MANILA – The Department of Tourism (DOT) on Tuesday welcomed the approval of the PHP10-billion allocation for the tourism industry under the Bayanihan To Recover As One or the Bayanihan 2 Bill.
In a statement, the DOT said the allotment signifies the recognition of the tourism sector by the Senate and House of Representatives, which "ensures the survival" of tourism micro, small and medium enterprises (MSMEs).
"The Department is optimistic that collectively the industry can weather this challenge, and come out stronger and better. With the government's support through the Bayanihan 2, the DOT shall continue to handhold its stakeholders towards recovery, and carry out the plans and programs under the Tourism Response and Recovery Plan (TRRP) in its full capacity," it said.
The tourism sector is one of the hardest hit by the pandemic, with millions worldwide losing their jobs as the once-bustling tourist sites suffer a heavy blow.
In a recent statement, the Tourism Congress of the Philippines said the travel restrictions imposed due to the pandemic had pushed most of the small-scale tourism businesses "to the brink of bankruptcy".
Based on the latest data from the DOT, tourism receipts from January to July 2020 plummeted 72 percent to PHP81 billion compared to the same period last year.
The government is scrambling to help cushion the impact on the tourism sector. About PHP6 billion was allotted to provide soft loans to tourism MSMEs through the Small Business Guarantee and Finance Corporation of the Department of Trade and Industry, which will be coordinated by the DOT.
The PHP3 billion, on the other hand, will be devoted to assisting displaced and unemployed tourism workers through the Department of Labor and Employment.
The remaining PHP1 billion will be provided for tourism road infrastructure programs of the Department of Public Works and Highways.
According to DOT, a number of small tourism businesses are expected to benefit from the allocation since about 99.9 percent of the 144,640 establishments in accommodation and food service activities are considered MSMEs.
In terms of employment, 95.8 percent of the 921,292 workers in accommodation and food service activities are also MSMEs, it added. (PNA)
