By JOSEPHINE CUNETA and JAMES HOOKWAY
The Philippines' dispute with China over territorial claims in the South China Sea is threatening to exact an economic toll on key Philippine industries, including its vital tourism and agricultural sectors.
Chinese tour groups have canceled trips, while Philippine fruit exports to China are coming under increasing scrutiny, although Chinese officials have said this has nothing to do with the tensions. Philippine budget carrier Cebu Pacific is suspending its twice-a-week charter flights from Shanghai on the request of its China-based charterer. China's state-run Xinhua news agency reported that China Southern Airlines ZNH +0.33%plans to reduce flights to the Philippines until June 30 as travel agencies cancel trips.
The tensions began on April 8 when Filipino sailors attempted to arrest Chinese fisherman that Philippine authorities said were poaching protected species such as sharks and giant clams at Scarborough Shoal, an area just inside the Philippines' United Nations-defined exclusive economic zone. China also claims the reef and lagoon area, and sent coast guard vessels there, triggering a weekslong standoff.
Two of China's largest travel agencies, CYTS Tours Holding Co. and Ctrip.com International Ltd., CTRP -1.82%blamed political uncertainty for their decisions to call off tours to the Philippines.
Philippine hoteliers are now racing to attract visitors from places such as Taiwan, Japan and South Korea to help make up the shortfall.
Henry Chusuey, chairman of Boracay Foundation Inc., a group of business operators on the Philippine resort island, said cancellations from Chinese visitors comprised around 15% to 20% of expected foreign tourist arrivals, and that some hotels and resorts rely on Chinese visitors for as much as 60% of their bookings.
"It will mean less revenue for us, but we cannot blame our government. We just have to work harder to attract tourists from other countries," said Mr. Chusuey, who owns the Regency group of hotels.
Other operators paint a similarly grim picture. Mark Saba, sales officer at transport operator Southwest Tours Boracay Inc. said that normally they would expect 300 to 500 Chinese customers a week, but since May 11 they haven't seen any Chinese visitors because of the mass cancellations.
China is the fourth-largest source of tourists to the Philippines. According to the Philippines Department of Tourism, more than 96,000 Chinese visited the country in the first three months of the year, up 78% from the year-earlier period.
Other industries worry that worsening tensions with China could spill over into their sectors as well. Ramon Ang, president and chief operating officer of conglomerate San Miguel Corp., SMC.PH -1.75%said in a recent interview that the standoff at Scarborough Shoal could hurt the Philippines' progress in building business ties with China, which is now the country's third-largest trading partner.
Government leaders including President Benigno Aquino III and Finance Secretary Cesar Purisima say the Philippine and Chinese governments are working to contain their territorial disputes to prevent more collateral damage.
One other potentially vulnerable sector is the Philippines' large fruit industry. Xinhua reported last week that China's General Administration of Quality Supervision, Inspection and Quarantine ordered tougher inspection and in some cases quarantine of fruit imports from the Philippines.
Philippine fruit exporters have incurred losses of around 1.44 billion pesos ($33.6 million) since then, after a batch of bananas was discovered to be infested with mealy-bug insects. Stephen Antig, executive director of the Pilipino Banana Growers and Exporters Association, said 43 companies have been informed that their exports wouldn't be accepted, even though Philippine banana exporters aren't encountering similar problems in other markets with stricter requirements, such as Japan.
In addition, Mr. Antig said pineapple and papaya exports are being impounded. He said local fruit exporters are working to rectify any possible problem, adding that mealy bugs don't affect bananas.
The Philippine government is sending a team of experts from the Bureau of Plant Industry to China next week to check on the bananas, and to reiterate the Philippine government's view that its bananas passed rigid inspections before being exported.
The Chinese quarantine authorities couldn't immediately be reached for further comment.
China Dispute Threatens Philippine Industries - WSJ.com
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Funny thing is: Aquino the president of imbecile fails to manage his economy at home, rather pays huge attention to a piece of rock in the ocean, leading the Philippines fast into failed state.
China is the Philippines' 3rd largest trading partner, the Philippines is almost nothing in trading to China. Make the calculation of the degree of "collateral damage" to each side, fool.
The Philippines' dispute with China over territorial claims in the South China Sea is threatening to exact an economic toll on key Philippine industries, including its vital tourism and agricultural sectors.
Chinese tour groups have canceled trips, while Philippine fruit exports to China are coming under increasing scrutiny, although Chinese officials have said this has nothing to do with the tensions. Philippine budget carrier Cebu Pacific is suspending its twice-a-week charter flights from Shanghai on the request of its China-based charterer. China's state-run Xinhua news agency reported that China Southern Airlines ZNH +0.33%plans to reduce flights to the Philippines until June 30 as travel agencies cancel trips.
The tensions began on April 8 when Filipino sailors attempted to arrest Chinese fisherman that Philippine authorities said were poaching protected species such as sharks and giant clams at Scarborough Shoal, an area just inside the Philippines' United Nations-defined exclusive economic zone. China also claims the reef and lagoon area, and sent coast guard vessels there, triggering a weekslong standoff.
Two of China's largest travel agencies, CYTS Tours Holding Co. and Ctrip.com International Ltd., CTRP -1.82%blamed political uncertainty for their decisions to call off tours to the Philippines.
Philippine hoteliers are now racing to attract visitors from places such as Taiwan, Japan and South Korea to help make up the shortfall.
Henry Chusuey, chairman of Boracay Foundation Inc., a group of business operators on the Philippine resort island, said cancellations from Chinese visitors comprised around 15% to 20% of expected foreign tourist arrivals, and that some hotels and resorts rely on Chinese visitors for as much as 60% of their bookings.
"It will mean less revenue for us, but we cannot blame our government. We just have to work harder to attract tourists from other countries," said Mr. Chusuey, who owns the Regency group of hotels.
Other operators paint a similarly grim picture. Mark Saba, sales officer at transport operator Southwest Tours Boracay Inc. said that normally they would expect 300 to 500 Chinese customers a week, but since May 11 they haven't seen any Chinese visitors because of the mass cancellations.
China is the fourth-largest source of tourists to the Philippines. According to the Philippines Department of Tourism, more than 96,000 Chinese visited the country in the first three months of the year, up 78% from the year-earlier period.
Other industries worry that worsening tensions with China could spill over into their sectors as well. Ramon Ang, president and chief operating officer of conglomerate San Miguel Corp., SMC.PH -1.75%said in a recent interview that the standoff at Scarborough Shoal could hurt the Philippines' progress in building business ties with China, which is now the country's third-largest trading partner.
Government leaders including President Benigno Aquino III and Finance Secretary Cesar Purisima say the Philippine and Chinese governments are working to contain their territorial disputes to prevent more collateral damage.
One other potentially vulnerable sector is the Philippines' large fruit industry. Xinhua reported last week that China's General Administration of Quality Supervision, Inspection and Quarantine ordered tougher inspection and in some cases quarantine of fruit imports from the Philippines.
Philippine fruit exporters have incurred losses of around 1.44 billion pesos ($33.6 million) since then, after a batch of bananas was discovered to be infested with mealy-bug insects. Stephen Antig, executive director of the Pilipino Banana Growers and Exporters Association, said 43 companies have been informed that their exports wouldn't be accepted, even though Philippine banana exporters aren't encountering similar problems in other markets with stricter requirements, such as Japan.
In addition, Mr. Antig said pineapple and papaya exports are being impounded. He said local fruit exporters are working to rectify any possible problem, adding that mealy bugs don't affect bananas.
The Philippine government is sending a team of experts from the Bureau of Plant Industry to China next week to check on the bananas, and to reiterate the Philippine government's view that its bananas passed rigid inspections before being exported.
The Chinese quarantine authorities couldn't immediately be reached for further comment.
China Dispute Threatens Philippine Industries - WSJ.com
---------------------
Funny thing is: Aquino the president of imbecile fails to manage his economy at home, rather pays huge attention to a piece of rock in the ocean, leading the Philippines fast into failed state.
China is the Philippines' 3rd largest trading partner, the Philippines is almost nothing in trading to China. Make the calculation of the degree of "collateral damage" to each side, fool.
inflation and unemployment are among the highest compare to those asean .
oh man why viet trolls always like to post something to slap their own face
