Mabuhay from the Philippines!

… actually I’m back!  Hehe.  I made a post from an airport in Cebu but I think the bandwidth was so small there that it didn’t finish loading.  Glad to have technology back.

 My trip to the Philippines is threefold-  business, pleasure, and charity which is all the same to me (if you haven’t noticed, there has been a few typhoons and a series of floods in Manila and in the Ilocos region (North).  Most of the city is cleaned up and functioning, but the north needs some work.  It was actually a coincidence since I go up there a lot to volunteer).

It’s great travelling overseas, I especially like the Philippines because of their hospitable culture, friendly service, and they are industrious and intuitive in their work.  I really see the potential that this country has, so much so that I’m putting my money on it.  What, you only think I sit at a desk clicking buttons?  I have a business partner in Cebu and Manila, two cities that are exploding with growth… kind of like Shanghai but with more western influence, and thus more transparency.  Although I must admit, the politics can get tricky there.  If you don’t know people, you can’t get anything done from a business perspective.  One of the biggest ways that these two cities have an influence on the global economy is that they have very cheap labor.  Therefore, the outsourcing industry of the country is booming.  Unfortunately, I haven’t found a direct source to invest in that trend, but maybe we’ll get an ETF or fund to let us tap in there indirectly.  If you haven’t already noticed, the global economic downturn has adjusted everyone’s thinking on spending money, not just from a personal consumer level, but also at a corporate level.  Why do you think stocks like Ross Stores, Inc. [[ROST]] and Dollar Tree, Inc. [[DLTR]] or Green Mountain Coffee Roasters Inc. [[GMCR]] are doing so well?  They offer alternatives to consumers at cheaper prices.  It’s a little more difficult for Corporate America though… they can’t easily go to another American company that is struggling themselves, thus the easiest way is to outsource from other countries.  This trend has benefited countries like India and China, and quietly the Philippines (but you heard it here first!).  The Philippines has responded to this demand, and thus have made learning English a requirement in high school and classes at the University are taught in English.  They really are lining up everything for growth.

Another way that the Philippines has made a major jump in is their tourism industry.  It still has a lot of potential, however there are still some fears that need to be alleviated, but they are working hard in their transportation system to attract foreign investors.  Nevertheless, speaking from first hand experience, there are beautiful places on the Philippines that make for an incredible vacation to relax, explore and enjoy.  There are beach areas that the country is really pushing for- Palawan and Boracay.  Absolutely stunning, and at 1/4 the price of what you would pay for here in Hawaii.  Only those who are adventerous enough to fly there are rewarded with its natural beauty.  So anyway, that’s one major reason why I was stuck in the Philippines, for investment purposes.  To me, I see the Philippine’s tourism hotel industry as an IPO.  It’s new, has potential, has its risks, but can be very rewarding to those who venture to give it a try.  Right now I have reserved a hotel condo in Boracay.  The hotel hasn’t been built yet, but is scheduled to be completed in winter of 2010.  Therefore, I don’t have to rush to pay it all off.  I got a great deal, 0% 2 years, 25% down within that period… something ridiculous like that.  Here’s a picture of the Shangri-La hotel on Boracay…

 

The only thing though is that they want you to pay the principle off much sooner than buying one here in the States.  Now I have to wait for another year to sign more papers at inspection, and decide if I want to push forward with the next down.  I just made sure I got one foot in the door before it shuts.  You should try in-house or bank financing in the Philippines… a lot of paperwork, but they seem eager for your business.  Plus, when you have a bank account overseas it makes you feel real.  Haha.  Anyway, once the hotel is complete, the revenues of the entire hotel are shared to the owners of each room.  I just let them manage everything, and use the revenue to pay off the monthly dues then interest.  That’s the plan.  Gotta put our money to work, no?  I’m not here to solicit foreign investment in real property, it’s not like I can put a Stop Loss on it and kick back, but it’s not a trade for me, it’s an investment, plus when I get older, I would like a place to visit just like our good friend on his Italian Villa.   Hey, maybe in a few years if you’re brave enough I’ll let you stay there a few days?  😉

Anyway, I leave you with pictures of a resort I stayed at while doing business in Cebu, and some pictures I took on the island of Bohol.  

http://www.screencast.com/t/KKbLpuF4

 http://www.screencast.com/t/mFXci2aH52W

 http://www.screencast.com/t/vrHcoOdAa

http://www.screencast.com/t/Tt9nm6fbvT

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