Tuesday, March 04, 2008 RP lures Japan's retirees' market
CHEAPER real estate and health care will lure Japan’s retirees to the Philippines, but cities that want them to stay long-term will need to meet their high standards for safety and cleanliness.
“Tourism may serve as a pull factor, by providing information about amenities and support facilities,” said Cherry Lynn Rodolfo, who presented at the University of San Carlos last week her paper on “Developing the Japanese Tourism and Retirement Markets: JPEPA and Beyond.”
Once the Japan-Philippines Economic Partnership Agreement (JPEPA) takes effect, up to 100 percent foreign ownership of hospitals will be allowed as long as paid-up equity capital amounts to at least US$200,000. Foreign nationals may be employed, although JPEPA’s critics say that negotiators have failed to win equal terms for Filipino health care workers as those secured by other countries that signed EPAs with Japan.
About 500,000 Japanese visitors come to the Philippines every year, and at least 10,000 already live here. But only around 300 have signed up for the special retirees’ resident visa, according to the Philippine Retirement Authority.
Thailand, the top destination for Japanese retirees who live outside Japan but within Asia, attracts at least 1.2 Japanese visitors a year. Like Singapore, Malaysia and Indonesia, it already has an EPA with Japan.
It will take more than the JPEPA’s ratification and enforcement to attract more Japanese tourists and retirees to the Philippines, Rodolfo said. The lack of air access and infrastructure continues to challenge the tourism industry.
“The Japanese are particularly concerned about personal safety and are therefore very sensitive to the crime rate, security and hygiene of host destinations,” said Rodolfo. Word-of-mouth about good service counts a lot when Japanese travelers pick their destinations for health tourism and long-term stays.
Insurance
For seniors, one need that potential host cities must address is “insurance portability” or the retirees’ ability to use health insurance coverage, whether public or private, wherever they live.
To attract more Japanese retirees to the Philippines, Rodolfo said, cities and their tourism players can provide more information about advantages, like access to health care services and workers.
By 2010, Japan will need at least 58,000 workers for home-based care, according to projections by the Ministry of Health and Welfare. At least 36,000 will be needed for institutional care, up from 20,000 in the year 2000.
Competitive cost of living, compared to Japan, also helps. A luxury condominium or detached housing in Makati—at US$730 to $1,820 per square meter—will cost Japanese buyers only 18 to 50 percent of what they’d have to pay for similar units in Tokyo, Rodolfo pointed out. One month alone in a nursing home in Japan can cost $2,200 to $3,000.
At least 20 million Japanese nationals travel each year and, on average, spend US$1,750 to $1,819 per trip. They are the fourth top tourism spenders worldwide, after Germans, Americans and British travelers.
“Women in their 30s and in their 50s and 60s lead the market,” Rodolfo said. Although they come here to see natural attractions, shop and indulge in “gourmet sampling”, they can be provided with information about retiring in the Philippines, she added, to encourage repeat visits or long-term stays. (IDA)
