2 lawmakers oppose DOT proposal for P10-B in loans for tour firms

Lawmakers have opposed the Department of Tourism call for government institutions to provide a P10-billion loan facility to tourism businesses affected by COVID-19 pandemic under proposed Bayanihan 2 bill.

Representatives Ron Salo of Kabayan party-list and Johnny Pimentel of Surigao del Sur instead sought an allocation for tourism infrastructure projects.

The DOT position paper on the Bayanihan 2 bill proposed that government financial institutions grant P9.5 million worth of loans to tourism businesses affected by COVID-19 and P500 million worth of loans to establish COVID-19 testing centers in tourist destinations.

The said position paper was obtained by GMA News Online also on Friday.

“The allocation of the P10 billion fund to TIEZA (Tourism Infrastructure and Enterprise Zone Authority) in Bayanihan 2 will provide employment to thousands of workers in the provinces—a need that the DOT failed to consider in its consultations with its stakeholders,” Salo said in a statement.

TIEZA is an agency under DOT.

“The problem with being so detached from the needs of the ones who were severely affected by pandemic is that you forget that, while you may have suffered great loss in your revenue, others are losing their lives and their livelihood. The 18th Congress cannot afford to let that happen,” Salo said.

Pimentel, for his part, said that DOT’s refusal to fund tourism infrastructure projects was insensitive.

"Karamihan sa mga tourist spots sa probinsya ay kulang sa access road, walang comfort rooms, kulang sa mga facilities. Kung hindi natin popondohan ang mga tourism infrastructure na ito, mapapag-iwanan na tayo ng mga ibang bansa nang tuluyan," Pimentel said.

“It is unfortunate that Tourism Secretary Bernadette Romulo-Puyat herself does not want to prioritize the infrastructure needs of most of the beautiful sites in the far-flung provinces in the country. Parang wala silang malasakit sa mismong mga probinsya kung saan nandun ang mga tourist sites,” he added.

Sought for comment, Puyat did not relent on DOT’s position on where P10 billion government loans should go to tourism business to alleviate the plight of over five million employees of tourism businesses.

“In 2019, tourism contributed 12.7% to the country’s GDP (Gross Domestic Product) and employed more than 5.7 million Filipinos across various enterprises. With the halt in tourism activities this year, tourism enterprises suffered closures, suspension of activities and retrenchment of workers,” Puyat told GMA News Online.

“It is in this context that the DOT affirms its partnership with the Tourism Congress of the Philippines to push for measures that will financially enable our tourism enterprises to restart and recover. The DOT [then] reiterates its position to allocate P10 billion pesos from the Bayanihan 2 funds as a necessary support to tourism businesses that were critically impacted by this pandemic,” Puyat added.

Based on DOT records, the number of international visitors to the Philippines only reached 1.3 million from January to July this year—a 72.8% decrease compared with 4.8 million international arrivals for the same period in 2019. Visitor receipts for the same period amounted to 81.05 billion pesos, a decrease of 71.5 percent vis-à-vis 284.82 billion pesos last year.

Inbound tourism revenue for the Philippines, on the other hand, reached P81.05 billion pesos from January to July this year—a 71.5% decline compared with the same period last year which reached P284.82 billion.

Likewise, DOT’s data estimated that around 4.8 million people employed in tourism-related industries are affected by the enforcement of various levels of community quarantines in the Philippines.

Well-crafted

The DOT, in its position paper submitted to Congress on Bayanihan 2, also assured the public that their proposal is based on consultations with stakeholders.

“While awaiting ratification of House Bill (HB) No. 6953 and Senate Bill (SB) No. 1664, the DOT continuously gathered inputs from tourism stakeholders from the public and private sectors, completing a total of five consultation meetings in June 2020. This enabled the DOT to identify the urgent needs and concerns of the industry and to have a clear direction in terms of resource planning for the Tourism Response and Recovery Plan or the TRRP,” the DOT’s position paper read.

“The immediate needs of our stakeholders were diverse but resounding on financial assistance, such as wage subsidy and working capital loans, and provision of credit facilities for upgrading or rehabilitation in line with health guidelines and the new normal environment,” the DOT added.

The DOT said that a P10 billion loan under Bayanihan 2 will benefit approximately 2,271 establishments from tourism enterprises including accommodation, travel and tour agencies, transport, other primary tourism enterprises and secondary enterprises, as well as 6,125 employees from various tourism enterprises. -NB/MDM, GMA News