The Philippines and Turkey are working to strengthen their trade and investment ties. Turkish Ambassador Niyazi Evren Akyol and Philippine Finance Secretary Ralph Recto recently discussed ways to enhance economic collaboration between the two nations. A key focus of their discussion was the potential expansion of flight routes, which is expected to boost tourism and facilitate greater economic cooperation.
Data from the Department of Tourism reveals a substantial 36 percent increase in Turkish tourists visiting the Philippines during the first seven months of 2024. This translates to 5,777 arrivals, a significant jump compared to the same period in 2023. However, despite this growth, Turkish tourists still represent a small percentage of overall foreign visitors to the Philippines, accounting for just 0.22 percent. This figure trails behind other nations like Saudi Arabia and Russia, which contributed 0.35 percent and 0.43 percent respectively.
The impact of the Russia-Ukraine conflict is playing a role in shifting travel patterns. A United Nations Tourism report suggests that Asian travelers are becoming more risk-averse and are avoiding these regions. While Turkey is primarily situated in West Asia, with a small portion in Southeast Europe, this change in travel behavior could potentially impact its tourism industry.
On the trade front, the Philippine Statistics Authority reported that the Philippines’ exports in June were mainly directed towards China, other Southeast Asian countries, and Russia. This demonstrates a broader trend of growing economic engagement within the region.
Secretary Recto of the Department of Finance has pledged to address challenges related to double taxation and value-added tax (VAT) refunds. Double taxation can occur when a country imposes taxes on both the dividend income of shareholders from foreign companies and the earnings of corporations operating internationally. It can also arise when different countries impose varying tax rates on income from the same source. Recto’s commitment to resolving these issues is seen as crucial to creating a more favorable investment climate between Turkey and the Philippines.
