12 BUSINESS NEWS PHILIPPINE ASIAN NEWS TODAY August 1 - 20 , 2018
Coach bags Made in PH
The Philippines supplied $ 500 million worth of bags to Coach in 2017 , more than five times following a slew of expansion since the American designer brand started operating in the Philippines more than 8 years ago following a slew of expansion .
Maritess Agoncillo , executive director of Confederation of Wearable Exporters of the Philippines , said new investments are expected if shoes are included in the Generalized System of Preferences ( GSP ) of the United States .
According to Agoncillo , four groups with 8 to 10 factories are now making Coach bags in the Philippines mostly in Bataan . These operations employ about 45,000 .
In 2010 , exports were just barely $ 70 million to $ 80 million .
At $ 500 million , the Coach group accounts for half of total garments and wearable exports from the Philippines .
According to Agoncillo , the grant of GSP privileges on leather goods — comprising 28 tariff lines — from the Philippines has paved the way for the entry of not just Coach but other bag brands like Michael Kors and Kate Spade .
Agoncillo expects the same for shoes if it does qualify for GSP .
“ There is an initiative among American industry buyers to US Congress to include shoes in the GSP ,” she added .
Manufacturers of Coach bags hbags from the Philippines have grown to become a $ 500-million a year exports , seven years since the American iconic band started sourcing from the country .
Last year , the trade department
WWW . PHILIPPINEASIANNEWSTODAY . COM
PNT Foreign Exchange
$ 1.00 Cdn = P 40.72Php
$ 1.00 US = P 53.55 € 1.00 EUR = P 60.67 D1.00 BHD = P 142.00 R1.00 SAR = P 14.27 ¥ 1.00 JPY = P 0.48
held a forum with American firms to discuss potential relocation and expansion of their manufacturing facilities in the Philippines . These included Tellas Limited ( formerly Luenthai USA ), Under Armour Inc ., Michael Kors ( USA ) Inc ., Ralph Lauren Corporation , Coach Inc ., and the Ascena
Retail Group Inc ., ( makers of Ann Taylor , Loft , Lane Bryant , Dressbarn , and Catherines ) which were encouraged to take advantage of the GSP on travel goods ( including luggage , handbags , backpacks , tote bags ). ( Malaya )
Lawmakers push for more aggressive tourism campaign
House Members on Tuesday cited the need for the Department of Tourism ( DOT ) to be more aggressive in its tourism campaign to lure more tourists to visit the country and generate more revenues for the government .
During the hearing of the House Committee on Appropriations on the DOT proposed budget of P3.082 billion for 2019 , Rep . Johnny Ty Pimentel ( 2nd District , Surigao del Sur ) said the DOT should step up in improving and promoting tourism in the country .
“ We have to exert more effort in promoting our country to entice more tourists to come to the Philippines . I believe that our country is more beautiful . I have been to South East Asian countries , and I believe we have more to offer than them ,” said Pimentel .
The budget hearing was presided jointly by Vice Chairpersons Michael John Duavit ( 1st District , Rizal ) and Magnolia Antonino ( 4th District , Nueva Ecija ).
Rep . Estrellita Suansing ( 1st District , Nueva Ecija ) prodded the DOT to work closely with the Department of Public Works and Highways ( DPWH ) in determining the priority projects for the development and improvement of tourism roads which are essential in encouraging tourists to visit even faraway scenic destinations .
Suansing said good roads make far-flung tourist destinations more accessible to the public .
Tourism Undersecretary Arturo Boncato Jr . said the DPWH allocated P18.6 billion for the development and completion of tourism roads for fiscal year 2019 . Of the amount , P15 billion shall be utilized for ongoing road constructions , while P3 billion shall be for new proposals .
For the Tourism Infrastructure Program , Boncato said the DOT initially projected P38 billion to P39 billion funding to continue their projects and meet their target of covering most of the country in terms of roads leading to tourist destinations by 2022 .
However , the DPWH was able to reallocate funds for tourism roads , he said .
Tourism Secretary Bernadette Romulo-Puyat presented the DOT ’ s plans in ensuring the Philippines as a touristfriendly country to raise foreign tourists arrivals and domestic tourism .
Puyat said the DOT is actively talking to Department of Transportation ( DOTr ) Secretary Arthur Tugade about the opening of new airports and putting up of night ratings in smaller airports .
Meanwhile , Undersecretary Benito Bengzon Jr . cited some initiatives being
undertaken by the DOT include the following : ( a ) improvement of the arrival experience ; ( b ) construction of tourism roads ; ( c ) development of new airports ; ( d ) installation of night ratings in smaller airports to allow night flights ; ( e ) advancement of promotions ; and ( f ) enhancement of safety and security measures in tourist destinations .
Bengzon said the DOT is already planning to deploy multilingual front liners to provide convenience to tourists from non-English speaking countries , such as China , Korea and Japan , when conversing with airport service providers .
In terms of promotions , Bengzon said the DOT shall expand their market base to new geographic markets such as the Middle East , Europe , Turkey , and Israel . At present , the core markets that provide the bulk of inbound arrival are Korea , China , USA , Japan , Taiwan , and Australia .
The DOT also shall bid for a media buying agency to ensure reach of its target audience , he said .
Bengzon said the DOT also plans to begin shifting from traditional media to the digital platform , taking into consideration that most modern-day travelers are using their smart phones to get information on tourism as well as book their
Tax effort rises to record on TRAIN
The country ’ s tax effort rose by 1.01 percentage point , the highest first semester tax effort ever achieved , as the first phase of the Tax Reform for Acceleration and Inclusion ( TRAIN ) law took effect , the Department of Finance ( DOF ) said .
The DOF said in its latest economic bulletin the tax-to-gross domestic product ( GDP ) ratio went up from 14.22 percent to 15.23 percent in the first half of 2018 .
Almost half or 0.4 percentage point is due to TRAIN and the rest or 0.61 percentage points to tax administration improvements , the DOF added .
Specifically , tax revenues grew by 17.4 percent , with Bureau of Internal Revenue collections rising by 13.7 percent and Bureau of Customs collections increasing by 32.9 percent , both exceeding the 9.6 percent nominal GDP growth .
The revenue effort also rose by 1.47 percentage point to 17.12 percent , the highest ever achieved during the first semester .
Non-tax revenues went up by 45.1 percent due to higher collections of dividend remittances on national government shares of stocks , guarantee fees , and share in the profit of the Philippine Amusement and Gaming Corp .
Meanwhile , expenditure effort rose by 1.77 percentage point to 19.47 percent , the highest first semester expenditure effort since 2003 , boosting its contribution to GDP growth .
Expenditures grew by 20.5 percent , also outstripping the nominal GDP growth due to the 42.4 percent increase flights and accommodations .
Similar to the Boracay rehabilitation , Bengzon said the DOT shall continue to restore existing destinations to be able to attract and accommodate more international and local visitors .
Among the lawmakers present in the hearing were Reps . Julieta Cortuna ( Party-list , A TEACHER ), Juan Pablo Bondoc ( 4th District , Pampanga ), Ron Salo ( Party-list , KABAYAN ), Alfredo Garbin Jr . ( Party-list , AKO BICOL ), Carlito Marquez ( Lone District , Aklan ), Gary Alejano ( Party-list , MAGDALO ), Bernadette Herrera- Dy ( Party-list , BH ), Edcel Lagman ( 1st District , Albay ), Leopoldo Bataoil ( 2nd District , Pangasinan ), Ciriaco Calalang ( Party-list , KABAYAN ), Mark Go ( Lone District , Baguio ), Strike Revilla ( 2nd District , Cavite ), Prospero Pichay ( 1st District , Surigao del Sur ), Jesus Nonato Sacdalan ( 1st District , North Cotabato ), Deogracias Victor Savellano ( 1st District , Ilocos Sur ), Amado Espino Jr . ( 5th District , Pangasinan ), and Rosenda Ann Ocampo ( 6th District , Manila )./ Monel Gonzales
SOURCE : Office of the Speaker / Press & Public Affairs Bureau
Noted by : Ma . Bernadette C . Dela Cuesta
Executive Director , Press & Public Affairs Bureau
in capital outlays .
“ Fiscal space expanded by TRAIN and tax administration enabled government to boost investments and growth in the first semester ,” the DOF said .
“ Strong macroeconomic fundamentals backed by tax reforms and the Build , build , build program will continue to boost economic growth as the competitiveness of the economy rises and more jobs are created ,” it added . ( Malaya )