Transforming Cebu Into A Retirement Hub

[Jollygoodfellow]

I agree, Tom, this is horribly Orwellian. It's one thing to open a retirement village for retirees who choose to live out their remaining years outside their country, it is quite another matter when it is the Government that makes that decision for you.

Let's look at the practicalities. Such a village could not be in or close to Metro Cebu due to the shortage of suitable land; it would have to be either well to the north of Liloan, south of Naga or on the west coast. Problem is that your trained staff are likely to live in the Metro area. The place would have to resemble a Gulag, with high fences and armed patrols, not only to keep people out but also to stop residents getting out unsupervised - those with Dementias could well be physically very fit and be apt to wander. Then, as you mention, there are the language and cultural issues and it has to be said that the Japanese may not be universally welcomed, there are Filipinos whose memories are long.

Instead the Philippines should be looking at forming partnerships with foreign medical providers such as BUPA with a view to hosting purpose-built hospitals and contracting with, say, the UK's National Health Service to undertake routine operations - such as hip-replacements and cataract removals - for which there are lengthy waiting lists, of up to a year.

The US Department of Health & Human Services estimates that 70% of American seniors will need assisted living and skilled nursing services during their lifetime. The US Census Bureau estimates that Americans will live an additional 18.7 years after turning 65. Through careful planning you can avoid the Orwellian horror of become 100% dependent on the government. The common mistake by middle class American families is to deplete their assets to qualify for Medicaid. If you no longer have money, it will be the government who will dictate everything.

I don't like the idea of some nameless, faceless bureaucrat telling me what is permitted. That includes how many times a day the caregiver can change my incontinence diapers, if it ever gets to that stage. Catheters are already rationed. For seniors, Medicare coverage is limited to 200 per month. I am sure they had "bean counters" in Washington, DC run computer models to determine the exact number. There are other examples like what constitutes pallative care, but this is a family-friendly forum.

There are problems related to overseas retirement and overseas retirement care. It won't be for everyone, but I don't think language is a major issue. If you look at Mexico, they have over one million American, Canadian and European retirees. It is doubtful if half of the global retirees speak Spanish.

Your original topic is about Japanese and their plans.

[JJReyes]

Your original topic is about Japanese and their plans.

Thanks for the reminder. The Sun Star Cebu article had to do with attracting Japanese retirees. I strayed since my focus is helping American retirees relocate to the Philippines through the development of continuing care retirement communities, assisted living and skilled nursing facilities.

The No. 1 retirement destination in Asia for the Japanese is Malaysia through the "MM2H" (Malaysia My Second Home) visa program.. Thailand offers the "O-A" retirement visa, which is also popular with the Japanese. The Philippines "SRRV" program is not very popular. Japan is a potentially good market, but my preference is to start with retirees who speak English as their native language.

The Philippine government is targeting for one million global retirees by 2030. At an average $25,000 from each retiree, this would result in $25 billion foreign exchange inflow per year and an estimated 6 million jobs based on the multiplier effect. Unrealistic number? As mentioned earlier, Mexico is already host to more than one million retirees from the United States, Canada and Europe. I heard on NHK (Japan Broadcasting Network) that the Japanese also have a retirement village in Sonora, Mexico.

Edited January 8, 2013 by JJR

[JJReyes]

Not so long ago, I had to make arrangements for an elderly aunt, living in England, whose dementia was worsening. Had I done nothing, as soon as her dementia reached the stage where she could no longer make rational decisions, her care would be supervised by a department now called the Public Guardian's Office - formerly known as the Court of Protection. Her assets would be seized, her house sold and she would have been placed in an institution at her own expense and the government would only have paid her care costs when her assets were depleted. Despite the fact that she and I had never been close, I could not allow that to happen and so, whilst she was more or less in full possession of all her faculties, I discussed her future with her. She agreed to execute a Deed of Enduring Power of Attorney, naming me as her attorney, and she agreed to move to Wales so that I could more closely monitor her and make arrangements as necessary. Just one year later her dementia worsened to the point where she had to be moved to a specialist nursing home. As she had qualified for being a Welsh resident by that time, the Welsh Government paid a substantial portion of the costs of her care, so rather than it costing over £4,000 a month, her contribution was about half. Had she gone to a care home closer to where she lived in southern England, we would have paid closer to £6,000 per month (bearing in mind that elderly sufferers of dementias and Alzheimers require constant supervision).

This is fascinating and very informative. We visited Wales about two years ago. During a conversation, it was mentioned that Wales is considered a retirement destination. Hard to believe at the time because it was very cold. Most retirement movement is a warm climate migration. I guess Wales is attractive for the English if the Welsh government offers a generous subsidy.

Unknown to many Americans, there is already something similar to the Public Guardian's Office in the United States. Their mandate is limited to guadianship of elderly retirees who have no relatives to care for them. Similar to the UK,, the first thing is to search for assets to sell. They also takeover all pensions including Social Security benefits. The discretionary fund for the retiree is then limited to $50 a month. One of the abuses in the American system is for families to deplete assets of a person with Alzheimer's and thereafter dump the relative to the care of the state's Medicaid system. This includes hiring a lawyer, typically the package cost is $20,000, to legally transfer assets to the remaining relatives. To qualify for Medicaid, one requirement in Hawaii is assets worth less than $2,000. The value of your home is not included. If you are placed in an institution, the rental income from your home goes to the state. The more common practice is for relatives to squat rent free.

The Republicans in the US Congress are adamant in reforming Social Security, Medicare and Medicaid. It is going to be a very interesting and bloody fight. The first one was the Fiscal Cliff, which included a claim of no new taxes for 98% of Americans. Technically it is not a tax, but every working person's contribution to Social Security and Medicare just increased an average of $1,000 per year.

Edited January 8, 2013 by JJR

[Markham]

Returning to the original topic, it is my opinion that anyone who promotes Cebu as a retirement hub for the Japanese on the basis of its beaches and scuba-diving, doesn't understand the retirement industry in general, the needs of the Japanese in particular and probably has little real knowledge of the island. The Japanese are far more likely to attracted by serene surroundings, well-groomed formal gardens, lakes with willow trees and a golf course on campus.

[JJReyes]

Returning to the original topic, it is my opinion that anyone who promotes Cebu as a retirement hub for the Japanese on the basis of its beaches and scuba-diving, doesn't understand the retirement industry in general, the needs of the Japanese in particular and probably has little real knowledge of the island. The Japanese are far more likely to attracted by serene surroundings, well-groomed formal gardens, lakes with willow trees and a golf course on campus.

My wife, a 4th generation Japanese-American who speaks, reads and writes Nihongo was involved in the original "Silver Columbia Plan" by the Japan Ministry of International Trade & Industry. Our real estate business remains involved through sales and management of Hawaii properties owned by affluent Japanese nationals.

You are correct. The Japanese overseas retirement market is completely different. For example, the Philippine Retirement Authority keeps emphasizing that their SRRV program is a permanent resident visa. You can remain in the Philippines forever. Malaysia offers the "MM2H" (Malaysia My Second Home) visa, which is an inexpensive, 10 years visa that you can renew. Malaysia is the No. 1 retirement desitnation for the Japanese. Why? The Japanese are very nationalistic and in the abstract, they want to die and be buried in Japan. Permanent overseas relocation is considered abandoning your homeland.

We do the same in Hawaii. It is marketed as a place for the elderly to spend their winters when it is cold in Japan (90 days visa waiver) and summers to enjoy with their grandchildren (90 days visa waiver).

The results are thousands of homes and condominiums in Hawaii are owned by the Japanese. Those would want to remain 365 days can get EB-5 visas in exchange for $1 million in investments. Our business group keeps pushing for the Philippine government to offer a 90 days visa waiver. The Department of Tourism keeps saying, "Yes." but so far no action.

[Markham]

Our business group keeps pushing for the Philippine government to offer a 90 days visa waiver. The Department of Tourism keeps saying, "Yes." but so far no action.

I honestly believe that hell will suffer a severe drop in temperature before that happens! Visa Extension fees represent an important and continuing revenue stream for the government and to offer a waiver period of 90 days would result in a loss of about P7,500 per visitor - that includes the lost revenue on ACR cards. As BI's revenue targets are increased annually, unless visitor numbers rise commensurately I predict extension fees will rise and there will come a point where "resident tourists" reconsider their options.

[i am bob]

to offer a waiver period of 90 days would result in a loss of about P7,500 per visitor

I can't verify this as truth but I have read that a "tax" for those arriving on International flights is being considered as a way to offset this loss.

[Markham]

to offer a waiver period of 90 days would result in a loss of about P7,500 per visitor

I can't verify this as truth but I have read that a "tax" for those arriving on International flights is being considered as a way to offset this loss.

Oh dear. That would be a great example of joined-up thinking - NOT! Well if the government levies yet another tax on the airlines, you can virtually kiss goodbye to foreign carriers serving this country. It is because of taxes on foreign-flagged airlines that caused Lufthansa, British Airways and most recently KLM to stop their services - okay, KLM still flies here but indirectly. Since Philippine carriers are banned from European airspace and, in PAL's case, prevented from opening new routes to and from North America and Australia, just how will the tourists get here?

[i am bob]

As the ban is about to be lifted soon for select Philippine carriers who are using overseas leased aircraft with overseas maintenance, I guess they figure it shouldn't be too hard. The Aviation Maintenance Codes for the Philippines are being studied and redrafted as well which is going to bring it all in line with the rest of the world anyway so it should be a moot point soon.

[JJReyes]

I can't verify this as truth but I have read that a "tax" for those arriving on International flights is being considered as a way to offset this loss.

There is an ad hoc, inter-agency government committee studying the visa waiver program. The difficulty with these committees is every member receives a per diem. The per diem is given whether it's you or your secretary who shows up for the meeting. (The chair has to excuse your absence, as in "I have another meeting.") There is no incentive to hurry up and submit a recommendation.

Last I heard is the Bureau of Immigration wants to offset loss of income from the visa extension program. One proposal is a "free" 30 days visa waiver. If you are 55 years and older, you can request for a 90 days or 180 days visa waiver. This would require the payment of a fee (tax) upon entry.

Edited January 10, 2013 by JJR