Featured Executive's Viewpoints

JUAN THE TRAVELER

By Mr. Lance Y. Gokongwei, President and CEO, Cebu Pacific Air

American anthropologist Margaret Mead once said “as the traveler who has once been from home is wiser than he who has never left his own doorstep, so a knowledge of one other culture should sharpen our ability to scrutinize more steadily, to appreciate more lovingly, our own.”

I happen to agree with Mead. My jaunts to new territories always lead to discoveries of the novel and unique. Traveling nourishes the soul, feeds the curiosity, and serves as a means to escape from day-to-day reality. I have to admit that this has influenced my stint as president and CEO of an airline, and I have always been guided by a two-fold vision.

First, that tourism becomes the third leg in the Philippines’ revenue-generating industries, a vision that I know I share with the government and every tourism-related entity. In 2006, Overseas Filipino Workers (OFW) remittances hit $12.9 billion, a 19.4 percent growth from the previous year.

Offshore service or Business Process Outsourcing (BPOs) generated revenues of over $3 billion for the Philippines last year. Tourism is running in close third with $2.7 billion in revenues for 2006. This vision is apparently on its way to becoming real, and we in Cebu Pacific find ourselves in the midst of an exciting, dynamic scenario with the opening of several new domestic as well as international routes, and more in the offing.

The World Tourism Organization (WTO) foresees an above-the-world’s-average increase in tourism arrivals in Asia-Pacific. By 2010 the region will become the second most visited in the world and I am confident that our country will get a big chunk of the pie. I have always been optimistic about the future of Philippine tourism. After all, we already have the most basic ingredient -- a product that is not just good, but really quite excellent. Last year, my well-traveled father went to Boracay for the first time. He found the dog-bone shaped island to be just as beautiful, maybe even more so, than Hawaii. I went to Dumaguete recently, and I found myself in a peaceful, picturesque university town that is quite lovely, and filled with friendly, interesting people. Not to mention, Dumaguete is home to Apo Island, a model marine sanctuary and internationally-acclaimed dive site. These are only two of some 7,100 islands in a country teeming with tourism potential: rich culture and heritage, wonderful culinary selections, warm, cheerful and hospitable people, beautiful beaches and ecological diversity. It is only a matter of time before our country becomes one of the premiere tourist destinations in Asia, if the government and private sectors continue to work together for the implementation of a sustainable tourism development program.

Unfortunately, there is still that sad truth: traveling is not a luxury most Filipinos can easily factor into their monthly or even quarterly income. In 2005, statistics showed that only one out of 12 Filipinos has actually flown within one year, and this includes business and leisure travelers. In Indonesia, with approximately the same GDP levels as the Philippines, one out of every eight Indonesians are able to travel by plane. We still have a lot of growing to do. It is a shame that less than 10% of our population can actually experience our very own world-class beaches and diverse exotic cuisine.

Second, motivated by these facts, I believe that we should work towards a future that will give rise to Juan the Traveler -- Pinoys who can fly to various parts of the Philippines five or six times a year (or more) purely for leisure and with their families, to visit relatives and friends; to join the Sinulog, Maskara or Pintados; to go white water rafting in Cagayan de Oro, diving in Syquijor or surfing in Camarines Sur; or simply to languidly delight in the numerous pleasures our country offers.

This vision is what prompted Cebu Pacific’s low fare strategy. Based on our projections, our continuous expansion and offering of the lowest fares, we believe we can bring the ratio of Filipino travelers down to 1:9, from 1:12. The vision is to have a ratio of 1:6 by 2012. Airfare though, is just one factor in the equation.

Part of the short-term policy actions formulated by The World Tourism Organization (WTO) and the Department of Tourism (DOT) for Tourism Product Development is the availability of more affordable tourism products of high quality. This policy action includes:

  • Training the private sector in product development and pricing
  • Encouraging the private sector to provide affordable tourism products through regular dialogue and meetings with the DOT
  • Working with the private sector and LGUs in the tourism hubs to obtain a better deal for tourists
  • Improving and strengthening coordination between the DOT and the travel trade to develop and market affordable packages in the provinces
  • Implementing plans for a cultural tourist program based on restoring, rehabilitating and maintaining national historic landmarks and the country’s unique cultural heritage.

I laud the efforts of WTO and DOT. Philippine Travel Industry growth before Cebu Pacific introduced its low fares and expanded its fleet was an average 4.3% yearly. The first quarter of 2007 posted a 31% growth in domestic passenger carriage, compared to the same period in 2006. Imagine how many more Filipinos will be able to travel if all other tourism-related products and services such as hotels and land tours offer competitive prices. Or, at the very least, if more options for differently-priced products and services become readily available to the Pinoy traveler.

I am passionate about traveling because of several things. I believe that there is a significant level of self-respect and gratification that comes with it. Whether it’s an adventurous backpacking trip, a quest to discover the best Batchoy from side-of-the-road karinderyas, or a relaxing getaway in one of our numerous white-sand beaches, every sojourn outside of home will always add a bit more color to life, and make us feel a little more fulfilled.

The inspiration and learning that can be gained from actually experiencing new sights and sounds in all its rich totality cannot be equaled. Don’t get me wrong, books and television are wonderful… but these can never show just how tall Mount Apo really is, or how many different shades of blue an ocean has, or the dissimilarities between Adobo cooked in the North and Adobo prepared in the South. One will constantly earn new insights and tidbits of information after every trip. After all, experience is the mother of knowledge.

More importantly, consider the possibilities of what we can achieve as individuals and as a race if we have a stronger, more solid appreciation of our country. Pride in, and love for, one’s country can inspire, even lead to nation building efforts.

I hope to see more of Juan the Traveler, learn about his travel adventures and new insights, in the near future.

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VIEW FROM THE TOP is a monthly column written by Presidents, General Managers, CEOs, and Managing Directors of PANA Member Companies sharing their most indispensable insights on leadership, corporate development, strategic management, and the industry in general. It is published exclusively by The Philippine Star.