RUSSIANS can use other foreign currencies or a China-specific card when paying for their vacation bookings and other purchases in the Philippines.
“We understand that Russian tourists in other countries such as Thailand and Indonesia are experiencing the same predicament [i.e., unable to access funds from their home banks],” Bangko Sentral ng Pilipinas Deputy Gov. Chuchi G. Fonacier told the BusinessMirror in an email.
“Since Visa [Inc.] and Mastercard [Inc.] blocked certain Russian financial institutions from their network, Russian tourists will have to pay in cash or use other credit cards that have not imposed sanctions on Russia,” Fonacier explained. “We also urge Russian tourists to reach out to and inquire with their banks on how to have continued access to financial services.”
A financial expert who requested anonymity said that if the Russian tourists have cash in foreign currencies “they can covert these through money changers.”
Aside from US dollars or euros, the expert suggested “yen or Aussie dollars.”
Visa and Mastercard have no longer been processing transactions of its cards issued in Russia, in keeping with US-led financial sanctions due to Russia’s invasion of Ukraine.
Bankers’ views
PHILIPPINE National Bank President Jose Arnulfo A. Veloso explained if Russian tourists try to withdraw money from their banks through local currencies, “they will be rejected; whether online or ATM transaction.”
“Mastercard and Visa switched off last March 10,” Veloso added. “Thus, whether debit or credit card, Visa and Mastercard, no way it [transaction] will be processed.”
He suggested these tourists secure a “China Union pay card” so they can pay for their purchases here.
Recently, BDO issued an advisory to its merchant partners saying, “Effective March 10, 2022 the International Card Brands have suspended and blocked transactions of Russian member banks. This is in compliance to the US Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctions.”
The bank warned: “Unsettled transactions of card payments from sanctioned Russian member countries will not be settled by the Brands effective March 17, 2022. Please ensure immediate settlement of your transactions before aforementioned date.”
Data provided by the Department of Tourism (DOT) showed from February 10 to March 22, there were 238 Russian tourists who arrived in the country. The bulk, at 178, arrived in the period between March 1 and 22. In 2019, prior to the pandemic, arrivals from Russia grew by 20.5 percent to 36,111.
The government ordered the reopening of the country’s borders to fully-vaccinated leisure travelers from visa-free countries on February 10.
Opportunity market
DOT OIC-Undersecretary for Tourism Regulation Coordination and Resource Generation Christopher V. Morales said, so far, “there are no feedback from our regional offices yet” regarding payment issues involving Russian tourists.
According to Hotel Sales and Marketing Association (HSMA) Chairman Margarita F. Munsayac, their members “have no Russian guests affected with the announcement of banks and credit cards blocking payments for purchases and transactions with Russian banks.”
Ging Salme, manager of Jony’s Beach Resort in Boracay, which had hosted Russian tourists prior to the pandemic, noted that, “Russians usually book their stays with Booking.com and they pay at the hotel using their credit cards.”
“But some bring US dollars and exchange these [for Philippine currency] at the money changer,” Salme said.
She added if the Russian visitors book their hotel stay via Agoda, “[The hotels] are fully paid prior to their arrival.”
Russia is considered an opportunity market by the DOT. It was targeted for special marketing programs as per the agency’s National Tourism Development Plan of 2016-2022. Most Russian tourists in the Philippines are interested in diving, shopping and entertainment, studying English as a second language, honeymoon vacations, beach relaxation and nature and MICE (Meetings, Incentives, Conferences, Exhibitions).