Opportunity in reconstruction, Cebu business leaders say

Cebu business leaders described 2014 as a year of “massive reconstruction” and more challenges as the province and Central Visayas continue to recover from the devastation caused by the Oct. 15 earthquake and supertyphoon Yolanda last Nov. 8.

Lito Maderazo, Cebu Chamber of Commerce and Industry president, said agriculture and tourism felt the full brunt of the two calamities that struck the province and region in the last quarter of 2013.

“We’ll feel the aftermath of the calamity this year especially the agriculture sector, the fishery, livestock, the mango plantations, coconut and the important crops that were destroyed,” Maderazo said.

Recent figures from the Department of Agriculture showed that agricultural damages in the Visayas were pegged at P31.13 billion with 441,517 hectares of coconut trees wiped out to the tune of P17.8 billion.

About 199,199 metric tons of rice grains valued at P3.23 billion were lost while 14,775 hectares of banana plantations were badly hit resulting to a loss of P1.49 billion.

The livestock sector sustained P2.24 billion while damage to fisheries was pegged at P1.49 billion. About 203,870 families who earn a living through agriculture were affected.

Maderazo said businesses dependent on these products will have to source elsewhere and may incur additional overhead costs.

Exporters who ship processed banana, mango and coconut products will be hard hit, Philexport Cebu executive director Fred Escalona said. He said demand for coconut water was steadily growing since last year.

“We just hope we can find other suppliers to sustain the momentum,” said Escalona.

Concerning tourism, Cebu Business Club president Gordon Alan Joseph said it will take time before the country’s visitors like the Koreans and Japanese start coming in droves again.

Philip N. Tan, 0Mandaue Chamber of Commerce and Industry president, said Cebu’s strategic location still gives it an advantage over other provinces. He said Cebu had become a hub for relief and rebuilding operations this year.

“Retail, construction is very likely to grow this year with all the massive reconstructions that will happen. People are rebuilding their homes and on top of that, many volunteer groups are also doing their own rebuilding initiatives,” Tan said.

Tan said while they expect the country’s economy to grow at 6.5 percent this year, it won’t reflect the lingering effects caused by the twin calamities last year.

“(The effects) are not only on the infrastructure and properties but to the survivors. It will take at least six months for them to recover and get back with their lives,” Joseph said.

Joseph said that they expect the buying patterns to go back to normal levels by second quarter this year with logistics in most areas affected already resuming to normal operations.

All three business leaders said they hope the two disasters will present an opportunity for people to build in the right way and follow proper zoning to better mitigate the effects of climate change.

“Phuket, Thailand was hit with a tsunami years back and look at them now. They are enjoying huge traffic. How did they do that? That is what the tourism stakeholders should find out,” Maderazo said.

Tan said all stakeholders should collaborate with the government to expedite the reconstruction and recovery efforts.

“Business can only grow as fast as it can if the government’s enabling environment are properly planned and implemented, and should be in place faster than what the growth of business will allow,” Tan said.