Tourist arrivals in the country rose 18.2 percent in the first month of the year despite increased tensions ahead of the May 10 elections, the government said yesterday. According to data from the Department of Tourism (DoT), a total of 207,755 people visited the Philippines in January, up from 175,728 in the same month last year. More than half of the visitors came from either China, Hong Kong, Japan, South Korea or Taiwan, while 23.1 percent came from The United States, Canada or Mexico. Last year, tourist arrivals slipped by 1.3 per cent as political turmoil and natural calamities struck the country. The decline was attributed to the Severe Acute Respiratory Syndrome outbreak that hit Southeast Asia in the first part of last year and a failed mutiny in Manila last July. The DoT, however, predicted that tourist arrivals would pick up this year. Some travel agents have expressed concern that political instability and violence ahead of the elections on May 10 could prompt visitors to postpone their trip to the country.

SSS wants BDO to pay in cash

Banco de Oro Universal Bank (BDO) said yesterday the Social Security System (SSS) is now considering seeking an "all-cash" payment for its Equitable PCI Bank shares that BDO has agreed to purchase. Under their original agreement, BDO was to pay SSS, the staterun pension fund for private sector workers, P43.50 for each Equitable PCI share, or a 30 percent premium over the stock’s end-2003 closing price. BDO was supposed to make a cash down-payment of P1 billion and secure the balance of P13 billion through a 6.5-year zero-coupon non-amortizing promissory note. The transaction involves some P187.85 million Equitable PCI shares. "We understand the SSS is presently considering possible modifications in the transaction, including an all-cash payment. Consequently, the Banco de Oro Group may undertake a capital raising exercise in relation to this requirement," BDO told the stock exchange. BDO, however, said it has no firm capital-raising plans yet.

Alaska to make Hershey milk

Alaska Milk Corporation has been granted by Hershey Foods Corporation the exclusive license to manufacture and sell Hershey’s milk drink products in the Philippines. In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Alaska corporate secretary Santiago Polido said the two firms formally signed a standard license agreement last February 19. Alaska reported a 14 percent improvement in profits for 2003 to P499 million from the P439 million registered in the previous year. The firm said this is due to strong sales revenues from toll operations and an increase in interest income. Strong sales volumes in liquid canned, powdered and UHT milk pushed revenues for the year to P4.34 billion—nine percent higher than revenues in 2002. Cost of sales and operating expenses also rose nine percent to P3.73 billion from P3.42 billion.

Maynilad names new president

Maynilad Water Inc. has appointed former public works and highways secretary Fiorello Estuar as its new president, replacing Rafael Alunan III, parent Benpres Holdings Corp. announced. Prior to his appointment, Estuar was president of First Balfour Beatty, the construction arm of the Lopez Group. Alunan, a former interior and local government secretary, returns to his previous assignment as consultant to the Lopez Group. He also retains the presidency of First Philippine Infrastructure Development Corporation and directorships in infrastructure-related businesses. Benpres chairman Oscar Lopez said the Lopez Group would like to maximize the benefit of Alunan’s experience, particularly in political and security concerns.

Metro Alliance shares trading lifted

The Philippine Stock Exchange said it will lift on Monday the trading suspension on Metro Alliance Holdings and Equities Corp. The company earlier said it has designated Polymax Worldwide Ltd, which was incorporated in the British Virgin Islands last August — as the acquisition vehicle for the purchase of the debt papers of Bataan Polyethylene Corp. This will pave the way for the ownership and operation of the petrochemical midstream facility by Polymax, full management control of which is with Metro Alliance. Metro Alliance is to organize a consortium of local and foreign investors that will eventually operate the plant.