President Ferdinand Marcos Jr.'s proposal to improve the country's connectivity by opening more regional airports to international travelers has sparked interest across sectors. The initiative aims to decentralize tourism, reducing the heavy reliance on Ninoy Aquino International Airport (NAIA) in Manila. With plans to involve the private sector in the operations and maintenance of ten regional airports—through Public-Private Partnerships (PPPs)—the government envisions a more efficient aviation infrastructure that could drive regional economic growth. While this ambitious plan offers significant opportunities, it also presents challenges that need careful consideration.

The Case for Private Sector Participation

Private sector involvement offers a practical solution to the long-standing problems of regional airports—outdated facilities, poor service, and limited capacity for international flights. PPPs bring in fresh capital, expertise, and innovation that the government often struggles to provide.

Consider Mactan-Cebu International Airport as an example. After the successful PPP project, it was transformed into a world-class facility, establishing Cebu as a major gateway for international travelers and driving growth in tourism and local businesses. Replicating this model in airports like those in Davao, Iloilo, and Siargao could unlock similar opportunities for other regions, fostering economic development and regional connectivity.

Another key advantage of PPPs is relieving the government’s financial burden. With development and maintenance costs handled by private firms, public funds can be redirected to critical areas like healthcare or education. Beyond that, efficient airports have a ripple effect on local economies, boosting tourism, creating jobs, and supporting industries like hotels, restaurants, and transport services. By improving connectivity, these airports can breathe new life into communities that have long been left behind.

Decentralizing Tourism and Easing Congestion

The Marcos administration’s plan also aims to decentralize tourism, offering a solution to NAIA’s chronic overcapacity issues. With the airport handling far more passengers than it was designed for, delays, congestion, and inefficiencies have become the norm. Opening direct international access through regional airports would ease NAIA’s burden and significantly improve the travel experience.

Decentralized tourism would also encourage international travelers to explore less-visited destinations. Surfers and nature enthusiasts could easily reach Siargao, while Bacolod-Silay and Puerto Princesa could draw culture and eco-tourism lovers. This not only diversifies the country’s tourism offerings but also spreads economic growth more equitably across the archipelago.

Challenges and Risks in Private Sector Management

Despite its advantages, private sector participation comes with challenges. A key concern is the risk of the government relinquishing its financial responsibility for the aviation sector. Critics warn that excessive reliance on private entities could lead to the government neglecting its duty to ensure accessible and equitable transport services. Private companies, driven by profitability, might impose higher passenger fees or overlook less profitable routes that connect remote areas.

Another issue is the risk of monopolistic practices. Without proper regulation, private operators could dominate the regional aviation market, limiting competition and potentially compromising service quality. The government must ensure that PPP agreements include provisions to protect the public interest, such as reasonable pricing and service standards.

To mitigate these risks, a collaborative approach between the government and the private sector is essential. The government must remain an active participant in the aviation industry, providing oversight and ensuring that private entities comply with their agreements. Transparency in the bidding process and strict adherence to contractual obligations are crucial for maintaining accountability.

The government should fund infrastructure in underserved areas to ensure that less profitable regions benefit from improved connectivity. Incentives, such as tax breaks or subsidies, can encourage private operators to serve remote destinations. Additionally, airport development must strike a balance between social and environmental concerns by minimizing displacement, protecting ecosystems, and ensuring fair compensation for affected communities.

A Path to Inclusive Growth

The Marcos administration’s plan to involve the private sector in regional airport development presents its challenges, but the potential benefits are significant if managed effectively. Improved airport facilities and enhanced connectivity can boost regional growth, expand tourism beyond Metro Manila, and alleviate congestion at NAIA. With fair, transparent, and socially responsible partnerships, this initiative could benefit both investors and local communities.

Success, however, depends on striking the right balance. The government must continue to protect public welfare, while private companies must deliver services that are efficient, fair, and sustainable. With proper safeguards in place, this plan could help create a more connected and inclusive Philippines.