AIRLINES, HOTELS CUT RATES TO BOOST DOMESTIC TRAVEL AMID NCOV CRISIS By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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A beach in Boracay beckons in this 2018 file photo. Airlines and hotel industry groups are responding to a call by the Department of Tourism to push domestic tourism in a bid to counter the impact of the novel coronavirus, which has forced massive cancellations of report and hotel bookings as a result of the travel restrictions. BRIX VILLARUEL
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OURISM and travel stakeholders are banding together to cushion the economic impact of the 2019 novel coronavirus (nCoV) by pushing their marketing and sales efforts to domestic travelers. Tourism Congress of the Philippines (TCP) President Jose C. Clemente III told the BusinessM irror, “We’re moving forward with domestic programs. A number of hotels and resorts have
already dropped their room rates; we will come out with the rates by [this] week.” Cebu Pacific Air and AirAsia are also joining the effort, with discounted airfares covering “all [local] destinations,” he noted. CEB already has an ongoing domestic seat sale promo, with fares as low as P99 one way, for the travel period July 1 to December 31, 2020. AirAsia Philippines also has an ongoing promo, with one-way airfare, for instance, as low as P890 from Manila to Iloilo, and P590 from Clark to Iloilo. Travel period is from February 3 to August 31, 2020.
Monday, February 10, 2020 Vol. 15 No. 123
Beyond tourism, virus to cost ₧20B a month T By Cai U. Ordinario
@caiordinario
HE National Economic and Development Authority (Neda) and local economists said the impact of the novel coronavirus (2019nCoV) on the economy could be larger if the effect on industry, agriculture, and consumption spending will be included.
Neda Undersecretary Rosemarie G. Edillon told the BusinessMirror over the weekend that economic losses due to the nCoV were pegged at a minimum of P20.5 billion a month, but this only accounts for tourism and its multiplier effects.
Economists, such as University of Asia and the Pacific School of Economics Dean Cid Terosa, said the virus could shave off 0.3 percentage points from GDP growth, and this would mean 150,000 job s not c re ate d , a nd P 28 0
billion in goods and services not produced. “Food exports will go down, gover n ment col lec t ion s w i l l suffer and consumption spending may weaken. I’d like to stress that the multiplier effects of all
“Food exports will go down, government collections will suffer and consumption spending may weaken.... The multiplier effects of all these on household income and employment are notable, as well.” —Terosa
these on household income and employment are notable, as well,” Terosa said. Such “negative events,” he added, “can temporarily derail government efforts to fast-track poverty reduction and jump-start economic growth this year. The microeconomic effects are as significant as the macroeconomic effects of the global epidemic.” Continued on A2
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@alyasjah
HE Philippine Economic Zone Authority (Peza) is now persuading manufacturing firms in China to move to the country, as the government seeks opportunities from the coronavirus outbreak that is slowing trade and business worldwide. Peza Director General Charito B. Plaza told the BusinessMirror her agency is now in talks with manufacturers in China for their possible relocation to the Philippines. Firms operating in China have taken measures to protect their workers from infection by temporarily shutting down their factories, leading to a disruption in the global supply chain. Plaza admitted the operations of Peza locators are feeling the effects of these closures, as
PHL among most at risk from impact of ’19-nCoV By Bernadette D. Nicolas @BNicolasBM
& Samuel P. Medenilla @sam_medenilla
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HE Philippines is one of the countries most at risk of suffering the economic impacts from the novel coronavirus (2019-nCoV) outbreak and a slowdown in the Chinese economy, according to a study by an independent global think tank. At the same time, less imports coming from Wuhan—the epicenter of the nCoV—may also make a dent on government’s revenue collection, Finance Secretary Carlos G. Dominguez III said. London-based think tank Overseas Development Institute (ODI) developed a vulnerability index to quantify which low- and
PESO exchange rates n
See “Lockdown,” A2
middle-income countries are most vulnerable based on three main impact channels: health and connectivity; economic links with China and global integration; and resilience or the country’s ability to contain the virus and to do something about the potential effects. “Taking these indicators together, we present an overall vulnerability index. Sri Lanka, Philippines and Vietnam, followed by Kazakhstan, Kenya, Cambodia and Nepal, top this index as the most vulnerable countries in economic terms,” ODI said in its paper, titled “Economic Vulnerabilities to Health Pandemics: Which Countries Are Most Vulnerable to the Impact of Coronavirus” by Sherillyn Raga and Dirk Willem te Velde.
See “Impact,” A12
‘Pass bill ensuring food is enough in times of crises’ By Jovee Marie N. dela Cruz
“We are contacting our network of Peza investment promotion partners to help us convince these exiting companies to come to Peza’s economic zones.”—Plaza
their shipments are faced with tougher scrutiny in ports here and abroad. “Our locators are definitely affected with the slow transport of their imports and exports going to China and coming to the Philippines, like their goods have to be quarantined,” Plaza said. “We are expecting companies from China transferring to the Southeast Asian nations, [and] we hope to get a big number of these industries to transfer in the Philippines.”
See “Domestic travel,” A2
P25.00 nationwide | 5 sections 30 pages |
Lockdown seen to spur factory exodus to PHL By Elijah Felice E. Rosales
While the Department of Tourism (DOT) has yet to finalize its domestic tourism target for 2020, Tourism Secretary Bernadette Romulo Puyat believes the actual figure last year already exceeded the 111-million headcount in 2018. The tourism and travel sectors are estimated to lose about P27 billion in two months—February and March—due to the nCoV outbreak, with China clamping down on outbound travels. (See, “’19 nCoV travel ban could spell P27-B loss for tourism sectors,” in the BusinessMirror, February 3, 2020.)
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PAG-IBIG’S EXCELLENT YEAR Secretary Eduardo del Rosario of the Department of Human Settlements and Urban Development, the concurrent chairman of the Pag-IBIG Fund Board of Trustees, delivers the accomplishment report of Pag-IBIG on Friday (February 7). Del Rosario reported new records posted by the Fund in 2019, an “excellent year.” The 14.69 million active PagIBIG members collectively saved P50.38 billion, the highest on record, or a jump of 25 percent over 2018. NONIE REYES
@joveemarie
LAWMAKER is pushing for the passage of a measure creating a commission that would ensure adequate food supply during natural calamities or crises. House Deputy Majority Leader Rep. Camille Villar said the Commission on the Right to Adequate Food is among the main features of her House Bill 5785. The bill is pending before the House Committee on Food and Security. Under the bill, the commission will be the primary policy-making and coordinating body to guarantee the implementation and full exercise of the right to adequate food. It will be directly under the Office of the President. It will enjoy monitoring and oversight functions, apply human-rights principles, conduct objective impact assessment on all government policies, programs and projects prior to adoption and implementation, work in close cooperation with civil-society organizations, and use all available resources of the government and private bodies or organizations. See “Food,” A12
US 50.7800 n japan 0.4617 n UK 65.6687 n HK 6.5401 n CHINA 7.2834 n singapore 36.6510 n australia 34.1749 n EU 55.7615 n SAUDI ARABIA 13.5363
Source: BSP (7 February 2020)