This week, Alfred Lay of Leechiu Property Consultants addressed the impact of the Philippine government’s recent ban on Philippine Offshore Gaming Operators (POGOs) on tourism, particularly concerning Chinese visitors. During the Hotel Sales and Marketing Association (HSMA) general membership meeting in Manila, Lay suggested that the government could use this opportunity to enhance tourism from China by easing visa restrictions.
The POGO Ban and Its Implications
President Ferdinand Marcos Jr. announced a sweeping ban on all POGO operations in the Philippines during his recent State of the Nation Address. Under this new policy, no new Internet Gaming Licenses (IGLs)—formerly known as POGOs—will be issued, and existing licenses must be canceled by the end of the year. PAGCOR Chairman and CEO Alejandro Tengco has confirmed that this ban will apply universally to IGLs and POGOs, with all 43 existing licensees required to wind down operations.
Leading industry lawyer and consultant Vladaimir F. Bedural has also noted that industry suppliers must prove their services are directed towards non-POGO enterprises to remain operational in the country.
Alfred Lay’s Proposal for Easing Visa Restrictions
In light of the POGO ban, Alfred Lay suggested that the Philippine government should consider relaxing visa restrictions for Chinese tourists. Lay argued that the POGO ban presents a strategic opportunity to boost genuine tourism from China, which has not yet recovered to pre-pandemic levels, unlike other markets.
According to Lay, the current visa restrictions and stricter currency controls are significant barriers for Chinese tourists. He believes that easing these restrictions could improve travel ease and attract more visitors from China. Lay’s argument is based on the premise that one of the reasons for stringent visa rules is to prevent tourists from using their visas to engage in POGO-related activities.
The Current State of Chinese Tourism
China has historically been a significant source market for Philippine tourism. However, in recent years, the flow of Chinese tourists to the Philippines has not returned to pre-pandemic levels. Lay points out that while other markets have shown signs of recovery, China’s tourism numbers remain subdued. The strict visa regulations and currency controls have contributed to this slow recovery.
Southeast Asian Neighbors
Lay suggests that easing visa restrictions would align the Philippines with its Southeast Asian neighbors, many of whom have more relaxed visa policies for Chinese visitors. Countries such as Thailand, Malaysia, and Singapore have seen a recovery in Chinese tourist numbers partly due to their more accommodating visa policies. By adopting similar measures, the Philippines could potentially attract a larger share of Chinese tourists.
Broader Tourism Strategy
Lay emphasizes that while targeting new markets like the Middle East, Hong Kong, Singapore, Vietnam, Malaysia, and India is important, China should remain a significant focus for long-term tourism growth. He argues that leveraging existing connections and relationships with major source markets is more effective than trying to build new ones from scratch.
Government and Diplomatic Reactions
The Chinese Embassy in the Philippines has expressed support for the POGO ban, stating that it aligns with the best interests of both countries. This diplomatic approval could potentially ease tensions and foster a more positive environment for tourism and other bilateral exchanges.
The recent POGO ban presents a unique opportunity for the Philippine government to reassess its tourism strategy, particularly concerning Chinese visitors. By easing visa restrictions and aligning with the practices of neighboring countries, the Philippines could enhance its appeal to a key tourism market that has not yet fully recovered. As the government moves forward with implementing the POGO ban, careful consideration of these factors could play a crucial role in revitalizing the country’s tourism sector.