Sunday, January 8, 2012

THE PHILIPPINES IS MORE FUN, AND OTHER LIES


Is “It’s more fun in the Philippines” really worth over a billion pesos a year?!

At my house, we finally cut our subscription to the goddamn Inquirer, and it’s spared me some IQ points. However, it also makes me less responsive to current events, because I also don’t bother going to the news websites (kasi nga nakakabobo ang balita).

But the “It’s more fun in the Philippines” discussions have been rather inescapable. From what I read on Facebook, it’s a matter of, “Is it a good slogan for Philippine tourism or not?”

I’ve seen no one even bother to ask, “Do we really need a Tourism department to market tourist attractions?” Or “Did we really have to wait for a  new slogan at all?”


OPPORTUNITY COST OF CENTRAL PLANNING

But even if we do agree that it’s a nice-sounding slogan, and even if it boosts tourist visits, there’s something we are neglecting.

The Tourism department required money expropriated from citizens, money which would have otherwise been used for other satisfactions, such as medicine, food or additional savings. 

Is it sane to think that this system of expropriate-then-spend makes for a net gain as compared to the could-have-been of actual consumer wants?


THE ‘WHAT IF’ OF LESS GOVERNMENT MEDDLING

In the 2012 national budget, the Tourism department receives P1.63 billion [opens in another tab]. This is a little short of 1% of the entire General Appropriations Act, and P200 million more than last year.

Perhaps it would have been better to let taxpayers keep these insane amounts of money. I for one think that Philippine resorts would have been better off not paying whatever taxes they have to pay, and using such funds for promotion as they see fit instead.

And if resorts see it in their best interest to go with a general nationwide theme, e.g. they use a slogan such as
“Inflation is going to bite your ass. Come to the Philippines for third-world prices”
it’s because the feedback system of the market would confirm that it’s an effective one.


SLOGANS WILL ONLY GET YOU SO FAR

But as with any product, you have to back it up with actual quality. There are some world-class destinations, I’m sure, but some aspects of the Philippine experience, e.g. airports and traffic, would nonetheless be a buzzkill to those eager to see what the ‘fun’ is all about.

And this is where we realize that the truly best way to draw in investments from abroad ― and tourism is about revenue generation after all ― is to remove existent barriers. All else is superficial.

Its really quite simple: Abolish or drastically cut the numerous laws on taxation and regulation, remove all hindrances to movement and speech, and privatize all land. This will make foreigners go, “Wow, Philippines! We can do anything we want! Looks like fun!”


To get an idea of how tourism could flourish without a Tourism department, see my brief discussion in my book here [opens in another tab].
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1 comment:

belladonna said...

I think the slogan was good. It ignites foreign people to visit Philippines.