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EDGE Serving a seamless society DAVAO THE ARAW NG DAVAO SPECIAL SUPPLEMENT IT’S DAVAO’S TIME

Edge Davao 7 Issue 256 - Araw ng Davao Special Supplement

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Page 1: Edge Davao 7 Issue 256 - Araw ng Davao Special Supplement

EDGE Serving a seamless society

DAVAOTHE ARAW NG DAVAOSPECIAL SUPPLEMENT

IT’S DAVAO’S TIME

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DAVAO ARAW NG DAVAOSPECIAL

Peace and order spurstourism development

By CHARLES RAYMOND A. MAXEY

ONE only needs to look around to know how far Davao City has

attained when it comes to tourism growth. Many ac-commodation facilities are sprouting, shopping malls are mushrooming and din-ing places are everywhere.

Visitors, too, come and go--do-mestic and foreign tourists alike.

To City Tourism Operations Of-fice (CTOO) chief Lisette Marques, the growth of Davao City tourism industry through the years can only be attributed to one factor—the city’s stable peace and order situation.

Marques even pointed to May-or Rodrigo R. Dutere, whose iron hand against criminality is known all over the Philippines, as the real tourism officer of the city.

“We all know who the real tourism officer is,” Marques told

Edge Davao.Marquez recalled that during

a BIMP-Eaga gathering in Davao City last October, Duterte assured guests of their safety in the city as peace and order is also geared to-wards tourism growth.

She said visitors are coming over because of the city’s stable peace and order situation and that businessmen are pouring in their investments into Davao.

Marques didn’t gave details as to the exact number of tourist arrivals in the city since not all accommodation establishments have provided her office with a re-port, but said tourist arrival have grown to 32 percent in 2014 from the 27 percent growth recorded in 2013.

Based on the Department of Tourism (DOT) 11 record, tour-ist arrivals in the Davao Region reached 2.3 million in 2014, mark-

ing a 25 percent increase from the 1.8 million visitors recorded in 2013.

According to the Davao City Investment Promotion Center (DCIPC), the city’s tourism indus-try is now undergoing an unprece-dented growth.

DCIPC said this is evident by the recent entry of new hotel brands, with about five more busi-ness hotels undergoing construc-tion.

The rise of new hotels has brought the current number of rooms in the city to more than 7,000.

“The present positioning of the city as an urban destination with eco-adventure and eco-tour-ism offerings make Davao City a unique place of interest,” DCIPC said in a report.

Two airline companies are

The present position-ing of the city as an urban destination with eco-ad-venture and eco-tourism offerings make Davao City a unique place of in-terest.

FPEACE AND ORDER, 11

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The IT-BPM Industry in the Philippines is some-thing we should be proud of. Its performance has marked us, as the No. 1 in the Voice sector world-wide and No. 2 in the 2015 Tholons Top 100 Out-sourcing Destination Sur-vey (NCR in particular). The Tholons Survey iden-tifies the Top 10 emerged, Top 50 emerging and 40 aspiring outsourcing lo-cations around the world through the implementa-tion of primary and sec-ondary research, as well as quantitative and quali-tative analysis.

Its growth has become so tremendous that in 2006, its revenue of US$ 3.4B from Full-Time Em-ployees (FTEs) of about 236,000 has become US$ 18B in revenues from 1,000,000 direct FTEs. This translated to about 5.5% of the Gross Domes-tic Product (GDP) at year-end of 2014.

The industry is opti-mistic that by 2016 it will generate about US$ 25B in revenues from the di-

rect full time employees (FTEs) of about 1.3 mil-lion. The industry impact-ed a global share of 6% in 2006 to about 10.4% in 2012.

Just like any industry, the IT-BPM has its own ecosystem. These factors have contributed to what it is today. There should be synergy in terms of talent, energy, security, domes-tic market, investment and connectivity to make seamless IT-BPM opera-tions.

Where does Davao re-gion, come into play? ICT Davao, Inc. a non-profit or-ganization with 15 mem-ber associations comprising of BPO companies, soft-ware developers, animators, graph-ics designers, Vir-tual Assistants, transcribers, edu-cators, corporate IT practitioners has been in the forefront in mak-ing Davao region an ICT-BPM hub ensuring that this

region, will remain attrac-tive to more locators in coordination, cooperation and support of DOLE, DTI, DOST-ICTO, TESDA, CHED, NEDA and of course the local government of Davao City to name a few.

Davao has been ranked No. 69 in the Tholons Sur-vey, the third city from the eight ranked in the Philip-pines after NCR and Cebu. It has also maintained its position as No. 1 in the Next Wave Cities, a rank-ing done by DOST-ICTO among 42 National ICT Confederation of the Phil-ippines (NICP) members represented by ICT coun-

cils of different cities.Talent

According to an IDI report in 2014 as present-ed by its president, Atty. Samuel Matunog, Davao City has remained an at-tractive location for BPO locators, which have now risen to about 35 centers, those with over 100 seats although there are centers that are still to be account-ed for especially those start-ups and backyard centers. It is estimated in 2013 that this industry is employing about 21,000 FTEs and is roughly gen-erating 4.0 Billion Pesos in annual compensation rev-

enue at a P15,000 monthly salary based on the 2013 report of the Philippine Statistics Authority. By 2016, it is estimated that the workforce will in-crease to 30,000 or about 43%.

In an ADB Working Paper Series No. 366, published on September 2013, Raja Mikael Mitra in his paper Leveraging Service Sector Growth in the Philippines wrote, “The country’s principal strength is its large, ed-ucated workforce with strong English language capabilities and a repu-

The State of the IT-Business Process Management Industry

DAVAO AS ASPIRINGOUTSOURCING DESTINATIONBy BELINDA L. TORRES, MSIS

IT IS almost nine o’clock in the eve-ning Philippine time,

and most new breed of yuppies are mobile to report for work at 9 AM EST. Being part of this industry, one has ad-mired and learned what EST, PST, CST, AST and even IST is, all of them are of different time zones as this is crucial to BPO (business process outsourcing) compa-ny’s operations as well as the employee’s time in and out. The IT-BPM (IT Business Process Management) industry in the Philippines has changed when people work, how they work but has greatly impact-ed the community and the country as a whole in achieving sustainabil-ity and inclusive growth.

FDAVAO, 11

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Main office: SLDC Bldg., Duterte St., Davao City | For Inquiries & Reservations: Tel. No. (082)221-5688;300-7083 • Email ad: [email protected] • Website: www.santosland.net

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IF there is one oft-re-peated question thrown at every

player in the real es-tate business out there, it should be: Why not Davao?

That question is hounding every Tom, Dick and Harry in the property market. It’s even setting off every glib-tongued, stilet-to-clad saleswoman in the brokerage world. It’s that one question too that stares a would-be investor in the eye.

The clock is ticking.

Yes, that’s Davao. It’s a take-it-or-leave it proposition. More like take-it-before-you-re-gret-it. It’s the real deal, hot deal served on the table. You have to think fast or someone beats you to the deal.

And why not? Davao is perhaps the most intriguing question of late when it comes to property investment.

Make no mistake about it. For starters this city is lovely, her residents are friendly, the water is clean and

By NEILWIN JOSEPH L. BRAVOWHY NOT DAVAO?PROPERTY

available property is abundant and diverse. Take your pick. From investing on a condominium, to house and lot, to commercial prop-erty or a piece of land to offset in-flation, generate income, or just to enjoy a new asset.

You’ll find at least the right property for all the right reasons.

Stable supply of electricity, abundant water, high-speed inter-net and favorable land elevation are some factors that prospective buyers consider when purchasing a new property. Check the boxes on those items when you bring your checklist on any Davao City proper-ty offering.

According to the Davao City In-vestment and Promotions Center (DCIPC), Davao City has grown to become the leading metropolitan city of Southern Philippines. Its economic landscape has changed

dramatically over the last 10 years and is projected to have a sus-tained or sharper growth trajec-tory in the nest 3 to 5 years.

That 10-year period was marked with an investment growth that was anchored strongly on a 60% contri-bution from property de-velopment alone.

Given that just about every big name in the business are already in the city—Ayala Land, Robinson’s Land, SM Properties, Filinvest, Crown Asia, Consunji Group, Megaworld, DMCI and Camella--the city gov-ernment has placed property development among the most attractive investments in the city. Not to be outdone, the local players like Alsons, Damosa Land, Kisan Lu

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and lately, Escandor Development Corpora-tion (Esdevco) and FTC Group of Companies, are also joining the mix in this increasingly crowded industry unfazed by the daunting presence of high rollers.

The DCIPC said mall investors have also shown optimism about the strength of the local market by establishing multi-billion peso complexes in the city.

Condominiums, condotels and dormito-ries make up the new wave of construction that’s practically racing towards the city’s skyline sprouting from the central business district to strategic locations around the city. Even the old city streets like C.M. Rec-to (Claveria) and A. Pichon Sr. Street (Ma-gallanes) are enjoying a so-called renais-sance with high-rise projects.

DCIPC credited the emerging market with the strong and steady influx of overseas Fil-ipino workers (OFWs) market and expats affirming the city’s reputation as a “buyer’s market” for its low cost of living, peace and order and laid-back lifestyle.

The growing market and the invasion of real estate companies were a spinoff to the city’s huge housing backlog totaling 42,430 for the low-cost type and a considerable number for middle class and high end, ac-cording to the DCIPC.

In 2014, the Board of Investments (BOI) Mindanao Field Office reported that sev-en real estate projects worth P2.37 billion were put up in Davao City. Steward Home Development Corp. and Kim Guan Realty Development Corp. are newcomers while 8990 Housing Development Corporation has poured in the biggest investment.

Amidst the sustained growth in the con-struction industry particularly in the hous-ing and commercial sector, investors can also look at a window of opportunity in

WHY NOT DAVAO?convention centers, industrial estates, self-contained commu-nities, and retirement parks. The DCIPC has laid down the guidelines for future construc-tion with attention to green ar-

chitecture and engineering, use of environment-friendly build-ing materials, energy-efficient lighting, and air-conditioning. The premium is to heed the de-mands of the times with impe-

tus on climate change.Given all that, we go back to

the question: Why not Davao?That question is more and

more sounding like an imposi-tion to act.

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also re-launching their domestic routes by the end of this month, un-derscoring Davao City’s label as a tourism desti-nation.

The Philippine Air-lines (PAL) will have a daily Cebu-Davao flight

and a thrice a week Zamboanga-Davao flight starting March 29, two of eight domestic routes the country’s flag carrier is launching and making Cebu as the hub.

Two days earlier, Air Asia will also start its

Manila-Davao route with three flights a day.

“These are routes that were there before and were cancelled. Now that they have re-estab-lished these connections it gives consumers, our visitors, better choices,”

Marques said.For this year, the

city’s tourism got a ma-jor boost right away still four months into 2015 with the staging of the Visit Davao Fun Sale (VDFS).

The VDFS is Davao

City’s most awaited tourism campaign this Holy Week and summer covering all sectors of tourism from tours, ac-commodation facilities, dining, shopping and ad-venture.

Why must visitors go

to Davao City?“There are so many

things to offer. The Davao Region has been tagged as from islands to high-lands,” Marques said. “It is the only destination that we can boast of an urban lifestyle.”

tation for being flexible, adaptable to both Asian and Western cultures, pro-ductive, loyal, and dedicat-ed with key strengths in attention to detail and the ability to communicate and work with a positive and enthusiastic attitude and to take initiative. Fil-ipinos speak idiomatic American English better than Indians and many other Asians, and their accents are more neutral. The workforce is famil-iar with multiple cultures (American, Chinese, Japa-nese, Malay, and Spanish) and has a proven ability to respond to changing cus-tomer demands and to de-liver quality at low cost.“

Despite these state-ments and while the available graduates in the southern Mindanao catch-ment area exceeds 54,000 higher education gradu-ates every year, demand

for qualified talent contin-ues to outstrip supply es-timated at 5,000 seats at any given time. In a recent study made by iBPAP, out of the 100 applicants only 7-10 is given job offers and is hired. The local govern-ment on 2014 supported the industry through its bridging program trans-lating to about 350 gradu-ates and employing about seventy percent (70%) of them. TESDA continue to provide scholarships in support to the sector’s employment demands. On the other hand, CHED has included a tract in two programs in particular BSBA and BSIT dedicat-ed for BPO competency requirements. There re-mains a strong demand for talent as BPO loca-tors continue to consider Davao as a potential loca-tion; which, in turn, entic-es more property owners

to invest in BPO spaces.Investment

Huge investments are being poured in the con-struction of BPO spaces, with big locations cur-rently being construct-ed: Matina IT Park, Ma-tina Townsquare and Felcris Centrale just newly opened. These projects under construction are slated to be completed by third quarter of 2016. De-velopers are increasingly positioning themselves on BPO projects.Energy

With new power sources supplying the Davao grid between now and 2016, it appears that adequate and reliable energy supply is assured despite occasional brown-outs being experienced by the region. Security

Security has been a sensitive issue with for-

eign locators as national broadsheet sometimes generalizes events that are detrimental for inves-tors to pursue business in the region because of negative publicity but with media continuously providing positive sup-port and reports making Davao a business and tourist destination, all these impressions are to our advantage. Crime rate is low and presence of the police to safeguard its con-stituents have been a ma-jor factor enabling people to feel safe to walk alone even at night. Evident to this, the Davao City Police Office was awarded three times in a row as the best police office in the coun-try. Davao is the only city with the 911 facilities out-side the USA and Canada.Connectivity

There is so much to be desired in the area of

Internet bandwidth. It remains slow and costly. Serious new players are welcome to penetrate the market to create a level playing field. Globe Tele-com has announced a new submarine cable connect-ing Davao to the US will be completed by the fourth quarter of 2016, linking five areas and territories that include Manado (In-donesia), Davao (Philip-pines), Piti (Guam), Oahu (Hawaii, United States) and Los Angeles (Califor-nia, United States). The SEA-US project will be approximately 15,000 kilometers in length pro-vides route diversity from the North Pacific, avoiding earthquake prone areas in East Asia. The cable sys-tem is expected to provide more efficient connectiv-ity to approximately 1.5 billion people. Still an-other Internet gateway is

planned to link Mindanao to Malaysia and Brunei. All these developments should augur well towards vastly improving the ade-quacy, quality, reliability, and cost-effectiveness, of Internet bandwidth for southern Mindanao, ac-cording to IDI.Domestic market

With the potential of this industry, inclusive growth has been evident, considering the indirect employment it generates. According to the old Asi-aWeek, Davao City is the Most Livable City in the Philippines.

It is eight o’clock in the morning and these yuppies that reported for work at 9 o’clock in the evening Philippine Time, call it a day. Time to go home, rest and sleep. It is 12 pm and it is 12 o’clock Midnight EST. Sweet dreams.

Peace and order... FROM 2

Davao... FROM 4

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Davao as investment [email protected]

By CHENEEN R. CAPON

WHEN Filinvest Land, Inc. (FLI) had its ground-breaking

ceremony for the developer’s second medium rise condo-minium project in Davao City last Friday, it marked another milestone in the company’s real estate business.

Not only that, the latest ground-breaking ceremony also means that another proj-ect will soon rise and eventual-ly end up becoming an added structure to the booming real estate sector of Davao City.

FLI president Lourdes Jo-sephine Gotianun-Yap prom-ised that the 3.4 hectare 8 Spa-tial Davao in Maa, Davao City will not be the last of its kind even as she renewed her com-mitment not only in the city, but also in the region they will continue to make more real es-tate projects.

Yap noted the city’s ac-cessibility, peace and order, growing market and vibrant economy as the reasons why Filinvest has a long-term plan for Davao City.

“We will continue putting up similar project in Davao City to address the growing and diverse

market here,” Yap said during the ground breaking ceremo-ny and blessing of site sales office of 8 Spatial Davao, a joint venture of Filinvest and Villa Abrille family.

The multi-billion real es-tate sector is just among the booming industries of the vi-brant city of Davao, the center of commerce in Davao region and in Mindanao.

The city continues to at-tract local and foreign inves-tors in light manufacturing, tourism and recreational fa-cilities, wholesale and retail, agribusiness, power gener-ation, health and wellness, public-private partnership projects and information communication technology- business process outsourcing (ICT-BPO).

As the Davao City Invest-ment Promotions (DCIPC) puts it: “Investing in Davao City is truly rewarding expe-rience given the mix of incen-tives, as well as the natural and economic advantages of the city.”

“Cited as one of the Top 10 Asia Cities of the Future by

the Financial Times of London magazine and consistently topping the Most Competitive Metro City in the Philippines survey, there is a wealth of rea-sons why you should invest in Davao Now!” DCIPC added.

Among the reasons DCIPC cited that made the city a good area for investment are acces-sibility, Davao City as a busi-ness-friendly city, competitive cost of doing business here, ef-ficiency of public utilities, and good weather.

The city is strategically located in the east Asean (As-sociation of Southeast Asian Nations) and BIMP-EAGA (Brunei, Indonesia, Malay-sia, Philippines- East Asean Growth Area) growth polygon with regular local and inter-national flights and shipping routes connecting the city to the rest of the world.

Another reason is the good governance here. In fact, the city is the first in the coun-try to pass an ordinance on lo-cal investment in-c e n t i v e

code and first to establish a local investment promotion center to the needs of the in-vestors.

“The city government is continually improving the Business Permit and Licensing System in order to be at par with the best business loca-tions in the world,” DCIPC said.

DCIPC chief Ivan C. Cortez said doing business in Davao City is cheaper compared to other major cities.

Not only cheaper cost of business here is experienced by investors here but also the “pool of easily-trainable grad-uates and job-ready or high-ly-skilled English speaking professionals.”

The fiscal and non-fiscal incentives given to local and foreign investors are also among the reasons that made Davao City a suitable area for business.

DCIPC gives tax incen-

tives and tax holiday to new, expanding projects of enter-prises, partnerships, corpo-rations, or cooperatives with a minimum project cost of P3 million upon meeting certain qualifications and documenta-ry requirements.

A longer tax incentives are given to projects located in preferred districts, namely: Calinan, Baguio, Marilog, and Paquibato.

“Investments situated in these areas may be exempted from payment of business tax for five years starting from the date of the first sale activity, and basic real property tax of real properties used in the registered busi-ness, ex-cluding baran-g a y

share for five years,” DCIPC said

Investors have also the chance to enjoy non-fiscal incentives like data-banking services, organize one-stop shops for documentation ser-vices (building and business permits, licenses and incentive availment), facilitation of pro-cessing of local permits and licenses, referral for manpow-er sourcing, referral of ideal locations for certain projects based on the city’s approved zoning ordinance, investment counseling, and business matching.

Indeed, Davao City is not just a place to live with, but a

place to work, play and invest.

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Last year alone, Davao City experienced rotation-al brownouts to up to five hours a day in some areas just to cope with the low supply during summer-time.

With the onset of sum-mer this year, the city again faces the spectre of deal-ing with low power supply that’s plaguing the entire Mindanao, according to Engr. Glenn Jay Reston, sci-ence research specialist II f the Department of Energy (DOE) Mindanao Office.

Reston said almost 60 percent of power gener-ation in Mindanao came from the hydro power plants that depend on the water level of the lakes and rivers.

Now, the Mindanao Grid is operating a very low reserve power because of the maintenance of Unit 1 of STEAG State Power Inc.’s 105 Mega Watts (MW) Coal-fired power plant in Cagayan De Oro City.

Based on the power outlook of National Grid Corporation of the Philip-pines (NGCP), Mindanao Grid has only 58 MW of power reserve as of March 13.

Reston said if the

STEAG Unit 1 will be op-erational on March 16, the power generation might be normal, although it can cope with the demands with no reserve.

The maintenance of STEAG Plants, Reston said, is part of the preparation to prevent the Mindan-ao-wide power outage last year to happen again this year.

Reston, however, said that in the case of Davao City, the effect on the pow-er outage could only be minimal because Davao Light and Power Compa-ny can always get from its embedded supply such as the Bajada Plant which can provide around 40 MW.

Aside from the Bajada Plant, DLPC can also get supply from other private plants such as Hedcor’s Sibulan and Talomo hydro-electric power plants, and Therma Marine Inc.

Reston said the Therma South Inc. (TSI), Coal-fired power plant of Aboitiz Power in boundary of Davao City and Sta. Cruz, Davao Del Sur is also being eyed for operational this summer.

Reston said TSI will supply the grid with 150

Davao’s growth comes with a hefty priceCOPING WITH POWER

By ARMANDO B. FENEQUITO [email protected]

ECONOMIC growth comes with a price. In the case of Davao City, the booming economy also brings with it the prob-

lem on how to match the increasing demand for power with its current supply.

MW which will be enough to supply the other places in Mindanao.

Councilor Louie John Bonguyan, chair of the committee on energy and power, said that as of this time power supply in city is still stable after the 105 MW STEAG 2 resumed its operation last March 2.

Bonguyan said that by this quarter, the operation of TSI will really give a sta-ble power supply not just in the city but also to the whole Mindanao Grid. He added that next year the TSI will also have another

150MW plant to operate. Aside from this, the

coal-fired power plants of San Miguel Consolidated Power Corporation in Mal-ita, Davao del Sur and the Saranggani Energy Cor-poration will also operate next year.

Bonguyan said the op-eration of these power plants could give power stability in Mindanao for the meantime.

“It is for the meantime because we cannot say if there are more power plants will operate it does not mean that the power

supply will be sufficient since Mindanao is continu-ously developing,” he said.

In the last decade, Davao City has seen a lot of new buildings and facilities sprout everywhere with steadily growing invest-ments from different sec-tors such as the business processing and outsourc-ing, manufacturing, real es-tate and retailing.

All that are indications of the growing necessity for power—a reality the city will have to contend with in order to sustain its growth.

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ARTISTS in Davao CityVISUAL artist

groups and individu-als in Davao City are calling on the city government and the private sector to help them showcase their art-works.

“Art is a life and wealth as far as the artist of Davao is concerned,” said Dinky Munda of Tabula Rasa Art Group during the SM Fast Fridays forum at Barrio Fi-esta in SM Lanang Premier last week.

Munda said the chal-lenge for the artists in Davao is to have a place where they can display

their artworks and allow the public to see and expe-rience their products.

He bewailed the lack of support from the City Gov-ernment for the art sector.

The initiative of the SM Lanang Premier manage-ment of allocating them space for the Davao Art Market which started last March 9 was a big help for the artists in the city to showcase their master-pieces, according to Mun-da.

Munda said major cities in the world such as Sin-gapore and Hongkong or even in Manila have their

Art Festival that showcases the work of the artists.

“Davao City, somehow, lacked in arts and cultur-al events and Davao will never be a great city if the culture and arts are disre-garded,” Munda said.

“There is no reason why this Art Market can only be done during Araw ng Davao, Kadayawan. Why can’t we create an event that Art Market is there all the time,” he added.

The lack of venue is a problem facing the Davao Art Market because artists do not have the opportuni-ty to display their works.

“What we need are op-portunities for us to show our works because we have so many artworks but they have not been seen,” Mun-da said.

For his part, Bong Perez said Davao City has many talented visual artists, only that there is no place for them to display their out-put.

Like Munda, Perez wants the city to have its own art center.

“Who are we if we just keep our artworks because we have no place to display them,” he said.

Leaf Artist Mishael

Pueblas said through the Davao Market their works will be noticed and appre-ciated.

Bai Manginsay, also from Tabula Rasa Art Group, said there are peo-ple who practice stereo-types in buying an artwork.

He said these people will only buy the art piece if the artist is from Manila, in the process disregarding the local ones.

“It is really the problem whether we like it or not. That is the situation of the market,” Manginsay said, adding that the problem lies on he lack of presenta-

tion of artworks of the art-ists in the local scene.

He said they are now planning to institutional-ize the Davao Art so that there will be a group that will help promote the arts and culture in Davao City or even in the region.

Manginsay said he will propose this to Depart-ment of Tourism (DOT) 11 director Roberto P. Alabado III and make the art work their agenda for tourism.

The local artists said the city government has to listen to their plight as they are also contributing to the development of Davao.

Davao artists seek helpfrom gov’t, private sectorBy ARMANDO B. FENEQUITO JR.

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