China and the Philippines ongoing disputes on territories in the South China Sea spells a cast on AirAsia Philippines development.
MANILLA- Budget carrier AirAsia’s Philippines, AirAsia Group most recent subsidiary, has decided to alter its plans for its first international connection following of an escalating dispute between China and the Philippines over an island located in the South China Sea. AirAsia Philippines’ chief executive Marianne Hontiveros said the airline had planned to launch a daily Macau service from July 1st, but with an on-going boycott from Chinese travellers to the destination, it sounds now to risky to start flying the destination. The CEO indicated to AFP news agency to have been “advised that travel agents in Macau had cancelled tour groups to the Philippines.” The official Xinhua News Agency said China Southern Airlines will cut its normal schedule of two flights daily between Guangzhou and Manila down to a single flight on certain days, from May 26 to June 30.
Chinese travel agencies announced effectively to have suspended tours to the Philippines, under government orders. China has explained to be worried about large scale anti-China protests on the streets of Manila as both nations feel at odds over the disputed island called Scarborough Shoal. Recent demonstrations in the Filipino capital showed some locals burning Chinese flags.
China outbound to the Philippines has been over the last years one of the most promising markets to watch out for the country. From 155,019 travellers in 2009, Chinese outbound market grew by 21% in 2010 to 187,446 to finally reach last year 243,137 travellers up by 29.7%. Filipino authorities try to take a stoic approach since by minimizing the potential impact of the boycott. They indicate that China represents less than 9% of all international arrivals. In the first three months of this year, Chinese total arrivals reached 96,455 visitors representing a share of 8.40% to total visitor volume. The market recorded during this period an impressive 77.53% growth vis-à-vis its volume of 54,332 for the same quarter of 2011. China was in 2011 the Philippines’ fourth largest incoming market. Experts now estimate that it will take at least three months before a possible recovery if things between both countries settle…
Table: Top tourist arrivals to the Philippines in 2011
(Source: Tourism Research & Statistics Division, Philippines Department of Tourism)
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
