Frasco says long weekends to fuel domestic tourism

BY KHRISCIELLE YALAO

Tourism Secretary Christina Garcia Frasco said the long weekends and extended holiday breaks have the potential to significantly benefit the domestic tourism landscape.

In a statement released on Friday, Jan. 5, Frasco said the agency “sees these upcoming extended weekends as a timely opportunity, specifically advantageous in propelling our domestic tourism forward.”

Department of Tourism (DOT) Secretary Christina Garcia Frasco 

The country’s post-pandemic recovery has resulted in 5.45 million international visitor arrivals in 2023, noted Frasco. 

According to data from the Philippine Statistics Authority (PSA), 102 million domestic trips were recorded from 2022 to mid-2023, with domestic tourism expenditure amounting to P1.5 trillion.

The Department of Tourism (DOT) also said it recorded P1.87 trillion in internal tourism expenditure, inclusive of spending by foreign visitors and Filipinos residing abroad.

Out of P1.87 trillion, P1.5 trillion was attributed to domestic tourism spending. This includes expenses by local visitors for domestic trips and international travel docked at the country’s borders. 

“There's an overwhelming sense of enthusiasm among travelers eager to make up for lost time, engaging in what has come to be known as 'revenge travel,’” she said. 

Frasco remarked that the long breaks can fuel its strategies to pursue and accomplish the National Tourism Development Plan (NTDP) 2023 to 2028. 

She underscored the DOT’s “optimism for a tourism resurgence underpinned by an unwavering belief in the Filipino spirit and the country's inexhaustible selection of enchanting destinations.”

“The invitation extended to all Filipinos is not merely to travel but to immerse themselves in the rich mosaic of experiences that the Philippines proudly offers. As the nation embraces these extended weekends with open arms, the hope remains high for a vibrant transformation of the tourism sector and a profound appreciation for the manifold wonders encapsulated within the Philippines' diverse landscape,” Frasco added.

PAL, Singapore Airlines offer more flight options via codeshare deal

BY KHRISCIELLE YALAO

Nov 16, 2023 10:19 AM

  

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Philippine Airlines (PAL) and Singapore Airlines (SIA) have recently signed a new codeshare partnership agreement to accommodate more flight options for passengers traveling to and from the Philippines and Singapore, beginning in the fourth quarter of 2023.

Through the codesharing agreement, PAL and SIA will be able to offer a wider range of flights between Manila and Singapore, allowing the partner airlines to market and sell tickets to other domestic and international destinations.

Singapore Airlines Chief Executive Officer Goh Choon Phong (left) and Philippine Airlines President and Chief Operating Officer Captain Stanley K. Ng (right) at the signing of the new codeshare partnership agreement. Photo: Singapore Airlines

The codeshare agreement will commence on SIA and PAL flights between Singapore and Manila, once undergone regulatory approvals.

PAL will codeshare on SIA's flights to Europe, mainly Copenhagen, Frankfurt, Milan, Paris, Rome, and Zurich. The European codeshare sectors will gradually be made available in PAL and SIA's sales channels, online websites, and travel agents.

"The partnership is the product of a strengthened relationship with our fellow Association of Southeast Asian Nations (ASEAN) mainline carrier, Singapore Airlines, and an enduring commitment to expanding our presence in Singapore, a top PAL destination that we have been serving for 58 years and counting.  We also look forward to offering increased connectivity to several cities across Europe, home to many overseas Filipinos and to a growing number of tourist and business travellers whom we invite to discover the wonders of the Philippines," said Captain Stanley K. Ng, PAL president and CEO.

Meanwhile, SIA will codeshare on PAL's flights to 27 places in the Philippines including Bacolod, Basco, Busuanga, Butuan, Cagayan De Oro, Calbayog, Catarman, Caticlan, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legazpi, Ozamiz, Pagadian, Puerto Princesa, Roxas, San Jose (Antique), Siargao, Tacloban, Tagbilaran, and Zamboanga.

“This agreement enables Philippine Airlines and Singapore Airlines to work more closely together, and find ways to offer our customers enhanced travel connections between Singapore and the Philippines. This will support the growing demand for both business and leisure travel between the Philippines and Singapore, and beyond that to our key markets around the world," said SIA CEO Goh Choon Phong.

SIA flights to other destinations in Europe, along with Australia, India, New Zealand, and South Africa, are also on the table for the future expansion of the codeshare agreement.

Cebu Pacific logs P5-B net income in 9 months

BY KHRISCIELLE YALAO

Nov 13, 2023 10:11 PM

  

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Cebu Pacific (CEB), the aviation unit of the Gokongwei Group,  reported a huge turnaround with a net income of P5.03 billion for the first nine months of the year from a net loss of P12.05 billion incurred in the same period in 2022. 

In a disclosure to the Philippine Stock Exchange (PSE), CEB reported that its revenues surged by 78.2 percent to P66.9 billion in 2023’s nine-month period from P37.5 billion last year due to an increase in passenger volume because of higher demand for travel.

International flights in particular leapt by 236.2 percent this year, accounting for a 105.2 percent increase in passenger revenues to P46 billion this year from P22.5 billion last year.  

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Passenger volume increased by 48.8 percent to 15.5 million from 10.4 million and, as international travel demand significantly rose in the third quarter, average fares also grew by 37.9 percent to P2,970 from P2,154.

Ancillary revenues also shot up by 88.5 percent to P17.8 billion from P9.4 billion last year driven by the higher passenger volume and flight activity for overseas trips.

Meanwhile, cargo revenues dropped by 47 percent to P2.97 billion from P5.6 billion last year because of lower cargo kilograms flown and yield from cargo services.

Operating expenses of CEB were 24.7 percent higher at P60.7 billion from P48.7 billion, partly influenced by the weakening of the Philippine peso against the US dollar. 

Flying operations expenses increased by 31 percent to P6 billion from P19.6 billion due to a 56 percent hike in fuel consumption and increased flight activity in the nine-month period.

The airline, however, expressed confidence of increasing their flight frequency as they observed higher bookings. 

In the third quarter alone, the airline has flown four million domestic passengers on over 2,000 weekly flights, running at over 100 percent of pre-pandemic level, as well as 228 percent more passengers for international flights to 1.3 million compared to last year.

Travel demand is going up for destinations like Japan, Taiwan, Hong Kong, and Chine since the final quarter of last year. Flights to Melbourne, Australia; and Hong Kong from Cebu were also resumed while a new flight from Manila to Da Nang, Vietnam will begin in December this year.

“With these improvements and supported with the Group’s latest network plan, by fourth quarter of 2023, international network will further grow to 37 routes with over 490 weekly flights,” said CEB.  

By the fourth quarter of 2023, the airline said it "will be going beyond pre-pandemic capacity levels on a system-wide basis."  

"Improvement in both capacity and seat load factors driven by higher bookings, support the outlook for improvement in the Group’s revenues and profitability margins,” it added.

PAL earnings surge 167% to P19.2 B

BY KHRISCIELLE YALAO

Nov 10, 2023 05:07 PM

  

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The country's premiere airline Philippine Airlines (PAL) reported a 167 percent surge in its net income to P19.2 billion for the nine month period in 2023 from P7.2 billion in the same period in 2022 as air travel continues to boom. 

In a disclosure to the Philippine Stock Exchange (PSE), the airline's passenger revenues also grew by 51 percent to P120.1 billion for the nine month period this year compared to P79.5 billion last year. 

However, cargo revenues declined by 35 percent this third quarter because of "softening in the air cargo market."  

PAL's operating income also grew 114 percent to P24.6 billion for the January to September 2023 period from P11.5 billion in 2022. 

According to PAL, its significant financial performance "reflects the continuing growth of passenger travel and the corresponding expansion of flights across the flag carrier’s global network."  

The airline's passenger count for the first nine months of 2023 increased by 72 percent, amounting to 11 million from 6.4 million in 2022. 

In the third quarter alone, PAL's passenger count this year was 54 percent higher to four million from 2.6 million in the same period in 2022. 

PAL President and Chief Operating Officer Capt. Stanley K. Ng assures the public that the firm will "continue investing in brand-new aircraft, upgraded products and digital innovations that will help us deliver better service and a more satisfying experience for the people who entrust their flights and shipments to Philippine Airlines."

“At the same time, we have to be ready to face potential major challenges in the coming months, as geopolitical upheavals drive up fuel prices and threaten economic disruptions," he added. 

As PAL’s parent company, PAL Holdings Inc. President and COO Lucio Tan III said that it will "continue to fortify the Philippine Airlines Group against external headwinds such as volatile fuel prices and the impact of world events, while building up PAL as a resilient and dynamic competitor."

“We reaffirm our commitment to provide safe, reliable and efficient service in line with our mandate as the nation's flag carrier, looking forward to the coming peak travel season,” added Tan. 

DOTr eyes Japan, Korea, India ODA for railway projects

BY KHRISCIELLE YALAO

Nov 6, 2023 03:55 PM

  

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After China backtracked on its loan commitments to three major railway projects in the country, Department of Transportation (DOTr) Secretary Jaime Bautista said the agency is looking at Japan, South Korea, and India as new potential funding sources.

“There are offers from other countries and we are exploring this. For ODA (Official Development Aid), we are looking at Korea, Japan, and India,” Bautista said in a forum "Powering the Economy Through Infrastructure Development" with the Economic Journalists Association of the Philippines on Monday, Nov. 6.

He has not disclosed details regarding these offers as of yet, but he noted that if the infrastructure projects will find other lenders, these respective countries’ will bring their own advisors onboard.

“If there is one country who is interested, they want their people to do the technical assistance, management and construction,” he said in a press interview.

Bautista emphasized that he is “open to working with anybody” for the agency’s infrastructure projects.

Previously, the national government entered into partnerships with China to fund three projects namely Philippine National Railways (PNR) South Long Haul Railway Project or PNR Bicol, Subic-Clark Railway Project, and the Mindanao Railway Project.

Last January 2022, the national government signed a P142 billion contract with Chinese contractors for PNR Bicol. P51 billion was awarded to China Harbour Engineering Co. in December 2020, and the Mindanao Railway Project Phase 1-Tagum-Davao-Digos Segment was agreed to be funded via ODA worth P83 billion. 

He mentioned that a feasibility study has been conducted for the PNR Bicol build, and all three projects have been approved by the National Economic and Development Authority (NEDA).

However last October, Bautista said that China’s interest in financing the railway projects have dissipated, with the agency seeing little to no progression.

Bautista said they have approved a loan worth P14 billion for technical assistance with the planning and implementation of PNR Bicol. “We have drawn P1.4 billion, but perhaps we have to terminate it,” he remarked.

He said the agency may terminate the PNR Bicol contract with China by the end of the year, but he emphasized that the agency is still willing to cooperate with China on other matters.

“[For China], the procedure is they will tell you they will lend you money while the loan is being negotiated, they will give you a list of three contractors who will bid. The bidding has been conducted, but since there’s no loan, we are not required yet to contract,” he explained.

For Bautista, funding is the main hindrance to the progression of the projects since the designs have already been set. The agency cannot also guarantee a timeline for the projects’ delays, he added. 

“Because of the delay, we may need to get NEDA approval for a change in costs because they might have increased. But we’ll study that,” he said.

However, Bautista guaranteed that the railways can be finished and operational within the term of the Marcos administration, noting that the railways can be constructed faster compared to the North-South Commuter Railway because of its existing alignment and its at grade roads and paths.

The agency is also continuing to work on processing the right of way for the roads, he said.

To date, the DOTr has 160 active infrastructure projects, particularly 28 in aviation, 26 in maritime, 59 in railways, and 47 for roads.

It has appropriated P222.607 billion for the first half of 2023, and aims for a proposed budget of P214.296 billion for 2024.

Among its main projects include the 800-km North Long-Haul Project that will connect the National Capital Region (NCR) to Ilocos Norte and Cagayan; the 17-km San Mateo Railway that will connect LRT Line 2 to San Mateo and Rodriguez, Rizal; and the 54.8-km Mindanao Railway Project Phase 3 in Metro Cagayan De Oro (CDO).

It is also pursuing its privatization of the Ninoy Aquino International Airport (NAIA), with the awarding of contract to the qualified bidder slated for early 2024.

The agency has also completed 70 to 75 percent of land development for the New Manila International Airport in Bulacan worth P735 billion.