abduction

Crisis hit philippines in different aspects

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~TOURISM
The inflow of tourists from key markets such as South Korea, China and Japan to the Philippines slowed down in the month of October 2008, according to the figures released by the Department of Tourism, as reported by EasyBourse.

Tourist arrivals from South Korea, which has emerged as the biggest tourist market for the Philippines, declined by 9.4% on year to 45,007 in October 2008. China’s contribution to the Philippines tourism industry in terms of tourist arrivals plummeted 15% on year and that of Japan 9.1% on year. As per the available figures, the total foreign tourist arrivals in the country during October 2008 were recorded at 241,809, almost equal to 241,745 that were recorded in October 2007.

The main reason for decline in the tourist inflow is the global financial meltdown that severely dampened consumer sentiments leading to reduction in tourism spending.  Japan and South Korea are two top markets that represent a significant proportion in the total foreign tourist arrivals to the Philippines, but the confidence level of people in both the countries is very low.

Besides, the Philippine hospitality industry that comprises hotel, travel and other industries is the most expensive compared to other Asian countries; this factor further restrained visitors from coming to the Philippines.

The downward trend of tourist arrivals is expected to continue in coming few months. The US representation in arrivals is projected to come down by the end of 2008 and the first half of 2009.

However, the Philippine government is taking all necessary measures to boost the tourist inflow by focusing its marketing campaigns and efforts on the neighboring countries because the growth in number of travelers in these countries is expected to be strong despite the financial crisis.

According to a Research Analyst at RNCOS, “The Filipino tourism industry is passing through a tough phase as the foreign tourist arrivals dropped amidst unfavorable business conditions. As the hotel prices are relatively higher in the Philippines than other Asian countries, the government should encourage construction of new hotels and other tourism-related establishments. Construction of new hotels will spur price competition and increase the availability of rooms, which, in turn, will push the foreign tourist arrivals in the country.”

~RICE SHORTAGE
Rice prices have soared to a 34-year high in the Philippines, exacerbating social and political tensions, and creating more problems for the crisis-ridden regime of President Gloria Macapagal Arroyo amid claims that her government had known of the shortages for more than a month.

Globally, stocks of rice and other foods have plummeted, resulting in a steep rise in prices. Rice has been one of the worst hit with prices jumping 50 percent in the two months to the end of March and at least doubling since 2004. An Associated Press article late last month pointed to concerns that “prices could rise a further 40 percent in coming months”.

An unprecedented cold snap as well as pests and diseases affecting crops in China and South East Asia have had an immediate impact on rice availability, as has recent flooding in the Philippines and Vietnam. Increasing urbanisation, changing land use and shifting patterns of agriculture, including the growing of crops for bio-fuels, are among the underlying reasons for shortages of staples such as rice. Rising prices also have their own dynamic, leading to speculation and the hoarding of rice supplies in the hope of future windfall profits.

Some of the largest rice exporters have limited sales. Vietnam has recently decided to reduce exports by almost a quarter and Cambodia has announced a two-month ban on rice exports. The world’s leading exporter, Thailand, has also begun to control foreign rice sales. India has raised the minimum export price by more than 50 percent and China has begun to import rice.

As the world’s largest importer of rice, the Philippines has been among the hardest hit. Rising prices for rice, along with other food items and oil, led to a sharp jump in the official inflation rate from 2.6 percent in March 2007 to 6.4 percent in March this year. Radio Australia reported late last month that “rice prices in Manila have soared to as high as $1.15 a kilo from as low as 50 cents a kilo a week ago.”

~MILF

Separatist conflict in the southern Philippines has claimed more than 120,000 lives over the last three decades. Ceasefire negotiations between the government and the Moro Islamic Liberation Front (MILF) have been underway since 1996, but have repeatedly broken down over the issue of "lost commands" and “lawless elements” taking refuge in MILF-held territory but disowned by the MILF leadership. The peace process has been further complicated in recent years by reports of cooperation between the MILF and international jihadist groups. Crisis Group's Southeast Asia team examines the relationship between the MILF and regional and local terrorist organisations, focusing most closely on Jemaah Islamiyah, on which it has also written extensively in its Indonesia project.

Crisis Group's Philippines reporting examines the difficulties faced by the government in uprooting terrorist networks embedded in a domestic insurgency with its own complex dynamics. Countering these networks effectively will involve a unique combination of police, military and diplomatic measures.