PH franchising industry 3rd in world for jobs created
07/12/2012
MANILA, Philippines - Franchisers in the Philippines urged the government to provide them tax incentives and subsidies so they can grow faster.
The Philippine Franchisers Association (PFA) noted that their counterparts abroad are able to compete because they are supported by their governments.
PFA President Elizabeth Pardo-Orbeta said, while franchisers in countries like Malaysia and Macau are heavily subsidized by their governments, the local franchise industry is not getting any type of support at all.
Orbeta said they floated the idea of giving tax incentives and subsidies to participation in international expos for franchisers to the government years back.
“We should be growing a lot faster if we are getting support from the government. We believe that franchising is still the best way for us to grow our economy,” she said at the media launch of the Franchise Asia Philippines (FAP) 2012 slated from July 25 to 29 at the SMX Convention Center.
The industry, on its own, managed to increase its revenues from $3.04 billion in 2000 to an estimated $11 billion in 2011. The Philippine franchising industry ranks 10th in the world in terms of revenues.
The local franchising industry now provides about 1.1 million jobs and ranks 3rd globally next to the United States and Japan.
The Philippines currently has about 1,300 franchise concepts, with 124,000 total franchisees, the 4th best in the world.
Charito Estrada, PFA executive director, said the industry is growing at an average pace of 30 percent annually, and this can be matched this year based on the pronouncements of the franchisers.
“You can hear our members, they are all bullish and are talking about expansion so I believe this will be another good year,” Estrada said.
Lin Deres, Goldilocks franchise relations head, said the Philippines should emulate other countries that offer good incentives to their franchisers, including subsidies to trips abroad when they participate in expos and develop new markets.
“We need incentives to grow, especially those who are just starting up,” Deres said.
Samie Lim, PFA co-founder, said there are at least 30 key countries that Filipino franchisers can go initially if they want to make their way into the different regions, including South Africa for the African continent.
“We can use them as gateways to their regions as much as they are using the Philippines as gateway to our region,” Lim said.
PFA President Elizabeth Pardo-Orbeta said, while franchisers in countries like Malaysia and Macau are heavily subsidized by their governments, the local franchise industry is not getting any type of support at all.
Orbeta said they floated the idea of giving tax incentives and subsidies to participation in international expos for franchisers to the government years back.
“We should be growing a lot faster if we are getting support from the government. We believe that franchising is still the best way for us to grow our economy,” she said at the media launch of the Franchise Asia Philippines (FAP) 2012 slated from July 25 to 29 at the SMX Convention Center.
The industry, on its own, managed to increase its revenues from $3.04 billion in 2000 to an estimated $11 billion in 2011. The Philippine franchising industry ranks 10th in the world in terms of revenues.
The local franchising industry now provides about 1.1 million jobs and ranks 3rd globally next to the United States and Japan.
The Philippines currently has about 1,300 franchise concepts, with 124,000 total franchisees, the 4th best in the world.
Charito Estrada, PFA executive director, said the industry is growing at an average pace of 30 percent annually, and this can be matched this year based on the pronouncements of the franchisers.
“You can hear our members, they are all bullish and are talking about expansion so I believe this will be another good year,” Estrada said.
Lin Deres, Goldilocks franchise relations head, said the Philippines should emulate other countries that offer good incentives to their franchisers, including subsidies to trips abroad when they participate in expos and develop new markets.
“We need incentives to grow, especially those who are just starting up,” Deres said.
Samie Lim, PFA co-founder, said there are at least 30 key countries that Filipino franchisers can go initially if they want to make their way into the different regions, including South Africa for the African continent.
“We can use them as gateways to their regions as much as they are using the Philippines as gateway to our region,” Lim said.
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