The chief of the Davao City Investment Promotion Center (IPC) said the economic growth of this city, the premier port in Mindanao, should not outpace its basic infrastructure that has become constricted and outdated.
Roberto Teo, chief of the IPC here, said that the city has experienced the highest growth this year in a decade that is about to close, reaching P5.1 billion.
Eighty percent of this growth has been powered by consistent investments in real estate, mostly in housing projects targeting the middle and high-end market, and in tourism, which would continue to carry the growth in the next decade, Teo said.
The growth curve continues its upward path despite the global financial crisis and the intermittent fighting in the central and southwestern part of Mindanao that dragged the city down in terms of the repercussion in foreign travel advisories and sudden disinterest in business and travel to any part of the island.
“So far, the growth can still be manageable, but while we strive for more and bigger investments in the city, we also don’t want to have a growth faster than we can absorb,” he said. “We don’t want traffic congestion and pollution, and we don’t want flooding and garbage problems.”
He said the drainage system in the city is already more than 50 years old “and we are spending a lot, but only for remedial measures to contain the flood. We need much more budget to put up a modern system.”
He said the road networks and garbage remained manageable although the traffic gridlocks could occur occasionally. On garbage management, the city has prided itself with the reputation of being one of the cleanest cities in the country.
Teo warned, however, that the growth could still shot upwards if the city would be successful in its repeated promotion of being the safest place in Mindanao. “In fact, many people even from Metro Manila and Luzon have found the city ideal for comfortable living, with affordable food and rental rates.”
In tourism, the Department of Tourism has logged 700,000 visitors last year, up from only 100,000 in 2002. “We are one of the preferred destinations for Lakbay Aral, receiving at least one visit per week, aside from being the favorite venue of national conventions and conferences.”
“These growth indicators could have been much higher if we can persuade and assure visitors and investors that Davao City is far from the areas of conflict and we are the safest place for people to reside and invest,” he said.
Teo said that residents should develop more entrepreneurial efforts “to increase economic activity.”
He said that this city of 1.3 million residents is estimated to have an economy worth P175 billion, “based only in the business name registrations that we got.”
“We have a budget of another P3 billion, the amount of money that the local government is pouring into the local economy every year. That’s the money in circulation every year,” he said. “If many of us here would try to capitalize on that money in circulation, we would see a lot more business activities and purchasing power of local consumers.”
“From the business point of view, that is a lot to go around,” he said.
With the national elections next year, he said he would not expect new investments coming election funds, “but more consumer spending instead. Politicians are giving away money and people would only be too happy to spend them, too.”
“We would expect sales to increase among those engaged in the printing business,” he said.
Source: Manuel T. Cayon, BusinessMirror.com.ph
I agree with your post. Infrastructure is very important for Davao to be more competitive. :)
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