International Business : SPOTLIGHT ON THE PHILIPPINES : Some Tips on Philippine Travel

The Philippines is expecting a dramatic increase in business travel over the next few years as the Southeast Asian marketplace continues to outpace growth in many other parts of the world.

Tourist arrivals in Manila were up 20% to 25% last year, with nearly 19% of them coming from the United States, said Jose Ebro, a spokesman for the Philippine Embassy in Washington. That figure includes people traveling on business.

The Philippine Embassy and the Philippine Department of Tourism in Los Angeles consider the country safe for those traveling to business locations. However, there are areas of the country that are considered unsafe for travel. For example, insurgent and criminal activity make traveling unsafe on Samar Island, in rural areas of Panay Island and in the interior regions of Negros Island, according to the U.S. State Department’s Bureau of Consular Affairs. Certain provinces in northern Luzon and in the Mindanao region are also considered dangerous.

For current information on travel advisories and areas of instability, call (202) 647-5225. In general, short-term business travelers in major urban areas or tourist sites are at less risk of becoming targets of terrorism than are long-term residents or U.S. officials.

Business Zones

The major business destinations in the Philippines, outside of Manila, are the “industry estate zones,” also known as “processing zones.” These are areas designated for development by the Philippine government with tax incentives to attract foreign investment. Companies such as Texas Instruments, Motorola and Intel, as well as a number of multinational textile and food-processing giants have set up bases of operation in these zones.

The major processing zones are Cagayan de Oro, a strong agricultural center on the island of Mindanao; Baguio in the north, on the main island of Luzon, which attracts the microchip processors because of its low-dust, cooler environment; the island of Cebu, site of a number of Japanese manufacturing firms; Subic, a former U.S. military installment on Luzon, which has been converted to a business zone, and Cavite, also on Luzon.

All the processing zones except Cebu and Cagayan de Oro are accessible by bus or car. Subic, for example, is about a three-hour drive from Manila, while Cavite is a little more than an hour away. Cebu and Cagayan de Oro are reachable by plane; daily flights from Manila take about 45 minutes to Cebu and 1 1/2 hours to Cagayan de Oro, according to Rusty Ricaforte, regional director of the Philippine Department of Tourism in Los Angeles.

Getting Around

The major airline serving the Philippines both internationally and domestically is Philippine Airlines. Air travel within the country is relatively inexpensive, so flights are usually full; tickets should be purchased in advance. In addition to PAL, there are two domestic carriers, Pacific Asia Airline and Aero Lift, which offer more limited service.

Car rentals are available through the large hotel chains, and the roads are manageable for even first-time business travelers. A good map is a necessity. The “Southeast Asia Handbook” by Carl Parkes (Moon Publications) recommends the “Republic of the Philippines Roadmap” published by the National Bookstore. It is available in most Manila bookstores.

In Manila, it’s preferable to take a taxi or hire a driver, Ebro said. The embassy recommends that first-time visitors get a cab through their hotel, which typically screens the drivers. Also, all the major hotel chains have shuttles from Ninoy Aquino International Airport, which is about 12 kilometers away. Unlicensed or so-called pirate cabs can be a problem at the airport, so it’s best to arrange transportation in advance or take a hotel shuttle.

Otherwise, Golden Cabs (black with gold lettering) or EMP cabs (white with yellow stripes) are reputable companies. Make sure the meter is working in any cab you take.

Jeepneys, the Philippine form of mass transportation--”with the emphasis on mass,” said Ebro--are colorful converted buses, jeeps and carts and are not recommended for business travelers. Neither are trains, which have not been well-maintained in recent years.

The bus system, however, is adequate and buses are air-conditioned, he said.

When using any form of public transportation, be aware that pickpockets are common. Be alert if someone tries to distract you by pointing at your clothes as though you have spilled something or by asking you for directions. Pickpockets often work in teams. Also, Knockout drugs are easy to get and may be used to rob travelers, so don’t accept free coffee or beer from strangers.

Doing Business

One of the advantages of doing business in the Philippines is that you will seldom need an interpreter. Although the national language is Tagalog and there are more than 70 dialects spoken throughout the islands, about 90% of the population speaks English. Spanish is also commonly spoken.

When planning a business day, take into account that many Filipino business executives start their days early with breakfast meetings. They tend to get to their offices by midmorning. Lunch ends about 2:30, so midafternoon is another good time to catch people in their offices.

Filipinos are familiar with U.S. business customs, and, like Americans, they tend to conduct business at lunch and dinner meetings or on the golf course.

Unlike in America, however, the meeting is not considered concluded once the business portion is out of the way.

“The business relationship is not considered complete until it is friendly,” Ebro said.

Hotels

“All the major hotels have business rooms with fax and computer capabilities,” Ebro said. And as long as you are in urban centers or industrial zones, the phone system works fine.

Phone service in outlying areas is less reliable, he said.

Recommended hotels for business travelers in Manila include the Holiday Inn, Manila Peninsula (part of the Hong Kong-based Peninsula group), the Philippine Plaza (part of the Westin chain) or the Shangrila, another Hong Kong-based chain.

The Hotel Nikko, a Japanese chain, caters more to the Japanese business traveler.

For information on hotels near industrial zones, contact the American Chamber of Commerce in Manila at 011-63-2-818-7911 or the Philippine Department of Tourism in Los Angeles at (213) 487-4525.