Your 20th National Convention today emphasizes the twin roles of the tourism and real estate industries as engines of economic growth.
Indeed, tourism and real estate are tightly intertwined.
As the Philippines continues to make its mark in the global tourism arena, the real estate industry is there to provide timely and necessary support for our national tourism development programs.
But more than support, it is my view that we should move towards creating an effective synergy between the real estate and tourism industries. Such synergy will enable us to tap the boundless opportunities especially from emerging markets that will make the tourists of today the real estate investors of tomorrow.
The growth of real estate in the Philippines has largely been driven by demand for residential housing, business process outsourcing, and tourism, including the retirement industry. These sectors contribute to the robust growth of the real estate industry in the Philippines, which has been enjoying a boom since late 2004.
At the same time, tourist arrivals have been increasing. From 2009 to 2010, the number of foreign visitors increased by half a million, from 3,017,099 to 3,520,471. For January to July 2011, visitor arrivals reached 2.28 million, recording a double-digit increase of 11.8 per cent over the 2.04 million recorded for the same period last year.
It is also worth considering that about 60 per cent of the tourism industry consists of allied services and facilities using real estate, which includes hotels and resorts, wellness centers, retirement villages.
These two tightly linked industries offer immense opportunities in terms of investments and jobs. Yet we must realize that there are challenges to be hurdled. To further boost tourism, we should consider critical factors such as infrastructure capacity, accessibility and ease of transport, quality of facilities, availability of support services, safety and security.
Today’s gathering is therefore felicitous. It brings together individuals, businesses, and professionals from the sectors of housing, real estate and tourism, signifying our collective desire to improve not only our sectors, but also to find ways to bring our shared knowledge, expertise and experience together so we may contribute to economic development.
But allow me to challenge all of you to bring this synergy to greater heights by thinking bigger and bolder.
Real estate development showcases the Filipino talent in building paradise destinations while tourism presents the vistas of Filipino creativity and culture.
The merging of tourism and real estate development will lay the groundwork for enticing balikbayans as well as tourists to come and stay in the Philippines for good. The synergy between real estate development and tourism can result in making the Philippines the retirement haven of Southeast Asia.
Should we succeed, and I have no doubt that we will, we can anticipate more permanent jobs for our Filipino workers, primarily in the communities hosting these projects. We can also look forward to providing job opportunities that will entice our OFWs to consider working in the Philippines rather than abroad. We will also have investors who will share our concern for improving the conditions in the communities where they have opted to retire, since they will become stakeholders in these communities.
As I have said, the opportunities are boundless.
This is where the government’s policy of public and private partnerships or PPP comes into play.
For our part, we in the housing sector will actively promote and encourage private investments and public-private partnerships in tourism and the real estate industry.
After all, like tourism, housing is considered a big contributor to the economy in terms of its multiplier effect and its capacity to generate jobs.
It is in this light that we continue to promote housing not only as a social commodity but as an economic driver. We have always pushed for incentives for private developers, especially those who will produce affordable housing for OFWs and low-income families. Perhaps our government can consider similar incentives for those who enter into tourism-related projects as well.
We are also forging partnerships with LGUs and real estate companies nationwide to fast-track the disposal of about P200 billion acquired housing assets. Real estate companies can market, possibly at a larger scale, these assets which government is trying to dispose through retailing.
Needless to say, scaling up these initiatives in housing demands a strong public sector machinery that will provide more effective direction and implementation of housing targets, and harness the support of the different stakeholders.
Let me take this opportunity to inform you that our president and the leadership of congress have included in their list of priority legislations the creation of a department of housing and urban development. With a department of housing, we can expect no less than rationalization, coordination, integration, and greater efficiency in the formulation and implementation of the government’s housing program.
My friends, I have always believed that a strong partnership between government and the private sector is indispensable in achieving economic development. This policy enabled Makati, during my term as mayor, to maintain its competitive edge over other LGUs, overcome the challenges of the financial crisis in the 90s, and gain a foothold among the leading BPO destinations in the world. With such a partnership now enshrined as national policy, I have the greatest faith that the Philippines will be able to embark on the journey towards progress and development.
Kung nagawa namin sa Makati, kaya nating gawin sa buong Pilipinas. At sa inyong pakikiisa, tiwala akong magtatagumpay tayo.
Thank you and good day.