One of the biggest blows that the
novel coronavirus struck on businesses in the country and around the world was
done by virtue of its timing. When the rise in positive cases caused the
beginning of lengthy travel bans and community lockdowns the travel and tourism
industry was savaged earnings-wise. Not only have travel plans been cancelled and
reserved tickets refunded, travel agencies find themselves in dire straits to
pay employees and staff, plus cover operational expenses. Said expenses also
include paying permits and taxes to the government. With the agencies unable to
do business, they are asking for a stay in their governmental obligations.
As CNN Philippines tells it, the country’s travel agencies under the
Philippine Travel Agencies Association (PTAA) is expressing hope that the
national government can offer them relief from their commitments in permits and
taxation while they are kept shut down by necessity during the ongoing COVID-19
pandemic. Ritchie Tuaño, president of the PTAA, comments that they would like
the government to cut them a break from these necessary but financially
expensive obligations, which he points out are being called for by governmental
regulatory boards, even when aware that the businesses are closed and could not
make money during the lockdowns.
This is only one facet of the
problem for the travel agencies. While for the most part they are still not
able to take on clients, these outfits have been allowed to open in areas of
the Philippines under general community quarantine (GCQ) at least, with
skeletal levels of active personnel only. Its purpose is to process refunds
from customers unable to do so before the start of lockdown months ago, as well
as pay their suppliers. That, according to Tuaño, leaves their business barely
solvent when it comes next to settling permits and taxes.
Fortunately a stimulus package is
in the process of being approved by the House of Representatives to help the
travel agency sector and allied businesses. Rep. Joey Salceda, chairman of the
House Ways and Means Committee, notes that there are P58 billion out of a total
P1.3 trillion from the ARISE Philippines stimulus package, that has been
earmarked for the travel and tourism industry. Added to that is the P140
billion that the sector can expect from the Senate’s “Bayanihan 2” bill proposal.
Together, this amount can cover interest-free loans for travel and tourism
businesses, facility enhancement in compliance to health protocols, and product
marketing.
Figures provided by Secretary
Bernadette Romulo-Puyat would have it that the Philippine tourism industry has
no less than 5.4 million workers and employees, most of which cannot work
because the COVID-19 pandemic shuttered their workplaces.
Image from PTAA Website
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