Kidnapping a further blow for tourism

By staff reporters and wire services

MANILA, Philippines -- The latest kidnapping in the Philippines is a drama the nation's tourist industry and broader economy could do without.

Less than two years ago the country set itself an ambitious target of 2.3 million tourists a year, estimated to pump around $3.5 billion a year into the nation's economic coffers.

While the industry does not rival agriculture and manufacturing as mainstays of the economy, the growth of the industry from just over 1 million visitors 10 years ago was a rare bright spot for a struggling business community.

Much of the Philippine economy has yet to fully recover from the Asian economic crisis of 1996.

But the spate of tourist-related terrorism over the last year has put paid to any hopes of meeting the industry's growth targets and jeopardizes much-needed foreign investment in tourism infrastructure.

Visitor numbers down 10 percent

The majority of tourists to the Philippines still come from the United States. This is despite two separate hostage incidents last year involving American tourists and a travel advisory warning being placed on the country the U.S. State department.

But numbers last year were down nearly 10 percent on 1999 and this latest incident -- and a renewed travel warning issued Sunday -- is likely to worsen the situation.

A significant proportion of the tourist growth the Philippines' was hoping for was expected to to come from the bourgeoning "eco-tourism" and "adventure-tourism" sectors.

But with an increasing number of destinations seeking this trade, the Philippines may now be considered just too risky by many tourists and tourism operators.