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As rich in natural beauty as regional tourism leaders Thailand and Malaysia, the Philippines’ history of under-investment, weak promotion and security troubles has made it one of the least-visited large countries in the area. But the Philippines is pushing hard to develop the potential of its tourism sector. Visitor numbers and revenues have been climbing steadily, though less quickly than those of neighbouring countries. Under the administration of Benigno Aquino III, the sector has received greater attention and growth has accelerated. The tourism sector is likely to roughly maintain its current growth rates over the next few years, with foreign tourist receipts growing at 10-15% annually and domestic tourist receipts rising by 20%. The acceleration of overall economic growth in 2013 suggests that domestic tourism growth could also rise further. This chapter contains interviews with Ramon R Jimenez Jr., Secretary, Department of Tourism; and a roundtable with Jorge Sarmiento, President & COO, Philippine Amusement & Gaming Corporation (PAGCOR); Thomas Arasi, President & COO, Solaire Resort & Casino; and Clarence Chung, Chairman, Melcro Crown Resorts.

For a number of years the Philippines worked hard to lower tariff rates, with the average weighted tariff applied falling from 22.4% in 1989 to a low of 2.6% in 2003. However, rates have begun to creep up again. The Philippines is actively considering a number of liberalisations to better align itself with the more open of its regional peers and to better integrate itself with the global economy. Whether to totally open markets or to engage in a sort of low-level managed trade is a debate raging throughout the world, especially in East Asia, and this issue is very much a part of the conversation in the Philippines. This chapter contains interviews with Gregory Domingo, Secretary, Department of Trade and Industry; Arnel Paciano D Casanova, President and CEO, Bases Conversion and Development Authority (BCDA), and Chairman, Philippine Investments Promotions Plan (PIPP) Steering Committee; and Stephen P Groff, Vice President for East Asia, South-east Asia and the Pacific, Asian Development Bank.

As the government pursues its infrastructure development programme, real growth in the sector is expected to reach 5.9% per annum between 2013 and 2017. Backed by a favourable macroeconomic environment, political stability and increased spending, the country’s transport sector is slowly being modernised. In 2013 more than $7.2bn has been budgeted for port, road and rail infrastructure upgrades. In 2014 the government has allocated around $9.6bn – an increase of 35% -- for public works projects. Despite various challenges, the overall outlook for the transport sector in the medium term looks positive and is supported by a healthy economy, decisive leadership, and a strong financial situation that has made the nation an outlier of growth in a region that is otherwise buffeted by economic troubles. This chapter contains interviews with Joseph Emilio Aguinaldo Abaya, Secretary, Department of Transportation and Commerce; and Ramon S Ang, President and COO, Philippine Airlines.

An overhaul of the regional insurance regulations in the West African CFA zone is expected to yield its best results in Côte d’Ivoire, the largest market in the sub-region. With a penetration of about 3%, according to the country’s insurance association, the Association des Sociétés d’Assurances de Côte d’Ivoire (ASA-CI), insurers are only just scraping the surface of the market’s potential.

In addition to an article on the evolving art scene in Lima, this chapter contains useful tips for first-time travellers to the country, including hotel listings and contact information for various institutions, such as government agencies and foreign missions.

For the past two decades, the Peruvian legal framework has developed along similar lines, promoting foreign investment and competition, as well as social inclusion. This chapter highlights some of the most important recent changes that have occurred in the areas of mining, electricity, tax, employment of foreign nationals, corporate transactions, banking and finance. In addition, it features a viewpoint with Ismael Noya, partner, Estudio Echecopar, a member firm of Baker & McKenzie International, on Peru’s evolving business environment.