Large tourism enterprises in distress but left out of a government-led assistance program to aid companies negatively impacted by the pandemic may tap the Land Bank of the Philippines for financial help.
Secretary Bernadette Romulo-Puyat of the Department of Tourism (DOT) told the Manila Overseas Press Club-GMA 7 forum on Friday the state bank has a lending program called Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19 (I-RESCUE) which was made in support of Republic Act 11469 or the Bayanihan to Heal as One Act.
The DOT originally asked from Congress P35 billion for the tourism industry but was given P6 billion under SB Cares program for micro, small and medium enterprises (MSMEs) leaving out large companies.
“(I-RESCUE) aims to provide additional funds and loan restructuring under more flexible terms. Land Bank recently expanded the program to allow more borrowers impacted by the pandemic (get) credit and loan restructuring assistance. The I-RESCUE lending program now enables large businesses to borrow up to 85 percent of their permanent or emergency working capital requirements. Their terms are 5 percent per annum for three years subject to repricing thereafter, payable up to 10 years and a maximum of four years grace period on the principal repayments,” Puyat said.
Puyat said for tourism workers, the DOT and the Department of Labor and Employment are processing the applications for the P3.1-billon financial assistance program Of that, P3.1 billion are for tourism workers and P100 million for tour guides.
“The fund has been used up and it is not enough,” she said.
Puyat said as of May, 26 2021, a total of 570,919, tourism workers have been approved, with total cash assistance amounting P2.8 billion. The payment for the 367 328 workers, amounting to P1.8 billion were already remitted and released to the various payment centers,
Puyat said a total of 203,234, approved applicants with an equivalent cash assistance amounting to P1.16 are pending for disbursement.
In the same forum, Puyat said it might take a while for demand for international travel to return to its pre-pandemic level but she expressed optimism the industry will get back on its feet in due time.
Puyat said the DOT is following the path it mapped out last year of focusing on domestic tourism, maintaining market presence and COVID-proofing the industry as it safety reopens a growing number of destinations and exploring new market opportunities driven by changes in travelers’ preferences,
For one, the DOT said it is developing the so-called community- based tourism products that will assure sustainable development.
The agency identified 57 intra-and inter regional tourism circuits that are now in the process of validation.
She said the tourism industry will enter the transition phase to the post COVID-19 period.
“But in this period of in-between the challenges of the past year remain. We will continue to hold an optimistic outlook as we believe that the gradual vaccine rollout is expected to restore consumer confidence, contribute to easing travel restrictions, and slowly normalize local travel,” she added.
For example, the Inter-agency Task Force on the Management of Emerging Infectious Diseases has recently allowed inter regional travel outside NCR plus.
“ Let me reassure you that we have reason to remain optimistic,” she said.
As many countries like the Philippines are slowly starting to recognize the major role of domestic tourism, “we remain confident about the prospects oftourism, even with the challenges posed by the pandemic,” Puyat said.
The DOT had called for the establishment the so-called green lane as well as a reduction in the number of quarantine days of fully-vaccinated individuals.
“The issue now with the IATF is number one, how to authenticate the vaccination card is real or not, that is not only a concern for incoming (tourists) but also in going around the country. Right now for those vaccinated, you are only given a slip of paper. What is being discussed is what we call a crypto code to really know if the person is fully vaccinated or not,” she added.
The Philippines hopes to follow the Phuket model which is poised to remove quarantine by July, but with a condition that 70 percent of those in Phuket will be fully vaccinated.
Puyat said the DOT has asked National Task Force chair Carlito Secretary Galvez to start this in Boracay with about 40,000 tourism stakeholders or in Bohol which has about 70,000 so these destinations can accept fully vaccinated tourists.
