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Tuesday, January 03, 2006
Cebu biz sector expects better economy in 2006
Cebu's business community is looking at a bright year ahead with the perception of an increasing political stability in the country.
According to Cebu Chamber of Commerce and Industry (CCCI) president Robert Go, the country has gradually regained the confidence of investors, as former Commission on Elections commissioner Virgilio Garcillano came out to clear his name and President Arroyo’s as well, in the “Hello Garci” controversy.
He said the implementation of the reformed value-added tax (RVAT) last Nov. 1 is also one of the reasons for the chamber’s positive outlook for 2006.
“The RVAT implementation has regained the confidence of investors in the country and will further strengthen and stabilize the peso this year. Yes, in the short-term, RVAT has resulted in the increase of prices of products and services. But in the long term, this move (RVAT implementation) will result in the opening of many businesses and employment opportunities,” Go said.
In an economic forum, economist and former national treasurer Sergio Edeza said the country’s economy is already on its way to recovery and stability because of the government’s implementation of RVAT.
But he added that the recovery would definitely be stalled if the opposition will pursue its plan to lodge another impeachment case against the President this year.
“If there will be an impeachment case again against the President this year, this will break all positive forecasts, as investors will again become jittery,” Edeza said.
Consumption
With the dying down of the political noise and the strengthening of the peso to an average of P53 to the dollar, the chamber also sees an increase in the retail business, as consumer confidence grows, thereby increasing consumption.
Go, who is also the president of Prince Warehouse Club Inc., said the performance of the retail industry, especially on general merchandise and non-food items was slow in 2005 compared to a year ago.
He said people have the money to spend but are holding back due to the fears amid an uncertain economy with the political crisis.
CCCI is also positive that Cebu’s tourism industry and information and communications technology (ICT) will continue to drive Cebu’s economy this year, aside from region 7’s developing additional attraction, the wellness facilities and services.
“A rising prosperity in the growing Chinese and Korean markets is expected to keep foreign visitor arrivals up. Tourism arrivals will serve up to 3.2 million level,” according to a statement.
“We will have more ICT companies investing in Cebu with the deregulation of the voice over Internet Protocol and the opening of ICT parks.”
Domestic tourism will also grow, as airlines, such as Cebu Pacific reduce and offer discounts to domestic travelers.
With regard to wellness facilities and services, the organization of the Spa and Wellness Association of Cebu Inc. will help Cebu achieve its goal of becoming a hub for wellness in the country and in Asia. (JBN)
For Bisaya stories from Cebu. Click here. (January 3, 2006 issue)
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