BusinessMirror April 19, 2020

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Sunday, April 19, 2020 Vol. 15 No. 192

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‘MORE FUN’ NOW NEEDS MORE WORK CAN THE PHL TOURISM INDUSTRY RECOVER FROM COVID-19?

THE departure area of Ninoy Aquino International Airport’s Terminal 2, now empty except for some airport personnel. NONIE REYES

By Ma. Stella F. Arnaldo | Special to the BusinessMirror

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S many look forward to the lifting of the Luzon-wide enhanced community quarantine (ECQ) by the end of April, as well as the suspension of various lockdowns in several parts of the country implemented to contain the spread of the coronavirus disease (Covid-19), tourism stakeholders are crossing their fingers they will be able to jumpstart their respective businesses and renew relationships with their clients.

Tourism Congress of the Philippines (TCP) President Jose C. Clemente III predicts “virtually no business for the remainder of the year, as projections when the Covid-19 situation will improve still cannot be determined.” A study by the National Economic and Development Authority (Neda) on the impact of Covid-19 on the economy indicated the tourism sector would post a loss in gross value added of between P77.5 billion and P156 billion. This is equivalent to 0.40-0.8 percent of the gross domestic product, and will likely reduce the number of people employed in the sector to 56,600 from 90,400. Much needs to be done to get

back the record-breaking inbound arrivals the Philippines has recorded in the past. Under the National Tourism Development Plan for 20162022, the government had targeted foreign tourist arrivals to reach 9.2 million this year, from 8.26 million in 2019, while inbound tourist receipts were targeted to hit P661 billion this year, from the P482.15 billion earned in 2019.

DOT finalizing recovery program

THE Department of Tourism (DOT) is expected to unveil a recovery plan for the industry soon; much of it will probably depend on the availability of funding for promotions and marketing overseas, as it tries to regain the interest of

key markets. It will take a lot of persuading to get people to travel again, and believe that it’s more fun in the Philippines. It recently turned over some P10 billion to the Department of Finance for use in the government’s fight versus Covid-19, after the Bayanihan Law allowed the realignment of the national budget. (See, “DOT-Tieza to turn over P8 billion to P10 billion in funds for govt’s Covid-19 fight,” in the BusinessMirror, March 31, 2020.)

In a Viber message, DOT Spokesman and Undersecretary for Tourism Development Planning Benito C. Bengzon Jr. told the BusinessMirror, “Two weeks ago the Secretary signed the Department Order directing

the development of a Tourism Response and Recovery Program (TRRP) and the creation of a Program Management Committee. The objective is to craft a set of measures that will aid in the recovery of the tourism industry.” He added, “The TRRP shall be based on the National Disaster Risk Reduction and Management Council Planning Guide. The plan shall consider local and international best practices in tourism response and recovery. Consultations with stakeholders have been and will continue to be conducted as part of the needs assessment. The plan will encompass interventions in infrastructure, social services Continued on A2

China tries to revive economy but consumer engine sputters

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By Joe McDonald | The Associated Press

EIJING—China, where the coronavirus pandemic started in December, is cautiously trying to get back to business, but it’s not easy when many millions of workers are wary of spending much, or even going out. Factories and shops nationwide shut down starting in late January. Millions of families were told to stay home under unprecedented controls that have been copied by the United States, Europe and India. The ruling Communist Party says the outbreak, which killed more than 3,340 people among more than 82,341 confirmed cases as of Thursday, is under control. But the damage to Chinese lives and the economy is lingering. Truck salesman Zhang Hu is living the dilemma holding back

the recovery. The 27-year-old from the central city of Zhengzhou has gone back to work, but with few people looking to buy 20-ton trucks, his income has fallen by half. Like many millions of others, he is pinching pennies. “I put off plans to change cars and spend almost nothing on eating out, or entertainment,” he said. “I have no idea when the situation will turn better.”

Missing demand

FACTORIES reopened in March after President Xi Jinping visited

PESO EXCHANGE RATES n US 50.7130

IN this April 13, 2020, photo, a resident walks through a partially closed retail street with a bronze statue covered with a face mask in Wuhan in central China’s Hubei province. Chinese leaders have reopened factories and shops in an effort to revive the economy, but the consumers whose spending propels most of China’s growth have been slow to return to shopping malls and auto dealerships. AP

Wuhan, the city at the center of the outbreak, in a sign of confidence the virus was under control. But the consumers whose spending propels China’s economic growth are still afraid of losing their jobs, or catching the virus. They are holding on to their money despite official efforts to lure them back to shopping malls and auto showrooms. Data due out Friday is expected to show the economy contracted by up to 9 percent in JanuaryMarch, its worst performance since the late 1970s. That is a blow to automakers and other global companies that hope China, after leading the way into a global shutdown, might power a recovery from the most painful slump since the Great Depression of the 1930s. “What is not fully back, or is completely missing, is the demand,” said Louis Kuijs of Oxford Economics. In Europe, the first tentative steps at winding back economically Continued on A2

n JAPAN 0.4694 n UK 63.3101 n HK 6.5431 n CHINA 7.1608 n SINGAPORE 35.5706 n AUSTRALIA 32.2383 n EU 55.0794 n SAUDI ARABIA 13.4965

Source: BSP (April 17, 2020)


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