Business, Economics and Consulting

Last week, the Department of Tourism (DOT) unveiled its slogan “It’s more fun in the Philippines.” I agree with the DOT Secretary that the line connotes competition; its intention is to attract tourists to come to the country rather than for them to go somewhere else. The main attraction, as the DOT Secretary had said, is the Filipino people to which I initially had some doubts before finally agreeing.

People cannot be the main object of tourism – that was my first thought. If there’s anything that comes to mind when talking about tourism, people would be the last in my list. In fact, in my recent travels abroad, there were only 3 things in my list – accommodation, transportation and places to visit. To go with these 3 items, I should have 2 things – money to spend and a map of direction. If and when schedules allow, “friends and relatives” are also in my list and I consider them as “companions” rather than mere “people” – as the main object of tourism in those countries. In short, what I am saying is that tourists are no longer directly dependent on “people” (note: I am not saying “relatives and friends”) to make pleasure trips truly memorable.

On second thought, people could make or break tourism. It becomes a very important ingredient – not the main object – in making tourism something to enjoy, something that makes the taste buds salivate and crave for more.

The Philippines can offer a menu of places and activities which will surely make tourists come to the country. Name it and we have it – from Pagudpud in the north to Island Garden City of Samal in the south. From historical landmarks to natural landscape formation, from museums, old churches and cultural heritage areas to sophisticated high rise modern buildings, from ukay-ukay to branded or signature items, from Italian to oriental cuisines, from musicals to stage plays to theater shows, and from whatever-you-call-it to whatever-others-may-call-it. We have almost everything to satisfy the different tastes of the most exploring and adventurous tourists on earth. In fact, it would take at least a couple of weeks to explore and exploit the unique and exotic beauty of the Philippines.

For a long time now, we have all these, yet the tourism industry of the country has not really flourish as it should be. While there were increases in tourist arrivals over the years (thanks to “Wow Philippines!”), the industry’s share to the total gross domestic product of the country remains low (no thanks to “Pilipinas kay Ganda”!) compared to what it could potentially contribute.

To further develop the tourism sector, it is not enough that we have the exciting activities and festivities, the beautiful and majestic sceneries, and the ever-loving and hospitable Filipino people. Likewise, it necessitates not just international promotion and marketing. For me, it requires us to see our tourism industry with “FUN” so that at the end of the day, we could see that there certainly is more fun in the Philippines. The acronym FUN (according to my own dictionary) stands for:

F – for facilities and amenities. Clean, safe, convenient and comfortable facilities and amenities are essential to the industry. These include provisions for board and lodging, parking, convenience stores, health and wellness centers and emergency services accessibly located where tourists are expected to go.

U – for utilities and support services. Tourists that come to the country either on business or mere pleasure are mobile – they want to go places, and they would like their contact back home unrestrained. A must in the development of the industry are reliable, safe, convenient, comfortable, accessible and affordable transport and communication networks, and a reliable and safe power supply.

N – for nearby tourist attractions. Whether on business or pleasure trip, tourists always want to see something unique, awesome and extraordinary when they travel to a different place. They would like to have a good taste and a firsthand experience of what they hear about the country and everything that the country can offer them.

The challenge for the DOT now is to be able to lead, mobilize and engage the right people, not just the generic “us” in enjoining everybody to cooperate, to make everything possible. When I say the right people, I am referring to the private sector – the business people – who can help provide at the right place and at the right time the F, the U and the N to make the country a true destination where there is certainly more fun. Fun without the FUN is no fun.

Year 2012 is said to be a year of the Water Dragon. Most predictions indicate a favorable year ahead in terms of economic growth for most countries worldwide. Unlike last year, which was the year of the Rabbit, this year would be a lot better – according to forecasts based on what feng shui experts call the paht chee chart. I don’t know that is but that is how they call it.

If we look inward to our country and assess what actually happened in year 2011, we could probably wish that the feng shui predictions for this year would really come true. We did not have a very bad performance in terms of economic growth last year but it nonetheless needs some significant improvements. Hence, we can give our country and our economy another chance to do better this time. This however seems to be a repeat of our wish last year and all the years that had passed.

According to the most recent Pulse Asia survey, 38% of all respondents believed that our economy deteriorated in the last 12 months between October 2010 and November 2011, and 18% said it improved while 40% said it has remained unchanged. To put it simply and to quote the survey result, it says: “the percentage of Filipinos saying the economy is better now declined by 12 percentage points while the percentage of those who observe a deterioration in the Philippine economy increased by 22 percentage points.”

The result of the survey further says: “Among those who say the Philippine economy is in a worse state now than a year ago, 66% were strongly affected by this perceived economic deterioration, 31% were somehow affected and only 3% did not feel the impact of the worsening economic situation in the country.”

I will stop there because the figures alone could already tell the whole and real story.

On the other hand, if we look at what the economists and leading development institutions have to say about our prospects for year 2012, we can find the following: (a) according to the Bank of America Merrill Lynch in its “Global Economic Weekly” released last week, the Philippine economy is expected to grow faster this year; (b) according to the First Metro Investment Corporation (FMIC) and the University of Asia and the Pacific (UA&P) in their joint 2012 Economic Outlook Briefing also held last week, “the country’s GDP is projected at 5%-6% anchored on an anticipated increase in government spending, robust dollar remittances from OFWs and higher consumption spending”; and (c) according to UA&P economist Victor A. Abola, “…the domestic sector will do well and the lagging sectors last year will bring the economy into the fast lane,” referring to the agriculture, mining, construction and manufacturing sectors.

In terms of investments, gaming, infrastructure and consumer sectors are expected to also remain favorable for investors.

Further, many economists believe that government spending is expected to contribute in sustaining economic growth this year owing to its big-ticket items under the public-private partnership (PPP) program and the DPWH’s other infrastructure projects slated for construction this year. Hopefully, this scenario will create more jobs and employment opportunities which in turn are expected to boost personal consumption and consumer spending to higher levels this year.

Likewise, it is foreseen that international trade performance will also improve with export earnings growing by 5%-7% coming from a “negative performance” last year, while import earnings will likely grow by 10%. Inflation this year, on the other hand, is seen to ease within the 3.5%-to-3.7% range.

On the whole, the forecasts on the economic performance of the country for this year offer some rays of hope to all of us. What seems to be the only negative prospect for the year is the exchange rate which is projected at P43-P45 per dollar – as the US economy is expected to continue to outperform the euro zone. With the economic rebound of the US, it is anticipated that the peso will depreciate against the dollar. As of this writing, the peso-dollar exchange rate is now P44 per US dollar, compared to P43.8 per US dollar just a month ago, or P42 per US dollar some 5 months ago. While this may seem negative, it has positive effects to OFW remittances and international trade.

As the year further unfolds, most of these positive projections and prospects will not happen without leadership, hard work, persistence and policy stability. Many believe that starting the year right would also mean a year of good disposition and prospects. And starting the year right means doing what we need to do – facing squarely the problems of the nation and moving it towards economic progress that is felt by all. If we just let things unfold, the positive forecasts and projections will remain fictional and illusionary, just like the Dragon – the only fictional animal in the Chinese Zodiac.

Are you burned out? Discontented with your current work? Tired of being an employee? Sick of having very little time (and money!) to spend with family, friends and yourself? If you answered yes to any of these questions and desperately want to do something about it, then you could be a lifestyle entrepreneur.

An entrepreneur, as most people know, is somebody who has chosen to take the path of being his or her own boss and engaged in a micro, small or medium enterprise as one’s main means of livelihood. What distinguishes an entrepreneur from a lifestyle entrepreneur is that the latter’s main motivation is the lifestyle that comes with being independent from the employment grind, and not the level of income or financial rewards that may or may not come with owning a business.

Nowadays, there are so many outside stimuli that have influenced people on what it means to have a life. This means going beyond the stressful office-housework schedule and having enough time to stop and smell the roses. Travel, leisure activities, watching the children grow, working from home, pursuing a hobby that brings contentment and peace – these have now become part and parcel of a routine that is defined as ideal. They have also been among the main motivations why more and more people choose to be lifestyle entrepreneurs.

In selecting a business, most lifestyle entrepreneurs select a field that reflects their competencies and interests. While most of them are mid-career professionals who may have a small amount set aside for the future, these fields usually require minimal start-up capital and fueled by the entrepreneur’s drive and passion.

I have a friend in his mid-thirties who was an upper middle manager in one of the biggest advertising firms in the country. He was making more than enough to subsidize life in a middle class neighborhood in Manila, and travelled constantly within and outside the Philippines for work. It was exciting when he was in his twenties, he told me, but after the birth of his daughter, my friend told me that the satisfaction he felt with every successful pitch suddenly paled in comparison to the happiness he felt when he was home.

With the support of his stay-at-home wife, my friend turned his back on his lucrative but backbreaking advertising career and started a small bakeshop and advertising consultation business. The money, he admits, is a far cry from his old income. In order to increase their savings, he sold his two-bedroom condominium in Ortigas and transferred to a house in Rizal. “At the start, I made just enough for my family’s needs”, he shares, “and it took some adjustments on all of us. But that little thing is nothing compared to the fact that when I woke up, I would smile because I know I didn’t have to sit through another meeting or travel and be gone for two weeks. My daughter’s asthma cleared up because of the fresher air in Rizal. The work I have to do now is the same as before, but the big difference is that I work from home. My family is happy, and I am happy. And that is more important to me than a six-figure salary. I am living the life I want now, and I’m glad that I did not wait for my retirement to enjoy my life and my family.”

To some, being a lifestyle entrepreneur might be a luxury that can only be indulged in by successful mid-lifers. But I beg to disagree. If you have gone beyond mere survival (that is, successfully struggled beyond earning just enough for basic food, shelter and clothing) and find yourself always asking if you could start pursuing a higher purpose in life that gives you true satisfaction, look inward and ask yourself if you can make being a lifestyle entrepreneur work for you – the same way taking the plunge has worked beautifully for me.

Feel free to send your comments to nic_agustin@yahoo.com.