Philippines

The mining industry in the Philippines seems set for a boom, with earnings advancing and large-scale projects scheduled to come on-line over the next few years. However, lingering concerns over the global economy could dent demand and slow the flow of investment, as could uncertainty over regulations governing the industry.

Although the Philippines economy looks set to grow in 2011, it seems likely that the rate of expansion will be less than that recorded over the past year or so, with both international and domestic factors weighing on growth momentum.

Manila is looking to launch a new strategic plan to maximise the country’s tourism potential, raising the sector’s profile internationally while boosting employment and investments in key infrastructure and facilities to improve service provision. However, even if the plan is successfully implemented, the Philippines will still have a long way to claim a greater share of regional hospitality sector.

With interest rates still low and consumer demand strong, the Philippines real estate sector is off to a good start this year. However, continued delays in implementing the legal framework for real estate investment trusts (REITs) may slow momentum in the property market.

The Philippines’ retail sector will be looking to turn solid economic growth and burgeoning consumer confidence into profits over the coming year and beyond, though a lack of prime space in top-end malls and high street locations could see rental costs rise, draining black ink from the ledgers of some in the industry.

The Philippines’ aviation sector is soon to undergo one of the most dramatic overhauls in its history, with a new open skies policy about to be implemented, granting foreign carriers access to provincial airports across the country. The government has said this measure will bolster tourism. However some critics believe liberalising the industry will do little to increase visitor numbers unless Philippine airlines are given reciprocal landing rights overseas.