AN official of the Mindanao Development Authority (Minda) said to date, the agency has not received any reports of investors backing out due to the declaration of martial law and the crisis in Marawi City.
"Since the declaration of martial law we have not receive reports of any major investment pullout across key cities in Mindanao," said Assistant Secretary Romeo Montenegro, Minda Deputy Executive Director, told SunStar Davao in an interview on Friday, June 16 at the Royal Mandaya Hotel.
He said, however, it may not be the same for Marawi City and Iligan City as the cost of the war and the conflict or the collateral effect has yet to be asserted.
"Definitely they are very much affected," Montenegro said.
Montenegro said most of the business chambers in Mindanao are reporting that it is business as usual in their areas.
While there are no reports of major investor pullouts, Montenegro said the current situation in Mindanao is very much a factor to the investor's decisions in terms of setting a specific timeline or schedule for their projects.
"Many of them are very much closely monitoring the situation like how is it going to conclude. Presumably many are putting forward a wait and see attitude in terms of whether or not martial is going to be lifted or whether or not the overall situation in Marawi area will be under full government control. Many of these are factoring in the decision points of many investors," he said.
Montenegro said even with the situation in Marawi businesses are operating as usual like there are still movements in terms of trade or companies are still producing goods.
"The interest (for investing in Mindanao) is still there but it is just a matter of resetting their timeline," he said.
Montenegro, meanwhile, said the tourism sector has been greatly affected by the current situation in Mindanao, a sentiment that was also echoed by Davao City Tourism Operations Office head Generose Tecson in earlier reports.
"The main sector that has been affected by the ongoing crisis in Marawi is tourism with many travelers deciding to forgo or postpone schedules of travels to certain areas in Mindanao," he said.
Montenegro said based on the initial reports given to them, Mindanao's two major economic centers, Davao City and Cagayan de Oro City, reported that its respective tourism industries have experienced losses amounting to an estimated of P40 million only days after the declaration of Martial Law.
Montenegro added they have yet to come out with the latest reported on the losses in the tourism sector.
Published in the SunStar Davao newspaper on June 19, 2017.
Latest issues of SunStar Davao also available on your mobile phones, laptops, and tablets. Subscribe to our digital editions at epaper.sunstar.com.ph and get a free seven-day trial.