First World Philippines

[Midniterider]

Welcome to Boosterworld, LOL. Take deep breath and a step back and put yourselves in the shoes of a typical Western industrial or high tech investor. Other than cheap labor, what is so advantageous about investing in the Phils ? The law about 60/40 foreign ownership is still not fixed and seeing 29 year unresolved criminal cases drag on are you really that optimistic about it changing in the near term ? Right now the congress/senate are preoccupied with both the Bangsomoro framework in disarray and the Mamasapano massacre. Finger pointing abounds and presidential candidates are posturing.  

 

You haven't been able to see how the current events of the political system in complete shambles now looks internationally. The political climate is completely different now from where it was even recently. It's a sea change involving bumbling and corruption on a major scale bared to the world without the smoke and mirrors. And most governments and the corporate world shy away from getting involved in a country going into a major election year. They wait for the aftermath and prepare to do business with the survivors if at all. And we wait for the next supertyphoon to develop during the next season which is coming up. 

 

No infrastructure to speak of or current construction underway on a national basis, and bumbling, corruption and squabbling hobbling the national power grid which is insufficient in most areas under strain. 

 

There's a few bright spots but not enough to lift all boats. Income inequality gets significantly worse every year and the real estate industry is going hell bent for leather to bust the housing bubble. Good luck investing in this environment. 

Edited March 18, 2015 by Midniterider

[Midniterider]

Current, relevant. Can't get any more current than today. 

 

Makati mayoral row worries businessmen

 

""We will be accused by investors that in the Philippines, everything is inefficient, everything doesn't work. We don't know who's leading, who's supposed to make decisions. These kinds of things we cannot afford to have."

 

http://cnnphilippines.com/business/2015/03/19/jejomar-binay-romulo-pe%C3%B1a-dispute-makati.html

Edited March 19, 2015 by Midniterider

[jpbago]

Current, relevant. Can't get any more current than today. 

 

Makati mayoral row worries businessmen

 

""We will be accused by investors that in the Philippines, everything is inefficient, everything doesn't work. We don't know who's leading, who's supposed to make decisions. These kinds of things we cannot afford to have."

 

http://cnnphilippines.com/business/2015/03/19/jejomar-binay-romulo-pe%C3%B1a-dispute-makati.html

 

Suspended PNP Chief Purisma was/is another example. Who really is in charge? Who respects the law? What does suspended mean? Is Bong Bong suspended or not?

[David B]

Incredible thread. I've read it twice. I really must interject. I'm sure that with the depth of this discussion, I will not finish on first writing. .... where to start? 

I'm in/from Florida, one of the most popular tourist destinations in the world. The OP asked about the  (paraphrasing from my memory) PI economic conditions and potential. 

Statistics and examples for any argument are available. No matter what you think, you can back it up. 

In the 12 pages of this thread, one issue from the OP has not been addressed sufficiently. That issue is Tourism, and it's place and affect on the PI economy. I believe it is quite substantial. 

Facebook and YouTube are rife with examples of the PI tourism department promoting the PI. I assure you, as a tourism-based-economy resident, they are and will continue to see great growth in this area.  It goes without saying that Florida real estate is a great investment. I wish I was already positioned to buy my PI property now. 

More later. 

[Dave Hounddriver]

23 minutes ago, David B said:

I wish I was already positioned to buy my PI property now. 

HUGE difference in what property you can own in Florida as opposed to what a non-resident Philippine citizen can own in Philippines and if you are not even a citizen of Philippines you are limited to a condo that will cost you as much in Philippines as it does in Florida so that part of your internal picture may need adjustment.

Now about tourism; Philippines has grown on other people's money for decades now.  Whether those other people are tourists or OFWs they still provide part of the Philippine GDP.  I agree that it is a growth industry.  I believe that the rich will get richer because of it.  I do not believe that money from tourism will find its way into the public infrastructure but it will result in better, more expensive, resorts and restaurants.  Instead of comparing it with Florida I would compare it with Mazatlan, Mexico.  Beaches full of resorts in the '80s and slums as soon as you get off the strip.  I wonder what they have become 30 years later.

[David B]

Thanks Dave.  I'm married to a Filipina, my options aren't that limited. 

The infrastructure around the tourist industry is being upgraded albeit piecemeal. 

The Koreans and Chinese are investing heavily.  Expats are being courted. Conditions for them are better than the older options viz-a-viz Central America. 

We've been researching real estate in the PI. The possibilities run the gambit. I'm optimistic about the opportunities. 

[Sander Martin]

I think the turism is limited alittle with how expensive Philippines is compared to other SEA countries and with the lack of infrastructure (a 150km bus ride Iloilo to Boracay for example takes 6hours and theres no freaking hills or anything - just very crappy roads).

Hotels and especially resorts are very overpriced compared to Thailand and Malaysia for example.

Edited May 31, 2016 by Sander Martin

[Tukaram (Tim)]

With some planning and a lot of work the PI's could become the Mexico of Asia.  I don't mean that as a bad thing... Tourism won't really help the infrastructure much, and it will make the rich richer - but it also bring s a lot of jobs.  Look at Mexico though,  they have a good infrastructure in the tourist areas. Dependable electricity, a lot of hotels have drinkable water, there is even a special 'tourist police' force to take care of tourists.  Mexico does a good job.  Of course 2 blocks away from the hotel strip you have slums (hotel strips are all identical). 

I think they will need to cater to other Asian countries because they are closer. It is just too far to be a major destination for Americans or Europeans. So the pricing will have to be right for the other Asian countries.  I don't know much about Korea and Japan pricing, but right now many of the resorts are charging too much for what little you get here.  Too many business people here are short sighted. They would rather take all they can from you today, instead of getting your return business over the years.

Any jobs that can keep families together, instead of the generational cycle of OFWs, has got to be an improvement.  

[Dave Hounddriver]

3 hours ago, Tukaram (Tim) said:

I don't know much about Korea and Japan pricing, but right now many of the resorts are charging too much for what little you get here. 

If you try going into any of the businesses (here in Philppines) aimed at the Korean market you may find, as I have, that the resorts, bars and some restaurants are priced twice as high as those aimed at the Caucasian market.  This always makes me think that the resorts I go to are pretty decently priced..

[Jake]

The origin topic questioned the progress of the Philippines 10 years from now.  First thing came to mind would be another question about the overall peace and order situation.  Corruption at all levels (street to the presidential palace) is well entrenched.  Whether that is the mindset of the Filipino or another Asian culture could be a subject for another healthy discussion.

I think the prime motivator of why even think about the Philippines is our relationship with wife or GF.  Which poses another question -- what would you do if that relationship goes south in 10 years of less?

And don't forget about our home country.  Many of us want to get out of dodge, no matter what.  Respectfully Jake