In a joint statement, the Foreign Chambers said the air services agreement between the two countries will now allow Philippine carriers to offer a maximum of 19,000 seats per week to all the gateways of South Korea.

The Korean carriers are also entitled to the same number of seats to all Philippine gateways.

Thus, the Philippine tourism industry will definitely benefit from the maximum combined capacity of 38,000 seats per week by both Philippine and Korean carriers.

Indeed, this significant increase in capacity will boost the half a million Korean arrivals in 2006 and enable the country to compete with Singapore and Thailand, currently the top destinations of more than 7 million annual outbound Korean travelers.

As a result, the Foreign Chambers reiterated its call for the government to adopt a liberal aviation policy for Clark and DMIA.

"We again strongly recommend that the President sign the proposed EO 500-B for the rapid development of Clark and the Diosdado Macapagal International Airport (DMIA) as a premier airport in the Philippines and a major air transport and logistics hub in the Asia-Pacific region," the statement said.

Many appeals have been made in recent months urging the national government to open the skies at Clark to carriers willing to service routes flying tourists and others to Central Luzon, the statement said.

A liberal aviation policy that adjusts rapidly to allow numerous new carriers to service tourism demand has contributed greatly to the astounding success of the tourism industry on these Southeast countries following progressive aviation policies, the foreign businessmen said.

The Foreign Chambers noted that even Cambodia has seen its tourist arrivals rise rapidly to nearly two million visitors, mainly visitors to the ancient Angkor Wat temple complex, by pursuing a policy that liberally allows new carriers to service Siem- Reap- Angkor International Airport.

By 2008, ASEAN has agreed to allow unlimited 3rd and 4th freedoms between capitals. This would allow any carrier to fly passengers and goods in either direction between the capital cities of consenting countries.

However, the Philippine government has not said whether it will join this progressive agreement which will greatly benefit the economies of the participating countries.

The domestic aviation industry in the Philippines has grown significantly since competition was introduced more than a decade ago. Domestic carriers are experiencing strong growth in passenger and freight volume and revenues. They have placed significant orders for new aircraft.

"We believe they are positioned to compete not just in the Philippines but in the region and should begin to embrace rather than oppose competitions policies that are truly in the national interest of the Philippines," the statement added.

"Thus, the Foreign Chambers call on President Macapagal- Arroyo to issue the proposed EO 500B, which we are convinced- as already proven under EO 500 — will bring more tourists into the country, create large numbers of new jobs, lad to very significant levels of new investments and improve the overall competitiveness of the Philippines," the statement added.(BCM)