Archive for the ‘Business’ Category

Mendoza Hostage Taking: Affects Philippine Tourism

Wednesday, August 25th, 2010

The Philippines, being one of the top most visited tourist spots in Southeast Asia, is undergoing a “black” phase in tourism industry after the bloodbath hostage crisis at Quirino Grand Stand, Manila last Monday.

The Hong Kong government heaved a black travel alert on all travel to the Philippines, affecting the Philippine goverment’s effort in achieving its tourism arrival target of 3.3 million this year, according to Tourism Secretary, Alberto Lim. Given that, he also stated that “In the short term, it (incident) will have a negative impact…It takes time to forget but the market will come back,” Philstar News.

The released senior inspector Rolando Mendoza, took over the Hong Thai Travel busload of 21 Hong Kong tourists and 4 Filipino tour guides and photographers, demanding his reinstatement in the police force. The incident lasted for about 11 hours, ending 9 lives including Mendoza who was killed by a sniper. It was said that the police force trying to capture Mendoza’s brother, Gregorio Mendoza, which was viewed by the hostage taker over the television inside the bus, triggered him to raise gun shots later that day.

Chinese newspaper People’s Daily, declared the Philippines as one of the most chaotic countries in Southeast Asia, Philstar News. This greatly affects the Philippine Tourism since almost 1.15 million tourists flies back and forth to the country, visiting popular tourists spots every year.

Philippine Government is finding ways and taking action using the media  in explaining to other countries, especially in Hong Kong and China, that the incident is an isolated case and that there is no breakdown of law and order in the Philippines, according to Lim.

President Aquino declared this day, August 25, 2010, as the National Mourning day for the hostage victims last Monday.

Office Space Solutions: Serviced Offices in Makati and Manila, Philippines

Friday, June 18th, 2010

Serviced offices offer a much needed convenience to foreign and local companies setting up business in the Philippines. These offices usually come fully-furnished, and are equipped by a separate facility management company. The managing company purchases the individual desks, office space, and operating equipment, then rents them out to client companies. Also referred to as executive suites, managed offices, business centers, or executive centers, serviced offices boast a large number of benefits, including plug and play options, prominent business adresses, and flexible short term contracts. These types of offices often have more flexible rental terms, compared to conventional leased office space, which are subject to more restrictive leases. Additional office space is easily allocated within short notice, making it more convenient for client companies in general, should a particular business change in size. Serviced offices are also more cost-effective, owing to the fact that client companies do not require to set aside capital for start-up costs and solicitor’s fees.

Most serviced offices are equipped with the latest technology, including plug and play options, high speed internet access and state-of-the-art facilities. A large number of workstations are available to employees, and can be used by anyone. Serviced offices have become a viable alternative to conventional leased office space. They are used buy a large number of foreign and local companies in the Philippines, some of which include start-up business ventures, branch offices, expanding companies, and foreign companies in need of local representation. The accessibility of serviced offices also makes it an attractive option to many companies. Most offices are usually open on a 24 hour basis, and provide high-speed internet access to anyone, anytime. However, serviced offices have their own share of limitations. For one thing, a serviced office often gives clients a generic impression of your company. Serviced offices also have higher monthly rental rates than conventionally leased office space. Most serviced offices are usually found in Central Business Districts (CBDs) like Makati, Manila, Ortigas, and Fort Bonifacio.

Serviced offices in Manila usually range from Php 15,000-30,000 per month, depending on the type of facilities available to the renter. Office rates in Makati, on the other hand, range from Php 15,000-40,000. However, some rates are only given on application. This is usually the case for offices located in premier business areas in the city, such as Ayala Avenue, Makati Avenue and Paseo del Roxas.

According to Michael McCullough of Makati-based real-estate brokerage firm KMC MAG Group, “”Serviced offices offer an immediate business location solution without having to spend all the time and money building out an office. You often get a great corporate address and the facilities you need to impress clients.”

Adds Business Consultant Gregory Kittelson of Manila consulting firm Kittelson & Carpo Consulting, “Many of our smaller clients registering a business in the Philippines take advantage of serviced offices while ramping up on the initial hiring of employees. Once the the company matures and hires more employess, they then leave the serviced office option and look for leased office space throughout Metro-Manila.”

Government Initiative Boosts Tourism Industry in the Philippines

Thursday, June 17th, 2010
A legacy of the Arroyo government, the National Tourism Act (R.A. 9593) has brought Philippine tourism to greater heights, boosting industry growth to 6.64% in the first quarter of 2010. According to statistics from the Department of Tourism, foreign arrivals increased by 7.89%, and domestic tourism by 6.09%. Metro Manila ranked first as the most visited destination in the Philippines, with a 37.10% growth rate and over 437,170 tourists. Cebu placed second with a 3% growth rate and 435,987 tourists, while Camarines Sur was in third place with 348,139 tourists. According to tourism secretary Joseph “Ace” Durano, the government expects at least 5 million visitors in 2010.
Republic Act 9593, or the National Tourism Policy Act of 2009, was ratified by the Senate and House of Representatives on March 4-5, 2009. The law aims to strengthen the tourism industry in the country, and promote the Philippines as a premier tourist destination in Asia. Some of the law’s components include the upgrading of international competitiveness through the institution of an accreditation, standard-setting, and classification system. Under this law, the Philippine Convention and Visitor’s Corporation (PCVC) would be reestablished as the Tourism Promotions Board (TPB), which would be responsible for marketing the Philippines as a global tourist destination, and emphasizing its other products and services. The law also provides for the establishment of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), an institution tasked with the designation, regulation, and supervision of tourism enterprise zones (TEZs) in the country. The National Tourism Policy enables the creation of “tourism enterprise zones” in strategic areas in the country, including Cebu, Davao, Laguna, Bohol, etc.
The institution of R.A. 9593 has established the Philippines as a premier tourism destination in Southeast Asia. This was evidenced by extensive growth in the Philippines’ tourism industry; according to statistics from the Department of Tourism, over twenty cruise ships docked in the Philippines in 2009. Foreign arrivals in these cruise ships increased by 2.24%, from 17,516 passengers in 2008 to 17,908 in 2009. Tourist arrivals in Puerto Princesa likewise increased by 21%, while tourist volume in Boracay rose by 20%, with 190,094 tourists during the first quarter of 2010. The tourist count in Bohol also increased by 4.20%. Through the coordinated efforts of the Arroyo government and the private sector, the Tourism industry in the Philippines has reported an extensive amount of growth in the last five years. American tourists continue to dominate the Philippine tourism demographic, with Canada coming in at second, and China placing third.
According to Gregory Kittelson of Manila business consulting firm, Kittelson & Carpo Consulting, “We’re not only seeing an increase of visitors in the country, more and more foreign investors are also setting up tourism businesses in the Philippines. This bodes well for the long-term growth of Philippine tourism, which is expected to rise by 15% in 2010. Through the coordinated efforts of the Arroyo government and the private sector, the Philippines has emerged as a noteworthy competitor in the global tourism industry, specifically in Asia.”

Office Space Solutions: Seat Rentals and Seat Leasing in Makati and Manila, Philippines

Thursday, June 17th, 2010

by: Kathleen Yu

Seat rentals are an ideal option for start-up BPO companies and call centers in the Philippines. Not only are they cost-efficient and user-friendly, seat rentals also enable companies to reduce capital expenditures, while focusing on the more important aspects of the enterprise. Seat rentals are purchased on a monthly basis and do not require prior contractual agreements. This makes it a convenient option for companies looking to set-up business operations within a short period of time, minus the legal hassle. As the Philippine BPO industry continues to grow and develop, the demand for seat rentals in business districts like Makati, Ortigas, Fort Bonifacio and Manila is increasing at a rapid rate. There are a large number of alternative seat rental options available to BPO companies and call centers in the Philippines, including plug and play solutions, desk and cubicle offices, and many others.

However, an important thing to consider, even before renting seats, and setting up your BPO, is the location of your business. Location can make or break a business venture. There are a large number of important BPO locations in the Philippines, including Makati and Manila. Both cities have their respective advantages and disadvantages, as well as significant differences in terms of start-up costs, utilities, electrical and rental expenses. Makati City is the biggest financial district in the Philippines and home to a large number of foreign and local enterprises. The city houses the prestigious Makati business club, the Philippine stock exchange, the American Chamber of Commerce, and numerous embassies. Makati is also a thriving IT Park, boasting a large number of PEZA buildings and commercial office space for rent, lease or sale.

According to Michael McCullough, co-founder of real estate brokerage firm KMC MAG Group, “Makati City offers a much safer location for employees working during the evenings, which makes it a better location than Manila for both call centers and seat rental facilities.”

As Makati City is home to some of the largest local companies and foreign multinationals in the Philippines, it is considered an ideal location for setting up a call center or BPO facility. Seat rentals in Makati range from USD 150-300/month per seat. However, prices vary according to the quality of the computer equipment, and the types of facilities available to the renter. Manila is also considered a good location for setting up a BPO or call center enterprise. It is the capital of the Philippines, and the center of government in the country. Manila is also a business district, although not as high profile a location as Makati. The advantage of this is that seat rentals and commercial office space in Manila are usually cheaper than in Makati. The work atmosphere in Manila is also more laid-back and relaxed. Seat rentals in Manila range from USD 150-200/month, with varying prices depending on the available inclusions: computer hardware, VOIP equipment, etc. Start-up costs in Makati and Manila range from Php 5,000-10,000, depending on the size of your business enterprise.

Both locations are well-suited for BPO companies and call centers, and are prime business locations for many foreign and local companies setting up business in the Philippines.

Smartmatic alarms lawmakers regarding program errors

Thursday, May 27th, 2010
MANILA, Philippines - Congress, sitting as the National Board of Canvassers, resumed session on Wednesday afternoon but not a single vote was counted.
Day 2 of the joint session was instead spent grilling officials of the Commission on Elections (Comelec) and election automation system provider Smartmatic on the authenticity of the results of the recent national polls.
The admission of Smartmatic Asia-Pacific president Cesar Flores of innocent program errors caused concerns that there may have also been program errors in computing the votes.
Among the errors uncovered so far:
1.The Canvassing and Consolidation System– the server that receives the electronic certificates of canvass for president and vice-president–that was sent to the House of Representatives showed a bloated number of registered voters.
When the machine was initialized, House and Senate staff discovered that the machine showed a total of 256 million registered voters.
2.The Election Returns in some localities showed time stamps as early as April 27, suggesting that voting happened before the May 10 elections.
“There could have been voting prior to May 10, but they could not transmit results,” said Senator Juan Miguel Zubiri.
Bloated numbers
Flores admitted that an “error in the application” caused the bloated number of registered voters. Instead of adding the registered voters per precinct, the application added the registered voters in the precinct, municipal, and provincial levels.
“The number of voters was multiplied by 5–our mistake,” Flores said. The actual number of registered voters in the Philippines is 51.3 million.
Flores assured that computer glitch was limited to the number of registered voters. “The only variable affected is the number of registered votes. It does not alter the votes itself,” he said.
But the lawmakers were wary.
“There is an error already from the very start. Is it not possible that there will be an error in the computation of votes?” said Maguindanao Rep. Didagen Dilangalen.
“We want an assurance that the program was not corrupted. If there was an error, it gives us the impression that the program inserted therein may have been a wrong program. That is the most important machine today. It will be the basis of our canvass. Imagine, the most important machine is wrong?” said House Speaker Prospero Nograles.
“He [Flores] said there is nothing wrong with the PCOS. But in effect, there could have been something wrong with the transmission of the contents of the PCOS machines. I’d like to ask, who made the mistake? So that we can sanction him if necessary–in the interest of national welfare,” said Senate minority leader Senator Aquilino Pimentel.
Flores responded: “My personnel. There is a group of programmers.”
Early voting?
The time stamps, on the other hand, were a result of the clock of the PCOS machines going wrong, Flores said.
While he said early voting could have happened if the people in charge of the machines allowed it, there was a procedure during Election Day to make sure that the PCOS machines start from zero.
“We are not responsible for the way Board of Election Inspectors (BEI) use the machines…. If the machines are delivered, the ballots are there, are there are no watchers, the same as the manual elections, you can do those things,” Flores said.
“Is it possible that people who control the machines can vote prior to May 10? When the machines are opened on actual voting on May 10, what will happen to the votes cast prior to May 10? Would that be recorded already? If it is possible that election be made, ballots can be put inside the machine by people who have control over the machines, then the due execution and authenticity of the same would be questionable,” said Nograles.
But Flores said there is a protocol on Election Day that the PCOS machines should be initialized before BEIs and poll watchers to show that nothing was stored inside the machine.

“More importantly, let’s remember that the ballots are precinct-specific. The only ballots that the machine can read are the ballots belonging to the precinct,” said Flores.

source: abs-cbn news

US visa fees increased

Wednesday, May 26th, 2010

A day after implementing an online United States visa application scheme for non-immigrants, the US Department of State has decided to increase Machine-Readable Visa (MRV) fees worldwide starting June 4.

The new fee for tourist/business visas (B1/B2 category), seafarer/crew visas (C1/D), student visas (F) and exchange visitor visas (J) will now be pegged at $140, or P6,300, while the MRV fee for work visas (H, L, O, P, Q, and R categories) will be priced at $150. or P6,750. In addition, the trader/investor visas (E) will be priced at $390 or P17,550, while the fiancé/Spouse (K) visas at $350, or P15,750.

All other applicants who fall under non-immigrant categories will have to pay $140, or P6,300. Applicants with appointments before June 4, however, will pay for their visa fees at the current rate of $131. or P5,895.

Metro Manila Water folks

Wednesday, May 26th, 2010

The National Water Resources Board (NWRB) has granted the petition (MWSS) for additional water allocation for the adequate domestic water supply demand of some 12 million consumers in Metro Manila and nearby provinces.

The NWRB is an attached agency of the Department of Environment and Natural Resources (DENR) tasked to regulate and allocate water resource in the country.

Engr. Jorge Estioko, NWRB chief water resources development officer, said the MWSS was granted their request for an adjustment in the previous water allotment of 35 cubic meters per second (cms) or 3,045 million liters per day (MLD).

The MWSS asked for additional three cms in water allocation, however, Estioko said NWRB only granted them two cms supplementary share until May 31 because the Angat Dam is still under critical level.

The present allocation of MWSS, which it distributes to water concessionaires Maynilad Water Services Inc. (MWSI) and Manila Water Company Inc. (MWCI), is now 37 cms or 3,219 MLD.

As of Tuesday, Angat Dam remains at a critical level with 170.57 meters or 13.66 meters below its normal level.

“If water level does not improve in June, we will re-implement 35 cms water allocation for Metro Manila,” Estioko said.

When asked if the adjustment in water allotment could have adverse effect on the dwindling level of Angat Dam, Estioko said, “The difference from the projected level of Angat Dam by the end of June will only be 25 centimeters lower than the initial projection.”

Earlier, the NWRB projected that the level of Angat Dam will reach its lowest in six years at 165 meters by the end of June.

About 97 percent of water source in Metro Manila comes from Angat Dam, while the remaining 3 percent are sourced from deep wells.

Estioko said the normal water supplied to Maynilad and Manila Water is 46 cms or 4,000 MLD, which is split 60-40 with the higher share for Maynilad.

Maynilad currently serves seven million customers in Metro Manila’s west zone, while east zone concessionaire Manila Water has five million consumers.

Commerce Flows into Subic, Philippines

Tuesday, May 25th, 2010

By: Eden Lorren Pabalan

Subic Bay, Philippines is bordered on the east by Zambales mountains and the South China Sea on the west. A former US Naval base, Subic is now a freeport zone and a gateway for the transportation of goods. And, while it’s topography is more of a jungle paradise, technology, infrastructure, and industry have changed the landscape and the standard of living in the community. Real estate and BPO companies doing business in the Philippines are rising fast in the area and investors are now looking at Subic as a top BPO destination in the country.

The newly completed SCTEx (Subic Clark Tarlac Expressway) a P36 billion peso expressway is a leading avenue through Olongapo, Tarlac and bridges the three cities of Tarlac, Subic, and Clark. Access from the Metro Manila area through the superhighway is convenient, safe and predictable.

Investments in office space and residential infrastructure are growing in Subic. Subic Bay Gateway Park is a commercial hub  home to a number of Korean and Taiwanese companies doing business in the Philippines. It offers 300 hectares of prime industrial land.

Ayala Land Inc., the Philippine’s biggest real estate developer has signed a 50-year lease with the government to develop a 7.5 hectare  commercial hub along Rizal Highway, within the Subic Bay Freeport and are in the steps of final completion for Anvaya Cove, a luxury resort area. An estimated P3 billion pesos are on the line for this investment venture. The proposed plan for the vicinity is to establish a shopping mall, hotel, and a Business Process Outsourcing building.

PLDT Corporation is also eyeing Subic as a BPO hotspot in the Philippines. The company has already inked a 17 hectare development project with the Subic Bay Metropolitan Authority, an  ICT hub that will bring the freeport to the frontlines of ICT infrastructure development in the country. Other call center companies are already open for business in the area, such as US-based Sutherland Call Center and Teletech.

According to Outsourcing Consultant Gregory Kittelson of Kittelson and Carpo Consulting, a Makati-based firm, “We are now seeing more interest from foreign investors in Subic.  Every year,  more and more of our clients are setting up operations in Subic and getting involved in outsourcing, shipping, and the importation and exportation of goods and services in the area.”

The growing BPO business in Central Luzon is continually creating job opportunities for Filipinos. Subic will soon be known not only as a beach and diving paradise, but also as a busy and prosperous economic zone in the Philippines.

Oil firms to reduce pump prices by P0.50/L

Tuesday, May 25th, 2010

MANILA, Philippines - Oil firms on Monday announced rollbacks in the pump prices of their petroleum products by P0.50 per liter effective Tuesday.

Chevron Philippines, through corporate communications manager Tony Nebrida, will be the first to implement the rollback in prices on Tuesday. It will implement the price reduction (Value-Added Tax included) on its Gold, Gold E10, Silver, Silver E10, regular gasoline, diesel, and kerosene products at 12:01 a.m.

Nebrida said the reduction in prices is due “to further lowering of MOPS [Mean of Platts] prices.”

Petron Corp., Seaoil Philippines and Eastern Petroleum, in separate announcements, said their respective price rollbacks for their gasoline, diesel and kerosene products will be implemented 6 a.m. Tuesday.

Petron said that with the latest price adjustment, premium gasoline went down to P2.75 per liter, while diesel, kerosene and regular gasoline were rolled back by P2.50 per liter in the past nine days.

Phoenix Petroleum, meanwhile said it will implement its price adjustments for both its gasoline and diesel products 10 a.m. Tuesday.

It said the latest price adjustment will “reflect the continued decline in the prices of petroleum products in the international market.”

Global BPO: Philippines vs. Malaysia

Monday, May 24th, 2010

By: Kathleen Yu

Malaysia and the Philippines are two of the largest outsourcing destinations in Southeast Asia, both countries competing to achieve higher market shares in the global Business Process Outsourcing “BPO” industry.

Hailed as the “2nd top Business Process Outsourcing (BPO) Destination in the Asia Pacific” by global market intelligence provider IDC, the Philippine BPO sector has boasted an annual growth rate of 46% since 2006. Three key Philippine cities were recently awarded slots on the “Top Ten Asian cities of the future” by UK-based periodical Financial Times, putting Quezon City at 7th, Cebu at 8th, and Davao at 10th place.

Convergys Philippines is the largest BPO company in the country, employing over 22,000 professionals in the local outsourcing industry. Philippine BPO revenues were up by 19% in 2009, totaling to $7.2 billion. The Philippines is considered the third largest BPO destination in the world, dominating 15% of global markets.

According to BPO Consultant Gregory Kittelson of Makati-based firm Kittelson and Carpo Consulting, “With low operational costs and a large number of government-issued tax incentives, the Philippines is an ideal investment destination for foreign multinationals and other start-up companies.  Foreign BPOs prefer setting up operations in the Philippines because the Philippine workforce is exceptionally skilled, and boasts a large number of English-speaking professionals. Filipinos are also known for their hospitality and friendly manner, which has earned the country an enviable reputation as one of the prime outsourcing destinations in the world.”

Located south of the Philippines, Malaysia is another prime outsourcing location in the Southeast Asian region. The country is home to a number of international BPO companies, like Scicom (MSC) Bhd, SnT Global Sdn Bhd, and Vsource Asia Bhd.Malaysia offers unique advantages in government support, human capital, infrastructure, and domain expertise, which makes it an ideal destination for start-up BPOs.

Contact centers and BPO companies in Malaysia are growing in number, mainly because of the Malaysian economy’s resiliency in facing the global economic crisis. The inflation rate in Malaysia is 2.4%, lower than most Southeast Asian countries.

Bolstered by a change in political leadership, Philippine BPO is expected to register a 30-40% profit increase for the first quarter of 2010. The Malaysian economy, on the other hand, will continue to feel the effects of the 2009 Global Economic Recession, which has already caused a 2% slump in the country’s GDP for the previous year alone. Although both countries are ideal outsourcing destinations, the stability of the Philippine economy puts it at a sharp advantage over less secure Malaysian markets. Whether similar trends will prevail in the future remains to be seen.