MANILA, Philippines — Tourism Secretary Bernadette Romulo-Puyat said the Department of Tourism (DOT) remains firm on its commitment to allocate funds for the financial assistance of tourism stakeholders under the Bayanihan 2 bill.
“The DOT remains firm in our position to allocate the funds of the Bayanihan to Recover As One Act for the assistance of critically impacted businesses in the tourism industry in the form of working capital loans thru GFIs (government financial institutions) and to establish COVID-19 testing centers in tourist destinations,” Puyat said yesterday.
The DOT earlier submitted a position paper to both houses of Congress, proposing that of the P10-billion allocation, P9.5 billion be used to finance programs of the DOT for critically impacted businesses while P500 million will go to various support programs that would further aid the industry toward the “new normal” amid the COVID-19 pandemic.
“These are part of the programs identified in the Senate version of the bill and we continue to appeal that the funds be dedicated to help our stakeholders who have been among the hardest-hit by the pandemic, incurring huge financial losses since March,” she added.
Last week, the House of Representatives passed the amended version of the Bayanihan 2 bill or House Bill 6953 on its third and final reading. Under the bill, the tourism sector’s P10 billion fund is allocated to finance the programs of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) in assisting the recovery of the tourism industry that shall include the provision of infrastructure.
On Monday, Foreign Affairs Secretary Teodoro Locsin Jr. said in a tweet that the DOT should be getting the said fund.
“Thank you, Berna. Your department should get the billions and not that whatever-it-is that’s claiming it. You alone can be trusted to rebuild what’s been lost. Keep the politicians out, they’re thieves,” Locsin said.
Sought for comment on Locsin’s statement, Puyat said she has already sent a private message to the foreign affairs secretary.
The DOT plans that P9.5 billion would be allocated to finance the programs of the DOT to assist the critically impacted businesses in the tourism industry through low interest loans or issuances of loan guarantees through GFIs with terms of up to five years for maintenance and operating expenses; and, credit facilities through GFIs for upgrading, rehabilitation, or modernization of current establishments or facilities to be compliant with the new health and safety standards.
In addition P500 million will be allocated to establish COVID-19 testing centers in tourist destinations as identified by the DOT, to stimulate tourism and generate employment, in partnership with the LGU and DOH and/or private entities.
“We affirm therefore that at this stage of the crisis where we are now looking at the recovery and resiliency of the industry, our priority based on consultations with the stakeholders are fiscal and monetary measures supporting tourism directly. These will range from economic relief to tourism businesses, rather than an infrastructure component which is not the priority at the moment,” the DOT said in the position paper.
Various tourism associations have also appealed to the bicameral conference committee of the House and Senate to reexamine the allocation for the tourism sector under the House version of Bayanihan 2, emphasizing the key contribution of the sector to the Philippine economy.
The tourism industry accounted for a 12.7 percent share in the country’s gross domestic product (GDP) last year. It also accounted for 13.5 percent of total employment during the period as the sector generated 5.71 million jobs.