A new Philippine law that allows naturalized American citizens of Filipino ancestry to purchase land in their native country is being hailed by many Hawaii residents as a dream come true.
"Most people haven't heard about it yet but those who have are very excited," said Andy Mosquera, legal officer for the Philippine Consulate in Hawaii.
Passage of Act 8179 three weeks ago amends the Foreign Investment Act, which limited Filipino-American property ownership to small condominium units but not the ground the buildings are built on.
Land could only be acquired through inheritance.
"Under the new law, former citizens can now purchase up to 5,000 square meters of urban land or three hectares (two-plus acres) of rural land in the Philippines for business or other purposes," he added.
Depending on the region, prices range from 1,000 to 5,000 pesos per square meter. The currency exchange rate is about 25 pesos to $1.
Hawaii's Filipino population of about 180,000 represents the third largest ethnic group in the state.
"The new law is an incentive for those who want to return to Philippines someday," Mosquera said.
"The timing is good for business opportunities, too."
Lito Alcantra, who heads one of Hawaii's Top Twenty construction businesses as president of Group Builders, sees the investment potential created by the new law.
"U.S. dollars can go a long way there," Alcantra said. "Labor is cheap and the economy is booming. Taiwanese investors are building the world's largest shopping center, and there's a $1.2 billion General Motors plant in the Philippines.
"I dream of going back to live and start a business in the Philippines even though we are doing well here," he added. "Owning land makes it possible."
Roger Tacdol, head of ILWU's Maui Division, plans to take advantage of the new law.
"When President (Fidel) Ramos was here in October, many Filipino Americans asked him about changing the law so they could return home," Tacdol said, "and he told us it would materialize some day.
"This is good news for me," added the 56-year-old Tacdol, who would like to retire in four years and move back to Tarlac Province about 110 miles from Manila. "I've worked for 38 years but my retirement and social security checks may not be enough to live on when I retire.
"But you can live comfortably on that in the Philippines."
Tacdol noted many displaced sugar workers, unable to afford property here, may have enough saved up to buy land in the Philippines.
"There's going to be significant interest from both businesses and individuals," Tacdol said.
Luis Butay of Loulen Sportswear, who splits time between Hawaii and the Philippines, invested in a poultry business last year.
"At $6 a day, labor is cheap in the Philippines," Butay said. "In Hawaii, you might be paying $6 for one hour's work. For every one employee here, you can hire 25 to 30 there."
This year marks the 100th anniversary of the Philippine Revolution; the 90th anniversary of the first Filipino plantation laborers in Hawaii; and the 50th anniversary of Philippine independence.