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Bohol
Bohol
Yap added that the government?s plan to develop an international airport in Bohol under the public-private partnership framework would also help boost tourist arrivals in the island. The proposed airport will be located at Panglao, in the first district. Right now, Bohol Islands as a whole is the fifth most-visited tourist spot in the country, attracting nearly a million tourists per year, 60 percent of whom are domestic tourists. Apart from the Bohol international airport, Yap said Bohol could benefit from more infrastructure projects.
Bohol bank deposits soared to P20.5 billion as of June 2012, registering an annual growth of 12.6% from the P19.2-billion total deposits in 2012. This is a rise of P1.2-billion in six months from December 2011 to June 2012. This is a staggering growth of P6-billion in three and a half years from the P14.6-billion total in 2009. This is a testament of the fact that businesses are making money here, remittances and flowing and there is overall savings from many fronts. This complements the P11.1-billion investments coming to Bohol the Chronicle noted in the last weeks banner story. This is nothing less than spectacular. There are now 30 banks registered in Bohol with a total of 67 branches, according to Rodney A. Lumuthang, six-time president of the Bankers Association Inc. A few banks have over a billion pesos in deposits each. The leading banks like BPI, Metrobank, PNB and BDO (in any order) have more than one branch with four for BPI and two each for the three other banks. They have also been long in the banking business dating from 38-50 years. According to Lumuthang, the banks are facing stiff competition from non-bank financial institutions like insurance companies and mutual funds which offers higher rates as well as benefit riders like free life and medical insurance. This amount is estimated at about P7Billion which means that Bohol has total fund portfolio of about P27-Billion total, a
remarkable rise for a province considered to be one of the poorer provinces in the country, a few years ago. Some of these institutions are Sun Life, AXA, Philamlife, PRU Life and Manulife. OFW remittances find their way through the banking system through many padala systems who often offer better exchange and fee rates than the banks. Only about P2-billion of the P20.5-Billion total deposits are lodged as foreign currency, the rest in pesos. The flow of money in Bohol was so pervasive that at a certain point in 2009, the total ATM transactions of one bank alone in Tubigon reached P46-Million, the second largest in the country at that point. Risk Without BSP Branch Here Despite the huge deposit base and massive potential for growth here-Bohol still does not have a BSP (Bangko Sentral ng Pilipinas) branch here when smaller deposit-based provinces like Negros Oriental (Dumaguete) and Leyte already have theirs. Negros has only P16 billion deposits and Leyte even smaller. Cebu has long had its BSP being a highly urbanized province while Samar is connected to Leyte by the San Juanico Bridge which poses no problem for money transfer. BSP rules that branches can only have a maximum amount of cash in their vaults at any given time. In certain seasons-there is an overflow or a dearth of cash. This makes the necessary but risky physical transfer of funds to and from the Cebu and Dumaguete BSP branches to Bohol-indeed a bankers nightmare. Imagine in 2009 for six months (P600-Million transferred) to BSP Cebu and Dumaguete BSP branches via fast crafts and another P800-Million incoming to Bohol. Three bank officer plus formidable security back-up characterize these transfers but the risk and inconvenience of all Bohol banks remain as long as there is no BSP branch here.
Banker Lumuthang said every year the BAP Bohol passes a resolution urging for the creation of a BSP Branch in Bohol but apparently falling on deaf ears, so far. Loan Drawbacks for Boholanos Despite the huge P20 Billion deposit level, very few loans have been granted to Boholapparently just one third of the total deposits or an estimated P7-Billion, on the high side. Only the usual pillars of the Bohol economy like the Alturas Group and the BQ Group can apparently muster multimillion loan borrowings. According to the BAP Bohol head, the big named resorts, real estate companies and construction firms who got to Bohol already have their own mother banks in tow-leaving little for local banks loan transactions. Other sources said that an average mid-sized firm in Bohol can get as low as P5-Million pesos in loans and any P100-Million level loan in already considered a huge credit exposure in the province. Mainly the banks, therefore, offer consumer loans like salary loans (deduction from pay), cars, house and motorcycle financing. According to local bankers-OFWs hardly borrow for business loans-but merely set aside from savings to build enterprises. The one other major drawback to borrowing is that most land in the towns especially (even some parts in the city) are either agriculture or free patent in nature-and are not often accepted by banks as collateral. However, according to Lumuthang, there is a new law (Free Patent Bill) (RA 10023) that is patent resilient which allows a condo or subdivision lot to be acceptable as collat eral even on a free patent nature as long as there is a subdivision plan and also dependent on the type of municipality and size of the land being mortgaged.Applicants for this nature of free patent land can be forwarded for approval to the CENRO (Community Environment and Natural Resources Office) of the DENR. Most of the loans in Bohol go to retail trading, gas stations, restaurants, construction and agribusiness but always secured with hard collateral (real estate) more often than not.
But it seems that there is enough business in car financing, however, in that one Toyota dealer sells about 20 cars a month or 240 a year. Since there are others like Isuzu, Kia, Proton, Mitsubishi, and Honda, Bohol could be adding more than 1,000 brand new car units every year. This is not to count the car sales of other second hand vehicle dealers. Bohol is also starting to rival Dumaguete as the Motorcycle City with the proliferation of many motorcycles and tricycles in the city streets. Still and all, while the P20 Billion Bohol deposit level is nothing to sneeze about, there is need to spur business in the countryside by more aggressive bank lending policies.
Chronicle
Bohol Attracts P11-B more Investments Posted 04/25/13 While the Philippine sovereign was foisted a fame-changing BBB investment grade by the Fitch Rating Agency, Bohol seems to have scored its own ratings victory, as well. Data from the BIPC (Bohol Investment Promotion Center) saw private investors come in droves in 2012-2013 with an awe-inspiring P11.1-Billion in investments to the island province. Governor Edgar Chatto was elated over the huge inflow-a de factogreen- go signal of the private sector that there is money to be made here and the environment is income growthenhancing. From the inclusive growth perspective, the government is pleased that such kind of investments do create jobs and increases the per capita disposable income of the average Boholano- that in turn entices more investments to capture the same. INDUSTRY BREAKDOWN
Based on BIPC statistics, majority of the P11.1-B investments are going to tourism-related hotels of about P5.1-Billion, P3.8-B to land development like subdivisions, condotels and leasing dwellings and the rest of the P1.7-B to retail like supermarkets and restaurants. There is also an interest in investing in some water sports and fun activities. According to Provincial Administrator Alfonso Damalerio II, there is a definite interest of outside investors into Bohol but some of there were not inclined to have their identities revealed momentarily. BIPC Head Inday Dominise told the Chronicle that there are four events that some of the investors are waiting before going full speed on their registered investment plans, namely, the new Panglao Bohol Airport, the elections, political environment and the enabling laws particularly on the local tax and incentive schemes anchored on the new guidelines for the PPP-Private Public Partnership Programs for some of their investments. The P11.1-B investment total was gathered from investors themselves and the local Municipal Planning and Development Councils who have their own community goals to look for in assessing the entry of investors. The Panglao airport is also now considered a done deal based on the most recent developments and the schedule of the first bidding process within the year. SPECIFIC INVESTMENTS The tourism sector, Bohols flagship industry, will benefit from the renewed surged of investments here-totaling 890 more additional rooms for 2013 alone. This will add more glamour to the handsome landscape generated by the top tourism players like the Bohol Beach Club in Bolod with 168 rooms, the Bohol Bellevue Hotel in Doljo with 159 rooms, the new Panglao Bluewater Resort, the Panglao Island Resort and Eskaya Beach Resort and Spa. According to the new management of BBC, they are keenly awaiting the impact of the new airport in Panglao and is ready to dovetail their plans with the expected new boom in tourism in the area. Direct International flights are expected as one of the major consequences of the new public sector investment in the airport infrastructure.
The Bohol Bellevue Hotel is the new darling of tourism in town and is dubbed as the most luxurious hotel in Panglao island with an outstanding beach front for swimming while Bluewaters had its share of corporate and individual pleasure goers who like secluded and private ambiance of the sprawling enterprise. Panglao island Resort has a long history and its own set of loyal clientele while the spanking Henann Resort has replaced the former Alona Palm Beach resort and drawn admirers as well. Eskaya Beach resort and Spa, considered one of the best Boutique hotels in the country is expanding its 15 grand villas with 12 more villas priced at cheaper US$845, according to its chairman Richard Lim. The Alturas and BQ (Ong) groups, considered the two most major economic pillars in the province, are into a bullish expansion moves and diversification with land acquisition and construction within the year, according to sources. In the field of real estate development, there are over 600 lots currently registered with the HLURB (government land policy body) in both Tagbilaran and Panglao island. Camella Homes, owned by the billionaires Manny and Cynthia Villar- which is the first major land developer to break ground here- is set to open new housing for the open market and economic market. The LGU in Dagohoy is initiating its own socialized housing project while the Royal Palm Panglao has targets for open market for both socialized and economic housing in Baclayon. Quietly, the expansive Ayala Group or Ayala Land has been busy buying picturesque lots in Panglao island with the aim reportedly to stake its claim on both the resort and subdivision industries. MAJOR INFRASTRUCTURE AND BASIC NEEDS A major investor recently told the Chronicle they have been impressed with the major highways but deplored the state of the city streets. The affiliation of Governor Chatto and incumbent Congressman Rene Relampagos and the Cajes Family (second district) with the ruling Liberal Party is expected to usher in more infrastructure projects in the province.
The Ayala Group and the SUGECO (Bicol Power Group) are expected to renew their interest to increase the power outrage of the province by several Kilowatts after the election fever subsides while powerhouse Maynilad is among those interested in water projects especially in Dauis and Panglao. The P7.1-Billion Panglao airport jointly funded by Japanese bilateral funds and government counterpart equity will invite private sector bidders for the construction and eventual operation of the international airport. BPO (Business Process Outsourcing) is also expected to be next best thing in the province and buildings tailored-fit for such use could be in demand when it flies. The 10 hectare site of the present Tagbilaran City airport, once it becomes inoperational, is a fertile ground for a free trade or business economic zone with tax incentives under the PEZA under Secretary Lila de Lima (not the Justice Secretary). The state of the interisland travel, which has been in the negative news these days, deserves some scrutiny and perhaps news investors. The Ceres Liner Group has added a new positive dimension to land travel in the province. MAJOR LOOKOUTS Major looks out for investors are the political-economic environment and the tax incentives to be given to Bohol investors. The BIPC Board, made up of 21 members (60% private sector) had already endorsed a new Investment Incentives Act to the Sangguniang Panlalawigan which is a review of the old act started back in 2001. Dominise, however, is hopeful it will approve well within the year to translate the investment plans of the investors into reality. The Business Application approval process will also have to be revived up and make the Bohol package competitive in the marketplace. This is especially true for densely populated areas like the city of Tagbilaran and those that draw these investments in like Panglao, Dauis, Danao, Loon, Carmen, Loon and Anda for starters.
Bohol policy makers are enjoined to consider that Bohol is competing with all 70-odd provinces in the country in order to draw the investors into the provinces ranks and every month of delay is crucial.
The P11.1-Billion investment mark, however, is a high sign of a bull market that Bohol had not seen in its storied history.
Chronicle
Why Bohol Location and Accessibility In the heart of Asia lies the Philippines, now poised to take its place as an investment destination in the region. In this archipelago of 7,100 islands, the tenth largest island- Bohol, is readying itself to offer an investment climate that is conducive even to foreign investors. Bohol is located in the central part of the Philippines, which accounts for its easy accessibility to the capital cities and international gateways of Manila and Cebu, and to potential markets. It is the closest province to Cebu, now the industrial and commercial center of southern Philippines. Typhoons and earthquakes are rare. It is nestled securely between southeast of Cebu and southwest of Leyte. Its oval-shaped mainland, surrounded by 73 islets, has a gently rolling terrain ideal for commercial and industrial development. Wealth of Natural Resources, Seat of History and Culture Bohols hilly interior is home to rare and endangered flora and fauna, including the oldest living primate, the tarsier (Tarsius syrichta). The uplands are fit for agro-forestry and high-
value crop production. A unique geological formation of 1,700 uniform cone-shaped hills, known as the Chocolate Hills, never ceases to amaze. The central and northern lowlands have also fertile grounds and abundant water supply. Bohols water supply for domestic, agricultural and industrial uses can be tapped from 2, 224 springs, 59 rivers and 200 creeks. Surface water from 22 river basins and watersheds are impounded and distributed as potable water, for irrigation, power generation and industrial use. Bohol has pristine white sand beaches and azure blue waters. The island has 654 kilometers of coastline, and rich coral reefs teem with diverse and colorful marine life. Spectacular dive sites in the islands of Balicasag, Pamilacan and Cabilao, and in Anda haven. Bohols abundant island environment with its ideal topographic conditions was what probably brought the Spanish conquistador, Miguel Lopez de Legaspi to the island; and forged the first international treaty of peace with the local chieftain, Datu Si Katuna, in 1565. Local traditions, spliced with Spanish influence, have created a rich tapestry of history and culture. These are vibrantly expressed in the music, dance, poetry, crafts, cuisine, in the fiestas; and experienced in the well-preserved heritage structures and sites. Quality Manpower and Competitive Labor Cost Bohols primary asset is its people, with the distinctive quality traits of hospitality, friendliness, dedication to work, industry and self- reliance. With a population of 1,203,684, it has a highly trainable and strong labor force of about 716, 000. Literacy rate is high at 97%, and English is the medium of instruction in education and business. This makes up a dynamic manpower pool. Quality manpower is available at lower rates compared to those in the metropolitan areas. Peninsula, have become the enthusiasts
Infrastructure Support Bohol recognizes the need to provide necessary infrastructure facilities for a growing population and the increasing demand of commerce and industry. Water and power services have greatly improved. The joint venture project between the Provincial Government and a private partner provides 24-hour water services in Tagbilaran City and neighboring municipalities. The power interconnection project with Leyte generates additional power supply of 100 MW of geothermal energy, providing reserved power of around 90 MW. The national highway that links the municipalities is being paved under the Bohol Circumferential Road Project that has increasingly provided efficient access and transport of people, goods and services. Meanwhile, the Bohol Irrigation Project provides irrigation water to 11,000 hectares of ricelands, asserting Bohols position as the rice granary of Region 7. Connectivity The provinces 47 municipalities are linked through landline telephone connections. Internet access is available. Public calling stations and mobile phone services provide access to telecommunications. Government and Private Sector Dynamism In Bohol, synergy and participatory development processes have led to a strong partnership between government and the private sector, resulting in local governance initiatives and policies that give leverage to strategic investments and entice businesses to locate here.
TOURISM
Fast Facts Bohol is the No. 1 Eco-Cultural Tourist Destination in the Philippines o Tourist Destination of the Year 2003 awarded by the
department of Tourism-Kalakbay Tourist Destination of the Year 2002 awarded by the Department of Tourism-Philippines Travel Mart
Amenities Resort Pension/Lodging House Hotels Dive Shops Coffee Shops Restaurants Fastfood Outlets Shopping Malls 83 137 11 32 12 50 30 5