MANILA, Philippines--(BUSINESS WIRE)--International air transport is an essential economic catalyst for the Philippines, creating aviation and tourism related jobs, carrying inbound tourists, as well as enabling the export and import of goods and services.
Today, there are 35 flights a week (operated by 3 airlines) between Manila and Dubai, contributing to a healthy and growing bilateral trade relationship between both countries which stood at US$ 1.38 billion[i] in 2013.
“Emirates airline is proud to serve the Philippines and play a contributing role in its economy. Since we started services to Manila in 1990, Emirates has carried over 6.5 million OFWs, international tourists and business travellers, as well as over 150,000 tonnes of cargo on the route,” said Barry Brown, Emirates’ Divisional Senior Vice President, Commercial Operations East.
“We currently operate 3 daily flights between Dubai and Manila, which not only serves the growing demand for travel between both countries, but also connects the Philippines with over 800 flights a week to other key cities in our global network – cities which are currently not served by airlines of the Philippines. Our flights and network enable travellers from the GCC, Middle East, Africa, Europe, and the Americas, to easily reach the Philippines with just one convenient stop in Dubai.
“In recent years, other airlines have also started services between the Philippines and the UAE, and we see this as a positive move which ultimately benefits consumer choice, and also illustrates the healthy demand and potential for traffic growth,” he added.
A growing pie
The already significant demand for air travel services between Dubai and the Philippines is expected to grow further in tandem with the many developments in the UAE. This includes the Dubai Expo 2020 which is expected to generate 275,000 jobs and offer immense opportunities for Filipino talent in the hospitality, engineering, IT and medical services sectors.
Remittances from the Filipino residents in the UAE provide important financial support to their families back home as well as to the broader economy. In 2013, remittances by Filipinos in the UAE reached US$1.26 billion, an increase of 31.45% in just a year, compared to US$960 million in 2012.
There are currently about 850,000 OFWs based in Dubai, and this is expected to rise to over 1 million by 2020 with the rapid pace of development in Dubai.
It is estimated that some 910,000 airline seats per year are needed to serve just the consumer demand between Manila and Dubai, equivalent to 41 flights a week on a large aircraft like the Boeing 777. This does not take into account travel demand from entrepreneurs and corporates, or international travellers from other global cities who connect in Dubai onwards to the Philippines, which, if included, will increase the projected capacity required on the route to 50 flights a week.
Marilu Q. Ngo, President of Philippines IATA Agents Travel Association (PIATA) said: “Emirates is a world-class airline that has always supported the Philippines travel industry. They provide passengers with a good quality product at competitive prices with lower fuel surcharges. This is why their flights are used often for corporate/leisure travel, meetings and incentives, and seacrew last minute flight options. Removing one of Emirates’ 3 daily flights ultimately means reduced travel options for Filipinos, not only to Dubai and Middle Eastern destinations, but also to Africa, Europe and Latin America during the peak season month of travel. Thus, creating a high-demand, limited supply situation that could impact ticket prices as well.”
Trade and commerce
International air links are essential for business and trade – not only for exports, but also for entrepreneurs and companies seeking to do business in the Philippines. For many businesses, Emirates offers the best and quickest routings for our goods, and our business travel requirements.
Emirates’ 3rd daily flight from Manila provides Filipino businesses with excellent connections to 15 key cities in the Gulf and Middle East, and from Dubai, the 3rd daily flight connects with many of the airline’s 34 European and 22 African cities, bringing in valuable inbound traffic to the Philippines.
The UAE is the Philippines’ 3rd largest trading partner in the Middle East and this is a relationship that is growing. Agricultural products, manufactured textiles and packing wares are amongst the top Philippine exports to the UAE. Many of these exports, especially perishable agricultural products, require good air transport links to reach international markets in a timely fashion.
Emirates’ commitment and contribution
Emirates has operated flights between Dubai and Manila for the last 24 years, and remains firmly committed to the Philippine market. In 2013, Emirates invested almost US$100 million through direct expenditures in the Philippines. Its three daily flights from Manila also supported over 4,300 jobs in the Philippines last year [ii] through direct employment as well as via the supply chain of catering, ground handling and other associated air travel services.
The Emirates Group alone employs over 4,300 Filipinos across its business, the majority of whom are based in Dubai, and benefit from the airline’s non-stop flights home to the Philippines.
Emirates is not seeking any additional flights to Manila over and above its current operations. The airline’s third daily flight on the Dubai-Manila route was implemented in January 2013 and has since become an integral part of the service which is extremely popular with travellers.
[i] Embassy of the Philippines, Abu Dhabi, United Arab Emirates. http://abudhabipe.dfa.gov.ph/index.php/site-map/2014-08-28-01-27-16
[ii] ACI formula: Every 1 million passengers creates about 1,000 direct jobs and additionally 4,000 indirect and induced jobs through stimulation of greater trade, travel and tourism.
Source: ME NewsWire
