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.