Parcon: Getting more from money flowing into the local economy

Wednesday, May 25, 2011

Bacolod City has captured the eyes of the country’s “big boys” in real estate development.

Bannered in local dailies lately is the news that SM and Ayala are vying for large parcels of land situated at the back of the Provincial Capitol.
           
Probably, this is in response to the ongoing expansion at Robinson’s Place, and as rumor has it, the Gaisanos will soon embark in enlarging their operations at the Downtown area and their Singcang property.
           
Word has it also that the “big boys” will build hotel rooms, convention centers, and commercial spaces for call center and retail operations.
           
These large real estate development projects of the Gokongweis, Sys, Gaisanos and Ayalas in Bacolod point to the fact that the City of Smiles has become an interesting and exciting tourist destination.
           
The Taipans’ actions also show the city’s value and desirability to business process outsourcing (BPO) or call center operators.
           
The large-scale construction activities of the “big boys” are certain to pump in billions of pesos into the local economy.
           
Their investments will entice more tourists to come and visit the City of Smiles, and more BPO/call center locators to bring their operations to Bacolod.
           
The implications of all these developments and prospects to the city’s local economy are tremendous, considering that the city is already enjoying the sustained boom of the sugar industry, the existing BPO/call center operations, the high level of tourist influx, and the remittances of overseas workers.
           
It is certain then that the city’s economy is enjoying from money brought in by sugar production, overseas workers, tourists and BPO/call center operations.
           
While Bacolod is enjoying expanded sources of revenues, money coming in also goes out fast because most of what the residents consume is produced from the outside, particularly food and clothing.
           
Thus, the challenge now for local entrepreneurs is how to increase the spin of incoming money within the local economy before letting them flow out of the city.
           
Incoming money can have more spin in the local economy if local entrepreneurs would go into agriculture, fisheries, food processing, and garments manufacturing, for a start.
           
While the city is classified as highly urbanized, it still has large tracts of land that can be used for agricultural production. It has also a wide span of seawater from which fishery undertakings can be pursued.
           
Its low cost of power and abundant supply of skilled labor are factors that can support light manufacturing industries in the city dedicated to food processing and garments manufacturing.
           
There is more money now flowing into Bacolod City. If this can only have more spin internally before flowing out of the city, more jobs can surely be created and sustained.
           
And, more jobs mean higher economic growth.

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