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Monday, December 04, 2006
Bright forecast for Central Visayas in 2007
By Aledel Gonzalez-Cuizon
CEBU CITY -- Economic prospects for Central Visayas in 2007 are looking good, following investment missions abroad and the promotion of Central Philippines as a tourism center, an official report said.
The much-awaited reopening of the Atlas Mines in Toledo City can also boost the economy further, given China and India's increased demand for metal, said the Central Visayas Regional Economic Situationer (RES) for the third quarter.
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But concerns such as the lack of specific manpower are hounding the region. There are not enough mining engineers, and there are few workers for shipbuilding companies.
There is also a shortage of tourist buses, which could be a problem this month when Cebu hosts the 12th Association of Southeast Asian Nations (Asean) summit.
The RES is a quarterly report of the National Economic and Development Authority (Neda) 7 aimed at providing preliminary performance information of the region's economy, while the Regional Income Accounts of the National Statistical Coordination Board is still being prepared.
The Regional Income Accounts data are the official estimates on the region's economic performance for a specific period.
The RES said the Cebu Investment Promotion Center's visits to Canada and the US this year might yield results next year.
The investment mission, held in the third quarter of 2006, invited Filipino professionals and Filipino-owned firms to outsource some of their services in Cebu.
The investment in tourism facilities and services will also increase as the national government is promoting Central Philippines as a tourism destination.
The RES reported that in the third quarter, representatives of two big Korean companies visited Cebu to look at potential tourism-related projects.
The opening of new airline routes can also spur tourism in the region.
But the report raised at least one concern: a "serious shortage of tourist buses."
On the Atlas mines, the RES said full operation is expected on January 2007.
"The increase in demand for metal from China and India, coupled with high prices of copper, gold, nickel and silver should also encourage other mining companies in the region to increase output of these products. Prices of metallic minerals have increased by as much as 400 percent since 2003," the report said.
The mines in Lutopan, Toledo City used to be one of the world's largest copper suppliers. But low copper prices, labor problems and ballooning debts forced its closure in 1994.
According to the RES, the "long lull" following the mines' closure reduced the number of mining engineers in the region.
"Now that the mining industry has started to revitalize, mining companies are having difficulty finding qualified mining engineers," the report stated.
The same problem is noted in the shipbuilding industry and the information technology sector.
Many trained workers are now being employed by other companies abroad, while the region cannot take full advantage of the market offered by the IT industry because "it lacks qualified manpower to support these industries."
"The government needs to take serious efforts to address the lack of qualified manpower for the region's leading industries. Collaboration among government, industry and training institutions should be strengthened to come up with appropriate curriculum and training programs for the region's workforce," the RES said.
The RES added that growth realized in the first three quarters will be sustained until the end of the year, when Cebu hosts the Asean summit.
"Aside from bringing in thousands of tourists to Central Visayas, this important international event is seen as a big opportunity for the region to showcase its potentials in the international area," the report stated.
Some delegates of the Asean Interparliamentary Organization, held in Cebu last September, had a chance to visit Bohol and promised to promote the province in other countries.
Economic activities will also increase in the fourth quarter as businessmen will grab the opportunities offered by the summit, which will be held on December 10 to 14.
Demand for accommodation, transportation, banking and other services will go up by then, the report pointed out. (Sun.Star Cebu)
For more Philippine news, visit Sun.Star Pampanga. (December 4, 2006 issue)
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