More repeat visitors eyed to boost retirement market
The Philippine Retirement Authority (PRA) is targeting to attract over 5,000 additional foreign retirees this year.
The target for Cebu is 10 percent of this number, or about 500 more retirees.
As of June 30, PRA chief executive officer and general manager Valentino Cabansag said close to 40,000 retirees have been issued SRRV, or the Special Residents Retiree’s Visa.
For 2015, PRA targets an additional 5,583 SRRV holders nationwide.
Cabansag said PRA is looking to promote the Philippines as a repeat market for tourism to boost the retirement market.
“The repeat and long-stay market is a step into the right direction to increase the number of retirees staying in the Philippines. We, in the PRA, believe that in order to increase our market share, we also have to increase the repeat market which Cebu enjoys,” Cabansag said in an interview during the launching of Syntech Properties’ Amonsagana Retirement Village in Balamban town.
He said it is easier for a person to retire in a place he or she has traveled to and lived in. If people keep coming back to a certain place, he said some of them will eventually retire there as well.
Factors that affect the choice of location for retirees include weather, affordability and the local people.
Retirees from Japan, Korea and China—countries that experience cold weather in the winter season—typically choose the Philippines for its tropical weather. Other retirees also prefer Third World countries like the Philippines as the cost of living is lower than in their homeland.
As for the people, PRA Cebu officer-in-charge Elma Corbeta said the Philippines definitely has an “edge” over other countries.
“Here, they [retirees] come to the Philippines and meet people they don´t even know and the locals smile. That’s already a big thing for them,” she said.
Cabansag added that the people in the Philippines typically love to entertain and are fun-loving and warm, which appeals to many retirees.
VISA PERKS
There have been 1,802 SRRV holders in Central Visayas region since the opening of the Cebu satellite office some 8 years ago.
Majority of PRA-registered retirees come from Asian countries including China, Korea, Hong Kong, Taiwan and Japan.
Around 80 percent of SRRV holders are based in Luzon, particularly in cities like Baguio, Manila and Batangas, Corbeta said.
“Majority live in Manila because it has a lot of condominiums,” she said.
The retiree’s visa offers retirees an array of perks, including permanent residency in the country and multiple entry. Contrary to popular belief, retirees do not have to be retired, Corbeta said. They just need to be 35 years old and up, and meet the deposit requirement needed for their specific visa type, which can be from $1,500 to $50,000.
Corbeta said the Philippines is “not that behind” in terms of the number of retirees. SRRV applications reached an all-time high last year, but the leading countries for retirees remain to be Malaysia, Singapore and Indonesia, she added.
With the expansion of the Mactan Cebu International Airport, she hoped that the number of retirees considering the Philippines will increase.
The Philippines also has to address the issue of insurance portability, especially for the Japanese.
“The Japanese cannot use their insurance here. They have to take the money out and have it converted. Other places offer portability of insurance, which is more convenient for retirees,” Corbeta said.
Cebu has accredited retirement facilities, like Mactan Newtown in Lapu-Lapu City and CityLights Gardens in Nivel Hills.
Several retirement projects have applied for accreditation, including the Amonsagana and Solinea at the Cebu Business Park.