Tourism seen to help avert deficit in balance of payments

MANILA, Philippines - Dollars coming in from tourists may also help in offsetting the country’s widening payments deficit and support the balance of payments (BoP) position, a central bank official said. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said the country may still be able to achieve a BoP surplus this year as this will be supported by strong remittance inflows and hefty tourism receipts. "Tourism is providing some cushion to the increasing trade deficit on account of high oil prices," Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo told reporters last week. Recent data from the Department of Tourism showed that tourist arrivals in the first five months of the year totaled 1.37 million, 7.4% higher than the 1.28 million recorded in the same period last year. Tourist spending reached a total of $4.88 billion in end-2007, 40.99% higher than the previous year. A tourist is estimated to spend about $83 per day in the country. Mr. Guinigundo said the weakness of the peso against the dollar of late will help encourage tourists to spend more. The peso has depreciated by about 9% since the start of the year — a reversal from the 18% appreciation last year. - BusinessWorld