture, lifestyle and
cuisine, among other aspects.

She also called on tourism players and the academe to work together to provide “viable information” about the market so that they will be able to properly address the needs of Russian tourists.

She stressed that Russians are an educated and adventurous market. Most of them “could be businessmen looking for opportunities in Cebu.”

“I suggest that there will be a permanent one-stop shop for leisure and business, showcasing the products and culture of Cebu,” she said.

“With tourism, there is opportunity for trade. With trade, Russians will be able to recognize the opportunity to invest in Cebu
and, eventually, help generate jobs,” she explained.

Garcia lauded Tourism Secretary Joseph Ace Durano for laying the groundwork for tourism in the country. She also commended the business sector for recognizing the connection between investment and tourism.

Filed under: Business

Council wants Cebu to be Asia’s top medical tourism destination

Sun.Star Cebu <> Friday, June 27, 2008

BY NANCY R. CUDIS, Sun.Star Cebu Staff Reporter

SHORTLY after its creation to develop and promote the local health and wellness industry, the Cebu Health and Wellness Council (CHWC) plans to position the province as a “world-class destination for medical and wellness tourism in Asia by 2010.”

Members of CHWC, particularly those offering hospital and dental services, observed a “steady flow” of inquiries and walk-in patients long before they have formally organized themselves as a group. They said various nationalities have made different inquiries about various services, such as executive checkups, heart surgery, organ transplants and cosmetology.

Cebu Doctors’ University Hospital and Perpetual Succour Hospital reported having accommodated European, American and Japanese patients.

But Cebu will have to compete with long-established medical tourism areas in Asia, such as India, Thailand, Malaysia, Singapore and Hong Kong. CHCW said it will take the lead in positioning the province as the “ultimate destination for quality medical and wellness tourism.”

Revenues

Medical tourism involves people traveling to other places to obtain medical, dental and surgical care while enjoying the areas’ other attractions.

CHWC chairman Oscar Tuason, also administrator of Cebu Doctors’ University Hospital, said medical tourism revenues reached $40 billion in 2000 in Asia alone.

In 2006, Asia posted about $120 billion in revenues from medical tourism. The sector has a projected annual growth rate of 20 percent.

Tuason, in his presentation during the Tourism Congress at the Cebu International Convention Center, said Thailand recently earned $470 million from 600,000 nationalities from the United States, United Kingdom and the Middle East who underwent cosmetic surgery, dental treatment, eye surgery, kidney dialysis, and kidney transplants from various Thai medical
institutions.

He said foreign patients prefer medical treatment outside their home country due to lower costs.

He cited heart valve replacement as example. The procedure can cost a patient $120,000 in the US, compared to $9,000 in India, $10,500 in Thailand and $13,000 in Singapore.

Less costly

Tuason pointed out that foreigners can save much more if they come to Cebu. He said a coronary artery bypass graft surgery (CABG), which treats the hardening of the arteries that supply blood to the heart muscle, costs about $18,000 in Cebu but $100,000 in the US.

“Even if a patient pays about $3,000 for air travel, $625 for a five-day hotel accommodation, $500 for meals, $100 for ground transportation and another $100 for other needs, he will only spend about $22,325 in Cebu,” he said.

CHWC members said Cebu has good potentials to be a major player in medical tourism. Aside from lower costs, the country’s hospitals are well-equipped and have competent doctors while Filipinos are “excellent caregivers.”

120

Medical tourists will find conditions in Cebu more favorable because of the province’s scenic sites and the Cebuanos’ proficiency in English.

Tuason said that while Cebu is not putting much emphasis on kidney transplants after the Department of Health passed a memorandum that limits the number of foreigners who can avail themselves of it, Cebu can still offer other medical services, such as cardiac surgery, angioplasty, angiogram, orthodontics, orthopedic surgery, cosmetic (reconstructive and curative) procedures, ophthalmology and executive checkups.

Officials of local hospitals said they want to establish a “healthy” competition with each other by being part of CHWC and in promoting medical tourism in Cebu.

Tuason disclosed that it is up to travelers to choose which hospital they would like to go to. The CHCW plans to launch its website, which will contain information about various hospitals.

CHCW is finalizing its registration with the Securities and Exchange Commission. Once finalized, its members-hospitals, dental services, spas, travel and tour operators, Department of Health, Department of Tourism, and Department of Trade and Industry-will become part of the health and wellness cluster of the Philippine Exporters Confederation (Philexport) Cebu.

Filed under: Business

‘Invest in education’

Sun.Star Cebu <> Thursday, June 26, 2008

BY NANCY R. CUDIS, Sun.Star Staff Reporter

TO bridge the existing digital divide in the country, the government and the private sector are urged to invest in education and infrastructure, and to foster an environment conducive to information and communication technology (ICT) opportunities.

The digital divide—or the division between those who have access to new ICT infrastructure and those who do not—is an “opportunity for market penetration” by service providers that have the capabilities to close the gap.

Francisco Claravall, Globe Telecom enterprise segments sales head, said only about 14 million Filipinos are exposed to ICT. Of the 14 million, only about 16 percent has direct access to the Internet via computer laboratories or Internet cafés.

In his keynote speech during the e-governance and digital marketing conference last Tuesday, Claravall said service providers like Globe have evolved their businesses from “one customer-one access platform” to managed services and content that provide better value for customers and allow them to earn revenues.

Stages

Claravall said the digital divide has three stages: economic, usability and empowerment. The Philippines, he said, is still in the economic stage because it is still in the process of making personal computers and broadband infrastructure affordable to consumers.

“The usability (stage) requires content of ICT to be formatted or tailored for different segments, including those with low literacy and senior citizens. The empowerment stage ensures participation in the network,” he said.

“We are looking very hard on how to close the digital divide because there is a demand for it, even when revenue is continually pressuring companies. As we invest in new technology, we strive to keep production costs low but still be able to provide quality service,” he stressed.

Claravall called on the government and companies to invest in education with emphasis on language, science and math. He also raised the need for investments in infrastructure and for government to enact policies that promote an environment conducive to ICT development.

Text messaging

Meanwhile, some government agencies, particularly the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), have invested in text messaging to promote their programs.

To enhance tax consciousness, BIR implemented, starting 2003, an e-raffle program called, “Bayan, I-txt and Resibo,” via short messaging system (SMS) and use of random selection software for determination of winners.

BOC, on the other hand, launched the electronic-to-mobile (e2m) plan to minimize face-to-face transactions and encourage stakeholders to transact business—such as filing, paying, tracking and releasing shipments—through mobile phones. BOC is also planning to use a mobile phone cash remittance system as an alternative payment gateway for its clients who need
to pay their customs duties and taxes and other accounts.

Bridging the digital divide can also be done through e-mail, blogging, vlogging (video blogging) and instant messaging, among others.

Donald Lim, president and chief executive officer of Yehey! Corp., observed that there is significant growth in website penetration in Asia, Europe and Middle-East.

To help support this trend, Ricardo Santos, special assistant to Education Secretary Jesli Lapus, said the Department of Education is working towards integrating ICT in school curricula by, among others, providing ICT-enhanced lesson plans and multi-media learning resources.

Filed under: Business