The report calculates a
Competitiveness Index (TTCI) based on three categories: regulatory framework, business
environment and infrastructure, and human, cultural, and natural resources.
One of the key
improvements identified for the Philippines
was the prioritization of travel and tourism. The country has significantly
raised its rank from 70thto 15th. The country now ranks 1st in the world in
terms of government spending on the industry, as compared to its 63rdplace in
the 2011 report.
Another significant jump was in the effectiveness of its
marketing campaigns (from 99th to 85th). Natural resources (44th) and price
competitiveness (24th) continue to keep the industry strong. Favorable policies
on protection of property rights, openness towards investments, and few visa
requirements (7th) also make it attractive to foreigners.
The report also outlined
the major obstacles to industry competitiveness: cost of starting a business (94th),
number of days to start a business (117th), safety and security (103rd), inadequate
health and hygiene (94th), and poor infrastructure. Efforts are underway to
address these issues. We are optimistic that improvements will be visible in
these areas in the near future.
Despite these weaknesses, the
outlook for the Philippine travel and tourism industry remains positive. The Philippines is
the only ASEAN nation that registered double-digit improvement. This follows a
similar performance in the WEF Global Competitiveness Report released last
September in which the Philippines
jumped 10 spots.
The National
Competitiveness Council commends the Department of Tourism and its related
agencies as well as the private sector for its efforts in promoting tourism and
elevating the country’s tourism profile on the global stage.
About the National Competitiveness Council
The National
Competitiveness Council is a public-private sector body dedicated to building
up the long-term competitiveness of the Philippines through policy reforms,
project implementation, institution-building, performance monitoring and goal-setting.