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Tourism in the Philippines has seen considerable growth in recent years, with over 7000 islands and an abundance of rich cultural traditions making the archipelago a regionally competitive destination. The closure of popular destination Boracay for six months in 2018 shone a light on other destinations and allowed the sector to diversify its offerings to cater to a wider array of tourists, as well as boost the country’s reputation for being sustainable and environmentally aware. The government’s goal of attracting 12m tourists per year by 2022 will be aided by the emergence of new coastal and island destinations, combined with the growth of medical tourism, cruise tourism, and the meetings, incentives, conferences and exhibitions segment. This chapter also contains interviews with Alan Peter Cayetano, Chairman, Philippines South-east Asian Games Organising Committee; and Pocholo D Paragas, COO, Tourism Infrastructure and Enterprise Zone Authority.

Industrial expansion has played a leading role in the Philippines’ economic progress, with industry’s value added doubling between the 1980s and early 2000s. From a manufacturing standpoint, a number of inherent advantages make the country an enticing production base and consumer market, including its strategic location, large population, and burgeoning middle class. However, congested transport networks and the relatively high cost of power have restricted progress. Favourable macroeconomic conditions – lower inflation and increased purchasing power – have bol-stered consumer confidence in the Philippines. Like¬wise, enhanced business strategies and new product lines have played a key role in expanding the retail sec¬tor in recent years, as has the continued development of e-commerce and smartphone penetration. This chapter also contains interviews with Satoru Suzuki, President, Toyota Motor Philippines; Gerard Brimo, Chairman and CEO, Nickel Asia Corporation, and Chairman, Cham¬ber of Mines; and John Murphy, CFO and Former Presi¬dent for Asia Pacific, Coca-Cola Company.

The Philippines’ rapid development has outpaced the capacity of the energy sector to meet surging demand. In response, long-term policies have been implemented to promote upstream investment, diversify energy sources and drive down the cost of electricity. Notable projects include the construction of the country’s first liquefied natural gas import terminal and regasification facility, as well as the Visayas-Mindanao Interconnection Project, which should improve the reliability and efficiency of energy supply. Moreover, while disputes with China over sovereignty in the South China Sea – also known as the West Philippine Sea – have hindered upstream development, recent agreements on exploration and development activities in these areas could offset declining reserves at the Malampaya gas field, the Philippines’ primary domestic source of gas. This chapter also contains interviews with Erramon Aboitiz, CEO and President, Aboitiz Equity Ventures and Aboitiz Power Cor¬poration; and Dennis A Uy, president and CEO, Phoenix Petroleum.

This is an important period of transition for the Philippine insurance sector, as stakeholders attempt to meet a range of new regulatory requirements designed to expand the industry’s depth and reach. There has been strong growth in profitability and gross written premium in recent years, generated by a wide range of insurance types and entities. Indeed, one of the main characteristics of the Philippine market is that it includes not only conventional life and non-life insurance, but also composite companies, pre-need outfits, mutual benefit associations, health maintenance organisations, and micro- and macro-insurers. All segments are likely to benefit from continued efforts to strengthen the market by the sector regulator, the Insurance Commission. Moves towards establishing a more comprehensive disaster and emergency fund are also expected to improve market standing and spread risk in the years ahead. This chapter also contains an interview with Rahul Hora, CEO, AXA Philippines.

One of the oldest stock exchanges in Asia, the Phil¬ippine Stock Exchange (PSE) is delivering robust returns. In the decade leading up to 2018 there were more years of gains than losses, with the 2009-14 period showing six consecutive years of expansion. Reinforcing the underlying trend, during the first few months of 2019 the PSE index began a slow and steady climb, up from 7466.02 points at the end of 2018 to 7859.78 points near the end of August 2019. The period ahead should see more listings on the Philippine Dealing and Exchange as the public infrastructure drive gathers pace, giving investors a comparatively less volatile means of investment in the Philippines’ capital markets. This chapter also contains interviews with Ramon S Monzon, President and CEO, Philippine Stock Exchange; and Lynette Ortiz, CEO, Standard Char¬tered Bank Philippines.

With strong capitalisation and credit growth on the back of robust GDP figures and falling inflation, the Philippine banking sector now faces a year in which consolidation of gains and expansion into new demographics are on the agenda. The country continues to be well served by a variety of lenders, with universal and commercial banks supplemented by a wide array of thrift banks, rural and cooperative banks, and other microfinance institutions. Innovations in financial technology (fintech) are bringing banking to many more Filipinos via technological devices, while acting as a disruptor to traditional banking methods. There is increasing focus placed on smaller lenders as they gradually embrace fintech in a bid to extend their reach to unbanked and underbanked populations. This chapter also contains interviews with Benjamin E Diokno, Governor, Bangko Sentral ng Pilipinas; Nestor Tan, President and CEO, BDO Unibank; and Cezar Consing, President, Bank of the Philippine Islands.