08/07/2008 [ tribune.net.ph ]
Eight properties of the Philippine Tourism Authority (PTA), the assets management arm of the Department of Tourism (DoT), including a golf course in historic Intramuros were chosen for speedy privatization within the year.
Tourism secretary Ace Durano told reporters yesterday there were 40 more non-performing properties that the government had identified for possible privatization.
Durano said the DoT had already placed its water supply unit Boracay Water under the management of Manila Water.
Among the other eight properties up for privatization included the Intramuros Golf Course, the Zamboanga Golf Course, Argao Beach Club in Cebu, the Mc Arthur Park in Leyte and the Banawe Hotel.
Durano said the government is forced to offer these properties to interested private group because 70 percent of PTA’s annual budget only goes to subsidize these properties.
The government spends about P700 million every year for the maintenance of these assets, out of the P1 billion yearly budget of PTA. The remaining P300 million goes to infrastructure builup.
Tourist arrivals in the first half of 2008 grew by seven percent accounting for 48 percent of the total target of 3.8 million for the year, according to Durano.
This was despite the limited funding that the department gets annually from the National Government.
Out of its P1.2 billion budget, 60 to 70 percent goes to promotion and marketing equivalent to P800 million.
Ayen Infante
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