NEDA: Banning POGOs could benefit the Philippines’ tourism sector

According to a member of the National Economic and Development Authority, fraudulent activities linked to POGOS damage the country’s reputation.

The Philippines.- Sarah Lynne Ducanes, assistant secretary for the Policy and Planning Group at the National Economic and Development Authority (NEDA) has added her voice to the Senate debate about whether to ban POGOs in the Philippines. She has told a Senate committee that a ban could eventually benefit the country’s tourism sector.

According to the Philippine Inquirer newspaper, Ducanes said POGOs were affecting the Philippines’ reputation among potential investors.

She said: “Not because of POGO per see, but the fraudulent activities [associated with it] can put us in that [black] list or has put us in that list. That can affect this entire economic environment that we’re trying to create to attract investments both local and foreign.”

According to preliminary NEDA estimates, POGOs generate a net cost to the country’s tourism industry, particularly Chinese tourism. Ducanes acknowledged that banning POGOs would result in some losses, such as office rental income. But she said a rebound in tourism could eventually offset the losses.

However, House Representative Joey Salceda said NEDA’s assessment was highly speculative. He said the drop in Chinese tourists was not because of offshore gaming companies but because of China’s strict policies on outbound tourists due to the Covid-19 pandemic.

According to Salceda, the number of Chinese tourists in Cambodia and the United Arab Emirates fell by about the same percentage as the number in the Philippines. He said: “It’s very clear here that there is no difference if you have a POGO or not. China really has not allowed tourists to get out because of their zero-Covid policy.”

China’s black list

The president of the Philippine Senate, Juan Miguel Zubiri, has claimed that China has placed the Philippines on its tourist destination blacklist due to concerns about the offshore gambling industry. Although the Chinese Embassy in Manila denies it, Zubiri said that he was informed by Chinese ambassador Huang Xilian during a session studying the potential impact of banning POGOs.

In 2020, the Chinese government established a blacklist of destinations to which cross-border transfers are controlled. The blacklist is compiled by multiple departments, including the Ministry of Culture and Tourism, the Ministry of Foreign Affairs and the Ministry of Public Security. In March 2021, China’s revised Criminal Law made it illegal to assist cross-border gambling.

If the Philippines has been included on the list, it could significantly affect tourism as China is among the main sources of tourist arrivals, although the number has dropped massively since the start of the Covid-19 pandemic.