MANILA, Philippines--Investments and tourism revenues are expected to flow stronger into Cagayan Valley as the Cagayan Special Economic Zone and Freeport prepares for this year's construction of an P8-billion airport.
Jose Mari B. Ponce, administrator and chief executive of the Cagayan Economic Zone Authority, said in a statement that the project, which will be undertaken through a joint venture with First Cagayan Leisure and Resort Corp., would cement the ecozone's status as the main lure for investments and tourism earnings in the region.
Ponce said the planned international airport would transform the free port into a major transshipment point for trade in the Asia-Pacific rim, competing with the likes of Hong Kong and Singapore.
The project involves a planned international airport designed to accommodate Boeing 737s and is targeted to start operations in 2010.
Cagayan Valley or Region 2 groups the northeastern Luzon provinces of Cagayan, Isabela, Nueva Vizcaya, Quirino and Batanes.
Ponce said a six-month feasibility study was expected to be completed by mid-2008, which may allow the project to break ground within the year.
Citing the National Economic and Development Authority's 2007 regional economic situationer for Cagayan Valley, Ponce said the CSEZFP has lured a total of 70 locator firms that have committed to invest P8.19 billion--representing up to 3,236 jobs--since its creation in 1995.
Ponce said that as a major economic hub in Cagayan, the CSEZFP in Sta. Ana town was the fastest growing industrial, logistics and tourism hub in the country.
"With more investments expected to come in over the next few months (through the airport project), we expect CSEZFP to maintain its role as a catalyst of growth in the region," he said.
The official said Neda's report showed that investments in the region were largely dominated by the expanding number of locators in the free port.
He said the bulk of the investment growth came from interactive gaming support services, which increased by 70.6 percent to P2.9 billion in 2007 from P1.7 billion in 2006.
The report also credited CSEZFP for generating 2,609 jobs as of 2007.
Ponce quoted the NEDA report as saying "without the CSEZFP gains, decreases in investments experienced in the other sectors could not be cushioned."
He added that based on the data provided by the Business Name Registration of the Department of Trade and Industry, the region's total investment outside CSEZFP fell 74 percent from P6.7 billion in 2006 to P1.8 billion in 2007.
As for tourism, total expenditures in the region hit P1.43 billion in 2007 while the number of domestic tourists reached 623,431 and those of foreign arrivals reached 20,462.
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