Manila to implement open skies policy

Manila to implement open skies policy

MANILA (Reuters): The Philippines will implement an open skies policy as the market demands but current air agreements would allow a doubling of tourist arrivals within five years, the government said on Wednesday.

"We can go as far as progressive liberalization, meaning you can open your skies according to the demands of the market," Tourism Secretary Gemma Cruz Araneta told Reuters before the close of a two-day transportation and tourism summit.

Early this month, the government said it would review its open skies policy granting foreign and regional airlines rights to ensure that financially troubled Philippine Airlines (PAL) would not face unfair competition.

The Philippines has airline seating capacity of five million from current air agreements versus yearly tourist arrivals of 2.2 million.

Avelino Zapanta, president of beleaguered Philippine Airlines, lauded the move on the open skies policy, saying it serves national interest.

Foreign and local delegates from airlines, travel agencies and resort operators urged the country not to limit the entry of foreign airlines to boost the tourism industry.

They noted that the Philippines lagged behind other Southeast Asian countries in terms of tourist arrivals.

The Philippines received 2.2 million tourists in 1997, tailing Indonesia with 5.2 million, Malaysia with 6.2 million, Singapore with 7.2 million, and Thailand with 7.4 million.

Despite having eight international airports, the most among these countries, the Philippines ranked last in terms of frequency of flights per week, and fourth in number of airlines with landing rights.

Last year, tourist arrivals in the Philippines dropped to 2.1 million following the reduction in flights of PAL, which closed temporarily due to financial problems and a prolonged labor strike.