NOW the harsh reality has set in.
While tourism stakeholders celebrate their victory in getting a P10-billion allocation mostly for financial assistance under the recently ratified Bayanihan 2 Bill, the funds will not be enough to help all enterprises affected by Covid-19.
In an interview with the BusinessMirror, Tourism Congress of the Philippines president Jose C. Clemente III admits more challenges lie ahead for the sector. “We also have to manage the expectations of stakeholders because the allocation is just P10 billion. The actual need [of the industry] is P80 billion.”
Trade and Industry Secretary Ramon Lopez on Sunday assured tourism stakeholders of friendly loan terms from additional funds allocated to the Small Business Corp. (SBCorp) under the Bayanihan 2 Bill. SBCorp, which is under the Department of Trade and Industry, has credit facilities micro, small, and medium-scale enterprises. (See, “Trade chief vows concessional loan terms for tourism sector,” in the BusinessMirror, Aug. 23, 2020.)
Prior to the passage of the bill, TCP, along with officials of the Department of Tourism (DOT), had already been meeting with SBCorp executives to find ways to extend loans specific to the tourism industry, said Clemente.
Now that Bayanihan 2 has been passed, “We will have [tourism] sectors represented in the meetings with SBCorp and DOLE (Department of Labor and Employment) so it will transparent,” he stressed. Bayanihan 2 also allocates P3 billion for DOLE’s work-for-pay program specifically targetting displaced tourism workers.
Aside from these, the bill also allocates P1 billion to the Department of Public Works and Highways for tourism road infrastructure projects, and P100 million to finance the training and subsidies for tour guides.
Tapping these funds, according to the bill, doesn’t preclude tourism enterprises from borrowing from other credit facilities provided by the Bayanihan 2.
Earlier, Clemente said only DOT-accredited tourism enterprises will have access to the financial assistance promised under Bayanihan 2 and other economic stimulus packages that may be passed by lawmakers. (See, “Only accredited tourism enterprises can tap recovery aid,” in the BusinessMirror, July 13, 2020.)
As of December 2019, the DOT reported a total of 8,990 accredited enterprises in the country, of which, 7,806 were primary tourism enterprises (PTEs). Of the PTEs, accredited accommodation establishments were 2,764; travel and tour agencies 2,059; tourist transport 698; tourism frontliners (tour guides) 2,242; Meetings, Incentives, Conventions, Exhibitions operators and facilities.
In a news statement, the TCP and over 50 tourism association across the country expressed their gratitude to the Bicameral Conference Committee which reconciled the House and Senate versions of the Bayanihan 2 Bill. Ratified by the House on Monday, the bill will now be sent to President Duterte for his signature.
“[The P10-billion allocation] will be of great assistance to our tourism stakeholders as we do our best to get our industry restarted in the wake of the Covid-19 pandemic. This will help over 4.8 million direct and indirect workers that have been affected by the various stages of community quarantine since last March,” the groups said.
“As many businesses are on the verge of closing, this allocation will allow our stakeholders to continue operations and more importantly, keep their employees who are in dire need of sources of income at this point in time,” they added.
For its part, the DOT also expressed its “its deep gratitude” to both chambers of Congress for approving the allocation of P10 billion for the tourism industry, under the Bayanihan 2. The measure, it said, “ensures the survival” of the tourism industry, of which 144,640 establishments are considered MSMEs.
“We look forward as well to working with the DOLE for the program they will implement for the displaced and unemployed tourism workers,” said the government agency, adding it shall “continue to handhold its stakeholders towards recovery, and carry out the plans and programs under the Tourism Response and Recovery Plan in its full capacity.”
All throughout the pandemic, several Philippine tourism destinations have been getting international awards and recognition by popular travel publications and online sites. In July, for instance, Travel + Leisure hailed Palawan as the Best Island in the World; in June, Conde Nast Traveler cited the Hidden Beach in El Nido, Palawan as among the 30 Best Beaches in the World and earlier Siargao among islands with the “best scenery,” and in May, Forbes dubbed the Philippines a “rising star” in post-pandemic travel.
Image credits: Alexey Kornylyev | Dreamstime.com