The Philippines is recognized as a prominent shipping nation, with its seafarers comprising over 25% of the global maritime workforce. Despite its significance, the economic impact of the manning industry has often been overlooked. A recent study sheds light on the industry’s contributions, urging authorities to bolster global confidence in Filipino seafarers amidst challenges.
The study reveals that the seafaring industry is a crucial driver of the Philippine economy, projected to generate $17 billion in economic activity in 2024. It supports nearly 400,000 jobs directly and accounts for about 4% of the country’s GDP, with shipowners investing approximately $923.3 million within its borders. Moreover, seafarers contribute significantly to household incomes, adding $2.5 billion in earnings.
Titled “The Overseas Seafarers’ Industry Profile, Structure, and Impact on the Philippine Economy,” the research, conducted by the Center for Research and Communication (CRC) at the University of Asia and the Pacific and the Association of Licensed Manning Agencies (ALMA Maritime Group), highlights the vital role of remittances. In 2024, seafarer remittances are expected to total around $5.6 billion, stimulating local economies by boosting consumption, business growth, and tax revenues. As CRC President Winston Padojinog notes, the economic impact of seafarers extends beyond direct contributions; for every peso sent home, three pesos ripple through the economy.
The study emphasizes the industry’s diverse economic influences, supporting a range of onshore jobs, including crewing, logistics, training, insurance, and maritime services. It also stresses the need for the Philippines to maintain its role as a leading maritime labor provider to ensure sustainability and confidence among global shipowners.
Recent threats from the European Commission regarding potential bans on Filipino seafarers due to concerns about substandard maritime training and compliance with international safety standards underscore the vulnerabilities within the industry. Additionally, strict immigration policies from the U.S. have led to the arrest and deportation of numerous Filipino seafarers, prompting protests from the Philippine Embassy in Washington, D.C.
The CRC report stresses that the economic fate of the seafaring industry is intricately linked to the confidence and trust that global shipowners place in Filipino workers. Loss of this trust, driven by policy instability, skill gaps, or increased international competition, could have swift and detrimental effects. Padojinog emphasized that effective policy ought to prioritize the protection of Filipino jobs and families rather than merely serving corporate interests.
In conclusion, the study serves as a vital call to action for various stakeholders to support the sustainability of the Filipino seafaring industry, ensuring that its contributions continue to bolster both the national economy and the livelihoods of countless families.
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