Published on : Thursday, February 13, 2020
The recent coronavirus (COVID-19) has a chance to cause the tourism to lose out as much as P22.7 billion every month and shed 95,000 jobs, the National Economic and Development Authority (Neda) informed the lawmakers in a hearing on Wednesday.
At the time of the joint hearing of the House Committees on Tourism and Economic Affairs, the Neda Undersecretary, Rosemarie G. Edillon stated that the plunge in tourist arrivals because of ban on travel that would result in the loss of 30,000 to 95,000 jobs.
In spite of the issues created by COVID-19, however, Socioeconomic Planning Secretary Ernesto M. Pernia informed the reporters that the economy of the country still has a “fighting chance” to develop by around 6 percent in the first quarter.
“With respect to international estimates, they also forecast that the Philippines, which is not that dependent on tourism and also not that dependent on external trade, will be in some ways insulated,” Edillon said at the House hearing.
“[However], applying the multiplier effect of tourism, we expect that per month, together with domestic airline receipts which will also be affected, we think [the losses are] in the order of P22.7 billion per month,” she added.
Edillon stated that tourism contributes 12.7 percent to total GDP, including allied services.
The Neda mentioned that its estimates takes into account the travel ban inflicted by the Philippines on China to stop the spreading of the deadly virus.
Edillon further added that the estimates include the supposition that 10 percent of tourists from other countries will also not push through with their travel plans to the country.
On February alone, or during the start of the travel ban, Tourism Secretary Bernadette Romulo Puyat explained that foregone revenue from COVID-19 could reach P16.8 billion.
“[In total] we expect foregone revenue of P42.9 billion forgone from February to April [based on] forecast arrivals of 678,102 tourists from China, 22,584 from Hong Kong, and 2,194 Macau, 92,370 from Taiwan during the said three months,” said Romulo Puyat.
She stated that cancellations of flight from China, Hong Kong, Macau and Taiwan because of COVID-19 have reached 465 per week, or an estimated 101,452 seats
Tags: The recent coronavirus