The Bangko Sentral ng Pilipinas (BSP) is seeing robust growth in the business process outsourcing (bpo) and tourism industries in 2013 and 2014.
In a briefing on Friday, Rosabel Guerrero, director for the BSP’s Department of Economic Statistics, said that the central bank projected a 15-percent growth in terms of BPO receipts in 2013 and 2014 from the industry’s 2012 total receipts of $11.6 billion.
“Projections were done in consultations with the industry. The BPO industry in the Philippines is concentrated in voice segment but we are seeing a gradual shift in other segments of the industry,” Zeno Abenoja, director of the BSP’s Economic Research Department, said.
Abenoja added that the BSP projection has taken into account the continued strong government support to the industry.
He noted government support in terms of taxes such as tax treatment on BPO’s capital equipment, training grants, and other tax incentives that could spur more investments into the industry and generate more revenues for the Philippines, including foreign exchange revenues.
“We also note that there is also continued demand from foreign companies for outsourcing services to reduce their operational cost in their own countries including the advanced economies,” the BSP official said.
Abenoja also mentioned that the continued demand is a major driver for the growth of the industry, noting an increasing market share on other segments of BPO like information technology segments, particularly in nonvoice services.
The Business Processing Association of the Philippines earlier said that it sees industry revenues reaching $16 billion in 2013 and generating about 926,000 jobs for full-time employees.
Meanwhile, the BSP said that the tourism receipts are expected to grow 20 percent in 2013 and 2014, from the total $4-billion revenue recorded in 2012.
Abenoja said that the central bank projection is consistent to the estimate of the Department of Tourism, which said that tourism receipts by the end of 2013 may reach P1.5 trillion with gross value added of about P748 billion.
“For the tourism industry, the key initiatives of national government like investing in promotions of Philippine tourism sites could result in maintaining the robust growth in our tourism receipts,” Abenoja said.
He added that the increased growth of the country’s major markets or major source of tourists such as the United States and Asia, particularly Japan, will also drive the growth of the industry.
“These markets, they can afford to [visit tourism places in the Philippines]. That means that the Philippines continue to be an attractive destination to such tourists, so [it can contribute]in tourism revenue in 2013 to 2014,” he said.
BPO and travel receipts are under the net services recipes on the current account, one of the components of the country’s balance of payments.