Filipino businesses in Dubai feel the pinch of Iran war

DUBAI, United Arab Emirates — Filipinos running businesses here are feeling the pinch of the war on Iran.

At a recent online meeting, the board of the Philippine Business Council - Dubai and the Northern Emirates discussed the challenges facing Filipino entrepreneurs businesses in the region.

“We face these challenging times not as individuals, but as a unified group,” said chair Asiyah Monjardin, who also owns a consultancy group.

Members stepped forward to volunteer their specialized services and expertise to support fellow members during these trying times, the PBC said, adding that Commissioner Vichael Roaring of the Philippine Trade and Investment Center (PTIC), “listened intently to the specific pain points raised by our community, ensuring that the voice of Filipino business owners is heard.”

“We are working with importers and distributors of Philippine products to help them with their logistics and supply issues and ensure the steady supply of our products in the UAE,” said Roaring in a separate interview.

Dr. Mary Jane Alvero-Al Mahdi, also a business owner, challenged the group to shift perspectives, encouraging them to “identify how we can turn these current challenges into unique opportunities for growth and innovation.”

However, the situation doesn’t look promising. 

As virtually no tourists are coming to Dubai, first to feel the effects of the war—the US and Israel's joint strikes on Iran, and Iran's retaliatory strikes—are those in the travel sector.

Malou Prado, owner of MPQ Travel and Tourism, said the tensions cause “flight disruptions, cancellations, reduced tourism demand, financial losses, and operational stress for travel agencies.”

“Ramdam na ramdam namin ang epekto ng tension sa Middle East. Bilang travel business owner, talagang malaking hamon siya dahil sunod-sunod ang rebooking, refund requests, at pagbabago ng travel plans ng mga kliyente. Marami ring natatakot bumiyahe kaya bumababa ang bagong bookings,” Prado told GMA News Online.

(We are really feeling the effects of the tension in the Middle East. As a travel business owner, it’s really a big challenge because there is no end to the rebooking, refund requests and changes to clients' travel plans. Many are also scared to travel so there are fewer new bookings.)

She said they have been “very transparent” to clients. 

“We update them on advisories and options available to them. We also become flexible in bookings like assisting in rebookings or looking for safe, alternative destinations, and we strengthen our customer service so that they feel there are people who supports them in situations like this,” Prado said. 

She said the business has to keep up, especially considering office rents and employees’ salaries.

Canceled 

Ellanie Villena, another travel and tours owner, said they have been “so affected.”

“We have canceled bookings and no flights to offer,” she said.

“Even the events were cancelled, kaya nag-activate ako ng ibang licenses na hindi ko pa masyadong na-maximize [I activated my other licenses that I hadn't maximized before], like my PRO services. So, ngayon nag-o-offer kami ng [now we offer] company formation and anything related to document clearing, like lost passport and other related services,” Villena added.

PRO services refer to paperwork associated with renewing or opening new employment visas while company formation refers to setting up new businesses.

Until further notice

Nathan Villegas, who runs an events company, said that “everything has been put on hold until further notice,” and that big events have been postponed.

“All Filipino producers rescheduled their events. It’s a high risk for all parties,” he said.

Bea Mariz Bagac, manager of a commercial yacht, said all sails were cancelled on February 28—the day US and Israel bombed Iran—and March 1.

“We needed to refund the full amount to the clients,” she said.

The UAE Coast Guard recently gave Bagac the clearance to sail. “But given the situation, nobody wanted to board a yacht,” she said.

Japanese

Beth Climaco-De Guzman runs two Japanese restaurants with her husband and in-laws: one in the residential Al Wasl area, and the other in the touristy marina area. The latter, just recently opened, has “experienced a 15%” in sales and footfall, she said.

“We had to close the restaurant for a full day on March 1, and half a day on March 2. What saved it from having a drastic impact is that our deliveries increased,” she said.

“We were supposed to open just for deliveries but walk-in customers kept coming, so we had to adjust and open our dining also.”

Giebeth Ellaine Laxamana said her real estate business, including her vacation holiday homes and Airbnb units, has “slowed down.”

“There were Airbnb guests that have cancelled; these are mostly guests from overseas,” she said.

All were former overseas Filipino workers (OFWs), who ventured into running their own trade. — BM, GMA Integrated News